The Continuum

On-Premises Servers
Bring your own machines, connectivity, software, etc. Complete control Complete responsibility Static capabilities Upfront capital costs for the infrastructure

Hosted Servers
Renting machines, connectivity, software Less control Fewer responsibilities Lower capital costs More flexible Pay for fixed capacity, even if idle

Cloud Platform
Shared, multi-tenant infrastructure Virtualized & dynamic Scalable & available Abstracted from the infrastructure Higher-level services Pay as you go

How We Should View the Cloud

On Premises CapEx Own Self Big

Location Payment

Off Premises OpEx Lease/Rent Third Party Smaller

Cloud

On-Premise

Ownership
Management Capital

Why Cloud ?

Addressing your usage patterns

Innovation and development

New service

Marketing campaign

Retail seasonality (back to school)

Cloud Impact
NEW ECONOMICS REDUCED MANAGEMENT INCREASED PRODUCTIVITY

Pay for what you use Lower and predictable costs Shift from capex and opex Accelerate speed to value

No patching, maintenance Faster deployment Robust multi-layered security Reliability and fault-tolerance

Latest software for users Internet collaboration Anywhere access Instant self-provisioning

2 billion unique calls per year 23 million subscribers 14 billion ads per month Over 6 million songs in the catalog Over 600 million unique users

Over 3 billion WW queries each month

370 million active accounts

500 million active Windows Live IDs

10 billion messages processed daily

Instant messaging

* Access from mobile devices depends on carrier network quality and availability.

* Access from mobile devices depends on carrier network quality and availability.

* Access from mobile devices depends on carrier network quality and availability

* Access from mobile devices depends on carrier network quality and availability

* Access from mobile devices depends on carrier network quality and availability

"Coca-Cola Enterprises needed to simplify its communication and collaboration technologies to provide better business value to our employees. Microsoft Online gave us the technology to do so and exceeded our expectations." John Key, Assistant Director of Communication and Collaboration Technologies, Coca-Cola Enterprises

With the successful rollout of Microsoft Online Services to our North American stores, we have demonstrated that we can go into the cloud with confidence.

User response has been overwhelmingly positive. Our employees are thrilled to have a modern, familiar email program, which makes them more efficient and productive.

John Shepard Director, Global IT Infrastructure Services, Starbucks

Mike Strause IT Architect, Global Shared Services, Godiva Chocolatier

 >15 years in consumer and business services 9.9 billion messages a day via Windows Live Messenger 1 petabyte+ per month of updates via Windows Update Windows Azure: used by customers in 41 countries

$2.3B+ in cloud infrastructure 200+ services, delivered 24x7 Geo-distributed data centers

Federated operations centers 24x7 Highly secure, compliant infrastructure FISMA certified, SAS 70/SSAE 16, and ISO 27001 compliant Carbon footprint reduction 99.9% uptime, financially backed SLAs

Rapid modular model

30,000+ engineers involved in cloud-based activities 2,000+ people in cloud infrastructure engineering and operations

Office Web Apps: 50M users

A risk-based, multi-dimensional approach to help safeguard services and data

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