1. Desktop XP Business Value Simon Witts (simonwi@microsoft.com) simonwi@microsoft.com VP Sales & Marketing Microsoft EMEA

2. Why is Desktop XP Business Value discussion important?  Get the full value of your investment  IT often see the management/technical value, but the value for the Business is less transparent  New Business value parameter’s (for desktop)  Opportunity to improve further:  Business Productivity  Business Processes (through desktop)

3. Business Value of any IT Return on Processes  Intrinsic integration, open standards  Faster time and lower cost to benefit  Reinvigorate existing systems, processes  Visibility of innovation Productive Dependable Business Value Connected Return on People 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 Flexibly act on opportunity Flexibly act on opportunity Flexible interoperability Flexible interoperability Lower total cost of ownership Lower total cost of ownership Embrace, maximize mobility Embrace, maximize mobility Support heterogeneous environment Support heterogeneous environment Build to last and Built for change Build to last and Built for change Is secure Is secure Return on Infrastructure and Assets

4. Information Worker Serving a broader user audience

5. Business Value Of Windows XP And Office XP - Overview Key Enablers Benefit Area Return on Infra and assets Security and Reliability Win2k code base, supportability tools, advanced security, document recovery Deployment and Operational Cost Improved deployment tools, application compatibility, manageability Return on People (Biz Productivity) Return on People (Biz Productivity) IW Productivity Usability, reliability, personal productivity tools Communication and Collaboration Content revision, sharing and publishing, RTC scenario, Sharepoint scenarios Mobility Advanced support for notebooks, seamless networking and communication, advanced security Tablet PC Ultimate mobility, increased productivity with ink based applications Return on Process Automate business processes with Desktop XP platform SmartTags, LOB Integration, Tablet PC vertical apps

6. Solution Measuring Value: Rapid Economic Justification™ Identify key stakeholders, their CSFs, strategy to achieve CSFs, and the KPIs Project impact of the IT investment in financial terms such as IRR, NPV Business Assessment Risk Financial Metrics BenefitCost VALUE Analyze business processes against desired outcomes and propose solutions Leverage modeling tools to optimize the analysis and quantify business costs and benefits Profile and quantify risk, using sensitivity analysis to optimize the economic impact of the investment

7. Measuring Costs: Gartner TCO  Industry standard since 1988  Total Cost of Ownership  Gartner Definition: A comprehensive set of methodologies, models and tools to help organizations better  Measure costs  Manage costs  Reduce costs  Improve overall value of IT investments Acquisition Retirement Management and Support Deployment+ + + + Asset Lifecycle Over the life of the IT Assets

8. The REJ Outcome The Average Productivity improvement of up to 8%, Internal rates of return (IRR) up to 259%, Net Present Value (NPV) up to $23 million & TCO reduction between 7% to 32% 14 studies conducted using the Microsoft REJ™ framework and Gartner's TCO Analyst tool showed:

9. Windows XP Business Value Evidence Source  Based on results of 30+ enterprise organizations studies  Windows XP Business Value whitepapers:  Higher Yields: The Financial Benefits of Windows XP Professional  Security and Reliability: Pillars of Value for Customers of Windows XP & Office XP  Realizing Financial Value Through Lower Deployment and Operational Costs  Empowering Mobile PC Users: The Financial Benefits of Windows XP Professional and Office XP  Empowering Information Workers: The Financial Benefits of Windows XP Tablet PC Edition  Beyond the IT Department: Desktop XP Installation Leads to Measurable Business Benefits (internal only)  Studies conducted by KPMG, Nervewire, Immedient Corporation & MCS  All studies audited by BearingPoint Inc. (formerly KPMG Consulting) and Gartner Measurement (Tablet PC)

10. Business Value Of Windows XP And Office XP - Overview Return on Infra and assets Security and Reliability $92 lower TCO per Security and Reliability Benefits Up to 75% less time spent for security management tasks Deployment and Operational Cost 97%+ out of the box compatibility for Win9x/NT4.0 apps WinXP & Office XP gave a 40% fall in help desk support call Return on People (Biz Productivity Return on People (Biz Productivity IW Productivity Personal and group productivity improved by 11% to 16% User Productivity up 25% from Win2000 to WinXP (AIR) Communication and Collaboration An aerospace and manufacturing firm saved 10% of the hours spent in travel and out-of-office meetings New document editing capabilities helped Black and Veatch to generate reports 10% faster Mobility Mobility: $387 TCO savings / notebook PC running WinXP $830 annual productivity benefit from wireless access to patient records in Health care Tablet PC IWs regain an average 147Hours/year due to more efficient capturing, organizing, and searching for information. Return on Process Automate business processes on Desktop XP platform Burt Hill: 25%-55% reduction in cost per project proposal due to ability to link information from different backend systems to Office proposal form WIT Smart Tags. Annual Benefit Benefit Area

11. Business Value Of Windows XP And Office XP - MSFT Returnon Infra andassets Security and Reliability Smart card deployment Deployment and Operational Cost 97%+ out of the box compatibility for Win9x/NT4.0 apps WinXP & Office XP gave a 40% fall in help desk support call Return on People ( Biz Productivity Return on People ( Biz Productivity IW Productivity RTC, STS, SPS, MIS, Project 2002, Communication and Collaboration Wireless LAN standard Camera standard Mobility Pocket PC Phone edition or smart phone standard Tablet PC Tablet PC Standard (One Note) Return on Process Automate business processes with Desktop XP platform Role based portals e.g. Sales Portal (XDoc’s)

12. More Business Value ahead … Collaborate Absorb Access Decide Communicate Handwriting Handwriting Indexing Indexing Categorizing Categorizing Author Tablet Tablet Voice Voice Pen Pen Information Work Take Action Take Action Task Management Task Management Meeting Facilitation Meeting Facilitation Tele-Meeting Tele-Meeting Note Taking Note Taking Application Sharing Application Sharing Reading Reading Annotating Annotating Analysis Analysis Information Information People People Subscribe Subscribe Tele-Presentation Tele-Presentation Publish Publish

13. What’s coming next?  Total Value Opportunity (TVO)  Cost of Deployment tool for Windows XP and Office XP (March)  Tablet PC Wave 2 Whitepaper (April)  Office 11 – Solution based Business Value studies (Summer 03)

14. © 2003 Microsoft Corporation. All rights reserved. This presentation is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY.