Driving Growth through InnovationDoug HaugerChief Operating OfficerMicrosoft India

Key Topics Opportunities on Windows Vista Opportunities on 2007 Office System Sell up the software stack Great technology innovation coming

up this year Be focused on Software and Service Specific areas for building skills and

readiness for your teams

FYO7 Driving Impact with Windows Vista and the

2007 Office System

Business Value LaunchGeneral Availability Launch

India Launch Results

3,300 Attendees

Results delivered!

1200+ marketing generated sales opportunities

7 cities, 75,000 exposures, 376 PR Stories

Great consumer marketing generated buzz and delivered results!

71% awareness 68% intent to purchase48% Windows Vista adoption in Premium SKU’s

Thank You

Windows Vista Momentum

Windows Vista is Ready 2.05M devices supported; 96% of all

devices 50,000+ drivers 2000+ Works-with-Windows Vista &

Certified-for-Windows-Vista applications

Datacards – Reliance, Airtel, Hutch, Tata Indicom supported

Windows Vista is Secure

Source: Jeff Jones Security Blog• Windows Vista is Reliable – Support calls 21% lower than XP– Great early feedback – Infosys expects to

save $82 per PC by deploying Windows Vista

• Customers are deploying Vista– 90 million copies sold worldwide – 600,000+ VL licenses in India – Infosys (4500), TCS (2750), L&T (2250),

Ranbaxy, Tata Motors (1000+)– Thousands of MM customers running

Windows Vista

Increased SA value

Subscription access only Within Software Assurance

Available only throughSoftware Assurance

For all Customers

“We believe the Implementation of desktop virtualization through Microsoft SoftGrid will reduce the spend on infrastructure facilities by 50%, saving us $3500 per agent per year” Syed Rizwan, DGM IT, Siemens Information Processing Services

WGA & Legalization WGA and Software

Protection Platform (SPP) Every copy of Windows

Vista requires Activation Many features and benefits

available only to genuine users after validation

Current Piracy Situation

China Russia India Brazil50%

60%

70%

80%

90%

100% 2004-2006 BRIC Piracy Rates

Pira

cy R

ate

India’s piracy rate dropped 3 pts in the last 3 years• Emerging markets in Asia-Pacific, Latin America, Eastern Europe, and the Middle East and Africa accounted for one -third of PC shipments, but only 10% of spending on PC software. • $1,275,000,000 in loses in India alone. Huge rise in losses due to software piracy due to growing market.

Source: 2006 IDC Piracy Study

Enterprise Segment

35%

Public Sector 75%

Communications Sector

75%

Mid Market 50%

Small Business 90%

Consumer 95%

India By Segment

Partner Call To ActionDo’s: Capitalize on National “Value of Original” Campaign

$20M + FPP Sales Opportunity by driving demand for Original Software Capitalize on WGA OGA sales opportunity $75M+ opportunity generated by Software Asset Management (SAM) Help protect your business. Report piracy of Microsoft products:

piracy@microsoft.com

Know the facts. Counterfeit software can put your customers at risk Learn about the types of Piracy Learn about new Legalization options available to help customers who want

to: “Get-Original”

Sell Original Software

Partner Call To ActionLearn More:Comprehensive Original Site: http://www.microsoft.com/india/originalsoftware/How-To-Tell:  http://www.microsoft.com/howtotell

Validate Genuine Windows & Office: http://www.microsoft.com/genuine

Channel Piracy Protection: http://www.microsoft.com/piracy/partners

Reporting Software Piracy www.microsoft.com/piracy/reporting

Understand the Risks of Counterfeit/Pirated Software:1. There’s Nothing Like the Real Thing: Genuine Software is a Win Win for Customers,

Microsoft and PartnersYankee Group - November 2006http://www.microsoft.com/piracy/default.mspx

2. The Risks of Obtaining and Using Pirated Software IDC, October 2006http://www.microsoft.com/india/originalsoftware

Windows VistaPartner Opportunity

Sell Win Vista , MDOP

$80M Opportunity

•Upgrade – target 3M XP Pro installed base•SA & MDOP Attach

Deployment & Support Services$40M Opportunity

•Windows Vista deployments•MDOP deployments•Windows Vista support

Legalize $15M opportunity

•Legalization sku – Get Genuine Solution / Get Genuine Kit

Call to Action •Get your sales teams skilled in articulating the value of Windows Vista Enterprise & MDOP•Position your technical folks to take advantage of the services opportunity around Windows Vista •Go after the legalization opportunity generated by WGA and the new Software Protection Platform

2007 Office System Launch

“…it's become much clearer that SharePoint will be the one must have product released this year for any Microsoft-centric business.”

“Office 2007 is one of the most ambitious and innovative releases to come from Microsoft in years…

Partner Momentum5,300 IW competent partners

2,200 SharePoint partners in the IW Competency

20,000 trained on Exchange 2007

3,600 partners enrolled in Quickstart for Microsoft Search

1,200 partner solutions on 2007

BusinessIntelligence

UnifiedCommunications

Enterprise Content

ManagementSearch Collaboration

Office Business Application Services

Secure And Well-Managed Core Infrastructure

Partner Opportunity Across BPI

Office Solutions

Development

Enterprise Project

Management

Office Deployment

Unified Communications Search ECM & Forms

Data Visualization

Performance Management

Portals & Collaboration

Partner Opportunity with IW Expand your Professional Services business

Desktop Deployment Planning Services Expand Your Transactional Business

Capture Missed Revenue with Office Ready PCs

Expand Your Solutions Business Develop Office Business Applications

Office Business Applications On-Ramp Program – www.obacentral.com

The Innovation ContinuesProducts launching in the fall

Complete and integrated performance management

Software-powered VoIP for streamlined communications

The ConnectedBusiness

Consolidation vs. Innovation

Sage: 10%

Microsoft 18%

R&D investment % of revenue

Driving innovation

What is in it for Customers & Partners?

“What these ‘collector’ companies do is buy vendors that have a mature product with a big installed base and collect the maintenance revenue”

Source: Nigel Rayner, - Gartner, July 2006

“They’ll keep the product lines going for as long as they can, making just enough R&D investment to stay in the market”

PRMSInterBizData3AcaciaAskBaanCodaMarcamMXPInfinium

E-PiphanyBonivaArzoonEXEIronsideBPCSFrontsepMaincorePivotPoint

Thru-PutInforMerciaSwanSCT AdageFygirLillyAperumFactsTakeStock

DMASBrainNxTrendDimasysDaly. commerceFormationIncoDevGeacJBA

RuntimeRatioPlanStreamlineManagement DataExtensitySun SystemsComshareDatastream…

AbraAccpacSBTActAdonixBest/MAS 500Best MAS 90/200Business Vision

Business WorksFASPeachtreePlatinum (PFW)SaleslogixSimplyAccountingTetraTimberline

KHK Office-lineCiele!MAS line 50MAS Line 100Grupo SPSoftline

SymphoniaLine BOBMasterbuilderPC-Kaufman…

Infor

Sage

“ERP innovation is back. And it's being led by a couple of industry giants: SAP and Microsoft.”

Paul Hamerman, June 8, 2007

Innovations driving Competitive Advantage

Office Business ApplicationsRole TailoredMicrosoft Dynamics Client for Office and SharePoint

Software + ServicesFinance Community“Certified For” - logo

People + Processes Company+ EcosystemBusiness Vision +Software

Sure StepSharePoint WorkflowsRealWorld SOA

2008 Launch WaveJoint launch in Q3, staggered product release scheduleKey themes: Virtualization, Web, EnterpriseLargest IT Pro, Developer, and Partner outreach in history

Events, Online, Community, Influencers

Virtualization

Web

Security

Enterprise Data Platform

Beyond Relational

Dynamic Development

Pervasive Insight

Rich Web Platform

Rich Client PlatformDeveloper

ProductivityTeam Collaboration

Support Latest Platforms

The 2008 Launch WaveJoseph LandesDirector of Marketing; Launch ManagerMicrosoft Corporation

Thank You For A Great Year!

Solid Sales Through Partners…

Steady growth for Windows Server (Volume Licensing)

Significant growth for Windows Advanced Server

Double-digit growth for SQL Server (Standard + Enterprise)

0

2,000,000

4,000,000

6,000,000

8,000,000 State of the BusinessServer Hardware New Units Shipment

Server and Tools is an $11B Business for Microsoft Numbers are projected for 2007 and beyond

IDC, Worldwide and Regional Server 2007–2011 Forecast: April 2007, Doc #206466, Apr 2007

Others

Security! Security!Scenario-focused Integrated innovationCompatibilityHeterogeneous interoperabilityEnabling broad industry ecosystem and volume economicsBest of breed functionality for all server workloads

Key Development Tenets

Server Functions

Operational Infrastructure

Solutions

Application Platform

Information Worker Infrastructure

Management

Workloads

Storage (file, portal)PrintEmail Collaboration

Application/Web ServerUnix integration servicesDatabaseHigh Performance Computing

Software DistributionVirtualizationOperations Management

General Purpose & EnterpriseMedium BusinessSmall Business

NetworkingRemote AccessSecurityIdentity ManagementTerminal Server

Server Workloads Focus

Hardware Inflection

Points

VirtualizationMulticore

64-Bit Power

Key Product Messaging

Web

Solid Foundation for Your Business Workloads

VirtualizationIIS7

Windows Media ServicesWindows Server

VirtualizationPresentation Virtualization

Server Core New Network StackServer Manager Power EfficiencyWindows PowerShell Next Generation Networking

SecurityBitLocker™

Drive EncryptionRead-Only

Domain ControllerNetwork Access Protection

How this Launch Will be Different Customers telling the story of our products

Make “community engagement” a core tenet of the launch

Generate BIG buzz and awareness online via Microsoft online properties & viral activities

Make the 2008 Launch Wave a Celebration of Partners

Empower our joint sales, marketing, and technical resources in a bigger way than ever

Create ample opportunity for IT Pros/Developers to get deeply trained and knowledgeable about products & partner solutions

Biggest-Ever IT Pro, Developer, and Partner Outreach

Advertising Campaign in 31 countries

300 Microsoft-led Events targeting 225K Attendees

Local Distributor-Led Events

Biggest-ever Online and Community Integration

Accelerating Deployments Generating breadth of customer references

through early adopter programs Global and Local RDP

Partner-Led Deployments build long lasting skills in the market

Looking for “Hero” stories across the world

We need your Help!

30

Promoting Evaluation

TechNet / MSDN • Distributed through Subscriber Downloads

Corporate Preview Program •Distributed to key customers by US and WW BMOs

Customer Preview Program •Distributed on microsoft.com with CARE integration

Launch Events •Distributed to customers attending local events

Other Events •Distributed at key events (e.g. WinHEC, TechEd)

Virtual Labs •Online evaluation of product through lab scenarios

Magazine Preview Program •Distributed to WW publishers to attach to local magazines

User Groups •Distributed to Culminus WW network of user groups

31

4.0 million

Trial and E

valuation

Driving Readiness Together Will embark on a massive readiness wave

12,000 Microsoft Certified Trainers 45,000 deeply trained partners Activating the Microsoft CPLS machine

Deep TechNet and MSDN integration TechNet Flash—2M biweekly distribution MSDN—1M biweekly distribution Microsoft Certification

Leveraging Partner Reach Comprehensive sales training for partners Road Shows & Vendor Events

32

Plug into Launch Marketing and

Readiness Activities

Download and get hands on with the

products

Plan for Launch in your Business and

Marketing Plans

Get Trained!

Now is the Time to Get Ready!

Delivering Integrated Value

Passionate About Standards• Cross-browser web apps

Designed for Design• Vector graphics &

drawing tools

Art meets Science• Mix & match design with

media

Improved productivity• Easier data access

Target latest platforms• Office, Vista & Web

Work Collaboratively• Design, develop and

test

Developer Designer

Designers & Developers Speak the Same Language

Cross Platform

Cross Browser

Media Experiences

.NET

Plug-In

RIA

Microsoft Silverlight

Silverlight

Janakiram MSVProduct ManagerDPE

The complete creative toolbox for web, graphic and UI designers

The professional Web

design tool

The professional Interactive design tool

The professional Graphic

design tool

The professionalAsset Management

tool

Studio

2008 Wave: Your Business Oppty Incredible Growth Opportunity

VSTS is a $ 3Bn market opportunity for MS 100Mn Service Opportunity for Partners Large installed base migrating from MSDN MS India Tools Biz growing at > 80% Y-O-Y

Business Value Reduce Risk, Increase Profitability Improve Organisational Productivity Minimise cost of Defects, Improve Software quality

Partner Opportunities POC & Installation services Process Design / Improvement Software quality implementation Migration Integration

$0 M

$500 M

$1,000 M

$1,500 M

$2,000 M

$2,500 M

$3,000 M

$3,500 M

$4,000 M

$4,500 M

2006 2007 2008 2009

PRB CAMPAIGNS

PEOPLE +

MICROSOFT SOFTWARE

=BUSINESS RESULTS

OSI CAMPAIGNS

ORIGINAL SOFTWARE =

BUSINESS STANDARD=

BUSINESS RESULTS

FY08 CampaignsCustomer Campaigns

DEPTH (BIG IT)Build Customer ConnectionsEnable Your Mobile WorkforceImprove ComplianceDrive PerformanceDrive Real World Business Optimize and Secure your core infraApplications Platform OptimizationOptimize your Business Productivity Infra

Relationship Marketing

Product Campaigns (Examples)

WindowsServer 2008

Reliability for the Next Generation IT

Microsoft Unified

Communi-cation

Software-based enterpriseVoIP solution to maximize existing infrastructure

Microsoft Forefront

Security products thatmake it easier to stay aheadof security challenges

WindowsMobile

Be better equipped tostay on top of my work

Perception Shift

Product Campaign

BREADTH (SOME IT)Security and ReliabilityCustomer Acquisition and RetentionBusiness ProductivityBusiness Solutions

NO ITConsumer Preference Campaign

Advertising

Perception Change Campaigns

OSI Campaign

PRB

Exte

nsio

n

Call to Action Continue to drive Vista adoption and

deployment MDOP Sell 2007 Office System and drive adoption

through Office Business Applications – building apps best solution direcorty

Prepare your teams for Windows Server 2008, SQL Server 2008 and Visual Studio 2008 launch – RDP

Provide us feedback on how we can continue supporting and enabling your success

S+S not only software