1. © 2005 Microsoft Corporation. All rights reserved. New South Wales Government Road Show FY06 NAMS March / April 2006

2. © 2006 Microsoft Corporation. All rights reserved. Page 2 What we want to achieve in this session?  Inform about the results of NAMS after 3 years  Invite you to share your experience with others  Discuss potential changes and enhancements for the future  and especially collect feedback from you helping us to make NAMS even more valuable for NSW Government in the future

3. © 2006 Microsoft Corporation. All rights reserved. Page 3 Improving NAMS NAMS Results after 3 Years NAMS Background NSW Agreement for Microsoft Software Software Assurance Benefits under NAMS Services, Workshops, Support and Others Next Steps

4. © 2006 Microsoft Corporation. All rights reserved. Page 4 Improving NAMS NAMS Results after 3 Years NAMS Background NSW Agreement for Microsoft Software Software Assurance Benefits under NAMS Services, Workshops, Support and Others Next Steps

5. © 2006 Microsoft Corporation. All rights reserved. Page 5 Goals with NAMS NSW Government goals: Reduction in IT costs through umbrella agreement with volume take-up of 60,000 desktopsin year 1 90,000 desktopsin year 2 120,000 desktopsin year 3 Significant price advantage over GOLP Predictability through fixed price for 5 years Easier license management & reduced risk of non compliance Costs based on the number of PCs, not based on volumes of individual products Flexibility for agencies Individual decision by agencies Annual opportunity to adjust commitment based on individual requirements Added by Microsoft after contract was signed: Set of value adding benefits like Training Voucher, eLearning, Technet, free telephone support for server technology, …

6. © 2006 Microsoft Corporation. All rights reserved. Page 6 NAMS in brief NAMS = New South Wales Agreement for Microsoft Software Open for NSW State Government NSW Local Government NSW managed federal agencies Not-For-Profit Organisations Co-ordinated by NSW Dept of Commerce Five year agreement Enrolments for organisations last for three years or more

7. © 2006 Microsoft Corporation. All rights reserved. Page 7 How NAMS works?

8. © 2006 Microsoft Corporation. All rights reserved. Page 8 NAMS Pricing All prices are MSFT R.R.P. excluding GST

9. © 2006 Microsoft Corporation. All rights reserved. Page 9 Improving NAMS NAMS Results after 3 Years NAMS Background NSW Agreement for Microsoft Software Software Assurance Benefits under NAMS Services, Workshops, Support and Others Next Steps

10. © 2006 Microsoft Corporation. All rights reserved. Page 10  > 180 individual customers  92,500 desktops  Saving FY06 for NSW Government > $A 7.5 m  NAMS benefits of more than $A20m to date  2,530 Training Vouchers  >400 Server Support Calls  925 copies of Technet Plus  eLearning for Operating System, Desktop and Server  Right to procure PCs with Windows XP Home  Deployment Workshops for >100 employees  Customers very satisfied with value, ease, flexibility & predictability  Interesting: Customers prefer Subscription  Customers ask for clarity above 2008  Additional customers want to join now  Customers request more products / solutions being available  Customers ask for change of some rules  Customers ask for Services & Support from Microsoft NAMS Snapshot March 2003

11. © 2006 Microsoft Corporation. All rights reserved. Page 11 NAMS outcomes vs. plan  Why are outcomes behind plan?  Contract signed on June 22 nd 2003  State Government restructure after State Election in 2003  NSW Health restructure  Some components under NAMS didn’t reflect on how customers adopt technology

12. © 2006 Microsoft Corporation. All rights reserved. Page 12 How NAMS compares to other Government EAs  Global comparison  No other EA worldwide offers technology options with unlimited access for a wide range of server and desktop applications  NAMS Operating model (Subscription)  All technology costs relate to number of desktop PCs  No requirement to count and report product volumes and product classes annually  No requirement to procure base licenses in addition to EA costs  No annual True Up costs  Unlimited usage of covered technology at fixed price  NAMS Ownership model (Software Assurance)  Largely similar to other EAs  Requirement to procure additional base licenses at the end of 3 rd year (SA plus L)

13. © 2006 Microsoft Corporation. All rights reserved. Page 13 Improving NAMS NAMS Results after 3 Years NAMS Background NSW Agreement for Microsoft Software Software Assurance Benefits under NAMS Services, Workshops, Support and Others Next Steps

14. © 2006 Microsoft Corporation. All rights reserved. Page 14 Potential ways into the future with NAMS NAMS model 2003 - 2008 Extend NAMS as it is for future years Let NAMS run out in 2008 Replace NAMS by an all-inclusive offering Redesign NAMS to reflect new solutions

15. © 2006 Microsoft Corporation. All rights reserved. Page 15 Extended NAMS structure 01.07.2003 01.07.2004 01.07.2005 01.07.2006 01.07.200701.07.2008 Enrol in June / July 2003 Enrol in June / July 2004 Enrol in June / July 2005 + 1 year Review NAMS 01.07.2009 01.07.201001.07.2011 Enrol in June / July 2006 Enrol in June / July 2007 Enrol in June / July 2008 + 1 year Review NAMS Today Extension

16. © 2006 Microsoft Corporation. All rights reserved. Page 16 Desktop Applications: Windows, Office, Project, Visio Core Infrastructure: Windows, Exchange Advanced Infrastructure: MOM, SMS, SPS, SQL Making additional Products & Solutions available under NAMS Biz Apps: EPM, CRM, Doc Management, Biz Planning, Integrated Finance, Workflow, Biz Apps Integration, Adv. Collaboration NAMS Today Extended NAMS Product Mix

17. © 2006 Microsoft Corporation. All rights reserved. Page 17 Grouping Solutions and Products to address business pain

18. © 2006 Microsoft Corporation. All rights reserved. Page 18 Core Element NAMS entry point around Office & Windows Windows OS Enterprise Edition Upgrade including Windows Defender (Anti Spyware) WinPE (Windows Pre-Installation Environment) Virtual PC Express (original OS + 1 guest OS) Full Volume HD Encryption (theft protection) Windows Fundamentals (support for older HW) Windows CAL & Exchange CAL Office Standard or Professional Windows TS CALs for 15% of desktop count Questions: Mix of Office Standard and Professional? Increased rate of Windows TS CALs?

19. © 2006 Microsoft Corporation. All rights reserved. Page 19 Basic Information Worker Desktop products for increased desktop productivity Visio Professional FrontPage OneNote Infopath Forms Server Comment: Part of replacement of Non Office Apps Questions: Should Visual Studio be included? Replacing complex “usage calculation” in NAMS by buy-out restriction?

20. © 2006 Microsoft Corporation. All rights reserved. Page 20 Enterprise Project Management Products to manage single and multi-project environments Project Standard or Professional Project Server & CALs Comment: Part of replacement of Non Office Apps Questions: Should Visual Studio be included? Replacing complex “usage calculation” in NAMS by buy-out restriction?

21. © 2006 Microsoft Corporation. All rights reserved. Page 21 Workflow Management Business solution to manage and administer business-wide workflows Workflow Manager & CALs Forms Server Graphical workflow design Client InfoPath is part of Office Professional Questions: Should Visual Studio be included?

22. © 2006 Microsoft Corporation. All rights reserved. Page 22 Business Planning & Scorecards Enterprise solution to manage the business planning process and to administer business scorecards Business Central & CALs Business Scorecard Manager & CALs Questions: Should Visual Studio be included?

23. © 2006 Microsoft Corporation. All rights reserved. Page 23 Customer Relationship Management Technology for Managing internal or external customer relations CRM Server CRM Professional Questions: Should Visual Studio be included?

24. © 2006 Microsoft Corporation. All rights reserved. Page 24 Infrastructure Technology for basic File Sharing & Print, Application Platforming and Email Windows Std / Ent Server Exchange Std / Ent Server Speech Server (for Exchange) Questions: Should Virtual Server be included?

25. © 2006 Microsoft Corporation. All rights reserved. Page 25 Security Technology for Identity Integration & Management, Business Firewall, Server Anti Virus and Server Anti Spam Identity Integration Server ISA Server Antigen CALs for Exchange SharePoint Instant Messaging Antigen Spam Manager for Exchange Question: Microsoft is going to release a desktop security offering for home users. Should such an offering be included in NAMS?

26. © 2006 Microsoft Corporation. All rights reserved. Page 26 Deployment & Management Technology for Desktop Deployment and Management and Server Management System Management (Server & CALs) Microsoft Operations Manager (Management & Server) System Centre Data Protection (Management & Server) Comment: Part of replacement of Core Server Option

27. © 2006 Microsoft Corporation. All rights reserved. Page 27 Communication Technology for Live Meetings and integrated Multi Channel Communication including Telephony Integration & VoIP Office Communicator Live Communication (Server, CALs) Telephony CALs

28. © 2006 Microsoft Corporation. All rights reserved. Page 28 Data Management & Business Intelligence SQL Server Database Management SQL Server Standard / Enterprise 32 / 64 bit Based on CALs / based on processors Questions: Should Visual Studio be included?

29. © 2006 Microsoft Corporation. All rights reserved. Page 29 Collaboration Technology for internal and external Collaboration and Business Portal Ad Hoc Collaboration (Groove) SharePoint Portal (Server & CALs) Content Management Server Comments: Part of replacement of Core Server Option Questions: Should Visual Studio be included?

30. © 2006 Microsoft Corporation. All rights reserved. Page 30 Business Application Integration Technology to connect different business application, i.e. Finance and Document Management BizTalk Server & all available adapters ERP Systems, i.e. SAP 4.x and 6.20, JD Edwards, Peoplesoft, Oracle Applications 3 rd party databases i.e. Oracle, DB2 3 rd party CRM systems, i.e. Siebel, ClarifyCRM Other Business Applications, i.e. Windows SharePoint Services, Tibco Rendezvous & EMS, Websphere MQ 2.0 Structured Files, i.e. Host Applications & Host Files (IBM mainframe), Base EDI Questions: Should Visual Studio be included? Should MENDOCINO be included in this option?

31. © 2006 Microsoft Corporation. All rights reserved. Page 31 External Connectors Technology to enable external biz apps communication & collaboration for All external connectors Customer Relationship Management Exchange & Live Communication Server Business Scorecard & Enterprise Project Management SharePoint Portal Server Windows Server & Web Server & Terminal Server Should Visual Studio be included?

32. © 2006 Microsoft Corporation. All rights reserved. Page 32 Core Financials and Asset Management Business Applications (Microsoft Dynamics) for Core Financial & Asset Management Advanced Financials Procurement and Sales Customisation Advanced Financials Procurement & Sales Customisation Tools

33. © 2006 Microsoft Corporation. All rights reserved. Page 33 General questions about NAMS Structure Fact: 90% of NAMS customers run Infrastructure Server 75% of NAMS customers run SQL Server Question: Should these options be included in the Core for all customers? If so, should Visual Studio also be included in the Core? Element Annual Costs Operating Annual Costs Ownership Core Professional $A 260 $A 230 Infrastructure Server Option $A 18 $A 12 SQL Server Option $A 60 $A 39 Total $A 338 $A 281

34. © 2006 Microsoft Corporation. All rights reserved. Page 34 Advantage Slightly lower price Disadvantage Requirement to count licenses and product classes and buy base licenses Expensive to increase desktop count Expensive to add new options, technologies Desktop count can grow, but not shrink Current usage 25% Advantage Cost efficient entry in NAMS w/o previous EA or SA No requirement to count licenses Desktop count can grow and shrink Disadvantage Theoretically 9 years to qualify for Ownership at no extra costs Current usage 75% NAMS Operating Model (Costs based on Subscription) NAMS Ownership Model (Costs based on Software Assurance) Several customers request moving from Ownership to Operating because of ease, flexibility, predictability & unlimited access and because of lower long-term costs Question: Would you consider moving from Ownership to Operating to take advantage of these benefits? NAMS Ownership and NAMS Operating

35. © 2006 Microsoft Corporation. All rights reserved. Page 35 Continuity to current NAMS model

36. © 2006 Microsoft Corporation. All rights reserved. Page 36 And what would the costs be? Will depend on final structure (  your feedback) Some ideas for your planning: Costs for existing components similar to current model Most new components potentially between $A20 and $A50 Enterprise Business Applications higher Special conditions for entire Groups and the Lot

37. © 2006 Microsoft Corporation. All rights reserved. Page 37 Improving NAMS NAMS Results after 3 Years NAMS Background NSW Agreement for Microsoft Software Software Assurance Benefits under NAMS Services, Workshops, Support and Others Next Steps

38. © 2006 Microsoft Corporation. All rights reserved. Page 38   Enterprise Source License Program   Home Use Program   Employee Purchase Program   Corporate Error Reporting   Extended Hotfix Support incl. Desktop Apps.   Procurement of PCs with XP Home   24x7 Telephone Support   Unlimited Internet Support   Cold Back Up for Disaster Recovery   TechNet Plus More benefits for NAMS Customers   Services Vouchers for Desktop Deployment Planning and other standard Services   eLearning   Training Vouchers to skill up IT Pros

39. © 2006 Microsoft Corporation. All rights reserved. Page 39 Benefits for NAMS customers: Addressing Customer Pains with NAMS benefits Customer Pain Benefits Enhanced Support Customers want “real maintenance” SA supported only limited business hours and did not cover all products and editions Overlap with Premier Support contracts Payment of fees for Extended Hotfix Support 24x7 Problem Resolution Support 24x7 phone support Coverage of all server editions and desktop products Integration with Premier Support Unlimited web support for servers Extended Hotfix Support Annual fees included in SA and covers all products Deployment Services Own upgrade licenses that are not deployed Manually deploying upgrades and patches Security, stability and support concerns from old technology Desktop Deployment Planning Assistance for NAMS customers

40. © 2006 Microsoft Corporation. All rights reserved. Page 40 NAMS Benefits: Training Vouchers & Support Number of Desktops>250>2,500>6,000 Training Days304575 Desktop Support Calls0512 NAMS OptionInfrast.SQLDeploym.Security # Desktops for 1 Server Support Call~ 150~ 250~ 400~ 550 Server Web Supportunlimited  Amount of training vouchers & support calls over 3 years  Desktop Support:  1 support call for every 500 desktops  Server Support:  1 support call for every customer  1 support call for every $A30k on servers & CALs  Calls are transferable between desktop and server

41. © 2006 Microsoft Corporation. All rights reserved. Page 41 NAMS Benefits: Service Days For NAMS Core Element Number of Desktops~ 200~ 500~ 2,000~ 4,000 Service Days13610  Amount of service days over 3 years  Exact amount is calculated on value of desktop applications  Training Vouchers can be exchanged for Service Days  2 Training Vouchers for 1 Service Day  Maximum 20 Training Vouchers for 10 Service Days  Potential use Service Days against Packaged Services catalogue For NAMS Core Element + NAMS Basic Information Worker + NAMS Enterprise Project Management Number of Desktops~ 150*~ 350~ 1,500~ 3,000 Service Days13610

42. © 2006 Microsoft Corporation. All rights reserved. Page 42 Improving NAMS NAMS Results after 3 Years NAMS Background NSW Agreement for Microsoft Software Software Assurance Benefits under NAMS Services, Workshops, Support and Others Next Steps

43. © 2006 Microsoft Corporation. All rights reserved. Page 43 NAMS: Packaged Services  Packaged On Site Services designed for certain NAMS options  Take Up of services in line with anniversary process; Microsoft Consulting Services working with customers to clarify dates  Potentially use of Training Vouchers for certain packaged services

44. © 2006 Microsoft Corporation. All rights reserved. Page 44 NAMS: Customer Workshops  Class Room Workshops at Microsoft designed to align with certain NAMS options  Take Up of workshops in line with anniversary process; Microsoft Consulting Services working with customers to clarify dates

45. © 2006 Microsoft Corporation. All rights reserved. Page 45 NAMS: Support Options  Take Up of Support in line with anniversary process

46. © 2006 Microsoft Corporation. All rights reserved. Page 46 Others Would it be of value to extend NAMS even further for i.e. Mobile devices like PocketPCs or SmartPhones TabletPCs Microsoft Hardware (Keyboards, Mice) XBOX for i.e. Community Centres Managed Desktop Services Packaged Implementation Services

47. © 2006 Microsoft Corporation. All rights reserved. Page 47 Improving NAMS NAMS Results after 3 Years NAMS Background NSW Agreement for Microsoft Software Software Assurance Benefits under NAMS Services, Workshops, Support and Others Next Steps

48. © 2006 Microsoft Corporation. All rights reserved. Page 48 From here to an extended NAMS model TopicWhatTime NSW Road Show Collect feedback about NAMS and input for potential enhancements March 2006 Internal preparation Analyse feedback and work out draft for enhanced model March 2006 Discussion with NSW Dept of Commerce Adjust existing contract to reflect requested changes March / April 2006 NAMS Road Show 2 hour breakfast session in 9 weeks at the same location May 2006 Signing Enrolments Customers can transition from current model to enhanced model June / July 2006

49. © 2005 Microsoft Corporation. All rights reserved.