2. Reduce IT Costs and Complexity Exploring Solutions That Fit Your Needs Name Title Department

3. Agenda Priorities Priorities IT Spending and TCO IT Spending and TCO Operations – The Manual Reality Operations – The Manual Reality Reducing Operational Costs Reducing Operational Costs The Microsoft Solution The Microsoft Solution Case Studies and Demo Case Studies and Demo Roadmap to Solution Roadmap to Solution

4. EffortCostRisk SecurityAvailabilityManagementAutomation OperationsConsolidationAutomation IntegrationManagement Priorities

5. IT Spending IT accounts for nearly 50% 1 of all business equipment investment IT accounts for nearly 50% 1 of all business equipment investment Average IT spending increase in 2000 was 15-20%. Next 12 months, 3.3% 2 Average IT spending increase in 2000 was 15-20%. Next 12 months, 3.3% 2 CIO’s Top 3 Goals 3 CIO’s Top 3 Goals 3 1) Reduce Costs and Complexity (TCO) 2) Promote Information Security 3) Support Innovation 1 IT Doesn’t Matter, Harvard Business Review, May 2003 2 CIO Magazine survey, May 2003 3 Gartner survey of 600 CIOs

6. IT Spending – Opposing Forces $ Billions Source: McKinsey Actual IT Spend 15% CAGR Growth Expected Total IT Spend Growth During Bubble Source: Accenture Desired Mix

7. Hardware and Software Downtime TCO: More Than Just Hardware and Software Direct(Budgeted) Indirect(Unbudgeted) Gartner’s TCO Chart of Accounts Day-to-Day Operations End User Operations Administration Operational Costs

8. Operations – The Manual Reality Manual tasks drive costs Source: IDC 2002, Microsoft Primary Quantitative Research. 400, 30 min phone surveys of IT professionals in data centers with 25 or more servers Over 60% of TCO over a 5 year period driven by manual task costs Staff are spending their time on manual tasks instead of increasing value 0 10 20 30 40 50 6070 Staff Costs DowntimeTrainingSoftwareHardware 62%14%25% 53%24%23% 54% 17%29% 56% 17%28% 58% 18%24% 60% 16%24% 0%10%20%30%40%50%60%70%80%90%100% Percent of Reponses Security Mgmt Network Event Performance Storage Change/Config Degree of Automation ManualScripts Automated Tools

9. Methods For Increasing Operational Efficiency Simplify Management Simplify Management  Reduced cost of managing servers  Reduced cost of managing clients  Reduced time to resolution Unify Environment Unify Environment  Less training required  Less administration required  Easier development and deployment Consolidate Infrastructure Consolidate Infrastructure  Fewer systems to support  Fewer specialized skills required  Reduced hardware and software costs

10. Operational Efficiency – An Ongoing Process Management Lifecycle – Maturity Model Distinct steps along journey to continuous improvement Technology - Designed together Best Practices - improving existing environment Server Consolidation Management Unix Migration NT 4 Migration

11. Increasing Operational Efficiency with Microsoft Do More with Less Server Consolidation Management Unix Migration NT 4 Migration

12. A major business unit of the General Electric Company, GE Medical Systems offers high- quality medical technology, services, and productivity solutions to the healthcare community. Mergers in the 1990’s created a nearly unmanageable IT infrastructure. By 2001 GE Medical had over 900 NT4 servers in 70 separate domains as well as various Unix applications. Business challenges 40,000 users, 35 IT staff 40,000 users, 35 IT staff Current infrastructure disconnected and unmanageable Current infrastructure disconnected and unmanageable Needed centralized control of servers, directories, policies, applications and clients Needed centralized control of servers, directories, policies, applications and clients Needed to improve operational efficiency and reduce complexity to reduce costs Needed to improve operational efficiency and reduce complexity to reduce costs Needed a solution that could co-exist with legacy Unix apps Needed a solution that could co-exist with legacy Unix apps Customer

13. Solution GE Medical Systems decided to move to Microsoft Windows Server 2003 Standard Edition and set up a single-forest Active Directory service infrastructure with only 4 domains (vs. 70). The new system interoperates with existing Unix apps. Results Able to do more with less Single directory structure Single directory structure Ability to manage all resources from a central location Ability to manage all resources from a central location Global view of all users and resources Global view of all users and resources Standardized policies across enterprise Standardized policies across enterprise Fewer servers to maintain Fewer servers to maintain Previously manual process completely automated Previously manual process completely automated Able to patch servers without going on site Able to patch servers without going on site Do not need an onsite administrator at every location Do not need an onsite administrator at every location Improved Operational Efficiency

14. Customer Feedback “With Windows Server, we’re building a more automated, robust system that is more secure, stable, and manageable. Once this is in place, we’ll be able to administer our environment from a central location and be able to turn on a dime.” Ron Brahm Global Infrastructure Program Manager GE Medical Systems

15. Manage Your Infrastructure With Microsoft Reduce TCO and deliver value to your business Reduce TCO by increasing management process efficiency Reduce TCO by increasing management process efficiency Improve interoperability to reduce the cost of managing systems across platforms Improve interoperability to reduce the cost of managing systems across platforms Reduce the cost of deploying servers, applications and patches into the datacenter Reduce the cost of deploying servers, applications and patches into the datacenter Free up IT resources for the implementation of new business solutions through automation of manual tasks Free up IT resources for the implementation of new business solutions through automation of manual tasks Utilize proven methodologies and best practices Utilize proven methodologies and best practices  Microsoft Operations Framework (MOF)  Microsoft Solutions for Management (MSM)

16. Patterns And Practices: MOF Capacity Management Availability Management Financial Management Workforce Management Service Continuity Management Service Level Management Service Desk Incident Management Problem Management Change Management Configuration Management Release Management Service Monitor & Control Security Administration Network Administration System Administration Job Scheduling Storage Management Print/Output Management Directory Services Administration SLAReview OperationsReview ReleaseApprovedReview ReleaseReview

17. Microsoft Solutions For Management Ops Assessment Ops Assessment Security Patch Mgt Security Patch Mgt Service Monitoring Service Monitoring New Application Deployment New Application Deployment Business Desktop Deployment Business Desktop Deployment Windows Server Administration Windows Server Administration Windows Server Deployment Windows Server Deployment Integrated people, process and technology Integrated people, process and technology Targeted customer scenarios Targeted customer scenarios Engineered, tested and proven Engineered, tested and proven Increases Business Value of IT Increases Business Value of IT Reduces cost of operating Windows Reduces cost of operating Windows Reduces cost of managing Window clients Reduces cost of managing Window clients Provides resource agility Provides resource agility Microsoft Operations Framework (MOF) Microsoft Operations Framework (MOF) Management Technologies Management Technologies Available Offerings:

18. BP p.l.c. is the holding company of one of the world's largest petroleum and petrochemicals groups. Its main activities include exploration and production of crude oil and natural gas; refining, marketing, supply and transportation of petroleum products; and manufacturing and marketing of petrochemicals. Approx 100,000 employees in 100 countries Business challenges Achieve business-critical levels of performance from its new Microsoft environment. Achieve business-critical levels of performance from its new Microsoft environment. Ensure that in the long-term, any modifications and additions to systems were governed by a robust change management system. Ensure that in the long-term, any modifications and additions to systems were governed by a robust change management system. Improving the reliability and security of BP’s “always on” digital environment through clearly defined infrastructure standards and metrics Improving the reliability and security of BP’s “always on” digital environment through clearly defined infrastructure standards and metrics Customer

19. Solution To support the key areas of its Digital Business Strategy, including change management, incident management, disaster recovery and supplier management, BP was introduced to the Microsoft Operations Framework (MOF), an initiative that has adopted the ITIL philosophy and applied it to Microsoft’s products and technologies. Results Able to do more with less Improved services delivery with reduced risks Improved services delivery with reduced risks Design IT services to meet business goals Design IT services to meet business goals Design and build for operability Design and build for operability Greatly Improved Manageability Reduced the total cost of ownership Reduced the total cost of ownership Increased reliability, availability, and scalability of production systems Increased reliability, availability, and scalability of production systems

20. Customer Feedback “MOF provided a very useful framework against which to benchmark our own infrastructure management processes. It gave us guidance, direction, and–above all–it gave us a degree of assurance that we were doing the right things.” “MOF provided a very useful framework against which to benchmark our own infrastructure management processes. It gave us guidance, direction, and–above all–it gave us a degree of assurance that we were doing the right things.” Allen Lewis Chief of Staff for Digital Business Operations BP

21. Migrating From NT4.0 Creating a Unified Environment Best practices, examples and tools available for migration Best practices, examples and tools available for migration Significantly increase efficiency of people, processes and infrastructure Significantly increase efficiency of people, processes and infrastructure Significantly reduce costs through consolidation on Windows 2003 Significantly reduce costs through consolidation on Windows 2003 Reduce downtime over 50% Reduce downtime over 50% Reduce expensive file recovery 90% Reduce expensive file recovery 90% Eliminate of 80% of reboots Eliminate of 80% of reboots IIS: 487% faster, File/Print: 64-148% faster, AD: 345% faster IIS: 487% faster, File/Print: 64-148% faster, AD: 345% faster

22. Business challenges With this model each district was responsible for finding qualified administrators – expensive and difficult With this model each district was responsible for finding qualified administrators – expensive and difficult Domains and systems were configured in a variety of ways Domains and systems were configured in a variety of ways Servers went unpatched and unmaintained Servers went unpatched and unmaintained The system had become unstable and unmanageable The system had become unstable and unmanageable The KDE needed to improve manageability and security for the entire KETS environment The KDE needed to improve manageability and security for the entire KETS environment Wanted to retain the autonomy of the districts Wanted to retain the autonomy of the districts KDE maintains 1,400 schools in 176 districts. The Kentucky Education Technology System (KETS) was deployed over the last decade to provide equitable access to technology for all public school students and teachers, K-12. Over 700,000 users 4400 Servers – 3500 NT4 Servers 300 NT4 Domains in a very decentralized management model Kentucky Department of Education Customer “The education business model needs to remain structured around educating Kentucky's children, not around building self-sustaining IT super-centers. We need to centralize the management of core network resources while preserving the autonomy required for local administration at the district level.” - Phil Coleman, Director of School Network Services at KDE

23. Solution To address these challenges, KDE is upgrading the KETS domain infrastructure to Active Directory running under the Microsoft Windows Server 2003 operating system. They’ve designed the network with a separate domain for each district for autonomy and a root domain for centralized control of core network services. Results Significantly Improved Operational Efficiency and reduced TCO “Schools need to focus their limited resources on educating children, and will be able to do so more effectively as we assume management of enterprise-wide IT services. …we’ll no longer need to spend 80 percent of our time fixing what gets broken.” - Phil Coleman, Director of School Network Services at KDE Reduction in operational costs and overall TCO Reduction in operational costs and overall TCO Reduction in complexity of operations Reduction in complexity of operations Stabilization of the KETS networking environment Stabilization of the KETS networking environment Dramatic increase in overall network security Dramatic increase in overall network security

24. Customer Feedback “We see our migration as more of a business upgrade than a technical one. By eliminating complexity at the district level, we have enabled districts to reduce costs and increase their focus on education. Our team can shift to a proactive mode of operation, which will increase security and network stability yet decrease our workload. We’ll be able to focus on meeting new and emerging business requirements that will improve education instead of spending all our time keeping our existing environment running.” Phil Coleman Director of School Network Services KDE

25. Video

26. Solution For Unix Migration Unified Environment Best practices and migration tools Best practices and migration tools  Microsoft Solution for Unix Migration Run Unix apps on Windows Run Unix apps on Windows Port Unix apps to Windows Port Unix apps to Windows Significantly lower TCO Significantly lower TCO Thriving and broad ecosystem Thriving and broad ecosystem The lowest risk platform for the future The lowest risk platform for the future

27. Safeway Inc. is one of the largest food and drug retailers in North America. Business challenges Existing system was expensive to maintain and difficult to manage Existing system was expensive to maintain and difficult to manage Very few new applications available for platform Very few new applications available for platform Little to no integration between apps Little to no integration between apps Needed a larger pool of development talent Needed a larger pool of development talent Needed to improve agility Needed to improve agility Needed 7x24 availability Needed 7x24 availability Needed to reduce IT cost Needed to reduce IT cost Nearly 1800 Stores Nearly 1800 Stores Each store requires an In-Store Processor server for mission critical apps Each store requires an In-Store Processor server for mission critical apps Original In-Store Processors were SCO Unix servers Original In-Store Processors were SCO Unix servers 18,000 employees needing access 18,000 employees needing access Customer

28. Solution In order to have the most robust, dependable, and manageable platform, Safeway is migrating its In-Store Processor to the Microsoft Windows Server 2003 operating system. Safeway is deploying an In-Store Processor based on Windows Server 2003, running on an IBM X335 server, in each of its nearly 1,800 stores. Results Able to find or quickly develop the latest applications that fit their specific need Able to find or quickly develop the latest applications that fit their specific need Able to operate and integrate applications on a single platform Able to operate and integrate applications on a single platform Able to provide new services to customers not possible with Unix Able to provide new services to customers not possible with Unix Able to deploy and manage applications centrally Able to deploy and manage applications centrally Remote administration of systems reduces on-site costs Remote administration of systems reduces on-site costs New functionality but no new staff required New functionality but no new staff required Lower hardware costs Lower hardware costs Increased Agility Reduced Operational Costs

29. Customer Feedback “We can’t have a technician sitting in every store. The ability to manage and update these Windows-based servers remotely, securely and cost- effectively is a big benefit for us.” John Criddle Vice President Mid-Range Engineering & Technical Support Safeway “Windows Server 2003 will become the target for all new deployments at Safeway. It gives us room to grow without sacrificing performance. …we can cut our time-to-benefit, taking advantage of the most powerful commercial applications as soon as they become available.” Peter Bigley Vice President of Infrastructure Engineering Safeway

30. Video

31. Infrastructure Consolidation Reduced Operational Overhead Reduce a vast array of operational costs Reduce a vast array of operational costs  From administration to real-estate Windows 2003 built for consolidation Windows 2003 built for consolidation Reduce File and Print servers Reduce File and Print servers Reduce Messaging servers Reduce Messaging servers Scale up Database servers with SQL Scale up Database servers with SQL Collapse domain and reduce domain controllers with Active Directory Collapse domain and reduce domain controllers with Active Directory Reduce number of and improve scalability of Web servers Reduce number of and improve scalability of Web servers

32. First American Title Insurance Company is the second largest title company in the United States, with 27 percent of the market. The company has roughly 15,000 employees and generates more than U.S.$3 billion in annual revenues. Growing primarily by acquisition, by the end of the 1990s they were supporting nearly 50 different title and escrow systems; a mix of DOS, Unix, Novell and Windows Business challenges Cost of supporting these system continued to escalate Cost of supporting these system continued to escalate Reporting was difficult and resource intensive Reporting was difficult and resource intensive Very slow reaction times Very slow reaction times Desired to roll 50 systems into one - on a single server Desired to roll 50 systems into one - on a single server Designed a new system called FAST (First American Software Technology) on Windows Server technology Designed a new system called FAST (First American Software Technology) on Windows Server technology Halfway through rollout the original 8 processor server could not handle the workload Halfway through rollout the original 8 processor server could not handle the workload Customer

33. Solution After considering various options including splitting the FAST system up or rearchitecting on Unix, both of which would have been extremely costly and time consuming, First American decided to scale their server up to a 32 processor Unisys E7000 running Windows DataCenter Server without delay of the project. Results Significantly Reduced Business Costs The FAST system promises to save First American $100mil per yr! The FAST system promises to save First American $100mil per yr! Improved Operational Efficiency 50 systems consolidated into one on a single server 50 systems consolidated into one on a single server “We’ll save 100,000 hours of IT effort per year—equivalent to 50 full-time people. Total IT cost savings alone are expected to be at least $5 million per year” “Consolidating to one system significantly increases our operational efficiency.” - Larry Godec, CIO – First American Title

34. Customer Feedback “The entire business now operates on a single system—with all data maintained on a single server. This makes supporting business initiatives like consolidating back office processing far less costly and complex.” “We’re running our business on Windows 2000 Datacenter Server and the Unisys ES7000. FAST is the most mission-critical application that we have, and it’s meeting our business needs.” Larry Godec Vice President and Chief Information Officer First American Title Insurance Company

35. First American Title Video

36. Summary IT Operations is a major contributor to TCO IT Operations is a major contributor to TCO Increasing operational efficiency reduces costs Increasing operational efficiency reduces costs Three key ways to increase operational efficiency Three key ways to increase operational efficiency  Simplify IT management  Unify your environment  Consolidate your infrastructure Microsoft’s solution Microsoft’s solution  Utilize Microsoft’s Solutions for Management  Migrate from NT4 and Unix to Windows 2003  Consolidate systems and servers on Windows 2003 To take the next step, analyze your environment and get engaged with a Microsoft Certified Partner or MCS To take the next step, analyze your environment and get engaged with a Microsoft Certified Partner or MCS You will see, as many other companies have, a significant increase in operational efficiency You will see, as many other companies have, a significant increase in operational efficiency

37. Roadmap To Increasing Operational Efficiency Visit the URLs on the following Resources slide for more detailed information Visit the URLs on the following Resources slide for more detailed information Ask these questions Ask these questions  Do we have any NT4 or legacy Unix apps?  Do we have any systems or servers that could be consolidated?  Are there any manual management or operations processes that could be improved or automated? Engage with a Microsoft Certified Partner or MCS to help you analyze the efficiency gains you could realize with Windows 2003 and the.NET family Engage with a Microsoft Certified Partner or MCS to help you analyze the efficiency gains you could realize with Windows 2003 and the.NET family Schedule an assessment Schedule an assessment  MOF Assessment  Microsoft Management Assessment  Unix Migration Assessment  Consolidation QuickStart

38. Operational Efficiency Resources For more information about Operational Efficiency: http://www.microsoft.com/windowsserve r2003/momentum/oppefficiency.mspx http://www.microsoft.com/windowsserve r2003/momentum/oppefficiency.mspx Management Solutions Information and to get the Windows Platform Manageability Kit Management Solutions Information and to get the Windows Platform Manageability Kit: www.microsoft.com/management Consolidation Information and to get the Server Consolidation Kit: http://www.microsoft.com/windowsserve rsystem/articles/consolidation/default.m spx http://www.microsoft.com/windowsserve rsystem/articles/consolidation/default.m spx Microsoft Certified Providers Directory: http://mcspreferral.microsoft.com NT4 Migration Information – Business and Technical resources: http://www.microsoft.com/windowsserv er2003/upgrading http://www.microsoft.com/windowsserv er2003/upgrading http://www.microsoft.com/windowsserv er2003/upgrading Unix Migration Information and to schedule Migration Assessment: http://www.microsoft.com/windows200 0/migrate/unix http://www.microsoft.com/windows200 0/migrate/unix

39. © 2003 Microsoft Corporation. All rights reserved. This presentation is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY.

40. Appendix

41. Migrating From NT4 Getting Current on Technology Reduce Cost 20-30% cost savings Guardia Di Finanza reduces TCO 30% Guardia Di Finanza reduces TCO 30% GE Medical Systems reduces servers 30% GE Medical Systems reduces servers 30% Det Norske Veritas reduces costs $1M Det Norske Veritas reduces costs $1M Cigna consolidates servers 25% Cigna consolidates servers 25% Shadow Copy reduces recovery 90% Shadow Copy reduces recovery 90% Reduce Risk Increase Reliability 50% improved uptime over NT4 50% improved uptime over NT4 Elimination of 80% of reboots Elimination of 80% of reboots Mean-time between crashes is 3-10 yrs Improve Security Mean-time between crashes is 3-10 yrs Improve Security Secure by design/defualt/deployment Secure by design/defualt/deployment 60% of corporate data sits on desktop 60% of corporate data sits on desktop Increase Productivity New Functionality Shadow Copy Shadow Copy Collaboration – Honeywell $2.7M Collaboration – Honeywell $2.7M Virtual Server & WSRM Additional Performance Virtual Server & WSRM Additional Performance Top TPC benchmarks in 1-32 proc. Top TPC benchmarks in 1-32 proc. IIS: 487% faster, File/Print: 64-148%, AD: 345% faster than NT4 IIS: 487% faster, File/Print: 64-148%, AD: 345% faster than NT4 Easier to Deploy Migration Tools IIS 6 migration tool IIS 6 migration tool AD Migration Tool AD Migration Tool Windows App. Compatibility Toolkit Deployment Enablers Windows App. Compatibility Toolkit Deployment Enablers New role-based wizards New role-based wizards Remote Installation Services Remote Installation Services Print Migrator 3.0 Print Migrator 3.0

42. Gain Efficiency: Migrate from UNIX Lower TCO 50%+ cost savings over UNIX Smead Manufacturing switches from UNIX to Windows – reduces TCO 75% Smead Manufacturing switches from UNIX to Windows – reduces TCO 75% META Group: Windows Server 50-67% cost benefit over Sun for ERP META Group: Windows Server 50-67% cost benefit over Sun for ERP Commonwealth Bank saves $3m/yr in ongoing costs (75% reduction) Commonwealth Bank saves $3m/yr in ongoing costs (75% reduction) TPC-C price/perf: Windows Server and SQL own the top 50+ benchmark spots TPC-C price/perf: Windows Server and SQL own the top 50+ benchmark spots Minimize Risk Proven enterprise-class abilities Windows server delivers world-class scalability: 5 of top 10 TPC-C results Windows server delivers world-class scalability: 5 of top 10 TPC-C results HSN increases uptime to 99.966% HSN increases uptime to 99.966% Windows leads in performance across a range of industry benchmarks Windows leads in performance across a range of industry benchmarks Dozens of customers have migrated UNIX mission-critical systems to Windows Dozens of customers have migrated UNIX mission-critical systems to Windows Microsoft Solution for UNIX Migration Microsoft Solution for UNIX Migration Increase Productivity Rapid time-to-market H&R Block solution developed in only 4 months – 3X faster than Solaris/Oracle H&R Block solution developed in only 4 months – 3X faster than Solaris/Oracle HSN e-commerce Web site build with nearly 65% less development time HSN e-commerce Web site build with nearly 65% less development time Easy and efficient migration Commonwealth Bank payback < 1 year Commonwealth Bank payback < 1 year 18 month ROI for Saudi Iron & Steel 18 month ROI for Saudi Iron & Steel Gruppo Fondiaria: 30 day migration Gruppo Fondiaria: 30 day migration Interoperate Support for heterogeneous environments Native Windows Server support for standard Internet protocols: – TCP/IP, DNS, Kerberos, HTTP, PKI Native Windows Server support for standard Internet protocols: – TCP/IP, DNS, Kerberos, HTTP, PKI Extensive support for XM & Web services Extensive support for XM & Web services Services for UNIX (SFU) – LinuxWorld: system integration award Services for UNIX (SFU) – LinuxWorld: system integration award Reliant Resources – SFU enables critical EDI file transfers between Unix/Windows Reliant Resources – SFU enables critical EDI file transfers between Unix/Windows