Cloud spend is growing rapidly Worldwide spending on

Cloud spend is growing rapidly Worldwide spending on public cloud computing will increase from $67 B in 2015 to $162 B in 2020 As spend increases, more customers need to: à Optimize infrastructure and workloads in the cloud à Improve budgeting and forecasting à Reduce costs while scaling workloads in the cloud IDC Future. Scape: Worldwide Cloud 2016 Predictions; Mastering the Raw Material of Digital Transformation

There are many ways to save with Azure Price Match Commitment Innovative Products and Services Cost and Governance Compelling Offers Take price out of the equation on commodity services Low priority VMs B Series VMs Archival Storage Azure Cost Management Azure Advisor Azure Hybrid Benefit License Mobility Visual Studio Subscriptions Azure Free Account

Introducing Azure Reserved VM Instances COMING SOON à Reserve virtual machines in advance à Select 1 - or 3 -year terms with significant benefits à Coming by end of 2017 Significant cost savings up to 82%* over pay-as-you-go models Budget predictability and prioritized compute capacity Flexibility to modify reservations and simplicity of purchase *When combined with Azure Hybrid Benefit

More cloud, less cost Save up to 72% over pay-as-you-go pricing 3 -year discount vs. pay-as-you-go *Based on M series three-year RI

Save 42% Save 46% Save 65% 1 -year term Ev 3 Series Dv 2 Series Typical savings with RI Save 62% 1 -year term 3 -year term Save 37%-38% Save 42% F Series 60%-61% 1 -year term 3 -year term Base VM pay-as-you-go price M Series Save Azure RI price Save 72% 1 -year term 3 -year term

Azure Hybrid Benefit for Windows Server Pay for just base compute costs by using your existing Windows Server licenses with Software Assurance Apply licenses to Azure for use with Azure Reserved VM Instances Maximize value from current investments Available for both pay-as-you-go and Azure Reserved VM Instances

Most cost-effective cloud for Windows Server Save 40% with Azure Hybrid Benefit for Windows Server Save up to 82%* with the Azure Hybrid Benefit combined with RI 40% discount vs. pay-as-you-go 82% 3 -year discount vs. pay-as-you-go Pay-as-you-go Azure Hybrid Benefit RI + Azure Hybrid Benefit *Based on Dv 2 three-year RI with Azure Hybrid Benefit

Save 42% Save 46% Save 65% 1 -year term Ev 3 Series Dv 2 Series Typical savings with RI Save 62% 1 -year term 3 -year term Save 37%-38% Save 42% F Series 60%-61% 1 -year term 3 -year term Base VM pay-as-you-go price M Series Save Azure RI price Save 72% 1 -year term 3 -year term

Save 65% 1 -year term Save 74%-82% Ev 3 Series Dv 2 Series Typical savings with RI + Azure Hybrid Benefit Save 67%-68% 1 -year term 3 -year term Save 73%-77% 3 -year term F Series Save 56%-66% 1 -year term Save 68%-78% 3 -year term Base VM pay-as-you-go price M Series Save 58% Save 80% 1 -year term Azure RI + Azure Hybrid Benefit price 3 -year term

Improved budgeting and prioritized capacity Improve budgeting and forecasting with a single up-front payment for 1 - or 3 -year terms Plan, implement, and execute against desired workloads with prioritized capacity Assign Azure Reserved VM Instances to enrollment or subscription and change after purchase

Prioritized capacity across global Azure regions West Europe UK South North Europe US Gov Lowa Central US West US 2 West US US Gov Arizona North Central US Korea Central UK West AVAILABLE IN EA AND ON AZURE. COM Canada Central France Central US Do. D East Korea South China North France South There will be some country restrictions for Azure. com. China purchases East Germany Central Germany Northeast West Central US West India Japan East Japan West INITIAL ROLL-OUT WILL COVER PUBLIC REGIONS US Gov Texas East US East Asia Central India East US 2 South India US Gov, Germany, and China regions to. Southeast follow Asia US Gov Virginia Brazil South NEWLY ANNOUNCED: France: France Central and France South Africa: South Africa North and South Africa West Australia Central 1, Central 2 South Africa North South Africa West Australia Southeast Australia Central 1 Australia Central 2 Australia East

Flexible reservation assignment Azure Enrollment Subscription A Subscription B Subscription C HR Department IT Department Finance Department Assign RI benefit at enrollment level OR Assign RI benefit at subscription level Easily change assignment post purchase

Simplicity meets flexibility Purchase with ease—select only region, VM size, and term Use existing Monetary Commitment to purchase reservations Exchange or cancel reservations at any time

VM Usage WS Approach Ongoing RI Charges Inventory E 2 v 3 US West WS VM Azure Hybrid Benefit Base US VM West hourly. VM rate E 2 v 3 $0 E 2 v 3 US West WS VM Hourly WS VM E 2 v 3 UShourly West rate VM WS percore charge E 2 v 3 US West VM Non. Windows VM Base US VM West hourly. VM rate E 2 v 3 $0 D 4 v 3 US West VM Non. Windows VM Base VM hourly rate

Easy purchase experience Select: à Region à VM Size and Quantity à Term Integrated into the Azure poral experience

Azure Monetary Commitment $ Use Monetary Commitment to purchase RIs Your RI is effective for 12 or 36 months Annual Term Coming later this calendar year: New Monetary Commitment purchases can span entire agreement term (up to 3 years) with the EA Pre-pay option!

Exchange at any time EXCHANGE Exchange Azure RIs as your project needs change Receive a prorated refund based on unused amount which applies fully to new purchase price

Cancel at any time if you find you no longer need the compute capacity you purchased … Receive a prorated refund based on unused amount minus early termination fee

Azure RI differentiation Feature AWS Most cost effective* for Windows Server Simple purchase experience Complex purchase experience Assign reservation to an enrollment or subscription Limited to billing account level Exchange reservations for another in a different region or series Convertible RIs available at a higher cost, three-year only, region-specific and have to be purchased up front Cancel reservations for a pro-rated refund at any time Sell reservations in a secondary marketplace *On eligible VMs that support RI with Azure Hybrid Benefit Azure

Why Azure RIs? Enjoy the most cost effective* Windows Server workloads among all public cloud providers Exchange or cancel your Azure RIs at any time Simplify selections—reduce complexity and make purchase decisions with higher confidence and lower risk Get the compute resources you need—when and where you need it *On eligible VMs that support RI with Azure Hybrid Benefit

Total Economic Impact™ of Azure Iaa. S + Paa. S Microsoft Azure helps you save money with Iaa. S and Paa. S: Networking Microsoft Azure Iaa. S Microsoft Azure Paa. S ROI: 435% ROI: 466% NPV: $22. 4 M NPV: $55. 9 M On-premise/hosted/ outsourced infrastructure and compute to Iaa. S Application development and deployment on Paa. S Storage Servers Visualization O/S Middleware Runtime Data Applications 73% Reduction in data center footprint and costs 80% 83% Reduction in IT outsourcing costs 50% Up to 63% increase in annual customer web sales Improvement in IT application management time Improvement in time per customer solution deployment 15% Improvement in project or transaction revenue Source: The Total Economic Impact of Microsoft Azure Infrastructure As A Service (Iaa. S), June 2017. Values of costs and benefits are representative of a composite organization aggregated based on interviews with six Microsoft Azure Iaa. S Customers. The full study can be found at http: //www. microsoft. com/azure.

Learn More Go to the Azure RI web page and sign -up for updates Active your Azure Hybrid Benefit Choose Azure for your Windows Server workloads Estimate your monthly bill with the pricing calculator

https: //myignite. microsoft. com/evaluations https: //aka. ms/ignite. mobileapp

Scenario: Customer running a D 3 v 2 Windows VM in US West 2 Total: $6, 018 Total: $2, 006 D 3 v 2 Linux VM (US West 2) Total: $1, 082 On-demand instance running 24 x 7 x 365 1 -year Reserved VM Instance D 3 v 2 Linux VM (US West 2) Total: $2, 124 64% SAVINGS D 3 v 2 Reserved VM (US West 2) 46% SAVINGS D 3 v 2 Reserved VM (US West 2) On-demand instance running 24 x 7 for 36 months 3 -year Reserved VM Instance

Total: $391, 752 Total: $153, 373 60% SAVINGS M 64 ms Windows (US East 2) Windows Server 64 -core M 64 ms Reserved VM (US East 2) On-demand instance running 24 x 7 for 36 months 3 -year Reserved VM Instance with Windows Subscription Total: $78, 171 $77, 368 $76, 005 80% SAVINGS AHUB* $2, 166 M 64 ms Reserved VM (US East 2) $76, 005 3 -year Reserved VM Instance with AHUB

Scenario: Customer running a D 3 v 2 Windows VM in US West 2 24 x 7 x 365 Total: $4, 301 Total: $2, 694 37% SAVINGS D 3 v 2 Windows VM (US West 2) Windows Server 4 -core** D 3 v 2 Reserved VM (US West 2) On-demand instance running 24 x 7 x 365 1 -year Reserved VM Instance with Windows Subscription in Azure $1, 612 $1, 082 Total: $1, 127 73% SAVINGS AHUB* $45 D 3 v 2 Reserved VM (US West 2) $1, 082 1 -year Reserved VM Instance + AHUB*

Other cloud providers – decision making VM Config Term Post purchase flexibility (affects discount) Regional benefit Availability zones Upfront payment (affects discount) Final purchase options for Reserved VM Instance

B (coming soon) D Dv 2 Dv 3 Ev 3 Fv 1 Fv 2 (coming soon) H Lv 1 N M