Microsoft Cloud Midsize Customer - Partner Discussion Guide PURPOSE This discussion guide aims to help partners engage with midsize customers (25-250 PCs) to effectively position Microsoft as the right choice to simplify IT, save money, and support growth through a modern server infrastructure and virtualization. CUSTOMER TARGETS 25-250 Windows PCs and 5-50 Windows Servers 1-5 IT “generalists” running company IT May have considerable legacy software and systems. Processes and procedures not clearly defined. May have some IT policies, but only at a high level. Likely to have some budget for IT. Many are guarded about allowing outside vendors to access their systems due to trust and complexity. PRODUCTS Microsoft products for mid-size companies are Windows® Server 2008 R2 with Hyper-VTM virtualization technology and System Center Essentials 2010, an IT management solution. BUSINESS BACKGROUND Over the past five years, many mid-sized companies (25-250 PCs) were required to make do with aging systems, infrastructure, and processes. As the economy improves, business executives seek strategies to simplify IT, save money, and grow the business. They also need to migrate away from old technologies; enhance IT infrastructure; and control IT costs. Per Microsoft study, nearly 72% of mid-sized companies run Windows Server 2003, and some run Windows Server 2000. SELLING TO MIDSIZE BUSINESSES Microsoft Elevator Pitch Microsoft and its partners make it easy for midsize companies to simplify IT through a unified virtualization and systems management solution built on the cost-effective and flexible Windows® Server 2008 R2 operating system with Hyper-VTM and System Center Essentials 2010. This combination is designed to help you get the most out of existing resources, ensure secure availability, and reduce the overall complexity of your virtual and physical IT environment so that you can focus on what matters most: growing your business. Our Selling Proposition Use tools like MAP to assess customers’ environments and recommend that they upgrade their aging servers. Built-in virtualization frees up budget to apply to systems management through System Center Essentials or investments like SQL Server, SharePoint, Dynamics, or Windows 7 upgrades. With SCE 2010, customers can manage physical and virtual systems, and configure and manage desktops. Key Differentiators Lower cost of acquisition and ongoing operation Built-in features like virtualization and fault tolerance Optimize physical and virtual infrastructure Simplicity, ease-of-use that reduces deployment and administrative costs Single integrated solution that negates the need for multiple products and manual processes DRIVING THE CONVERSATION In this section, we describe a customer need, the Microsoft answer, benefits specific to the challenge, customer evidence, conversation starting points, and tips on handling objections. Customer Need: Simplify IT Make it easier for my company to simplify the way we manage and benefit from our IT investments so we’re spending less time keeping the lights on and more time advancing the business. The Microsoft answer Microsoft and its partners can provide you with products and services that greatly simplify IT through built-in virtualization, centralized IT management and monitoring, and high availability. Benefits Built-in virtualization allows you to reduce and consolidate the number of physical servers. Free virtualization means more money for other business needs. Centralized IT management and monitoring through System Center Essentials 2010 take the guesswork out of ensuring that your systems are running at their best. Security and high availability are designed into everything we build to ensure your systems are compliant and your business always up and running. Branch office support has never been easier, through new technologies that allow improved management and connectivity to the branch. System Center Essentials 2010. “Previously, someone would come into my office and ask for new servers to support a project. It would take us a week or two to deliver that. But with Hyper-V, I can say, ‘Sure. Give me 20 minutes,’ ” says Josh Howell, TOTE System Administrator. Case Study Conversation starters How many applications and servers do you own? How old on average are they? Do you have remote offices or branches? How do you support those locations? What are you doing with virtualization today? Objection handling Objection: My current solution works fine. Why would I spend more to modernize my IT environment? Response: Excessive and outdated IT infrastructure can be inefficient to run and more expensive to maintain. By modernizing and standardizing your IT infrastructure, you can reduce operational costs and enhance efficiencies, leading to increased business agility, scalability to accommodate business growth, improved employee productivity, and the flexibility to take advantage of the cloud in the future. Objection: Why do I need virtualization? I only have a few servers and they are meeting my needs. Response: With virtualization, you can increase business capacity at a lower cost, reduce energy costs, and have an IT platform that can easily scale as business needs evolve. Virtualization and management solutions allow you to consolidate your desktops and servers and manage everything from a single console. Disaster recovery features reduce time lost to routine IT administrative functions or unanticipated outages. Customer Need: Save Money We’re always looking for ways to save money on IT. Help us identify ways to reduce costs while getting more from our IT investments. The Microsoft answer Microsoft focuses on helping customers reduce IT costs. With recent product advancements and licensing options, we give you more ways to drive down costs without sacrificing performance. Evidence Totem Ocean Trailer (TOTE), a freight and cargo shipping company, deployed Windows® Server 2008 with Hyper-VTM and PAGE 1 Microsoft Cloud Midsize Customer - Partner Discussion Guide Benefits Reduce capital and operating costs through server consolidation, energy efficient hardware, and many built-in features that would cost extra elsewhere. Reduce licensing costs (compared to several competitors) when upgrading and expanding your systems. Improve IT productivity so that you get the most out of your existing resources and can scale and grow your business without having to make big investments in IT. Evidence After trying server virtualization with VMware, the Liverpool Institute for Performing Arts in the United Kingdom moved to a Microsoft virtualization solution and increased overall IT productivity by 100 percent. “It was clear that Microsoft and Hyper-VTM were offering the best value for the money,” says Ben Faulkner, LIPA’s Information Communication Technology Officer. Case Study Conversation starters How confident are you that you are currently utilizing the full potential of your servers? How efficient do you think your IT environment is today? How many people help support IT? How much time do you or they spend managing and maintaining your systems? Objection handling Objection: Why should I use Microsoft solutions for virtualization? Response: Microsoft virtualization can give you a cost-effective, easy-to-manage solution to help drive down the cost of doing business—offering an immediate return on a relatively small investment and extending your current hardware investments. Live migration and clustering are included at no cost. Objection: Why would I choose the more expensive Windows Server 2008 R2 Datacenter Edition over the Standard Edition? Response: Purchasing the Windows Server 2008 R2 Datacenter Edition provides better scalability and the ability to run virtual operating system instances. It also requires less server management, monitoring, and patch management. Customer Need: Grow my Business I want IT to be the catalyst to growing our business. Show me how we can translate our technology investments into real business value. The Microsoft answer Microsoft can help you channel your energy into creating an agile business through innovative new capabilities and an approach designed to simplify technology. Benefits Create an agile business through repeatable processes and reusable IT assets. Be confident about business continuity, knowing that Microsoft products and services are designed to scale and are highly available. Grow your business without the stress of costly, ongoing upgrades or expensive consultants needed to operate or upgrade existing business systems. Evidence Latvia petroleum marketer LUKoil Baltija R had nine aging servers. Windows Server 2008 R2 allowed the company to reduce hardware and software licensing costs, increase system uptime, and decrease data center administration time by 13%. “Server virtualization would allow our existing workloads to be consolidated onto a smaller number of machines, while leaving room for growth,” says Jurijs Vasilevics, CIO at LUKoil Baltija R. Case Study Conversation starters What are your two biggest business priorities? How would you like IT to support your business needs? Have you thought about what the cloud may mean for your business? Objection handling Objection: My company doesn’t currently see a need for these additional management products. How will they benefit us? Response: With System Center Essentials, you can manage all computers and servers in your business from a single console while also benefiting from the latest built-in tools that have been designed to make desktop and server management easier. Objection: We can’t just hire more IT staff to handle. How can I grow while keeping the same resources? Response: This is exactly Microsoft’s strategy to give you the tools you need to allow your existing staff and resources to be more effective – spend less time walking around fixing things and more time supporting new business opportunities. VMWARE COMPETITIVE POSITIONING Strategy The VMware division of EMC delivers management products in: server consolidation and infrastructure optimization; business continuity and disaster recovery; and virtual lab automation. Strengths The market leader in virtualization High customer satisfaction Large installed base of 130,000 enterprise customers, including 100% of Fortune 100 organizations Growing sales presence in the midmarket Major technology and integration partnerships Weaknesses More limited range of system management products than Dell, HP, IBM In practice, VMware is used mainly to virtualize Windows server applications, not Linux or Solaris or other Unix flavors, even though it can virtualize these environments VMware does not have the capability to manage physical environments – even with EMC management products The cloud OS appears to be little more than a positioning exercise, rather than a suite of new products Little/no integration of EMC and VMware sales forces VMware’s Essentials and Essentials Plus cost more than double Microsoft’s SCE 2010 and SCE Plus 2010, respectively. Compete Resource Cost Advantage Compete Site ADDITIONAL RESOURCES Microsoft Virtualization External Site Microsoft Partner Virtualization Opportunities Partner Windows Server Site Partner System Center Essentials Site PAGE 2