Delivering Azure-consistent services from your data center Aaron Spurlock, Senior Manager, Product Management Software Defined & Cloud

Delivering Digital Transformation is complex Agile app dev & delivery platforms Current production environment Private vs. Public Cloud Big Data & analytics management We believe in the right mix because we believe the world will be hybrid. Apps and data will live everywhere, in many forms and will all have diverse requirements. Every customer has a legacy issue – this is a great way to get in the door. If we can help customers solve this problem and save money, we are in a better position to get that money back. 70-80% of all current IT spend is locked up here – but this area is going down. Now is the time to take advantage. Every customer must build their next gen production environment. All the new app and dev spending is here. Hybrid IT – build on software-defined infrastructure helps to address both of these areas. Build a bridge from the current to the future environment, cutting cost and simplifying, while brinding speed and agility needs for cloud- native apps. The edge is exploding. IDC says 43% of data will be processed here. We must lead in helping cusomters to connect, secure and compute at the edge and to make it intelligent. Per my example earlier, data is the future currency of world and it’s threatening to overwhelm us. For example, by May 2016, Facebook was processing 4 petabytes of data a day. That’s twice the entire Walmart transaction (structured) database, every day. While this is high, it’s actually only 4KB per active Facebook user. However, we’re about to take another leap in magnitude in the amount of data we’ll be processing. For example, just one self-driving car will generate 4 terabytes of data a day (as the graphic on the right nicely shows). That’s just one car. There will be 10 million of them by 2020 – generating 40,000 petabytes a day. And that’s just self- driving cars. We must talk to our customers now about how to build the next gen foundations for the new uses of all this data – HPC, Machine learning and AI. Transition – but it’s all irrelevant if we can’t deliver it all in the way the customer wants it. By 2020, ~75% of all new app spend will be on cloud-native apps 70-80% of all current IT spend is locked up here 19.4% Public cloud growth Private cloud growth over the next 5 years WalMart – 2PB/day 10M self-driving cars – 40,000 PB/day 16.8%

Significant interest in cloud interoperability The Majority of Enterprises Now Configure Cloud Interoperability Source: 451 Research’s Market Monitor: Cloud Computing, Q2 2016 % Respondents Hosted private cloud with public cloud On-premises private cloud with public cloud On-premises private cloud with hosted private cloud

Businesses are quickly adopting Microsoft Azure ® 120,000 new Azure customer subscriptions/month 150 billion Azure SQL query requests processed/day >85% of Fortune 500 use Microsoft® Cloud As businesses move, develop and deploy more apps in the cloud as part of their digital transformation, Microsoft Azure has been experiencing strong growth in all regions of the world. Here you see some of the metrics that show how much Azure is growing. Because of this growth, we are partnering with Microsoft to deliver Azure compatible hybrid cloud solutions. This reflects the strong leadership Microsoft has in both the traditional apps customers use today and the development platforms customers are using to create the next generation of apps. 715 million Azure Active Directory users 120 billion hits to websites run on Azure Web App Service

Enterprise use cases for Azure hybrid cloud Data sovereignty, security, and compliance Performance Support high-performance analytics, big data, and low-latency apps Protect your data and IP; meet compliance needs Azure Stack is a unique offering that addresses many challenges facing customers today. Here you see the top use cases for Azure Stack Data sovereignty, security, and compliance—Many organizations are uncomfortable putting their applications and data in a public cloud. But they like the ease of using a public cloud. Azure Stack is being used by organizations to provide easy access for services that have specific data sovereignty, security, or compliance requirements. As an example, many countries require personal data to stay within country boundaries. With Azure Stack, you can deploy the same application in data centers located in different countries—so you can run the same services across multiple countries—but keep personal data within each country’s borders, meeting data sovereignty requirements. Performance—Some applications demand the highest performance. If you’re doing high- performance analytics, public cloud may not offer the performance you need. If you are analyzing large data sets with data located in your data center, it may take too long to upload the large data sets to a public cloud. Or If your applications require low latency, or consistent latency, public cloud may not work for you. In these cases, Azure Stack is an ideal solution. Edge and disconnected applications—In some cases, you may be running many applications on the edge or running applications that you disconnect from your data center for period of time. These types of applications are good for Azure Stack. One example of a disconnected application is a cruise ship. There’s a mini data center to manage its operations. When the ship is in port, the mini data center on the ship is connected to the main data center. But when the ship is at sea, the mini data center runs disconnected from the main data center. There is so much data collected on a ship, it’s better to do local analysis, then upload the results later. Modern application development—Many modern applications, or cloud-native applications, are developed to run as microservices in many different environments. Developers don’t want to use different development tools for microservices running in different locations. They would rather develop with a consistent set of tools, then deploy the application wherever required. Since Azure Stack and Azure are API-compatible, applications can easily be deployed to Azure public cloud or Azure Stack running in a private cloud, with no changes to the application. Edge and disconnected applications Modern app development Deploy apps to private or public cloud Provide connectivity for disconnected apps For HPE and Channel Partner internal use only

HPE ProLiant for Microsoft Azure Stack Deliver Azure-consistent services from your data center Common developer experience for Azure and Azure Stack simplifies app development Multiple configuration options (processors, memory, storage, nodes, rack, and network switches ) Workload portability across Azure and Azure Stack Multiple packaging options (factory integration or virtual rack) HPE ProLiant for Microsoft Azure Stack allows organizations to run Azure-consistent cloud services in their data center. The key features of this solution include: Common developer experience—Applications can be deployed to either an Azure Stack private cloud or an Azure public cloud without modification. This is a powerful benefit to developers that makes it easier and faster to develop applications. Workload portability—Since Azure public cloud and Azure Stack services are API-compatible, applications can be deployed in Azure Stack and in Azure public cloud. Integrated systems management—Managing and maintaining a rack of servers, storage, and switching can be complex. HPE ProLiant for Microsoft Azure Stack includes integrated system management that makes is easier to do software and firmware updates, and monitor system status. HPE includes HPE OneView and HPE Insight Remote support running on a separate management server. Single vendor support—Solving problems for services running on multiple servers, network switches, and software products can be complex and frustrating. HPE offers single vendor support, so regardless of what component causes a problem, HPE manages the resolution with no finger pointing. Multiple configuration options—We know your workload requirements are dependent on your specific needs. That’s why we offer more configuration options. You can choose the number of nodes (from 4 to 12), the processor type, memory, and storage. We support larger memory configurations, up to 768 GB/node, than competing systems. Multiple packaging options—For most of our customers, we build the systems in our factory and ship them to the customer site. However, some of our customers would rather we use their own racks. In those cases, we can build the systems in our factories, using your racks, or we can build the systems in your data center using your rack. The choice is yours. Multiple financing options—We provide you with multiple ways to purchase HPE ProLiant for Microsoft Azure Stack. We have pay as you go, leasing, and capital purchase options. Multiple sourcing options—We provide you with multiple ways to source the solution. You can purchase the entire solution from HPE, hardware and software; you can purchase the hardware from us and the software from Microsoft; or HPE can be an indirect CSP or distributor. Whatever fits your needs the best. And HPE ProLiant for Microsoft Azure Stack delivers the largest capacity and highest performance, at full speed, giving you the ability to run even more workloads, faster. Integrated system management simplifies operations (HPE OneView) Multiple financing options (capital purchase, pay as you go, leasing) Multiple sourcing options (HPE, HPE & MS, direct CSP, indirect CSP) Single vendor support minimizes downtime1 Largest capacity and highest performance, at full speed 1. Available when HPE is the Microsoft cloud service provider (CSP) of record For HPE and Channel Partner internal use only

Tremendous early traction with customers around the world

Get started today Suggestions for how you can get started with your Azure hybrid cloud Implement an Azure Stack proof of concept with HPE infrastructure and expertise Schedule a workshop to develop an Azure hybrid cloud strategic plan Until HPE ProLiant for Microsoft Azure Stack is available, there are a number of things we can help you with today to get started. We can help you do a proof of concept today using Azure Stack Technical Preview code running on an HPE ProLiant DL380 Server. We can help you plan your Azure Stack project with a workshop, where we will bring in experts to help plan and architect your solution. You can visit the HPE–Microsoft Azure Stack Innovation Center where you can see the solution, have deep technical conversations with Microsoft and HPE technical experts and have business- planning meetings to ensure your Azure hybrid cloud will be a success. You can download Azure Stack software today and install it on an HPE ProLiant DL380 Server. We have a white paper that explains how to do this. Download Microsoft Azure Stack Developer Kit and install on HPE ProLiant DL380 Server Visit the HPE–Microsoft Azure Stack Innovation Center For HPE and Channel Partner internal use only

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