Knowledge Economy Australia Norbert Haehnel Director - Developer and Platform Strategy

1. Knowledge Economy AustraliaNorbert HaehnelDirector - Developer and Platform Strategy

2. For countries in the vanguard of the world economy, the balance between knowledge and resources has shifted so far towards the former that knowledge has become perhaps the most important factor determining the standard of living - more than land, than tools, than labour. Today's most technologically advanced economies are truly knowledge-based. World Development Report, 1999

3. The Golden Rules of Competitiveness* ICreate a stable and predictable legislative environment. IIWork on a flexible and resilient economic structure. IIIInvest in traditional and technological infrastructure. IVPromote private savings and domestic investment. VDevelop aggressiveness on the international markets as well as attractiveness for foreign direct investment. VIFocus on quality, speed and transparency in government and administration. VIIMaintain a relationship between wage levels, productivity and taxation. VIIIPreserve the social fabric by reducing wage disparity and strengthening the middle class. IXInvest heavily in education, especially at the secondary level, and in the life-long training of the labour force. XBalance the economies of proximity and globality to ensure substantial wealth creation, while preserving the value systems that citizens desire. Source: Stéphane Garelli, Director of the World Competitiveness Project and Professor at IMD Business School and University of Lausanne

4. Australia – a knowledge economy? • Chance or challenge • aging population • ICT trade deficit growing • Student numbers in ICT and engineering declining • Shortage of skilled ICT workers • Investment in ICT a fraction of traditional industries • World-class ICT researchers • Good education system • World-class universities

5. Australia a laggard? Today Australia faces considerable challenges on many economic fronts including our slow progress beyond agriculture and mining of primary metals. According to a recent CEDA study (Committee for Economic Development of Australia) the following facts create a laggard perspective of Australia. • 80% of the top 15 exports are resource based • Failing to develop new areas of specialization and growth • Weakness in number of new organisations being formed • Poor performance in R&D and Patenting • Declining position in Hi Tech sector • Decline in world competitiveness ranking from #4 (2004) to #9(2005) Source: IMD-World Competitiveness Center

6. Australian ICT Assessment 24,000 ICT Specialist organisations in Australia 11th Largest ICT market in the world 82% - 1 – 4 Staff 187 Firms – 100+ staff - 77% revenue 40% located in NSW 30% Located in VIC 14% Located in QLD Employing 236,000 People Revenue $49.9 B • Total Work force 9.5 m • IT represents 2.5% • 82% - 1 – 4 Staff • 187 Firms – 100+ staff • - 77% revenue • 40% located in NSW • 30% Located in VIC • 14% Located in QLD • 80.5% Male • 19.5% Female • 5% of total GDP 3500 ISV’s Building Software • 8935 Registered Microsoft Partners – 1702 (20%) regard CS IP as primary income • 617 Microsoft Certified Partners • 160 Microsoft Gold Partners - 300 (30%) regard CS IP as primary income Exports $ 4.2 B Imports $16.4 B • $ 12.6 B Import of goods • $ 2.82 B Import of Services • $2.1 B Goods Export • $2.1 B Services Export $12.1 B ICT Trade Deficit (and rising) Australia Government DICTA Report 2002-03 - Microsoft partner team data

7. Idea Creation Business Growth Skills Creation Business Building Idea Incubation • Build IT skills for the technology and other sectors Assist in developing an entrepreneurial society. • Create a platform for growth. Develop business basics. • Provide a channel for growth additional business support. • Accelerate growth and channel development. ACTIVITIES ACTIVITIES INVESTMENTS OUTCOMES INVESTMENTS AOUTCOMES ACTIVITIES OUTCOMES ACTIVITIES ACTIVITIES INVESTMENTS OUTCOMES INVESTMENTS OUTCOMES INVESTMENTS • Australia.NET Clusters • Partner Solution Marketplace • Channel Builder • ANZ Partner Conference • ANZA Tech • Consensus Award • Australia.NET Clusters • ISV Empower Program • ISV University Content • Innovation Centers • 340+ Cluster members • Government/MicrosoftJoint Industry Plans • 450+ Empower subscribers • Microsoft ISV’s grow faster than market • 45 partner to global conferences • IP value of cluster members 350+ million • Australia.NET Clusters • Research Grants • Joint Research Project • ISV Solution Innovation • Curriculum Adoption • Research collaboration with major Universities • Microsoft Chair at Macquarie Uni • Imagine Cup • Unlimited Potential • Partners in Learning • TechED & other events • MCP Certification • ISV Community • User Groups, Industry partnerships (ACS, CompTiA) • MS Academic Alliance • > 40,000 Developers • > 100,000 IT Pro’s • 20+ User Groups • Post Graduate Courses • 10,000+ Partner Program Members • 700 Partners at ANZ Partner conference • Australia.NET Clusters • Managed Partner • Gold Certified Partner • Local Economic Impact • Bus Dev with Partners • Venture Capital connection $ 65,000,000 ISV and general Partner Programs, Software Business Building, Channel building, ANZA Tech, Co-Marketing & Selling $ 3,470,000 Industry Development, Developer Skilling, Events & Technical Engagement $ 3,100,000 Provision of Software for Students & Academia, Faculty Research Australia’s Potential our Passion

8. Aus.NET National Architecture Federal & State Grants Other Industry Alignment Academic Research MSN, Telstra etc

9. .NET state clusters today

10. Unlimited Potential Program • improve lifelong learning for disadvantaged young people and adults • Community Technology Learning Centers (CTLC) • Global Community Technology Learning Center Support Network • Awards/Venture Fund Program for Technology Solutions • Partnering with: The Smith Family, the Australian Seniors Computing Clubs Association, the Inspire Foundation and WorkVentures • 1 Billion US$ initiative • In Australia we invest >40 million in a 5 year term in this program

11. Partners in Learning (K12) • Worldwide, Microsoft is devoting US$253 million to both State and Federal government initiatives. • In Australia, Microsoft has committed more than $10 million in cash and resources over the next five years. • Through a series of programs, key investments, software and training, Microsoft seeks to reward outstanding teachers as well as provide professional development to teachers who act as technology and educational change agents at their schools. • Microsoft is supporting State and Federal governments in a number of information and communication technology (ICT) educational projects throughout Australia. • Projects include providing skills training for teachers across the country, • specific training for teachers of gifted and indigenous students • Resources and support to develop lesson plans to integrate technology into the curriculum, • online and peer mentoring programs • providing access to  Microsoft certification courses http://www.microsoft.com/australia/education/pil/default.aspx

12. Academic Alliances • Latest set of Microsoft platforms, servers, and developer tools via regular CD shipments and a download Web site. • License to install the software on any number of lab machines used by the department for instructional and research purposes. • License to provide the software to students taking courses that lead to credit or a certificate within the department, so they can load the software on their personal computers for use in coursework and personal projects. • Electronic software distribution to students through e-academy License Management Systems (ELMS). • Four technical support incidents (varies by region) in addition to access to the managed newsgroups and the Online Concierge. • Private newsgroups where faculty can ask technical and administrative questions, collaborate with each other, and talk with the MSDNAA team. • Comprehensive Web site that provides resources for faculty http://msdn.microsoft.com/academic/

13. MSDN Connection for Faculty Program dedicated to Faculty in Computer Science, Information Technology and Information Systems Faculty automatically in Gold Tier Beta Program invites, RFP announcements, Latest Curriculum content, Platform and technology content updates To join - http://www.microsoft.com/australia/msdn/faculty/default.aspx

14. Course Support For Faculty looking to or currently teaching Microsoft courses Faculty Resource Kit Curriculum Repository Prizes and Trophies (Xbox, Smart phones etc) for top students in your class Student recommendations for Internships at Microsoft Australia and graduate positions at Microsoft Redmond Discount ticket pricing to Tech Ed Co-marketing your course details at www.microsoft.com.au/students Technical Guest Lectures in your class MS Press books PR Opportunities for your .NET courses Closer relationship with Microsoft Australia

15. Imagine Cup 2006 Microsoft's Premier Student Technology Competition Looking for top student projects using .NET Theme is Healthcare Opportunity to integrate into Curriculum Winning group receives all expenses paid trip to global finals in India in 2006 Winning project receives USD$25,000

16. Microsoft for Faculty Resources http://www.microsoft.com/australia/msdn/faculty/default.aspx Online resource for Faculty Members http://blogs.msdn.com/msozacademic/ Subscribe to the RSS feed to receive the latest information MSDN AA http://msdn.microsoft.com/academic/ Academic Enquiries Deeps De Silva, Audience Manager pradde@microsoft.com (02) 9870 2681

17. Summary • Academia and Microsoft can help Australia to build the knowledge economy • Intellectual Property is the mineral of the future • Commercial software is a great way to decrease our ICT trade deficit

18. Thank You My contact details: Norbert Haehnel Director – Developer and Platform Strategy Microsoft Australia / New Zealand Email: Norbert.Haehnel@microsoft.com Phone: 02-9870-2335