Infrastructure Infrastructure OptimizationOptimization Establishing a Platform for Establishing a Platform for a People_Ready Businessa People_Ready Business

Infrastructure Infrastructure OptimizationOptimization Establishing a Platform for Establishing a Platform for a People_Ready Businessa People_Ready Business

Colin TimmColin TimmDirector, Enterprise GroupDirector, Enterprise GroupMicrosoft AustraliaMicrosoft Australia

Business ResultsBusiness Results& New Value& New Value

End User End User ProductivityProductivity

CustomerCustomerConnectionConnection

Keep BusinessKeep BusinessUp & RunningUp & Running

SecuritySecurityCompetitionCompetition

TechnologyTechnologyChangeChange

RegulatoryRegulatoryComplianceCompliance

CostCostReductionReduction

IT Complexity And CostIT Complexity And Cost

Align IT with the businessAlign IT with the business

IT GoalsIT Goals

Establish a Establish a Responsive Responsive

InfrastructureInfrastructure

Proactively leverageProactively leverageIT investments toIT investments tomeet business needsmeet business needs

Eliminate Eliminate Unnecessary Unnecessary ComplexityComplexity

Manage IT resources Manage IT resources efficiently by eliminating efficiently by eliminating unnecessary redundancy, unnecessary redundancy, reducing manual tasks and reducing manual tasks and lowering costslowering costs

Ensure Your Ensure Your Business Is Business Is

Always RunningAlways Running

Use IT as a trusted Use IT as a trusted partner in meeting partner in meeting business goalsbusiness goals

Move from complexity to efficiency

Solving The ChallengeSolving The ChallengeOptimizing Infrastructure for:Optimizing Infrastructure for:

Infrastructure Optimization for a People-ready Infrastructure Optimization for a People-ready BusinessBusiness Core Infrastructure Optimization ModelCore Infrastructure Optimization Model

Cost Center Cost Center

Uncoordinated, Uncoordinated, manualmanual

InfrastructureInfrastructureKnowledge not Knowledge not

captured captured

More Efficient More Efficient Cost CenterCost Center

Managed IT Managed IT Infrastructure Infrastructure

with limitedwith limited automation and automation and

knowledge captureknowledge capture

Managed and Managed and consolidated ITconsolidated IT InfrastructureInfrastructurewith extensive with extensive

Automation, Automation, knowledge knowledge

captured and re-captured and re-usedused

Fully automated Fully automated management, management,

dynamic resource dynamic resource Usage , business Usage , business

linked SLA’s. linked SLA’s. Knowledge Knowledge

capture capture automated and automated and use automateduse automated

Business Business EnablerEnabler

Strategic Strategic AssetAsset

8

What’s in the InfrastructureWhat’s in the Infrastructurefor a People-Ready Businessfor a People-Ready Business

9Source: MS EPG Profiling:8,685 accounts as of 6/30/2006 (It includes US sub)

72%

55%

85%

76%

86%

80%

58%

57%

44%

38%

41%

41%

54%

35%

13%

47%

GroupPolicies

Win XPwith SP2

Monitoring Servers

Automated Tracking HW & SW

Manual App Comp

Manual Reference

VPN orTerminal Svcs

Secure Network

Connection

BackupSolution All

Servers

19%

37%

15%

9%

23%

12%

17%

Central Provisioning

Patch Mgmt Servers

Automated App Comp

Monitoring Desktop

Firewall Desktop &

Servers

Secure Wireless

Backup Servers & Desktops

21%

13%

7%

7%

14%

Directory Federation

Automated Reference

Capacity Analyzer

Quarantine

Secure Domain Isolation

StandardizedBasic DynamicRationalized

ActiveDirectory

AutomatedPatch Mgmt

Solution

Antivirus Desktops

BackupSolution Critical

Servers

Central Firewall

Basic Networking

Services

Standard Images

Results Of FY06 Account Discovery: Results Of FY06 Account Discovery: Core Infrastructure OptimizationCore Infrastructure Optimization

Percentage indicatesachieving capability

Efficiency of customers todayEfficiency of customers today

Cost Center Cost Center

Uncoordinated, Uncoordinated, manualmanual

infrastructure infrastructure

More efficient More efficient Cost CenterCost Center

Managed IT Managed IT Infrastructure Infrastructure

with limitedwith limited automationautomation

Managed and Managed and consolidated ITconsolidated IT InfrastructureInfrastructurewith maximum with maximum

automationautomation

Fully automated Fully automated management, management,

dynamic resource dynamic resource Usage , business Usage , business

linked SLA’slinked SLA’s

Business Business EnablerEnabler

Strategic Strategic AssetAsset

64%64%

31%31%

3%3% 2%2%

Linking IT to Business PerformanceLinking IT to Business Performance

Isolating the impact of all IT functions on Isolating the impact of all IT functions on productivity shows that IT Infrastructure is a productivity shows that IT Infrastructure is a key determinant of superior productivitykey determinant of superior productivity

Information technology Information technology fuels profitable revenue fuels profitable revenue growthgrowth

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

Companies in the top 25% of IT capability grew Companies in the top 25% of IT capability grew revenue 6.8% faster per year than their peers in revenue 6.8% faster per year than their peers in the bottom 25% of IT capability the bottom 25% of IT capability

Robust IT infrastructure Robust IT infrastructure is a key driver of is a key driver of productivity and growthproductivity and growth

The firms in the top 25% of IT capability enjoy The firms in the top 25% of IT capability enjoy 23% higher revenue per employee than their 23% higher revenue per employee than their peers in the bottom 25% of IT capabilitypeers in the bottom 25% of IT capability

Managers in firms that are supported by better Managers in firms that are supported by better information systems have significantly better information systems have significantly better insight into, and control over, key dimensions of insight into, and control over, key dimensions of their businesstheir business

Information technology Information technology gives managers more gives managers more insight and control insight and control

Firms with better IT Firms with better IT have more productive have more productive employeesemployees

Why Leaders Reap Benefits from Architecture-driven IT Why Leaders Reap Benefits from Architecture-driven IT Infrastructure InvestmentsInfrastructure Investments

Lower IT Operating CostsLower IT Operating CostsGigaGiga: implementing Enterprise Architecture yields 20% savings : implementing Enterprise Architecture yields 20% savings in annual IT operating budgetin annual IT operating budget

GartnerGartner: Architecture can provide savings of 10% to 20% of : Architecture can provide savings of 10% to 20% of infrastructure costsinfrastructure costs

GigaGiga: penalty of 10% of project cost and 25% of project elapsed : penalty of 10% of project cost and 25% of project elapsed time with non-standard technology architecturetime with non-standard technology architecture

Strategic AgilityStrategic AgilityGartnerGartner: Enterprise IT Architecture gives 30% improvement in : Enterprise IT Architecture gives 30% improvement in ability to deal with changing business dynamicsability to deal with changing business dynamics

MITMIT: Correlated top performers with high capability IT : Correlated top performers with high capability IT infrastructure and standardsinfrastructure and standards

Increased Productivity Increased Productivity ForresterForrester: 40% productivity gap between leaders and : 40% productivity gap between leaders and laggards in IT investmentlaggards in IT investment

People intensive nature drives costsPeople intensive nature drives costs

Microsoft Primary Quantitative Research. 400, 30 min phone surveys of IT professionals in data centers with 25 or more serversMicrosoft Primary Quantitative Research. 400, 30 min phone surveys of IT professionals in data centers with 25 or more servers

Over 60% of TCO over a 5 year period driven by Over 60% of TCO over a 5 year period driven by people costs people costs

0%0%

10%10%

20%20%

30%30%

40%40%

50%50%

60%60%

70%70%

Staff CostsStaff Costs DowntimeDowntime TrainingTraining SoftwareSoftware HardwareHardware

Operations – The Manual Reality

Infrastructure Optimization Improves IT Infrastructure Optimization Improves IT EfficiencyEfficiency

PC

s m

anaged p

er

IT F

TE

100

200

300

400

700

0

Profiled Organization

500

600

76 - 130$774-$1,320

172$580

442$230

PCs Managed / FTECost / PC

Note: Wide variability in IT labor/PC for basic customers due to lack of manageability

Source: GCR data analyzed by Microsoft; IDC data, 2006

Making It Real Making It Real cost savings, the most obvious benefitcost savings, the most obvious benefit

Uncoordinated, Uncoordinated, manualmanual

infrastructure infrastructure

Managed IT Managed IT Infrastructure Infrastructure

with limitedwith limited automationautomation

Managed and Managed and consolidated ITconsolidated IT InfrastructureInfrastructurewith maximum with maximum

automationautomation

Fully automated Fully automated management, management,

dynamic resource dynamic resource Usage , business Usage , business

linked SLA’slinked SLA’s

IT Labor IT Labor CostsCosts $774$774 $542$542 $261$261

Basic to Basic to Rationalized: IT Rationalized: IT Labor Costs Labor Costs reducedreduced $513 $513 (66%)(66%)

$232$232(30%)(30%)

$281$281(52%)(52%)

IT La

bor

IT La

bor

How to Take the JourneyHow to Take the Journey

Example - Technology View of ModelExample - Technology View of Model

No common identity No common identity management modelmanagement model

Identity management Identity management for user identificationfor user identification

Centralized configuration Centralized configuration and authentication, and authentication,

information protection information protection infrastructure infrastructure

Centralized Centralized administration, administration,

Federated Identity Federated Identity ManagementManagement

No server-No server-based based identity or identity or access access managemenmanagement t Users Users operate in operate in admin modeadmin modeLimited or Limited or inconsistent inconsistent use of use of passwords at passwords at the desktopthe desktopMinimal Minimal enterprise enterprise access access standardsstandards

Active Active Directory for Directory for Authentication Authentication and and Authorization Authorization Users have Users have access to access to admin modeadmin modeSecurity Security templates templates applied to applied to standard standard images images Desktops not Desktops not managed by managed by policypolicy

Policy Policy and Security and Security templates templates used to used to manage manage desktops for desktops for security security and settingsand settingsDirectory and Directory and certificate-certificate-based based Information Information Protection Protection InfrastructureInfrastructureCertificate Certificate Provisioning & Provisioning & Authorization Authorization for Mobile for Mobile DevicesDevices

Centrally Centrally manage users manage users provisioning provisioning across across heterogeneouheterogeneous systemss systemsFederated Federated Identity Identity Management Management across across organizational organizational and platform and platform boundariesboundaries

Example - Process View of ModelExample - Process View of ModelMicrosoft Operations Framework/ITIL in IOMMicrosoft Operations Framework/ITIL in IOM

ReactiveReactive

Ad hocAd hoc

Problem-Problem-DrivenDriven

““AvoidingAvoidingDowntime”Downtime”

Reactive Reactive

Stable ITStable IT

Request Request DrivenDriven

Change Change Management Management and Planningand Planning

““Keeping ItKeeping ItRunning”Running”

ProactiveProactive

AccountableAccountable

Increased Increased MonitoringMonitoring

Formal Formal ChangeChangeManagementManagement

SLA’sSLA’s

ImprovementImprovement

PredictabilityPredictability

““Quality Quality Driven”Driven”

ProactiveProactive

OptimizingOptimizingCosts and Costs and QualityQuality

AgileAgile

Self AssessingSelf Assessingand and ContinuousContinuousImprovementImprovement

““Taking The Taking The Lead”Lead”

Most effortMost effortspent in:spent in:

There is an end goalThere is an end goal

Dynamic SystemsDynamic Systems will result in reduced costs, improved reliability, and will result in reduced costs, improved reliability, and increased responsiveness across the entire IT life cycleincreased responsiveness across the entire IT life cycle

Faster, more efficient Faster, more efficient development resulting development resulting

in IT systems that are in IT systems that are Designed for Designed for OperationsOperations

Responsive, policy-driven Responsive, policy-driven IT systems that are self IT systems that are self

managing, reliable and cost managing, reliable and cost effectiveeffective

SLAs that are met or SLAs that are met or exceeded resulting in exceeded resulting in

satisfied business units satisfied business units and productive end and productive end

usersusers

What is the Destination? What is the Destination?

““Some people say airlines Some people say airlines are powered by jet fuel, are powered by jet fuel, but this airline is powered but this airline is powered by its IT infrastructure”by its IT infrastructure”

– – President Dave BargerPresident Dave Barger

Based on Architecture and Based on Architecture and Infrastructure investments, Infrastructure investments, cut 30% of IT budget, cut 30% of IT budget, improved interoperability improved interoperability and agilityand agility

–– GartnerGartner

““Accelerated growth could Accelerated growth could not have been achieved not have been achieved without our state-of-the-art without our state-of-the-art computer systems”computer systems”

–– WalMart ISDWalMart ISD

““Highly scaleable Highly scaleable infrastructure handles 1.8 infrastructure handles 1.8 billion real-time messages billion real-time messages per day and 50K trades per day and 50K trades per second”per second”

– – CIOCIO

ITITInfrastructureInfrastructure

IT Leaders Make Smart Investments in IT Leaders Make Smart Investments in Architecture and IT InfrastructureArchitecture and IT Infrastructure

. “One rule defines how a . “One rule defines how a particular protocol can be particular protocol can be used, where it goes to, and used, where it goes to, and where it comes from – all in where it comes from – all in one screen. That was a 100 one screen. That was a 100 percent saving in our percent saving in our professionals’ time.” professionals’ time.”

- CSR- CSR

––

ITITInfrastructureInfrastructure

Local Customers Make Smart Local Customers Make Smart InvestmentsInvestments

An upgrade to Microsoft Office An upgrade to Microsoft Office 2003 took 9 days as opposed 2003 took 9 days as opposed to months adopting their to months adopting their previously implemented previously implemented infrastructure, servicing 6 infrastructure, servicing 6 primary campuses and 7500 primary campuses and 7500 staff, 35,000 students1staff, 35,000 students1

Cuts time to deploy software Cuts time to deploy software by 92%!by 92%!

““If we are going to sell this If we are going to sell this to our customers we are to our customers we are going to have to show that it going to have to show that it works for us first”works for us first”

– – EDSEDS

CommSee has provided a CommSee has provided a user-friendly, fully integrated user-friendly, fully integrated view of customer for 1000 view of customer for 1000 relationship managers and relationship managers and 25,000 users in Call Centres 25,000 users in Call Centres and Operations Centresand Operations Centres

The Infrastructure Optimization The Infrastructure Optimization JourneyJourney

Identify where you are in the Identify where you are in the Infrastructure Optimization ModelInfrastructure Optimization Model

Identify highest impact options Identify highest impact options

Identify biggest challengesIdentify biggest challenges

Build a plan that maps to your business Build a plan that maps to your business and IT prioritiesand IT priorities

Work with your Microsoft Sales teams Work with your Microsoft Sales teams and /or Partner to help youand /or Partner to help you

“Microsoft can help plan, build and execute the journey to Infrastructure Optimization”

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