Microsoft Collaboration Survey Research Results Survey of Business and Technology Decision-Makers

Survey Methodology DATA COLLECTION DATES: September 23 – October 12, 2007 METHOD: Telephone survey SAMPLE SIZE: 100 Business decision-makers and 100 Technology decision-makers SAMPLE: Decision-makers, manager and above, within High- Tech Companies with revenue of at least $150 million and 500 employees

Executive Summary

and phone are the most popular collaboration tools among BDMs and TDMs, although TDMs are more likely to use a whole range of tools The vast majority of both BDMs, 78%, and TDMs, 85%, report their organizations use at least one publicly available collaboration tool Organizations that use publicly available tools use them frequently and it is not limited to one tool more than others –If they say they use that a publicly available tool to collaborate, more than likely they are using it often Many types of proprietary information is communicated with publicly available tools, with product plans or technical data being sent most frequently –And the vast majority of information is contained in standard Microsoft Office documents such as Word, Excel, PPT, etc. Executive Summary: Collaboration Tools

While most think publicly available tools are secure, only about a third are sure and almost as many feel they are insecure –Interestingly, TDMs are more likely to feel strongly that they are secure compared to BDMs –Additionally, TDMs especially are concerned about the use of publicly available tools to send confidential information Nearly all report that their organizations have and frequently implement policies to control confidential information, and these policies are most commonly designed by legal departments and CIOs, with the security office, managers and engineers playing secondary roles It is unusual for a companies’ proprietary information to be used inappropriately by a third party and when it happens, few report significant financial impact –Additionally, one in three report that the proprietary protection policies of their companies impact the productivity of technical teams Executive Summary: Maintaining Security

Detailed Findings Collaboration Tools

and phone are the most popular collaboration tools among BDMs and TDMs, although TDMs are more likely to use a whole range of tools Q4. From the following list, what types of communications tools does your department (BDM) (company, TDM) use to collaborate among its business partners, vendors and suppliers? Phone Fax VPNs (Virtual private networks) Portals Instant Messaging Extranets, such as via RosettaNet or Electronic Data Interchange or EDI Blogs Wikis % Use at all % Used most BDM TDM 1%- - 3%1% Q5. And which one of these tools would you say your department (BDM) (company, TDM) uses most often to collaborate among its business partners, vendors and suppliers? (ONLY LIST OF TOOLS CHOSEN IN Q4) 40%26% 53%72%

The vast majority of both BDMs, 78%, and TDMs, 85%, report their organizations use at least one publicly available collaboration tool Q6. Now I am going to read to you another list of collaboration tools. Please tell if your department (BDM) (company, TDM) has ever used any of these communications tools to collaborate among its business partners, vendors and suppliers? (ACCEPT ALL RESPONSES) Personal FTP tools, such as WS FTP or Cute FTP Web-based or public , such as Gmail or Hotmail External portals Personal Internet-based faxing, such as efax Personal IM, such as AOL or Yahoo Instant Messenger Personal Internet-based phone, such as Skype External or public Wikis External blogs None of these (VOL.) % Use at all BDMs at companies with fewer than employees are more likely to report use of public accounts, 37%, than are those at larger companies, 20%

Organizations that use publicly available tools use them frequently…. Q7. How often would you say your department (BDM) (company, TDM) collaborates with its business partners, vendors, and suppliers using these types of tools (READ LIST FROM Q6)? Base: BDM=78, TDM=85 BDM TDM % Total use publicly available tools often 94% 89% BDMs at companies with revenue over $250 million are more likely to report frequent use of public tools, 79%, than are those at companies with less revenue, 54%

And it is not limited to one tool more than others; If they say they use that tool to collaborate, more than likely they are using it often BDMTDM Personal Internet-based faxing, such as efax 69 Base=32 76 Base=38 Web-based or public , such as Gmail or Hotmail 87 Base=30 74 Base=43 Personal FTP tools, such as WS FTP or Cute FTP 97 Base=29 75 Base=47 Personal IM, such as AOL or Yahoo Instant Messenger 64 Base=25 82 Base=33 External portals 76 Base=25 83 Base=40 Personal Internet-based phone, such as Skype 83 Base=18 73 Base=26 External or public Wikis 40 Base=5 88 Base=8 External blogs - 75 Base=8 % Frequently/Occasionally Q7. How often would you say your department (BDM) (company, TDM) collaborates with its business partners, vendors, and suppliers using these types of tools (READ LIST FROM Q6)?

Many types of proprietary information is communicated with publicly available tools, with product plans or technical data being sent most frequently Q8. From the following list of examples, please tell me if your department (BDM) (company, TDM) has ever communicated any of the following types of information using these forms of collaboration tools (READ LIST FROM Q6)? (ACCEPT ALL RESPONSES) Base: BDM=78, TDM=85

And the vast majority of information is contained in standard Microsoft Office documents such as Word, Excel, PPT, etc. Q9. IF SAID YES TO ANY OF THE CHOICES IN Q8, ASK: When your department (BDM) (company, TDM) communicated this information using these collaboration tools, was the information contained within standard office based documents such as Word, Excel, PowerPoint, etc? Base: BDM=67, TDM=75 BDM TDM Total Yes: 87%

Detailed Findings Maintaining Security

While most think publicly available tools are secure, only about a third are sure and almost as many feel they are insecure; Interestingly, TDMs are more likely to feel strongly that they are secure compared to BDMs Q10. Thinking about the list of collaboration tools we have been talking about these last couple of questions (READ LIST FROM Q6), do you consider these tools to be secure? Base: BDM=78, TDM=85 BDM TDM 78% 72% Total Think Secure Total Think Not Secure 22% 28% BDMs who rank above the director/manager level, 62%, are less likely than lower ranking BDMs, 87%, to believe public tools are secure

TDMs especially are concerned about the use of publicly available tools to send confidential information Q11. How concerned are you about people within your department (BDM) (company, TDM) using these types of collaboration tools (READ LIST FROM Q6), to communicate confidential or sensitive information outside of the company? Base: BDM=78, TDM=85 BDM TDM % Total Concerned about publicly available tools 58% 72% % Total Unconcerned about publicly available tools 43% 27% BDMs who rank above the director/manager level, 73%, are more likely to be concerned than lower ranking BDMs, 50% TDMs at companies with revenue above $250 million are more likely to be concerned, 86%, than those at companies with less revenue, 66%

Nearly all report that their organizations have and frequently implement policies to control confidential information Q12. To the best of your knowledge, does your company have a specific policy about controlling the distribution of confidential or sensitive information to third parties such as designers, foundries, test, packaging, contract manufacturers, etc.? % Implemented Every time/Frequently 95% 87% Q13. IF YES: In your estimation, how often would you say this policy is actually implemented? Base=91 Base=93 BDM TDM % Total Yes 91% 93%

And these policies are most commonly designed by legal departments and CIOs, with the security office, managers and engineers playing secondary roles Q14. Please tell me how involved you believe each of the following individuals or departments are with the development of your company’s proprietary information disclosure policies regarding third parties. (READ AND ROTATE LIST) Legal Department CIOSecurity Office Project Managers Lead Engineer Design Engineer

It is unusual for a companies’ proprietary information to be used inappropriately by a third party and when it happens, few report significant financial impact Q15. To the best of your knowledge, has any of your company’s proprietary information ever been inappropriately used by a trading partner or third party such as a contract manufacturer, foundry, design house, etc.? % Severe/significant financial impact 13% 36% Q16. IF YES: How would you characterize the financial impact this incident or incidents had on your company? Base=16 Base=11 BDM TDM

One in three report that the proprietary protection policies of their companies impact the productivity of technical teams Q17. How would you characterize the impact of proprietary protection processes on the productivity of your design engineers, design managers, production managers and other valuable technical teams? BDM TDM % Total Impacted 30% % Total Not impacted 65% 63%

Majorities believe that all of these potential functions would be or currently are valuable to their company, but overwhelmingly so for “being able to manage user access rights to sensitive documents” Q18. Please tell me how valuable you believe each of the following functions would be or currently are to your company. The ability to encrypt and/or IM messaging traffic between your company and suppliers The ability to manage user access rights to sensitive documents such as product plans, contracts, etc. The ability to view whether suppliers, partners and internal employees are online or “present” for conversations, either phone, IM or % Total Valuable 88% 92% 68% 74% 71% 77%

Appendix

Revenue BDM $150 to $250 million51 $250 to $500 million12 $500 million to $1 billion9 $1 to $3 billion9 Over $3 billion8 Don’t know/refused11 Business Decision-Makers Profile Job Title BDM C-LEVEL (CEO, CFO, CMO, ETC)20 Executive Vice President or Principal3 Senior Vice President or Vice President9 Director or Manager68 # Employees 500 to ,000 to 2,4999 2,500 to 4, ,000 to 10,0003 More than 10,00012 Department Product development24 Engineering8 Manufacturing9 Operations35 Supply Chain8 Distribution10 Warehousing3 Logistics3

Revenue BDM $150 to $250 million69 $250 to $500 million7 $500 million to $1 billion5 $1 to $3 billion8 Over $3 billion2 Don’t know/refused9 Technology Decision-Makers Profile Job Title BDM CIO9 CTO1 IT department heads30 IT middle-management (MIS mgr., IT director) 56 Enterprise Architects3 Chief Security Officers1 # Employees 500 to ,000 to 2, ,500 to 4,9993 5,000 to 10,0005 More than 10,0008 Involvement in company in overseeing or helping implement collaboration technologies Significantly involved81 Somewhat involved19