Windows Server For The Midmarket: Strategy and Roadmap Kent Compton Senior Product Manager Windows Server Solutions Group Microsoft Corporation

Lots of legacy still out there 1.4m worldwide entities (18K enterprise) 12% Growth this year (highest growth segment) 67% of all servers (25% in enterprise) Midmarket Business Opportunity

…And We’re Not Alone “The midmarket's growth shows no signs of abating. While the enterprise market remains steady, and the small-business space heats up, the midmarket is downright scorching. Some industry watchers estimate that it will grow by more than 20 percent this year alone. More than 21 million small-to-midsize businesses operate in the United States, and more than half will be purchasing upwards of $200 billion in IT goods and services this year, according to Forrester Research. Many vendors, including Hewlett-Packard, Microsoft, Oracle and Trend Micro, are realigning their channel programs into market-size segments, assigning resources to address the specific needs of each niche.” Lawrence M. Walsh, Editor VARBusiness Magazine March 16, 2006

Enterprise >5,000 employees >1,000 PCs 2K Midmarket Business 1.4M 50 – 999 employees 25 – 499 PCs Microsoft Customer Segmentations 40M Characteristics # WW Entities 1 – 49 employees <25 PCs Small Business 16K 1,000 – 5,000 employees 500 – 1,000 PCs Corporate SB/MMB Source: AMI 2005 C/E Source: IDC 2005, Microsoft

Midmarket Overview Midmarket Business 1.4M 50 – 999 employees 25 – 499 PCs 99, , – , , – ,000 2,593, – ,000 1,168, – 99 Number of Entities Server Installed Base Avg Servers/ Organization Source: AMI 2005

Persona: IT Generalist “My role is a mile wide and an inch deep” Responsible for all aspects of IT infrastructure at all locations including network, servers, and messaging Responsible for desktops, helpdesk and end user support Generalist by necessity, not by choice No deep skills in any area and limited formal training (MCSE courses) Use products and tools out-of-the-box, almost 100% GUI based Interrupt-driven and primarily reactive, high productivity focus Reluctant to change: “If it’s working don’t break it” Feels overlooked, no targeted programs, solutions, or documentation

Our Goals For The Midmarket We know we can do better Technical Complexity Ease of Use ServicesManagementPatchingSecurity Licensing and pricing complexity Guidance Strengthen our partner opportunities

What We’re Doing Today New Content Guidance and TechNet Site “Mindset Change” Company-wide Effort Tools and Resources Analyzers and Assessment Tool New Offer Licensing and Procurement

Current Promotion Windows Server System for Midsize Business Servers 3x Windows Server 2003 R2 SE Exchange Server 2003 Standard Edition Operations Manager Workgroup Edition 50 Windows Server and Exchange CALs CAL (250 Max) Windows Server + Exchange 50 CALs

Future Technologies

“Centro” Code name for a new, integrated, x64-based infrastructure solution specifically designed to meet the needs of the Midmarket’s IT Professionals that will RTM after Windows Server codenamed “Longhorn” Current Plan of Record products Windows Server Longhorn Exchange Server next generation technologies System Center Management technologies Security Technologies Unified Setup Single Administration console License Management and a “Centro CAL” Integrated to best practices for security, manageability, and performance

Call To Action Engage with the Midmarket How to Prepare for Centro? Create and/or Use Windows Server Longhorn compatible drivers and components Use x64 Processors Develop a Microsoft Operations Manager (MOM) Management Pack for your hardware Go to take Window Vista 101, and learn more about how you can plug into the Windows Vista Opportunity

Additional Resources Learn more about “Centro” in this Microsoft Presspass Interview: /sep05/09-06Infrastructure.mspx /sep05/09-06Infrastructure.mspx /sep05/09-06Infrastructure.mspx Develop MOM Management Packs: =c5b42e5b-68ed-45ea-8864-a9d4087d261d&displaylang=en =c5b42e5b-68ed-45ea-8864-a9d4087d261d&displaylang=en =c5b42e5b-68ed-45ea-8864-a9d4087d261d&displaylang=en Existing Hardware MOM MPs (search for Hardware and Network Management): We’ll be contributing to the Microsoft Hardware Newsletter. Sign up now if you haven’t already:

Questions?

© 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.