Infrastructure Optimization Establishing a Platform for a People_Ready Business Colin Timm Director, Enterprise Group Microsoft Australia

Business Results & New Value End User ProductivityCustomerConnection Keep Business Up & Running Security More Pressure Than Ever on IT Competition Technology Change Regulatory Compliance Cost Reduction

IT Complexity And Cost

Microsoft’s Promises to You People Drive Business Success

Harness IT as a Strategic Asset Align IT with the business IT Goals Establish a Responsive Infrastructure Proactively leverage IT investments to meet business needs Eliminate Unnecessary Complexity Manage IT resources efficiently by eliminating unnecessary redundancy, reducing manual tasks and lowering costs Ensure Your Business Is Always Running Use IT as a trusted partner in meeting business goals Move from complexity to efficiency

Solving The Challenge Optimizing Infrastructure for:

Infrastructure Optimization for a People-ready Business Core Infrastructure Optimization Model Cost Center Uncoordinated, manual Infrastructure Knowledge not captured More Efficient Cost Center Managed IT Infrastructure with limited automation and knowledge capture automation and knowledge capture Managed and consolidated IT Infrastructure Infrastructure with extensive Automation, knowledge captured and re-used Fully automated management, dynamic resource Usage, business linked SLA’s. Knowledge capture automated and use automated Business Enabler Strategic Asset

8 What’s in the Infrastructure for a People-Ready Business

9 Source: MS EPG Profiling:8,685 accounts as of 6/30/2006 (It includes US sub) 72% 55% 85% 76% 86% 80% 58% 57% 44% 38% 41% 54% 35% 13% 47% Group Policies Win XP with SP2 Monitoring Servers Automated Tracking HW & SW Manual App Comp Manual Reference VPN or Terminal Svcs Secure Network Connection Backup Solution All Servers 19% 37% 15% 9% 23% 12% 17% Central Provisioning Patch Mgmt Servers Automated App Comp Monitoring Desktop Firewall Desktop & Servers Secure Wireless Backup Servers & Desktops 21% 13% 7% 14% Directory Federation Automated Reference Capacity Analyzer Quarantine Secure Domain Isolation StandardizedBasicDynamicRationalized Active Directory Automated Patch Mgmt Solution Antivirus Desktops Backup Solution Critical Servers Central Firewall Basic Networking Services Standard Images Results Of FY06 Account Discovery: Core Infrastructure Optimization Percentage indicates achieving capability

Efficiency of customers today Cost Center Uncoordinated, manual infrastructure More efficient Cost Center Managed IT Infrastructure with limited automation automation Managed and consolidated IT Infrastructure Infrastructure with maximum automation Fully automated management, dynamic resource Usage, business linked SLA’s Business Enabler Strategic Asset 64% 31% 3% 2%

Linking IT to Business Performance Isolating the impact of all IT functions on productivity shows that IT Infrastructure is a key determinant of superior productivity Information technology fuels profitable revenue growth Source: Enterprise IT Capabilities and Business Performance, Marco Iansiti, David Sarnoff Professor of Business Administration, Harvard Business School George Favaloro, Principal, Keystone Strategy, Inc-March 2006 Companies in the top 25% of IT capability grew revenue 6.8% faster per year than their peers in the bottom 25% of IT capability Robust IT infrastructure is a key driver of productivity and growth The firms in the top 25% of IT capability enjoy 23% higher revenue per employee than their peers in the bottom 25% of IT capability Managers in firms that are supported by better information systems have significantly better insight into, and control over, key dimensions of their business Information technology gives managers more insight and control Firms with better IT have more productive employees

Why Leaders Reap Benefits from Architecture-driven IT Infrastructure Investments Lower IT Operating Costs Giga: implementing Enterprise Architecture yields 20% savings in annual IT operating budget Gartner: Architecture can provide savings of 10% to 20% of infrastructure costs Giga: penalty of 10% of project cost and 25% of project elapsed time with non-standard technology architecture Strategic Agility Gartner: Enterprise IT Architecture gives 30% improvement in ability to deal with changing business dynamics MIT: Correlated top performers with high capability IT infrastructure and standards Increased Productivity Forrester: 40% productivity gap between leaders and laggards in IT investment

People intensive nature drives costs Microsoft Primary Quantitative Research. 400, 30 min phone surveys of IT professionals in data centers with 25 or more servers Over 60% of TCO over a 5 year period driven by people costs 0% 10% 20% 30% 40% 50% 60%70% Staff Costs DowntimeTrainingSoftwareHardware Operations – The Manual Reality

Infrastructure Optimization Improves IT Efficiency PCs managed per IT FTE Profiled Organization $774-$1, $ $230 PCs Managed / FTE Cost / PC Note: Wide variability in IT labor/PC for basic customers due to lack of manageability Source:GCR data analyzed by Microsoft; IDC data, 2006

Making It Real cost savings, the most obvious benefit Uncoordinated, manual infrastructure Managed IT Infrastructure with limited automation automation Managed and consolidated IT Infrastructure Infrastructure with maximum automation Fully automated management, dynamic resource Usage, business linked SLA’s IT Labor Costs $774$542 $261 $261 Basic to Rationalized: IT Labor Costs reduced $513 (66%) $232(30%) $281(52%) IT Labor

How to Take the Journey

Example - Technology View of Model No common identity management model Identity management for user identification Centralized configuration and authentication, information protection infrastructure Centralized administration, Federated Identity Management No server- based identity or access management Users operate in admin mode Limited or inconsistent use of passwords at the desktop Minimal enterprise access standards Active Directory for Authentication and Authorization Users have access to admin mode Security templates applied to standard images Desktops not managed by policy Policy and Security templates used to manage desktops for security and settings Directory and certificate-based Information Protection Infrastructure Certificate Provisioning & Authorization for Mobile Devices Centrally manage users provisioning across heterogeneous systems Federated Identity Management across organizational and platform boundaries

Infrastructure Optimization Example - Process View of Model Microsoft Operations Framework/ITIL in IOM Reactive Ad hoc Problem-Driven “Avoiding Downtime” Reactive Stable IT Request Driven Change Management and Planning “Keeping It Running” ProactiveAccountable Increased Monitoring Formal Change Management SLA’sImprovementPredictability “Quality Driven” Proactive Optimizing Costs and Quality Agile Self Assessing and Continuous Improvement “Taking The Lead” Most effort spent in:

There is an end goal

Dynamic Systems will result in reduced costs, improved reliability, and increased responsiveness across the entire IT life cycle Faster, more efficient development resulting in IT systems that are Designed for Operations Responsive, policy-driven IT systems that are self managing, reliable and cost effective SLAs that are met or exceeded resulting in satisfied business units and productive end users What is the Destination?

“Some people say airlines are powered by jet fuel, but this airline is powered by its IT infrastructure” – President Dave Barger Based on Architecture and Infrastructure investments, cut 30% of IT budget, improved interoperability and agility – Gartner – Gartner “Accelerated growth could not have been achieved without our state-of-the-art computer systems” – WalMart ISD – WalMart ISD “Highly scaleable infrastructure handles 1.8 billion real-time messages per day and 50K trades per second” – CIO ITInfrastructure IT Leaders Make Smart Investments in Architecture and IT Infrastructure

. “One rule defines how a particular protocol can be used, where it goes to, and where it comes from – all in one screen. That was a 100 percent saving in our professionals’ time.” - CSR – ITInfrastructure Local Customers Make Smart Investments An upgrade to Microsoft Office 2003 took 9 days as opposed to months adopting their previously implemented infrastructure, servicing 6 primary campuses and 7500 staff, 35,000 students1 Cuts time to deploy software by 92%! “If we are going to sell this to our customers we are going to have to show that it works for us first” – EDS – EDS CommSee has provided a user- friendly, fully integrated view of customer for 1000 relationship managers and 25,000 users in Call Centres and Operations Centres

Microsoft’s Promises to You People Drive Business Success

Microsoft’s Promises to You

Guidance Systems Management Content Identity Management Comprehensive Security Product Portfolio Client Services Edge Server IPSec VPN Network Access Protection (NAP)

Microsoft’s Promises to You

Development Development Tools, Enhanced productivity Infrastructure & Management Layer Interoperability User Experience Rich user experience, familiar tools Data Management Data Store, BI capability, DB Services SOA & Business Process Business Process Automation, SOA, Integration Suppliers Customers Business Intelligence Reporting, Analytics, Scorecarding Application Platform Capabilities

Microsoft’s Promises to You

Unified Communications & Collaboration Docs/tasks/calendars, blogs, wikis, e- mail integration, project management “lite”, Outlook integration, offline docs/lists Collaboration BusinessIntelligence Portal Enterprise Portal template, Site Directory, My Sites, social networking, privacy control Enterprise scalability, contextual relevance, rich people and business data search Rich and Web forms based front-ends, LOB actions, pluggable SSO Server-based Excel spreadsheets and data visualization, Report Center, BI Web Parts, KPIs/Dashboards Integrated document management, records management, and Web content management with policies and workflow Business Processes Search ContentManagement PlatformServices Workspaces, Mgmt, Security, Storage, Topology, Site Model

Microsoft’s Promises to You People Drive Business Success

The Infrastructure Optimization Journey Identify where you are in the Infrastructure Optimization Model Identify highest impact options Identify biggest challenges Build a plan that maps to your business and IT priorities Work with your Microsoft Sales teams and /or Partner to help you “Microsoft can help plan, build and execute the journey to Infrastructure Optimization”

© 2006 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.