Next Generation Solutions

2. Next Generation Solutions Mark Young General Manager Developer & Platform Evangelism - ISV Microsoft Corporation

3. Start of Microsoft ISV Partner Program Launch of Windows 3.0…720 ISVs shipping 1,200 applications in the first year Launch of Windows NT…ISVs shipping over 5,000 Windows-based applications ISV membership in MSDN reaches 4,000 .NET Framework…25% of top 100 ISV partners building .NET applications in the first year 11,000 ISVs shipping applications on Windows Server 2003 Long History Together

4. We’re Listening “What are you doing about security?” “How do I develop more efficiently?” “What’s the business opportunity?” “Are you going to compete with me?”

5. Business Pressures Technology Changes Customer Demands Driving Forces

6. Faster, cheaper, easier solutions More specialized, relevant functionality More flexible to deal with change Manageability and security Customer Demands

7. The Year Ahead: Consolidation and Competition as an Industry Grows Up New York Times, Dec 2003 Cost savings drive vendors to overseas development InfoWorld, Dec 2003 Vendors wrangle to control midsize business market Network World Fusion, Jan 2004 Sarbanes-Oxley rules are giving some IT and business executives headaches CIO Magazine, Dec 2003 Business Pressures

8. WS Enabled Process Interconnected Message Based Scalable Distributable Work Flow Enabled Inter Organization Security Meta Data Driven Event Based XML integration Character based Single application HTML Distributable Browser UI Scalable Web Based Multiple Devices Broader Reach Event based Graphical UI Random access n-tier Technology EvolutionA major transition

9. Business Applications Market Customer Demands • More value from existing systems • Lower cost of operations • Flexibility to react to change • Integration & interoperability Underserved • Specialization • Vertical orientation • Easily customizable Fragmented Underserved Opportunity Enterprise $17B WW* 2,000 businesses** Corporate $3B WW*17,000 businesses** Midmarket $8.6B WW* 370,000 businesses** Small Business $3.2B WW* 39 million businesses** * Source: Microsoft internal estimates, Feb. 2003 ** Source: Microsoft internal calculations based on IDC, Gartner, McKinsey

10. Extracting more value from what’s already there Extending and evolving and what you already have Connecting into what’s already there Making it manageable and secure Business Imperatives Top Line: Revenue Bottom Line: Cost

11. Bringing It Together Web services Indigo Connect In Smart Client Business Intelligence Extract More Visual Studio SQL Server Windows Longhorn Extend & Evolve Dynamic Systems Initiative Trustworthy Computing Manage & Protect

12. Platform Preference Pipeline Programs Partner Ecosystem Value Drivers

13. Deploy & Operate Analyze & Act The Microsoft PlatformSpanning the entire lifecycle Design & Build

14. See and Imagine Share and Communicate Strategize and Decide Execute and Adapt Platform Investments

15. Customer Preference 300+ million users 19.4 million servers in the world: 62% run Windows 60% of email mailboxes: 115 million Over 1.3 million servers deployed • 2.5M+ copies of Visual Studio .NET deployed

16. Competing with Linux • Not free anymore • Windows wins on TCO • Security perceptions versus reality • Linux is still UNIX • Commitment to compatibility? • Roadmap uncertainty • Breadth of the ecosystem • At odds with software business models Get the facts - www.getthefacts.com

17. Best Windows Development Tool Best Mobile Development Tool Best Modeling Tool 2002 Jolt Product Excellence Award 2002 Best Web Services Foundation Platform Best Web Services Framework Best Web Services Platform Best Web Services Utility Best Web Services IDE 2002 Visual Systems Journal Readers Choice Award 2002 Jolt Productivity Award 2002 480+ .NET book titles, 1M+ copies sold 460 .NET user groups 180+ VS partners 300+ 3rd party products • 2.5M+ .NET developers • 80M+ systems with .NET Framework • 61% of Fortune 100 deployed on .NET

18. Dynamic Systems Initiative (DSI) Windows Server Family Reduced IT Cost Trustworthy Computing .NET Platform Windows Server Vision Server Functions Major Initiatives Benefits Operational Infrastructure Business Advantage Information Worker Infrastructure Application Platform

19. Set of metadata-driven programming abstractions to help simplify building, customizing, evolving business applications • Developed by Microsoft Developer Division • Will be delivered as part of core platform – no separate runtime or licensing • Fully delivered in the Longhorn wave

20. Program Investments • Technical Advancement • Technology Adopter Programs • Prescriptive Architectural Guidance • MSDN • 5.5 million unique visitors monthly • Microsoft Partner Program • Channel Builder • Connecting ISVs with SIs and VARs • Empower • Embedded Licensing

21. Core Platform + MBS Two Points Of Entry Core Platform

22. Thousands of applications 750,000 Microsoft partners More than 450,000 MCSE professionals More than 1.5M MCP certification holders 6M+ developers 2,200 user groups 400 community web sites Tapping The Ecosystem

23. SoftwareWhere the Magic Happens • No limits to software innovation today • Foundation for business • Capture IP and business processes • Interact with customers and partners • Drive insight and oversight • Software can reshape industries

24. Riding the Next Wave Fundamentals Web services Managed code Smart clients Community involvement

25. We Want To Hear From You • Give us your feedback • marky@microsoft.com • Evaluations are important