I believe. Satya Nadella CEO, Microsoft. History of making big bets

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2 I believe over the next decade computing will become even more ubiquitous and intelligence will become ambient. The coevolution of software and new hardware form factors will intermediate and digitize many of the things we do and experience in business, life and our world. This will be made possible by an ever-growing network of connected devices, incredible computing capacity from the cloud, insights from big data, and intelligence from machine learning. Satya Nadella CEO, Microsoft History of making big bets

3 We re reimagining Microsoft + The mobile-first, cloud-first enterprise

4 Why Cloud?

5 IT capacity IT capacity Why Cloud? Convert upfront capital expenses to lower operating costs Traditional IT Consume the right amount of technology without overspending Under-capacity Over-capacity Scale up or down to meet business requirements Time Take on new opportunities that were previously cost prohibitive Cloud Enable IT to develop new business-focused core competencies Run IT more efficiently for a lower carbon footprint Time Capacity Load forecast Actual load

6 No advertising We don t build advertising products out of customer data No data mining We don t scan the contents of customer or documents for analytics or data mining No co-mingling Business data and consumer data are stored separately Data is portable Customers own the data and can remove their data whenever they choose Data Maps Government Customers know where their data is stored in Continental US Role based Access Customers know who can access their data and why Compliance Notifications Customers can stay in the know by choosing to receive updates regarding changes to security, privacy and audit information Independently Verified ISO HIPAA-HITECH FERPA FISMA CJIS SSAE 16 Relentless on Security 24 hour monitored physical datacenters Logical isolation of data between tenants Segregation of internal datacenter network from the external networks Encryption at rest and in transit (AD-RMS) Securing access to services via identity Data loss prevention Anti-virus/anti spam Service Continuity 99.9% uptime Financial guarantees on uptime Redundancy in both functionality as well data Automated monitoring and recovery systems 24x7 on-call engineering team available to handle issues * Review latest certification information at:

7 Microsoft Innovation at global scale 14B+ weekly Microsoft Azure AD authentications 57% of Fortune 500 use Microsoft Azure 1M Microsoft Azure SQL databases 29K+ organizations already use Windows Intune 93% of the Fortune 1000 use Active Directory 67% servers worldwide run on Windows Server** 45% worldwide share: SQL Server most widelydeployed database* 66% of enterprise seats covered with System Center Microsoft has one of the two largest cloud infrastructures on earth 20T objects stored in Microsoft Azure, which runs on Windows Server Hyper-V Bing runs on Windows Server 7B+ global queries per month 1B+ Office users, Office 365 is our fastestgrowing commercial product ever * IDC Server Workloads Study 2013 ** IDC 2013 WW Server Tracker

8 Microsoft Innovation at global scale 1,000,000,000 Office 365 Word Excel PowerPoint 2 in 3 Outlook OneNote Project 84% Team Sites Business Intelligence Content Management Enterprise Social Portals

9 Government Clients that Trust MS Cloud (States & Fed)

10 Government Clients that Trust MS Cloud (Cities & Counties)

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12 Microsoft Transformation 3.0

13 Microsoft Transformation 3.0

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15 CONTROL AND EFFICIENCY Single user interface to purchase, administer, and user with Role Based Access Control Single sign-on with on-premises Active Directory 99.9% financially backed SLA 24x7 IT pro support Built in geo-redundancy in regional data centers

16 Deploy Office fast without giving up control

17 Restricted to Qualifying US Govt. customers US based Data Centers for core data Personnel with access to core customer data are US Person and have passed FBI CJIS Background Screening

18 Office Lync OneNote OneDrive Pro for Business Office 365 Admin Office Suite Office for Windows Phone Included in Office Suite Lync Apps Included in Office Suite OneNote Apps Included in Office Suite OneDrive for Business Apps Office 365 Admin App for Windows Phone Office for iphone Office for ipad OWA for iphone and ipad Lync Apps for iphone and ipad OneNote Apps for iphone and ipad OneDrive App for iphone and ipad Office 365 Admin App for iphone Office Web Apps (Word, Excel, PowerPoint, and OneNote) for IE, Firefox, Safari, and Chrome Office Mobile for Office 365 Lync App for Android OneNote App for Android Office Mobile for Office 365 Office 365 Admin App for Android

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21 Windows Azure LOB Application Saved VM State StorSimple Cloud-Integrated Storage (CIS) Primary Volume Servers Snapshot Cloud Snapshots to nearby cloud storage service region Cloud Clones to remote cloud storage region for DR

22 Store, backup, recover your data Develop, test, run your apps Extend your infrastructure 23

23 Simple and fast on-ramp to Azure Active data instantly available locally Archives less used data to Windows Azure Recover data from any internet connection Reduce enterprise storage TCO by 60-80%

24 Backup and restore database to the cloud SQL Server Management Studio Benefits Reliable off-site data backup for SQL images Easily restore databases using VMs

25 Backup datacenter data to Windows using System Center Data Protection Manager Backup and recover files/folders from Windows Server 2012 SP1 Your On-Premises Datacenter Benefits Reliable offsite data protection Simple, familiar, integrated Efficient backup and recovery Easy set up

26 Store, backup, recover your data Develop, test, run your apps Virtual Extend datacenter your infrastructure 27

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29 Store, backup, recover your data Develop, test, run your apps Extend your infrastructure 30

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31 (Equinix) (Coming soon) Public Internet (AT&T)

32 Extend your infrastructure Microsoft Azure Active Directory SharePoint SQL Server

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34 Desktop Virtualization Single sign-on Self-service experiences Access & information protection Hybrid identity Common identity Conditional access Mobile device & application management SaaS applications

35 Windows Azure Active Directory Premium Many apps, one identity repository Pre-integrated for Single Sign On (SSO) to over 500 popular SaaS apps Easily add custom cloud-based apps. Connect to your on-premises Windows Server Active Directory Manage identities and access to cloud apps Comprehensive identity and access management console Centralized management for assigning access to applications with groups Secure business processes with advanced access management capabilities Monitor and protect access to enterprise apps Enable users Security reporting to track inconsistent access patterns Included Multi-Factor authentication capabilities Advanced machine-learning-based reporting Consistent experience for SSO the access panel Tenant branded access panel Self service password reset

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41 Who / When Customers who buy 150+ seats of Office 365 from September 1, 2014 March 31, 2015 Office 365 Enterprise plans (E1, E3, E4) Exchange Online Plan 1 and Exchange Online Plan 2 Office 365 Pro Plus, SharePoint Online standalone plans, Lync Online standalone plans, OneDrive Standalone plans. Office 365 Government plans (G1, G3, G4) Paid Office 365 Education plans (A3, A4) What Partner or MCS-Led Adoption Activities Option Customers earn funds on a per seat basis to pay for qualified adoption activities by Cloud Productivity Competency Partners or Cloud Deployment Partners (by exception) or MCS $15 per seat for seats, then $5 per seat above 1000 seats $60K limit for customer Or Migration Option Office 365 Onboarding Center will complete migration for all offer-eligible customer mailboxes