Building High Growth Services on the Microsoft Cloud Platform. Rich Cannon Senior Director, US Partner Hosting and Cloud Services

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1 Building High Growth Services on the Microsoft Cloud Platform Rich Cannon Senior Director, US Partner and Cloud Services

2 Momentum 35% YoY revenue growth Hosters are largest contributor across all partner types for Microsoft cloud business 35% YoY revenue growth

3 Rich Cannon Industry Market Development US and Cloud Services The Purpose of the Channel Markets team is to invest, drive and scale growth of Microsoft s strategic partners who develop cloud solutions to sell to business customers through providing marketing support.

growth of Microsoft s strategic partners who develop cloud

4 The opportunity ahead Customers are ready sort of Customers are demanding more Customers want comprehensive and custom solutions

5 Customers are ready sort of The road to hybrid cloud for customers is private 68% of hosting customers have migrated to private clouds

6 Customers are demanding more The opportunity to build on top of hosted infrastructure is massive Managed Service Security Services 70% of the opportunity for Cloud Service Providers is beyond infrastructure hosting Application Infrastructure 30%

Services 70% of the opportunity for Cloud Service Providers

7 Customers want comprehensive and custom solutions Ecosystem is ready and able 63% of revenue will come from another partner s infrastructure in two years

8 Value Added Services A Growing Revenue Opportunity Managed Services Application Security Services Premium 24x7 Support Services 45.1% Personal Productivity- 42.9% Docs Spreadsheet, Presentation Security Information & Event Mgmt. (SIEM) & Logging / Event Mgmt 35.8% Mobile Services 46.7% Virtual Desktop / VDI 44.9% Advanced Anti-Malware / Anti-APT 41.8% App Development Tools and Platform 47.3% Business Apps: include ERP, CRM, industry-specific apps 49.5% Web Application Firewall (WAF) 42.8% Disaster Recovery / Site Recovery 54.4% 54.0% Encryption of Confidential Data Stored in the Cloud 44.7% Backup and Recovery 67.8% Database 56.7% Endpoint Security 45.5% Source:

9% Advanced Anti-Malware / Anti-APT 41.8% App Development Tools and Platform 47.3% Business Apps: include ERP, CRM, industry-specific apps 49.

9 Massive opportunity

10 Key strategies Microsoft Cloud Platform >2M hosted Windows Servers deployed worldwide 100+ Cloud OS Network partners serving 4M customers Cloud Solution Provider Program 3M Office 365 seats deployed Services: Office 365 InTune Enterprise Mobility Suite more to come Azure Hyperscale Services 325% growth in consumption of Azure services through service providers 350+ service providers with Azure hybrid scenarios

Services: Office 365 InTune Enterprise Mobility Suite more to come Azure Hyperscale Services 325%

11 Microsoft Cloud Platform Workloads Learn More

12 CSP enables partners to sell bundled solutions Microsoft Cloud Services in CSP Office 365, Microsoft Intune, Enterprise Mobility Suite (EMS) 1 Create Cloud Subscription + Partner offer Set package price and sell 2to Customers Place order for Microsoft 3Cloud Services Offer single packaged 4solution Learn More https://mspartner.microsoft.com/en/us/pages/solutions/cloud-reseller-overview.aspx

package price and sell 2to Customers Place order for Microsoft 3Cloud Services Offer single

13 Azure Hyperscale Services Azure is a hyper-scale fully automated cloud platform that provides Microsoft partners the ability to focus on their core competencies of architecting and supporting cloud based solutions enabling the varied requirements of hybrid systems. Add capabilities of Dev/Test, Large VMs, Site Recovery, SaaS Marketplace Enable new managed services opportunities like EMS Reduce costs to incubate new services Expand reach through WW datacenters & AD Learn More

Azure Hyperscale Cloud Platform Over 70 services, with more to come Operational Insights Active Directory Multifactor Authentication Azure Search Application Services Virtual

14 Azure Hyperscale Cloud Platform Over 70 services, with more to come Operational Insights Active Directory Multifactor Authentication Azure Search Application Services Virtual machines Websites Cloud services Mobile services SQL database Data Factory Site Recovery Backup Compute Data Services Express Route Virtual network Traffic manager Name resolution Networks

machines Websites Cloud services Mobile services SQL database Data Factory Site Recovery

15 Positioning with Microsoft Hybrid Cloud Microsoft s is seeking to win in devices & services in a hybrid world through partners.* Servers Which Server Platforms do you use (<1000 Emp)?** Databases Which database platform do you use and which one is primary (<1000 Emp)?*** 18% 4% Total Usage 31% 19% Total Usage Primary Usage Primary Usage Unix Oracle 25% Hosted 34% 19% 33% 4% 75% On Premise Linux MySQL 93% 57% 80% 57% Server Revenue <1000 Employee Space Windows Server Microsoft SQL Server *Source: AMI Partners, MS Internal, Dec 2013 **Source: Cloud Platform Research, MS Internal, n=157, Jan 2014 ***Source: SQL Server Cloud Research, MS Internal,n=157, Jan 2014

*** 18% 4% Total Usage 31% 19% Total Usage Primary Usage Primary Usage Unix Oracle 25% Hosted 34% 19% 33% 4% 75% On Premise Linux MySQL 93% 57% 80% 57% Server Revenue

16 One Consistent Platform

Paul Schuman Sr Director, WW Hosting Service Providers Microsoft

Paul Schuman Sr Director, WW Hosting Service Providers Microsoft Revenue Hosters are largest contributor across all 35% partner types for Microsoft cloud business YoY Growth THE OPPORTUNITY AHEAD CUSTOMERS