END OFLICENSE

Windows Server 2012/R2 OverviewDecember 31st, 2017

Agenda

Understanding the

opportunity

Win with Windows

Server 2016

Next steps

Understanding the opportunity

What is End

of License?

Partner

Strategies

Engagement

Opportunities

After December 31st, 2017

Windows Server 2012/R2 can no longer be

ordered.

Protect revenue

Get your partners trained on the benefits of

upgrading to Windows Server 2016

Hardware and services

Replace aging servers; migrate others

ODR End of License Next Steps

Distributers may continue to distribute

product already in channel (ROK or

Preinstall) after December 31st, 2017 until

inventory runs out.

Preserve your reputation

As a trusted advisor, be prepared by

knowing and offering the most modern

solution

Virtualization

Consolidate and virtualize servers

Will Microsoft still support Windows Server 2012/R2?

Microsoft will continue mainstream support until October 9, 2018.

Create a win/win

For you and your customer with a modern server.

Client Access License

Upgrading your customers to Windows

Server 2016 will also require that their

CALs are upgraded

Windows Server 2012/R2 End of License

Sell the benefits of a modern server

Three steps to build your business

Maximize the

revenue opportunity

with Datacenter

Win with

Windows Server 2016

Add value through services and cloud

acceleration

Win with Windows Server 2016

1 Hype Cycle for Small and Midsize Businesses, Gartner 2014

SMB IT organizations can position themselves for

success with strategic and tactical use of cloud

infrastructure services.

- Gartner1

There are other solutions out there that can deliver a lot of the features and functionality that are in Windows Server 2016, but none of them are really all-in-one products, and absolutely none of them are close to the price point.

Kenny LoweHead of Emerging Technologies, brightsolid

Ready For

The CloudWhether moving to the cloud now or in

the future, Microsoft technologies gives

you the best of both worlds, so you can

take advantage of external resources

when it makes sense for your business.

Safeguard Your Business

Microsoft technologies have protections

built-in to help: safeguard data across

devices and apps onsite or in the cloud,

recover from business disruptions, and

make compliance easier.

Improve IT Efficiency &

ProductivityHelp deliver increased efficiency and

maximize your IT investment, Microsoft’s

technology gives you the business tools of

a much larger company, at the right price.

Just in Time & Just Enough Administration

Windows Defender for malware protection

Trusted/Secure boot

Shielded Virtual Machines

Host Guardian Services

Enhanced Containers

Stretch Clusters

Rolling Cluster OS upgrades

Storage Spaces Direct

Storage Replica

Storage Quality of Service

Remote Desktop Services

Encrypted Virtual Machines and Containers

Azure Backup, Azure Storage, Azure Site Recovery1

Azure Active Directory1

RSMT Azure Remote Server Management Tools1

Operations Manager Suite1

Top reasons

customersbuy Datacenter edition

Top Reasons

to sellDatacenter edition

#1 flexible

Enables economies of scale. Run an unlimited number of

virtual instances on up to two processors.

#1 flexible

Provides an infrastructure that grows with the business and

enables customer to add virtual instances as needs change.

#2 grows with you

Buy only the user or device CALs you need now and add

more as you scale in the future.

#2 profitable

Offers more opportunities to extend your reach into your

customers’ businesses.

Windows Server 2016A completely virtualized platforms for SMBs

Top Reason to sell Virtualization services, solutions, and containers

Help your customers virtualize to get the most of their

investment, whether your customer has two servers or a

room full.

Windows Server 2016 includes support for virtualization

and containers at no extra cost

Sell more Virtual Machine licenses

Upsell storage capacity either in local hardware or value-

add services such as Azure Storage

Cross-sell additional managed IT service offerings

SMB Benefits

“Businesses today may use only a fraction of their server capacity”

Datacenter only storage features Datacenter only security features Datacenter only networking features

Storage Spaces Direct, enables building highly

available (HA) storage systems with inexpensive

local storage

SMB Benefits

Help manage storage costs by using a broader range of storage options

Simplifies deployment and management through existing tools

Shielded Virtual Machines are protected against

unauthorized access using various technologies

such as encryption of their virtual disks and extend

even to Hyper-V administrators

SMB Benefits

Improved admin security and access managed to

applications and data (especially high

security/regulated businesses)

Offers significant overall security enhancements

made across multiple components (including

Hyper-V)

Software Defined Networking Infrastructure

(Network Controller, Software Load Balancer, and

Multi-tenant Gateway) providing agility, dynamic

security, and hybrid flexibility by enforcing network

policy in the Hyper-V Virtual Switch using the

Azure Virtual Filtering Platform (VFP) Switch

Extension

SMB Benefits

Clear and concise policy management, cutting the

time spent on infrastructure.

Storage Replica: block-level, synchronous

replication between servers or clusters

SMB BenefitsPotential reduction of licensing costs or hardware purchases for specialized storage solutions

Helps reduce downtime, and increase reliability of business data

For highly scaled, virtualized and software defined workload environments. Maximum flexibility to handle today’s on-premise and tomorrow’s planned cloud needs.

Windows Server 2016 Datacenter edition specific features:

Unlimited Windows Server containers

Unlimited VMs

Unlimited Hyper-V containers

Storage features including: Storage

Replica & Storage Spaces Direct

New Networking Stack

Shielded VMs and Host Guardian

Service

2 VMs

2 Hyper-V containers2

Essentials Edition

25 users / 50 devices

No server CALs required

1 physical or virtual1

Must be root of domain

Workgroup / Standard

Procs 1 / 2

RAM 32GB / 12TB

SMB links 250 / Unlimited

Max Users 50 / Unlimited

Disk number 6 / Unlimited

Enterprise class technology to drive any sized business

Unlimited, based on CALsUnlimited, based on CALs Workgroup Standard

Procs 1 2

RAM 32GB 12TB

SMB links 32GB Unlimited

Max Users 50 Unlimited

Disk number 6 Unlimited

Value-added Services• Automated Monitoring,

Alerting & Logging

• Pre-Configured

• Additional managed IT

service offerings

• Application migration

services

• Server infrastructure

migration services

• Virtualization

deployment services

• Cloud acceleration

services

Storage & Networking• Network attach storage (NAS)• Storage Area Network (SAN)• Direct Attach Storage (DAS)• Routers & Switches

Server Applications• Exchange

• SQL Server

• Sharepoint

• Quickbooks

• Microsoft Office

Windows Server OS and CALs

Windows Server Hardware

Owning the server transaction gains a strategic foothold with customers that enables additional sales opportunities

Part

ner

Reven

ue

$$ $ $$

Next Steps

Application migration services

Server infrastructure migration services

Virtualization deployment services

Add value through services and the cloud

Build services to grow your business

Start selling Windows Server 2016 attached with or preinstalled on new hardware

Ready your business to sell, deploy, migrate, and develop for Windows Server 2016

Create new repeatable service offerings around virtualization, mobility, and cloud

Don’t forget to attach CALs. CALs are required for any device or user that will access the server

Appendix

Technology Trends in SMB Create Growth Opportunities

1 IFC.org2 2013 AMI survey3 AMI Partners, AMI’s 2H14 Global Model, 2015

Businesses worldwide with <250 employees1

SMB Market Size

WW IT spend by SMBs in 20152

SMB Market Spend

WW SMB spending on server virtualization is

projected to grow3

SMB Virtualization

The rapidly changing world of business demands a new style of IT

Customer satisfaction

Operational /

Cost efficiency

Managing risk

Employee

productivity

Business Goals

Accelerating shift to

cloud services

Increasing mobility &

bring your own

devices trends

Expanding quantity of data

Market Trends

Growing demand for

business analytics

Optimize IT budgets

Deliver on security &

compliance

expectations

Improve IT agility

IT Needs

Mitigate IT staff & skill

resources constraints

52% of small businesses in the US have

no server1

Lack of a shared network makes it more costly to manage security, data backup, and content sharing

Rising pressures on doing more with less requires IT to be more cost-effective and productive

A changing business landscape demands a more flexible and efficient IT infrastructure

17% annual growth of WW SMB spending

on server virtualization2

78% of SMBs in the US with being using

cloud services within 4 years3

et

Windows Server 2016 Version ComparisonsKey Features for OEMs

22

Windows Server

2012

Windows Server

2012 R2

Windows Server

2016*

Identity, Access &

Security

Active Directory Services

Dynamic Access Control

Just Enough Admin/Just in Time

Windows Defender Built-in

Virtualization

Hyper-V clustering

Hyper-V Replica

Shielded virtual machines

Host Guardian Services (for Virtual Machines)

Windows Containers

Virtual Desktop Infrastructure

Storage

Shared VHDX

Storage Quality of Service (QoS)

Storage Spaces Direct and Storage Replica

Enhanced Clusters (Site Aware Clusters, Rolling OS upgrades)

Management &

Automation

Multi-server management

Windows PowerShell Enhancements

Windows Server 2016 is Designed to fit Your Business

Ready For The Cloud

Improve IT Efficiency & Productivity

Safeguard Your Business

Safeguard Your Business

Get the latest anti-malware and anti-virus

with built-in Windows Defender

Reduce access risks using Just Enough &

Just in Time administration

Secure Windows Server environment from

malware and tampering using Secure Boot

Protect sensitive data and files regardless

of location with Shielded Virtual Machines

$3.79 Million is the average cost of a data breach,

an increase of 23% over the past two years1

Improve IT Efficiency & Productivity

Improve server efficiency and reduce cost

using virtual machines and containers

Increase uptime and availability with built-in

disaster recovery with enhanced clusters and

replication

Improve Remote Desktop Services with

enhanced performance and graphic support

Enhance data resiliency and reduce storage

costs with expanded capabilities in Storage

Spaces Direct

“60% of companies By 2018 will rely on highly

instrumented datacenters that use advanced automation to boost efficiency.”1

Be Ready for theCloudImprove infrastructure agility through workload

mobility using virtual machines and containers

Build scalable storage capacity with easy to use

Azure Storage Services1

Enhance data resiliency and reduce storage costs

with Azure Backup and Azure Site Recovery1

Reduce user identity & security management

complexity using Azure AD and Microsoft Intune1

Simplify management of on-premises and cloud

server infrastructure with Azure Remote Server

Management1

“most businesses intend to be hybrid, with a weighted average of

64% private and 36% public”2

Window Server 2016 LicensingLicensing cores based on consumption

New computing models enable greater

mobility of data and apps between on-

premises and cloud

Moving to Core Licensing model establishes a

“common currency” for computing resources

on-premises or in the cloud

Aligns to the evolution of hardware technology

shift to core density not processor density

Licensing based on physical cores

Physical server

Processor

Core

To be compliant all physical cores must be licensed

Minimum 8 cores/processor

1

2Minimum 16 cores/server

1

2

3

Every time all the cores are licensed on the physical server you are granted 2 VMs1

Physical server fully licensed

Relicense all cores = 2 VMs

Relicense all cores = 2 VMs

All cores licensed = 2 VMs

Customer wants 2 more VMs

Customer wants 1 more VM

(Assume price of WS2012 R2 Standard for 2 proc is $600)

Hyper V containers will be treated similar to VMs

ProcCores/

Proc

# of Cores to

be licensed for

2 VMs

1 2 16

2 4 16

4 2 32

4 4 32

4 8 32

Price to get

2VMs in

WS2016

$600

$600

$1,200

$1,200

$1,200

# of Cores to

be licensed for

4 VMs

32

32

64

64

64

# of Cores to

be licensed for

4 VMs

$1,200

$1,200

$2,400

$2,400

$2,400

Price for 4VM

in WS2012R2

$1,200

$1,200

$1,200

$1,200

$1,200

Price to get

2VMs in

WS2012R2

$600

$600

$1,200

$1,200

$1,200

4 10 40 $1,500 80 $3,000 $1,200$1,200

Higher scaler & virtualization density – consider Datacenter edition

Comparing Cost of Licensing ModelsAddressing pricing concerns of the new licensing model

Adding Windows Server 2016 CALs to the sale can help:

• Boost your sales revenues by adding the CAL cost to

your deals which increase deal size

• Improve customer satisfaction by knowing they are

compliant for any users / clients / devices licenses

Best practice for sellers:

• CALs must be purchased separately and are not part of

the Windows Server 2016 license

• CALs should be sold with Windows Server 2016 at the

point of purchase

CALs are cost-effective and scalable

CALs are required for users or devices that have direct access to the server

Note: Remote Desktop Services requires a Windows Server CAL and an RDS CAL for each user/device.

CALs are no longer part of the Windows Server 2016 license. They must be purchased separately

Customers need to buy Windows Server CALs for users or devices that access the server

CALs are used in conjunction with Microsoft server software licenses to allow users and devices to access and utilize the services of that server software

No CAL is needed for unauthenticated access through the Internet

Device and user CALs, as well as Remote Desktop Services (RDS) devices and user CALs, can be used on the same server

CALs are version-specific and may be used to access the corresponding version of Windows Server or any previous version. Software Assurance maybe purchase for CALs1

1

Microsoft partners are earning services margins of 45-65%

- Forrester

0%

10%

20%

30%

40%

50%

60%

70%

1 2 3 4

Average margins

45-65%

16-23%

5-12%5-12%

Indicates a range

Differentiates your business from competitors

Strengthens your role as a

trusted advisor.

Builds recurring revenue streams.

Can be replicated across

customer scenarios.

Source: The Total Economic Impact™ of Microsoft Server 2012 and Microsoft Office 365 – A Partner Business Case Overview, Forrester

Consulting, June 2014.

SMBs are ready for hybrid cloud

Offer hybrid solutions, combining the best

of server and cloud.

Move to annuity-based models enabled

by cloud services.

Add new high-margin services.

Migration to cloud(% of WW ICT Spend Migrating Into The Cloud)

11,30%

12,30%

13,40%

14,70%

15,90%

17,20%

18,70%

1 2 3 4 5 6 7

#1 cloud benefitImproved business agilitywas cited by 75% of SMBs as

deciding factor in choosing

SaaS.

#1 hardware priorityConsolidating IT

infrastructure via

virtualization was cited by

61% of SMBs as a top priority

over the next 12 months.

Capitalize on changes already underway

© 2016 Microsoft Corporation. All rights reserved.