Changing The Conversation: Microsoft Private Cloud Oct 14, 2011 Anand Kamat, Group Program Manager Cloud and Data Center Management, Microsoft Pramod Rao, Head Microsoft Solutions Dimension Data Key Points: Welcome & Thank you Tee up what we mean by “changing the conversation”   Talk Track: Hello and thank you all for joining me today, I am (name and title). I am excited to be here with you today to change the conversation. We hear from our customers and partners often that there is still quite a bit of confusion around what is Cloud Computing and even more specifically what is the Private Cloud. Over the next hour (75 min if the mini-decks are included) we are going to clarify these definitions for you and instead of talking about what you are doing today – we are going to talk to you about what you COULD be doing today to increase your IT focus, respond to business needs with more agility and improve economics. Sound good? Great, let’s get started.

The Next Transformation - Cloud Computing Elastic Usage Based Self Service Pooled Resources Agility Focus Economics Key Points: Land the Manifesto / Change the conversation Attributes: Pooled Resources, Self Service, Elastic, Usage Based Benefits: Focus, Agility, Economics   Talk Track: Today, cloud computing is changing the very definition of IT. And so the conversation needs to change as well. Yesterday, the conversation was about consolidation and cost. Today, the conversation is about the new breed of benefits that cloud computing delivers. It’s all about transforming the way IT serves your business by harnessing a new breed of power. Microsoft is the only company that brings all of the pieces together in an integrated, comprehensive way. With our long-term vision to change the world through computing, we help every customer transform the datacenter of today into the private cloud of tomorrow, with a pathway to the public cloud and beyond. With that said – cloud computing is the on-demand delivery of applications as standardized IT services, and inherently has four key attributes: Pooled Resources: As I mentioned earlier, we often hear that cloud computing is just big virt. It’s not. Cloud Computing uses virtualization but it adds significantly to virtualization. It pools those resources together and allows you to dynamically provision and scale applications. Self Service: Once you pool your resource, Cloud Computing provides a self service way for the business to get at those resources or more specifically by providing self-service IT infrastructure to business units and departments with an SLA. This forces service-level discussion and removes the burden to procure, provision and manage infrastructure on a per application, ad-hoc basis Elastic – Scale up (or scale down) dynamically as resource needs change, enabling faster delivery of capacity. Usage Based – Paying for only what you use, when you need to use it I am sure just hearing the attributes the benefits are crystalizing for each of you but I do want to spend a few minutes talking about the biggest benefits from our perspective: Focus: This is about having more people able to focus on higher-level parts of the stack, managing those applications SLAs, rolling out new applications, not having to worry about the underlying infrastructure Agility: This is not only about being able to deliver the applications more quickly to your users and to your customers, but also being able to respond to changes in demand. So, the next time the marketing department launches a campaign, doesn't tell anybody, your public website is underwater, it's very easy to scale that out quickly to meet that demand. Economics: Because you're running multiple workloads on the same overall infrastructure, you get better utilization across those applications. And because the Cloud pools together these resources, you can buy broader sets of resources at one time, lowering the overall cost. So, for agility and focus and economics, you have great motivation to move to the Cloud, and those benefits accrue to both public and to private Cloud Computing.

Your Challenges Today Compliance and Security: Often cited as top concerns for IT. Server Sprawl: Dedicating servers to single applications of IT budgets is spent maintaining inflexible & siloed datacenter equipment Infrastructure Complexity: The average $1 billion company maintains 48 disparate financial systems and uses 2.7 ERP systems Application Developer: “IT slows me down.” Business Owner: “I can get it better, faster, cheaper if I work around IT.” Key Points: Land an emotional connection with the audience around the pains they are feeling today: Server sprawl / virtual server sprawl Compliance and Security Concerns 70% of IT budgets spent on maintenance costs Pressures from business and application owners threatening to work around IT Complexities of the infrastructure they manage / business is fragmented   Talk Track: Let’s take a look at business today… you and your peers face a lot of challenges… First you are constantly fighter server sprawl, across your business in different departments, branches, due to acquisitions, legacy infrastructure… (click) its no wonder 70% of IT budgets are spent on maintaining silo’d and inflexible datacenters. We often hear from our customers that worries of security and compliance keep them up at night. And a valid concern especially as we think about trends such as consumerization of IT. In addition to the expanse of what IT is being asked to manage – what we are asked to manage is increasingly complex, did you know that they average Billion dollar company manages 48 disparate financial systems? And finally, both the business owner and the application owner are starting to work around IT siting reasons on being able to do it faster, cheaper on their own. This leaves gaps in being able to understand the full IT landscape which leaves you unable to manage and support these areas of the business. Microsoft has the solution to help you with these challenges. Let’s get back to our journey.

Microsoft’s Public Cloud Learning The Public Cloud Customer Self Service Delegation & Control Re-imagined Processes Automation Change Control Process Maturity Scale Out Application SLA-Driven Architecture Slide Title / Description: Public Cloud Learnings / What Microsoft has learned from the Public Cloud   Key Points: We are taking our learnings from the Public Cloud into the Private Cloud Extreme Standardization: Compute, Network and Storage across our datacenters are the same SLA-Driven Architecture: architected in a way where there's no dependence on a single server, the state of the application is separated from the operating system, so when something does happen, the service seamlessly moves that work to another disk, to another server, and it's all taken care of in the architecture of the application Process Maturity: We automate the daylight out of everything. And then we put rigorous change control in. Delegation and Control: each service has their own face that they can own and play within, we give a full self-service experience so that the owners have full control within the constraints that they've been given by the team that manages the infrastructure in a self-service experience to do what is right for their particular service or their particular business Talk Track: Now, let's just spend a couple of minutes talking about what these core learnings are. So, I'm going to walk you through an example of how our datacenters look, then we're going to walk through exactly how we've taken these principles and these concepts and implemented them in our software that we're delivering to you to help you build a private cloud. So, the first thing is standardization. And I know all of you try and you strive to be standardized in your data centers, but in these cloud data centers that we have at Microsoft, you know, I think about the only way to describe this is to say it's extreme standardization. And "extreme" is the right word. As we go out and we buy servers, we buy servers in tens of thousands at a time. You can think about this in terms of things like, Southwest Airlines talks about one of the reasons they can keep their costs so low is they buy one model of airplane. And so they have to stock less parts and they have to have less expertise. It's very similar in our data centers. We standardize to the extreme. Second, and this is a really important point, the applications are built with an understanding that failure happens. So, the applications are architected with an inherent understanding in the architecture the servers are going to go down, that disks are going to fail. And they're architected in a way where there's no dependence on a single server, the state of the application is separated from the operating system, so when something does happen, the service seamlessly moves that work to another disk, to another server, and it's all taken care of in the architecture of the application. And that's what I mean here when I talk about a cloud-style application. With this kind of standardization, we get a really rare opportunity, which is we get to re-imagine how we do processes. We automate the daylight out of everything. And then we put rigorous change control in. Let me give you just a couple of examples of these re-imagined processes. When disks go down we don’t go out and replace the disk in this rack until that particular rack has kind of hit a point where 10, 15 percent of the storage is no longer functioning, then we dispatch somebody out to do it. When a server fails, we re-image that server remotely, and if it doesn't come up, we assume there's a hardware failure, and we go and replace the server. But it's all about understanding what we can do when you're trying to run at a scale when you have hundreds and hundreds or millions of servers and then using tools like System Center Orchestrator, to do your automation to have that rigorous ability, predictability to have things happen time after time in the right way in a predictable manner and take the human error out. And then finally, because we've built all this, we have this architecture, the standardization and each service has their own face that they can own and play within, we give a full self-service experience so that the owners of the servicing, the owners of Bing, the owners of Communicator, the owners of Hotmail have full control within the constraints that they've been given by the team that manages the infrastructure in a self-service experience to do what is right for their particular service or their particular business. Extreme Standardization

Microsoft’s Public Cloud Learning The Public Cloud Extreme Standardization SLA-Driven Architecture Process Maturity Delegation & Control Key Points: Proof of our Public Cloud learnings with our customer services: Hotmail, Messenger, Office 365, Bing, Windows Azure, XBOX Live   Talk Track: These are the learnings from the public cloud that we've been building for many, many, many years and have proven capabilities as demonstrated by many of our consumer services. Did you know? (Note to Speaker – Pick a couple examples from the following list): 9.9 billion messages a day via Windows Live Messenger 600 million unique users every month on Windows Live & MSN 500 million active Windows Live IDs 40M paid MS Online Services (BPOS, CRM online, etc.) in 36 Countries 5 petabytes of content served by Xbox Live during Christmas week 1 Petabyte+ of updates served every month by Windows Update to millions of servers and hundreds of millions of PCs worldwide Tens of thousands of Windows Azure customers 5M LiveMeeting conference minutes per year Forefront for Exchange filters 1B emails per month

Microsoft’s Public Cloud Learning The Public Cloud The Private Cloud Talk Track: We are taking all of the learnings to date from the Public Cloud and bringing them back into our Private Cloud Solution. And by saying “Yes” to the Private cloud, Microsoft can help you leverage what you have today to combat the challenges we covered early and more.

It Is Possible Today The Private Cloud 41% of customers today use a combination of Private and Public Clouds “Microsoft (Cloud Computing) Raises the Bar – Possibly Beyond the Reach of Others?” Al Gillen, VP, IDC “… the cost savings and integrated management tools inherent in a Microsoft solution justified a total migration to Hyper-V.” Egbert Fichtler, Head of IT Infrastructure Miele China Telecom got its first Internet Datacenter up and running in just six months—half the time it would have taken using VMware. “Businesses are experiencing speed-to-market and cost containment pressures lifting with cloud computing. It is fast and cheap.” Accenture The Private Cloud Talk Track: And best of all embracing the Private Cloud is possible today – Analysts believe in our solutions and Microsoft’s vision. Our customers and our Partner community have harnessed the Power of Cloud Computing and are realizing the benefits for their organization. Source: 41% of customers today use a combination of Private and Public Clouds. - Microsoft internal research

The Private Cloud Defined Elastic Usage Based Self Service Pooled Resources Customizable Control It’s cloud dedicated to you. Key Points: How is the Private Cloud different? Cloud Attributes + Control and Customization Private Cloud is Cloud…dedicated to you.   Talk Track: The Private Cloud has all of the same benefits and attributes as we explained before – plus you also receive a high level of customization which provides you with the control enterprises need to address regulatory privacy and compliance requirements that wouldn’t be possible with Public Cloud services. These attributes aren’t necessarily due to proximity, the public / private distinction is not about location, we are only talking about computing models… but from globally shared resources with a public cloud to dedicated resources. A private cloud is a cloud, dedicated to you.

“ “ Cloud Power Unleashed Private Cloud Rand Morimoto President Convergent Computing Key Points: Customers and Partners are embracing the Private Cloud   Talk Track: I’ll be sharing quotes and customer evidence with you throughout our time together, but what really gets me excited is when we have adoption by our Partner community. When partners are ready to build their business on our technology and not only do they have success, but they see success for their clients-in my mind that is success. The quote here comes from Rand Morimoto the President of Convergent Computing. Convergent Computing (CCO) is a global IT consulting firm and one of the first Microsoft Gold Certified Partners for Enterprise Systems. CCO wanted to expand its areas of expertise and develop a new practice area that would help enterprise IT customers deliver business value by optimizing their server infrastructure. The consultancy chose Microsoft cloud services, and now uses the Windows Server 2008 R2 Service Pack 1 (SP1) operating system with the Hyper-V virtualization technology, and Microsoft System Center data center solutions to help customers deploy private cloud infrastructures, including automated, end-to-end service management. CCO ensures its own success by helping customers reduce costs—up to U.S.$1.2 million a month in one case, better manage infrastructure costs and control their infrastructure, and focus on delivering business services.

Key elements of the onecloud framework Utility Model Utility based Infra… Partnership model to make infrastructure available as a Utility Cloud Automation Pre-Integrated automation architecture and customization capability Service Portfolio Create “XAAS” Portfolio Service Creation AND collateral to enable GTM Operations Operations Center Enable outsourcing of Cloud Operations by leveraging the Centralized Command Center Integration & Migration Integration services Go jointly with SP/Enterprise to market, and help migrate services from onsite to hosted/private cloud Key Points: Proof of our Public Cloud learnings with our customer services: Hotmail, Messenger, Office 365, Bing, Windows Azure, XBOX Live   Talk Track: These are the learnings from the public cloud that we've been building for many, many, many years and have proven capabilities as demonstrated by many of our consumer services. Did you know? (Note to Speaker – Pick a couple examples from the following list): 9.9 billion messages a day via Windows Live Messenger 600 million unique users every month on Windows Live & MSN 500 million active Windows Live IDs 40M paid MS Online Services (BPOS, CRM online, etc.) in 36 Countries 5 petabytes of content served by Xbox Live during Christmas week 1 Petabyte+ of updates served every month by Windows Update to millions of servers and hundreds of millions of PCs worldwide Tens of thousands of Windows Azure customers 5M LiveMeeting conference minutes per year Forefront for Exchange filters 1B emails per month

ONE CLOUD VIDEO Bring on stage a IPAD, launch Citrix from the reference Framework solution showcase outside. Show off Windows 7 on the IPAD Bring on Stuart as the Magician's Girlie Assistant.

New Partnerships BSNL 6 Tier 3 Datacentres across India Full range of service offerings PLDT Joint partnership with PLDT & Microsoft to provide private cloud offerings both hosted and on client premises

Ministry of Manpower MOM upgraded its website to improve user experience through content management and development of new features – enabled by migrating to Microsoft SharePoint platform and utilising a private cloud model for its data centre. The success of the project can be seen in the increase in positive feedback on website usability.

Ministry of Manpower Managed Hosted Solution Design / Built and Operated by Datacraft Applications – iSubmit by Datacraft Migration from Legacy Portal 75% reduction in people needing to visit MOM offices for paper work submission New exciting design Ease of navigation http://www.futuregov.asia/articles/2010/jul/22/singapores-labour-dept-cuts-office-visits-75/

Summary Cloud Computing isn’t mystical – benefits need to be balanced with key considerations The benefits of Cloud Computing can be delivered in a number of ways The desired business outcomes and key considerations should define the solution Dimension Data has the broad skills and solution offerings to ensure success Change Dimension Data to Datacraft Establish Credibility that Datacraft can do this Reach out to the Datacraft booth – Register at the Datacraft Booth We’ll be around Dimension Data offers a structured process to assist clients to navigate a cloud journey

Thank you Q & A