The document discusses opportunities for hosting providers to move up the value chain by offering cloud services as commodity hosting becomes crowded and margins decrease. It introduces Microsoft's Dynamic Datacenter Toolkit which aims to help hosting providers automate tasks, respond flexibly to business needs, and capitalize on new opportunities in cloud services. The CloudFactory is also introduced as an online proof-of-concept environment provided by Microsoft where hosting providers can test the DDC Toolkit on sample scenarios before implementing in their own datacenters.

1. Partnering for Success With Cloud ServicesThe CloudFactory

3. Commodity services are under heavy price and margin pressure

4. Challenge for hosters: moving up the value chainhttp://cloudcomputing.ulitzer.com/node/1699373 http://www.channelnewsasia.com/stories/singaporebusinessnews/view/1115153/1/.html http://www.itp.net/581757-low-cost-it-to-continue-to-grow-says-gartner

5. Cloud Services Market: growth rate of demand of Cloud Services is expected to increase $58.6 billion in 2009, $148.8 billion by 2014 Worldwide, 2008-2013 (Billions of Dollars) http://www.zdnet.com/blog/hinchcliffe/cloud-computing-and-the-return-of-the-platform-wars/303 Source: Chart created by Microsoft based on Garter data. Gartner Dataquest. Forecast: Public Cloud Services, Worldwide and Regions, Industry Sectors, 2009-2014, ID Number: G00200833 - Publication Date: 2 June 2010

6. Opportunities to move up in the value chain Which business applications are most likely to move to SaaS within the next 12 months (or are already there)? “Over the course of the next five years, enterprises will spend $112 billion cumulatively on software as a service (SaaS), platform as a service (PaaS), and infrastructure as a service (IaaS) combined.” “50% of managed hosters already offer some form of utility computing service and over 40% offer PaaS capabilities” Based to those that have this workload today. N varies by workload 4

9. To accelerate technology adoption

12. Pending publishinghttp://www.microsoft.com/systemcenter/en/us/dynamic-data-centers.aspx 5

14. YoY Operations Costs VMs

16. Complete access to multiple scenarios

17. On a reference architecture of HP

18. Hardware, network and storage

19. From Interxion premises

21. Join The Microsoft DDC Momentum Partnering in the Cloud – CloudFactory for Hosting Providers: Sign up for a virtual PoC today (FREE) by contacting: cloudfactory@microsoft.com 10

23. To reserve a week of online testing, free of chargeGet technical insight and pointers at Hyper-V training or a DDC-TK Bootcamp Build your DDC-TK Cloud Services Offer for new and existing customers

24. © 2011 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.