This document summarizes why customers are embracing cloud services from Microsoft. It provides key benefits like reducing costs through predictable pay-per-use subscriptions and focusing on core business rather than IT. Survey results show top benefits are eliminating in-house maintenance and faster deployment. Microsoft's approach is to extend existing enterprise software to the cloud at large scale while also developing new innovative cloud-based services. They invest heavily in innovation to drive technology and businesses forward with choices between on-premises and cloud-based solutions.

1. Microsoft Cloud Services

2. Why Customers are Embracing the Cloud Reduce CAPEX & OPEX Latest Versions with No Server Upgrades Predictable & Pay per Use Subscriptions Choice, Flexibility, & Resource Agility Merger, Acquisition & Divestitures Focus on Market Differentiation Energy Efficiency Up and Running Quickly “By 2012, 20% of businesses will own no IT assets.” Gartner, Gartner Highlights Key Predictions for IT Organizations and Users in 2010 and Beyond, January, 2010 Survey of 318 customers on satisfaction with SaaS noted “top 3 pros were no in-house maintenance(57%), shorter rollout(49%), usable anywhere via internet(46%).” Burton Group, “Gartner and Burton Group SaaS Surveys: Same High-Level Findings, Different Conclusions.” Craig Roth July, 2009.

3. Why Customers Are Embracing the Cloud

4. Cloud ComputingThe Microsoft Approach Extend our enterprise software that runs core functions for business today to the cloud at internet scale Develop innovative new services that expand the way end users, developers, and consumers can access and utilize the information they need, when they need it “By 2012, 40% of enterprises will adopt a blend of cloud- and premises-based approaches to meet their UC needs” Predicts 2010: Video, Cloud and UC Services Loom Large in Enterprise Communications Bob Hafner, Bern Elliot et al/Gartner December 3, 2009

5. The Microsoft Difference Microsoft invests heavily in innovations to drive technology & business further. Broadinnovation On-premises, off-premises, or both based on business need. Consistent, connected experiences across devices. Powerof choice Enterprise-class services with no compromises to availability, reliability, security or privacy. Enterprise class services Thousands of companies around the world provide software, services, and support Partnerecosystem

6. Microsoft Cloud Services Customer Cloud Public Cloud Communication Collaboration Business Apps Storage & DB AD/Live ID Identity Active Directory Dynamic Infrastructure Toolkit Platform

7. Social & Professional Interactions Opportunities, Responsibilities Learn, Decide & Take Action New business models and revenue streams Security and privacy Regulation and compliance Improving the user experiences Advances in machine learning Insight and action Bringing experiences together New ways to collaborate Use technology the way you choose Cloud to Server, Server to Cloud Smarter Devices Consistent programming model Unified management Spans customer, partner, Microsoft clouds Powerful device with Windows New form factors Software drives the experience Broad Cloud Innovation

8. More Microsoft Cloud Customers

10. Strong Microsoft Global & Local Partnerspinpoint.microsoft.com

11. © 2010 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.