2. Software Assurance Adding Value To Your IT Investments Julie Giera Vice President Forrester Research

3. Agenda Concerns around the value of software licensing Concerns around the value of software licensing How Microsoft has improved Software Assurance How Microsoft has improved Software Assurance The benefits and business impact The benefits and business impact  Forrester Research findings How to take advantage of the benefits How to take advantage of the benefits Next steps Next steps

4. Business Concerns IT budgets are being scrutinized IT budgets are being scrutinized Software licensing and support fees are often targeted Software licensing and support fees are often targeted When asking for budget, articulating the value of license agreements is difficult When asking for budget, articulating the value of license agreements is difficult License agreements need to provide specific, quantifiable value that the boardroom can grasp License agreements need to provide specific, quantifiable value that the boardroom can grasp

5. Microsoft’s Response… Add Value to Software Assurance Help improve productivity Help improve productivity Increase the level of support Increase the level of support Provide powerful, useful tools Provide powerful, useful tools Make training easier and less costly Make training easier and less costly Main Focus Areas

6. Analyzing The Impact We’ve significantly increased the value of Software Assurance with Licensing 6.0 We’ve significantly increased the value of Software Assurance with Licensing 6.0 Upgrade Protection is now only a small portion of the entire value of SA Upgrade Protection is now only a small portion of the entire value of SA We asked Forrester Research to analyze the financial impact an average organization should expect from taking advantage of everything Licensing 6.0 has to offer We asked Forrester Research to analyze the financial impact an average organization should expect from taking advantage of everything Licensing 6.0 has to offer “Microsoft has been enhancing their licensing programs aggressively for the past 6 months… Microsoft’s Software Assurance has raised the bar in the entire software industry for the total value delivered to the customer” Julie Giera, VP, Research Fellow – Forrester Research

7. Improving Productivity Home user rights Home user rights Employee purchase plan Employee purchase plan New version rights New version rights How can a license agreement improve productivity? “CIOs will find not only productivity benefits for corporate workers, but there will be real dollars added to the budget as a result of the SA enhancements.” Julie Giera, VP, Research Fellow - Forrester Research

8. Home User Rights For Office Products Users are entitled to install the same Office software they are licensed for at work on their home PC Users are entitled to install the same Office software they are licensed for at work on their home PC Forrester Research found that Forrester Research found that  Employees with access to the office from home average 1.75 more hours of work per week for “free”; Salary Savings: $700-$8000/yr per person  Telecommuting employees average 14.5 additional work days per year; Salary Savings average $5,240 per year  Home User Rights software licensing savings range from $75-500 per person  Revenue generating departments, such as sales, can experience increases in revenues per employee  Total “value” of Home Use Rights: $980-$13,500 per year per employee (not including added revenues/profits from revenue generating employees) Data provided by TEI research conducted by the Giga Information Group, a subsidiary of Forrester Research, Inc. and is maintained exclusively by Giga Information Group. Data provided by TEI research conducted by the Giga Information Group, a subsidiary of Forrester Research, Inc. and is maintained exclusively by Giga Information Group.

9. Employee Purchase Plan Employees get significant discounts on most Microsoft productivity and consumer products (even products not licensed at work) Employees get significant discounts on most Microsoft productivity and consumer products (even products not licensed at work) Forrester Research found that Forrester Research found that  The Employee Purchase Plan Builds retention and employee satisfaction  Anecdotal evidence indicates employee satisfaction, for employees using the benefit, improves by average of 6% (Bristol Meyer Squibb employee benefit satisfaction survey – May, 2002)  Every 2 points of employee satisfaction results in 5% reduction in attrition  Average cost to replace technology worker is $67,000  A 15% reduction in attrition rates in a 100 person company translates to $80k-85k savings annually (attrition rates run an average of 8% these days)  Similar financial benefits as Home User Rights around doing additional work from home and telecommuting

10. New Version Rights Access to new versions of licensed software released during the term of your agreement to deploy at your own pace Access to new versions of licensed software released during the term of your agreement to deploy at your own pace Users get the latest, most productive software available Users get the latest, most productive software available Simplifies the procurement process Simplifies the procurement process Helps keep software costs down and the budget flat Helps keep software costs down and the budget flat

11. Increased Levels Of Support TechNet Concierge Service TechNet Concierge Service Free TechNet Plus subscriptions Free TechNet Plus subscriptions Problem Resolution Support Problem Resolution Support Extended Lifecycle Hotfixes Extended Lifecycle Hotfixes Reduce downtime and support costs

12. The Cost Of Downtime The average cost of downtime per hour ATM Service Fees$14,000 Online Network Fees$25,000 Airline Reservations$89,000 Catalog Sales$90,000 UPS/FedEX$150,000 Ebay$290,000 Credit Card Auth$2,600,000 Brokerage$6,500,000 * Source: Forrester Research

13. TechNet Concierge Service One-on-one Web-based assisted search chat sessions between Microsoft online advisors and users One-on-one Web-based assisted search chat sessions between Microsoft online advisors and users Forrester Research found that Forrester Research found that  TechNet Concierge Service improves Mean time to Repair (MTTR) for Microsoft-related incidents by between 5% and 50%  Assuming the Concierge Service saves 1 hour of downtime per year; average savings will be $8000  Reduces support costs per employee  IT support costs an average company $829/employee; A 1% reduction in support costs for a company with 5,000 employees would amount to $40,000  Total value of TechNet Concierge can range between $8,000 and $48,000+ per year

14. TechNet Plus Free subscription and unlimited installation of TechNet Plus content on any Microsoft server for use by administrators, employees, and contractors Free subscription and unlimited installation of TechNet Plus content on any Microsoft server for use by administrators, employees, and contractors Forrester Research found that Forrester Research found that  TechNet Plus – Free subscription saves $999 per user per year  Like Concierge, TechNet Plus will improve availability and reduce the costs of downtime  Technet Plus can reduce support calls by at least 10%  Technet Plus can reduce support costs for Microsoft Products by 10%  Technet Plus mitigates project risk and reduces upgrade project timelines; If timelines are reduced by only 1% for one Microsoft product upgrade in 3 years, the business value: $100k-$250k depending upon size of company  Reduced Help Desk calls – $1000 minimum  Total value of Technet Plus can range between $70,000 and $175,000 or more per year

15. Problem Resolution Support One-on-one Web and/or phone support One-on-one Web and/or phone support Forrester Research found that Forrester Research found that  Value gained for free versus paid support should average $5,000 + per year  Improvements in MTTR of 50% – value $20,000 + a year  Reduced support staff for Microsoft products by 5% – value $20,000  Improve server to support ratios by 10% – value $20,000 or more  Microsoft project timeline and quality improvements of 5% – value $100,000/year  Improved time to market for business initiatives involving Microsoft server platforms by 5% – value $30,000 +  Reduced Help Desk calls – value $2,000 +  Total business value per year: $197,000

16. Extended Lifecycle HotFix 2 years of additional hot-fix support beyond the normal 5 year lifecycle 2 years of additional hot-fix support beyond the normal 5 year lifecycle No longer required to pay for this service up front – only if you need it No longer required to pay for this service up front – only if you need it As always, security fixes are automatically extended to customers As always, security fixes are automatically extended to customers Allows you to upgrade your systems at your own pace, not according to our release schedule Allows you to upgrade your systems at your own pace, not according to our release schedule

17. Powerful, Useful Tools Corporate error reporting Corporate error reporting Enterprise source licensing Enterprise source licensing Windows pre-install environment Windows pre-install environment Save time and reduce support and deployment costs

18. Corporate Error Reporting – CER Provides a clear and easy way to monitor and review error information to control deployment of fixes and resolutions Provides a clear and easy way to monitor and review error information to control deployment of fixes and resolutions CER lets IT professionals map solutions to crashes CER lets IT professionals map solutions to crashes  Identify which systems are failing and why  Connect to up-to-date knowledge and fixes  Determine actionable information when escalation is required Forrester Research found that Forrester Research found that  CER reduces the number of Microsoft incidents by 2%-5% per year; Business value – $5,000 +  Help Desk call reduction $2,000+  Reductions in support technicians $10,000+  Total value of CER – $17,000/year or more

19. Enterprise Source Licensing Eligible customers with 1,500 or more licensed desktops can access Microsoft Windows source code for internal development and support Eligible customers with 1,500 or more licensed desktops can access Microsoft Windows source code for internal development and support Forrester Research found that Forrester Research found that  Value will vary widely depending upon how the source is used; Benefits to having source available include  The ability to customize Microsoft products to fit the needs of the business; Value $100k+  Ability to run non-supported releases of Microsoft products  Value: Highly variable – $100k to Millions of dollars

20. Windows Pre-Install Environment WinPE is a tool that allows IT staff to build custom solutions that speed up deployment through automation, spending less time and effort keeping desktops updated WinPE is a tool that allows IT staff to build custom solutions that speed up deployment through automation, spending less time and effort keeping desktops updated Forrester Research found that WinPE Forrester Research found that WinPE  Reduced Windows Deployment Time by 5%  Reduced Errors for Windows Deployments  Facilitates the application of Fixes and Updates  Mitigates impact and risk to the business  Reduced calls to the help desk  Value: From $20k +

21. Easier, More Cost Effective Training Built in e-Learning on Microsoft products Built in e-Learning on Microsoft products Third-party training vouchers for advanced learning Third-party training vouchers for advanced learning Make your technology dollars work harder; Keep staff trained on the latest technology for less

22. e-Learning On Microsoft Products An engaging, effective learning experience for employees who need to upgrade their skills and knowledge An engaging, effective learning experience for employees who need to upgrade their skills and knowledge Can be used as traditional training or as a just-in-time reference resource – either online or offline Can be used as traditional training or as a just-in-time reference resource – either online or offline Forrester Research found that Forrester Research found that  Reductions in training budgets – Value $10,000+  Reductions in help desk calls for “how-to” questions  Improved user productivity – 24 x 7  Reductions in Support Costs  Reductions in Travel and Expense  Value: $50,000 +

23. Third-Party Training Vouchers Receive training vouchers for training on select courses from Microsoft Certified Technical Education Centers Receive training vouchers for training on select courses from Microsoft Certified Technical Education Centers Forrester Research found that Forrester Research found that  Reductions in training budgets – Value $10,000+  Improvements in support/availability  Improvements in Employee satisfaction and retention  Reductions in support costs  Reduced project time and cost  Improved time to market for business initiatives  Ability to offer new products and services  Reductions in errors  Value: $50,000+

24. Overall Business Impact Simpler budgeting for software and support Simpler budgeting for software and support Improved productivity for knowledge workers and IT staff Improved productivity for knowledge workers and IT staff Quicker, simpler deployments, support and management with advanced, powerful, useful tools Quicker, simpler deployments, support and management with advanced, powerful, useful tools Significant savings in training costs Significant savings in training costs Between $417,000 and $716,000 per year. – Forrester Research

25. Future Value Corporate management tools Corporate management tools Solution Accelerators (coming 2004) Solution Accelerators (coming 2004)  Six Sigma  Business Intelligence  Business Intelligence  Team Collaboration  Integrated communications SA also makes available future benefits  Personal Productivity  Mobil Workforce  Enterprise Project Management  Business Process automation

26. Activating Your SA Benefits Does not require the purchase of a new contract Does not require the purchase of a new contract Current, new, and renewing SA customers are entitled to receive new SA benefits Current, new, and renewing SA customers are entitled to receive new SA benefits Assign an internal Benefits Administrator* Assign an internal Benefits Administrator* Work with your LAR to facilitate benefits access and utilization Work with your LAR to facilitate benefits access and utilization How do I take advantage of the extended value of SA?

27. Summary The responsibility of articulating the value IT rests on the shoulders of the CIO The responsibility of articulating the value IT rests on the shoulders of the CIO Microsoft has significantly and tangibly expanded the value of Software Assurance through things such as Microsoft has significantly and tangibly expanded the value of Software Assurance through things such as  Home user rights, built in support, advanced tools, and training vouchers The over all business impact of SA is substantial, saving between $1.5mil and $2.1mil over 3 years (Forrester) The over all business impact of SA is substantial, saving between $1.5mil and $2.1mil over 3 years (Forrester) Third-party analysis has found tremendous value has been added to SA at the expense of Microsoft Third-party analysis has found tremendous value has been added to SA at the expense of Microsoft Take advantage of these benefits now available to you Take advantage of these benefits now available to you

28. Next Steps Contact your software provider for help with managing benefits across your organization Contact your software provider for help with managing benefits across your organization Ensure your license notices contacts are aware of the software assurance benefits and communicate them to your employees Ensure your license notices contacts are aware of the software assurance benefits and communicate them to your employees Register your Benefits Administrator through the Microsoft Volume Licensing Services Web site (licensing.microsoft.com) Register your Benefits Administrator through the Microsoft Volume Licensing Services Web site (licensing.microsoft.com) Assign benefits to your employees in order to utilize your SA benefits right away Assign benefits to your employees in order to utilize your SA benefits right away

29. More Resources Microsoft Volume Licensing Web site: www.microsoft.com/licensing/programs/sa Microsoft Volume Licensing Web site: www.microsoft.com/licensing/programs/sa www.microsoft.com/licensing/programs/sa Benefits Support Center Benefits Support Center  E-Mail: mvlshelpa@msdirectservices.com mvlshelpa@msdirectservices.com  Phone: 1-866-230-0560 for benefits assistance

30. © 2003 Microsoft Corporation. All rights reserved. This presentation is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY. Microsoft, Microsoft Press, Visual Studio, Visual SourceSafe, Windows and Windows NT are either registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries. The names of actual companies and products mentioned herein may be the trademarks of their respective owners.

31. Training Vouchers Review Table Benefits Open License Open Value SAM/EA 250 – 2,399 qualifying SA SAM/EA 2,400 – 5,999 qualifying SA SAM/EA 6,000 – 14,999 qualifying SA SAM/EA 15,000 + qualifying SA TrainingVouchers Office Suites N/A 2 days for every 50 qualifying Office Suites licenses; maximum 10 days 20 days training credits upon meeting min. license requirement 10 additional days upon meeting min. license requirement 20 additional days upon meeting min. license requirement 60 additional days upon meeting min. license requirement WindowsN/A 1 day for every 50 qualifying Windows Licenses; maximum 5 days 10 days training credits upon meeting min. license requirement 5 additional days upon meeting min. license requirement 10 additional days upon meeting min. license requirement 30 additional days upon meeting min. license requirement