1 Delivering Business Value Today and Tomorrow

2 1 Deliver end-to-end solutions 2 3 Provide immediate ROI Lower Desktop TCO Regular updates Faster upgrade cycle, separate from Windows ® Minimal deployment effort Run out of the box Integrate with existing management solutions >95% of MDOP customers are (very) satisfied *1 $70-$80 net cost savings per PC per year using MDOP *2 *1, Microsoft MDOP customer study. Base: Current MDOP customer n=108, non- MDOP customer n=367 *2, MDOP ROI Analysis by Wipro

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4 DEM System Center Operations Manager 2007

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8 Document redirection Offline files PresentationVirtualization User State Virtualization ApplicationVirtualization DesktopVirtualization ServerVirtualization “Having one vendor for the hypervisor, operating system, and much of our application software was very appealing to us from a support and cost perspective.” Bert Van Pottelberghe, Sales Director, Hostbasket

What it does Creates a package of a single application Eliminates software install What it is good for Resolve conflicts between applications Simplify application delivery and testing What it does Creates a package with a full OS What it is good for Resolve incompatibility between applications and a new OS Run two environments on a single PC (e.g. corporate and personal) Hardware Data, User settings Applications OS

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MEDV leverages Microsfot Virtual PC, to enable enterprise deployment of local desktop virtualization

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15 Dynamically streaming software as a centrally managed service v.Next H1 CY2010 App-V 4.5 Readily accessible applicationsReadily accessible applications Accelerated desktop deployment and application recovery Minimize app-to-app compatibility testingMinimize app-to-app compatibility testing Leverage existing PC Lifecycle Management investments Provisions applications to usersProvisions applications to users Centralizes permissionsCentralizes permissions Isolates applicationsIsolates applications Provide real-time metering reportsProvide real-time metering reports Heidelberg “Microsoft Application Virtualization helps us dramatically reduce packaging time, optimize application delivery and management processes, and cut the total cost of ownership for our client environment. It paid for itself in just six months.” Axel Junghans Global Client Manager Heidelberg Current version Current version Next version

Dynamically streaming software as a centrally managed service Application Sequencing and Virtualization Flexible Infrastructure with Multiple Delivery Options Policy Based application management Application Virtualization Client Microsoft Application Virtualization Platform

Application Sequencing Application Sequencing – The gateway to Microsoft Application Virtualization Rapidly packages applications through active watch technology including execution dependencies. The Sequencer produces the virtual application package containing the application and its dependencies. The admin has the option to stream the virtual application or create an MSI wrapper for Standalone Mode delivery Windows Application CD Windows Application Installer Unpackaging Linearization Optimization & Compression Virtualized Application

App-V client reads on launch, runs app local or via TS. App-V Sequencer 3rd Party Solution Sequenced app and place on Content share. App-V Management Server (content) App-V Management Console App-V Terminal Server Desktop PC IIS Server (optional) (HTTP) Content Server Virtual App is loaded into cache and icons and files are available to user. Virtual App is delivered to the client (RTSP/Http/ MSI/ESD). Use 3 rd party interface for publishing to IIS 3 rd party ESD or Standalone Mode. 3rd party (ESD) Standalone Mode (MSI) Use App-V Mgmt Console to import package from Content share, create application, and assign to AD Security Group. Package is available for Streaming, 3 rd Party ESD, or Standalone distribution. Use App-V Mgmt Console to import package from Content share, create application, and assign to AD Security Group. Package is available for Streaming, 3 rd Party ESD, or Standalone distribution. Streaming Server (RTSP) IIS Server (optional) (HTTP) Standalone Mode (MSI) OR

Microsoft Application Virtualization allows any application to run along-side any other on a terminal server, eliminating the need for silos and increasing utilization, resulting in the need for less servers. »Instantly deploy applications to Citrix/Terminal Servers »Eliminate installs, regression testing & downtime »Eliminate applications that conflict on the same server, including multiple versions of same app »Enable applications that were not designed to run in multi-user mode

Dynamic Suite CompositionDynamic Suite Composition Admin controlled combination of virtual application environmentsAdmin controlled combination of virtual application environments Enhancements to the SequencerEnhancements to the Sequencer Dynamic Application Interaction Flexible deployment modesFlexible deployment modes Interoperability with SMS, SCCM, third party ESD and Standalone modeInteroperability with SMS, SCCM, third party ESD and Standalone mode HTTP Streaming and Internet Facing SupportHTTP Streaming and Internet Facing Support Improved Management and SupportabilityImproved Management and Supportability Extending Scalability Globalization and LocalizationGlobalization and Localization Supports localized applications and operating systemsSupports localized applications and operating systems Globalization Secure Windows InitiativeSecure Windows Initiative Trustworthy ComputingTrustworthy Computing Secure by DefaultSecure by Default Microsoft Security Standards Technology Investment Areas

Administrator controls & configures the virtual application separately Create a “one to one” scenario for single applications that are dependant on each other Create a “many to one” scenario where middleware and plug ins components can be reused Reduces the potential package size Flexible Package Management Single application with no dependencies still exist Application known to not conflict may be configured to share the same virtual environment Mandatory/Optional dependency configuration options Virtual applications can share common dependencies Virtual Environment App “A” Combined Virtual Environment App “B” App “A” System Services ConfigurationsData Inter Application CommunicationIndependent Virtual EnvironmentsApplication Sharing Using DSC Virtualize Middleware once share with many

Streamlined Wizard process Fewer wizards, lLess clicks More intuitive process MSI creation capability MSI creation for standalone use Streaming MSIs – MSI sets up the virtual application and settings, but application is steamed from server when user clicks on app Enhanced Command Line Interface Additional capabilities for batch operations Sequencing upgrade feature supported (Open, Save, Close) Batch MSI creation Compression settings Differential SFTs Creation of SFTs with only sequenced differences (updates) For use with standalone mode only (merged by client action) Streamlined Wizard process Fewer wizards, lLess clicks More intuitive process MSI creation capability MSI creation for standalone use Streaming MSIs – MSI sets up the virtual application and settings, but application is steamed from server when user clicks on app Enhanced Command Line Interface Additional capabilities for batch operations Sequencing upgrade feature supported (Open, Save, Close) Batch MSI creation Compression settings Differential SFTs Creation of SFTs with only sequenced differences (updates) For use with standalone mode only (merged by client action) Enhancements

Standalone execution of virtual applications No server is required MSI wrapper is the configuration control Interoperable with SMS/SCCM & 3rd party ESD No dynamic delivery, DC service or package/active upgrade Standalone execution of virtual applications No server is required MSI wrapper is the configuration control Interoperable with SMS/SCCM & 3rd party ESD No dynamic delivery, DC service or package/active upgrade Standalone Mode Multiple Delivery Options Desktop Publishing Service Dynamic Delivery Package/Active Upgrade Requires Active Directory and SQL Server Desktop Publishing Service Dynamic Delivery Package/Active Upgrade Requires Active Directory and SQL Server Full Infrastructure Dynamic Delivery Package/Active Upgrade No SQL Server required Allows streaming capability to be added to SMS/SCCM & 3rd party ESD Dynamic Delivery Package/Active Upgrade No SQL Server required Allows streaming capability to be added to SMS/SCCM & 3rd party ESD Lightweight Infrastructure

Single, scalable infrastructure provides centralized management of physical and virtual applications Seamless integration provides a consistent delivery experience to both users and machines via download & execute or streaming services Seamless integration provides a consistent delivery experience to both users and machines via download & execute or streaming services Manage business needs through explicit scheduling, targeting and change management control of delivery including OS Deployment, Inventory and Software Update Management Manage business needs through explicit scheduling, targeting and change management control of delivery including OS Deployment, Inventory and Software Update Management Provide deep business insight through robust, centralized Asset Intelligence and Reporting of physical and virtual assets Provide deep business insight through robust, centralized Asset Intelligence and Reporting of physical and virtual assets Reduce TCO using System Center and Application Virtualization by 83% Reduce TCO using System Center and Application Virtualization by 83%

Seamless management of both physical and virtual applications from single console Offline availability of virtual applications (Download and Execute) Internet and Branch based management support for: Software Distribution Hardware/Software Inventory Patch Management Operating System Deployment Corporate and Regulatory Compliance support via Configuration Baselines Flexible delivery of both physical and virtual applications from single console Centralized, streaming application service support Managed desktop lockdown support Centralized, remote support for deployment, administration, update and support ConfigMgr client runs as elevated service locally supporting lock down kiosk machine models Task worker Kiosk Support Integrated delivery of physical and virtual applications from single console Truly deliver a managed, locked down environment by utilizing the System Center client for service delivery ConfigMgr client runs as elevated service locally supporting lock down kiosk machine models Maintain desired configuration model for public access kiosks Build, deploy, patch and remotely manage through System Center client technology Hosted Desktop Seamlessly publish both physical and virtual application packages to remote clients Integrate with Windows Server Terminal Services Guarantee service levels with centralized Configuration and Performance management thresholds for host systems Virtual library host management capabilities provide rich datacenter redundancy Lower the cost of Host management with Virtualization, Configuration and Performance Management Offsite Clients Branch and Internet based client support for Physical and Virtual application management Branch and Internet based client support for Physical and Virtual application management Flexible integration with other Configuration and Performance capabilities Flexible integration with other Configuration and Performance capabilities Secure access management through NAP integration Secure access management through NAP integration

Offline Availability Background Streaming Auto-load options Load on first launch Load on login Application Source Root (ASR) Allows local client determination of server path Client support for Microsoft Windows Server 2008 Terminal Services* Infrastructure and Client WMI provider collects application usage information Simplified way to pull the data into your organization’s reporting store Data metering while users’ are offline WMI provider collects application usage information Simplified way to pull the data into your organization’s reporting store Data metering while users’ are offline Data Metering * Microsoft Application Virtualization for Terminal Services only

Better Standards & CEC Support Fewer wizards Microsoft Update for all Application Virtualization components (client, server, sequencer) Microsoft Update support for virtualized applications at sequencing time (not available at run time) Volume Shadow Copy Service (VSS) Writer support Better Management System Center Operations Manager 2007 Management Pack ADM Template Best Practice Analyzer / Desired Configuration Monitoring Better Diagnostics Windows Error Management Integration on Client and Server (Watson) Event Log Support on Client and Server Better Standards & CEC Support Fewer wizards Microsoft Update for all Application Virtualization components (client, server, sequencer) Microsoft Update support for virtualized applications at sequencing time (not available at run time) Volume Shadow Copy Service (VSS) Writer support Better Management System Center Operations Manager 2007 Management Pack ADM Template Best Practice Analyzer / Desired Configuration Monitoring Better Diagnostics Windows Error Management Integration on Client and Server (Watson) Event Log Support on Client and Server Management and Supportability Enhancements

*Still does not support Complex-script languages Installing on any OS language* Mixed language environments (server/client) Ex. Japanese employee traveling to his German branch office Detecting & respecting the user locale & regional settings Auto-detecting system / user locale Auto–load appropriate resource files Sequencing non-English/Localized applications Installing on any OS language* Mixed language environments (server/client) Ex. Japanese employee traveling to his German branch office Detecting & respecting the user locale & regional settings Auto-detecting system / user locale Auto–load appropriate resource files Sequencing non-English/Localized applications Business Objectives Brazilian Portuguese Chinese – Simplified, Chinese – Traditional Dutch (Client Only) Brazilian Portuguese Chinese – Simplified, Chinese – Traditional Dutch (Client Only) Localized in 11 Languages KoreanRussianSpanishFrenchGermanItalianJapanese

Release developed in compliance with Microsoft Security Initiatives Adopted Security Development Lifecycle (SDL) and Trust worthy Computing (TWC) Processes Internal/External Security Code Reviews Secure Windows Initiative Final Security Review Support Internet-Facing Scenarios No VPN required App-V Client is on an Untrusted network App-V Server on an Untrusted network Secure by Default in Deployment Client privileges locked down Transport Layer Security Support (on by default) Kerberos support Certificate Based Server Authentication Release developed in compliance with Microsoft Security Initiatives Adopted Security Development Lifecycle (SDL) and Trust worthy Computing (TWC) Processes Internal/External Security Code Reviews Secure Windows Initiative Final Security Review Support Internet-Facing Scenarios No VPN required App-V Client is on an Untrusted network App-V Server on an Untrusted network Secure by Default in Deployment Client privileges locked down Transport Layer Security Support (on by default) Kerberos support Certificate Based Server Authentication Business Objectives

31 = Note: Depicted TCO reduction is not exclusively from the four examples below

Build Business Continuity for Applications Proactive insight into desktop crashes and hangs Reduce Application Management Costs Reduce Application Management Costs Enable Roaming and Free Seating Enable governance and change control Reduce Help Desk Calls Accelerate OS Migrations Manage software assets across the Enterprise

“…this suite is a must-have collection of valuable utilities—many of which originated at startups since purchased by Microsoft—and an obvious and tangible benefit of Microsoft's subscription-based enterprise licensing program. If you're not taking advantage of Microsoft Desktop Optimization Pack, it's time to take a look.” - Paul Thurrott, Windows IT Pro Magazine April 30, Paul Thurrott, Windows IT Pro Magazine April 30, 2008 “Organizations currently running Windows XP on their mobile PCs could save $605 a year per machine by replacing those systems with Windows Vista, using the Microsoft Desktop Optimization Pack and best practices to improve infrastructure optimization.” - Peter Galli, eWeek September, Peter Galli, eWeek September, 2007 Yankee Group analyst Laura DiDio said in an interview that a comparable Microsoft offering could cost as little as one-third of what VMWare charges. “Until recently, there was not much competition,” she said. “Now what I'm hearing from customers is, they're glad to see Microsoft stepping up to the plate. They like VMWare's products, but they don't want to pay those high prices.” Yankee Group analyst Laura DiDio said in an interview that a comparable Microsoft offering could cost as little as one-third of what VMWare charges. “Until recently, there was not much competition,” she said. “Now what I'm hearing from customers is, they're glad to see Microsoft stepping up to the plate. They like VMWare's products, but they don't want to pay those high prices.” - Laura DiDio; Analyst, Yankee Group

Global manufacturer simplifies client management and reduces total cost of ownership with application virtualization “The knowledge you need to create a virtualized package is 10 times less than what you need to create a MSI package.” Time-consuming application packaging and delivery Gain control of disparate hardware and software across the enterprise Reduce costs, improve software delivery and client management Time-consuming application packaging and delivery Gain control of disparate hardware and software across the enterprise Reduce costs, improve software delivery and client management The Challenge Reduce application packaging time more than 50 percent Realize 40 percent cost savings through simplified packaging,, faster deployment and shorter problem resolution Empower local IT staff to package applications for local needs Accelerate application repair by not requiring a reinstallation of applications Reduce application packaging time more than 50 percent Realize 40 percent cost savings through simplified packaging,, faster deployment and shorter problem resolution Empower local IT staff to package applications for local needs Accelerate application repair by not requiring a reinstallation of applications The Results “Microsoft Application Virtualization helps us dramatically reduce packaging time, optimize application delivery and management processes, and cut the total cost of ownership for our client environment. It paid for itself in just six months.” - Axel Junghans - Global Client Manager - Heidelberg - Axel Junghans - Global Client Manager - Heidelberg - Joerg Manske - IT IO - Heidelberg - Joerg Manske - IT IO - Heidelberg

Leading technical service provider streamlines Vista migration, accelerates application delivery and enhances client management “We no longer have to test against other applications because there’s no risk of affecting other applications on the client. Testing takes just one to two days at the most. So the whole process, from request to deployment, takes just a few days with Microsoft App-V, instead of up to a month—which is what it can take with locally installed applications.” Speed application packaging Enable multiple application versions to co-exist on client devices Create a uniform software delivery and management infrastructure Speed application packaging Enable multiple application versions to co-exist on client devices Create a uniform software delivery and management infrastructure The Challenge Reduced application time-to-deployment from one month to several days Streamlined Vista migration and ease project management Enabled applications to follow users Enhanced business continuity, reducing downtime to minutes Simplified post-acquisition client management Reduced application time-to-deployment from one month to several days Streamlined Vista migration and ease project management Enabled applications to follow users Enhanced business continuity, reducing downtime to minutes Simplified post-acquisition client management The Results “Microsoft App-V improves the way our IT staff and end users work. It gives users the flexibility to run applications required for their projects, without any risk of conflicts. And it helps IT simplify and accelerate application packaging and time-to-delivery. “ - Joerg Umland - IT Administrator - TUV NORD - Joerg Umland - IT Administrator - TUV NORD

Streamlining application packaging and management while improving desktop security “We were spending valuable time dealing with the challenges inherent in managing so many applications and users. We sorely needed a more innovative way to do this in order to concentrate our efforts on other value-add services. Microsoft’s unique virtualization solution eliminates application management complexities and helps us provide even better IT service to our constituency.” Time consuming Deployments and Updates Difficult Desktop Security No support for multiple application versions on the desktop Time consuming Deployments and Updates Difficult Desktop Security No support for multiple application versions on the desktop The Challenge Simplifies and reduces application deployment from several days to just hours Cuts upgrade time for key applications by hundreds of hours Improves desktop security by minimizing the need for local administrator access for applications Enables multiple application versions to run on the same computer, easing IT support for training labs, migrations and software developer requirements Enhances disaster recovery for applications Simplifies and reduces application deployment from several days to just hours Cuts upgrade time for key applications by hundreds of hours Improves desktop security by minimizing the need for local administrator access for applications Enables multiple application versions to run on the same computer, easing IT support for training labs, migrations and software developer requirements Enhances disaster recovery for applications The Results “Application virtualization is critical. It will enable us to have a simplified model where we can give users a vanilla computer and instantly deliver their applications to the new machine.” - Laura Guillory Director of User Services, California State University Chancellor’s Office - Laura Guillory Director of User Services, California State University Chancellor’s Office

*Customer used Microsoft Application Virtualization, formerly SoftGrid Application Virtualization and is upgrading to App-V 4.5 Enable dynamic application delivery and improve support for teachers and students “Microsoft Application Virtualization helps us accelerate application delivery and gives our schools much more flexibility in using applications for instruction. It provides great benefits to teachers, students and IT staff alike. We’ve had tremendous success with it, and a lot of enthusiasm from all our users.” Streamline application delivery and management, and enhance end-user support in large, decentralized school district. The Challenge Reduced application deployment from four weeks to one day Simplified application migrations and user training Enabled application mobility Cut images by 50% and simplified maintenance Improve license management Centralize application information Reduced application deployment from four weeks to one day Simplified application migrations and user training Enabled application mobility Cut images by 50% and simplified maintenance Improve license management Centralize application information The Results - Chris Lewis Manager, Desktop Management Team Fairfax County Public Schools - Chris Lewis Manager, Desktop Management Team Fairfax County Public Schools