Engage Your Customers On Infrastructure Optimization To Create

Engage Your Customers On Infrastructure Optimization To Create New Sales Opportunities Tim Rowe Infrastructure Optimization Lead timrowe@microsoft. com

Transforming Infrastructure, Making IT Matter 70% of IT budgets are spent maintaining what we have Speed is a major business differentiator in a connected world We need to harness the power of technology to improve IT infrastructure agility, cost, and quality of service IT infrastructure must empower users in a people ready business

Enterprise IT Challenges Growth Customer service Regulatory compliance Device management Varying skill sets Mobility PC maintenance Server sprawl Legacy platforms Deployment and maintenance Identity management Software updates Malicious attacks, viruses, spam, etc. Evolving threats Patch management, VPN, etc. Secure access (employees, partners and customers)

Meeting The Challenge: Infrastructure Optimization Application Platform Infrastructure Optimization Model Business Productivity Infrastructure Optimization Model Core Infrastructure Optimization Model Technology sequencing framework Maps IT to business needs Cost reduction, security & efficiency gains Backed by analysts Guidance and best practices Discovery process uncovers opportunities 5

Evolution Of Microsoft’s Business Imperatives FY 07 People Ready Business and Customer Campaigns Build Customer Connections Find, Use and Share Information Enable Your Mobile workforce Improve Compliance Drive Business Performance Drive Real World Business Processed Learnings Evolve to Customer Campaigns: Six campaigns target business decision makers and focus on driving business growth. FY 06 GTMS Infrastructure Optimization Initiative Learnings FY 05 GTMS Three campaigns target IT decision makers and focus on reducing cost and infrastructure complexity and risk through infrastructure optimization: • Core Infrastructure • Business Productivity Infrastructure • Application Platform Infrastructure Desktop Deployment Initiative 6

Linking IT to Business Performance Information technology fuels profitable revenue growth Companies in the top 25% of IT capability grew revenue 6. 8% faster per year than their peers in the bottom 25% of IT capability Firms with better IT have more productive employees The firms in the top 25% of IT capability enjoy 23% higher revenue per employee than their peers in the bottom 25% of IT capability Robust IT infrastructure is a key driver of productivity and growth Isolating the impact of all IT functions on productivity shows that IT Infrastructure is a key determinant of superior productivity Information technology gives managers more insight and control Managers in firms that are supported by better information systems have significantly better insight into, and control over, key dimensions of their business Source: Enterprise IT Capabilities and Business Performance, Marco Iansiti, David Sarnoff Professor of Business Administration, Harvard Business School George Favaloro, Principal, Keystone Strategy, Inc-March 2006

Why Leaders Reap Benefits from Architecture-driven IT Infrastructure Investments Lower IT Operating Costs Giga: implementing Enterprise Architecture [yields] 20% savings in annual IT operating budget Gartner: Architecture can provide savings of 10% to 20% of infrastructure costs Giga: penalty of 10% of project cost and 25% of project elapsed time with non-standard technology architecture Strategic Agility Gartner: Enterprise IT Architecture gives 30% improvement in ability to deal with changing external drivers MIT: Correlated top performers with high capability IT infrastructure and standards Increased Productivity Forrester: 40% productivity gap between leaders and laggards in IT investment

Infrastructure Optimization Improves IT Efficiency PCs managed per IT FTE 700 600 500 400 300 200 100 0 PCs Managed / FTE 76 - 130 Cost / PC $774 -$1, 320 172 $580 Note: Wide variability in IT labor/PC for basic customers due to lack of manageability Source: GCR data analyzed by Microsoft; IDC data, 2006 442 $230 Profiled Organization

Why Partners? Scale http: //directory. microsoft. com/mprd/ Capacity Expertise MSPP Competencies Core Infrastructure: • Information Work Solutions • Networking & Advanced Infrastructure • Security Solutions Business Productivity Infrastructure: • Information Work Solutions • Networking & Advanced Infrastructure • Data Management Solutions • Application Platform Infrastructure: • Custom Development Solutions • Business Process and Integration • Data Management Solutions • ISV Solutions

Partner Opportunity Deployment services Worldwide Market Desktop Deployment $150 B $143 B $179 B $160 B $33 B $28 B $23 B $83 B $100 B $78 B $81 B Substantial growth in desktop services over the next three years fueled by Windows Vista and 2007 Microsoft Office system Windows and applications deployment growing fast ® $50 B $42 B $52 B CY 04 CY 06 $63 B 0 Windows OS/Apps What does this mean? PC Hardware CY 08 Desktop Services Source: IDC (“Assessing The Partner Opportunity For Deploying Microsoft Windows XP And Office 2003” January 2005) Your customers will be looking for help

What Does $33 Billion Mean In Your Accounts? Basic (outdated) infrastructures are challenging The world has changed Malicious activities and viruses Widespread access to information Increased mobile needs Super high costs, unreliable, un-secured Basic infrastructures are everywhere Your customers are dealing with this daily Customers may or may not know they are in this situation – that is your opportunity Partner Deployment Opportunity Ideal timing Y 2 k refresh is 6 -7 years old New desktop focus in the next year (2007 Office system, Windows Vista) Customers will have their own incentives and timing to move Deployment: Lower risk for customers and more lucrative for partners Desktop Deployment Planning Services Tools updates – BDD Accelerator, ORK Early training on 2007 Office system and Windows Vista Continued alignment with core zero-touch Deployment = Great partner opportunity

Growing Enterprise Business Through IO “IO has been a positive force in engaging with enterprise customers and a great roadmap to follow in migrating them to the next infrastructure maturity level with our joint Citrix-Microsoft solutions” - Garry Olah Alliance VP, Citrix Corporate Development "The combination of INS' long standing security practice, credentials, expertise, and focus on business enabling security solutions with Microsoft's Infrastructure Optimization Maturity Model represents a unique dynamic that will continue to strengthen our partnership alliance and greatly benefits our combined clientele. We see this as a clear win-win proposition for everyone. " - Jim Tiller, CSO International Network Services Inc "Getronics delivers Infrastructure Optimization (IO) solutions, such as RDX, that help our clients automate desktop & server migration and deployment. With RDX, our clients save substantial time and money when migrating their environments from legacy operating platforms to a rationalized and dynamic state of the art technology and maturity. This has opened the door to other optimization projects for Getronics and our pipeline continues to grow as a by-product of IO". - Brad Gleason Global Service Director, Technology Transformation Services Avanade has embraced the Microsoft IO framework in our solutions approach and will use it as a basis to help customers address their IT infrastructure to keep their business moving forward. " - Larry Le. Sueur, Vice President, Technology Infrastructure Solutions

Core Infrastructure Optimization Cost Center Uncoordinated, manual Infrastructure Knowledge not captured More Efficient Cost Center Managed IT Infrastructure with limited automation and knowledge capture Business Enabler Managed and consolidated IT Infrastructure with extensive Automation, knowledge captured and reused Strategic Asset Fully automated management, dynamic resource Usage , business linked SLA’s. Knowledge capture automated and use automated

Core Infrastructure Optimization Model Identity and Access Management Desktop, Server and Device Management Security and Networking Data Protection and Recovery IT Management & Security Process CROSS-MODEL ENABLERS Identity Presence Rights Mgmt Microsoft Confidential Network Access 18

Business Productivity Infrastructure Optimization Cost Center More Efficient Cost Center Uncoordinated, manual Infrastructure. Mostly shadow IT IT standards in place, but limited management and governance of usage. Shadow IT still exists Business Enabler Strategic Asset Business-linked Fully managed SLAs. User and provisioned IT infrastructure to empowerment with IT in control meet business - to meet the needs. No demands for a shadow IT people-ready business

Communication & Collaboration Document & Records Management Web Content Management Forms Management Search Business Intelligence Collaborative Workspaces & Portals Messaging IM/Voice Web Conferencing Enterprise Content Management Business Productivity Infrastructure Optimization Model Performance Management Reporting &Analysis Data Warehousing CROSS-MODEL ENABLERS Messaging Portals Microsoft Confidential Search Forms 20

Application Platform Infrastructure Optimization Cost Center More Efficient Cost Center Business Enabler Strategic Asset Brittle, unconnected applications and platforms Standardsbased, flexible business applications Adaptive application platform driving core applications and business processes Fully serviceoriented, dynamic application platform

Application Platform Infrastructure Optimization Model User Experience Data Management SOA and Business Process Development Business Intelligence Microsoft Confidential Client Technologies Designer Custom LOB – Data Infrastructure ISV LOB – Data Infrastructure Relational Data Warehouse Arch/Dev Methodology Integration Process B 2 B Development Platform SDLC Custom Applications Data Warehousing Reporting & Analysis Performance Management 22

Building The Infrastructure For A People-Ready Business 23

Core IO: Recommended Execution Process Step 1: Discovery Step 2: Opportunity Identification Relevance Deeper Relationships Customer Satisfaction Step 4: Project Definition & Execution • Services • Infrastructure Revenue potential • Priorities • Resource Allocation • Account Strategy Step 3: Customer Briefing • Consistent, relevant messaging based on account maturity • Clear partner message & opportunity • Illustrating MS Value • Customer satisfaction

Field Execution Process STEP 1: ATS conducts discovery Infrastructure Optimization Models STEP 4: ATU – Account plan agreed to with Customer STEP 5: Opportunities created in Siebel and handed off to Specialists… AP – SSP AP BP – SSP IW Core Infra – ATS MS Opportunities STEP 2: ATU analyzes discovery results and identifies potential opportunities Internal Discussion/ MS View STEP 3: ATU reviews list of opportunities with Customer Discussion/View Relationship Management/Account Planning …or directly to Partners or Partners MCS or MCS Partner/MCS Opportunity Leverage EPG Ecosystem Opportunity Management/MSSP

Microsoft IO Framework Example – Determining Optimization Roadmap Security and Networking Identity & Access Mgmt Desktop, Device and Server Management Data Protection and Recovery IT and Security Process Anti-virus on desktops Centralized firewall Basic networking Secure remote access Policy- managed firewall on server and desktop Fully automated IT management and mitigation Quarantine solution Identity management for user identification Central configuration and authentication Information protection infrastructure Centralized administration Federated identity management No desktop standards, many images, no management standards Automated patch management Standard desktop images Mission critical server monitoring Mobile device provisioning Automated software distribution and asset management Application compatibility solution Layered image strategy Secure mobile device provisioning Capacity analysis solution Application push to mobile devices Fully automated IT management No formal procedures in place Mission critical server backup/recovery Back-up/restore on all servers Fully automated IT management Ad-hoc Lack of standard security policies Reactive, stable IT Formal security policies defined Proactive, accountable Defense-in-depth policy for Web server security Fail safes for attacks are in place Proactive Optimizing cost and quality Efficient Web server security All security processes & policies in place No standards No common identity management model

Microsoft IO Framework Example – Plot of Current Optimization State Security and Networking Identity & Access Mgmt Desktop, Device and Server Management Data Protection and Recovery IT and Security Process Anti-virus on desktops Centralized firewall Basic networking Secure remote access Policy- managed firewall on server and desktop Fully automated IT management and mitigation Quarantine solution Identity management for user identification Central configuration and authentication Information protection infrastructure Centralized administration Federated identity management No desktop standards, many images, no management standards Automated patch management Standard desktop images Mission critical server monitoring Mobile device provisioning Automated software distribution and asset management Application compatibility solution Layered image strategy Secure mobile device provisioning Capacity analysis solution Application push to mobile devices Fully automated IT management No formal procedures in place Mission critical server backup/recovery Back-up/restore on all servers Fully automated IT management Ad-hoc Lack of standard security policies Reactive, stable IT Formal security policies defined Proactive, accountable Defense-in-depth policy for Web server security Fail safes for attacks are in place Proactive Optimizing cost and quality Efficient Web server security All security processes & policies in place No standards No common identity management model

Microsoft IO framework Example – Plot of Future Optimization State Security and Networking Identity & Access Mgmt Desktop, Device and Server Management Data Protection and Recovery IT and Security Process Anti-virus on desktops Centralized firewall Basic networking Secure remote access Policy- managed firewall on server and desktop Fully automated IT management and mitigation Quarantine solution Identity management for user identification Central configuration and authentication Information protection infrastructure Centralized administration Federated identity management No desktop standards, many images, no management standards Automated patch management Standard desktop images Mission critical server monitoring Mobile device provisioning Automated software distribution and asset management Application compatibility solution Layered image strategy Secure mobile device provisioning Capacity analysis solution Application push to mobile devices Fully automated IT management No formal procedures in place Mission critical server backup/recovery Back-up/restore on all servers Fully automated IT management Ad-hoc Lack of standard security policies Reactive, stable IT Formal security policies defined Proactive, accountable Defense-in-depth policy for Web server security Fail safes for attacks are in place Proactive Optimizing cost and quality Efficient Web server security All security processes & policies in place No standards No common identity management model

How To Get Going With IO Version 1. 0 Identity & Access Management Security & Network Monitoring Desktop Lifecycle Data Protection & Recovery Security Manageable Messaging • • • Organizations run effective, centralized IT depts. IT systems remain complex, incompatible, expensive and run as standalone operations Basic automation is provided by centralized IT, pockets or automated services exist at business units 29

Moving From Standardized To Rationalized Secure Manageable Messaging Customer Situation Users cannot remotely access their inbox or calendar and complex and costly remote connections (dial-up, VPN) required for message and calendar access No consistent or secure remote or web-based services. Unsolicited email (SPAM) drops productivity Management of the Messaging Services is difficult and IT personnel lack of tools to analyze and prevent issues. Benefits of Moving to Next Level • Introduce Layered security at both server and client that prevents • • SPAM, malware and virus attacks. Reduce unsolicited junk e-mail messages by filtering inbound messages based on the recipient. Messages that are addressed to users who are not found, or to whom the sender does not have the permissions to send, are rejected. Reduced downtime due to malicious attacks Reduced burden on IT department frees up resources Improved access for remote workers increases productivity of business. Meet business requirements of distributed workforce Improved security and administration results in less downtime and reduce burden on IT resources. Policy provisioning whereby administrators can make supported policies more secure, support for certificate-based authentication, use if S/MME to sign and encrypt mail, and server-based synchronization of Tasks. Integrated Monitoring Capabilities provides an extremely comprehensive view of factors that needs to be taken into consideration to run a healthy Exchange Server 2003 system – resulting in significantly increased availability and to aid in resolving issues detected, the alerts received by the administrator contain knowledge summarizing the condition and enumerating the steps required to investigate and resolve the issue. Recommended Projects for this Level • Deploy Exchange Server 2003 SP 2 for Microsoft Exchange Intelligence Message Filter and Sender ID, which is an industry-standard framework • Deploy Antigen for Exchange • Deploy Exchange Server 2003 Management Pack for Microsoft Operations Manager 2000 SP 1 Possible Activities • Intermediate Presentation on Secure Manageable Messaging • Half-Day Intermediate Workshop on Secure Manageable Messaging • Full Day Intermediate Workshop on Secure Manageable Messaging Other Resources • Understand: How Exchange 2003 Supports Message Security • Download and understand: the Microsoft Exchange Server 2003 Security Hardening Guide Review Microsoft Managed Messaging Services Understand Front. Bridge Services for Exchange Review the Front. Bridge Technology Overview Understand the Antigen family of products for Exchange Review the Exchange Service Management Architecture Understand the Microsoft Operations Manager 2005 SLA Scorecard Exchange • Understand the ISA Server 2004+Exchange Server Frequently Asked Questions • • • 30

What Are The Opportunities? Core Infrastructure Optimization Worldwide Account Profiling Distribution Rationalized Dynamic 2% 1% Standardized 34% Basic 63% Source: MS EPG Profiling as of May 22 nd 2006 - 7, 989 accounts profiled (All Subsidiaries including US)

Results Of FY 06 Account Discovery: Core Infrastructure Optimization Backup Solution All Servers 47% Secure Network Connection 13% Percentage indicates achieving capability Standard Images 58% Monitoring Servers 35% Basic Networking Services 80% VPN or Terminal Svcs 54% 86% Manual Reference 41% Firewall Desktop & Servers 23% Backup Solution Critical Servers 76% Manual App Comp 41% Monitoring Desktop 9% Quarantine 7% Antivirus Desktops 85% Automated Tracking HW & SW 38% Automated App Comp 15% Capacity Analyzer 7% Automated Patch Mgmt Solution 55% Win XP with SP 2 44% Patch Mgmt Servers 37% Automated Reference 13% Active Directory 72% Group Policies 57% Central Provisioning 19% Directory Federation 21% Central Firewall Basic Standardized Backup Servers & Desktops Secure Wireless 17% 12% Rationalized Secure Domain Isolation 14% Dynamic Source: MS EPG Profiling: 8, 685 accounts as of 6/30/2006 (It includes US sub) 33

IO Readiness Microsoft Account Teams, Specialists, and Partner Teams/PAMs Partners Primer: IO Essentials Required On-line Launch Sept June 2007 Launch Aug 1 Winning with IO Academy Business Value: Winning with IO Recommended Live Sessions and Facilitated Courses Recommended 1 Day Workshop Launch Aug 15 Launch throughout H 1 1 Day Workshop Launch Sept June 2007 Depth 200 -400 Level Courses: IO In-Depth Recommended On-line. Launch Oct 1 June 2007 Launch Nov 1 June 2007

Introducing The Infrastructure Optimization Partner Kit – http: //www. microsoftio. com • Microsoft and Partners download the kit to learn more about IO • Use Infrastructure Optimization as a sales tool to grow your business and optimize customers’ infrastructure • Work with the Field Rep (BDM/PAM) to gain insight into IO opportunities with Microsoft 35

Office Deployment Business Market Opportunity Office Deployment Market Opportunity is approx $33 B with 300 M customers using Office Customer opportunity to partners is through Desktop Deployment Planning Services (DDPS) program Information Work Competency Simplified entry to the Office Deployment Specialization (IW competent DDPS partners automatically qualify; DDPS certified partners qualify when they achieve IW competency) Specialization provides additional business value: deployment content including case studies, scenarios and customer evidence Partner Value Coupled with Infrastructure Optimization, partners can identify customer pains and develop an effective account plan resulting in productivity gains DDPS gives partners revenue today – and, customer connection for ongoing services

Windows Vista: Enabling Infrastructure Optimization Windows Vista Advancements Standard Images User Account Control Group Policy Secure Networking Windows Vista Firewall Windows Vista will save the average Microsoft customer $15/PC Network Access Protection Secure Wireless Management Tool integration Unified Health Model Backup Desktops By implementing SMS and changing to a "Thin" strategy, organizations can save an additional $18/PC 12

Windows Vista: What Is Available To You Today Marketing Readiness New Online Partner Marketing Readiness Courses Windows Vista Deployment Partner Training Courses New Windows Vista Partner Portal (Enterprise and Midsize Solution Provider) Whitepapers, Case Studies Windows Vista Whitepapers, Case Studies Technical Readiness Windows Vista Beta 2 BDD V 3, ACT V 5 ADDP Windows Vista TAP NEW! Windows Desktop Deployment Specialization NEW MSPP Specialization, Windows Vista deployment, under Advanced Infrastructure Competency Early “Opt In” process for partners in Q 2 -Q 3 FY 07, enrollment begins in Q 4 FY 07 Unique engagement opportunity for deployment partners after Windows Vista launch

Call to Action Become a top IO Partner – align your business & sales with IO Identify your MSPP Gold/Certified Partner competency by model Document your Partner solution offering by capability, by model Execute PSPs with your Microsoft rep Identify where your customers are in the IO Model (use profiling questions) Identify highest impact options and prioritize projects by economic return Quantify individual Best Practices Perform TCO Studies or ROI analysis Build a plan that maps to the customer’s business and their IT priorities Work with your Microsoft rep to engage on IO opportunities, drive joint pipeline activities, and Microsoft campaign offers Develop your own IO pipeline for your customers and grow your business through IO! Enablement Leverage the July 2006 Infrastructure Optimization Partner Kit http: //www. microsoftio. com Customers should visit www. microsoft. com/io for profiling assistance

Questions? Key Contacts ¢Tim Rowe timrowe@microsoft. com Infrastructure Optimization Lead, Australia ¢Lisa J Downey lisadown@microsoft. com Global Partner Development Manager ¢Ed Anderson edander@microsoft. com Core Infrastructure Optimization ¢Prashant Ketkar pketkar@microsoft. com Business Productivity Infrastructure Optimization ¢Nick Abbott nickabbo@microsoft. com Application Platform Infrastructure Optimization ¢Kay Warren kaywarren@microsoft. com IW Desktop Deployment Program Manager ¢Tom Yoritaka tomyor@microsoft. com Windows Client

© 2006 Microsoft Corporation. All rights reserved. Microsoft, 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.