Driving Growth through Innovation

1. Driving Growth through Innovation Doug Hauger Chief Operating Officer Microsoft India

2. 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

3. FYO7 Driving Impact with Windows Vista and the 2007 Office System • Business Value Launch • General Availability Launch

4. India Launch Results Results delivered! 7 cities, 75,000 exposures, 376 PR Stories 3,300 Attendees 1200+ marketing generated sales opportunities • Great consumer marketing generated buzz and delivered results! • 71% awareness • 68% intent to purchase • 48% Windows Vista adoption in Premium SKU’s

5. Thank You

6. 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 • 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 Source: Jeff Jones Security Blog

7. Increased SA value Subscription access only Within Software Assurance “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 Available only through Software Assurance For all Customers

8. 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

9. CurrentPiracy Situation India By Segment • 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

10. 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

11. Partner Call To Action Learn 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: • 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 • The Risks of Obtaining and Using Pirated Software IDC, October 2006http://www.microsoft.com/india/originalsoftware

12. Windows VistaPartner Opportunity • 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

13. 2007 Office System Launch • Partner Momentum • 5,300 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 “Office 2007 is one of the most ambitious and innovative releases to come from Microsoft in years… Thank You “…it's become much clearer that SharePoint will be the one must have product released this year for any Microsoft-centric business.”

14. Partner Opportunity Across BPI Data Visualization Enterprise Project Management Unified Communications Performance Management Search ECM & Forms Portals & Collaboration UnifiedCommunications BusinessIntelligence Search Enterprise ContentManagement Collaboration Office Business Application Services Office Solutions Development Office Deployment Secure And Well-Managed Core Infrastructure

15. 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

16. The Innovation ContinuesProducts launching in the fall Software-powered VoIP for streamlined communications Complete and integrated performance management

17. The ConnectedBusiness Business Vision &Business Software People &Processes Company &Ecosystem

18. R&D investment % of revenue Consolidation vs. 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” Infor “They’ll keep the product lines going for as long as they can, making just enough R&D investment to stay in the market” Source: Nigel Rayner, - Gartner, July 2006 “ERP innovation is back. And it's being led by a couple of industry giants: SAP and Microsoft.” Driving innovation Sage Sage: 10% Microsoft 18% Paul Hamerman, June 8, 2007

19. Innovations driving Competitive Advantage People + Processes Sure Step SharePoint Workflows RealWorldSOA Office Business Applications Role Tailored Microsoft Dynamics Client for Office and SharePoint Software + Services Finance Community “Certified For” - logo Business Vision +Software Company+ Ecosystem

20. 2008 Launch Wave • Joint launch in Q3, staggered product release schedule • Key themes: Virtualization, Web, Enterprise • Largest IT Pro, Developer, and Partner outreach in history • Events, Online, Community, Influencers Rich Web Platform Enterprise Data Platform Virtualization Rich Client Platform Beyond Relational Web Developer Productivity Dynamic Development Team Collaboration Security Pervasive Insight Support Latest Platforms

21. The 2008 Launch Wave Joseph Landes Director of Marketing; Launch Manager Microsoft Corporation

22. 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)

23. State of the BusinessServer Hardware New Units Shipment Others Server and Tools is an $11B Business for Microsoft Numbers are projected for 2007 and beyondIDC, Worldwide and Regional Server 2007–2011 Forecast: April 2007, Doc #206466, Apr 2007

24. Key Development Tenets Security! Security! Scenario-focused Integrated innovation Compatibility Heterogeneous interoperability Enabling broad industry ecosystem and volume economics Best of breed functionality for all server workloads Server Workloads Focus Server Functions Workloads Networking Remote Access Security Identity Management Terminal Server Operational Infrastructure Storage (file, portal) Print Email Collaboration Information Worker Infrastructure Application/Web Server Unix integration services Database High Performance Computing Application Platform Software Distribution Virtualization Operations Management Management General Purpose & Enterprise Medium Business Small Business Solutions

25. Power Multicore Hardware Inflection Points 64-Bit Virtualization

26. Key Product Messaging Virtualization Security Web • BitLocker™DriveEncryption • Read-OnlyDomainController • NetworkAccess Protection • Windows Server Virtualization • Presentation Virtualization • IIS7 • Windows Media Services Solid Foundation for Your Business Workloads Server Core New Network Stack Server Manager Power Efficiency Windows PowerShell Next Generation Networking

27. 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

29. 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

30. 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!

31. Promoting Evaluation 4.0 million Trial and Evaluation

32. 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

33. Now is the Time to Get Ready! Plug into Launch Marketing and Readiness Activities Plan for Launch in your Business and Marketing Plans Download and get hands on with the products Get Trained!

34. Delivering Integrated Value Designer • Improved productivity • Easier data access • Target latest platforms • Office, Vista & Web • Work Collaboratively • Design, develop and test • Passionate About Standards • Cross-browser web apps • Designed for Design • Vector graphics & drawing tools • Art meets Science • Mix & match design with media Developer Designers & Developers Speak the Same Language

35. Microsoft Silverlight Cross Browser Cross Platform Plug-In .NET Media Experiences RIA

36. Silverlight Janakiram MSV Product Manager DPE

37. The complete creative toolbox for web, graphic and UI designers Studio The professional Webdesign tool The professional Interactive design tool The professional Graphicdesign tool The professionalAsset Managementtool

38. 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

39. FY08 Campaigns Perception Change Campaigns Product Campaigns (Examples) Customer Campaigns • DEPTH (BIG IT) • Build Customer Connections • Enable Your Mobile Workforce • Improve Compliance • Drive Performance • Drive Real World Business • Optimize and Secure your core infra • Applications Platform Optimization • Optimize your Business Productivity Infra PRB Extension WindowsServer 2008 Reliability for the Next Generation IT PRB CAMPAIGNS PEOPLE + MICROSOFT SOFTWARE =BUSINESS RESULTS Microsoft Unified Communi-cation Software-based enterpriseVoIP solution to maximize existing infrastructure Security products thatmake it easier to stay aheadof security challenges Microsoft Forefront • BREADTH (SOME IT) • Security and Reliability • Customer Acquisition and Retention • Business Productivity • Business Solutions OSI CAMPAIGNS ORIGINAL SOFTWARE = BUSINESS STANDARD = BUSINESS RESULTS WindowsMobile Be better equipped tostay on top of my work • NO IT • Consumer Preference Campaign Product Campaign Relationship Marketing Advertising Perception Shift OSI Campaign

40. 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