Microsoft EMEA Retail Technology Conference 2004 Microsoft Point Of Service Platforms

1. Microsoft EMEARetail Technology Conference 2004Microsoft Point Of Service Platforms David Dobson Industry Manager In Store SolutionsMicrosoft EMEA HQ

2. Agenda • Microsoft and Point of Service • Windows XP Embedded • Retail and Hospitality Industry Trends • Windows Embedded for Point of Service • Partner Participation

3. Microsoft And Point Of Service • Long history of providing operating systems for POS terminals POS Standards support

4. Mobile and Embedded Devices Windows Mobile Smartphone Retail Point-of-Sale Windows Mobile Pocket PC Phone Windows Automotive Tablet PC Windows-based Terminals Medical Devices Portable Media Center VoIP Phones Notebook PC Mobile Handhelds Entertainment Devices Smart Personal Objects Set-top Boxes Gateways .NET Technology Windows CE Windows XP Embedded Windows XP Increasing Functionality

5. Windows XP Embedded The most complete embedded platform enabling advanced devices by delivering the power of Windows in componentized form Windows CE Windows CE integrates reliable real time capabilities with advanced Windows technologies to rapidly build a wide range of innovative, small-footprint devices Windows Embedded Platforms

6. Choosing a Device Platform Retail POS ATM Advanced STB LOB Thin Clients Test and Measurement Kiosk Home Media Gateway Medical Systems Mobile Handheld VoIP Phones Basic Thin Clients Medical Devices Set-top Box Consumer Electronics In-vehicle Navigation Industrial Automation Pocket PC Smartphone Portable Media Center

7. Windows XP Embedded • Componentized version of Windows XP • Based on the same binaries as retail version of Windows XP Professional • Choose only features and services you need • Includes additional embedded-enabling features • Enable a broad range of devices to utilize rich Windows XP Professional features • Powerful authoring tools • Streamline the end-to-end embedded device development process • Benefit from familiar application development tools

8. Retail Adoption Of XP Embedded • “IBM, NCR, Fujitsu, Wincor Nixdorf and Retalix … Integrate Windows XP Embedded … into POS Systems” - October 2001 • “Rite Aid, Metro Cash & Carry … Adopt Microsoft Windows XP Embedded for …POS Systems” - January 2002 • “Microsoft Windows XP Embedded Chosen by Catalina Marketing For its POS Systems” – June 2002 • “Target and Royal Caribbean to Deploy Microsoft Windows XP Embedded” - June 2002 • “RadioShack Corporation Found Fast and Predictable Time to Market Deploying 8,000 Cash Lanes in Just 12 Weeks” – January 2004 • “Windows XP Embedded Enables Retailers Worldwide to Improve Their Business and Better Meet Their Customers' Requirements… Carrefour -- 8 A Huit, E.LeClerc, JD Group, McDonald's UK, METRO and Telepizza” – March 2004

9. Case Study HemaDepartment Store, Netherlands

11. Windows XP Embedded SP2 • Security/Network Enhancements • Better network protection -- Windows Firewall activated by default • More reliable browsing -- Hardened Internet Explorer, RPC/DCOM changes • Third party support – Computer Associates, Sygate Security Agent • Manageability • Easier way to update -- Software Update Services (SUS) 2.0 Client (=WUS) • Easier way to update -- Advanced remote management with Systems Management Server (SMS) • Innovation • Faster boot & shutdown – Hibernate Once, Resume Many • Advanced Multimedia -- DirectX 9, Windows Media • New networking support -- Bluetooth • Advanced managed code support -- .NET Framework 1.1

12. Partner Support For XP Embedded • The success of Windows XP Embedded in the retail and hospitality industries has been in large part due to the support of the growing partner ecosystem • OEM Partners • Dell, Fujitsu, HP, IBM, NEC Infrontia, NCR, Toshiba TEC, Wincor-Nixdorf • Many others offer hardware supporting XPe • ISV Partners • Accenture/Avenew, Anker Systems, BK Vision, Datavantage, Fujitsu, Matra Systems, NCR Advanced Store, NCR/ACS, NSB/ BT Expedite, Radiant/ Aloha, Retalix • Many others

13. Point Of Service Adoption • Major Point-of-Service HW replacement/ installation cycle underway Source: IHL Consulting Group, 2004

14. Industry Trends And Challenges Push towards standardization Retail enterprises increasingly connected New Technologies being introduced to the store $$ Cost consciousness through the product lifecycle

15. Microsoft Windows Embedded for Point of Service

16. What Is Windows Embedded for Point of Service? • A standard, retail-optimized Operating System platform for Point of Service devices • Only POS platform to provide Plug-n-Play support for peripherals • Based on Windows XP Embedded with Service Pack 2 • Reduced OS footprint • Available during first half of 2005 from Windows Embedded OEM partners • Microsoft’s recommended Operating System for full-featured Point of Service terminals • Point of Sale, Kiosks, Self-Checkout • First of a series of retail-focused investments from Microsoft that will continue through “Longhorn”

17. Point of Service Embedded Devices Portable Media Center Communications Sector Windows Automotive Mobile Devices MapPoint Where We Fit In, What You Gain Engineering efficiencies Marketing consistency Thought leadership

18. Windows Embedded for Point of Service Easier retail Point of Service platform to setup, use and service Easier Empowering Empowers retailers to deliver the desired customer experiences of today and tomorrow Lower Lifecycle Cost The POS platform with the low development, deployment, servicing and hardware costs and the longest published product support

19. Windows Embedded for Point of Service Easier • Standard POS platform • Plug-n-Play retail peripheral support • Common Control Library • .NET class library based on UPOS 1.8 • Supports legacy (COM-based) COs/SOs • Exposes device statistics as PerfMon counters • Unified POS/ OPOS/ JavaPOS support • Application compatibility • Win32 and .NET framework • Java VM support Empowering Lower Lifecycle Costs

20. testimonial Rick HughesAnker Systems, BV.

21. Who Do I Represent? • Europe's largest dedicated EPoS provider • UK headquartered • Over 100 years of retail experience • 10,000 customers • 1,300 professionals • 11 European operating subsidiaries • Distributors in an additional 41 countries

23. Anker’s View Of WEPOS Evolution • Great success with XP Pro • Clients now leveraging benefit of XPe • WEPOS has advantages of XPe with added retail features

24. Plug ’n’ Play • Plethora of retail hardware Plug and play peripherals

25. Summary • Anker are participating in the WEPOS JDP • Encourage technology partners to join • WEPOS will bring significant benefits to solution providers and retailers – a win-win situation • It will offer a lower TCO over rival operating systems

26. Windows Embedded for Point of Service Easier • Technology required to enable current and future retail scenarios • Browser • Multimedia • Networking • .NET Framework v1.1 • Security • Minimized Operating System footprint • Windows Logon and Firewall • Browser hardening • Windows management support • Partner security solutions • Support for largest base of retail applications and peripherals Empowering Lower Lifecycle Costs

27. Windows Embedded for Point of Service Easier • Lower development costs • Lower deployment costs • Lower servicing costs • Lower hardware costs • Extended support lifecycle Empowering Lower Lifecycle Costs

28. testimonial Tony HouldsworthMatra Systems, UK

29. Grocery Discount Hypermarket12,000 POSMultiple CountriesComplex promotions Hospitality Grocery / Gen Merchandise Pharmacy C-stores, Supermarkets,Department Stores,Furniture StoresMobile TabletsThin client POS Large format US style pharmacy60 storesMultiple specialty areas Grocery / Gen Merchandise Department Stores (food halls)Local SupermarketsCorporate stores, concessionsand franchise operations. Focused on Modern Retailing 50 parks, 7 countries200+ tills / park 1 server Mobile POSStored Value Card

30. MATRA solutions already deployed on XP/e – one of the first • Solid foundation • Able to match security policies and occupancy needs • Stability in the product lifecycle • Reducing the cost of ownership XP/e Windows Embedded for Point of Service

31. Windows Embedded for Point of Service moves the bar much higher • ‘Hardening’ for retail (security, components, performance) • Standards for integration – ‘plug and play’ • Deployment and management capability – outshining the old legacy systems • Reducing the cost of ownership Hardening Management Standards XP/e Windows Embedded for Point of Service

32. Technology Guarantee • Microsoft will provide royalty free licenses for Windows Embedded for Point of Service to OEMs for eligible POS systems • Eligible Systems: POS systems based on Windows XP Embedded licensed and deployed between 10/4/04 and the Windows Embedded for Point of Service Release to Manufacturing (RTM) • Deployment • Microsoft will provide royalty free Windows Embedded for Point of Service licenses to OEMs for installation on Eligible Systems • Windows Embedded for Point of Service upgrades must be installed within 6 months after RTM • Retailers responsible for Windows Embedded for Point of Service upgrade deployment costs

33. Partners Supporting So Far … … Still Recruiting for JDP

34. Why Windows Embedded for Point of Service? • Choose the easy to use, retail-optimized Point of Service platform to achieve the low lifecycle costs • Easier retail Point of Service platform to setup, use and service • Empowers retailers to deliver the desired customer experiences of today and tomorrow • Low development, deployment, servicing and hardware costs and the longest published product support

35. Choosing a Device Platform Retail POS ATM Advanced STB LOB Thin Clients Test and Measurement Kiosk Home Media Gateway Medical Systems Mobile Handheld VoIP Phones Basic Thin Clients Medical Devices Set-top Box Consumer Electronics In-vehicle Navigation Industrial Automation Pocket PC Smartphone Portable Media Center

36. Case Study Air BalticNordic Airline Company

37. Windows CE.NET POS Device • All-In-One Device • Windows CE.NET • handPoint Mobile POS • Pre-Installed • Barcode reader • Magnetic stripe reader • Smart card reader (Chip&Pin) • Colour touch screen • Keypad • Thermal Printer • Powerful and Robust • 400Mhz XScale • 64Mb/64Mb • CFI and SD slots • 450g

38. Air Baltic • Installed on 15 Airplanes so far • Used for all sales taken during flights • Food & Beverages • Gifts, Etc • Allows in flight credit card authorisation • Device available to view at the conference

39. Closing Thoughts • “Retailers that develop advanced point-of-service ecosystems will enjoy increasing revenues, decreasing costs, and greater customer loyalty” • Forrester – “The Retail Point-of-Service Transformation”, March 23, 2004 • “Point-of-Sale devices will continue to track PCs down the path to standardization.  Retailers need to embrace this trend as a means of reducing the cost and complexity of managing POS devices across their organizations; Those that succeed will achieve significant savings and improved levels of device availability.” • Gartner – “Apply PC Deployment Best Practices to Retail Point of Sale”, July 27, 2004

40. © 2004 Microsoft Corporation. All rights reserved. This presentation is for informational purposes only.MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY.