1. The Business of IT How Microsoft does IT William McKnight Microsoft IT Microsoft Corporation

2. The Business of IT How Microsoft does IT William McKnight Microsoft IT Microsoft Corporation

3. AgendaAgenda Keynote – The Business of IT Keynote – The Business of IT Deploying Exchange 2003 Deploying Exchange 2003 Deploying SharePoint Deploying SharePoint Deploying MOM Deploying MOM Deploying Office LCS 2005 Deploying Office LCS 2005 Mobility Computing Mobility Computing

4. IT Mission What we do : Provide information technology solutions that ensure predictable and trustworthy services for customers, clients and partners. We are Microsoft’s First and Best Customer. How we do it : We cultivate a diverse organization where customer focus, trustworthiness, expertise, partnership, and agility are rewarded. IT employees embody Microsoft corporate values. We measure success : By the value we add to the Microsoft business and tracking performance against set expectations.

5. No scorecard No scorecard Non-enforced standards Non-enforced standards No global consistency No global consistency Redundant infrastructure and functions Redundant infrastructure and functions Custom patching scripts Custom patching scripts No central backups No central backups Technology focus, not service oriented Technology focus, not service oriented Where We Were (1999)

6. Be Microsoft’s first and best customer Be Microsoft’s first and best customer Enable world-class and predictable customer, client, and partner experience Enable world-class and predictable customer, client, and partner experience Protect Microsoft’s physical and digital assets Protect Microsoft’s physical and digital assets Set a coordinated IT strategy Set a coordinated IT strategy Strategy to Change

7. IT Scorecard IT Scorecard Enforced standards and policies Enforced standards and policies Centralized IT operations Centralized IT operations Account Managers are the “Face” of IT in regions Account Managers are the “Face” of IT in regions Service Catalog Service Catalog Service Managers Service Managers Higher builder spend, lower sustainer spend Higher builder spend, lower sustainer spend Client Satisfaction from 106 to 134 Client Satisfaction from 106 to 134 Regional IT Account Management Ops Center (Monitoring, Tier 1 & Tier 2) MOM & MOF Windows & Storage Windows Server AD Virtual Server NetworkWindowsNetworking ISA Proxy MessagingExchange Office System Client Mgmt Windows Client SMS Windows CE Office System Comm & CollabSharePoint Office System LCS Security & Infrastructure Architecture Where We Are Today (2004)

8. Key Features: Snapshot

9. Sydney Tokyo Reading Dublin Singapore Sao Paulo RedmondTukwila Charlotte Munich 3M+ e-mail messages per day internally 89,000 end users 83 countries 300,000+ PCs and devices Single Instance SAP Silicon Valley London Johannesburg Microsoft IT Data 403 buildings 7M+ remote connections/month

10. App Development & Support 60%59% Data Center 13%13% End User Computing 8%9% WAN7%7% Telephony7%7% Security2%2% Pull - Client Driven Projects 2%2% Other1%1% Total100%100% WW IT Budget Breakdown How is an IT dollar spent? FY04 Actual FY05 Budget

11. Be Microsoft’s First and Best Customer Be Microsoft’s First and Best Customer Ensure the Security of Microsoft’s Assets and Intellectual Property Ensure the Security of Microsoft’s Assets and Intellectual Property Be a Strategic Asset to Microsoft Be a Strategic Asset to Microsoft Run a World Class IT environment Run a World Class IT environment IT Purpose

12. People People Excellence in Execution Excellence in Execution Customer and Partner Experience (CPE) Customer and Partner Experience (CPE) Product Adoption and Improvement Product Adoption and Improvement IT Strategies

13. Connected Infrastructure Connected Systems Connected Productivity Connected Insight “The Connected Business” Providing Business Value

14. Business value of IT

15. Connected Infrastructure Office System Web Services & Application Architecture Ops Center (Monitoring, Tier 1 & Tier 2) MOM & MOF Windows & Storage Windows Server AD Virtual Server NetworkWindowsNetworking ISA Proxy MessagingExchange Office System Client Mgmt Windows Client SMS Windows CE Office System Comm & CollabSharePoint Office System LCS Security & Infrastructure Architecture Security & Infrastructure Architecture Visual Studio.NET SQL Server BizTalk Server LOB Apps OverviewOverview

16. Infrastructure Servers 61% reduction in Exchange servers 61% reduction in Exchange servers Reduced from 73 to 7 sites with Exchange servers Reduced from 73 to 7 sites with Exchange servers 27% reduction in global infrastructure servers 27% reduction in global infrastructure servers 2 print servers in Redmond (1,300 queues) 2 print servers in Redmond (1,300 queues) 50% reduction in domain controllers 50% reduction in domain controllers Key enabler – Windows Server 2003 Key enabler – Windows Server 2003 Data center consolidation Eliminated 4 data centers Eliminated 4 data centers Remote management – Windows Terminal Services Remote management – Windows Terminal Services Event monitoring and dispatch – Microsoft Operations Manager 2005 Event monitoring and dispatch – Microsoft Operations Manager 2005 Server Consolidation

17. Service Levels Messaging availability = 99.99% Messaging availability = 99.99% Proactive IT service requests = 87% Proactive IT service requests = 87% Client domain controller availability = 100% Client domain controller availability = 100%Security Security patches to 7,300 servers in 72 hours Security patches to 7,300 servers in 72 hours Clear and enforced security standards and policies Clear and enforced security standards and policiesFinancial FY04 cost savings FY04 cost savings Server Consolidation: $5M Server Consolidation: $5M Data Center Consolidation: $4.5M Data Center Consolidation: $4.5M Internet Connected Offices: $2M Internet Connected Offices: $2M 75% of servers located in data centers 75% of servers located in data centers 200:1 server to site services person ratio 200:1 server to site services person ratio Connected Infrastructure Benefits

18. Business value of IT

19. Visual Studio.NET.NET Framework Web services Dynamic Systems Initiative Connected Systems

20. Web Services Management Benefits Higher User Satisfaction Increased IT Agility Bigger ROI on CRM Investment User interface paradigm shift Application-Centric to Work-Centric Seamless Source Data Integration Tailored to Specific User Roles Technologies Microsoft® Windows® Server 2003 Internet Information Services 6.0 Microsoft Visual Studio®.NET Microsoft SQL Server™ 2000 Microsoft.NET Framework ASP.NET XML Web services ASP.NET Web Forms ADO.NETC# COM Interop Microsoft.NET Compact Framework Microsoft Mobile Internet Toolkit WSE Role-Based Workflows Revenue Reporting Support EventsMarketing Sales Force Automation Licensing Web Services Alchemy.NET Architecture

21. Work Space

22. Business value of IT

23. Enhanced Telephony 9,800 unique users Live Communications Server 26,600 active users/month All campus calls Unified Messaging 1.6M messages/month Integrated Communications Integrated Communications

24. Document Workspace Meeting Workspace Team Sites > 50,000 sites My Site 25,000 sites 20,000 hours/week Team Collaboration Team Collaboration

25. Remote Desktop OWA 51,600 monthly users RPC over HTTP 18,200 monthly users Pocket PC 11,500 users Tablet PC 18,900 users SmartPhone 7,700 users Mobile Workforce Mobile Workforce

26. Business Value of IT

27. Sarbanes-OxleySarbanes-Oxley

28. Old Method Lots of paper, files and backup tapes Lots of paper, files and backup tapes People hunting for historical data and manual retention of information People hunting for historical data and manual retention of information New Method Centralized responsibility with Tax Centralized responsibility with Tax Tax Data Warehouse and automated feeds Tax Data Warehouse and automated feeds Business Value $53M per year in savings $53M per year in savings Shift people from manual work to strategic tax programs Shift people from manual work to strategic tax programs Microsoft Tax Portal

29. Get the basics right Get the basics right Take down sustainer spend Take down sustainer spend Connected architecture Connected architecture Business leadership Business leadership IT As A Business Value Driver

30. IT Showcase: How Microsoft Does IT Customer-ready resources from Microsoft IT External access External access All content on Microsoft Services (NEW!) http://www.microsoft.com/itshowcase/ All content on Microsoft Services (NEW!) http://www.microsoft.com/itshowcase/ http://www.microsoft.com/itshowcase/ Technical content on TechNet http://www.microsoft.com/technet/ itshowcase/ Technical content on TechNet http://www.microsoft.com/technet/ itshowcase/ http://www.microsoft.com/technet/ itshowcase/ http://www.microsoft.com/technet/ itshowcase/ All content on CD—Get one at the IRC! http://itshowcase/ordercd All content on CD—Get one at the IRC! http://itshowcase/ordercd http://itshowcase/ordercd IT Showcase CD—2004 2nd Edition IT Showcase CD—2004 2nd Edition Order for your customer events and meetings! Order for your customer events and meetings! Internal access Internal access All content… …on our Web site http://itshowcase/ …on our Web site http://itshowcase/ http://itshowcase/ …on Arsenal http://arsenal/ …on Arsenal http://arsenal/ http://arsenal/ …on ICE http://ice/ …on ICE http://ice/ http://ice/ …on content portals …on content portals Award-winning best practice: BPID 1866

31. © 2004 Microsoft Corporation. All rights reserved. This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.