OSS: Java, Open Source Data Infra Technical data deck

Azure infrastructure (IaaS) opportunity    2015 Growth (%)  2016 Cloud application services (SaaS) 31.4 15.5 37.7 20.3 Cloud application infrastructure services (PaaS) 3.8 16.1 4.6 21.1 Cloud system infrastructure services (IaaS) 16.2 31.9 22.4 38.4 Cloud management and security services 5 20.7 6.2 24.7 IaaS market is growing (and a dominant cloud platform model) Morgan Stanley’s 2016 CIO Survey ~70% of Azure consumption is IaaS today We are poised to be THE leader, not just A leader

3-step recipe to drive higher consumption For Cloud infrastructure sellers only Entry-level IaaS workloads Deeper IaaS workloads Make IaaS stickier with PaaS 1 3 2 Drive MAL penetration Increase consumption

High Performance Computing Focus on solutions, not services Solutions in the infrastructure space, >50% of Azure workloads Backup, DR & Archiving Development & Test Line of Business Apps High Performance Computing Big Data & Analytics Internet of Things SaaS App Digital Media Web & Mobile Apps

Starting the conversation 9/12/2018 8:21 PM 50% App Operations 25% Existing Custom Apps 10% New Business Apps 15% Packaged Apps Non-Production Production 1. Application Operations This is the majority of your customers application infrastructure – 50-70% It’s used 5-10% of the time (low utilization) Projects here are low risk and can have a large ROI 2. Apps your customers have purchased What can your customer stop running on-premises? Use the SaaS model or move to Azure IaaS Microsoft (O365/Exchange/SharePoint, CRM, Visual Studio Online, etc.) 3. Apps your customers would like to build Use the Azure PaaS building blocks More productive, less infrastructure work 4. Existing custom build production apps Leave 80% of existing custom apps alone Move small and high burst workloads © 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.

Entry-level IaaS workloads Deeper IaaS workloads Make IaaS stickier with PaaS

Line of business (LOB) applications

Huge opportunity with LOB apps Source: RightScale 2015 State of the Cloud Report (n=930 tech professionals)

Leverage Azure offers and flexible licensing Entry-level IaaS workloads Deeper IaaS workloads Make IaaS stickier with PaaS Leverage Azure offers and flexible licensing Licensing mobility for MSFT apps https://azure.microsoft.com/en-us/pricing/license-mobility/ Azure Hybrid Use Benefit (HUB) https://azure.microsoft.com/en-us/pricing/hybrid-use-benefit/ Azure Compute Pre-purchase https://azure.microsoft.com/en-us/overview/azure-for-microsoft-software/faq/ Azure Compute Option https://azure.microsoft.com/en-us/pricing/microsoft-azure-compute-option/ MSDN benefits for Dev/test https://azure.microsoft.com/en-us/pricing/member-offers/msdn-benefits/

Variety of Compute offerings to power apps 9/12/2018 8:21 PM Highest value A SSD Storage Fast CPUs D More CPU power F Most memory fastest CPUs G GPU-enabled virtual machines N HANA (Large) instances Dev/Test and entry-level workloads, HPC A8-A11 have infiniband and Intel Xeon processors General purpose VMs for most production apps Memory-intensive variants Two generations available IO and Compute intensive large SQL and noSQL databases, SAP and other demanding business apps Compute-intensive More CPU to memory ratio NVIDIA GPUs Compute- intensive+RDMA Remote visualization, Massively parallel applications Purpose-built hardware for SAP HANA Up to 3TB/node >80,000 IOPs Premium Storage © 2014 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Rich support for major ISV applications 9/12/2018 8:21 PM License-included VM Image Bring existing licenses Deploy via Cloud Appliance Library (SAP option) Oracle Database, WebLogic Server, Java ● DB2, WebSphere Application Server, WebSphere MQ Business Suite Software, Business All-in-One, BusinessObjects BI, NetWeaver Application Server ABAP HANA Dev Edition, New HANA certifications (S/4 HANA, OLAP and OLTP) Red Hat Enterprise Linux, Red Hat JBoss Enterprise Application Server and JBoss Enterprise Web Server, Red Hat Gluster Storage, and Red Hat OpenShift Enterprise For licensing details, check with your vendor rep © 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.

OSS on Azure

Azure is an open cloud DevOps Management Applications App Frameworks Entry-level IaaS workloads Deeper IaaS workloads Make IaaS stickier with PaaS Azure is an open cloud Clients DevOps Management PaaS & DevOps Applications App Frameworks & Tools Databases & Middleware Infrastructure

Capturing share through Azure OSS high value workloads

Entry-level IaaS workloads Deeper IaaS workloads Make IaaS stickier with PaaS

Care about PaaS? Why/how? Entry-level IaaS workloads Deeper IaaS workloads Make IaaS stickier with PaaS Care about PaaS? Why/how? Churn rates are lower on when PaaS is used SQL server  SQL DB, AD  Azure AD, Web apps  App Service etc. 1 Provides meaningful differentiation: market PaaS, Sell IaaS! 2 Engage in application re-architecture conversations (w/ PaaS), leverage CAD sellers for Azure PaaS. 3 “PaaS reduces billed/consumed revenue” – Myth (or a short-term reality at best) 4 3rd party PaaS on Azure drives Azure IaaS, (e.g. CloudFoundry, OpenShift) 5

© 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.