1. Deploying a Worldwide Site Consolidation Solution for Exchange Server 2003 at Microsoft Orlando Villarreal Regional Site Manager - Microsoft IT

2. AgendaAgenda Code name: “Titanium” Code name: “Titanium” Solution Overview Solution Overview Proof of Concept Proof of Concept Exchange Consolidation Results and Analysis Exchange Consolidation Results and Analysis Exchange as an enabler for IT consolidation Exchange as an enabler for IT consolidation

3. Exchange 2003 “Titanium”

4. Solution Overview Situation Large number of mailbox servers in remote sites Large number of mailbox servers in remote sites Low-bandwidth connectivity to servers affected user experience Low-bandwidth connectivity to servers affected user experienceSolution Consolidation of mailbox servers to six clustered installations Consolidation of mailbox servers to six clustered installations Deployment of Office 2003 with cached mode Deployment of Office 2003 with cached modeBenefits Reduced number of mailboxes, server operations costs, and overall messaging cost Reduced number of mailboxes, server operations costs, and overall messaging cost Maintained user satisfaction and productivity Maintained user satisfaction and productivity Created opportunity for further consolidation Created opportunity for further consolidation

5. Products and Technologies Windows Server 2003, Enterprise Edition Windows Server 2003, Enterprise Edition Exchange Server 2003 Exchange Server 2003 Office Professional Edition 2003 Office Professional Edition 2003 Microsoft Operations Manager 2000 Microsoft Operations Manager 2000 SQL Server 2000 SQL Server 2000 Storage Area Networks Storage Area Networks

6. Situation: Distributed Topology Increase in number of messaging users Increase in number of messaging users Increase in number of locations where users work Increase in number of locations where users work In early 2003, messaging infrastructure included 118 mailbox servers in 74 locations In early 2003, messaging infrastructure included 118 mailbox servers in 74 locations Server hardware near end of warranty Server hardware near end of warranty Adding local servers increased cost per mailbox and support burden Adding local servers increased cost per mailbox and support burden WAN costs decreasing WAN costs decreasing

7. Situation: Distributed Topology Central and North America 14 Sites 43 Servers South America 9 Sites 9 Servers Asia and Pacific 20 Sites 25 Servers Europe and Mediterranean 30 Sites 41 Servers

8. Planned Exchange Footprint FY03: 75 to 50 sites FY04: 50 to 7 sites

9. Solution: Consolidated Topology Charlotte 2 Servers 1 Cluster 5,400 Users* San Paulo 1 Server 1 Cluster 1500 Users* Tokyo 3 Servers 1 Cluster 8,100 Users* Dublin 8 Servers 3 Clusters 21,600 Users* Redmond 14 Servers 4 Clusters 56,000 Users* * Figures represent user capacity Singapore 2 Servers 1 Cluster 5,400 Users*

10. Solution: Consolidated Topology Technology advancements created opportunity to consolidate topology: Technology advancements created opportunity to consolidate topology: Scalability improvements in Exchange Server 2003 Scalability improvements in Exchange Server 2003 Clustering support in Windows Server 2003 Clustering support in Windows Server 2003 Volume Shadow Copy Service as part of backup strategy for Exchange Server 2003 Volume Shadow Copy Service as part of backup strategy for Exchange Server 2003 Support for cached mode in Office 2003 Support for cached mode in Office 2003

11. Solution: Strategy Three-phase consolidation: Three-phase consolidation: Measure baseline WAN traffic Measure baseline WAN traffic Consolidate servers Consolidate servers Measure resultant WAN traffic Measure resultant WAN traffic Measurement considerations Measurement considerations Peak traffic Peak traffic Data management Data management Business constraints Business constraints

12. EMEA Proof of Concept 9 sites, 11 servers, 6000 mailboxes throughout Europe chosen to be consolidated onto clustered SAN in Dublin 9 sites, 11 servers, 6000 mailboxes throughout Europe chosen to be consolidated onto clustered SAN in Dublin Over 90% of users upgraded to Office 2003 Over 90% of users upgraded to Office 2003 Five days of data collected pre and post consolidation Five days of data collected pre and post consolidation Client instrumentation Client instrumentation MOM data MOM data Network data Network data End users surveyed pre and post consolidation to make sure that the data matched the end user experience End users surveyed pre and post consolidation to make sure that the data matched the end user experience

13. Dublin London (438) Stockholm (683) Madrid (465) Amsterdam (792) Helsinki (142) Lisbon (210) Oslo (203) Exchange Server Mailbox Site/RDC Copenhagen (232) TVP (2568) (6000 Users)

14. Preliminary Results Average latencies 4 to 10x higher Average latencies 4 to 10x higher Maximum elapsed time 5 to 15x higher Maximum elapsed time 5 to 15x higher End user email experience unchanged End user email experience unchanged “Don’t notice much change since the transition…”

15. Network Impact Exchange accounts for 14% of network usage Exchange accounts for 14% of network usage Analysis of current usage per headcount performed to evaluate network impact of consolidation Analysis of current usage per headcount performed to evaluate network impact of consolidation Projected Exchange Traffic on Network Local Server 1 Kbps/Headcount Remote Server 5 Kbps/Headcount Preliminary results indicate 2.2 – 2.5 Kbps/Headcount Preliminary results indicate 2.2 – 2.5 Kbps/Headcount Exchange estimated to account for 29% of network usage in a consolidated world with overall network usage rising 20% Exchange estimated to account for 29% of network usage in a consolidated world with overall network usage rising 20% Customers need to evaluate their own user profiles when planning for consolidation Customers need to evaluate their own user profiles when planning for consolidation

16. Early WAN Analysis Cached mode aided performance Cached mode aided performance Most users reported no problems Most users reported no problems Peak traffic varied Peak traffic varied Within a site, from week to week Within a site, from week to week Across sites, based on different user behaviors Across sites, based on different user behaviors Multiple weeks of data collection required for valid results Multiple weeks of data collection required for valid results

17. Solution: Postconsolidation Measurement Measurement of WAN traffic by means of: Measurement of WAN traffic by means of: Cisco NetFlow Cisco NetFlow MOM MOM Outlook 2003 client health data Outlook 2003 client health data

18. Consolidating Servers A server costing $15,000 carries with it an additional $22,500 cost of maintenance and repairs over a 3 year period. A server costing $15,000 carries with it an additional $22,500 cost of maintenance and repairs over a 3 year period. A common formula is 60% M&R and 40% capital spend. A server costing $15,000 would end up costing $22,500 for M&R for a total of $37,500 over 3 years. A common formula is 60% M&R and 40% capital spend. A server costing $15,000 would end up costing $22,500 for M&R for a total of $37,500 over 3 years. To date, we have consolidated and removed 135 servers. At an average replacement cost of $37,500 over three years, Microsoft will save approximately $5,062,500 (125 x $37.5K) over the next three years (not including the remaining consolidation work we have planned).

19. Current Office Config & Costs Internet Small Office or Exec Suite Home or Road Redmond Small to Large Office DSL/Cable or Local ISP Dialup Analog or DSL/Cable AT&T Leased Line Exchange Active Directory RDC File and Backup ITG Cable Room ITG Cable RoomFile/Print (Possibly) Active Directory Router and Switches (Possibly) PBX Business DSL/Cable Approx. $150/mo T1 ~ $1300/MO or more Broadband Router/ Hub/Firewall ~ $400 Cisco Router and Switches ~ $20-40K Infrastructure Servers and Racks ~ $15-30K Cable Room Construction - Costs = approx $??/sf - Reduces usable footprint

20. Communication Cost Savings Convert existing small office CorpNet sites to new configuration this fiscal year Convert existing small office CorpNet sites to new configuration this fiscal year Existing Small Office Internet-Only Sites Existing Small Office Internet-Only Sites Asuncion, Birmingham, Boise, Des Moines, Grand Rapids, Harrisburg, Kingston, Louisville, Memphis, New York, Omaha, Orlando, Washington Asuncion, Birmingham, Boise, Des Moines, Grand Rapids, Harrisburg, Kingston, Louisville, Memphis, New York, Omaha, Orlando, Washington

21. Business Value Avoidance of server replacement costs Avoidance of server replacement costs Utilization of excess capacity Utilization of excess capacity Reduced maintenance costs (4 percent) and headcount (6 percent) Reduced maintenance costs (4 percent) and headcount (6 percent)

22. Business Value Increased Availability Increased Availability No decrease in user satisfaction No decrease in user satisfaction Increase in target availability of messaging service from 99.9% to 99.99% Increase in target availability of messaging service from 99.9% to 99.99% Clustering reduced planned outage minutes Clustering reduced planned outage minutes Provision for future IT infrastructure consolidation Provision for future IT infrastructure consolidation

23. SummarySummary No significant increase in WAN costs No significant increase in WAN costs No significant decrease in user productivity or satisfaction No significant decrease in user productivity or satisfaction Lower operational costs and headcount Lower operational costs and headcount Better availability and backup/restore performance Better availability and backup/restore performance Potential for future growth Potential for future growth

24. For More Information Additional content on Microsoft IT deployments and best practices can be found on http://www.microsoft.com Additional content on Microsoft IT deployments and best practices can be found on http://www.microsoft.com http://www.microsoft.com Microsoft TechNet http://www.microsoft.com/technet/itshowcase Microsoft TechNet http://www.microsoft.com/technet/itshowcase http://www.microsoft.com/technet/itshowcase Microsoft Case Study Resources http://www.microsoft.com/resources/casestudies Microsoft Case Study Resources http://www.microsoft.com/resources/casestudies E-mail IT Showcase showcase@microsoft.com E-mail IT Showcase showcase@microsoft.com

25. This document is provided for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS DOCUMENT. © 2004 Microsoft Corporation. All rights reserved. This presentation is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY. Microsoft, Active Directory, Outlook, SharePoint, Exchange, Windows, Windows NT, and Windows Server are either registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries