Agenda
•Industry Perspectives
•Mid-Market Company Background & Priorities
•Partner Opportunity
•Appendix
5
The roughly $29 billion increase in SMB IT spending in 2011 will be close to the $30 billion gain of 2010, but with some dramatic shifts…with interest in cloud computing and virtualization of on-premises resources reaching new levels.
Raymond BoggsVice President of SMB
Research IDC
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Time to Refresh
60Virtualization
40Upgrade Nirvana
72Keeping the Lights On
70percent of mid-sized companies still run Windows Server 2003
percent of the IT budget is traditionally consumed by ongoing operations versus innovation
percent of mid-sized businesses are seriously looking at virtualization
percent of mid-size businesses think that it is time to refresh their PCs and Servers
TODAY’S Situation
Source: Internal Microsoft study, 2011
Source: US Small Business IT Priorities and Marketing Report, Techaisle Source: US Small Business IT Priorities and Marketing Report, Techaisle
Source: “Focus Your I&O Budget On Three Key Initiatives,” Forrester Research, Inc., July 16, 2010
8
Mid-Market Target
Companies with:
25 – 250 PCs Aging Servers Minimal
Virtualization
Business Decision Maker and IT Pro make
IT decisions
10
Top IT Initiatives Over Next Two Years
Migrating From Older Technologies1
Maintaining & Enhancing Current IT Infrastructure2
Controlling IT Costs3
12
Microsoft is the natural fit for our customers for virtualization. With a solution for both the operating systems, hypervisor, and management of physical and virtual solutions, the platform is more complete than any competitor.
Dave SobelCEO
Evolve Technologies
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13
Get Started Today
Be the Trusted Advisor by assessing customer’s needs
Upgrade to Windows Server 2008 R2 SP1 with Hyper-V
Virtualize and Consolidate with Built-in Hyper-VCentralized IT Management with System Center
Essentials
1 2
3 4
14
Why Upgrade? Top Five Reasons
Failover Clustering and Identity Management
Hyper-V is Built-into the OS
RDS, VDI, and BranchCache
Security & Availability
Virtualization Branch Office Management
Better together with System Center
Essentials 2010
Applications
Optimized to run SQL Server,
Dynamics, and other apps
1 2 3 4 5
Virtualization Is Here To Stay: The Virtualization 3.0 Ecosystem
15
$0.00
$10,000.00
$20,000.00
$30,000.00
$40,000.00
$50,000.00
$60,000.00
$70,000.00
2009 2010 2011 2012 2013
External cloud virtual servers
Support services
Integration/consulting/training
Storage software (x86)
Storage systems (x86)
Server hardware (EPIC, RISC, CISC)
Server hardware (x86)
Virtual server management
Virtual machine software
$61.7B by 2013
12.9% growth
Source: Market Analysis Perspective: IDC Enterprise Virtualization Software – Mainstream Adoption of Virtualization to Enable Cloud and Mobility, 2011 and Beyond, March 2011 (#227532)
WW Virtualization-related Ecosystem
Revenue By Technology Market
16
Why Microsoft Virtualization?
Desktop to Datacenter
Complete Managemen
tBest TCO / ROI
It’s the Platform You
Know
Virtualization is Built-in
Tools you know
Full range of products & solutions
Physical and Virtual Management
Lower costs upfront & ongoing
Easier integration w/ existing systems
17
Partner Profitability [Over Time]
Per Project, VMware delivers more revenue and margin…
… leading to higher Practice revenue and margin with Microsoft
… but Microsoft gives you a higher probability of winning…
VMware Microsoft
34 25
91 74
12599
Revenue Cost Margin
VMware Microsoft
728 948
1,937
2,821
2,665
3,769
Revenue Cost MarginVMware Microsoft
2040
Win Rate
Mid-Market Project Revenue and Margin ($000) Mid-Market Deal Win Rate (%) Practice Revenue and Margin ($000)
Analysis of a typical US partner competing for representative deals of mid-market business customers.
Note: Assumes competing for 50 deals in year 3 (after practice has fully ramped up), with 80% Mid-Market and 20% Large Enterprise. See Economic Model for more details.
18
Partner Profitability
$5K in Microsoft System Center
= $170K in Solution Sales for our VAR and SI Partners $-
$5
$10
$15
$20
$25
$30
$35
Professional Services
Other Software
Business Applications
Security Products
Storage Products
Networking Products
For our Partners, every $1 in Microsoft Server Virtualization software generates an additional $34 in sales of complimentary Products & Services
19
Apples To Apples With VMware
ESXi3 ESX4.1 U1 Hyper-V Server 2008 R2 SP1
Price $0 $0 $0
Bare-metal Hypervisor
x86 x64 x64
Boot from Flash Yes Yes Yes
Host Processors 32 Logical CPU’s
160 Logical CPU’s
64 Logical CPUs
vSMP Support 4-way 4-way 4-way
Host Physical Memory
256GB 1TB 1TB
Virtual Machine Memory
64GB 255GB 64GB
Free Remote Management Client
Needs vCenter
Needs vCenter
YES
High Availability / Failover Clustering
Needs vCenter
Needs vCenter
YES
Dynamic Memory No No YES
High-End Graphics for VDI
No No YES
Host based console for configuration and troubleshooting
No No YES
vSphere Essentials
1
System Center
Essentials2
vSphere Essentials
Plus1
System Center
Essentials Plus3
Price* $495 $412 $3,495 $1,339
Cost Difference 1.2x more ← 2.6x more ←
vSMP Support 4-way 4-way 4-way 4-way
Physical Memory 256GB 1TB 256GB 1TB
Physical Processors
2 8 2 8
Cores Per Processor
6 No limit 6 No limit
System Update Yes (Host/OS Only)
Yes (Host/OS Apps)
Yes (Host/OS Only)
Yes (Host/OS Apps)
HA / Clustering Yes (VM only)
Yes (Servers, PCs,
VMs, Apps)
Live Migration Yes Yes
Backup / Recovery Yes Yes
In-guest Monitoring
Yes Yes
DRS / PRO Yes Yes
OS Deployment Yes Yes
SW Deployment Yes Yes
HW / SW Deployment
Yes Yes* All prices are based on three servers, two processors, with management server costs, and no operating system costs.1 – VMware does not break out software from server management license cost in its SMB bundles2 – Server software = $100, Server Management License for three years = $100 x 33 – SCE Plus includes System Center Data Protection Manager 2010. Server Software = $100. Server Management License for three years = $400 x 3
Lower TCO Compared to VMware
Free Hyper-V with more Features
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Microsoft a leader in x86 Server Virtualization Infrastructure
Gartner, Inc. (www.gartner.com), an independent technology research and advisory company, published a report titled Gartner Magic Quadrant for X86 Server Virtualization Infrastructure* by analyst Tom Bittman on June 30, 2011 and named Microsoft as a Leader in this category.
The report also cited Microsoft’s success in this category among midmarket customers, noting its “strength of solution and price for midsize enterprises.”
*The Magic Quadrant is copyrighted 2011 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the "Leaders" quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
21
My customers are looking for me to provide long term manageability of their IT infrastructure. Microsoft and its virtualization and management technologies get me there.
Jamison West Founder & CEO
Arterian
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22
Your Opportunities Beyond Virtualization
Upgrade & Virtualization
Managed Services
Application Migration Services
Upsell & Cross-Sell
Opportunities
Reusable IP
TODAY: Drive immediate opportunitiesTOMORROW: Differentiate via value
23
Path To Greater Client Relationships
Significant server (and PC) upgrade opportunity
today.
Virtualize customer’s infrastructure – it’s built-in!
Perfect opportunity to upgrade
to SQL Server 2008 R2
SharePoint 2010 is changing the way people collaborate
Dynamics is optimized for Microsoft virtualization
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Path To Success
Plan EnableCreate
Demand Sell Deploy
Show customers how virtualization can address business challenges.
Get up to speed on how Windows Server Hyper-V and System Center Essentials can drive value.
Take advantage of the huge upgrade opportunity through marketing and sales outreach.
Use tools like MAP to help customers see the potential value of virtualization.
Virtualization and better management open the door to bigger opportunities.
• Work prospect lists
• Target good offers
• Get training• Practice selling
• Targeted campaigns
• Run local events
• MAP Assessments
• Use case studies
• Use Microsoft support
• Ask for case study
• Windows Server Comparison Site• System Center Essentials Tech Ce
nter
• Windows Server Learning Paths• System Center Essentials Learning
Paths• Technical Presentation to SCE
• Microsoft Mid-Market Server Upgrade & Virtualization Campaign
• Microsoft Pinpoint Marketplace
• Microsoft Mid-Market Server Upgrade & Virtualization Campaign
• Microsoft Assessment and Planning (MAP) Toolkit
• Microsoft Deployment Toolkit (MDT)
• Security Compliance Manager (SCM)
Complete list of resources at http://partner.microsoft.com/serverupgrade
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Some Questions
How do you envision the Microsoft Virtualization and Systems Management competencies playing a role in your business?
How do you currently assess customer upgrade and virtualization opportunities?
Would you be interested in working with us to develop a plan to kick-start a Microsoft Virtualization Practice in your organization?
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Better Together
• Built in Hyper-V virtualization
• Convenient virtualization rights
• Built-in high availability
Cost Effective Platform for Growth!
• Built in Virtual Machine Manager
• Simplified, single console
• New licensing offer for mid-sized companies
Physical & Virtual Management!
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Benefits Of Migrating From Windows Server 2000 & 2003
Simplified Management
Better NetworkingIncreased
Efficiencies• Best Practice Analyzer
keeps all your server configurations in up to date
• Updated Backup utility allows for more granular backup jobs
• Built-in virtualization makes it easy to consolidate workloads
• 64-bit Operating System provides higher performance
• Lower WAN costs via an easy-to-configure and easy-to-maintain caching solution
• BranchCache caches files at branch to reduce WAN utilization
• Secure remote access sessions via DirectAccess
• Hardened kernel reduces attack surface
• Core Parking sets processor cores into sleep mode when under-utilized
• Administrators can design power policies to ‘throttle-down’ servers during off-hours
• Decade of Support - Windows Server 2008 R2 is fully supported
• Vibrant 64-bit ISV community gives great future options
Windows Server 2000 is END of LIFE and Windows Server 2003 is at END of SUPPORT (7/2010)
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HP Virtualization Smart Bundles With Hyper-V
HP ProLiant G6/G7 Server
Windows Server 2008 R2 with Hyper-V
HP Storage and Networking
HP Insight with System Center Essentials 2010
Decreased Cost + Simplified IT
End-to-end Virtualization & High Availability
One Console to Manage Physical & Virtual
EnvironmentsThe first end-to-end virtualized environment that delivers application high
availability without external shared storage
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