tomorrow

Samantha Zammit – HSP Director

Hosting Service Providers

THANK YOU

Cloud at the Center of Our Opportunity

The New Era of Hosting

52%

Grow their business or

realign to new

company strategy

68%

Plan to adopt

hybrid cloud

models

63%

Will use Software

online previously

used on-prem

Customers Cloud Applications

Australian Cloud Opportunity

57% use an

instant

messaging

solution

today

$3.2BN

31%

Source: AMI - Australia Small Business Market Opportunity Assessment 2012 and AMI Cloud Playbook

Hosting Partner Momentum

Partners406+

Partners360+

Partners78+500+

Partners

Outlook for FY14 and Beyond

ISV PLAY

Develop

Partner

Ecosystem

Go Big with

UCWin in IaaS

Emma TomlinBusiness Development ManagerCloud Partnerships

Its all about the App…..

Megatrends – Driving Adoptionkey drivers for cloud based application services

Traditional Office based work

evolving

Flexible working becoming

mainstream across all industries

Workforce becoming

geographically dispersed

Consumer applications driving

a new standard in collaboration

Consumer tools being used in a

business environment

Application adoption being

driven by social networking

Smartphones nearing market

saturdation in developed

markets

Telecommuting becoming

mainstream – 63M will

telecommute by 2016 in USA.

Millenials – 18% of the

workforce today

2025 3 in 4 of the workforce will

be millenials

Millenials driving business

structure and process changes

Australia SMB SaaS Opportunity Breakout

Other SaaS

SaaS

Accounting

SaaS BI

SaaS CRMSaaS Email

SaaS ERP

SaaS HR

SaaS Payroll

SaaS

Productivity

SaaS Project Mgt.$0

$5

$10

$15

$20

$25

$30

$35

$40

$45

10% 15% 20% 25% 30% 35% 40%

SaaS

Mark

et

Valu

e i

n 2

01

0 (

$M

)

5-Year CAGR

SaaS Value & Growth in Australia (2010, 2015)

Note: Bubble

size represents

market value

in 2015

$3.2B

spend on

cloud by

2015

Source: AMI - Australia Small Business Market Opportunity Assessment 2012 and AMI Cloud Playbook

FY13: Celebrating results.

1.3M Net New MAPI Seats

5.6M Install Base

9 Hosters 100K+ seats

Australian Hosted Email Market Overview

Segment PCIB Kiosk

Workers

Total

Opportunity

50 – 250 Employees 4,400,000 1,423,176 7,933,066

250 – 500 Employees 647,000 582,706 1,229,706

>500 1,580,000 1,423,176 7,933,066

Total 6,627,204 5,538,948 12,166,152

Size of the opportunity Commercial SMB Market Breakdown*

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

FY10 H1 FY10 H2 FY11 H1 FY11 H2 FY12 H1 FY 12 H2 FY13 H1 FY13 H2 FY14 H1 Fy14 H2

Google Compete Landscape

Office 365 Hosted Microsoft Combined Google

% PCIB % Total

Opportunity

Office 365 2.6% 1%

Hosted Exchange 3% 2%

MS Combined 5.7% 3%

Google 8% 4%

Partners should differentiate on Value Not Price

Does Office 365 meet

customer needs?

Partner-Hosted

SaaS Cloud

Partner-Hosted ScenariosYes

No

Hosting Channel: Meeting Customer Demand

What customers need What Hosters Provide

Source: Edge Strategies, 2013

Go White-Label

Drive Productivity Suite (Exchange, SharePoint, Lync) with top

managed partners

Identify and manage White-label providers by region to

support unmanaged partners

FY14 Hosted SaaS :Go Big or Go White-Label

Summary

• $3.2BN Cloud Opportunity – Cloud services for SMB’s in Australia by 2015 – cloud is a real revenue opportunity for partners

• Productivity Growth – Almost 35% growth predicted by 2015 on productivity applications

• 1.3 Millions MAPI Exchange Seats – added globally across our service providers

• 12.6M Email Seats – Market Opportunity in Australia for email at SMB to 500+ seats

• Differentiate – partners need to differeniate their offerings from O365 and ensure they don’t focus on price – value is key to scale

• Flexible Solutions – one size doesn’t fit all – Hosting Channel meets customer demand

• Go Big or Go Whitelabel – delivery model should be chosen on scalability, cloud aggregation is key to success unless large scale can be achieved through investment

Philip MeyerPartner Technology Strategist - Hosting

Infrastructure

Hosting Hyper-V Momentum

Designed for Service Providers

Multi-tenancy

Windows Azure pack

Service providerfoundation API

Enterprise scale hypervisor

Networkvirtualization

Linux support

Resource metering

Service templates

RemoteFxover WAN

Break through storage

Resource throttling

Hyper-Vreplica

SQL always-on

In memory

Networkvirtualization

Break through storage

Windows Azure pack

Service templates

Hyper-Vreplica

In memory

Windows Server 2012 Lowers Infrastructure Costs for Hosting

ScalabilityMore scalability per server

• More VMs per server

• 32x increase in virtual disk size per VM

• 2.5X increase to 160 logical processor support

Dynamic Network

• Extensible Switch

• IP mobility

• Security

• New QoS features

Improved Web Server Multi-Tenancy Automated Management

Flexible Storage

Windows Server 2012 Advantage for Hosting Service Providers

Category Resource

Microsoft VMware

AdvantageWindows Server

2008 R2

Windows Server

2012

vSphere 5.0

Enterprise Plus

Scalability/

Performance/

Density

VM

Active VMs per Host 384 1,024 512 Microsoft

Memory per VM 64 GB 1 TB 1 TB -

Virtual Processors per VM 4 32 32 -

ClusterMaximum Nodes 16 64 32 Microsoft

Maximum VMs 1,000 4,000 3,000 Microsoft

Network High performance with SR-IOV No Yes No Microsoft

Storage

Native 4-KB Disk Support No Yes No Microsoft

Maximum Virtual Disk Size 2 TB 64 TB 2 TB Microsoft

Encrypted Cluster Storage No Yes No Microsoft

Secure Multi-tenancy

Open Extensible Switch No Yes No Microsoft

Confirmed Partner Extensions - 4 2 Microsoft

Trunk Mode to Virtual Machines Yes Yes No Microsoft

Resource Metering No Yes Partner Microsoft

Flexible Infrastructure

1GB Simultaneous Live Migrations 1 Unlimited 4 Microsoft

10GB Simultaneous Live Migrations 1 Unlimited 8 Microsoft

Shared Nothing Live Migration No Yes No Microsoft

Network Virtualization No Yes Partner Microsoft

High Availability

Guest OS Application Monitoring Yes Yes Partner Microsoft

Guest Clustering with Live Migration No Yes No Microsoft

Better Margins than VMware, Especially as You Grow

Microsoft is 1/4 the cost of VMware’s RAM-based pricing

$1,248,600

VMware

• Microsoft vs. VMware Annual Costs for a 50 Server Deployment, 2GB per VM with either 2400, 4800 or 7200 2 GB VM instances at maximum capacity

• Comparison Windows Server + System Center for application, OS & HW management running on either Hyper-V or VMware ESX

Better Margins with Microsoft vs. VMware

Hosting Revenue and Margins for a Single VM Rented for 365 Days

Per VM

You can charge, $x,xxx annual revenue(VM with 2GB RAM @ $0.12/hr)

93-96% 81-73%

$x

$y

MS Takes

4-7%of revenue

Microsoft VMware

More

margin

VMware Takes 15-

20%of revenue

$x

Microsoft

VMware

Potential Service Provider Profit

SPLA Core Infrastructure Suite Cost

Potential Service Provider Profit

VMware Service Provider Program (VSPP)

3.0 Premier Cost

• Microsoft vs. VMware Annual Licensing Costs for a single VM rented for 365 days based on a 50 Server Deployment, with 2GB per VM and 2400 VM instances at maximum capacity.

• Comparison Windows Server + System Center for application, OS & HW management running on either Hyper-V or VMware ESX

System Center 2012 Capabilities and ComponentsComprehensive Management Platform

Over 300+

Management Packs

Operations

ManagerOrchestrator

Service Manager

Virtual Machine

Manager

Operations

Manager

Configuration

Manager

Data Protection

Manager

App Controller

Core Infrastructure Suite (CIS) Saves You MoneyOne license for your entire service provider cloud infrastructure

Worker

Role

Web

Sites

VM

RoleSQL

Service

BusCaching

Other

ServicesCDN.

Media,, etc.

Web

SitesVMs

Private Service Provider

Bringing Windows Azure Services on Windows Server

SQL

Shared Cloud Services

Service Bus,etc.

Web SitesAppsVMs

Self-ServicePortal

Service

Plans

UsersService

Admin

Web SitesAppsVMs

Self-ServicePortal

Subscriber Self-ServicePortal

Web Sites

Database

VMs

Apps

SP1 w/ Service Provider Foundation

Web Sites

Databases

VMs Subscriber Self-ServicePortal

Windows Azure

Self Service Portal

Moves On-Premises

Common Mgt. Experience

Cloud-Enabled Services Move On-Premises

Workload Portability

Consistent Dev. Experience

Opportunity with Microsoft

Changing the Game, Join Us

Customer

WindowsAzure

ServiceProvider

CONSISTENT

PLATFORM

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