1. Microsoft Cloud Platform Licensing evolution
5/18/2018
Microsoft Cloud Platform Licensing evolution
(your name here)
Published December 2015
© 2014 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.

2. Datacenter evolution to support business needs
5/18/2018
Datacenter evolution to support business needs
“Seventy percent of CIOs will embrace a cloud-first strategy by 2016.”+
Modern app
development
Business Value
Hybrid
cloud
CLOUD-FIRST
APPLICATIONS AND SERVICES
Flexible
infrastructure
Evolution of datacenter
Infrastructure reliability and efficiencies - driving costs down
Now ability to develop and deploy applications quickly -
EFFICIENCY
Virtualization and standardization
INFRASTRUCTURE
EVOLUTION OF DATACENTER
+IDC, CIO webinar, 2014
© 2012 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.

3. Product evolves to support datacenter needs
Windows Server 2008
System Center 2008
Windows Server 2012
System Center 2012
Windows Server 2012 R2
System Center 2012 R2
Microsoft Azure
Windows Server 2016
System Center 2016
Microsoft Azure
Introduced virtualization platform/ management
Industry-leading scale and performance
Azure as design point
Cloud-first innovation: Infrastructure and application platform

4. A leader in Gartner magic quadrants
5/18/2018 3:28 PM
A leader in Gartner magic quadrants
x86 Server Virtualization1
Microsoft only leader in all four magic quadrants
Public Cloud Storage Services2
Cloud Infrastructure as a Service3
Microsoft is well positioned to bring cloud learnings to on premises
With Windows Server 2016, we’re taking the learnings from being a market leader in cloud and virtualization
and cross pollinating Windows and Azure.
We’re taking the with learnings we have from running Azure infrastructure and modern application platform to Windows and we’re taking our virtualization learnings from Hyper-V to Azure.
Enterprise Application Platform as a Service4
[1] Gartner “x86 Server Virtualization Infrastructure,” by Thomas J. Bittman, Michael Warrilow, July ; [2] Gartner “Public Cloud Storage Services,” by Arun Chandrasekaran, Raj Bala June 25, 2015; [3] Gartner “Magic Quadrant for Cloud Infrastructure as a Service,” by Lydia Leong, Douglas Toombs, Bob Gill, May 18, 2015; [4] Gartner “Enterprise Application Platform as a Service,” by Yefim V. Natis, Massimo Pezzini, Kimihiko Iijima, Anne Thomas, Rob Dunie , March 24, 2015.
Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
© 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.

5. Windows Server 2016 and System Center 2016
Cloud inspired
Modern application platform
Software-defined datacenter
Management
anywhere
Write once, deploy anywhere
Nano Server
Hyper-V containers
Windows Server containers
Cloud inspired infrastructure
New storage features
Azure inspired networking stack
Shielded VMs & Host Guardian Server
Hybrid cloud management
Real time visibility
Rolling cluster upgrade support
DPM support for Azure Express Route
Examples of those investments include the items on the slide

6. Window Server 2016 Standard and Datacenter Editions
Cloud inspired value across editions
Standard Edition
Datacenter Edition
Low or non-virtualized scenarios
Highly virtualized private cloud
Principal Editions
Standard and Datacenter Editions
Deliver enhancements to core Windows Server functionality
Make modern app development features accessible
Datacenter Edition
Continues to enable high density virtualization
Provides advanced software-defined datacenter capabilities
2 VMs
Unlimited VMs
2 Hyper-V containers*
Unlimited Hyper-V containers
Unlimited Windows Server containers
Packaging is building in cloud value
Both primary editions with get rights to container technologies for developers to leverage regardless of the edition they are running
Datacenter Edition will continue to support customers virtualization optimization with unlimited virtualization rights both for containers and VMs.
Datacenter Edition will also provide advanced software defined datacenter capabilities to make it the ideal for highly virtualized or private cloud environments.
Hyper-V is still included in both editions.
No pre-existing features were moved from one edition to another.
Standard Edition will continue to support low to non virtualized scenarios and also use of containers.
Nano Server as deployment option
Storage features including:
Storage Replica
Storage Spaces Direct
New Networking Stack
Shielded VMs and Host Guardian Service
*Windows Server 2016 Standard Edition entitles up to 2 VMs or 2 Hyper-V containers

7. System Center 2016 Standard and Datacenter Editions
Hybrid cloud management
Standard Edition
Datacenter Edition
Low or non-virtualized scenarios
Highly virtualized private cloud
Standard and Datacenter Editions
Deliver enhancements in server management from 2012 R2
Manage instances across platforms
Support provisioning and monitoring of new Windows
Server 2016 capabilities (e.g. Nano Server, Shielded VMs)
Datacenter Edition
Continues to support management of highly virtualized servers
2 OSEs
Unlimited OSEs
Configuration Manager
Operations Manager
Data Protection Manager
Virtual Machine Manager
Service Manager
Orchestrator
Endpoint Protection Manager
OSE refers to a server operation system environment under management by System Center

8. Virtualization optimization
Licensing across environments
Virtualization optimization
Cloud flexibility
Pay as you Go
Hybrid benefits
System Center with SA
Windows: Azure hybrid use benefit
Microsoft’s licensing has been developed to accommodate needs as customers continue to drive virtualization optimizations on premises and adapt to cloud use.
With 2012 R2 and going forward with 2016, we’ll continue to provide unlimited virtualization on premises with Datacenter. Datacenter will also get advanced software defined datacenter features at no additional cost to help customers take advantage of the agility and cost savings that SDDC capabilities can enable.
In 2016, both Standard and Datacenter editions will entitle use of containers so that they are accessible for developer use regardless of the edition they are running.
Customers with EAs already to get leverage their purchase agreement levels when purchasing Azure cloud resources. But recognizing that customers are at different stages of cloud adoption, we have created flexible purchase options.
We had already started providing hybrid cloud use benefits with System Center. We’ve recently expanded the benefits with an Azure benefit that applies to Windows Server SA customers to they can bring and run their Windows image in Azure at Azure compute rates. The hybrid benefits enable customers to continue to derive value in their on premises investments and use them towards their cloud transitions. Hybrid benefits provide flexibility in the adoption and timing of cloud services and value via additional cloud use rights on top of the existing on premises value.
A purchasing decision made today retains it’s value in the future.
Standard
Edition
2 proc
2 VMs
Datacenter
Edition
2 proc
Unlimited VMs
Compute pre-purchase
Microsoft Azure
Compute Option (MACO)
On premises
Azure

9. Hybrid licensing benefits provide more flexibility and value
On premises or cloud flexibility
Additional cloud value
Existing
Management
System Center SA
System Center SA license mobility
Manage 2 OSEs in cloud or on premises with Standard Edition
Manage 10 OSEs in cloud or unlimited on premises with Datacenter Edition
Server and Cloud Enrollment (SCE)
Manage 2 OSEs in cloud and on premises with Standard Edition
Manage 10 OSEs in cloud and unlimited on premises with Datacenter Edition
Operations Management
Suite
System Center SA add-on purchase
50%+ discount on OMS services (Backup, DR, log Analytics, Automation)
OMS editions entitle management of 2 or 10 VMs running anywhere
New
Windows Server
Azure hybrid use benefit*
Benefit available to Windows Server licenses with SA
Standard Edition in use of this benefit cannot also be in use on premises
Load and run own Windows Server image in up to 2 Azure VMs
Pay only the cost of Azure compute, saving on the Azure Windows price
Datacenter Edition keeps unlimited VM rights on premises while using this benefit
Hybrid benefits provide flexibility and assurance that the license purchased today will still have value tomorrow on premises or in the cloud. Software Assurance as an annuity payment is a great vehicle to help bridge the perpetual world to the subscription cloud world. With Software Assurance on System Center and Windows Server, customers get flexibility to run either on premises or in the cloud and also get additive cloud benefits to help in their transition to the cloud.
*More information to come on the Azure hybrid use benefit (available in Q1CY16)

10. Alignment to cores as the consistent cloud currency
Windows Server and System Center 2016 Standard and Datacenter Editions
Server licensing
Users or Devices
No change
License physical cores
License each user/device
With the 2016 release, the server licensing for Windows Server and System Center will become core based.
The change to physical cores aligns private and public cloud licensing to a consistent currency of cores that simplifies licensing of hybrid use cases. For example, a two proc license on premises today is translated into 16 cores of Azure use right benefit. Going forward the alignment to cores provides one underlying capacity currency across environments.
Server licensing
16 core licenses will be same as 2-proc 2012 R2 price
Customers granted a minimum of 16 core licenses per 2-proc 2012 R2 license with SA at renewal
1:1 ratio of cores for Azure hybrid use rights benefit
Feedback and asks

11. Key packaging and licensing considerations
5/18/2018
Key packaging and licensing considerations
Hybrid benefits available for licenses with Software Assurance
Core based licensing model being introduced at 2016 GA
Advanced software defined datacenter capabilities in Windows Server 2016 Datacenter Edition
Inclusion of Windows Server and Hyper-V containers in both Standard and Datacenter Editions
We’re sharing information about the 2016 release well in advance intentionally to provide customers and partners the opportunity to plan and prepare as they think about their on premises environments and cloud adoption plans.
© 2014 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.

12. 5/18/2018
© 2014 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.
© 2014 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.

13. Resources Product and licensing information Windows Server 2016
5/18/2018
Resources
Product and licensing information
Windows Server 2016
System Center 2016
Hyper-V and Windows Server containers
Azure hybrid use rights benefit
Microsoft software inventory tools
Microsoft Assessment Planning Toolkit
Software Inventory Logging Aggregator
© 2014 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.

14. More information to come for customers and partners
Azure hybrid use benefit
Available to
Windows Server Standard and Datacenter licenses with SA
What is it
Customers can upload own Windows Server image to Azure non Windows VM
Datacenter can continue being used for unlimited virtualization on premises
Standard Edition cannot be used concurrently on premises and with this benefit
Details
Each 2 proc license with SA gets benefit for up to 2 VMs
2 VM combined capacity cannot exceed 16 cores total Azure capacity
More information to come for customers and partners
Targeting Q1CY16

15. Net new licenses based on cores
Transition from processors to cores Windows Server 2016 and System Center 2016
Licenses with SA can upgrade to Windows Server 2016 and System Center 2016 at any time
At SA renewal, customers receive licenses for at least 16 cores* for each 2 proc license with SA
Customers can then renew SA on the amount of physical cores on the server
1st renewal after GA
Current agreement enrollment
Renewal
True-ups proc licenses
SA licenses can upgrade to 2016
2-proc licenses with SA granted minimum of 16 cores*
Customers renew SA on number of physical cores
General availability
Windows Server 2016
System Center 2016
Net new licenses based on cores
* Additional core licenses granted with documentation of SA covering procs with greater than 8 cores / proc