Microsoft Business ValueMicrosoft Business Value

““The newest innovations, which we The newest innovations, which we label label information technologiesinformation technologies,, have have begun to alter the manner in which we begun to alter the manner in which we do business anddo business and create valuecreate value, often in , often in ways not readily foreseeable even five ways not readily foreseeable even five years ago.”years ago.”

Alan GreenspanAlan Greenspan Chairman, US Federal ReserveChairman, US Federal Reserve

July 2000July 2000

Technology is Driving BusinessTechnology is Driving Business

AgilityAgility

““As we see it, enterprise technologies As we see it, enterprise technologies need to do far more than serve up the need to do far more than serve up the essential ‘abilities’ – availability, reliability, essential ‘abilities’ – availability, reliability, scalability, and manageability; they also scalability, and manageability; they also need to provide businesses with the agility need to provide businesses with the agility to understand, anticipate, and respond to to understand, anticipate, and respond to changing customer needs.” changing customer needs.”

– – Steve BallmerSteve Ballmer

The Return on AgilityThe Return on Agility

Microsoft maximizes the business Microsoft maximizes the business value of agilityvalue of agility

Focus on key value “levers”Focus on key value “levers” Your peopleYour people Your processesYour processes Your business relationshipsYour business relationships Your technical infrastructureYour technical infrastructure

Microsoft Business Value of AgilityMicrosoft Business Value of Agility

Deeper engagementDeeper engagement Visibility for innovation Visibility for innovation

at all levels of organizationat all levels of organization Flexibility to act on Flexibility to act on

opportunityopportunity Respond quickly and wellRespond quickly and well New revenue, venuesNew revenue, venues

Return OnReturn OnRelationships Relationships

Intrinsic integration, Intrinsic integration, open standardsopen standards

Faster time and lower Faster time and lower cost to benefitcost to benefit

Brokered .NET services Brokered .NET services Reinvigorate existing Reinvigorate existing

systems, processessystems, processes

Return OnReturn OnProcess Process

Unlock data for better Unlock data for better decisionsdecisions

Drive productivity -Drive productivity -anytime, anywhere, anytime, anywhere, any device any device

Build on existing Build on existing skills, familiarityskills, familiarity

Return OnReturn OnPeople People

Return On IT InfrastructureReturn On IT Infrastructure

Flexible interoperabilityFlexible interoperability Lower total cost of ownership Lower total cost of ownership

Embrace, maximize mobilityEmbrace, maximize mobility Support heterogeneous environSupport heterogeneous environ

ClientClient ServicesServices ServerServer

Market leading manageability, performance, integrity Market leading manageability, performance, integrity

Employee Productivity Employee Productivity and Qualityand Quality

Return on people is Return on people is maximized by:maximized by: Increasing productivity Increasing productivity

and efficiencyand efficiency Driving quality of resultsDriving quality of results Enhancing communications, Enhancing communications,

collaborationcollaboration Increasing employee Increasing employee

satisfaction and healthsatisfaction and healthReturn On IT

Return On Customer Centricity

Return On Processes

Return Return On PeopleOn People

Return On PeopleReturn On People““The The business valuebusiness value presented by presented by Windows 2000 Terminal Services Windows 2000 Terminal Services is is significant; significant; we expect to gain we expect to gain considerable business advantageconsiderable business advantage,, both in reduced operational both in reduced operational expenses as well as inexpenses as well as in greater greater agilityagility in the marketplace.” in the marketplace.”

– – Allan McLaughlin, SVP and CTOAllan McLaughlin, SVP and CTO

““The The time savingstime savings […] alone will […] alone will enable our sales people to spendenable our sales people to spend more timemore time driving new businessdriving new business andand supporting existing customers.”supporting existing customers.”

– – Diane Byrne,Diane Byrne,Senior Vice President SalesSenior Vice President Sales

Technology impactTechnology impact

Increase profitability Increase profitability Improve employee satisfactionImprove employee satisfaction Improve business efficiency and lower costsImprove business efficiency and lower costs

Enabling home-based and mobile workforces Enabling home-based and mobile workforces improves profitability and employee satisfactionimproves profitability and employee satisfaction Payroll savings of 35%Payroll savings of 35% Attrition reduced 12% (cost avoidance of recruitment Attrition reduced 12% (cost avoidance of recruitment

and training)and training) Better corporate network access improves time to Better corporate network access improves time to

market, operational/real estate efficiencies market, operational/real estate efficiencies Productivity increased 10%Productivity increased 10%

Improved IT operations and network management Improved IT operations and network management drives telecom savings of 20%drives telecom savings of 20% Server consolidation of 9%Server consolidation of 9%

ResultResult156% IRR156% IRR7 Month Payback7 Month PaybackPilot Rollout in 2001Pilot Rollout in 2001

SolutionSolutionWindowsWindows®® 2000 Terminal Services 2000 Terminal Services Displaced Windows NTDisplaced Windows NT® ® Terminal Server 4.0Terminal Server 4.0

Business goalsBusiness goals

Return on business Return on business process is maximized byprocess is maximized by IntegrationIntegration Time/cost to benefitTime/cost to benefit Process efficiencyProcess efficiency Leverage of existing assetsLeverage of existing assets Fast paybackFast payback

Greater Efficiency, Greater Efficiency, Faster Pay-BackFaster Pay-Back

Return On IT

Return On Customer Centricity

Return On Return On ProcessesProcesses

Return On People

Return On Business Processes Return On Business Processes

““We knew that We knew that upgrading upgrading to Office XP was a smart moveto Office XP was a smart move for individual as well as team for individual as well as team productivity, but it was the productivity, but it was the REJ REJ analysisanalysis thatthat convinced usconvinced us […] […] Simplifying the way people Simplifying the way people workwork and and providing providing one-click accessone-click access to our wealth to our wealth of global information with of global information with smart tagssmart tags can improve our can improve our development cycles and development cycles and give usgive us that extra margin that extra margin ofof competitive advantage.” competitive advantage.”

– – Director, Desktop EngineeringDirector, Desktop Engineering

Technology impactTechnology impact

Improve time to marketImprove time to market Enable better access to people and informationEnable better access to people and information Improve IT productivity and lower costsImprove IT productivity and lower costs

Improved productivity and faster time to marketImproved productivity and faster time to market 11% increase in personal and group productivity from 11% increase in personal and group productivity from

simplified document creation and management (i.e., smart simplified document creation and management (i.e., smart tags, task panes, styles and formatting, application and tags, task panes, styles and formatting, application and document recovery)document recovery)

Lower costs and greater operational efficiencyLower costs and greater operational efficiency 18% lower cost to build and maintain standard DT 18% lower cost to build and maintain standard DT 25% fewer calls to the help desk through document recovery 25% fewer calls to the help desk through document recovery

and error reportingand error reporting

ResultResult138% IRR138% IRRAccelerated DeploymentAccelerated Deployment

SolutionSolutionMicrosoft OfficeMicrosoft Office®® XP XPDisplaced Office 97 as desktop standardDisplaced Office 97 as desktop standard

Business goalsBusiness goals

Large International Pharmaceutical Co

More Effective More Effective Relationships, OpportunityRelationships, Opportunity

Return on customer Return on customer centricity is maximized bycentricity is maximized by Stronger customer connectionsStronger customer connections Responsiveness to needs, Responsiveness to needs,

opportunities opportunities More opportunities with More opportunities with

existing customersexisting customers New customers, channels New customers, channels

Return On IT

Return On Return On Customer Customer CentricityCentricity

Return On Processes

Return On People

Return On Customer Centricity Return On Customer Centricity

““Using .NET Enterprise Servers in Using .NET Enterprise Servers in 2000, we delivered 2000, we delivered 99.97% software 99.97% software availabilityavailability for our hosted Global for our hosted Global 2000 customers, and we developed 2000 customers, and we developed the software the software faster than on a Unix-faster than on a Unix-based alternative.based alternative.

Our use of open standards, such as Our use of open standards, such as eXtensible Markup Language (XML) eXtensible Markup Language (XML) and Simple Open Access Protocol and Simple Open Access Protocol (SOAP), promotes easy integration (SOAP), promotes easy integration with other companies and with other companies and programs, improves our enterprise programs, improves our enterprise software design and software design and ultimately is a ultimately is a reason why we lead our market.” reason why we lead our market.”

− − David Story, David Story, Vice President of EngineeringVice President of Engineering

Technology impactTechnology impact

Respond to real customer issues Respond to real customer issues Increase customer satisfactionIncrease customer satisfaction Platform cost-effectivenessPlatform cost-effectiveness

20% growth20% growth in new customers from improved in new customers from improved integration and interoperabilityintegration and interoperability

100% maintenance100% maintenance of SLAs of 99.5% uptimeof SLAs of 99.5% uptime 28% faster solution development28% faster solution development time for time for

Allegis' customers Allegis' customers Faster time to market, development cycleFaster time to market, development cycle

27% faster configuration27% faster configuration and deployment of and deployment of customer solutions versus a Unix-based platformcustomer solutions versus a Unix-based platform Number of Web hosting servers decreasedNumber of Web hosting servers decreased Servers per admin up due to greater manageability Servers per admin up due to greater manageability

ResultResultInstant agility and Instant agility and best of breed PRMbest of breed PRM

SolutionSolutionMicrosoft .NET platformMicrosoft .NET platformDisplaced UNIX solution Displaced UNIX solution

Business goalsBusiness goals

Robust Abilities Robust Abilities and Flexibilityand Flexibility

Return on IT is maximized byReturn on IT is maximized by Comprehensive and powerfulComprehensive and powerful Core abilities Core abilities Security and integritySecurity and integrity InteroperabilityInteroperability Total cost of ownershipTotal cost of ownership

Return Return On ITOn IT

Return On Customer Centricity

Return On Processes

Return On People

Return On IT Infrastructure Return On IT Infrastructure ““What we accomplished […] is What we accomplished […] is nothing short of amazingnothing short of amazing; we ; we migrated to a completely functional migrated to a completely functional e-commerce site that met our e-commerce site that met our specifications for specifications for 99.6% uptime99.6% uptime and and database integration […] while database integration […] while lowering operational costs […] lowering operational costs […] We We gained market agilitygained market agility and […] and […] Our Our customers are happiercustomers are happier now that now that they can buy our entire product they can buy our entire product range online, and range online, and management is management is excitedexcited by the by the highly effective usehighly effective use of capital and human resources.of capital and human resources.””

– – Stan Antonuk, Stan Antonuk, Vice President of TechnologyVice President of Technology

Technology impactTechnology impact

Increase revenueIncrease revenue Improve customer satisfactionImprove customer satisfaction Greater operational efficienciesGreater operational efficiencies

ResultResult692% IRR692% IRR2 Month Payback 2 Month Payback 5% incremental revenue growth5% incremental revenue growth

SolutionSolutionWindows 2000 Advanced Server, Windows 2000 Advanced Server, SQL ServerSQL Server™™ 2000 2000Displaced Unix-based solution Displaced Unix-based solution

Business goalsBusiness goals

Revenue growth (incremental) increased 5%Revenue growth (incremental) increased 5% Time-to-market: 6 weeksTime-to-market: 6 weeks

Improved customer satisfactionImproved customer satisfaction TV products integration up 100%; Speed-to-market TV products integration up 100%; Speed-to-market

improved 65%; Availability increased to 99.966improved 65%; Availability increased to 99.966 Greater operational efficienciesGreater operational efficiencies

IT operating expenses and Implementation costs down IT operating expenses and Implementation costs down 43%; Developer productivity up 29%43%; Developer productivity up 29%

Licensing costs (SQL 2000) reduced 98%Licensing costs (SQL 2000) reduced 98% Database consultants reduced by 2 FTEsDatabase consultants reduced by 2 FTEs

Microsoft maximizes the Microsoft maximizes the business value of agilitybusiness value of agility

ResourcesResources

Microsoft.com/valueMicrosoft.com/valueMicrosoft.com/Windows2000Microsoft.com/Windows2000Value@microsoft.comValue@microsoft.com