1. Microsoft Business Value

2. “The newest innovations, which we label information technologies, have begun to alter the manner in which we do business and create value, often in ways not readily foreseeable even five years ago.” Alan Greenspan Chairman, US Federal Reserve July 2000 Technology is Driving Business

3. What Business Needs Create new products and services Create new products and services Reduce time to market Reduce time to market Increase customer satisfaction/retention Increase customer satisfaction/retention Increase employee productivity Increase employee productivity Reduce operational costs Reduce operational costs AGILITY AGILITY

4. Agility “As we see it, enterprise technologies need to do far more than serve up the essential ‘abilities’ – availability, reliability, scalability, and manageability; they also need to provide businesses with the agility to understand, anticipate, and respond to changing customer needs.” – Steve Ballmer

5. The Return on Agility Microsoft maximizes the business value of agility Focus on key value “levers” Your people Your people Your processes Your processes Your business relationships Your business relationships Your technical infrastructure Your technical infrastructure

6. Microsoft Business Value of Agility Deeper engagement Deeper engagement Visibility for innovation at all levels of organization Visibility for innovation at all levels of organization Flexibility to act on opportunity Flexibility to act on opportunity Respond quickly and well Respond quickly and well New revenue, venues New revenue, venues Return On Relationships Intrinsic integration, open standards Intrinsic integration, open standards Faster time and lower cost to benefit Faster time and lower cost to benefit Brokered.NET services Brokered.NET services Reinvigorate existing systems, processes Reinvigorate existing systems, processes Return On Process Unlock data for better decisions Unlock data for better decisions Drive productivity - anytime, anywhere, any device Drive productivity - anytime, anywhere, any device Build on existing skills, familiarity Build on existing skills, familiarity Return On People Return On IT Infrastructure Flexible interoperability Flexible interoperability Lower total cost of ownership Lower total cost of ownership Embrace, maximize mobility Embrace, maximize mobility Support heterogeneous environ Support heterogeneous environ ClientServicesServer Market leading manageability, performance, integrity Market leading manageability, performance, integrity

7. Employee Productivity and Quality Return on people is maximized by: Return on people is maximized by:  Increasing productivity and efficiency  Driving quality of results  Enhancing communications, collaboration  Increasing employee satisfaction and health Return On IT Return On Customer Centricity Return On Processes Return On People

8. “The business value presented by Windows 2000 Terminal Services is significant; we expect to gain considerable business advantage, both in reduced operational expenses as well as in greater agility in the marketplace.” – Allan McLaughlin, SVP and CTO “The time savings […] alone will enable our sales people to spend more time driving new business and supporting existing customers.” – Diane Byrne, Senior Vice President Sales Technology impact Increase profitability Increase profitability Improve employee satisfaction Improve employee satisfaction Improve business efficiency and lower costs Improve business efficiency and lower costs Enabling home-based and mobile workforces improves profitability and employee satisfaction Enabling home-based and mobile workforces improves profitability and employee satisfaction  Payroll savings of 35%  Attrition reduced 12% (cost avoidance of recruitment and training) Better corporate network access improves time to market, operational/real estate efficiencies Better corporate network access improves time to market, operational/real estate efficiencies  Productivity increased 10% Improved IT operations and network management drives telecom savings of 20% Improved IT operations and network management drives telecom savings of 20%  Server consolidation of 9% Result 156% IRR 7 Month Payback Pilot Rollout in 2001 Solution Windows ® 2000 Terminal Services Displaced Windows NT ® Terminal Server 4.0 Business goals

9. Return on business process is maximized by Return on business process is maximized by  Integration  Time/cost to benefit  Process efficiency  Leverage of existing assets  Fast payback Greater Efficiency, Faster Pay-Back Return On IT Return On Customer Centricity Return On Processes Return On People

10. Return On Business Processes “We knew that upgrading to Office XP was a smart move for individual as well as team productivity, but it was the REJ analysis that convinced us […] Simplifying the way people work and providing one-click access to our wealth of global information with smart tags can improve our development cycles and give us that extra margin of competitive advantage.” – Director, Desktop Engineering Technology impact Improve time to market Improve time to market Enable better access to people and information Enable better access to people and information Improve IT productivity and lower costs Improve IT productivity and lower costs Improved productivity and faster time to market Improved productivity and faster time to market  11% increase in personal and group productivity from simplified document creation and management (i.e., smart tags, task panes, styles and formatting, application and document recovery) Lower costs and greater operational efficiency Lower costs and greater operational efficiency  18% lower cost to build and maintain standard DT  25% fewer calls to the help desk through document recovery and error reporting Result 138% IRR Accelerated Deployment Solution Microsoft Office ® XP Displaced Office 97 as desktop standard Business goals Large International Pharmaceutical Co

11. More Effective Relationships, Opportunity Return on customer centricity is maximized by Return on customer centricity is maximized by  Stronger customer connections  Responsiveness to needs, opportunities  More opportunities with existing customers  New customers, channels Return On IT Return On Customer Centricity Return On Processes Return On People

12. Return On Customer Centricity “Using.NET Enterprise Servers in 2000, we delivered 99.97% software availability for our hosted Global 2000 customers, and we developed the software faster than on a Unix- based alternative. Our use of open standards, such as eXtensible Markup Language (XML) and Simple Open Access Protocol (SOAP), promotes easy integration with other companies and programs, improves our enterprise software design and ultimately is a reason why we lead our market.” − David Story, Vice President of Engineering Technology impact Respond to real customer issues Respond to real customer issues Increase customer satisfaction Increase customer satisfaction Platform cost-effectiveness Platform cost-effectiveness 20% growth in new customers from improved integration and interoperability 20% growth in new customers from improved integration and interoperability 100% maintenance of SLAs of 99.5% uptime 100% maintenance of SLAs of 99.5% uptime 28% faster solution development time for Allegis' customers 28% faster solution development time for Allegis' customers  Faster time to market, development cycle 27% faster configuration and deployment of customer solutions versus a Unix-based platform 27% faster configuration and deployment of customer solutions versus a Unix-based platform  Number of Web hosting servers decreased  Servers per admin up due to greater manageability Result Instant agility and best of breed PRM Solution Microsoft.NET platform Displaced UNIX solution Business goals

13. Robust Abilities and Flexibility Return on IT is maximized by Return on IT is maximized by  Comprehensive and powerful  Core abilities  Security and integrity  Interoperability  Total cost of ownership Return On IT Return On Customer Centricity Return On Processes Return On People

14. Return On IT Infrastructure “What we accomplished […] is nothing short of amazing; we migrated to a completely functional e-commerce site that met our specifications for 99.6% uptime and database integration […] while lowering operational costs […] We gained market agility and […] Our customers are happier now that they can buy our entire product range online, and management is excited by the highly effective use of capital and human resources.” – Stan Antonuk, Vice President of Technology Technology impact Increase revenue Increase revenue Improve customer satisfaction Improve customer satisfaction Greater operational efficiencies Greater operational efficiencies Result 692% IRR 2 Month Payback 5% incremental revenue growth Solution Windows 2000 Advanced Server, SQL Server ™ 2000 Displaced Unix-based solution Business goals Revenue growth (incremental) increased 5% Revenue growth (incremental) increased 5%  Time-to-market: 6 weeks Improved customer satisfaction Improved customer satisfaction  TV products integration up 100%; Speed-to-market improved 65%; Availability increased to 99.966 Greater operational efficiencies Greater operational efficiencies  IT operating expenses and Implementation costs down 43%; Developer productivity up 29%  Licensing costs (SQL 2000) reduced 98%  Database consultants reduced by 2 FTEs

15. Microsoft maximizes the business value of agility

16. Resources Microsoft.com/value Microsoft.com/value Microsoft.com/Windows2000 Microsoft.com/Windows2000 Value@microsoft.com Value@microsoft.com Value@microsoft.com