1 Windows Server Roadmap Update

2 Agenda Windows Server Market Trends A Look Ahead NAP Collaboration Announcement Windows Server 2003 R2 Product Update Summary

3 Record Windows Server Customer Adoption Windows Server 2003 has now surpassed the installed base of Windows NT4 Server New deployments of Windows Server 2003 have grown by 375% Growing faster than any other Windows Server OS ever* IDC projects that the installed base of Windows Server 2003 will overtake all other versions of Windows Server in 2005 Windows 2000 took 3 years to overtake NT Top workloads so far for Windows Server 2003*: Business Applications Storage Database Networking *Source: Internal Microsoft Study-data collected in April 2004 IDC Source: Worldwide Windows Server Operating Environments Forecast and Analysis: Growth Continues, Version Granularity the Story for Tomorrow, April 2004

4 1H2005 ► Windows Update Services ► Windows Server 2003 x64 Editions ► Windows Server 2003 Service Pack A Breakout Year New Value Delivered to Customers ► Windows Server 2003 “HPC Edition” ► Windows Storage Server “R2” ► Windows Server 2003 “R2” ► Windows Server: Codename “Longhorn” Beta 2H2005

5 Windows Server Product Updates SP1 Release candidate expected around the end of the year Performance beyond expectations x64 Performance for existing 32bit apps has been beyond expectations Customer and partner training efforts are in full swing HPC SDK due this fall WorkloadPerformance and Scale 32-bit Databaseup 17% 32-bit Business AppsSAP 17% more users NetworkingRecord 7.1 Gbit/sec xfer FileTwice the user capacity Active Directory2x higher throughput Terminal Services54% more users x64 Preliminary Testing WorkloadPerformance and Scale SSL50% better performance IIS 80% lower startup for 50K sites, 40% for 20K sites Networking 50% reduction in CPU usage for MSN SP1 Preliminary Testing

6 Windows Server Security Updates SP1 New features like Security Configuration Wizard drawing raves from users New wave of security guidance now available for Windows Server and XP SP2 Windows Update Services Beta in November Network Access Protection VPN Quarantine in Windows Server 2003 SP1 & R2 Industry partnership momentum continues

7 Microsoft – Cisco NAP Collaboration Long-term agreement to share plans and integrate network security and health assurance technologies around Microsoft’s Network Access Protection (NAP) and Cisco’s Network Admissions Control (NAC) Benefit is that mutual customers will be able to better address the increased threat and impact malicious software Cisco and Microsoft will collaborate on three key deliverables: Ensure compatibility between Cisco NAC and Microsoft NAP Drive interoperability efforts between their two architectures as these solutions evolve and are delivered to customers Lead industry standards in the network admissions and access control arenas to help promote broad market adoption and integration with industry leading ISV solutions. Gives customers what they’ve asked us for: a more integrated Cisco/Windows solution

8 What Does this Mean to Customers? Network Access Protection (NAP) and Anywhere Access will be moved to Longhorn Server to provide more complete solution For NAP, IPSec enforcement will now be included-another major customer request Deployment and testing considerations made them more appropriate for a major release like Longhorn Windows Server 2003 R2 will provide these benefits: Simplified Branch Server Management Streamlined Access Management Across Security Boundaries Efficient Storage Management Overall guidance: Testing Windows Server 2003 SP1 is the best way to prepare for R2 Use VPN quarantine technology in ISA 2004 and Windows Server 2003 Get relevant security guidance at:

9 Benefits to Customers: Built on Windows Server 2003 SP1 Identical servicing, app compatibility etc. Security, reliability and performance enhancements Simplified Branch Server Management Streamlined Access Management Across Security Boundaries Efficient Storage Management Predictable & Easy to Consume Availability and Licensing: R2 replaces original WS03 release (R2 components optional) No charge for servers covered by SA/EA Available as new server license for non-SA Windows Server 2003 CALs required (no R2 specific version) Same support lifecycle as WS03 R2

10 Summary Strong customer uptake of Windows Server 2003 In 2005, we will ship more customer-driven updates to our server OS than we have ever shipped and more than any other vendor We are working to provide greater Windows Server roadmap transparency to help customers plan more effectively Partnering to provide a more complete solution for customers around Network Access Protection

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