1 Hybrid and Public Cloud InfrastructurePlay briefing deck

2 IT trends $1.9T $77B $1.6T ~50% Cloud Things + devices ApplicationsData Infrastructure $1.9T Gartner estimates the total economic value-add from the Internet of Things across industries will reach US$1.9 trillion worldwide in 20201 $77B By 2017, mobile apps will be downloaded more than 268 billion times, generating revenue of more than US$77 billion2 $1.6T Dividend available to businesses that put new data types and analytics in the hands of more employees over the next four years3 ~50% Agility accounts for 50 percent of the reasons for going to the cloud, versus 14 percent for cost savings4 Key goal of the slide: Get the audience to pause for a moment, engage, and agree on the big trends happening in the business world. Key talking points: People, devices and things, apps, data, and all of the infrastructure needed to drive this new mobile-first, cloud-first world is changing how technology provides value to the business. Talk track: Just a few years ago, could you have imagined that there would be 5.2 billion mobile users? Kleiner Perkins’ recent Internet Trends report says that 30 percent of the 5.2 billion mobile users are on smartphones and that number will continue to dramatically grow. When you add “things” to all of those devices then numbers explode. Morgan Stanley estimates the number of connected things could be as high as 75 billion today. IDC estimates that number will grow to 212 billion by the end of 2020. All of those devices are running…applications. Apps are king, with App marketplaces delivering over one million apps today, and growing. Think about how many business applications you use everyday—and the mix of both SaaS, mobile, and on-premises apps. We’re all familiar with the rise of SaaS with the likes of Salesforce, Concur, Workday; Gartner says that 41 percent of CRM systems are now SaaS based. Data, as we all well know, continues its exponential growth, thanks to all of those devices and apps, and more and more people using all of those “instrumented” things. IDC forecasts that the “data universe” will be 40 zeta bytes by 2020—90 percent of that giant number will be unstructured data… The IT infrastructure necessary to run all of this is massive. Take Microsoft as an example: we have over 1,000,000 servers running in our datacenters worldwide. All of this—data, things, apps, infra—all need cloud. Without cloud, none of what we’ve talked, today could have happened. All of this is dramatically affecting customer expectations. Customers demand connected engagement across channels including, and most importantly, digital. The competitive landscape has changed: the new competitive mix combines the familiar names with a new breed of technology-powered disruptors. The new generation of competitors can spin a whole business up in weeks using cloud infrastructure and readily-available business and technology resources. All of this is creating a sense of urgency for all of us to think about technology strategy to stay relevant. This means that most business leaders woke up this morning running technology companies (whether they wanted to or not). Sources: 1 – Gartner “Forecast: The Internet of Things, Worldwide, 2013,” (G ), Peter Middleton, Peter Kjeldsen, and Jim Tully, November 18, 2013 2 - Gartner Report, “Predicts 2014: Apps, Personal Cloud and Data Analytics Will Drive New Consumer Interactions” Stephanie Baghdassarian, Brian Blau, Jessica Ekholm. Sandy Shen, November 22, 2013. 3 - IDC “Capturing the $1.6 Trillion Data Dividend,” Dan Vesset, Henry D. Morris, John F. Gantz, May 2014 4 – Gartner “Hype cycle for cloud computing, 2014”, David Mitchell Smith, July 24, 2014 Cloud Gartner “Forecast: The Internet of Things, Worldwide, 2013,” (G ), Peter Middleton, Peter Kjeldsen, and Jim Tully, November 18, 2013 Gartner Report, “Predicts 2014: Apps, Personal Cloud and Data Analytics Will Drive New Consumer Interactions” Stephanie Baghdassarian, Brian Blau, Jessica Ekholm. Sandy Shen, November 22, 2013. IDC “Capturing the $1.6 Trillion Data Dividend,” Dan Vesset, Henry D. Morris, John F. Gantz, May 2014 Gartner “Hype cycle for cloud computing, 2014”, David Mitchell Smith, July 24, 2014

3 Customer infrastructure requirements are rapidly evolving…IT environments are going hybridMultiple challenges Infrastructure requirements Hybrid cloud Server sprawl and utilization Rapid storage growth Complexity of hybrid environments Shrinking or flat IT budget Security and reliability Deliver business value: help businesses innovate & transform Speed and agility: introduce new products and services faster Manage hybrid environments: multiple platforms and tools across on-premises and cloud Lower TCO: deliver higher value at lower total cost of ownership Security: secure and interoperable solutions More than 65% of enterprise IT organizations will commit to hybrid cloud technologies before , vastly driving the rate and pace of change in IT organizations. —Cloud predictions IDC, Dec 2014

4 Microsoft in hybrid cloudMicrosoft is the only leader in all four magic quadrants. X86 Server virtualization (1) Public Cloud Storage Services (2) Cloud Infrastructure as a service (3) Enterprise App Platform as a Service (4) Leadership position Take advantage of elasticity and flexibility of the cloud while leveraging existing datacenter solutions. Enabler of public cloud Comprehensive and consistent Public cloud Azure In the datacenter Azure Stack In house private cloud Windows Server 2016 [1] Gartner “x86 Server Virtualization Infrastructure,” by Thomas J. Bittman, Philip Dawson, July ; [2] Gartner “Public Cloud Storage Services,” by Gene Ruth, Arun Chandrasekaran, July 9, 2014; [3] Gartner “Magic Quadrant for Cloud Infrastructure as a Service,” by Lydia Leong, Douglas Toombs, Bob Gill, Gregor Petri, Tiny Haynes, May 28, 2014; [4] Gartner “Enterprise Application Platform as a Service,” by Yefim V. Natis, Massimo Pezzini, Mark Driver, David Mitchell Smith, Kimihiko Iijima, Ross Altman, Jan, Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. Get speed and agility through Microsoft Hybrid Cloud solutions

5 Microsoft key differentiatorsHyper-scale Enterprise- grade Hybrid Hyper-scale – global scale cloud platform with more regions than AWS and Google combined Enterprise grade – experience of running large scale Enterprise applications in the cloud Best in class hybrid solutions – flexible and consistent experience across customer’s own datacenter, service provider, and Microsoft Azure

6 Rethinking the datacenter12/1/ :27 PM Traditional datacenter Tight coupling between infrastructure and apps Expensive, vertically integrated hardware Siloed infrastructure, operations, and development teams Highly customized processes and configurations Microsoft Azure datacenter Loosely coupled apps and micro-services Industry-standard hardware Service-focused DevOps Standardized processes and configurations Slide objectives Establish that traditional approaches to operating datacenters are insufficient to help enable the app-fueled innovation that was discussed earlier Compare and contrast traditional vs. modern approaches Key talking points Highlight the following points to emphasize the differences between traditional and modern approaches: Apps in traditional datacenters are typically “hard coded” with the infrastructure, making things rigid. What’s really needed is the ability to decouple apps from the infrastructure so IT has the freedom to decide where they should run without sweating about where the infrastructure resides. App owners benefit from this freedom too, as they can focus on specifying app requirements without having to get into infrastructure details. Customers pay hardware vendors a lot of $$ today for what’s essentially monolithic, proprietary infrastructure that needs a lot of feeding. In particular, hardware configuration tends to be unnecessarily complicated since IT admins need to perform such tasks one-device at a time. In contrast, the infrastructure in a modernized datacenter is based on industry-standard low cost designs and they looks fairly homogeneous. Management and configuration is done centrally in software thereby simplifying things drastically. Infrastructure teams in traditional datacenters tend to be siloed – e.g. we regularly see “fiefdoms” of storage, networking, and server virtualization teams each with their own operational models, which may or may not align with all-up objectives of the business. In contrast, a modernized approach would focus on “services” and not “servers”, thereby streamlining roles and responsibilities to make them much more innovation-friendly. Building on the above, traditional datacenter approaches tend to have unique custom-built processes and tools that have been built over the years – customers tend to maintain them at a high cost, mostly because they fear that things might “break” if they modify anything. In contrast, a modern approach attempts to standardize processes and infrastructure configurations resulting in much more predictable and efficient operations. © 2013 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

7 Cloud-inspired infrastructurePower of Azure with the control of the datacenter 12/1/ :27 PM App innovation Hybrid Hyper-scale Enterprise-grade Cloud-inspired infrastructure Powered by Windows Server, Hyper-V, System Center, and Azure Portal IaaS | PaaS services Windows Server Linux Cloud infrastructure Portal IaaS | PaaS services Windows Server Linux Microsoft Azure Stack Datacenter Microsoft Azure © 2013 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

8 Hybrid and public cloud infrastructure solutionsRun mission critical SAP workloads. Move Red Hat applications to Azure; run Java and HPC applications. Best in class performance for Microsoft applications like SharePoint and SQL. Run LOB apps in Azure Deploy Azure Stack that enables self-service IAAS and PAAS, unified app development, and one Azure ecosystem. Position Sovereign cloud that provides geo-coverage, data residency choice, and increased performance. Consistent hybrid cloud solution Industry standard compute, advanced networking, storage, and security solutions. Modern development environment with support for containers. Management anywhere including provisioning, monitoring, automation, self-service, and data protection. Software-defined datacenter Industry leading storage options with StorSimple, Azure storage, Azure premium storage. ExpressRoute creates more reliability, faster speed, lower latency. Backup and disaster recovery using OMS. Data protection and availability

9 1. Pitching the solutions - LOB Apps in Azurehpc Run your mission critical SAP workloads on Azure. Support for dev/test and production scenarios, including NetWeaver and HANA. Add the power and scale of Azure to Red Hat applications. Get fast and easy provisioning, move Red Hat subscriptions to Azure, and get enterprise class support. Azure supports Java applications. There are Windows Azure packaged SDK tools for Java including emulators, plugins, and client libraries to drive smooth development efforts. Azure enables you to easily cloud-enable and deliver High Performance Computing (HPC) applications by helping you provision the VMs, schedule jobs, and handle failure. Get faster provisioning on SharePoint dev/test (20x to 30x* faster provisioning) and TCO savings (30%*). Deploy development, backup recovery, and business continuity on SQL Server. * example from Telenor, a large accounting firm

10 2. Pitching the solutions – Consistent Hybrid Cloud Platform1. Azure Stack 2. Sovereign Cloud Self-service IAAS Deploy virtual machines, virtual network, storage, and Docker based containers. Self-service PAAS Develop powerful apps through App service and App fabric. Unified app development Write once and deploy to Azure or Azure stack. Same deployment experience with PowerShell, Azure portal, or Visual Studio. One Azure ecosystem Leverage Azure resource manager templates, WS and Linux VM images, third-party services, and extensions. Coverage 8 total regions, 4 operational and 4 announced Choice Data residency and compliance certifications like DISA Performance Increased performance through local datacenters

11 3. Pitching the solutions – Software Defined Datacenter2. Modern development platform Compute Industry standard servers that get frictionless cloud cadence infra upgrades, benchmark setting scale, performance and availability, best in class support for Linux. Networking Physical network with cloud Scale fundamentals, SDN infrastructure, network function virtualization, load balancer, connect to Azure through Express Route, and multi tenant gateway. Storage Industry standard disks with storage spaces direct for hyper- converged storage, storage health service with a single monitoring point, increased flexibility with maximum bandwidth using storage QoS. Security TPI enabled hardware that creates shielded VMs, just enough & just in time administration for separation of roles on all systems. Protect virtual machines from compromised host; control & monitor admin privileges; detect and respond to breaches faster. Windows Server containers Build, run, manage, defined resources and network options. Hyper-V containers Consistency, compatibility, strong isolation, highly trusted, optimized.

12 3. Pitching the solutions – Software Defined Datacenter (cont.)3. Management anywhere Device management Win 10 deployment, Mobile device management enrollment with Azure AD Provisioning Support for WS 2016 Hyper-V features, rolling cluster upgrades, shielded VM provisioning, support for VMware V-Center 5.5 Monitoring Nano server, Windows Storage, Performance improvements, enhanced data visualization Automation Migration to cloud, SCO integration pack Self-service Improved usability and performance, HTML 5 self-service portal, new Exchange connector Data protection Azure Express Route support, shielded VM, Storage spaces direct OMS Real time performance visibility, dynamic application dependency mapping, faster fault analysis SC & OMS Visibility, control, protection, security OMS = Operations Management Suite SC = System Center

13 4. Pitching the solutions – Data Protection and AvailabilityHybrid cloud storage with StorSimple Connects Windows, Linux and VMware Servers to Azure storage in minutes – no app modification required. Get enterprise storage performance with local storage capacity scaling and location independent disaster recovery. Azure Storage Protect vital data with automated backup to Azure storage; ensure business continuity with automatic recovery of critical applications, use consistent tools for backup and recovery to local disk or Azure storage; ensure application consistent backups so that data is not corrupted. Azure premium storage SSD based storage solution, runs high performance enterprise grade applications, premium storage works with G Series and D Series VMs; industry leading performance 64TB capacity; 2000MB per second, 80,000 IOPS per VM. Express Route Create private connections between Azure datacenters and infrastructure on your premises or in a co-location environment. Get more reliability, faster speeds, lower latencies, and higher security than typical internet connections. Managed cloud file share Manage your file server and share, migrate file share based applications to the cloud with no code change, mount the file share from on-premises or cloud, leverage highly available, geo replication across regions, built on industry standard SMB 3.0.

14 4. Pitching the solutions – Data Protection and Availability(cont.) 2. Availability OMS (backup and DR) Single provider with heterogeneous support for Hyper-V, VMware, Linux, and physical servers; achieve a hybrid strategy by replicating on-premises workloads to Azure; unlock Azure’s availability services to provide a direct path to the cloud, unlocking the innovation it delivers. Azure site recovery Replicate to Azure rather than a secondary datacenter, zero impact disaster recovery drills, improve RTO (Recovery Time objective) and RPO (Recovery Point Objective) for planned and unplanned downtime, minimize app errors and data loss with application consistent data points. Azure backup Eliminate tape to save cost and recovery times, protect Azure IAAS virtual machines, lower management cost of backing up branch/remote offices, protect enterprise workloads including SharePoint, Exchange, SQL, Hyper-V.

15 © 2016 Microsoft Corporation. All rights reserved© 2016 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

16 Appendix

17 Leadership in Hybrid Cloud Gartner magic quadrants12/1/ :27 PM Leadership in Hybrid Cloud Gartner magic quadrants x86 Server Virtualization1 Public Cloud Storage Services2 Microsoft only leader in all four magic quadrants Cloud Infrastructure as a Service3 Why Microsoft? Enterprise Application Platform as a Service4 [1] Gartner “x86 Server Virtualization Infrastructure,” by Thomas J. Bittman, Philip Dawson, July ; [2] Gartner “Public Cloud Storage Services,” by Gene Ruth, Arun Chandrasekaran, July 9, 2014; [3] Gartner “Magic Quadrant for Cloud Infrastructure as a Service,” by Lydia Leong, Douglas Toombs, Bob Gill, Gregor Petri, Tiny Haynes, May 28, 2014; [4] Gartner “Enterprise Application Platform as a Service,” by Yefim V. Natis, Massimo Pezzini, Mark Driver, David Mitchell Smith, Kimihiko Iijima, Ross Altman, Jan, Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. Microsoft Confidential © 2013 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

18 Hybrid Cloud is an enabler for AzureTake advantage of the elasticity and flexibility of the cloud while leveraging existing datacenter solutions. Run workloads in your datacenter, in your service provider’s datacenter, or on Microsoft Azure with a complete view of the infrastructure. Build hybrid applications that can leverage both on- premises and cloud resources. Take advantage of storage, backup, and recovery options with increased efficiency and reduced cost.

19 Comprehensive and consistentCustomer Service provider Microsoft Consistent platform Flexible development Unified management Common identity Integrated virtualization Complete data platform

20 19 Hyper-scale Hyper-scale footprint Azure regions available todayMore than AWS and Google Cloud combined Azure regions

21 Convergence Europe 2014 General Session12/1/ :27 PM >30Trillion Storage objects in Azure 1,200,000 SQL databases in Azure $45Billion Partner services revenue attached to a Microsoft Cloud and Enterprise project in FY15 >90,000 New Azure customer subscriptions/month 350Million Azure Active Directory users >18Billion Azure Active Directory authentications/week >2Million Developers registered with Visual Studio Online Enterprise grade © 2014 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

22 Hybrid capabilities at every layer12/1/2017 On-premises Business continuity Azure Backup Azure Site Recovery Azure Active Directory Azure IaaS Azure Storage StorSimple Express Route Cloud Service provider Microsoft Azure Hybrid identity Compute Where can hybrid make a difference for your business? What I want to emphasize is that when you think about a hybrid strategy, it isn’t just about computing capacity. We’ve thought about every layer of the stack from a hybrid perspective, and we’ve developed solutions that take advantage of the unique value proposition of the cloud. Maybe the best example of how cloud is changing the game for IT is business continuity. This is an area where you actively need resources outside your own datacenter, and you need a lot of flexibility to ensure that you can keep the business up and running in the face of major disasters. We offer multiple options in this area, including Azure Backup. We hear from many customers that the cost of backup is too high, Azure helps customers protect against data loss and corruption with highly durable and scalable backup, including multiple copies of your data and financially backed SLAs. For a more holistic approach to disaster recovery, you can explore Azure Site Recovery. Azure Site Recovery lets you replicate to a secondary site or to Azure and orchestrate recovery in the event of a site outage. Hybrid identity is the key to making sure users can get access to the resources they need across clouds. To get started, we need to know who that user is. The backbone to this identity is based on Active Directory, which is an industry standard for the vast majority of enterprise customers (93% of the largest enterprises use AD). In the cloud, that same identity backbone is created using Azure Active Directory –. And with Azure Active Directory premium, users can even use that same single sign on for 3rd party SaaS applications. Compute: Earlier in the discussion we talked about the Azure global datacenters. We now have 17 regions, twice what AWS offers and more than five times what Google provides. That means it gets easier all the time to take advantage of Azure capacity to extend the global reach of your infrastructure. With Azure Infrastructure as a Service, you can make applications available to users across the world. And you can easily access additional capacity for spikes in usage, paying only for what you use. Hybrid Cloud Storage: Azure Storage offers a consistent experience for many types of data, big or small, with flexibility for on-premises, hybrid, and cloud scenarios. Customers enjoy more choices for efficient and cost-effective storage without making tradeoffs. In fact, customers with strict data policies can get the best of both worlds with StorSimple by keeping sensitive, policy-constrained data on-premises while extending other types of data to the cloud for added innovation, scale, TCO, and agility. Finally, Hybrid Networking is the piece that brings it all together. Many customers have talked to us about their security concerns when connecting between clouds. We now offer Express Route, a direct connection between your datacenter and Microsoft Azure that does not go through the public internet. So as you think about hybrid, make sure you’re looking at the problem from every angle. There isn’t a one-size-fits-all solution. Most on-premises vendors recognize that the cloud is part of their customer’s future, but don’t have an actionable strategy to get there. Cloud providers don’t understand your business and make it hard to extend your business to the cloud. Because of our unique innovation and investment strategy, only Microsoft gives organizations the flexibility of having both solutions. Hybrid cloud storage Hybrid networking © 2014 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

23 Enterprises are betting on our hybrid cloud solutions12/1/2017 Improve business agility and service predictability “Hybrid cloud computing really does give us the ability to tailor our infrastructure so that we can provide more services, more quickly, at less cost.” Lee Bingham Head of IT, Paul Smith Increase agility while reducing costs “With our Microsoft private cloud, we have an IT infrastructure that will let us provision servers on demand—in 15 minutes rather than in three to four weeks. That gives huge agility to the business.” Andy Cooper Senior Vice President, Global Platform Services, Equifax Faster delivery and reduced storage costs “By using hybrid cloud resources from Microsoft, we can offer even more consistent capabilities and services to our customers without adding storage capacity to our data centers worldwide.” Bardo Werum Senior Vice President of Infrastructure, Lufthansa Systems Simplify disaster recovery “All I need is an internet connection to sign in to Microsoft Azure and initiate the recovery process immediately—that’s the beauty of Microsoft-based hybrid cloud computing.” Mark Green Windows Support Analyst, Aston Martin © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.