Software + Services

1. Software + Services Mark Taylor Director, Developer & Platform Group Microsoft Ltd

2. Big Catalysts Cheap Technology Global Talent Pools The Internet

3. Services Transformation “SaaS” Service Delivery “SOA” Service Composition “Web 2.0” Service Experience

4. Services + Software

5. XBox Live – A Huge Success Story for Microsoft And a realisation of the power of a software + services strategy

6. XBOX Live - A Software + Services Success Story

7. XBOX Live - A Software + Services Success Story • Not just online gaming but also: • Game updates • Purchase new games • Windows Live Messenger • Live Vision • Themes • TV and Film • XBox Live allows the XBox to become something significantly more and different to previous game consoles • A real “ah-hah” moment for Microsoft – and a demonstration of the value of Software + Services

8. Google CEO Says Software to Play a Bigger Role “Let me just say it: We want native third-party applications on the iPhone, and we plan to have an SDK in developers' hands in February” - Steve Jobs "Ajax and Web 2.0 are great technologies for casual use, but for mission critical you need the capabilities of a desktop app." Greg Gianforte, CEO ,RightNow Apple Reverses on Third-Party iPhone Apps

9. Vendor Adoption

10. Thought Leadership "It's unlikely than an organization will strictly choose one path or the other when it comes to SaaS and software services that are built in-house. Every organization will likely continue to have a mix of existing applications, SaaS subscriptions, and now through SOA, a collection of reusable components, Web services and business processes," said Sandy Carter, vice president of SOA and WebSphere strategy at IBM  “But Google's offline approach also is a recognition that Microsoft's right in insisting that not all computing will take place in the Internet cloud. Microsoft's been touting a vision of "software plus services" that relies on Internet-connected desktop apps, and more enterprise software-as-a-service companies, such as CRM vendor RightNow, recognize the need for some client software.”

11. Microsoft Services Branding “Online” • For organizations with more advanced IT needs where power and flexibility are critical • Online services include • Exchange Hosted Services, Exchange Online, SharePoint Online “Live” • Designed primarily for individuals, business end-users, and virtual workgroups • Live offerings span • Entertainment • Communication • Productivity

12. Services Platform Assets Desktop Enterprise Services Devices Platform and Tools

13. Software + Services Impact • The Future of Personal Computing • From personal computer to personal computing • Across multiple PCs and devices • Blurring of digital workstyle and lifestyle • Individual in control of their digital world • The Future of Business Computing • Revitalisation of IT • Focus on business success • Employee productivity and impact • Customer experience

14. Summary • We are very serious about software, services and Software + Services • Microsoft platform evolving to enable Software + Services • Service delivery • Service orientation • Service experience • Service economics • Industry is embracing this model

15. 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.