2. Robert Boccia Technology Strategist Microsoft Session Code: ISB201

3. Agenda IT Environment Financials & Budget Federated IT Model IT Strategy CIO Mindset Balancing Tensions IT Governance, IT Scorecard Model Enterprise Where We Are Futures

4. 500,000+ client devices 170,000 end users 98 countries 441 buildings 120,000 Windows 7 clients 50,000 Windows Vista Clients 170, 000 Office 2007 clients 170,000 Exchange 14 mailboxes 3000 Windows 2008 servers 46,000,000+ remote connections per month 189,000+ SharePoint Sites 4 data centers 10,000+ production servers E-mails per day: 3,000,000 internal 10,000,000 inbound 9,000,000 filtered out 33,000,000 IMs per month 190,000+ e-mail server accounts Microsoft IT Environment

5. Microsoft IT $ SpendApplications60% App Development (29%) App Support (31%) Infrastructure40% Network (14%) Data Center (7%) Employee Services (5%) Voice (5%) Helpdesk (5%) Security (3%) Functional View Financial Breakdown Cost Element View People 72% Data & Voice16% Hardware 5% Facilities 5% Software 2%

7. Microsoft IT Strategy Empower – Help our customers, clients and partners drive productivity with great services, guidance and solutions Simplify – Simplify our technology environment and focus investments in core objectives Protect – No hacks or impacting attacks and total compliance Strategy Pillars IT Objectives Be Microsoft’s First and Best Customer Run World Class IT Protect Microsoft Digital Assets Drive productivity for our customers, clients and partners

8. Service Level Management Capacity Mgmt Availability Mgmt Financial Mgmt Incident Mgmt Problem Mgmt Service Desk Service Monitoring and Control System Admin Security Admin Network Admin Change Mgmt Configuration Mgmt Release Mgmt MOF Project Plans Approved Scope Complete Release Readiness ApprovedDeploymentComplete Vision/Scope Approved Risk Assessment Security & Privacy Model Training Plan Review User Acceptance Approval Security & Privacy Assessment IT Governance Microsoft Operations Framework Software Development Life Cycle MSFMOF Six Sigma

9. IT Scorecard

10. Operational Costs Consume IT Budgets Need to do more… …with less Efficient Operations increase service… …to customers Source: Accenture I.T. Spending Survey Source: Accenture I.T. Spending Survey Today’s IT Desired IT 30% New Capability70% Sustaining & Running Existing Capability Effective Operations of Systems Management unlocks New Business Value and Services Increasing Efficiency in IT 45% New Capability 55% Existing Capability Increases value Decreases maintenance delivery

11. Model Enterprise “Model a continuously optimized Enterprise Infrastructure utilizing Microsoft products & operations principles” Drivers Showcase (Value) + Cost + Risk Enablers Technology + Governance + Telecom Outputs Infrastructure Consolidation Move to Internet Real Governance Reduction in “Sustainer” $ IT Spend More Secure; Faster to react

12. EX2K3 Topology (Goal) Microsoft IT Site Consolidation Topology Data: 7 regional datacenters 6 physical sites < 140 AD servers 22 mailbox servers 200mb mailbox size Topology Data: 9 regional datacenters 74 physical sites 200 AD servers 120 mailbox servers 100mb mailbox size Do More With Less 2 fewer regional datacenters (22% less) 175 fewer servers (42% less) 67 fewer physical sites (90% less) EX2K Topology

13. Exchange Solution: Consolidated Topology Charlotte 2 Servers 1 Cluster 5,400 Users* Tokyo 3 Servers 1 Cluster 8,100 Users* Dublin 5 Servers 1 Cluster 21,600 Users* Redmond 8 Servers 1 Cluster 56,000 Users* * Figures represent user capacity Singapore 2 Servers 1 Cluster 5,400 Users*

14. Data Centers Target Point Dublin Singapore Redmond Silicon Valley Business Continuance

15. Business Value Total $23.2 million in savings to date 40% reduction Server and Data Center consolidation $18.3 million reduction Internet Connected Offices $4.5 million savings Enhanced time to market Infrastructure Server Consolidation Savings of $4.3 million Centralized Server and Data Management Incident Management team of 22 supports 10,000 servers worldwide New Operations Practices and Procedures Infrastructure Server Consolidation Savings of $4.3 million

16. Futures Applications Consolidation & Virtualisation Unified Communications

17. PresentationVirtualization User State Virtualization ApplicationVirtualization DesktopVirtualization ServerVirtualization “Having one vendor for the hypervisor, operating system, and much of our application software was very appealing to us from a support and cost perspective.” Bert Van Pottelberghe, Sales Director, Hostbasket “Having one vendor for the hypervisor, operating system, and much of our application software was very appealing to us from a support and cost perspective.” Bert Van Pottelberghe, Sales Director, Hostbasket Document redirection Offline files

18. Hyper-V: Production Scalability Hyper-V Powering Microsoft Internet Properties TechNet: 100% Hyper-V http://technet.microsoft.com ~1 million hits a DAY MSDN: 100% Hyper-V http://msdn.microsoft.com ~3 million hits a DAY Microsoft.com: ~50% Hyper-V and growing http://www.microsoft.com >1 billion hits a month Microsoft Internal 70% Virtualised

19. UNIFIED COMMUNICATIONS Business Value

20. Situation Measure the ROI of the following : IM and presence. 170,000 users enabled for IM and presence. send more than 70 million instant messages per month nearly 2 million peer-to-peer audio conversations per month. Conferencing. 170,000 users enabled for Web and video conferencing. Conduct about 60,000 meetings per month, totaling 220,000 person-hours each month. Microsoft IT also deployed more than 2,200 Microsoft RoundTable™ video-conferencing devices to offices around the world to support video conferencing. Voice. 40,000 users at 28 locations globally who use the voice capabilities of OCS 2007. users conduct more than 1 million calls per month through Office Communications Server. Unified messaging. 75,000 users in 80 offices worldwide use Microsoft Exchange Server 2007 Unified Messaging. These users receive voice-mail messages in their Microsoft Office Outlook® Inbox and can access their e- mail messages and calendar information by telephone.

21. Solution Microsoft IT decided to use the business value framework that Forrester Research developed Payback. The breakeven point for an investment. This is the point in time when the benefits equal the costs. Net present value. The total value to the customer from investing in the solution, expressed in today’s dollars. Internal rate of return. The rate of return that the company expects from investing in a solution. Return on investment. The expected return calculated by dividing net benefits by costs.

22. Cost Framework The cost framework includes the categories of software, hardware, deployment and training, and administration and maintenance. Year oneYear twoYear three Server hardware7,951,850Not applicable Phone devices6,630,000Not applicable Software and services14,433,34319,328,527 Migration/deployment1,097,656Not applicable Total cost30,112,85019,328,527 Year oneYear twoYear three Server hardware520,800Not applicable Software and services1,850,000 Migration/deployment260,000Not applicable Total cost2,630,8001,850,000 Table 2. Deployment Costs of Exchange Server Unified Messaging Table 1. Deployment Costs of Office Communications Server

23. Improved Business Outcomes Increased End-User Productivity ($103m Saving) 28 mins per day per person/Travel Shortened Sales Cycles ($10m Saving) Faster Project Completion (NQ) Ability to Retain and Attract Employees (NQ) Faster Resolution of Customer Issues (NQ)

24. Reduced Costs Reduced Travel Costs ($93m Saving) Reduced Audio Conferencing Costs ($3m Saving) Reduced IT Infrastructure and Administration Costs ($1.6m Saving) $22 Saving in move cost Reduced Real-Estate and Facility Costs ($622 Saving) Reduced Voice-Mail Costs (NQ) Environmental Sustainability (17,000 M/Ton Saving)

25. Conclusion Produce a three-year internal rate of return of 240 percent Pay for itself in two months Metrics are based on a total investment of $76 million Annual benefits of $212 million.

26. In Summary: Where We Are IT Scorecard Enforced standards and policies Centralized IT operations RCIO’s are the “Face” of IT in regions Service Catalog Service Managers Higher builder spend, lower sustainer spend Client Satisfaction from 106 to 134 Regional IT Account Management Ops Center (Monitoring, Tier 1 and Tier 2) MOM and 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 and Infrastructure Architecture

27. © 2004 Microsoft Corporation. All rights reserved. This presentation is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY.

28. Benefits Framework

29. For More Information Additional content on Microsoft IT deployments and best practices can be found on http://www.microsoft.comhttp://www.microsoft.com Microsoft TechNet http://www.microsoft.com/technet/itshowcase http://www.microsoft.com/technet/itshowcase Microsoft Case Study Resources http://www.microsoft.com/resources/casestudies http://www.microsoft.com/resources/casestudies Increase IT Efficiency: Maintain Fewer Servers http://www.microsoft.com/serverconsolidation http://www.microsoft.com/serverconsolidation E-mail IT Showcase showcase@microsoft.com showcase@microsoft.com