HPE Flexible Capacity with Microsoft Azure & Azure Stack The vision behind making Hybrid IT consumption a reality Reuben Melville FY17 Q3 Version 2.0

HPE Consumption-as-a-Service Tailored to meet your requirement for your hybrid journey Advisory & Transformation*: Asses right mix of IT for your workloads, Implementation & Integration of your hybrid environment Tailored Deliverables Capacity Management & Planning Advanced Metering & billing for hybrid environment with monthly invoicing Tailored deliverables & SLAs Easy to increase capacity via SOW Helping with Compliance* Comprehensive Defective Media Retention On-site Data Sanitisation & Destruction Monitor and replenish as needed 59% of enterprises wait 3 months or longer for new capacity 1 59% for compute and 48% for storage 1 Save on costs due to overprovisioning Enterprises overprovision on average by Traditional purchases (CAPEX) Flexible Capacity Buffer Minimum commitment level Compute needed and invoiced Scale to the Cloud with MS Azure Scale to the Cloud with MS Azure Flexible Capacity Savings In the areas with the financials graphic, assets that were purchased to meet future capacity needs are sitting idle, tying up capital that could be used to benefit the business. In the areas with the time – plan graphic, assets were not purchased early enough to meet the increase in capacity demand. While waiting out the procurement cycle, the business is unable to take advantage of new opportunities or begin key new initiatives. Often procurement cycles take 3-4 months, meaning missed opportunities. With Flexible Capacity you get additional capacity in minutes, not months, and you pay for what you use, subject to a minimum commitment. Infrastructure can include MS Azure Stack $ Capacity ahead of demand Maintain a safe buffer of capacity 50% experienced downtime due to capacity planning 57% received complaints of slow performance1 Flexible Capacity Savings Only pay for what you consume One support solution One invoice One support provider Time 1 451 Research November 2016 *Can be included within your Consumption-as-a-Service

HPE Flexible Capacity: customer benefits Improve IT ROI No up-front payment Pay for what you use1 Optimize cash flows Eliminate the cost of overprovisioning Align IT cost to business demand Speed time to value Increase available capacity in minutes, not months Unlimited—refreshed as it is used with simple change order Avoid long procurement process Reduce Risk Improve IT delivery Able to react quickly to market demands Share utilization risk with HPE Free up IT staff to focus on innovation Pay for what you consume – no upfront payment Always have enough capacity to handle growth One support provider; invoice & contract. Scale to the Cloud On start – improve ROI - The benefits that flexible capacity delivers to your customers can be summarized in 4 key areas. Firstly it increases your customers return on their IT investment. With no up front payment, pay for use, and eliminating overprovisioning flexible capacity can substantially improve IT ROI for the right customers. Imagine the delight of the purchasing department and the finance department when you allow them to align IT costs with the business demand and benefits. Click 1 – speed time to value - Your customers business functions are increasingly looking for the IT department to support innovation and time to value. Flexible capacity delivers with capacity ahead of demand, and ability to scale in minutes rather than months. Click 2 – Reduce risk - More than anything Flexible capacity is a risk sharing model. Your customers can share IT utilization risk with HPE. At the same time they free up IT staff to focus on more innovative projects or improve overall operating efficiency. HPE Flexible Capacity = Greater agility and confidence for your customer, while saving money at the same time.

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