2011 EMEA

Bob Kelly Corporate Vice President, Server & Tools Business Microsoft Corporation

7,500 + Partners Private Cloud Ready 250 partners trained as part of the Private Cloud Partner Boot camps Global Windows Azure Marketplace with 500 apps and 111 data sets from leading partners in 26+ markets 88% Managed ISVs Have Adopted SQL SERVER 2008 Releases 30,000 Partners trained on the Windows Azure Platform Partners delivered over 350 Proof of Concepts and Deployments as part of Hyper-V Cloud Accelerate Over 600 partners recruited into the Hyper-V Cloud Accelerate Program

All Forms of Computing are Growing Traditional Computing (+7.6%), Private Cloud (+24.1%) and Public Cloud (+24.9%) Cloud Computing Is Dominating the Conversation Despite Having Less Than 4% of the Total Installed Base of Servers IaaS Remains the Fastest Growing Cloud Scenario Gains from Virtualization/Consolidation are being used to Reduce Application Backlog and Growth

Initial “experiments” May Involve Enterprise Using Only One Cloud Provider Decision-Making Process More Formal with Business & IT Stakeholders Pricing Predictability Crucial due to Up-front Budgeting and Approvals Providers Selected Based Largely on In-house Technology, Compatibility & Existing Relationships Interest in Vertical-specific Cloud Vendors

Security & Compliance “The compliance and security become more important. Clients are auditing more and more, we used to get 1/month, now we get 2-3. They want to know if we're using external vendors, how we're ensuring that the data is secure.” Pricing “Some software vendors have sophisticated licensing and pricing options for non-cloud that they think will move to the cloud space. They may have success in short term, but it will be clear that the typical way of licensing hardware and software...that's over.” Compatibility “From a standpoint of us being a MS shop, it made sense, because we knew off the bat that everything was going to work... it was not going to have any compatibility issues.”

Category Planned to Move in Next 12 Months Moved (any volume) 12 Months Later Supply Chain Management 12.1%1.6% ERP 9.9%1.1% Web Conferencing 9.6%3.4% Customer Relationship Management 9.4%3.8% Backup & Disaster Recovery 8.5%4.7%

Psychological issues are as critical as technological Educate on SLA cost & comparison with current environment The cloud provides a cost-effective rapid-development environment Distinguish between cloud economics & cloud architecture Dollars may shift though largest gains are in productivity Plan for a return of rapid innovation – the cycle rate changes The web gave us awareness, the cloud gives us experience Identify how your customers can use cloud to push experience

2011 EMEA