Microsoft and Loudcloud Form Strategic Alliance Focused on Breakthrough Performance for E-Businesses

REDMOND, Wash., and SUNNYVALE, Calif., June 22, 2000 — Microsoft Corp. and Loudcloud Inc., a leading provider of Internet infrastructure services for eBusinesses, today announced a strategic alliance focused on providing breakthrough performance for Internet businesses. Under this alliance, Loudcloud endorses Microsoft® products and technologies as a preferred platform for Loudcloud’s suite of highly scalable infrastructure services, called Smart Cloud™
services. Likewise, Microsoft endorses Loudcloud’s Smart Cloud services for high-growth Internet businesses. This alliance provides a foundation for eBusinesses to outsource their ongoing infrastructure architecture and management to Loudcloud for increased scalability, performance and reliability.

Under the terms of the agreement, Loudcloud will license Microsoft Windows®
2000 Server and other Microsoft technologies for use in Loudcloud’s Smart Cloud services. Windows 2000 Server provides a well-integrated package containing the application development environment, security and scalability needed to help businesses get more out of existing applications. Companies also can build new and versatile solutions using the most complete set of Internet technologies available. In addition, Loudcloud will receive Microsoft consulting and training resources to assure best practices in technology deployment and accelerate Loudcloud’s ability to offer best-in-class Windows Server-based infrastructure services. Both companies will conduct joint marketing and sales efforts, including referrals of eBusiness and ASP customers running the Windows platform to Loudcloud for the ongoing management of their Windows Server-based back-end operations.

“Microsoft products are key to providing highly scalable and reliable infrastructure services to Loudcloud’s customers,” said Marc Andreessen, chairman of Loudcloud. “Our strategic alliance with Microsoft in combination with our vision of delivering best-of-breed software infrastructure as a service will enable breakthrough performance for our eBusiness customers.”

“We are pleased by Loudcloud’s endorsement of Windows 2000 Server and believe our alliance will play a significant role in enabling new mission-critical services for Loudcloud’s customers,” said Steve Ballmer, president and CEO of Microsoft. “Loudcloud’s experience in providing infrastructure services is invaluable to any eBusiness serious about wanting to succeed in delivering reliable Internet services to their customers.”

Loudcloud’s Smart Cloud services encompass all the necessary hardware, software and operational expertise Internet businesses need to scale and grow. These Smart Cloud services run all components of an Internet business’ application infrastructure, from the physical and network infrastructure through the database and application environments. Because they leverage Loudcloud’s innovative Opsware™
automation technology to streamline mission-critical tasks such as provisioning, managing and monitoring a Web site, they also offer unprecedented levels of scalability, performance and reliability. This unique instant infrastructure approach, using Microsoft products and the Microsoft platform, can help customers bring their Internet business online quickly while providing a 100 percent scheduled uptime guarantee.

“Our business is about running totally scalable, reliable infrastructure for our customers. We’re excited to add support of Windows 2000 since it is cut in that very mold,” said Ben Horowitz, president and CEO of Loudcloud. “This new addition will provide our customers with yet another great option to run more scalable and reliable Internet businesses.”

About Loudcloud

Loudcloud Inc. was formed in September 1999 to provide infrastructure services for eBusinesses. Founded by some of the Internet’s most respected leaders – including Netscape co-founder Marc Andreessen and former Netscape executives Ben Horowitz, Tim Howes and In Sik Rhee — the company’s Smart Cloud services combine a complete suite of software, infrastructure and Web operations services with Opsware automation technology to deliver unprecedented levels of scalability and reliability for Internet businesses. Loudcloud is funded by Benchmark Capital and Morgan Stanley Dean Witter. More information on Loudcloud can be found at .

About Microsoft

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and Internet technologies for personal and business computing. The company offers a wide range of products and services designed to empower people through great software — any time, any place and on any device.

Microsoft and Windows are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries.

Loudcloud, Smart Cloud and Opsware are service marks and trademarks of Loudcloud Inc. All other trademarks appearing in this document are the property of their respective owners.

Note to editors: If you are interested in viewing additional information on Microsoft, please visit the Microsoft Web page at on Microsoft’s corporate information pages.

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