Slide 1

Delivering Value to Our
Customers and Partners
Dan Bulucea
Platform Strategy Manager
Microsoft Eastern Europe

Agenda
Market Overview
Microsoft’s Commitment to Customers
Integrated Innovation Advantage
Economic Impact of IT
Why Microsoft

Market Overview
IT Industry Trends
Everyone agrees on one thing: the move
to x86
Price/performance and flexibility driving change

Focus on security
Increasing pressures to do more with less
Broad web services movement
24x7 availability essential in a global
economy

Market Overview
Market Trends
IBM want this to be all about their services
“Devalue” the platform and monopolize service
opportunities

Novell connecting the dots with strategic
acquisitions
Attempting an end-to-end platform play on Linux

Oracle supporting Linux adoption
Sun delivering strategy “du jour”
Customer demands, platform challenges, cost models

New companies developing roots in the market
(e.g., RedHat, MySQL, other Open Source
vendors)

Customers Told Us…
Customer Requirement

Microsoft Commitment

Increase economic value

Best Value

Protect my data

Stronger
Security

Reduce downtime

Reliability
and Availability

Leverage existing assets

Interoperability

Connect with customers (Revenue)
Integrate with partners (Profitability)
Empower employees (Productivity)

Integrated
Innovation

Proof Of Our Commitment To Customers
Microsoft Commitment

Best value
Stronger
Security
Reliability
and Availability
Interoperability

Integrated
Innovation
Go to www.getthefacts.com for complete reports

Third Party Validation

Best Value
Does Linux cost less to acquire?

Source: Bearing Point, Server Operating System Licensing and
Support Cost Comparison – May 2004
** Full Support indicates 24x7 support on all servers. Limited
Support indicates 24x7 support on only 10% of servers.

Best Value
Does Linux have lower TCO?

Noncommissioned Studies:

Security
OS Bulletins - 2003

An industry problem…
Companies Detecting
Security Breaches

92%
Source: 2003 Computer Security Institute survey
of 250 major US companies

…a Microsoft priority
SD3+C
Secure by:
Design
Default
Deployment
Communications

125
100
75
1
250
25
0

RedHat
Microsoft

120

87
43
2002

39
2003

Source: OS Bulletins from Vendor Web Sites

180 Days Later

57

60
45
30

32

34

14

15
0

RH8

RH9

WS00 WS03

Security
Is Linux more secure?

All Days of Risk
25

Microsoft
RedHat

57

Debian

57

128

82

Microsoft

74
0

20

40

Source: “Is Windows More Secure than Linux?”, Forrester, March 2004

60

120

86

MandrakeSoft
SUSE

162

80

100

Red Hat

Debian

Mandrake
Soft

Source: Forrester Research: http://www.forrester.com/Research/Document/
Excerpt/0,7211,33941,00.html

111

SUSE

Security
Is Linux more secure?
Common
Customer Questions

Forrester Response:
“What matters”

Forrester
Analysis

1.

“Linux distributions
say they can fix
things within just
hours, why can’t
Microsoft do that?”

“Microsoft’s average
of 25 days between disclosure & release of a
fix was the lowest of all the platform
maintainers we evaluated.”

2.

“Doesn’t Linux have
fewer bugs and
aren’t they less
severe than
Windows bugs?”

Forrester analysis shows Microsoft having
the fewest high-severity flaws of any vendor
– and 25 less than the next lowest

3.

“Isn’t open source
software better at
fixing vulnerabilities
than Microsoft?”

Forrester analysis shows Microsoft as the
only vendor to fix 100% of the flaws
discovered

Reliability
VeriTest Proof of our System Reliability

End User Pain
Average Service Loss Time
HH:MM:SS

More reliable

4:59:44
4.5

4:20:19

4

Hours

Windows prevented 4x more events
Windows detected over 2x as many issues
before the trouble ticket was received
Windows system issues (created by test
proctor) were resolved 20% faster and 8%
more successfully

5

3.5
3
2.5
2

Windows

Linux

Configuring the Environment
Total Time for Completed Tasks*

Easier to Maintain
25

20:55:13
20

Hours

Windows required approx. 50% less time to
complete directory-related tasks with Active
Directory vs. OpenLDAP
Windows tape drive and printer
configurations were completed over 2x faster
Improving system fault tolerance/redundancy
required >2x more time for Linux

HH:MM:SS

15

13:11:56

10
5
0

Windows

Linux

*21% more “proactive” tasks completed on Windows

Interoperability
Microsoft’s Approach
Enable Microsoft technology to work well with
Windows and non-Windows applications
Develop solutions based on industry standards

Provide rich services
that address key
business scenarios
Enable ISVs to
develop solutions and
solve niche needs

MS Interoperability Model

Interoperability
Developer Priorities

Interoperability is
very important

Interop

65%

48%
44%

Security
Support
0

20

40

60

80

Interoperability Prioritization

Windows
interoperability
is first priority

79%

Windows

43%

Unix
Linux

22%
0

20

40

60

80

Best Support of Interoperability

Microsoft is doing the
most to achieve
interoperability goals
Source: Jupiter research survey, 12/03

72%
63%
55%

MS
IBM

Linux
0

20

40

60

% of IT Decision Makers

80

File/Print Services
Network Access Services
Directory/Security Services
Kernel

Platform Features

MSMQ

Windows Media Services

Windows Server
Distributed File Service STS
VPN

RAS

PKI

Smart Card

Active Directory WMI Kerberos

Consistent
Interfaces

3rd Party Products

?

OpenOffice
?

?

Real or Darwin Media Server*
?

Apache
Samba
OpenLDAP
?

?

Linux Kernel

Windows Kernel
Common
Mgmt Infra

?

?

Sendmail

3rd Party Products

Mobile Info Svr

Transaction Service

JBOSS

Single
Sign-On

Customer Requirements Microsoft Platform

?

Linux Platform

**Some services not available in Linux distributions are available at additional cost from vendors such as IBM

?

Web Services

J2EE/PHP

.NET Framework IIS ASP.NET

?

Media Services

MySQL

Visual Studio.NET

Application Services

SMS 2003, MOM 2005

Programming Frameworks

SQL Server

Integrated Development Tools

Integrated Management Tools

Integrated Data Management

Office 2003

BizTalk, CS2002

MMS, ISA, AD

Exchange, SPS

Other

Mobility

Productivity

Commerce

Identity Mgmt

Collaboration

Integrated Innovation

Customer Value – Local Evidence
TZUM – Retail (Bulgaria)
TZUM switched from Linux to Windows Server 2003 for
better integration and easier management. Its new IT
infrastructure runs 30% more efficiently
Zotel – Telecommunications (Poland)
Switch from Linux to Microsoft reduces IT costs by 30%

Duna TV – Media Service Provider (Hungary)
Switch to Microsoft Exchange Server 2003 from Linux
cuts operating costs by half
Romgaz – Utility (Romania)
Evaluated Linux and OSS but chose Microsoft because of
ease-of-use, support and features
Ahold – Retail (Czech Republic)
Consolidation from Linux and Novell to Windows
infrastructure

IDC EMEA Economic Impact Study, 2004
• Update of preceding Economic Impact Model studies

• Analyzes the specific contributions of the software
sector
• This research covered 19 countries (~82% of IT
spending in EMEA):
Austria
Denmark
France
Germany
Ireland
Italy
Netherlands
Portugal
Spain
UK

Czech Republic
Estonia
Hungary
Lithuania
Russia
Poland
Israel
South Africa
Turkey

Microsoft-Related Economic Impact
Microsoft-Related Employees in 2004*

C ze c h R e p
E s to n ia
H u n g a ry
L ith u a n ia
P o la n d
R u s s ia
T o ta l E E G ro u p

S e rvic e s &

IT

H a rd w a re

S o ftw a re

C h a n n e ls

P ro fe s s io n a ls

T o ta l

% T o ta l

1 ,6 8 6
510
1 ,2 4 7
854
3 ,8 0 1
7 ,9 3 7

599
209
446
287
838
656

1 2 ,6 5 1
2 ,3 6 4
8 ,9 1 0
6 ,4 0 2
2 1 ,9 7 4
3 8 ,5 1 2

3 4 ,2 2 1
3 ,0 9 1
2 5 ,9 1 3
3 ,7 1 4
7 0 ,0 1 6
1 3 1 ,2 8 6

4 9 ,1 5 7
6 ,1 7 4
3 6 ,5 1 6
1 1 ,2 5 7
9 6 ,6 3 0
1 7 8 ,3 9 1

40%
54%
41%
54%
50%
55%

1 6 ,0 3 6

3 ,0 3 5

9 0 ,8 1 4

2 6 8 ,2 4 1

3 7 8 ,1 2 5

49%

Microsoft-Related Taxes ($M)**
C zech R ep
E stonia
H ungary
Lithuania
P oland
R ussia
To tal E E G ro u p

$181
$29
$231
$26
$565
$279
$1,312

* Employees in companies that create, sell, distribute, or service hardware or software that runs on Microsoft operating systems and IT employees at user organization that develop
applications, service, or maintain such hardware or software
** Includes value-added or sales taxes, corporate income taxes, and personal income and social taxes

Source: IDC IT Economic Impact Study, 2004, 19 Countries

Economic Impact Study in Slovakia, 2003
Run by Institute of Slovak and World Economy – part
of Slovak Academy of Science
Impact of IT on economic growth
Position the Slovak IT sector in regional and global
perspectives
Compare impact of IT sector with other branches
Microsoft contribution to Slovak IT sector

Analyzes the impact made by the commercial software
model and Microsoft on the local economy
1 SK spent on purchasing of software from Microsoft would
generate a nearly 7 SK effect on the Slovak economy

Software Industry Trends in Latvia, 2004
Research conducted by Latvian Information Technology
and Telecommunication Association (LITTA)
Analyzes the business trends in software development,
service and distribution industry
Usage of commercial and open source platforms in business
and company resources invested in each of these platforms.
Assessment of economic impact of the software industry trends
on the national economy

Findings:
Commercial software model creates the highest value added
for their company - 100% of all respondents
Commercial platform is considered with lower total
development costs

IDC IT Economic Impact Study, 2005

Economic Impact of the IT Sector
in South East Europe
The research covers 6 countries:
Bulgaria
Croatia
Macedonia
Romania

Serbia and Montenegro
Slovenia

Microsoft Related Employment
Total IT
Employees
in 2004

MicrosoftRelated
Employees
in 2004*

% Total

MicrosoftRelated
Taxes
($M)**

Bulgaria

27.462

14.285

52%

$32,2

Croatia

20.044

9.365

47%

$73,0

2.894

1.613

56%

$6,6

Romania

29.251

18.995

65%

$63,7

Slovenia

18.222

8.483

47%

$109,2

Serbia & Montenegro

24.173

11.844

49%

$27

122.046

64.585

53%

$311

Macedonia

Total Group

Source: IDC IT Economic Impact Study, 2005, 6 South East European Countries

Revenues
In SEE the IT sector generates over $600 million in tax
receipts
Includes value-added or sales taxes, corporate income taxes,
and personal income and social taxes

Over $300 million of this is attributed to companies
and employees working with Microsoft products
1 : 8.5
For every dollar of Microsoft revenue in the region, another
eight and a half were generated by other companies selling
hardware or software that works on Microsoft operating
systems, or servicing that software

Source: IDC IT Economic Impact Study, 2005, 6 South East European Countries

Government
Policy
Industry
Interoperability

Security & Quality
Ongoing Relationship
Indemnification
Support

Productivity partner
Breakthroughs
Integration
Manageability

Applications
Compatibility
Hardware
Partners

© 2004 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.


Slide 2

Delivering Value to Our
Customers and Partners
Dan Bulucea
Platform Strategy Manager
Microsoft Eastern Europe

Agenda
Market Overview
Microsoft’s Commitment to Customers
Integrated Innovation Advantage
Economic Impact of IT
Why Microsoft

Market Overview
IT Industry Trends
Everyone agrees on one thing: the move
to x86
Price/performance and flexibility driving change

Focus on security
Increasing pressures to do more with less
Broad web services movement
24x7 availability essential in a global
economy

Market Overview
Market Trends
IBM want this to be all about their services
“Devalue” the platform and monopolize service
opportunities

Novell connecting the dots with strategic
acquisitions
Attempting an end-to-end platform play on Linux

Oracle supporting Linux adoption
Sun delivering strategy “du jour”
Customer demands, platform challenges, cost models

New companies developing roots in the market
(e.g., RedHat, MySQL, other Open Source
vendors)

Customers Told Us…
Customer Requirement

Microsoft Commitment

Increase economic value

Best Value

Protect my data

Stronger
Security

Reduce downtime

Reliability
and Availability

Leverage existing assets

Interoperability

Connect with customers (Revenue)
Integrate with partners (Profitability)
Empower employees (Productivity)

Integrated
Innovation

Proof Of Our Commitment To Customers
Microsoft Commitment

Best value
Stronger
Security
Reliability
and Availability
Interoperability

Integrated
Innovation
Go to www.getthefacts.com for complete reports

Third Party Validation

Best Value
Does Linux cost less to acquire?

Source: Bearing Point, Server Operating System Licensing and
Support Cost Comparison – May 2004
** Full Support indicates 24x7 support on all servers. Limited
Support indicates 24x7 support on only 10% of servers.

Best Value
Does Linux have lower TCO?

Noncommissioned Studies:

Security
OS Bulletins - 2003

An industry problem…
Companies Detecting
Security Breaches

92%
Source: 2003 Computer Security Institute survey
of 250 major US companies

…a Microsoft priority
SD3+C
Secure by:
Design
Default
Deployment
Communications

125
100
75
1
250
25
0

RedHat
Microsoft

120

87
43
2002

39
2003

Source: OS Bulletins from Vendor Web Sites

180 Days Later

57

60
45
30

32

34

14

15
0

RH8

RH9

WS00 WS03

Security
Is Linux more secure?

All Days of Risk
25

Microsoft
RedHat

57

Debian

57

128

82

Microsoft

74
0

20

40

Source: “Is Windows More Secure than Linux?”, Forrester, March 2004

60

120

86

MandrakeSoft
SUSE

162

80

100

Red Hat

Debian

Mandrake
Soft

Source: Forrester Research: http://www.forrester.com/Research/Document/
Excerpt/0,7211,33941,00.html

111

SUSE

Security
Is Linux more secure?
Common
Customer Questions

Forrester Response:
“What matters”

Forrester
Analysis

1.

“Linux distributions
say they can fix
things within just
hours, why can’t
Microsoft do that?”

“Microsoft’s average
of 25 days between disclosure & release of a
fix was the lowest of all the platform
maintainers we evaluated.”

2.

“Doesn’t Linux have
fewer bugs and
aren’t they less
severe than
Windows bugs?”

Forrester analysis shows Microsoft having
the fewest high-severity flaws of any vendor
– and 25 less than the next lowest

3.

“Isn’t open source
software better at
fixing vulnerabilities
than Microsoft?”

Forrester analysis shows Microsoft as the
only vendor to fix 100% of the flaws
discovered

Reliability
VeriTest Proof of our System Reliability

End User Pain
Average Service Loss Time
HH:MM:SS

More reliable

4:59:44
4.5

4:20:19

4

Hours

Windows prevented 4x more events
Windows detected over 2x as many issues
before the trouble ticket was received
Windows system issues (created by test
proctor) were resolved 20% faster and 8%
more successfully

5

3.5
3
2.5
2

Windows

Linux

Configuring the Environment
Total Time for Completed Tasks*

Easier to Maintain
25

20:55:13
20

Hours

Windows required approx. 50% less time to
complete directory-related tasks with Active
Directory vs. OpenLDAP
Windows tape drive and printer
configurations were completed over 2x faster
Improving system fault tolerance/redundancy
required >2x more time for Linux

HH:MM:SS

15

13:11:56

10
5
0

Windows

Linux

*21% more “proactive” tasks completed on Windows

Interoperability
Microsoft’s Approach
Enable Microsoft technology to work well with
Windows and non-Windows applications
Develop solutions based on industry standards

Provide rich services
that address key
business scenarios
Enable ISVs to
develop solutions and
solve niche needs

MS Interoperability Model

Interoperability
Developer Priorities

Interoperability is
very important

Interop

65%

48%
44%

Security
Support
0

20

40

60

80

Interoperability Prioritization

Windows
interoperability
is first priority

79%

Windows

43%

Unix
Linux

22%
0

20

40

60

80

Best Support of Interoperability

Microsoft is doing the
most to achieve
interoperability goals
Source: Jupiter research survey, 12/03

72%
63%
55%

MS
IBM

Linux
0

20

40

60

% of IT Decision Makers

80

File/Print Services
Network Access Services
Directory/Security Services
Kernel

Platform Features

MSMQ

Windows Media Services

Windows Server
Distributed File Service STS
VPN

RAS

PKI

Smart Card

Active Directory WMI Kerberos

Consistent
Interfaces

3rd Party Products

?

OpenOffice
?

?

Real or Darwin Media Server*
?

Apache
Samba
OpenLDAP
?

?

Linux Kernel

Windows Kernel
Common
Mgmt Infra

?

?

Sendmail

3rd Party Products

Mobile Info Svr

Transaction Service

JBOSS

Single
Sign-On

Customer Requirements Microsoft Platform

?

Linux Platform

**Some services not available in Linux distributions are available at additional cost from vendors such as IBM

?

Web Services

J2EE/PHP

.NET Framework IIS ASP.NET

?

Media Services

MySQL

Visual Studio.NET

Application Services

SMS 2003, MOM 2005

Programming Frameworks

SQL Server

Integrated Development Tools

Integrated Management Tools

Integrated Data Management

Office 2003

BizTalk, CS2002

MMS, ISA, AD

Exchange, SPS

Other

Mobility

Productivity

Commerce

Identity Mgmt

Collaboration

Integrated Innovation

Customer Value – Local Evidence
TZUM – Retail (Bulgaria)
TZUM switched from Linux to Windows Server 2003 for
better integration and easier management. Its new IT
infrastructure runs 30% more efficiently
Zotel – Telecommunications (Poland)
Switch from Linux to Microsoft reduces IT costs by 30%

Duna TV – Media Service Provider (Hungary)
Switch to Microsoft Exchange Server 2003 from Linux
cuts operating costs by half
Romgaz – Utility (Romania)
Evaluated Linux and OSS but chose Microsoft because of
ease-of-use, support and features
Ahold – Retail (Czech Republic)
Consolidation from Linux and Novell to Windows
infrastructure

IDC EMEA Economic Impact Study, 2004
• Update of preceding Economic Impact Model studies

• Analyzes the specific contributions of the software
sector
• This research covered 19 countries (~82% of IT
spending in EMEA):
Austria
Denmark
France
Germany
Ireland
Italy
Netherlands
Portugal
Spain
UK

Czech Republic
Estonia
Hungary
Lithuania
Russia
Poland
Israel
South Africa
Turkey

Microsoft-Related Economic Impact
Microsoft-Related Employees in 2004*

C ze c h R e p
E s to n ia
H u n g a ry
L ith u a n ia
P o la n d
R u s s ia
T o ta l E E G ro u p

S e rvic e s &

IT

H a rd w a re

S o ftw a re

C h a n n e ls

P ro fe s s io n a ls

T o ta l

% T o ta l

1 ,6 8 6
510
1 ,2 4 7
854
3 ,8 0 1
7 ,9 3 7

599
209
446
287
838
656

1 2 ,6 5 1
2 ,3 6 4
8 ,9 1 0
6 ,4 0 2
2 1 ,9 7 4
3 8 ,5 1 2

3 4 ,2 2 1
3 ,0 9 1
2 5 ,9 1 3
3 ,7 1 4
7 0 ,0 1 6
1 3 1 ,2 8 6

4 9 ,1 5 7
6 ,1 7 4
3 6 ,5 1 6
1 1 ,2 5 7
9 6 ,6 3 0
1 7 8 ,3 9 1

40%
54%
41%
54%
50%
55%

1 6 ,0 3 6

3 ,0 3 5

9 0 ,8 1 4

2 6 8 ,2 4 1

3 7 8 ,1 2 5

49%

Microsoft-Related Taxes ($M)**
C zech R ep
E stonia
H ungary
Lithuania
P oland
R ussia
To tal E E G ro u p

$181
$29
$231
$26
$565
$279
$1,312

* Employees in companies that create, sell, distribute, or service hardware or software that runs on Microsoft operating systems and IT employees at user organization that develop
applications, service, or maintain such hardware or software
** Includes value-added or sales taxes, corporate income taxes, and personal income and social taxes

Source: IDC IT Economic Impact Study, 2004, 19 Countries

Economic Impact Study in Slovakia, 2003
Run by Institute of Slovak and World Economy – part
of Slovak Academy of Science
Impact of IT on economic growth
Position the Slovak IT sector in regional and global
perspectives
Compare impact of IT sector with other branches
Microsoft contribution to Slovak IT sector

Analyzes the impact made by the commercial software
model and Microsoft on the local economy
1 SK spent on purchasing of software from Microsoft would
generate a nearly 7 SK effect on the Slovak economy

Software Industry Trends in Latvia, 2004
Research conducted by Latvian Information Technology
and Telecommunication Association (LITTA)
Analyzes the business trends in software development,
service and distribution industry
Usage of commercial and open source platforms in business
and company resources invested in each of these platforms.
Assessment of economic impact of the software industry trends
on the national economy

Findings:
Commercial software model creates the highest value added
for their company - 100% of all respondents
Commercial platform is considered with lower total
development costs

IDC IT Economic Impact Study, 2005

Economic Impact of the IT Sector
in South East Europe
The research covers 6 countries:
Bulgaria
Croatia
Macedonia
Romania

Serbia and Montenegro
Slovenia

Microsoft Related Employment
Total IT
Employees
in 2004

MicrosoftRelated
Employees
in 2004*

% Total

MicrosoftRelated
Taxes
($M)**

Bulgaria

27.462

14.285

52%

$32,2

Croatia

20.044

9.365

47%

$73,0

2.894

1.613

56%

$6,6

Romania

29.251

18.995

65%

$63,7

Slovenia

18.222

8.483

47%

$109,2

Serbia & Montenegro

24.173

11.844

49%

$27

122.046

64.585

53%

$311

Macedonia

Total Group

Source: IDC IT Economic Impact Study, 2005, 6 South East European Countries

Revenues
In SEE the IT sector generates over $600 million in tax
receipts
Includes value-added or sales taxes, corporate income taxes,
and personal income and social taxes

Over $300 million of this is attributed to companies
and employees working with Microsoft products
1 : 8.5
For every dollar of Microsoft revenue in the region, another
eight and a half were generated by other companies selling
hardware or software that works on Microsoft operating
systems, or servicing that software

Source: IDC IT Economic Impact Study, 2005, 6 South East European Countries

Government
Policy
Industry
Interoperability

Security & Quality
Ongoing Relationship
Indemnification
Support

Productivity partner
Breakthroughs
Integration
Manageability

Applications
Compatibility
Hardware
Partners

© 2004 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.


Slide 3

Delivering Value to Our
Customers and Partners
Dan Bulucea
Platform Strategy Manager
Microsoft Eastern Europe

Agenda
Market Overview
Microsoft’s Commitment to Customers
Integrated Innovation Advantage
Economic Impact of IT
Why Microsoft

Market Overview
IT Industry Trends
Everyone agrees on one thing: the move
to x86
Price/performance and flexibility driving change

Focus on security
Increasing pressures to do more with less
Broad web services movement
24x7 availability essential in a global
economy

Market Overview
Market Trends
IBM want this to be all about their services
“Devalue” the platform and monopolize service
opportunities

Novell connecting the dots with strategic
acquisitions
Attempting an end-to-end platform play on Linux

Oracle supporting Linux adoption
Sun delivering strategy “du jour”
Customer demands, platform challenges, cost models

New companies developing roots in the market
(e.g., RedHat, MySQL, other Open Source
vendors)

Customers Told Us…
Customer Requirement

Microsoft Commitment

Increase economic value

Best Value

Protect my data

Stronger
Security

Reduce downtime

Reliability
and Availability

Leverage existing assets

Interoperability

Connect with customers (Revenue)
Integrate with partners (Profitability)
Empower employees (Productivity)

Integrated
Innovation

Proof Of Our Commitment To Customers
Microsoft Commitment

Best value
Stronger
Security
Reliability
and Availability
Interoperability

Integrated
Innovation
Go to www.getthefacts.com for complete reports

Third Party Validation

Best Value
Does Linux cost less to acquire?

Source: Bearing Point, Server Operating System Licensing and
Support Cost Comparison – May 2004
** Full Support indicates 24x7 support on all servers. Limited
Support indicates 24x7 support on only 10% of servers.

Best Value
Does Linux have lower TCO?

Noncommissioned Studies:

Security
OS Bulletins - 2003

An industry problem…
Companies Detecting
Security Breaches

92%
Source: 2003 Computer Security Institute survey
of 250 major US companies

…a Microsoft priority
SD3+C
Secure by:
Design
Default
Deployment
Communications

125
100
75
1
250
25
0

RedHat
Microsoft

120

87
43
2002

39
2003

Source: OS Bulletins from Vendor Web Sites

180 Days Later

57

60
45
30

32

34

14

15
0

RH8

RH9

WS00 WS03

Security
Is Linux more secure?

All Days of Risk
25

Microsoft
RedHat

57

Debian

57

128

82

Microsoft

74
0

20

40

Source: “Is Windows More Secure than Linux?”, Forrester, March 2004

60

120

86

MandrakeSoft
SUSE

162

80

100

Red Hat

Debian

Mandrake
Soft

Source: Forrester Research: http://www.forrester.com/Research/Document/
Excerpt/0,7211,33941,00.html

111

SUSE

Security
Is Linux more secure?
Common
Customer Questions

Forrester Response:
“What matters”

Forrester
Analysis

1.

“Linux distributions
say they can fix
things within just
hours, why can’t
Microsoft do that?”

“Microsoft’s average
of 25 days between disclosure & release of a
fix was the lowest of all the platform
maintainers we evaluated.”

2.

“Doesn’t Linux have
fewer bugs and
aren’t they less
severe than
Windows bugs?”

Forrester analysis shows Microsoft having
the fewest high-severity flaws of any vendor
– and 25 less than the next lowest

3.

“Isn’t open source
software better at
fixing vulnerabilities
than Microsoft?”

Forrester analysis shows Microsoft as the
only vendor to fix 100% of the flaws
discovered

Reliability
VeriTest Proof of our System Reliability

End User Pain
Average Service Loss Time
HH:MM:SS

More reliable

4:59:44
4.5

4:20:19

4

Hours

Windows prevented 4x more events
Windows detected over 2x as many issues
before the trouble ticket was received
Windows system issues (created by test
proctor) were resolved 20% faster and 8%
more successfully

5

3.5
3
2.5
2

Windows

Linux

Configuring the Environment
Total Time for Completed Tasks*

Easier to Maintain
25

20:55:13
20

Hours

Windows required approx. 50% less time to
complete directory-related tasks with Active
Directory vs. OpenLDAP
Windows tape drive and printer
configurations were completed over 2x faster
Improving system fault tolerance/redundancy
required >2x more time for Linux

HH:MM:SS

15

13:11:56

10
5
0

Windows

Linux

*21% more “proactive” tasks completed on Windows

Interoperability
Microsoft’s Approach
Enable Microsoft technology to work well with
Windows and non-Windows applications
Develop solutions based on industry standards

Provide rich services
that address key
business scenarios
Enable ISVs to
develop solutions and
solve niche needs

MS Interoperability Model

Interoperability
Developer Priorities

Interoperability is
very important

Interop

65%

48%
44%

Security
Support
0

20

40

60

80

Interoperability Prioritization

Windows
interoperability
is first priority

79%

Windows

43%

Unix
Linux

22%
0

20

40

60

80

Best Support of Interoperability

Microsoft is doing the
most to achieve
interoperability goals
Source: Jupiter research survey, 12/03

72%
63%
55%

MS
IBM

Linux
0

20

40

60

% of IT Decision Makers

80

File/Print Services
Network Access Services
Directory/Security Services
Kernel

Platform Features

MSMQ

Windows Media Services

Windows Server
Distributed File Service STS
VPN

RAS

PKI

Smart Card

Active Directory WMI Kerberos

Consistent
Interfaces

3rd Party Products

?

OpenOffice
?

?

Real or Darwin Media Server*
?

Apache
Samba
OpenLDAP
?

?

Linux Kernel

Windows Kernel
Common
Mgmt Infra

?

?

Sendmail

3rd Party Products

Mobile Info Svr

Transaction Service

JBOSS

Single
Sign-On

Customer Requirements Microsoft Platform

?

Linux Platform

**Some services not available in Linux distributions are available at additional cost from vendors such as IBM

?

Web Services

J2EE/PHP

.NET Framework IIS ASP.NET

?

Media Services

MySQL

Visual Studio.NET

Application Services

SMS 2003, MOM 2005

Programming Frameworks

SQL Server

Integrated Development Tools

Integrated Management Tools

Integrated Data Management

Office 2003

BizTalk, CS2002

MMS, ISA, AD

Exchange, SPS

Other

Mobility

Productivity

Commerce

Identity Mgmt

Collaboration

Integrated Innovation

Customer Value – Local Evidence
TZUM – Retail (Bulgaria)
TZUM switched from Linux to Windows Server 2003 for
better integration and easier management. Its new IT
infrastructure runs 30% more efficiently
Zotel – Telecommunications (Poland)
Switch from Linux to Microsoft reduces IT costs by 30%

Duna TV – Media Service Provider (Hungary)
Switch to Microsoft Exchange Server 2003 from Linux
cuts operating costs by half
Romgaz – Utility (Romania)
Evaluated Linux and OSS but chose Microsoft because of
ease-of-use, support and features
Ahold – Retail (Czech Republic)
Consolidation from Linux and Novell to Windows
infrastructure

IDC EMEA Economic Impact Study, 2004
• Update of preceding Economic Impact Model studies

• Analyzes the specific contributions of the software
sector
• This research covered 19 countries (~82% of IT
spending in EMEA):
Austria
Denmark
France
Germany
Ireland
Italy
Netherlands
Portugal
Spain
UK

Czech Republic
Estonia
Hungary
Lithuania
Russia
Poland
Israel
South Africa
Turkey

Microsoft-Related Economic Impact
Microsoft-Related Employees in 2004*

C ze c h R e p
E s to n ia
H u n g a ry
L ith u a n ia
P o la n d
R u s s ia
T o ta l E E G ro u p

S e rvic e s &

IT

H a rd w a re

S o ftw a re

C h a n n e ls

P ro fe s s io n a ls

T o ta l

% T o ta l

1 ,6 8 6
510
1 ,2 4 7
854
3 ,8 0 1
7 ,9 3 7

599
209
446
287
838
656

1 2 ,6 5 1
2 ,3 6 4
8 ,9 1 0
6 ,4 0 2
2 1 ,9 7 4
3 8 ,5 1 2

3 4 ,2 2 1
3 ,0 9 1
2 5 ,9 1 3
3 ,7 1 4
7 0 ,0 1 6
1 3 1 ,2 8 6

4 9 ,1 5 7
6 ,1 7 4
3 6 ,5 1 6
1 1 ,2 5 7
9 6 ,6 3 0
1 7 8 ,3 9 1

40%
54%
41%
54%
50%
55%

1 6 ,0 3 6

3 ,0 3 5

9 0 ,8 1 4

2 6 8 ,2 4 1

3 7 8 ,1 2 5

49%

Microsoft-Related Taxes ($M)**
C zech R ep
E stonia
H ungary
Lithuania
P oland
R ussia
To tal E E G ro u p

$181
$29
$231
$26
$565
$279
$1,312

* Employees in companies that create, sell, distribute, or service hardware or software that runs on Microsoft operating systems and IT employees at user organization that develop
applications, service, or maintain such hardware or software
** Includes value-added or sales taxes, corporate income taxes, and personal income and social taxes

Source: IDC IT Economic Impact Study, 2004, 19 Countries

Economic Impact Study in Slovakia, 2003
Run by Institute of Slovak and World Economy – part
of Slovak Academy of Science
Impact of IT on economic growth
Position the Slovak IT sector in regional and global
perspectives
Compare impact of IT sector with other branches
Microsoft contribution to Slovak IT sector

Analyzes the impact made by the commercial software
model and Microsoft on the local economy
1 SK spent on purchasing of software from Microsoft would
generate a nearly 7 SK effect on the Slovak economy

Software Industry Trends in Latvia, 2004
Research conducted by Latvian Information Technology
and Telecommunication Association (LITTA)
Analyzes the business trends in software development,
service and distribution industry
Usage of commercial and open source platforms in business
and company resources invested in each of these platforms.
Assessment of economic impact of the software industry trends
on the national economy

Findings:
Commercial software model creates the highest value added
for their company - 100% of all respondents
Commercial platform is considered with lower total
development costs

IDC IT Economic Impact Study, 2005

Economic Impact of the IT Sector
in South East Europe
The research covers 6 countries:
Bulgaria
Croatia
Macedonia
Romania

Serbia and Montenegro
Slovenia

Microsoft Related Employment
Total IT
Employees
in 2004

MicrosoftRelated
Employees
in 2004*

% Total

MicrosoftRelated
Taxes
($M)**

Bulgaria

27.462

14.285

52%

$32,2

Croatia

20.044

9.365

47%

$73,0

2.894

1.613

56%

$6,6

Romania

29.251

18.995

65%

$63,7

Slovenia

18.222

8.483

47%

$109,2

Serbia & Montenegro

24.173

11.844

49%

$27

122.046

64.585

53%

$311

Macedonia

Total Group

Source: IDC IT Economic Impact Study, 2005, 6 South East European Countries

Revenues
In SEE the IT sector generates over $600 million in tax
receipts
Includes value-added or sales taxes, corporate income taxes,
and personal income and social taxes

Over $300 million of this is attributed to companies
and employees working with Microsoft products
1 : 8.5
For every dollar of Microsoft revenue in the region, another
eight and a half were generated by other companies selling
hardware or software that works on Microsoft operating
systems, or servicing that software

Source: IDC IT Economic Impact Study, 2005, 6 South East European Countries

Government
Policy
Industry
Interoperability

Security & Quality
Ongoing Relationship
Indemnification
Support

Productivity partner
Breakthroughs
Integration
Manageability

Applications
Compatibility
Hardware
Partners

© 2004 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.


Slide 4

Delivering Value to Our
Customers and Partners
Dan Bulucea
Platform Strategy Manager
Microsoft Eastern Europe

Agenda
Market Overview
Microsoft’s Commitment to Customers
Integrated Innovation Advantage
Economic Impact of IT
Why Microsoft

Market Overview
IT Industry Trends
Everyone agrees on one thing: the move
to x86
Price/performance and flexibility driving change

Focus on security
Increasing pressures to do more with less
Broad web services movement
24x7 availability essential in a global
economy

Market Overview
Market Trends
IBM want this to be all about their services
“Devalue” the platform and monopolize service
opportunities

Novell connecting the dots with strategic
acquisitions
Attempting an end-to-end platform play on Linux

Oracle supporting Linux adoption
Sun delivering strategy “du jour”
Customer demands, platform challenges, cost models

New companies developing roots in the market
(e.g., RedHat, MySQL, other Open Source
vendors)

Customers Told Us…
Customer Requirement

Microsoft Commitment

Increase economic value

Best Value

Protect my data

Stronger
Security

Reduce downtime

Reliability
and Availability

Leverage existing assets

Interoperability

Connect with customers (Revenue)
Integrate with partners (Profitability)
Empower employees (Productivity)

Integrated
Innovation

Proof Of Our Commitment To Customers
Microsoft Commitment

Best value
Stronger
Security
Reliability
and Availability
Interoperability

Integrated
Innovation
Go to www.getthefacts.com for complete reports

Third Party Validation

Best Value
Does Linux cost less to acquire?

Source: Bearing Point, Server Operating System Licensing and
Support Cost Comparison – May 2004
** Full Support indicates 24x7 support on all servers. Limited
Support indicates 24x7 support on only 10% of servers.

Best Value
Does Linux have lower TCO?

Noncommissioned Studies:

Security
OS Bulletins - 2003

An industry problem…
Companies Detecting
Security Breaches

92%
Source: 2003 Computer Security Institute survey
of 250 major US companies

…a Microsoft priority
SD3+C
Secure by:
Design
Default
Deployment
Communications

125
100
75
1
250
25
0

RedHat
Microsoft

120

87
43
2002

39
2003

Source: OS Bulletins from Vendor Web Sites

180 Days Later

57

60
45
30

32

34

14

15
0

RH8

RH9

WS00 WS03

Security
Is Linux more secure?

All Days of Risk
25

Microsoft
RedHat

57

Debian

57

128

82

Microsoft

74
0

20

40

Source: “Is Windows More Secure than Linux?”, Forrester, March 2004

60

120

86

MandrakeSoft
SUSE

162

80

100

Red Hat

Debian

Mandrake
Soft

Source: Forrester Research: http://www.forrester.com/Research/Document/
Excerpt/0,7211,33941,00.html

111

SUSE

Security
Is Linux more secure?
Common
Customer Questions

Forrester Response:
“What matters”

Forrester
Analysis

1.

“Linux distributions
say they can fix
things within just
hours, why can’t
Microsoft do that?”

“Microsoft’s average
of 25 days between disclosure & release of a
fix was the lowest of all the platform
maintainers we evaluated.”

2.

“Doesn’t Linux have
fewer bugs and
aren’t they less
severe than
Windows bugs?”

Forrester analysis shows Microsoft having
the fewest high-severity flaws of any vendor
– and 25 less than the next lowest

3.

“Isn’t open source
software better at
fixing vulnerabilities
than Microsoft?”

Forrester analysis shows Microsoft as the
only vendor to fix 100% of the flaws
discovered

Reliability
VeriTest Proof of our System Reliability

End User Pain
Average Service Loss Time
HH:MM:SS

More reliable

4:59:44
4.5

4:20:19

4

Hours

Windows prevented 4x more events
Windows detected over 2x as many issues
before the trouble ticket was received
Windows system issues (created by test
proctor) were resolved 20% faster and 8%
more successfully

5

3.5
3
2.5
2

Windows

Linux

Configuring the Environment
Total Time for Completed Tasks*

Easier to Maintain
25

20:55:13
20

Hours

Windows required approx. 50% less time to
complete directory-related tasks with Active
Directory vs. OpenLDAP
Windows tape drive and printer
configurations were completed over 2x faster
Improving system fault tolerance/redundancy
required >2x more time for Linux

HH:MM:SS

15

13:11:56

10
5
0

Windows

Linux

*21% more “proactive” tasks completed on Windows

Interoperability
Microsoft’s Approach
Enable Microsoft technology to work well with
Windows and non-Windows applications
Develop solutions based on industry standards

Provide rich services
that address key
business scenarios
Enable ISVs to
develop solutions and
solve niche needs

MS Interoperability Model

Interoperability
Developer Priorities

Interoperability is
very important

Interop

65%

48%
44%

Security
Support
0

20

40

60

80

Interoperability Prioritization

Windows
interoperability
is first priority

79%

Windows

43%

Unix
Linux

22%
0

20

40

60

80

Best Support of Interoperability

Microsoft is doing the
most to achieve
interoperability goals
Source: Jupiter research survey, 12/03

72%
63%
55%

MS
IBM

Linux
0

20

40

60

% of IT Decision Makers

80

File/Print Services
Network Access Services
Directory/Security Services
Kernel

Platform Features

MSMQ

Windows Media Services

Windows Server
Distributed File Service STS
VPN

RAS

PKI

Smart Card

Active Directory WMI Kerberos

Consistent
Interfaces

3rd Party Products

?

OpenOffice
?

?

Real or Darwin Media Server*
?

Apache
Samba
OpenLDAP
?

?

Linux Kernel

Windows Kernel
Common
Mgmt Infra

?

?

Sendmail

3rd Party Products

Mobile Info Svr

Transaction Service

JBOSS

Single
Sign-On

Customer Requirements Microsoft Platform

?

Linux Platform

**Some services not available in Linux distributions are available at additional cost from vendors such as IBM

?

Web Services

J2EE/PHP

.NET Framework IIS ASP.NET

?

Media Services

MySQL

Visual Studio.NET

Application Services

SMS 2003, MOM 2005

Programming Frameworks

SQL Server

Integrated Development Tools

Integrated Management Tools

Integrated Data Management

Office 2003

BizTalk, CS2002

MMS, ISA, AD

Exchange, SPS

Other

Mobility

Productivity

Commerce

Identity Mgmt

Collaboration

Integrated Innovation

Customer Value – Local Evidence
TZUM – Retail (Bulgaria)
TZUM switched from Linux to Windows Server 2003 for
better integration and easier management. Its new IT
infrastructure runs 30% more efficiently
Zotel – Telecommunications (Poland)
Switch from Linux to Microsoft reduces IT costs by 30%

Duna TV – Media Service Provider (Hungary)
Switch to Microsoft Exchange Server 2003 from Linux
cuts operating costs by half
Romgaz – Utility (Romania)
Evaluated Linux and OSS but chose Microsoft because of
ease-of-use, support and features
Ahold – Retail (Czech Republic)
Consolidation from Linux and Novell to Windows
infrastructure

IDC EMEA Economic Impact Study, 2004
• Update of preceding Economic Impact Model studies

• Analyzes the specific contributions of the software
sector
• This research covered 19 countries (~82% of IT
spending in EMEA):
Austria
Denmark
France
Germany
Ireland
Italy
Netherlands
Portugal
Spain
UK

Czech Republic
Estonia
Hungary
Lithuania
Russia
Poland
Israel
South Africa
Turkey

Microsoft-Related Economic Impact
Microsoft-Related Employees in 2004*

C ze c h R e p
E s to n ia
H u n g a ry
L ith u a n ia
P o la n d
R u s s ia
T o ta l E E G ro u p

S e rvic e s &

IT

H a rd w a re

S o ftw a re

C h a n n e ls

P ro fe s s io n a ls

T o ta l

% T o ta l

1 ,6 8 6
510
1 ,2 4 7
854
3 ,8 0 1
7 ,9 3 7

599
209
446
287
838
656

1 2 ,6 5 1
2 ,3 6 4
8 ,9 1 0
6 ,4 0 2
2 1 ,9 7 4
3 8 ,5 1 2

3 4 ,2 2 1
3 ,0 9 1
2 5 ,9 1 3
3 ,7 1 4
7 0 ,0 1 6
1 3 1 ,2 8 6

4 9 ,1 5 7
6 ,1 7 4
3 6 ,5 1 6
1 1 ,2 5 7
9 6 ,6 3 0
1 7 8 ,3 9 1

40%
54%
41%
54%
50%
55%

1 6 ,0 3 6

3 ,0 3 5

9 0 ,8 1 4

2 6 8 ,2 4 1

3 7 8 ,1 2 5

49%

Microsoft-Related Taxes ($M)**
C zech R ep
E stonia
H ungary
Lithuania
P oland
R ussia
To tal E E G ro u p

$181
$29
$231
$26
$565
$279
$1,312

* Employees in companies that create, sell, distribute, or service hardware or software that runs on Microsoft operating systems and IT employees at user organization that develop
applications, service, or maintain such hardware or software
** Includes value-added or sales taxes, corporate income taxes, and personal income and social taxes

Source: IDC IT Economic Impact Study, 2004, 19 Countries

Economic Impact Study in Slovakia, 2003
Run by Institute of Slovak and World Economy – part
of Slovak Academy of Science
Impact of IT on economic growth
Position the Slovak IT sector in regional and global
perspectives
Compare impact of IT sector with other branches
Microsoft contribution to Slovak IT sector

Analyzes the impact made by the commercial software
model and Microsoft on the local economy
1 SK spent on purchasing of software from Microsoft would
generate a nearly 7 SK effect on the Slovak economy

Software Industry Trends in Latvia, 2004
Research conducted by Latvian Information Technology
and Telecommunication Association (LITTA)
Analyzes the business trends in software development,
service and distribution industry
Usage of commercial and open source platforms in business
and company resources invested in each of these platforms.
Assessment of economic impact of the software industry trends
on the national economy

Findings:
Commercial software model creates the highest value added
for their company - 100% of all respondents
Commercial platform is considered with lower total
development costs

IDC IT Economic Impact Study, 2005

Economic Impact of the IT Sector
in South East Europe
The research covers 6 countries:
Bulgaria
Croatia
Macedonia
Romania

Serbia and Montenegro
Slovenia

Microsoft Related Employment
Total IT
Employees
in 2004

MicrosoftRelated
Employees
in 2004*

% Total

MicrosoftRelated
Taxes
($M)**

Bulgaria

27.462

14.285

52%

$32,2

Croatia

20.044

9.365

47%

$73,0

2.894

1.613

56%

$6,6

Romania

29.251

18.995

65%

$63,7

Slovenia

18.222

8.483

47%

$109,2

Serbia & Montenegro

24.173

11.844

49%

$27

122.046

64.585

53%

$311

Macedonia

Total Group

Source: IDC IT Economic Impact Study, 2005, 6 South East European Countries

Revenues
In SEE the IT sector generates over $600 million in tax
receipts
Includes value-added or sales taxes, corporate income taxes,
and personal income and social taxes

Over $300 million of this is attributed to companies
and employees working with Microsoft products
1 : 8.5
For every dollar of Microsoft revenue in the region, another
eight and a half were generated by other companies selling
hardware or software that works on Microsoft operating
systems, or servicing that software

Source: IDC IT Economic Impact Study, 2005, 6 South East European Countries

Government
Policy
Industry
Interoperability

Security & Quality
Ongoing Relationship
Indemnification
Support

Productivity partner
Breakthroughs
Integration
Manageability

Applications
Compatibility
Hardware
Partners

© 2004 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.


Slide 5

Delivering Value to Our
Customers and Partners
Dan Bulucea
Platform Strategy Manager
Microsoft Eastern Europe

Agenda
Market Overview
Microsoft’s Commitment to Customers
Integrated Innovation Advantage
Economic Impact of IT
Why Microsoft

Market Overview
IT Industry Trends
Everyone agrees on one thing: the move
to x86
Price/performance and flexibility driving change

Focus on security
Increasing pressures to do more with less
Broad web services movement
24x7 availability essential in a global
economy

Market Overview
Market Trends
IBM want this to be all about their services
“Devalue” the platform and monopolize service
opportunities

Novell connecting the dots with strategic
acquisitions
Attempting an end-to-end platform play on Linux

Oracle supporting Linux adoption
Sun delivering strategy “du jour”
Customer demands, platform challenges, cost models

New companies developing roots in the market
(e.g., RedHat, MySQL, other Open Source
vendors)

Customers Told Us…
Customer Requirement

Microsoft Commitment

Increase economic value

Best Value

Protect my data

Stronger
Security

Reduce downtime

Reliability
and Availability

Leverage existing assets

Interoperability

Connect with customers (Revenue)
Integrate with partners (Profitability)
Empower employees (Productivity)

Integrated
Innovation

Proof Of Our Commitment To Customers
Microsoft Commitment

Best value
Stronger
Security
Reliability
and Availability
Interoperability

Integrated
Innovation
Go to www.getthefacts.com for complete reports

Third Party Validation

Best Value
Does Linux cost less to acquire?

Source: Bearing Point, Server Operating System Licensing and
Support Cost Comparison – May 2004
** Full Support indicates 24x7 support on all servers. Limited
Support indicates 24x7 support on only 10% of servers.

Best Value
Does Linux have lower TCO?

Noncommissioned Studies:

Security
OS Bulletins - 2003

An industry problem…
Companies Detecting
Security Breaches

92%
Source: 2003 Computer Security Institute survey
of 250 major US companies

…a Microsoft priority
SD3+C
Secure by:
Design
Default
Deployment
Communications

125
100
75
1
250
25
0

RedHat
Microsoft

120

87
43
2002

39
2003

Source: OS Bulletins from Vendor Web Sites

180 Days Later

57

60
45
30

32

34

14

15
0

RH8

RH9

WS00 WS03

Security
Is Linux more secure?

All Days of Risk
25

Microsoft
RedHat

57

Debian

57

128

82

Microsoft

74
0

20

40

Source: “Is Windows More Secure than Linux?”, Forrester, March 2004

60

120

86

MandrakeSoft
SUSE

162

80

100

Red Hat

Debian

Mandrake
Soft

Source: Forrester Research: http://www.forrester.com/Research/Document/
Excerpt/0,7211,33941,00.html

111

SUSE

Security
Is Linux more secure?
Common
Customer Questions

Forrester Response:
“What matters”

Forrester
Analysis

1.

“Linux distributions
say they can fix
things within just
hours, why can’t
Microsoft do that?”

“Microsoft’s average
of 25 days between disclosure & release of a
fix was the lowest of all the platform
maintainers we evaluated.”

2.

“Doesn’t Linux have
fewer bugs and
aren’t they less
severe than
Windows bugs?”

Forrester analysis shows Microsoft having
the fewest high-severity flaws of any vendor
– and 25 less than the next lowest

3.

“Isn’t open source
software better at
fixing vulnerabilities
than Microsoft?”

Forrester analysis shows Microsoft as the
only vendor to fix 100% of the flaws
discovered

Reliability
VeriTest Proof of our System Reliability

End User Pain
Average Service Loss Time
HH:MM:SS

More reliable

4:59:44
4.5

4:20:19

4

Hours

Windows prevented 4x more events
Windows detected over 2x as many issues
before the trouble ticket was received
Windows system issues (created by test
proctor) were resolved 20% faster and 8%
more successfully

5

3.5
3
2.5
2

Windows

Linux

Configuring the Environment
Total Time for Completed Tasks*

Easier to Maintain
25

20:55:13
20

Hours

Windows required approx. 50% less time to
complete directory-related tasks with Active
Directory vs. OpenLDAP
Windows tape drive and printer
configurations were completed over 2x faster
Improving system fault tolerance/redundancy
required >2x more time for Linux

HH:MM:SS

15

13:11:56

10
5
0

Windows

Linux

*21% more “proactive” tasks completed on Windows

Interoperability
Microsoft’s Approach
Enable Microsoft technology to work well with
Windows and non-Windows applications
Develop solutions based on industry standards

Provide rich services
that address key
business scenarios
Enable ISVs to
develop solutions and
solve niche needs

MS Interoperability Model

Interoperability
Developer Priorities

Interoperability is
very important

Interop

65%

48%
44%

Security
Support
0

20

40

60

80

Interoperability Prioritization

Windows
interoperability
is first priority

79%

Windows

43%

Unix
Linux

22%
0

20

40

60

80

Best Support of Interoperability

Microsoft is doing the
most to achieve
interoperability goals
Source: Jupiter research survey, 12/03

72%
63%
55%

MS
IBM

Linux
0

20

40

60

% of IT Decision Makers

80

File/Print Services
Network Access Services
Directory/Security Services
Kernel

Platform Features

MSMQ

Windows Media Services

Windows Server
Distributed File Service STS
VPN

RAS

PKI

Smart Card

Active Directory WMI Kerberos

Consistent
Interfaces

3rd Party Products

?

OpenOffice
?

?

Real or Darwin Media Server*
?

Apache
Samba
OpenLDAP
?

?

Linux Kernel

Windows Kernel
Common
Mgmt Infra

?

?

Sendmail

3rd Party Products

Mobile Info Svr

Transaction Service

JBOSS

Single
Sign-On

Customer Requirements Microsoft Platform

?

Linux Platform

**Some services not available in Linux distributions are available at additional cost from vendors such as IBM

?

Web Services

J2EE/PHP

.NET Framework IIS ASP.NET

?

Media Services

MySQL

Visual Studio.NET

Application Services

SMS 2003, MOM 2005

Programming Frameworks

SQL Server

Integrated Development Tools

Integrated Management Tools

Integrated Data Management

Office 2003

BizTalk, CS2002

MMS, ISA, AD

Exchange, SPS

Other

Mobility

Productivity

Commerce

Identity Mgmt

Collaboration

Integrated Innovation

Customer Value – Local Evidence
TZUM – Retail (Bulgaria)
TZUM switched from Linux to Windows Server 2003 for
better integration and easier management. Its new IT
infrastructure runs 30% more efficiently
Zotel – Telecommunications (Poland)
Switch from Linux to Microsoft reduces IT costs by 30%

Duna TV – Media Service Provider (Hungary)
Switch to Microsoft Exchange Server 2003 from Linux
cuts operating costs by half
Romgaz – Utility (Romania)
Evaluated Linux and OSS but chose Microsoft because of
ease-of-use, support and features
Ahold – Retail (Czech Republic)
Consolidation from Linux and Novell to Windows
infrastructure

IDC EMEA Economic Impact Study, 2004
• Update of preceding Economic Impact Model studies

• Analyzes the specific contributions of the software
sector
• This research covered 19 countries (~82% of IT
spending in EMEA):
Austria
Denmark
France
Germany
Ireland
Italy
Netherlands
Portugal
Spain
UK

Czech Republic
Estonia
Hungary
Lithuania
Russia
Poland
Israel
South Africa
Turkey

Microsoft-Related Economic Impact
Microsoft-Related Employees in 2004*

C ze c h R e p
E s to n ia
H u n g a ry
L ith u a n ia
P o la n d
R u s s ia
T o ta l E E G ro u p

S e rvic e s &

IT

H a rd w a re

S o ftw a re

C h a n n e ls

P ro fe s s io n a ls

T o ta l

% T o ta l

1 ,6 8 6
510
1 ,2 4 7
854
3 ,8 0 1
7 ,9 3 7

599
209
446
287
838
656

1 2 ,6 5 1
2 ,3 6 4
8 ,9 1 0
6 ,4 0 2
2 1 ,9 7 4
3 8 ,5 1 2

3 4 ,2 2 1
3 ,0 9 1
2 5 ,9 1 3
3 ,7 1 4
7 0 ,0 1 6
1 3 1 ,2 8 6

4 9 ,1 5 7
6 ,1 7 4
3 6 ,5 1 6
1 1 ,2 5 7
9 6 ,6 3 0
1 7 8 ,3 9 1

40%
54%
41%
54%
50%
55%

1 6 ,0 3 6

3 ,0 3 5

9 0 ,8 1 4

2 6 8 ,2 4 1

3 7 8 ,1 2 5

49%

Microsoft-Related Taxes ($M)**
C zech R ep
E stonia
H ungary
Lithuania
P oland
R ussia
To tal E E G ro u p

$181
$29
$231
$26
$565
$279
$1,312

* Employees in companies that create, sell, distribute, or service hardware or software that runs on Microsoft operating systems and IT employees at user organization that develop
applications, service, or maintain such hardware or software
** Includes value-added or sales taxes, corporate income taxes, and personal income and social taxes

Source: IDC IT Economic Impact Study, 2004, 19 Countries

Economic Impact Study in Slovakia, 2003
Run by Institute of Slovak and World Economy – part
of Slovak Academy of Science
Impact of IT on economic growth
Position the Slovak IT sector in regional and global
perspectives
Compare impact of IT sector with other branches
Microsoft contribution to Slovak IT sector

Analyzes the impact made by the commercial software
model and Microsoft on the local economy
1 SK spent on purchasing of software from Microsoft would
generate a nearly 7 SK effect on the Slovak economy

Software Industry Trends in Latvia, 2004
Research conducted by Latvian Information Technology
and Telecommunication Association (LITTA)
Analyzes the business trends in software development,
service and distribution industry
Usage of commercial and open source platforms in business
and company resources invested in each of these platforms.
Assessment of economic impact of the software industry trends
on the national economy

Findings:
Commercial software model creates the highest value added
for their company - 100% of all respondents
Commercial platform is considered with lower total
development costs

IDC IT Economic Impact Study, 2005

Economic Impact of the IT Sector
in South East Europe
The research covers 6 countries:
Bulgaria
Croatia
Macedonia
Romania

Serbia and Montenegro
Slovenia

Microsoft Related Employment
Total IT
Employees
in 2004

MicrosoftRelated
Employees
in 2004*

% Total

MicrosoftRelated
Taxes
($M)**

Bulgaria

27.462

14.285

52%

$32,2

Croatia

20.044

9.365

47%

$73,0

2.894

1.613

56%

$6,6

Romania

29.251

18.995

65%

$63,7

Slovenia

18.222

8.483

47%

$109,2

Serbia & Montenegro

24.173

11.844

49%

$27

122.046

64.585

53%

$311

Macedonia

Total Group

Source: IDC IT Economic Impact Study, 2005, 6 South East European Countries

Revenues
In SEE the IT sector generates over $600 million in tax
receipts
Includes value-added or sales taxes, corporate income taxes,
and personal income and social taxes

Over $300 million of this is attributed to companies
and employees working with Microsoft products
1 : 8.5
For every dollar of Microsoft revenue in the region, another
eight and a half were generated by other companies selling
hardware or software that works on Microsoft operating
systems, or servicing that software

Source: IDC IT Economic Impact Study, 2005, 6 South East European Countries

Government
Policy
Industry
Interoperability

Security & Quality
Ongoing Relationship
Indemnification
Support

Productivity partner
Breakthroughs
Integration
Manageability

Applications
Compatibility
Hardware
Partners

© 2004 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.


Slide 6

Delivering Value to Our
Customers and Partners
Dan Bulucea
Platform Strategy Manager
Microsoft Eastern Europe

Agenda
Market Overview
Microsoft’s Commitment to Customers
Integrated Innovation Advantage
Economic Impact of IT
Why Microsoft

Market Overview
IT Industry Trends
Everyone agrees on one thing: the move
to x86
Price/performance and flexibility driving change

Focus on security
Increasing pressures to do more with less
Broad web services movement
24x7 availability essential in a global
economy

Market Overview
Market Trends
IBM want this to be all about their services
“Devalue” the platform and monopolize service
opportunities

Novell connecting the dots with strategic
acquisitions
Attempting an end-to-end platform play on Linux

Oracle supporting Linux adoption
Sun delivering strategy “du jour”
Customer demands, platform challenges, cost models

New companies developing roots in the market
(e.g., RedHat, MySQL, other Open Source
vendors)

Customers Told Us…
Customer Requirement

Microsoft Commitment

Increase economic value

Best Value

Protect my data

Stronger
Security

Reduce downtime

Reliability
and Availability

Leverage existing assets

Interoperability

Connect with customers (Revenue)
Integrate with partners (Profitability)
Empower employees (Productivity)

Integrated
Innovation

Proof Of Our Commitment To Customers
Microsoft Commitment

Best value
Stronger
Security
Reliability
and Availability
Interoperability

Integrated
Innovation
Go to www.getthefacts.com for complete reports

Third Party Validation

Best Value
Does Linux cost less to acquire?

Source: Bearing Point, Server Operating System Licensing and
Support Cost Comparison – May 2004
** Full Support indicates 24x7 support on all servers. Limited
Support indicates 24x7 support on only 10% of servers.

Best Value
Does Linux have lower TCO?

Noncommissioned Studies:

Security
OS Bulletins - 2003

An industry problem…
Companies Detecting
Security Breaches

92%
Source: 2003 Computer Security Institute survey
of 250 major US companies

…a Microsoft priority
SD3+C
Secure by:
Design
Default
Deployment
Communications

125
100
75
1
250
25
0

RedHat
Microsoft

120

87
43
2002

39
2003

Source: OS Bulletins from Vendor Web Sites

180 Days Later

57

60
45
30

32

34

14

15
0

RH8

RH9

WS00 WS03

Security
Is Linux more secure?

All Days of Risk
25

Microsoft
RedHat

57

Debian

57

128

82

Microsoft

74
0

20

40

Source: “Is Windows More Secure than Linux?”, Forrester, March 2004

60

120

86

MandrakeSoft
SUSE

162

80

100

Red Hat

Debian

Mandrake
Soft

Source: Forrester Research: http://www.forrester.com/Research/Document/
Excerpt/0,7211,33941,00.html

111

SUSE

Security
Is Linux more secure?
Common
Customer Questions

Forrester Response:
“What matters”

Forrester
Analysis

1.

“Linux distributions
say they can fix
things within just
hours, why can’t
Microsoft do that?”

“Microsoft’s average
of 25 days between disclosure & release of a
fix was the lowest of all the platform
maintainers we evaluated.”

2.

“Doesn’t Linux have
fewer bugs and
aren’t they less
severe than
Windows bugs?”

Forrester analysis shows Microsoft having
the fewest high-severity flaws of any vendor
– and 25 less than the next lowest

3.

“Isn’t open source
software better at
fixing vulnerabilities
than Microsoft?”

Forrester analysis shows Microsoft as the
only vendor to fix 100% of the flaws
discovered

Reliability
VeriTest Proof of our System Reliability

End User Pain
Average Service Loss Time
HH:MM:SS

More reliable

4:59:44
4.5

4:20:19

4

Hours

Windows prevented 4x more events
Windows detected over 2x as many issues
before the trouble ticket was received
Windows system issues (created by test
proctor) were resolved 20% faster and 8%
more successfully

5

3.5
3
2.5
2

Windows

Linux

Configuring the Environment
Total Time for Completed Tasks*

Easier to Maintain
25

20:55:13
20

Hours

Windows required approx. 50% less time to
complete directory-related tasks with Active
Directory vs. OpenLDAP
Windows tape drive and printer
configurations were completed over 2x faster
Improving system fault tolerance/redundancy
required >2x more time for Linux

HH:MM:SS

15

13:11:56

10
5
0

Windows

Linux

*21% more “proactive” tasks completed on Windows

Interoperability
Microsoft’s Approach
Enable Microsoft technology to work well with
Windows and non-Windows applications
Develop solutions based on industry standards

Provide rich services
that address key
business scenarios
Enable ISVs to
develop solutions and
solve niche needs

MS Interoperability Model

Interoperability
Developer Priorities

Interoperability is
very important

Interop

65%

48%
44%

Security
Support
0

20

40

60

80

Interoperability Prioritization

Windows
interoperability
is first priority

79%

Windows

43%

Unix
Linux

22%
0

20

40

60

80

Best Support of Interoperability

Microsoft is doing the
most to achieve
interoperability goals
Source: Jupiter research survey, 12/03

72%
63%
55%

MS
IBM

Linux
0

20

40

60

% of IT Decision Makers

80

File/Print Services
Network Access Services
Directory/Security Services
Kernel

Platform Features

MSMQ

Windows Media Services

Windows Server
Distributed File Service STS
VPN

RAS

PKI

Smart Card

Active Directory WMI Kerberos

Consistent
Interfaces

3rd Party Products

?

OpenOffice
?

?

Real or Darwin Media Server*
?

Apache
Samba
OpenLDAP
?

?

Linux Kernel

Windows Kernel
Common
Mgmt Infra

?

?

Sendmail

3rd Party Products

Mobile Info Svr

Transaction Service

JBOSS

Single
Sign-On

Customer Requirements Microsoft Platform

?

Linux Platform

**Some services not available in Linux distributions are available at additional cost from vendors such as IBM

?

Web Services

J2EE/PHP

.NET Framework IIS ASP.NET

?

Media Services

MySQL

Visual Studio.NET

Application Services

SMS 2003, MOM 2005

Programming Frameworks

SQL Server

Integrated Development Tools

Integrated Management Tools

Integrated Data Management

Office 2003

BizTalk, CS2002

MMS, ISA, AD

Exchange, SPS

Other

Mobility

Productivity

Commerce

Identity Mgmt

Collaboration

Integrated Innovation

Customer Value – Local Evidence
TZUM – Retail (Bulgaria)
TZUM switched from Linux to Windows Server 2003 for
better integration and easier management. Its new IT
infrastructure runs 30% more efficiently
Zotel – Telecommunications (Poland)
Switch from Linux to Microsoft reduces IT costs by 30%

Duna TV – Media Service Provider (Hungary)
Switch to Microsoft Exchange Server 2003 from Linux
cuts operating costs by half
Romgaz – Utility (Romania)
Evaluated Linux and OSS but chose Microsoft because of
ease-of-use, support and features
Ahold – Retail (Czech Republic)
Consolidation from Linux and Novell to Windows
infrastructure

IDC EMEA Economic Impact Study, 2004
• Update of preceding Economic Impact Model studies

• Analyzes the specific contributions of the software
sector
• This research covered 19 countries (~82% of IT
spending in EMEA):
Austria
Denmark
France
Germany
Ireland
Italy
Netherlands
Portugal
Spain
UK

Czech Republic
Estonia
Hungary
Lithuania
Russia
Poland
Israel
South Africa
Turkey

Microsoft-Related Economic Impact
Microsoft-Related Employees in 2004*

C ze c h R e p
E s to n ia
H u n g a ry
L ith u a n ia
P o la n d
R u s s ia
T o ta l E E G ro u p

S e rvic e s &

IT

H a rd w a re

S o ftw a re

C h a n n e ls

P ro fe s s io n a ls

T o ta l

% T o ta l

1 ,6 8 6
510
1 ,2 4 7
854
3 ,8 0 1
7 ,9 3 7

599
209
446
287
838
656

1 2 ,6 5 1
2 ,3 6 4
8 ,9 1 0
6 ,4 0 2
2 1 ,9 7 4
3 8 ,5 1 2

3 4 ,2 2 1
3 ,0 9 1
2 5 ,9 1 3
3 ,7 1 4
7 0 ,0 1 6
1 3 1 ,2 8 6

4 9 ,1 5 7
6 ,1 7 4
3 6 ,5 1 6
1 1 ,2 5 7
9 6 ,6 3 0
1 7 8 ,3 9 1

40%
54%
41%
54%
50%
55%

1 6 ,0 3 6

3 ,0 3 5

9 0 ,8 1 4

2 6 8 ,2 4 1

3 7 8 ,1 2 5

49%

Microsoft-Related Taxes ($M)**
C zech R ep
E stonia
H ungary
Lithuania
P oland
R ussia
To tal E E G ro u p

$181
$29
$231
$26
$565
$279
$1,312

* Employees in companies that create, sell, distribute, or service hardware or software that runs on Microsoft operating systems and IT employees at user organization that develop
applications, service, or maintain such hardware or software
** Includes value-added or sales taxes, corporate income taxes, and personal income and social taxes

Source: IDC IT Economic Impact Study, 2004, 19 Countries

Economic Impact Study in Slovakia, 2003
Run by Institute of Slovak and World Economy – part
of Slovak Academy of Science
Impact of IT on economic growth
Position the Slovak IT sector in regional and global
perspectives
Compare impact of IT sector with other branches
Microsoft contribution to Slovak IT sector

Analyzes the impact made by the commercial software
model and Microsoft on the local economy
1 SK spent on purchasing of software from Microsoft would
generate a nearly 7 SK effect on the Slovak economy

Software Industry Trends in Latvia, 2004
Research conducted by Latvian Information Technology
and Telecommunication Association (LITTA)
Analyzes the business trends in software development,
service and distribution industry
Usage of commercial and open source platforms in business
and company resources invested in each of these platforms.
Assessment of economic impact of the software industry trends
on the national economy

Findings:
Commercial software model creates the highest value added
for their company - 100% of all respondents
Commercial platform is considered with lower total
development costs

IDC IT Economic Impact Study, 2005

Economic Impact of the IT Sector
in South East Europe
The research covers 6 countries:
Bulgaria
Croatia
Macedonia
Romania

Serbia and Montenegro
Slovenia

Microsoft Related Employment
Total IT
Employees
in 2004

MicrosoftRelated
Employees
in 2004*

% Total

MicrosoftRelated
Taxes
($M)**

Bulgaria

27.462

14.285

52%

$32,2

Croatia

20.044

9.365

47%

$73,0

2.894

1.613

56%

$6,6

Romania

29.251

18.995

65%

$63,7

Slovenia

18.222

8.483

47%

$109,2

Serbia & Montenegro

24.173

11.844

49%

$27

122.046

64.585

53%

$311

Macedonia

Total Group

Source: IDC IT Economic Impact Study, 2005, 6 South East European Countries

Revenues
In SEE the IT sector generates over $600 million in tax
receipts
Includes value-added or sales taxes, corporate income taxes,
and personal income and social taxes

Over $300 million of this is attributed to companies
and employees working with Microsoft products
1 : 8.5
For every dollar of Microsoft revenue in the region, another
eight and a half were generated by other companies selling
hardware or software that works on Microsoft operating
systems, or servicing that software

Source: IDC IT Economic Impact Study, 2005, 6 South East European Countries

Government
Policy
Industry
Interoperability

Security & Quality
Ongoing Relationship
Indemnification
Support

Productivity partner
Breakthroughs
Integration
Manageability

Applications
Compatibility
Hardware
Partners

© 2004 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.


Slide 7

Delivering Value to Our
Customers and Partners
Dan Bulucea
Platform Strategy Manager
Microsoft Eastern Europe

Agenda
Market Overview
Microsoft’s Commitment to Customers
Integrated Innovation Advantage
Economic Impact of IT
Why Microsoft

Market Overview
IT Industry Trends
Everyone agrees on one thing: the move
to x86
Price/performance and flexibility driving change

Focus on security
Increasing pressures to do more with less
Broad web services movement
24x7 availability essential in a global
economy

Market Overview
Market Trends
IBM want this to be all about their services
“Devalue” the platform and monopolize service
opportunities

Novell connecting the dots with strategic
acquisitions
Attempting an end-to-end platform play on Linux

Oracle supporting Linux adoption
Sun delivering strategy “du jour”
Customer demands, platform challenges, cost models

New companies developing roots in the market
(e.g., RedHat, MySQL, other Open Source
vendors)

Customers Told Us…
Customer Requirement

Microsoft Commitment

Increase economic value

Best Value

Protect my data

Stronger
Security

Reduce downtime

Reliability
and Availability

Leverage existing assets

Interoperability

Connect with customers (Revenue)
Integrate with partners (Profitability)
Empower employees (Productivity)

Integrated
Innovation

Proof Of Our Commitment To Customers
Microsoft Commitment

Best value
Stronger
Security
Reliability
and Availability
Interoperability

Integrated
Innovation
Go to www.getthefacts.com for complete reports

Third Party Validation

Best Value
Does Linux cost less to acquire?

Source: Bearing Point, Server Operating System Licensing and
Support Cost Comparison – May 2004
** Full Support indicates 24x7 support on all servers. Limited
Support indicates 24x7 support on only 10% of servers.

Best Value
Does Linux have lower TCO?

Noncommissioned Studies:

Security
OS Bulletins - 2003

An industry problem…
Companies Detecting
Security Breaches

92%
Source: 2003 Computer Security Institute survey
of 250 major US companies

…a Microsoft priority
SD3+C
Secure by:
Design
Default
Deployment
Communications

125
100
75
1
250
25
0

RedHat
Microsoft

120

87
43
2002

39
2003

Source: OS Bulletins from Vendor Web Sites

180 Days Later

57

60
45
30

32

34

14

15
0

RH8

RH9

WS00 WS03

Security
Is Linux more secure?

All Days of Risk
25

Microsoft
RedHat

57

Debian

57

128

82

Microsoft

74
0

20

40

Source: “Is Windows More Secure than Linux?”, Forrester, March 2004

60

120

86

MandrakeSoft
SUSE

162

80

100

Red Hat

Debian

Mandrake
Soft

Source: Forrester Research: http://www.forrester.com/Research/Document/
Excerpt/0,7211,33941,00.html

111

SUSE

Security
Is Linux more secure?
Common
Customer Questions

Forrester Response:
“What matters”

Forrester
Analysis

1.

“Linux distributions
say they can fix
things within just
hours, why can’t
Microsoft do that?”

“Microsoft’s average
of 25 days between disclosure & release of a
fix was the lowest of all the platform
maintainers we evaluated.”

2.

“Doesn’t Linux have
fewer bugs and
aren’t they less
severe than
Windows bugs?”

Forrester analysis shows Microsoft having
the fewest high-severity flaws of any vendor
– and 25 less than the next lowest

3.

“Isn’t open source
software better at
fixing vulnerabilities
than Microsoft?”

Forrester analysis shows Microsoft as the
only vendor to fix 100% of the flaws
discovered

Reliability
VeriTest Proof of our System Reliability

End User Pain
Average Service Loss Time
HH:MM:SS

More reliable

4:59:44
4.5

4:20:19

4

Hours

Windows prevented 4x more events
Windows detected over 2x as many issues
before the trouble ticket was received
Windows system issues (created by test
proctor) were resolved 20% faster and 8%
more successfully

5

3.5
3
2.5
2

Windows

Linux

Configuring the Environment
Total Time for Completed Tasks*

Easier to Maintain
25

20:55:13
20

Hours

Windows required approx. 50% less time to
complete directory-related tasks with Active
Directory vs. OpenLDAP
Windows tape drive and printer
configurations were completed over 2x faster
Improving system fault tolerance/redundancy
required >2x more time for Linux

HH:MM:SS

15

13:11:56

10
5
0

Windows

Linux

*21% more “proactive” tasks completed on Windows

Interoperability
Microsoft’s Approach
Enable Microsoft technology to work well with
Windows and non-Windows applications
Develop solutions based on industry standards

Provide rich services
that address key
business scenarios
Enable ISVs to
develop solutions and
solve niche needs

MS Interoperability Model

Interoperability
Developer Priorities

Interoperability is
very important

Interop

65%

48%
44%

Security
Support
0

20

40

60

80

Interoperability Prioritization

Windows
interoperability
is first priority

79%

Windows

43%

Unix
Linux

22%
0

20

40

60

80

Best Support of Interoperability

Microsoft is doing the
most to achieve
interoperability goals
Source: Jupiter research survey, 12/03

72%
63%
55%

MS
IBM

Linux
0

20

40

60

% of IT Decision Makers

80

File/Print Services
Network Access Services
Directory/Security Services
Kernel

Platform Features

MSMQ

Windows Media Services

Windows Server
Distributed File Service STS
VPN

RAS

PKI

Smart Card

Active Directory WMI Kerberos

Consistent
Interfaces

3rd Party Products

?

OpenOffice
?

?

Real or Darwin Media Server*
?

Apache
Samba
OpenLDAP
?

?

Linux Kernel

Windows Kernel
Common
Mgmt Infra

?

?

Sendmail

3rd Party Products

Mobile Info Svr

Transaction Service

JBOSS

Single
Sign-On

Customer Requirements Microsoft Platform

?

Linux Platform

**Some services not available in Linux distributions are available at additional cost from vendors such as IBM

?

Web Services

J2EE/PHP

.NET Framework IIS ASP.NET

?

Media Services

MySQL

Visual Studio.NET

Application Services

SMS 2003, MOM 2005

Programming Frameworks

SQL Server

Integrated Development Tools

Integrated Management Tools

Integrated Data Management

Office 2003

BizTalk, CS2002

MMS, ISA, AD

Exchange, SPS

Other

Mobility

Productivity

Commerce

Identity Mgmt

Collaboration

Integrated Innovation

Customer Value – Local Evidence
TZUM – Retail (Bulgaria)
TZUM switched from Linux to Windows Server 2003 for
better integration and easier management. Its new IT
infrastructure runs 30% more efficiently
Zotel – Telecommunications (Poland)
Switch from Linux to Microsoft reduces IT costs by 30%

Duna TV – Media Service Provider (Hungary)
Switch to Microsoft Exchange Server 2003 from Linux
cuts operating costs by half
Romgaz – Utility (Romania)
Evaluated Linux and OSS but chose Microsoft because of
ease-of-use, support and features
Ahold – Retail (Czech Republic)
Consolidation from Linux and Novell to Windows
infrastructure

IDC EMEA Economic Impact Study, 2004
• Update of preceding Economic Impact Model studies

• Analyzes the specific contributions of the software
sector
• This research covered 19 countries (~82% of IT
spending in EMEA):
Austria
Denmark
France
Germany
Ireland
Italy
Netherlands
Portugal
Spain
UK

Czech Republic
Estonia
Hungary
Lithuania
Russia
Poland
Israel
South Africa
Turkey

Microsoft-Related Economic Impact
Microsoft-Related Employees in 2004*

C ze c h R e p
E s to n ia
H u n g a ry
L ith u a n ia
P o la n d
R u s s ia
T o ta l E E G ro u p

S e rvic e s &

IT

H a rd w a re

S o ftw a re

C h a n n e ls

P ro fe s s io n a ls

T o ta l

% T o ta l

1 ,6 8 6
510
1 ,2 4 7
854
3 ,8 0 1
7 ,9 3 7

599
209
446
287
838
656

1 2 ,6 5 1
2 ,3 6 4
8 ,9 1 0
6 ,4 0 2
2 1 ,9 7 4
3 8 ,5 1 2

3 4 ,2 2 1
3 ,0 9 1
2 5 ,9 1 3
3 ,7 1 4
7 0 ,0 1 6
1 3 1 ,2 8 6

4 9 ,1 5 7
6 ,1 7 4
3 6 ,5 1 6
1 1 ,2 5 7
9 6 ,6 3 0
1 7 8 ,3 9 1

40%
54%
41%
54%
50%
55%

1 6 ,0 3 6

3 ,0 3 5

9 0 ,8 1 4

2 6 8 ,2 4 1

3 7 8 ,1 2 5

49%

Microsoft-Related Taxes ($M)**
C zech R ep
E stonia
H ungary
Lithuania
P oland
R ussia
To tal E E G ro u p

$181
$29
$231
$26
$565
$279
$1,312

* Employees in companies that create, sell, distribute, or service hardware or software that runs on Microsoft operating systems and IT employees at user organization that develop
applications, service, or maintain such hardware or software
** Includes value-added or sales taxes, corporate income taxes, and personal income and social taxes

Source: IDC IT Economic Impact Study, 2004, 19 Countries

Economic Impact Study in Slovakia, 2003
Run by Institute of Slovak and World Economy – part
of Slovak Academy of Science
Impact of IT on economic growth
Position the Slovak IT sector in regional and global
perspectives
Compare impact of IT sector with other branches
Microsoft contribution to Slovak IT sector

Analyzes the impact made by the commercial software
model and Microsoft on the local economy
1 SK spent on purchasing of software from Microsoft would
generate a nearly 7 SK effect on the Slovak economy

Software Industry Trends in Latvia, 2004
Research conducted by Latvian Information Technology
and Telecommunication Association (LITTA)
Analyzes the business trends in software development,
service and distribution industry
Usage of commercial and open source platforms in business
and company resources invested in each of these platforms.
Assessment of economic impact of the software industry trends
on the national economy

Findings:
Commercial software model creates the highest value added
for their company - 100% of all respondents
Commercial platform is considered with lower total
development costs

IDC IT Economic Impact Study, 2005

Economic Impact of the IT Sector
in South East Europe
The research covers 6 countries:
Bulgaria
Croatia
Macedonia
Romania

Serbia and Montenegro
Slovenia

Microsoft Related Employment
Total IT
Employees
in 2004

MicrosoftRelated
Employees
in 2004*

% Total

MicrosoftRelated
Taxes
($M)**

Bulgaria

27.462

14.285

52%

$32,2

Croatia

20.044

9.365

47%

$73,0

2.894

1.613

56%

$6,6

Romania

29.251

18.995

65%

$63,7

Slovenia

18.222

8.483

47%

$109,2

Serbia & Montenegro

24.173

11.844

49%

$27

122.046

64.585

53%

$311

Macedonia

Total Group

Source: IDC IT Economic Impact Study, 2005, 6 South East European Countries

Revenues
In SEE the IT sector generates over $600 million in tax
receipts
Includes value-added or sales taxes, corporate income taxes,
and personal income and social taxes

Over $300 million of this is attributed to companies
and employees working with Microsoft products
1 : 8.5
For every dollar of Microsoft revenue in the region, another
eight and a half were generated by other companies selling
hardware or software that works on Microsoft operating
systems, or servicing that software

Source: IDC IT Economic Impact Study, 2005, 6 South East European Countries

Government
Policy
Industry
Interoperability

Security & Quality
Ongoing Relationship
Indemnification
Support

Productivity partner
Breakthroughs
Integration
Manageability

Applications
Compatibility
Hardware
Partners

© 2004 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.


Slide 8

Delivering Value to Our
Customers and Partners
Dan Bulucea
Platform Strategy Manager
Microsoft Eastern Europe

Agenda
Market Overview
Microsoft’s Commitment to Customers
Integrated Innovation Advantage
Economic Impact of IT
Why Microsoft

Market Overview
IT Industry Trends
Everyone agrees on one thing: the move
to x86
Price/performance and flexibility driving change

Focus on security
Increasing pressures to do more with less
Broad web services movement
24x7 availability essential in a global
economy

Market Overview
Market Trends
IBM want this to be all about their services
“Devalue” the platform and monopolize service
opportunities

Novell connecting the dots with strategic
acquisitions
Attempting an end-to-end platform play on Linux

Oracle supporting Linux adoption
Sun delivering strategy “du jour”
Customer demands, platform challenges, cost models

New companies developing roots in the market
(e.g., RedHat, MySQL, other Open Source
vendors)

Customers Told Us…
Customer Requirement

Microsoft Commitment

Increase economic value

Best Value

Protect my data

Stronger
Security

Reduce downtime

Reliability
and Availability

Leverage existing assets

Interoperability

Connect with customers (Revenue)
Integrate with partners (Profitability)
Empower employees (Productivity)

Integrated
Innovation

Proof Of Our Commitment To Customers
Microsoft Commitment

Best value
Stronger
Security
Reliability
and Availability
Interoperability

Integrated
Innovation
Go to www.getthefacts.com for complete reports

Third Party Validation

Best Value
Does Linux cost less to acquire?

Source: Bearing Point, Server Operating System Licensing and
Support Cost Comparison – May 2004
** Full Support indicates 24x7 support on all servers. Limited
Support indicates 24x7 support on only 10% of servers.

Best Value
Does Linux have lower TCO?

Noncommissioned Studies:

Security
OS Bulletins - 2003

An industry problem…
Companies Detecting
Security Breaches

92%
Source: 2003 Computer Security Institute survey
of 250 major US companies

…a Microsoft priority
SD3+C
Secure by:
Design
Default
Deployment
Communications

125
100
75
1
250
25
0

RedHat
Microsoft

120

87
43
2002

39
2003

Source: OS Bulletins from Vendor Web Sites

180 Days Later

57

60
45
30

32

34

14

15
0

RH8

RH9

WS00 WS03

Security
Is Linux more secure?

All Days of Risk
25

Microsoft
RedHat

57

Debian

57

128

82

Microsoft

74
0

20

40

Source: “Is Windows More Secure than Linux?”, Forrester, March 2004

60

120

86

MandrakeSoft
SUSE

162

80

100

Red Hat

Debian

Mandrake
Soft

Source: Forrester Research: http://www.forrester.com/Research/Document/
Excerpt/0,7211,33941,00.html

111

SUSE

Security
Is Linux more secure?
Common
Customer Questions

Forrester Response:
“What matters”

Forrester
Analysis

1.

“Linux distributions
say they can fix
things within just
hours, why can’t
Microsoft do that?”

“Microsoft’s average
of 25 days between disclosure & release of a
fix was the lowest of all the platform
maintainers we evaluated.”

2.

“Doesn’t Linux have
fewer bugs and
aren’t they less
severe than
Windows bugs?”

Forrester analysis shows Microsoft having
the fewest high-severity flaws of any vendor
– and 25 less than the next lowest

3.

“Isn’t open source
software better at
fixing vulnerabilities
than Microsoft?”

Forrester analysis shows Microsoft as the
only vendor to fix 100% of the flaws
discovered

Reliability
VeriTest Proof of our System Reliability

End User Pain
Average Service Loss Time
HH:MM:SS

More reliable

4:59:44
4.5

4:20:19

4

Hours

Windows prevented 4x more events
Windows detected over 2x as many issues
before the trouble ticket was received
Windows system issues (created by test
proctor) were resolved 20% faster and 8%
more successfully

5

3.5
3
2.5
2

Windows

Linux

Configuring the Environment
Total Time for Completed Tasks*

Easier to Maintain
25

20:55:13
20

Hours

Windows required approx. 50% less time to
complete directory-related tasks with Active
Directory vs. OpenLDAP
Windows tape drive and printer
configurations were completed over 2x faster
Improving system fault tolerance/redundancy
required >2x more time for Linux

HH:MM:SS

15

13:11:56

10
5
0

Windows

Linux

*21% more “proactive” tasks completed on Windows

Interoperability
Microsoft’s Approach
Enable Microsoft technology to work well with
Windows and non-Windows applications
Develop solutions based on industry standards

Provide rich services
that address key
business scenarios
Enable ISVs to
develop solutions and
solve niche needs

MS Interoperability Model

Interoperability
Developer Priorities

Interoperability is
very important

Interop

65%

48%
44%

Security
Support
0

20

40

60

80

Interoperability Prioritization

Windows
interoperability
is first priority

79%

Windows

43%

Unix
Linux

22%
0

20

40

60

80

Best Support of Interoperability

Microsoft is doing the
most to achieve
interoperability goals
Source: Jupiter research survey, 12/03

72%
63%
55%

MS
IBM

Linux
0

20

40

60

% of IT Decision Makers

80

File/Print Services
Network Access Services
Directory/Security Services
Kernel

Platform Features

MSMQ

Windows Media Services

Windows Server
Distributed File Service STS
VPN

RAS

PKI

Smart Card

Active Directory WMI Kerberos

Consistent
Interfaces

3rd Party Products

?

OpenOffice
?

?

Real or Darwin Media Server*
?

Apache
Samba
OpenLDAP
?

?

Linux Kernel

Windows Kernel
Common
Mgmt Infra

?

?

Sendmail

3rd Party Products

Mobile Info Svr

Transaction Service

JBOSS

Single
Sign-On

Customer Requirements Microsoft Platform

?

Linux Platform

**Some services not available in Linux distributions are available at additional cost from vendors such as IBM

?

Web Services

J2EE/PHP

.NET Framework IIS ASP.NET

?

Media Services

MySQL

Visual Studio.NET

Application Services

SMS 2003, MOM 2005

Programming Frameworks

SQL Server

Integrated Development Tools

Integrated Management Tools

Integrated Data Management

Office 2003

BizTalk, CS2002

MMS, ISA, AD

Exchange, SPS

Other

Mobility

Productivity

Commerce

Identity Mgmt

Collaboration

Integrated Innovation

Customer Value – Local Evidence
TZUM – Retail (Bulgaria)
TZUM switched from Linux to Windows Server 2003 for
better integration and easier management. Its new IT
infrastructure runs 30% more efficiently
Zotel – Telecommunications (Poland)
Switch from Linux to Microsoft reduces IT costs by 30%

Duna TV – Media Service Provider (Hungary)
Switch to Microsoft Exchange Server 2003 from Linux
cuts operating costs by half
Romgaz – Utility (Romania)
Evaluated Linux and OSS but chose Microsoft because of
ease-of-use, support and features
Ahold – Retail (Czech Republic)
Consolidation from Linux and Novell to Windows
infrastructure

IDC EMEA Economic Impact Study, 2004
• Update of preceding Economic Impact Model studies

• Analyzes the specific contributions of the software
sector
• This research covered 19 countries (~82% of IT
spending in EMEA):
Austria
Denmark
France
Germany
Ireland
Italy
Netherlands
Portugal
Spain
UK

Czech Republic
Estonia
Hungary
Lithuania
Russia
Poland
Israel
South Africa
Turkey

Microsoft-Related Economic Impact
Microsoft-Related Employees in 2004*

C ze c h R e p
E s to n ia
H u n g a ry
L ith u a n ia
P o la n d
R u s s ia
T o ta l E E G ro u p

S e rvic e s &

IT

H a rd w a re

S o ftw a re

C h a n n e ls

P ro fe s s io n a ls

T o ta l

% T o ta l

1 ,6 8 6
510
1 ,2 4 7
854
3 ,8 0 1
7 ,9 3 7

599
209
446
287
838
656

1 2 ,6 5 1
2 ,3 6 4
8 ,9 1 0
6 ,4 0 2
2 1 ,9 7 4
3 8 ,5 1 2

3 4 ,2 2 1
3 ,0 9 1
2 5 ,9 1 3
3 ,7 1 4
7 0 ,0 1 6
1 3 1 ,2 8 6

4 9 ,1 5 7
6 ,1 7 4
3 6 ,5 1 6
1 1 ,2 5 7
9 6 ,6 3 0
1 7 8 ,3 9 1

40%
54%
41%
54%
50%
55%

1 6 ,0 3 6

3 ,0 3 5

9 0 ,8 1 4

2 6 8 ,2 4 1

3 7 8 ,1 2 5

49%

Microsoft-Related Taxes ($M)**
C zech R ep
E stonia
H ungary
Lithuania
P oland
R ussia
To tal E E G ro u p

$181
$29
$231
$26
$565
$279
$1,312

* Employees in companies that create, sell, distribute, or service hardware or software that runs on Microsoft operating systems and IT employees at user organization that develop
applications, service, or maintain such hardware or software
** Includes value-added or sales taxes, corporate income taxes, and personal income and social taxes

Source: IDC IT Economic Impact Study, 2004, 19 Countries

Economic Impact Study in Slovakia, 2003
Run by Institute of Slovak and World Economy – part
of Slovak Academy of Science
Impact of IT on economic growth
Position the Slovak IT sector in regional and global
perspectives
Compare impact of IT sector with other branches
Microsoft contribution to Slovak IT sector

Analyzes the impact made by the commercial software
model and Microsoft on the local economy
1 SK spent on purchasing of software from Microsoft would
generate a nearly 7 SK effect on the Slovak economy

Software Industry Trends in Latvia, 2004
Research conducted by Latvian Information Technology
and Telecommunication Association (LITTA)
Analyzes the business trends in software development,
service and distribution industry
Usage of commercial and open source platforms in business
and company resources invested in each of these platforms.
Assessment of economic impact of the software industry trends
on the national economy

Findings:
Commercial software model creates the highest value added
for their company - 100% of all respondents
Commercial platform is considered with lower total
development costs

IDC IT Economic Impact Study, 2005

Economic Impact of the IT Sector
in South East Europe
The research covers 6 countries:
Bulgaria
Croatia
Macedonia
Romania

Serbia and Montenegro
Slovenia

Microsoft Related Employment
Total IT
Employees
in 2004

MicrosoftRelated
Employees
in 2004*

% Total

MicrosoftRelated
Taxes
($M)**

Bulgaria

27.462

14.285

52%

$32,2

Croatia

20.044

9.365

47%

$73,0

2.894

1.613

56%

$6,6

Romania

29.251

18.995

65%

$63,7

Slovenia

18.222

8.483

47%

$109,2

Serbia & Montenegro

24.173

11.844

49%

$27

122.046

64.585

53%

$311

Macedonia

Total Group

Source: IDC IT Economic Impact Study, 2005, 6 South East European Countries

Revenues
In SEE the IT sector generates over $600 million in tax
receipts
Includes value-added or sales taxes, corporate income taxes,
and personal income and social taxes

Over $300 million of this is attributed to companies
and employees working with Microsoft products
1 : 8.5
For every dollar of Microsoft revenue in the region, another
eight and a half were generated by other companies selling
hardware or software that works on Microsoft operating
systems, or servicing that software

Source: IDC IT Economic Impact Study, 2005, 6 South East European Countries

Government
Policy
Industry
Interoperability

Security & Quality
Ongoing Relationship
Indemnification
Support

Productivity partner
Breakthroughs
Integration
Manageability

Applications
Compatibility
Hardware
Partners

© 2004 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.


Slide 9

Delivering Value to Our
Customers and Partners
Dan Bulucea
Platform Strategy Manager
Microsoft Eastern Europe

Agenda
Market Overview
Microsoft’s Commitment to Customers
Integrated Innovation Advantage
Economic Impact of IT
Why Microsoft

Market Overview
IT Industry Trends
Everyone agrees on one thing: the move
to x86
Price/performance and flexibility driving change

Focus on security
Increasing pressures to do more with less
Broad web services movement
24x7 availability essential in a global
economy

Market Overview
Market Trends
IBM want this to be all about their services
“Devalue” the platform and monopolize service
opportunities

Novell connecting the dots with strategic
acquisitions
Attempting an end-to-end platform play on Linux

Oracle supporting Linux adoption
Sun delivering strategy “du jour”
Customer demands, platform challenges, cost models

New companies developing roots in the market
(e.g., RedHat, MySQL, other Open Source
vendors)

Customers Told Us…
Customer Requirement

Microsoft Commitment

Increase economic value

Best Value

Protect my data

Stronger
Security

Reduce downtime

Reliability
and Availability

Leverage existing assets

Interoperability

Connect with customers (Revenue)
Integrate with partners (Profitability)
Empower employees (Productivity)

Integrated
Innovation

Proof Of Our Commitment To Customers
Microsoft Commitment

Best value
Stronger
Security
Reliability
and Availability
Interoperability

Integrated
Innovation
Go to www.getthefacts.com for complete reports

Third Party Validation

Best Value
Does Linux cost less to acquire?

Source: Bearing Point, Server Operating System Licensing and
Support Cost Comparison – May 2004
** Full Support indicates 24x7 support on all servers. Limited
Support indicates 24x7 support on only 10% of servers.

Best Value
Does Linux have lower TCO?

Noncommissioned Studies:

Security
OS Bulletins - 2003

An industry problem…
Companies Detecting
Security Breaches

92%
Source: 2003 Computer Security Institute survey
of 250 major US companies

…a Microsoft priority
SD3+C
Secure by:
Design
Default
Deployment
Communications

125
100
75
1
250
25
0

RedHat
Microsoft

120

87
43
2002

39
2003

Source: OS Bulletins from Vendor Web Sites

180 Days Later

57

60
45
30

32

34

14

15
0

RH8

RH9

WS00 WS03

Security
Is Linux more secure?

All Days of Risk
25

Microsoft
RedHat

57

Debian

57

128

82

Microsoft

74
0

20

40

Source: “Is Windows More Secure than Linux?”, Forrester, March 2004

60

120

86

MandrakeSoft
SUSE

162

80

100

Red Hat

Debian

Mandrake
Soft

Source: Forrester Research: http://www.forrester.com/Research/Document/
Excerpt/0,7211,33941,00.html

111

SUSE

Security
Is Linux more secure?
Common
Customer Questions

Forrester Response:
“What matters”

Forrester
Analysis

1.

“Linux distributions
say they can fix
things within just
hours, why can’t
Microsoft do that?”

“Microsoft’s average
of 25 days between disclosure & release of a
fix was the lowest of all the platform
maintainers we evaluated.”

2.

“Doesn’t Linux have
fewer bugs and
aren’t they less
severe than
Windows bugs?”

Forrester analysis shows Microsoft having
the fewest high-severity flaws of any vendor
– and 25 less than the next lowest

3.

“Isn’t open source
software better at
fixing vulnerabilities
than Microsoft?”

Forrester analysis shows Microsoft as the
only vendor to fix 100% of the flaws
discovered

Reliability
VeriTest Proof of our System Reliability

End User Pain
Average Service Loss Time
HH:MM:SS

More reliable

4:59:44
4.5

4:20:19

4

Hours

Windows prevented 4x more events
Windows detected over 2x as many issues
before the trouble ticket was received
Windows system issues (created by test
proctor) were resolved 20% faster and 8%
more successfully

5

3.5
3
2.5
2

Windows

Linux

Configuring the Environment
Total Time for Completed Tasks*

Easier to Maintain
25

20:55:13
20

Hours

Windows required approx. 50% less time to
complete directory-related tasks with Active
Directory vs. OpenLDAP
Windows tape drive and printer
configurations were completed over 2x faster
Improving system fault tolerance/redundancy
required >2x more time for Linux

HH:MM:SS

15

13:11:56

10
5
0

Windows

Linux

*21% more “proactive” tasks completed on Windows

Interoperability
Microsoft’s Approach
Enable Microsoft technology to work well with
Windows and non-Windows applications
Develop solutions based on industry standards

Provide rich services
that address key
business scenarios
Enable ISVs to
develop solutions and
solve niche needs

MS Interoperability Model

Interoperability
Developer Priorities

Interoperability is
very important

Interop

65%

48%
44%

Security
Support
0

20

40

60

80

Interoperability Prioritization

Windows
interoperability
is first priority

79%

Windows

43%

Unix
Linux

22%
0

20

40

60

80

Best Support of Interoperability

Microsoft is doing the
most to achieve
interoperability goals
Source: Jupiter research survey, 12/03

72%
63%
55%

MS
IBM

Linux
0

20

40

60

% of IT Decision Makers

80

File/Print Services
Network Access Services
Directory/Security Services
Kernel

Platform Features

MSMQ

Windows Media Services

Windows Server
Distributed File Service STS
VPN

RAS

PKI

Smart Card

Active Directory WMI Kerberos

Consistent
Interfaces

3rd Party Products

?

OpenOffice
?

?

Real or Darwin Media Server*
?

Apache
Samba
OpenLDAP
?

?

Linux Kernel

Windows Kernel
Common
Mgmt Infra

?

?

Sendmail

3rd Party Products

Mobile Info Svr

Transaction Service

JBOSS

Single
Sign-On

Customer Requirements Microsoft Platform

?

Linux Platform

**Some services not available in Linux distributions are available at additional cost from vendors such as IBM

?

Web Services

J2EE/PHP

.NET Framework IIS ASP.NET

?

Media Services

MySQL

Visual Studio.NET

Application Services

SMS 2003, MOM 2005

Programming Frameworks

SQL Server

Integrated Development Tools

Integrated Management Tools

Integrated Data Management

Office 2003

BizTalk, CS2002

MMS, ISA, AD

Exchange, SPS

Other

Mobility

Productivity

Commerce

Identity Mgmt

Collaboration

Integrated Innovation

Customer Value – Local Evidence
TZUM – Retail (Bulgaria)
TZUM switched from Linux to Windows Server 2003 for
better integration and easier management. Its new IT
infrastructure runs 30% more efficiently
Zotel – Telecommunications (Poland)
Switch from Linux to Microsoft reduces IT costs by 30%

Duna TV – Media Service Provider (Hungary)
Switch to Microsoft Exchange Server 2003 from Linux
cuts operating costs by half
Romgaz – Utility (Romania)
Evaluated Linux and OSS but chose Microsoft because of
ease-of-use, support and features
Ahold – Retail (Czech Republic)
Consolidation from Linux and Novell to Windows
infrastructure

IDC EMEA Economic Impact Study, 2004
• Update of preceding Economic Impact Model studies

• Analyzes the specific contributions of the software
sector
• This research covered 19 countries (~82% of IT
spending in EMEA):
Austria
Denmark
France
Germany
Ireland
Italy
Netherlands
Portugal
Spain
UK

Czech Republic
Estonia
Hungary
Lithuania
Russia
Poland
Israel
South Africa
Turkey

Microsoft-Related Economic Impact
Microsoft-Related Employees in 2004*

C ze c h R e p
E s to n ia
H u n g a ry
L ith u a n ia
P o la n d
R u s s ia
T o ta l E E G ro u p

S e rvic e s &

IT

H a rd w a re

S o ftw a re

C h a n n e ls

P ro fe s s io n a ls

T o ta l

% T o ta l

1 ,6 8 6
510
1 ,2 4 7
854
3 ,8 0 1
7 ,9 3 7

599
209
446
287
838
656

1 2 ,6 5 1
2 ,3 6 4
8 ,9 1 0
6 ,4 0 2
2 1 ,9 7 4
3 8 ,5 1 2

3 4 ,2 2 1
3 ,0 9 1
2 5 ,9 1 3
3 ,7 1 4
7 0 ,0 1 6
1 3 1 ,2 8 6

4 9 ,1 5 7
6 ,1 7 4
3 6 ,5 1 6
1 1 ,2 5 7
9 6 ,6 3 0
1 7 8 ,3 9 1

40%
54%
41%
54%
50%
55%

1 6 ,0 3 6

3 ,0 3 5

9 0 ,8 1 4

2 6 8 ,2 4 1

3 7 8 ,1 2 5

49%

Microsoft-Related Taxes ($M)**
C zech R ep
E stonia
H ungary
Lithuania
P oland
R ussia
To tal E E G ro u p

$181
$29
$231
$26
$565
$279
$1,312

* Employees in companies that create, sell, distribute, or service hardware or software that runs on Microsoft operating systems and IT employees at user organization that develop
applications, service, or maintain such hardware or software
** Includes value-added or sales taxes, corporate income taxes, and personal income and social taxes

Source: IDC IT Economic Impact Study, 2004, 19 Countries

Economic Impact Study in Slovakia, 2003
Run by Institute of Slovak and World Economy – part
of Slovak Academy of Science
Impact of IT on economic growth
Position the Slovak IT sector in regional and global
perspectives
Compare impact of IT sector with other branches
Microsoft contribution to Slovak IT sector

Analyzes the impact made by the commercial software
model and Microsoft on the local economy
1 SK spent on purchasing of software from Microsoft would
generate a nearly 7 SK effect on the Slovak economy

Software Industry Trends in Latvia, 2004
Research conducted by Latvian Information Technology
and Telecommunication Association (LITTA)
Analyzes the business trends in software development,
service and distribution industry
Usage of commercial and open source platforms in business
and company resources invested in each of these platforms.
Assessment of economic impact of the software industry trends
on the national economy

Findings:
Commercial software model creates the highest value added
for their company - 100% of all respondents
Commercial platform is considered with lower total
development costs

IDC IT Economic Impact Study, 2005

Economic Impact of the IT Sector
in South East Europe
The research covers 6 countries:
Bulgaria
Croatia
Macedonia
Romania

Serbia and Montenegro
Slovenia

Microsoft Related Employment
Total IT
Employees
in 2004

MicrosoftRelated
Employees
in 2004*

% Total

MicrosoftRelated
Taxes
($M)**

Bulgaria

27.462

14.285

52%

$32,2

Croatia

20.044

9.365

47%

$73,0

2.894

1.613

56%

$6,6

Romania

29.251

18.995

65%

$63,7

Slovenia

18.222

8.483

47%

$109,2

Serbia & Montenegro

24.173

11.844

49%

$27

122.046

64.585

53%

$311

Macedonia

Total Group

Source: IDC IT Economic Impact Study, 2005, 6 South East European Countries

Revenues
In SEE the IT sector generates over $600 million in tax
receipts
Includes value-added or sales taxes, corporate income taxes,
and personal income and social taxes

Over $300 million of this is attributed to companies
and employees working with Microsoft products
1 : 8.5
For every dollar of Microsoft revenue in the region, another
eight and a half were generated by other companies selling
hardware or software that works on Microsoft operating
systems, or servicing that software

Source: IDC IT Economic Impact Study, 2005, 6 South East European Countries

Government
Policy
Industry
Interoperability

Security & Quality
Ongoing Relationship
Indemnification
Support

Productivity partner
Breakthroughs
Integration
Manageability

Applications
Compatibility
Hardware
Partners

© 2004 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.


Slide 10

Delivering Value to Our
Customers and Partners
Dan Bulucea
Platform Strategy Manager
Microsoft Eastern Europe

Agenda
Market Overview
Microsoft’s Commitment to Customers
Integrated Innovation Advantage
Economic Impact of IT
Why Microsoft

Market Overview
IT Industry Trends
Everyone agrees on one thing: the move
to x86
Price/performance and flexibility driving change

Focus on security
Increasing pressures to do more with less
Broad web services movement
24x7 availability essential in a global
economy

Market Overview
Market Trends
IBM want this to be all about their services
“Devalue” the platform and monopolize service
opportunities

Novell connecting the dots with strategic
acquisitions
Attempting an end-to-end platform play on Linux

Oracle supporting Linux adoption
Sun delivering strategy “du jour”
Customer demands, platform challenges, cost models

New companies developing roots in the market
(e.g., RedHat, MySQL, other Open Source
vendors)

Customers Told Us…
Customer Requirement

Microsoft Commitment

Increase economic value

Best Value

Protect my data

Stronger
Security

Reduce downtime

Reliability
and Availability

Leverage existing assets

Interoperability

Connect with customers (Revenue)
Integrate with partners (Profitability)
Empower employees (Productivity)

Integrated
Innovation

Proof Of Our Commitment To Customers
Microsoft Commitment

Best value
Stronger
Security
Reliability
and Availability
Interoperability

Integrated
Innovation
Go to www.getthefacts.com for complete reports

Third Party Validation

Best Value
Does Linux cost less to acquire?

Source: Bearing Point, Server Operating System Licensing and
Support Cost Comparison – May 2004
** Full Support indicates 24x7 support on all servers. Limited
Support indicates 24x7 support on only 10% of servers.

Best Value
Does Linux have lower TCO?

Noncommissioned Studies:

Security
OS Bulletins - 2003

An industry problem…
Companies Detecting
Security Breaches

92%
Source: 2003 Computer Security Institute survey
of 250 major US companies

…a Microsoft priority
SD3+C
Secure by:
Design
Default
Deployment
Communications

125
100
75
1
250
25
0

RedHat
Microsoft

120

87
43
2002

39
2003

Source: OS Bulletins from Vendor Web Sites

180 Days Later

57

60
45
30

32

34

14

15
0

RH8

RH9

WS00 WS03

Security
Is Linux more secure?

All Days of Risk
25

Microsoft
RedHat

57

Debian

57

128

82

Microsoft

74
0

20

40

Source: “Is Windows More Secure than Linux?”, Forrester, March 2004

60

120

86

MandrakeSoft
SUSE

162

80

100

Red Hat

Debian

Mandrake
Soft

Source: Forrester Research: http://www.forrester.com/Research/Document/
Excerpt/0,7211,33941,00.html

111

SUSE

Security
Is Linux more secure?
Common
Customer Questions

Forrester Response:
“What matters”

Forrester
Analysis

1.

“Linux distributions
say they can fix
things within just
hours, why can’t
Microsoft do that?”

“Microsoft’s average
of 25 days between disclosure & release of a
fix was the lowest of all the platform
maintainers we evaluated.”

2.

“Doesn’t Linux have
fewer bugs and
aren’t they less
severe than
Windows bugs?”

Forrester analysis shows Microsoft having
the fewest high-severity flaws of any vendor
– and 25 less than the next lowest

3.

“Isn’t open source
software better at
fixing vulnerabilities
than Microsoft?”

Forrester analysis shows Microsoft as the
only vendor to fix 100% of the flaws
discovered

Reliability
VeriTest Proof of our System Reliability

End User Pain
Average Service Loss Time
HH:MM:SS

More reliable

4:59:44
4.5

4:20:19

4

Hours

Windows prevented 4x more events
Windows detected over 2x as many issues
before the trouble ticket was received
Windows system issues (created by test
proctor) were resolved 20% faster and 8%
more successfully

5

3.5
3
2.5
2

Windows

Linux

Configuring the Environment
Total Time for Completed Tasks*

Easier to Maintain
25

20:55:13
20

Hours

Windows required approx. 50% less time to
complete directory-related tasks with Active
Directory vs. OpenLDAP
Windows tape drive and printer
configurations were completed over 2x faster
Improving system fault tolerance/redundancy
required >2x more time for Linux

HH:MM:SS

15

13:11:56

10
5
0

Windows

Linux

*21% more “proactive” tasks completed on Windows

Interoperability
Microsoft’s Approach
Enable Microsoft technology to work well with
Windows and non-Windows applications
Develop solutions based on industry standards

Provide rich services
that address key
business scenarios
Enable ISVs to
develop solutions and
solve niche needs

MS Interoperability Model

Interoperability
Developer Priorities

Interoperability is
very important

Interop

65%

48%
44%

Security
Support
0

20

40

60

80

Interoperability Prioritization

Windows
interoperability
is first priority

79%

Windows

43%

Unix
Linux

22%
0

20

40

60

80

Best Support of Interoperability

Microsoft is doing the
most to achieve
interoperability goals
Source: Jupiter research survey, 12/03

72%
63%
55%

MS
IBM

Linux
0

20

40

60

% of IT Decision Makers

80

File/Print Services
Network Access Services
Directory/Security Services
Kernel

Platform Features

MSMQ

Windows Media Services

Windows Server
Distributed File Service STS
VPN

RAS

PKI

Smart Card

Active Directory WMI Kerberos

Consistent
Interfaces

3rd Party Products

?

OpenOffice
?

?

Real or Darwin Media Server*
?

Apache
Samba
OpenLDAP
?

?

Linux Kernel

Windows Kernel
Common
Mgmt Infra

?

?

Sendmail

3rd Party Products

Mobile Info Svr

Transaction Service

JBOSS

Single
Sign-On

Customer Requirements Microsoft Platform

?

Linux Platform

**Some services not available in Linux distributions are available at additional cost from vendors such as IBM

?

Web Services

J2EE/PHP

.NET Framework IIS ASP.NET

?

Media Services

MySQL

Visual Studio.NET

Application Services

SMS 2003, MOM 2005

Programming Frameworks

SQL Server

Integrated Development Tools

Integrated Management Tools

Integrated Data Management

Office 2003

BizTalk, CS2002

MMS, ISA, AD

Exchange, SPS

Other

Mobility

Productivity

Commerce

Identity Mgmt

Collaboration

Integrated Innovation

Customer Value – Local Evidence
TZUM – Retail (Bulgaria)
TZUM switched from Linux to Windows Server 2003 for
better integration and easier management. Its new IT
infrastructure runs 30% more efficiently
Zotel – Telecommunications (Poland)
Switch from Linux to Microsoft reduces IT costs by 30%

Duna TV – Media Service Provider (Hungary)
Switch to Microsoft Exchange Server 2003 from Linux
cuts operating costs by half
Romgaz – Utility (Romania)
Evaluated Linux and OSS but chose Microsoft because of
ease-of-use, support and features
Ahold – Retail (Czech Republic)
Consolidation from Linux and Novell to Windows
infrastructure

IDC EMEA Economic Impact Study, 2004
• Update of preceding Economic Impact Model studies

• Analyzes the specific contributions of the software
sector
• This research covered 19 countries (~82% of IT
spending in EMEA):
Austria
Denmark
France
Germany
Ireland
Italy
Netherlands
Portugal
Spain
UK

Czech Republic
Estonia
Hungary
Lithuania
Russia
Poland
Israel
South Africa
Turkey

Microsoft-Related Economic Impact
Microsoft-Related Employees in 2004*

C ze c h R e p
E s to n ia
H u n g a ry
L ith u a n ia
P o la n d
R u s s ia
T o ta l E E G ro u p

S e rvic e s &

IT

H a rd w a re

S o ftw a re

C h a n n e ls

P ro fe s s io n a ls

T o ta l

% T o ta l

1 ,6 8 6
510
1 ,2 4 7
854
3 ,8 0 1
7 ,9 3 7

599
209
446
287
838
656

1 2 ,6 5 1
2 ,3 6 4
8 ,9 1 0
6 ,4 0 2
2 1 ,9 7 4
3 8 ,5 1 2

3 4 ,2 2 1
3 ,0 9 1
2 5 ,9 1 3
3 ,7 1 4
7 0 ,0 1 6
1 3 1 ,2 8 6

4 9 ,1 5 7
6 ,1 7 4
3 6 ,5 1 6
1 1 ,2 5 7
9 6 ,6 3 0
1 7 8 ,3 9 1

40%
54%
41%
54%
50%
55%

1 6 ,0 3 6

3 ,0 3 5

9 0 ,8 1 4

2 6 8 ,2 4 1

3 7 8 ,1 2 5

49%

Microsoft-Related Taxes ($M)**
C zech R ep
E stonia
H ungary
Lithuania
P oland
R ussia
To tal E E G ro u p

$181
$29
$231
$26
$565
$279
$1,312

* Employees in companies that create, sell, distribute, or service hardware or software that runs on Microsoft operating systems and IT employees at user organization that develop
applications, service, or maintain such hardware or software
** Includes value-added or sales taxes, corporate income taxes, and personal income and social taxes

Source: IDC IT Economic Impact Study, 2004, 19 Countries

Economic Impact Study in Slovakia, 2003
Run by Institute of Slovak and World Economy – part
of Slovak Academy of Science
Impact of IT on economic growth
Position the Slovak IT sector in regional and global
perspectives
Compare impact of IT sector with other branches
Microsoft contribution to Slovak IT sector

Analyzes the impact made by the commercial software
model and Microsoft on the local economy
1 SK spent on purchasing of software from Microsoft would
generate a nearly 7 SK effect on the Slovak economy

Software Industry Trends in Latvia, 2004
Research conducted by Latvian Information Technology
and Telecommunication Association (LITTA)
Analyzes the business trends in software development,
service and distribution industry
Usage of commercial and open source platforms in business
and company resources invested in each of these platforms.
Assessment of economic impact of the software industry trends
on the national economy

Findings:
Commercial software model creates the highest value added
for their company - 100% of all respondents
Commercial platform is considered with lower total
development costs

IDC IT Economic Impact Study, 2005

Economic Impact of the IT Sector
in South East Europe
The research covers 6 countries:
Bulgaria
Croatia
Macedonia
Romania

Serbia and Montenegro
Slovenia

Microsoft Related Employment
Total IT
Employees
in 2004

MicrosoftRelated
Employees
in 2004*

% Total

MicrosoftRelated
Taxes
($M)**

Bulgaria

27.462

14.285

52%

$32,2

Croatia

20.044

9.365

47%

$73,0

2.894

1.613

56%

$6,6

Romania

29.251

18.995

65%

$63,7

Slovenia

18.222

8.483

47%

$109,2

Serbia & Montenegro

24.173

11.844

49%

$27

122.046

64.585

53%

$311

Macedonia

Total Group

Source: IDC IT Economic Impact Study, 2005, 6 South East European Countries

Revenues
In SEE the IT sector generates over $600 million in tax
receipts
Includes value-added or sales taxes, corporate income taxes,
and personal income and social taxes

Over $300 million of this is attributed to companies
and employees working with Microsoft products
1 : 8.5
For every dollar of Microsoft revenue in the region, another
eight and a half were generated by other companies selling
hardware or software that works on Microsoft operating
systems, or servicing that software

Source: IDC IT Economic Impact Study, 2005, 6 South East European Countries

Government
Policy
Industry
Interoperability

Security & Quality
Ongoing Relationship
Indemnification
Support

Productivity partner
Breakthroughs
Integration
Manageability

Applications
Compatibility
Hardware
Partners

© 2004 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.


Slide 11

Delivering Value to Our
Customers and Partners
Dan Bulucea
Platform Strategy Manager
Microsoft Eastern Europe

Agenda
Market Overview
Microsoft’s Commitment to Customers
Integrated Innovation Advantage
Economic Impact of IT
Why Microsoft

Market Overview
IT Industry Trends
Everyone agrees on one thing: the move
to x86
Price/performance and flexibility driving change

Focus on security
Increasing pressures to do more with less
Broad web services movement
24x7 availability essential in a global
economy

Market Overview
Market Trends
IBM want this to be all about their services
“Devalue” the platform and monopolize service
opportunities

Novell connecting the dots with strategic
acquisitions
Attempting an end-to-end platform play on Linux

Oracle supporting Linux adoption
Sun delivering strategy “du jour”
Customer demands, platform challenges, cost models

New companies developing roots in the market
(e.g., RedHat, MySQL, other Open Source
vendors)

Customers Told Us…
Customer Requirement

Microsoft Commitment

Increase economic value

Best Value

Protect my data

Stronger
Security

Reduce downtime

Reliability
and Availability

Leverage existing assets

Interoperability

Connect with customers (Revenue)
Integrate with partners (Profitability)
Empower employees (Productivity)

Integrated
Innovation

Proof Of Our Commitment To Customers
Microsoft Commitment

Best value
Stronger
Security
Reliability
and Availability
Interoperability

Integrated
Innovation
Go to www.getthefacts.com for complete reports

Third Party Validation

Best Value
Does Linux cost less to acquire?

Source: Bearing Point, Server Operating System Licensing and
Support Cost Comparison – May 2004
** Full Support indicates 24x7 support on all servers. Limited
Support indicates 24x7 support on only 10% of servers.

Best Value
Does Linux have lower TCO?

Noncommissioned Studies:

Security
OS Bulletins - 2003

An industry problem…
Companies Detecting
Security Breaches

92%
Source: 2003 Computer Security Institute survey
of 250 major US companies

…a Microsoft priority
SD3+C
Secure by:
Design
Default
Deployment
Communications

125
100
75
1
250
25
0

RedHat
Microsoft

120

87
43
2002

39
2003

Source: OS Bulletins from Vendor Web Sites

180 Days Later

57

60
45
30

32

34

14

15
0

RH8

RH9

WS00 WS03

Security
Is Linux more secure?

All Days of Risk
25

Microsoft
RedHat

57

Debian

57

128

82

Microsoft

74
0

20

40

Source: “Is Windows More Secure than Linux?”, Forrester, March 2004

60

120

86

MandrakeSoft
SUSE

162

80

100

Red Hat

Debian

Mandrake
Soft

Source: Forrester Research: http://www.forrester.com/Research/Document/
Excerpt/0,7211,33941,00.html

111

SUSE

Security
Is Linux more secure?
Common
Customer Questions

Forrester Response:
“What matters”

Forrester
Analysis

1.

“Linux distributions
say they can fix
things within just
hours, why can’t
Microsoft do that?”

“Microsoft’s average
of 25 days between disclosure & release of a
fix was the lowest of all the platform
maintainers we evaluated.”

2.

“Doesn’t Linux have
fewer bugs and
aren’t they less
severe than
Windows bugs?”

Forrester analysis shows Microsoft having
the fewest high-severity flaws of any vendor
– and 25 less than the next lowest

3.

“Isn’t open source
software better at
fixing vulnerabilities
than Microsoft?”

Forrester analysis shows Microsoft as the
only vendor to fix 100% of the flaws
discovered

Reliability
VeriTest Proof of our System Reliability

End User Pain
Average Service Loss Time
HH:MM:SS

More reliable

4:59:44
4.5

4:20:19

4

Hours

Windows prevented 4x more events
Windows detected over 2x as many issues
before the trouble ticket was received
Windows system issues (created by test
proctor) were resolved 20% faster and 8%
more successfully

5

3.5
3
2.5
2

Windows

Linux

Configuring the Environment
Total Time for Completed Tasks*

Easier to Maintain
25

20:55:13
20

Hours

Windows required approx. 50% less time to
complete directory-related tasks with Active
Directory vs. OpenLDAP
Windows tape drive and printer
configurations were completed over 2x faster
Improving system fault tolerance/redundancy
required >2x more time for Linux

HH:MM:SS

15

13:11:56

10
5
0

Windows

Linux

*21% more “proactive” tasks completed on Windows

Interoperability
Microsoft’s Approach
Enable Microsoft technology to work well with
Windows and non-Windows applications
Develop solutions based on industry standards

Provide rich services
that address key
business scenarios
Enable ISVs to
develop solutions and
solve niche needs

MS Interoperability Model

Interoperability
Developer Priorities

Interoperability is
very important

Interop

65%

48%
44%

Security
Support
0

20

40

60

80

Interoperability Prioritization

Windows
interoperability
is first priority

79%

Windows

43%

Unix
Linux

22%
0

20

40

60

80

Best Support of Interoperability

Microsoft is doing the
most to achieve
interoperability goals
Source: Jupiter research survey, 12/03

72%
63%
55%

MS
IBM

Linux
0

20

40

60

% of IT Decision Makers

80

File/Print Services
Network Access Services
Directory/Security Services
Kernel

Platform Features

MSMQ

Windows Media Services

Windows Server
Distributed File Service STS
VPN

RAS

PKI

Smart Card

Active Directory WMI Kerberos

Consistent
Interfaces

3rd Party Products

?

OpenOffice
?

?

Real or Darwin Media Server*
?

Apache
Samba
OpenLDAP
?

?

Linux Kernel

Windows Kernel
Common
Mgmt Infra

?

?

Sendmail

3rd Party Products

Mobile Info Svr

Transaction Service

JBOSS

Single
Sign-On

Customer Requirements Microsoft Platform

?

Linux Platform

**Some services not available in Linux distributions are available at additional cost from vendors such as IBM

?

Web Services

J2EE/PHP

.NET Framework IIS ASP.NET

?

Media Services

MySQL

Visual Studio.NET

Application Services

SMS 2003, MOM 2005

Programming Frameworks

SQL Server

Integrated Development Tools

Integrated Management Tools

Integrated Data Management

Office 2003

BizTalk, CS2002

MMS, ISA, AD

Exchange, SPS

Other

Mobility

Productivity

Commerce

Identity Mgmt

Collaboration

Integrated Innovation

Customer Value – Local Evidence
TZUM – Retail (Bulgaria)
TZUM switched from Linux to Windows Server 2003 for
better integration and easier management. Its new IT
infrastructure runs 30% more efficiently
Zotel – Telecommunications (Poland)
Switch from Linux to Microsoft reduces IT costs by 30%

Duna TV – Media Service Provider (Hungary)
Switch to Microsoft Exchange Server 2003 from Linux
cuts operating costs by half
Romgaz – Utility (Romania)
Evaluated Linux and OSS but chose Microsoft because of
ease-of-use, support and features
Ahold – Retail (Czech Republic)
Consolidation from Linux and Novell to Windows
infrastructure

IDC EMEA Economic Impact Study, 2004
• Update of preceding Economic Impact Model studies

• Analyzes the specific contributions of the software
sector
• This research covered 19 countries (~82% of IT
spending in EMEA):
Austria
Denmark
France
Germany
Ireland
Italy
Netherlands
Portugal
Spain
UK

Czech Republic
Estonia
Hungary
Lithuania
Russia
Poland
Israel
South Africa
Turkey

Microsoft-Related Economic Impact
Microsoft-Related Employees in 2004*

C ze c h R e p
E s to n ia
H u n g a ry
L ith u a n ia
P o la n d
R u s s ia
T o ta l E E G ro u p

S e rvic e s &

IT

H a rd w a re

S o ftw a re

C h a n n e ls

P ro fe s s io n a ls

T o ta l

% T o ta l

1 ,6 8 6
510
1 ,2 4 7
854
3 ,8 0 1
7 ,9 3 7

599
209
446
287
838
656

1 2 ,6 5 1
2 ,3 6 4
8 ,9 1 0
6 ,4 0 2
2 1 ,9 7 4
3 8 ,5 1 2

3 4 ,2 2 1
3 ,0 9 1
2 5 ,9 1 3
3 ,7 1 4
7 0 ,0 1 6
1 3 1 ,2 8 6

4 9 ,1 5 7
6 ,1 7 4
3 6 ,5 1 6
1 1 ,2 5 7
9 6 ,6 3 0
1 7 8 ,3 9 1

40%
54%
41%
54%
50%
55%

1 6 ,0 3 6

3 ,0 3 5

9 0 ,8 1 4

2 6 8 ,2 4 1

3 7 8 ,1 2 5

49%

Microsoft-Related Taxes ($M)**
C zech R ep
E stonia
H ungary
Lithuania
P oland
R ussia
To tal E E G ro u p

$181
$29
$231
$26
$565
$279
$1,312

* Employees in companies that create, sell, distribute, or service hardware or software that runs on Microsoft operating systems and IT employees at user organization that develop
applications, service, or maintain such hardware or software
** Includes value-added or sales taxes, corporate income taxes, and personal income and social taxes

Source: IDC IT Economic Impact Study, 2004, 19 Countries

Economic Impact Study in Slovakia, 2003
Run by Institute of Slovak and World Economy – part
of Slovak Academy of Science
Impact of IT on economic growth
Position the Slovak IT sector in regional and global
perspectives
Compare impact of IT sector with other branches
Microsoft contribution to Slovak IT sector

Analyzes the impact made by the commercial software
model and Microsoft on the local economy
1 SK spent on purchasing of software from Microsoft would
generate a nearly 7 SK effect on the Slovak economy

Software Industry Trends in Latvia, 2004
Research conducted by Latvian Information Technology
and Telecommunication Association (LITTA)
Analyzes the business trends in software development,
service and distribution industry
Usage of commercial and open source platforms in business
and company resources invested in each of these platforms.
Assessment of economic impact of the software industry trends
on the national economy

Findings:
Commercial software model creates the highest value added
for their company - 100% of all respondents
Commercial platform is considered with lower total
development costs

IDC IT Economic Impact Study, 2005

Economic Impact of the IT Sector
in South East Europe
The research covers 6 countries:
Bulgaria
Croatia
Macedonia
Romania

Serbia and Montenegro
Slovenia

Microsoft Related Employment
Total IT
Employees
in 2004

MicrosoftRelated
Employees
in 2004*

% Total

MicrosoftRelated
Taxes
($M)**

Bulgaria

27.462

14.285

52%

$32,2

Croatia

20.044

9.365

47%

$73,0

2.894

1.613

56%

$6,6

Romania

29.251

18.995

65%

$63,7

Slovenia

18.222

8.483

47%

$109,2

Serbia & Montenegro

24.173

11.844

49%

$27

122.046

64.585

53%

$311

Macedonia

Total Group

Source: IDC IT Economic Impact Study, 2005, 6 South East European Countries

Revenues
In SEE the IT sector generates over $600 million in tax
receipts
Includes value-added or sales taxes, corporate income taxes,
and personal income and social taxes

Over $300 million of this is attributed to companies
and employees working with Microsoft products
1 : 8.5
For every dollar of Microsoft revenue in the region, another
eight and a half were generated by other companies selling
hardware or software that works on Microsoft operating
systems, or servicing that software

Source: IDC IT Economic Impact Study, 2005, 6 South East European Countries

Government
Policy
Industry
Interoperability

Security & Quality
Ongoing Relationship
Indemnification
Support

Productivity partner
Breakthroughs
Integration
Manageability

Applications
Compatibility
Hardware
Partners

© 2004 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.


Slide 12

Delivering Value to Our
Customers and Partners
Dan Bulucea
Platform Strategy Manager
Microsoft Eastern Europe

Agenda
Market Overview
Microsoft’s Commitment to Customers
Integrated Innovation Advantage
Economic Impact of IT
Why Microsoft

Market Overview
IT Industry Trends
Everyone agrees on one thing: the move
to x86
Price/performance and flexibility driving change

Focus on security
Increasing pressures to do more with less
Broad web services movement
24x7 availability essential in a global
economy

Market Overview
Market Trends
IBM want this to be all about their services
“Devalue” the platform and monopolize service
opportunities

Novell connecting the dots with strategic
acquisitions
Attempting an end-to-end platform play on Linux

Oracle supporting Linux adoption
Sun delivering strategy “du jour”
Customer demands, platform challenges, cost models

New companies developing roots in the market
(e.g., RedHat, MySQL, other Open Source
vendors)

Customers Told Us…
Customer Requirement

Microsoft Commitment

Increase economic value

Best Value

Protect my data

Stronger
Security

Reduce downtime

Reliability
and Availability

Leverage existing assets

Interoperability

Connect with customers (Revenue)
Integrate with partners (Profitability)
Empower employees (Productivity)

Integrated
Innovation

Proof Of Our Commitment To Customers
Microsoft Commitment

Best value
Stronger
Security
Reliability
and Availability
Interoperability

Integrated
Innovation
Go to www.getthefacts.com for complete reports

Third Party Validation

Best Value
Does Linux cost less to acquire?

Source: Bearing Point, Server Operating System Licensing and
Support Cost Comparison – May 2004
** Full Support indicates 24x7 support on all servers. Limited
Support indicates 24x7 support on only 10% of servers.

Best Value
Does Linux have lower TCO?

Noncommissioned Studies:

Security
OS Bulletins - 2003

An industry problem…
Companies Detecting
Security Breaches

92%
Source: 2003 Computer Security Institute survey
of 250 major US companies

…a Microsoft priority
SD3+C
Secure by:
Design
Default
Deployment
Communications

125
100
75
1
250
25
0

RedHat
Microsoft

120

87
43
2002

39
2003

Source: OS Bulletins from Vendor Web Sites

180 Days Later

57

60
45
30

32

34

14

15
0

RH8

RH9

WS00 WS03

Security
Is Linux more secure?

All Days of Risk
25

Microsoft
RedHat

57

Debian

57

128

82

Microsoft

74
0

20

40

Source: “Is Windows More Secure than Linux?”, Forrester, March 2004

60

120

86

MandrakeSoft
SUSE

162

80

100

Red Hat

Debian

Mandrake
Soft

Source: Forrester Research: http://www.forrester.com/Research/Document/
Excerpt/0,7211,33941,00.html

111

SUSE

Security
Is Linux more secure?
Common
Customer Questions

Forrester Response:
“What matters”

Forrester
Analysis

1.

“Linux distributions
say they can fix
things within just
hours, why can’t
Microsoft do that?”

“Microsoft’s average
of 25 days between disclosure & release of a
fix was the lowest of all the platform
maintainers we evaluated.”

2.

“Doesn’t Linux have
fewer bugs and
aren’t they less
severe than
Windows bugs?”

Forrester analysis shows Microsoft having
the fewest high-severity flaws of any vendor
– and 25 less than the next lowest

3.

“Isn’t open source
software better at
fixing vulnerabilities
than Microsoft?”

Forrester analysis shows Microsoft as the
only vendor to fix 100% of the flaws
discovered

Reliability
VeriTest Proof of our System Reliability

End User Pain
Average Service Loss Time
HH:MM:SS

More reliable

4:59:44
4.5

4:20:19

4

Hours

Windows prevented 4x more events
Windows detected over 2x as many issues
before the trouble ticket was received
Windows system issues (created by test
proctor) were resolved 20% faster and 8%
more successfully

5

3.5
3
2.5
2

Windows

Linux

Configuring the Environment
Total Time for Completed Tasks*

Easier to Maintain
25

20:55:13
20

Hours

Windows required approx. 50% less time to
complete directory-related tasks with Active
Directory vs. OpenLDAP
Windows tape drive and printer
configurations were completed over 2x faster
Improving system fault tolerance/redundancy
required >2x more time for Linux

HH:MM:SS

15

13:11:56

10
5
0

Windows

Linux

*21% more “proactive” tasks completed on Windows

Interoperability
Microsoft’s Approach
Enable Microsoft technology to work well with
Windows and non-Windows applications
Develop solutions based on industry standards

Provide rich services
that address key
business scenarios
Enable ISVs to
develop solutions and
solve niche needs

MS Interoperability Model

Interoperability
Developer Priorities

Interoperability is
very important

Interop

65%

48%
44%

Security
Support
0

20

40

60

80

Interoperability Prioritization

Windows
interoperability
is first priority

79%

Windows

43%

Unix
Linux

22%
0

20

40

60

80

Best Support of Interoperability

Microsoft is doing the
most to achieve
interoperability goals
Source: Jupiter research survey, 12/03

72%
63%
55%

MS
IBM

Linux
0

20

40

60

% of IT Decision Makers

80

File/Print Services
Network Access Services
Directory/Security Services
Kernel

Platform Features

MSMQ

Windows Media Services

Windows Server
Distributed File Service STS
VPN

RAS

PKI

Smart Card

Active Directory WMI Kerberos

Consistent
Interfaces

3rd Party Products

?

OpenOffice
?

?

Real or Darwin Media Server*
?

Apache
Samba
OpenLDAP
?

?

Linux Kernel

Windows Kernel
Common
Mgmt Infra

?

?

Sendmail

3rd Party Products

Mobile Info Svr

Transaction Service

JBOSS

Single
Sign-On

Customer Requirements Microsoft Platform

?

Linux Platform

**Some services not available in Linux distributions are available at additional cost from vendors such as IBM

?

Web Services

J2EE/PHP

.NET Framework IIS ASP.NET

?

Media Services

MySQL

Visual Studio.NET

Application Services

SMS 2003, MOM 2005

Programming Frameworks

SQL Server

Integrated Development Tools

Integrated Management Tools

Integrated Data Management

Office 2003

BizTalk, CS2002

MMS, ISA, AD

Exchange, SPS

Other

Mobility

Productivity

Commerce

Identity Mgmt

Collaboration

Integrated Innovation

Customer Value – Local Evidence
TZUM – Retail (Bulgaria)
TZUM switched from Linux to Windows Server 2003 for
better integration and easier management. Its new IT
infrastructure runs 30% more efficiently
Zotel – Telecommunications (Poland)
Switch from Linux to Microsoft reduces IT costs by 30%

Duna TV – Media Service Provider (Hungary)
Switch to Microsoft Exchange Server 2003 from Linux
cuts operating costs by half
Romgaz – Utility (Romania)
Evaluated Linux and OSS but chose Microsoft because of
ease-of-use, support and features
Ahold – Retail (Czech Republic)
Consolidation from Linux and Novell to Windows
infrastructure

IDC EMEA Economic Impact Study, 2004
• Update of preceding Economic Impact Model studies

• Analyzes the specific contributions of the software
sector
• This research covered 19 countries (~82% of IT
spending in EMEA):
Austria
Denmark
France
Germany
Ireland
Italy
Netherlands
Portugal
Spain
UK

Czech Republic
Estonia
Hungary
Lithuania
Russia
Poland
Israel
South Africa
Turkey

Microsoft-Related Economic Impact
Microsoft-Related Employees in 2004*

C ze c h R e p
E s to n ia
H u n g a ry
L ith u a n ia
P o la n d
R u s s ia
T o ta l E E G ro u p

S e rvic e s &

IT

H a rd w a re

S o ftw a re

C h a n n e ls

P ro fe s s io n a ls

T o ta l

% T o ta l

1 ,6 8 6
510
1 ,2 4 7
854
3 ,8 0 1
7 ,9 3 7

599
209
446
287
838
656

1 2 ,6 5 1
2 ,3 6 4
8 ,9 1 0
6 ,4 0 2
2 1 ,9 7 4
3 8 ,5 1 2

3 4 ,2 2 1
3 ,0 9 1
2 5 ,9 1 3
3 ,7 1 4
7 0 ,0 1 6
1 3 1 ,2 8 6

4 9 ,1 5 7
6 ,1 7 4
3 6 ,5 1 6
1 1 ,2 5 7
9 6 ,6 3 0
1 7 8 ,3 9 1

40%
54%
41%
54%
50%
55%

1 6 ,0 3 6

3 ,0 3 5

9 0 ,8 1 4

2 6 8 ,2 4 1

3 7 8 ,1 2 5

49%

Microsoft-Related Taxes ($M)**
C zech R ep
E stonia
H ungary
Lithuania
P oland
R ussia
To tal E E G ro u p

$181
$29
$231
$26
$565
$279
$1,312

* Employees in companies that create, sell, distribute, or service hardware or software that runs on Microsoft operating systems and IT employees at user organization that develop
applications, service, or maintain such hardware or software
** Includes value-added or sales taxes, corporate income taxes, and personal income and social taxes

Source: IDC IT Economic Impact Study, 2004, 19 Countries

Economic Impact Study in Slovakia, 2003
Run by Institute of Slovak and World Economy – part
of Slovak Academy of Science
Impact of IT on economic growth
Position the Slovak IT sector in regional and global
perspectives
Compare impact of IT sector with other branches
Microsoft contribution to Slovak IT sector

Analyzes the impact made by the commercial software
model and Microsoft on the local economy
1 SK spent on purchasing of software from Microsoft would
generate a nearly 7 SK effect on the Slovak economy

Software Industry Trends in Latvia, 2004
Research conducted by Latvian Information Technology
and Telecommunication Association (LITTA)
Analyzes the business trends in software development,
service and distribution industry
Usage of commercial and open source platforms in business
and company resources invested in each of these platforms.
Assessment of economic impact of the software industry trends
on the national economy

Findings:
Commercial software model creates the highest value added
for their company - 100% of all respondents
Commercial platform is considered with lower total
development costs

IDC IT Economic Impact Study, 2005

Economic Impact of the IT Sector
in South East Europe
The research covers 6 countries:
Bulgaria
Croatia
Macedonia
Romania

Serbia and Montenegro
Slovenia

Microsoft Related Employment
Total IT
Employees
in 2004

MicrosoftRelated
Employees
in 2004*

% Total

MicrosoftRelated
Taxes
($M)**

Bulgaria

27.462

14.285

52%

$32,2

Croatia

20.044

9.365

47%

$73,0

2.894

1.613

56%

$6,6

Romania

29.251

18.995

65%

$63,7

Slovenia

18.222

8.483

47%

$109,2

Serbia & Montenegro

24.173

11.844

49%

$27

122.046

64.585

53%

$311

Macedonia

Total Group

Source: IDC IT Economic Impact Study, 2005, 6 South East European Countries

Revenues
In SEE the IT sector generates over $600 million in tax
receipts
Includes value-added or sales taxes, corporate income taxes,
and personal income and social taxes

Over $300 million of this is attributed to companies
and employees working with Microsoft products
1 : 8.5
For every dollar of Microsoft revenue in the region, another
eight and a half were generated by other companies selling
hardware or software that works on Microsoft operating
systems, or servicing that software

Source: IDC IT Economic Impact Study, 2005, 6 South East European Countries

Government
Policy
Industry
Interoperability

Security & Quality
Ongoing Relationship
Indemnification
Support

Productivity partner
Breakthroughs
Integration
Manageability

Applications
Compatibility
Hardware
Partners

© 2004 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.


Slide 13

Delivering Value to Our
Customers and Partners
Dan Bulucea
Platform Strategy Manager
Microsoft Eastern Europe

Agenda
Market Overview
Microsoft’s Commitment to Customers
Integrated Innovation Advantage
Economic Impact of IT
Why Microsoft

Market Overview
IT Industry Trends
Everyone agrees on one thing: the move
to x86
Price/performance and flexibility driving change

Focus on security
Increasing pressures to do more with less
Broad web services movement
24x7 availability essential in a global
economy

Market Overview
Market Trends
IBM want this to be all about their services
“Devalue” the platform and monopolize service
opportunities

Novell connecting the dots with strategic
acquisitions
Attempting an end-to-end platform play on Linux

Oracle supporting Linux adoption
Sun delivering strategy “du jour”
Customer demands, platform challenges, cost models

New companies developing roots in the market
(e.g., RedHat, MySQL, other Open Source
vendors)

Customers Told Us…
Customer Requirement

Microsoft Commitment

Increase economic value

Best Value

Protect my data

Stronger
Security

Reduce downtime

Reliability
and Availability

Leverage existing assets

Interoperability

Connect with customers (Revenue)
Integrate with partners (Profitability)
Empower employees (Productivity)

Integrated
Innovation

Proof Of Our Commitment To Customers
Microsoft Commitment

Best value
Stronger
Security
Reliability
and Availability
Interoperability

Integrated
Innovation
Go to www.getthefacts.com for complete reports

Third Party Validation

Best Value
Does Linux cost less to acquire?

Source: Bearing Point, Server Operating System Licensing and
Support Cost Comparison – May 2004
** Full Support indicates 24x7 support on all servers. Limited
Support indicates 24x7 support on only 10% of servers.

Best Value
Does Linux have lower TCO?

Noncommissioned Studies:

Security
OS Bulletins - 2003

An industry problem…
Companies Detecting
Security Breaches

92%
Source: 2003 Computer Security Institute survey
of 250 major US companies

…a Microsoft priority
SD3+C
Secure by:
Design
Default
Deployment
Communications

125
100
75
1
250
25
0

RedHat
Microsoft

120

87
43
2002

39
2003

Source: OS Bulletins from Vendor Web Sites

180 Days Later

57

60
45
30

32

34

14

15
0

RH8

RH9

WS00 WS03

Security
Is Linux more secure?

All Days of Risk
25

Microsoft
RedHat

57

Debian

57

128

82

Microsoft

74
0

20

40

Source: “Is Windows More Secure than Linux?”, Forrester, March 2004

60

120

86

MandrakeSoft
SUSE

162

80

100

Red Hat

Debian

Mandrake
Soft

Source: Forrester Research: http://www.forrester.com/Research/Document/
Excerpt/0,7211,33941,00.html

111

SUSE

Security
Is Linux more secure?
Common
Customer Questions

Forrester Response:
“What matters”

Forrester
Analysis

1.

“Linux distributions
say they can fix
things within just
hours, why can’t
Microsoft do that?”

“Microsoft’s average
of 25 days between disclosure & release of a
fix was the lowest of all the platform
maintainers we evaluated.”

2.

“Doesn’t Linux have
fewer bugs and
aren’t they less
severe than
Windows bugs?”

Forrester analysis shows Microsoft having
the fewest high-severity flaws of any vendor
– and 25 less than the next lowest

3.

“Isn’t open source
software better at
fixing vulnerabilities
than Microsoft?”

Forrester analysis shows Microsoft as the
only vendor to fix 100% of the flaws
discovered

Reliability
VeriTest Proof of our System Reliability

End User Pain
Average Service Loss Time
HH:MM:SS

More reliable

4:59:44
4.5

4:20:19

4

Hours

Windows prevented 4x more events
Windows detected over 2x as many issues
before the trouble ticket was received
Windows system issues (created by test
proctor) were resolved 20% faster and 8%
more successfully

5

3.5
3
2.5
2

Windows

Linux

Configuring the Environment
Total Time for Completed Tasks*

Easier to Maintain
25

20:55:13
20

Hours

Windows required approx. 50% less time to
complete directory-related tasks with Active
Directory vs. OpenLDAP
Windows tape drive and printer
configurations were completed over 2x faster
Improving system fault tolerance/redundancy
required >2x more time for Linux

HH:MM:SS

15

13:11:56

10
5
0

Windows

Linux

*21% more “proactive” tasks completed on Windows

Interoperability
Microsoft’s Approach
Enable Microsoft technology to work well with
Windows and non-Windows applications
Develop solutions based on industry standards

Provide rich services
that address key
business scenarios
Enable ISVs to
develop solutions and
solve niche needs

MS Interoperability Model

Interoperability
Developer Priorities

Interoperability is
very important

Interop

65%

48%
44%

Security
Support
0

20

40

60

80

Interoperability Prioritization

Windows
interoperability
is first priority

79%

Windows

43%

Unix
Linux

22%
0

20

40

60

80

Best Support of Interoperability

Microsoft is doing the
most to achieve
interoperability goals
Source: Jupiter research survey, 12/03

72%
63%
55%

MS
IBM

Linux
0

20

40

60

% of IT Decision Makers

80

File/Print Services
Network Access Services
Directory/Security Services
Kernel

Platform Features

MSMQ

Windows Media Services

Windows Server
Distributed File Service STS
VPN

RAS

PKI

Smart Card

Active Directory WMI Kerberos

Consistent
Interfaces

3rd Party Products

?

OpenOffice
?

?

Real or Darwin Media Server*
?

Apache
Samba
OpenLDAP
?

?

Linux Kernel

Windows Kernel
Common
Mgmt Infra

?

?

Sendmail

3rd Party Products

Mobile Info Svr

Transaction Service

JBOSS

Single
Sign-On

Customer Requirements Microsoft Platform

?

Linux Platform

**Some services not available in Linux distributions are available at additional cost from vendors such as IBM

?

Web Services

J2EE/PHP

.NET Framework IIS ASP.NET

?

Media Services

MySQL

Visual Studio.NET

Application Services

SMS 2003, MOM 2005

Programming Frameworks

SQL Server

Integrated Development Tools

Integrated Management Tools

Integrated Data Management

Office 2003

BizTalk, CS2002

MMS, ISA, AD

Exchange, SPS

Other

Mobility

Productivity

Commerce

Identity Mgmt

Collaboration

Integrated Innovation

Customer Value – Local Evidence
TZUM – Retail (Bulgaria)
TZUM switched from Linux to Windows Server 2003 for
better integration and easier management. Its new IT
infrastructure runs 30% more efficiently
Zotel – Telecommunications (Poland)
Switch from Linux to Microsoft reduces IT costs by 30%

Duna TV – Media Service Provider (Hungary)
Switch to Microsoft Exchange Server 2003 from Linux
cuts operating costs by half
Romgaz – Utility (Romania)
Evaluated Linux and OSS but chose Microsoft because of
ease-of-use, support and features
Ahold – Retail (Czech Republic)
Consolidation from Linux and Novell to Windows
infrastructure

IDC EMEA Economic Impact Study, 2004
• Update of preceding Economic Impact Model studies

• Analyzes the specific contributions of the software
sector
• This research covered 19 countries (~82% of IT
spending in EMEA):
Austria
Denmark
France
Germany
Ireland
Italy
Netherlands
Portugal
Spain
UK

Czech Republic
Estonia
Hungary
Lithuania
Russia
Poland
Israel
South Africa
Turkey

Microsoft-Related Economic Impact
Microsoft-Related Employees in 2004*

C ze c h R e p
E s to n ia
H u n g a ry
L ith u a n ia
P o la n d
R u s s ia
T o ta l E E G ro u p

S e rvic e s &

IT

H a rd w a re

S o ftw a re

C h a n n e ls

P ro fe s s io n a ls

T o ta l

% T o ta l

1 ,6 8 6
510
1 ,2 4 7
854
3 ,8 0 1
7 ,9 3 7

599
209
446
287
838
656

1 2 ,6 5 1
2 ,3 6 4
8 ,9 1 0
6 ,4 0 2
2 1 ,9 7 4
3 8 ,5 1 2

3 4 ,2 2 1
3 ,0 9 1
2 5 ,9 1 3
3 ,7 1 4
7 0 ,0 1 6
1 3 1 ,2 8 6

4 9 ,1 5 7
6 ,1 7 4
3 6 ,5 1 6
1 1 ,2 5 7
9 6 ,6 3 0
1 7 8 ,3 9 1

40%
54%
41%
54%
50%
55%

1 6 ,0 3 6

3 ,0 3 5

9 0 ,8 1 4

2 6 8 ,2 4 1

3 7 8 ,1 2 5

49%

Microsoft-Related Taxes ($M)**
C zech R ep
E stonia
H ungary
Lithuania
P oland
R ussia
To tal E E G ro u p

$181
$29
$231
$26
$565
$279
$1,312

* Employees in companies that create, sell, distribute, or service hardware or software that runs on Microsoft operating systems and IT employees at user organization that develop
applications, service, or maintain such hardware or software
** Includes value-added or sales taxes, corporate income taxes, and personal income and social taxes

Source: IDC IT Economic Impact Study, 2004, 19 Countries

Economic Impact Study in Slovakia, 2003
Run by Institute of Slovak and World Economy – part
of Slovak Academy of Science
Impact of IT on economic growth
Position the Slovak IT sector in regional and global
perspectives
Compare impact of IT sector with other branches
Microsoft contribution to Slovak IT sector

Analyzes the impact made by the commercial software
model and Microsoft on the local economy
1 SK spent on purchasing of software from Microsoft would
generate a nearly 7 SK effect on the Slovak economy

Software Industry Trends in Latvia, 2004
Research conducted by Latvian Information Technology
and Telecommunication Association (LITTA)
Analyzes the business trends in software development,
service and distribution industry
Usage of commercial and open source platforms in business
and company resources invested in each of these platforms.
Assessment of economic impact of the software industry trends
on the national economy

Findings:
Commercial software model creates the highest value added
for their company - 100% of all respondents
Commercial platform is considered with lower total
development costs

IDC IT Economic Impact Study, 2005

Economic Impact of the IT Sector
in South East Europe
The research covers 6 countries:
Bulgaria
Croatia
Macedonia
Romania

Serbia and Montenegro
Slovenia

Microsoft Related Employment
Total IT
Employees
in 2004

MicrosoftRelated
Employees
in 2004*

% Total

MicrosoftRelated
Taxes
($M)**

Bulgaria

27.462

14.285

52%

$32,2

Croatia

20.044

9.365

47%

$73,0

2.894

1.613

56%

$6,6

Romania

29.251

18.995

65%

$63,7

Slovenia

18.222

8.483

47%

$109,2

Serbia & Montenegro

24.173

11.844

49%

$27

122.046

64.585

53%

$311

Macedonia

Total Group

Source: IDC IT Economic Impact Study, 2005, 6 South East European Countries

Revenues
In SEE the IT sector generates over $600 million in tax
receipts
Includes value-added or sales taxes, corporate income taxes,
and personal income and social taxes

Over $300 million of this is attributed to companies
and employees working with Microsoft products
1 : 8.5
For every dollar of Microsoft revenue in the region, another
eight and a half were generated by other companies selling
hardware or software that works on Microsoft operating
systems, or servicing that software

Source: IDC IT Economic Impact Study, 2005, 6 South East European Countries

Government
Policy
Industry
Interoperability

Security & Quality
Ongoing Relationship
Indemnification
Support

Productivity partner
Breakthroughs
Integration
Manageability

Applications
Compatibility
Hardware
Partners

© 2004 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.


Slide 14

Delivering Value to Our
Customers and Partners
Dan Bulucea
Platform Strategy Manager
Microsoft Eastern Europe

Agenda
Market Overview
Microsoft’s Commitment to Customers
Integrated Innovation Advantage
Economic Impact of IT
Why Microsoft

Market Overview
IT Industry Trends
Everyone agrees on one thing: the move
to x86
Price/performance and flexibility driving change

Focus on security
Increasing pressures to do more with less
Broad web services movement
24x7 availability essential in a global
economy

Market Overview
Market Trends
IBM want this to be all about their services
“Devalue” the platform and monopolize service
opportunities

Novell connecting the dots with strategic
acquisitions
Attempting an end-to-end platform play on Linux

Oracle supporting Linux adoption
Sun delivering strategy “du jour”
Customer demands, platform challenges, cost models

New companies developing roots in the market
(e.g., RedHat, MySQL, other Open Source
vendors)

Customers Told Us…
Customer Requirement

Microsoft Commitment

Increase economic value

Best Value

Protect my data

Stronger
Security

Reduce downtime

Reliability
and Availability

Leverage existing assets

Interoperability

Connect with customers (Revenue)
Integrate with partners (Profitability)
Empower employees (Productivity)

Integrated
Innovation

Proof Of Our Commitment To Customers
Microsoft Commitment

Best value
Stronger
Security
Reliability
and Availability
Interoperability

Integrated
Innovation
Go to www.getthefacts.com for complete reports

Third Party Validation

Best Value
Does Linux cost less to acquire?

Source: Bearing Point, Server Operating System Licensing and
Support Cost Comparison – May 2004
** Full Support indicates 24x7 support on all servers. Limited
Support indicates 24x7 support on only 10% of servers.

Best Value
Does Linux have lower TCO?

Noncommissioned Studies:

Security
OS Bulletins - 2003

An industry problem…
Companies Detecting
Security Breaches

92%
Source: 2003 Computer Security Institute survey
of 250 major US companies

…a Microsoft priority
SD3+C
Secure by:
Design
Default
Deployment
Communications

125
100
75
1
250
25
0

RedHat
Microsoft

120

87
43
2002

39
2003

Source: OS Bulletins from Vendor Web Sites

180 Days Later

57

60
45
30

32

34

14

15
0

RH8

RH9

WS00 WS03

Security
Is Linux more secure?

All Days of Risk
25

Microsoft
RedHat

57

Debian

57

128

82

Microsoft

74
0

20

40

Source: “Is Windows More Secure than Linux?”, Forrester, March 2004

60

120

86

MandrakeSoft
SUSE

162

80

100

Red Hat

Debian

Mandrake
Soft

Source: Forrester Research: http://www.forrester.com/Research/Document/
Excerpt/0,7211,33941,00.html

111

SUSE

Security
Is Linux more secure?
Common
Customer Questions

Forrester Response:
“What matters”

Forrester
Analysis

1.

“Linux distributions
say they can fix
things within just
hours, why can’t
Microsoft do that?”

“Microsoft’s average
of 25 days between disclosure & release of a
fix was the lowest of all the platform
maintainers we evaluated.”

2.

“Doesn’t Linux have
fewer bugs and
aren’t they less
severe than
Windows bugs?”

Forrester analysis shows Microsoft having
the fewest high-severity flaws of any vendor
– and 25 less than the next lowest

3.

“Isn’t open source
software better at
fixing vulnerabilities
than Microsoft?”

Forrester analysis shows Microsoft as the
only vendor to fix 100% of the flaws
discovered

Reliability
VeriTest Proof of our System Reliability

End User Pain
Average Service Loss Time
HH:MM:SS

More reliable

4:59:44
4.5

4:20:19

4

Hours

Windows prevented 4x more events
Windows detected over 2x as many issues
before the trouble ticket was received
Windows system issues (created by test
proctor) were resolved 20% faster and 8%
more successfully

5

3.5
3
2.5
2

Windows

Linux

Configuring the Environment
Total Time for Completed Tasks*

Easier to Maintain
25

20:55:13
20

Hours

Windows required approx. 50% less time to
complete directory-related tasks with Active
Directory vs. OpenLDAP
Windows tape drive and printer
configurations were completed over 2x faster
Improving system fault tolerance/redundancy
required >2x more time for Linux

HH:MM:SS

15

13:11:56

10
5
0

Windows

Linux

*21% more “proactive” tasks completed on Windows

Interoperability
Microsoft’s Approach
Enable Microsoft technology to work well with
Windows and non-Windows applications
Develop solutions based on industry standards

Provide rich services
that address key
business scenarios
Enable ISVs to
develop solutions and
solve niche needs

MS Interoperability Model

Interoperability
Developer Priorities

Interoperability is
very important

Interop

65%

48%
44%

Security
Support
0

20

40

60

80

Interoperability Prioritization

Windows
interoperability
is first priority

79%

Windows

43%

Unix
Linux

22%
0

20

40

60

80

Best Support of Interoperability

Microsoft is doing the
most to achieve
interoperability goals
Source: Jupiter research survey, 12/03

72%
63%
55%

MS
IBM

Linux
0

20

40

60

% of IT Decision Makers

80

File/Print Services
Network Access Services
Directory/Security Services
Kernel

Platform Features

MSMQ

Windows Media Services

Windows Server
Distributed File Service STS
VPN

RAS

PKI

Smart Card

Active Directory WMI Kerberos

Consistent
Interfaces

3rd Party Products

?

OpenOffice
?

?

Real or Darwin Media Server*
?

Apache
Samba
OpenLDAP
?

?

Linux Kernel

Windows Kernel
Common
Mgmt Infra

?

?

Sendmail

3rd Party Products

Mobile Info Svr

Transaction Service

JBOSS

Single
Sign-On

Customer Requirements Microsoft Platform

?

Linux Platform

**Some services not available in Linux distributions are available at additional cost from vendors such as IBM

?

Web Services

J2EE/PHP

.NET Framework IIS ASP.NET

?

Media Services

MySQL

Visual Studio.NET

Application Services

SMS 2003, MOM 2005

Programming Frameworks

SQL Server

Integrated Development Tools

Integrated Management Tools

Integrated Data Management

Office 2003

BizTalk, CS2002

MMS, ISA, AD

Exchange, SPS

Other

Mobility

Productivity

Commerce

Identity Mgmt

Collaboration

Integrated Innovation

Customer Value – Local Evidence
TZUM – Retail (Bulgaria)
TZUM switched from Linux to Windows Server 2003 for
better integration and easier management. Its new IT
infrastructure runs 30% more efficiently
Zotel – Telecommunications (Poland)
Switch from Linux to Microsoft reduces IT costs by 30%

Duna TV – Media Service Provider (Hungary)
Switch to Microsoft Exchange Server 2003 from Linux
cuts operating costs by half
Romgaz – Utility (Romania)
Evaluated Linux and OSS but chose Microsoft because of
ease-of-use, support and features
Ahold – Retail (Czech Republic)
Consolidation from Linux and Novell to Windows
infrastructure

IDC EMEA Economic Impact Study, 2004
• Update of preceding Economic Impact Model studies

• Analyzes the specific contributions of the software
sector
• This research covered 19 countries (~82% of IT
spending in EMEA):
Austria
Denmark
France
Germany
Ireland
Italy
Netherlands
Portugal
Spain
UK

Czech Republic
Estonia
Hungary
Lithuania
Russia
Poland
Israel
South Africa
Turkey

Microsoft-Related Economic Impact
Microsoft-Related Employees in 2004*

C ze c h R e p
E s to n ia
H u n g a ry
L ith u a n ia
P o la n d
R u s s ia
T o ta l E E G ro u p

S e rvic e s &

IT

H a rd w a re

S o ftw a re

C h a n n e ls

P ro fe s s io n a ls

T o ta l

% T o ta l

1 ,6 8 6
510
1 ,2 4 7
854
3 ,8 0 1
7 ,9 3 7

599
209
446
287
838
656

1 2 ,6 5 1
2 ,3 6 4
8 ,9 1 0
6 ,4 0 2
2 1 ,9 7 4
3 8 ,5 1 2

3 4 ,2 2 1
3 ,0 9 1
2 5 ,9 1 3
3 ,7 1 4
7 0 ,0 1 6
1 3 1 ,2 8 6

4 9 ,1 5 7
6 ,1 7 4
3 6 ,5 1 6
1 1 ,2 5 7
9 6 ,6 3 0
1 7 8 ,3 9 1

40%
54%
41%
54%
50%
55%

1 6 ,0 3 6

3 ,0 3 5

9 0 ,8 1 4

2 6 8 ,2 4 1

3 7 8 ,1 2 5

49%

Microsoft-Related Taxes ($M)**
C zech R ep
E stonia
H ungary
Lithuania
P oland
R ussia
To tal E E G ro u p

$181
$29
$231
$26
$565
$279
$1,312

* Employees in companies that create, sell, distribute, or service hardware or software that runs on Microsoft operating systems and IT employees at user organization that develop
applications, service, or maintain such hardware or software
** Includes value-added or sales taxes, corporate income taxes, and personal income and social taxes

Source: IDC IT Economic Impact Study, 2004, 19 Countries

Economic Impact Study in Slovakia, 2003
Run by Institute of Slovak and World Economy – part
of Slovak Academy of Science
Impact of IT on economic growth
Position the Slovak IT sector in regional and global
perspectives
Compare impact of IT sector with other branches
Microsoft contribution to Slovak IT sector

Analyzes the impact made by the commercial software
model and Microsoft on the local economy
1 SK spent on purchasing of software from Microsoft would
generate a nearly 7 SK effect on the Slovak economy

Software Industry Trends in Latvia, 2004
Research conducted by Latvian Information Technology
and Telecommunication Association (LITTA)
Analyzes the business trends in software development,
service and distribution industry
Usage of commercial and open source platforms in business
and company resources invested in each of these platforms.
Assessment of economic impact of the software industry trends
on the national economy

Findings:
Commercial software model creates the highest value added
for their company - 100% of all respondents
Commercial platform is considered with lower total
development costs

IDC IT Economic Impact Study, 2005

Economic Impact of the IT Sector
in South East Europe
The research covers 6 countries:
Bulgaria
Croatia
Macedonia
Romania

Serbia and Montenegro
Slovenia

Microsoft Related Employment
Total IT
Employees
in 2004

MicrosoftRelated
Employees
in 2004*

% Total

MicrosoftRelated
Taxes
($M)**

Bulgaria

27.462

14.285

52%

$32,2

Croatia

20.044

9.365

47%

$73,0

2.894

1.613

56%

$6,6

Romania

29.251

18.995

65%

$63,7

Slovenia

18.222

8.483

47%

$109,2

Serbia & Montenegro

24.173

11.844

49%

$27

122.046

64.585

53%

$311

Macedonia

Total Group

Source: IDC IT Economic Impact Study, 2005, 6 South East European Countries

Revenues
In SEE the IT sector generates over $600 million in tax
receipts
Includes value-added or sales taxes, corporate income taxes,
and personal income and social taxes

Over $300 million of this is attributed to companies
and employees working with Microsoft products
1 : 8.5
For every dollar of Microsoft revenue in the region, another
eight and a half were generated by other companies selling
hardware or software that works on Microsoft operating
systems, or servicing that software

Source: IDC IT Economic Impact Study, 2005, 6 South East European Countries

Government
Policy
Industry
Interoperability

Security & Quality
Ongoing Relationship
Indemnification
Support

Productivity partner
Breakthroughs
Integration
Manageability

Applications
Compatibility
Hardware
Partners

© 2004 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.


Slide 15

Delivering Value to Our
Customers and Partners
Dan Bulucea
Platform Strategy Manager
Microsoft Eastern Europe

Agenda
Market Overview
Microsoft’s Commitment to Customers
Integrated Innovation Advantage
Economic Impact of IT
Why Microsoft

Market Overview
IT Industry Trends
Everyone agrees on one thing: the move
to x86
Price/performance and flexibility driving change

Focus on security
Increasing pressures to do more with less
Broad web services movement
24x7 availability essential in a global
economy

Market Overview
Market Trends
IBM want this to be all about their services
“Devalue” the platform and monopolize service
opportunities

Novell connecting the dots with strategic
acquisitions
Attempting an end-to-end platform play on Linux

Oracle supporting Linux adoption
Sun delivering strategy “du jour”
Customer demands, platform challenges, cost models

New companies developing roots in the market
(e.g., RedHat, MySQL, other Open Source
vendors)

Customers Told Us…
Customer Requirement

Microsoft Commitment

Increase economic value

Best Value

Protect my data

Stronger
Security

Reduce downtime

Reliability
and Availability

Leverage existing assets

Interoperability

Connect with customers (Revenue)
Integrate with partners (Profitability)
Empower employees (Productivity)

Integrated
Innovation

Proof Of Our Commitment To Customers
Microsoft Commitment

Best value
Stronger
Security
Reliability
and Availability
Interoperability

Integrated
Innovation
Go to www.getthefacts.com for complete reports

Third Party Validation

Best Value
Does Linux cost less to acquire?

Source: Bearing Point, Server Operating System Licensing and
Support Cost Comparison – May 2004
** Full Support indicates 24x7 support on all servers. Limited
Support indicates 24x7 support on only 10% of servers.

Best Value
Does Linux have lower TCO?

Noncommissioned Studies:

Security
OS Bulletins - 2003

An industry problem…
Companies Detecting
Security Breaches

92%
Source: 2003 Computer Security Institute survey
of 250 major US companies

…a Microsoft priority
SD3+C
Secure by:
Design
Default
Deployment
Communications

125
100
75
1
250
25
0

RedHat
Microsoft

120

87
43
2002

39
2003

Source: OS Bulletins from Vendor Web Sites

180 Days Later

57

60
45
30

32

34

14

15
0

RH8

RH9

WS00 WS03

Security
Is Linux more secure?

All Days of Risk
25

Microsoft
RedHat

57

Debian

57

128

82

Microsoft

74
0

20

40

Source: “Is Windows More Secure than Linux?”, Forrester, March 2004

60

120

86

MandrakeSoft
SUSE

162

80

100

Red Hat

Debian

Mandrake
Soft

Source: Forrester Research: http://www.forrester.com/Research/Document/
Excerpt/0,7211,33941,00.html

111

SUSE

Security
Is Linux more secure?
Common
Customer Questions

Forrester Response:
“What matters”

Forrester
Analysis

1.

“Linux distributions
say they can fix
things within just
hours, why can’t
Microsoft do that?”

“Microsoft’s average
of 25 days between disclosure & release of a
fix was the lowest of all the platform
maintainers we evaluated.”

2.

“Doesn’t Linux have
fewer bugs and
aren’t they less
severe than
Windows bugs?”

Forrester analysis shows Microsoft having
the fewest high-severity flaws of any vendor
– and 25 less than the next lowest

3.

“Isn’t open source
software better at
fixing vulnerabilities
than Microsoft?”

Forrester analysis shows Microsoft as the
only vendor to fix 100% of the flaws
discovered

Reliability
VeriTest Proof of our System Reliability

End User Pain
Average Service Loss Time
HH:MM:SS

More reliable

4:59:44
4.5

4:20:19

4

Hours

Windows prevented 4x more events
Windows detected over 2x as many issues
before the trouble ticket was received
Windows system issues (created by test
proctor) were resolved 20% faster and 8%
more successfully

5

3.5
3
2.5
2

Windows

Linux

Configuring the Environment
Total Time for Completed Tasks*

Easier to Maintain
25

20:55:13
20

Hours

Windows required approx. 50% less time to
complete directory-related tasks with Active
Directory vs. OpenLDAP
Windows tape drive and printer
configurations were completed over 2x faster
Improving system fault tolerance/redundancy
required >2x more time for Linux

HH:MM:SS

15

13:11:56

10
5
0

Windows

Linux

*21% more “proactive” tasks completed on Windows

Interoperability
Microsoft’s Approach
Enable Microsoft technology to work well with
Windows and non-Windows applications
Develop solutions based on industry standards

Provide rich services
that address key
business scenarios
Enable ISVs to
develop solutions and
solve niche needs

MS Interoperability Model

Interoperability
Developer Priorities

Interoperability is
very important

Interop

65%

48%
44%

Security
Support
0

20

40

60

80

Interoperability Prioritization

Windows
interoperability
is first priority

79%

Windows

43%

Unix
Linux

22%
0

20

40

60

80

Best Support of Interoperability

Microsoft is doing the
most to achieve
interoperability goals
Source: Jupiter research survey, 12/03

72%
63%
55%

MS
IBM

Linux
0

20

40

60

% of IT Decision Makers

80

File/Print Services
Network Access Services
Directory/Security Services
Kernel

Platform Features

MSMQ

Windows Media Services

Windows Server
Distributed File Service STS
VPN

RAS

PKI

Smart Card

Active Directory WMI Kerberos

Consistent
Interfaces

3rd Party Products

?

OpenOffice
?

?

Real or Darwin Media Server*
?

Apache
Samba
OpenLDAP
?

?

Linux Kernel

Windows Kernel
Common
Mgmt Infra

?

?

Sendmail

3rd Party Products

Mobile Info Svr

Transaction Service

JBOSS

Single
Sign-On

Customer Requirements Microsoft Platform

?

Linux Platform

**Some services not available in Linux distributions are available at additional cost from vendors such as IBM

?

Web Services

J2EE/PHP

.NET Framework IIS ASP.NET

?

Media Services

MySQL

Visual Studio.NET

Application Services

SMS 2003, MOM 2005

Programming Frameworks

SQL Server

Integrated Development Tools

Integrated Management Tools

Integrated Data Management

Office 2003

BizTalk, CS2002

MMS, ISA, AD

Exchange, SPS

Other

Mobility

Productivity

Commerce

Identity Mgmt

Collaboration

Integrated Innovation

Customer Value – Local Evidence
TZUM – Retail (Bulgaria)
TZUM switched from Linux to Windows Server 2003 for
better integration and easier management. Its new IT
infrastructure runs 30% more efficiently
Zotel – Telecommunications (Poland)
Switch from Linux to Microsoft reduces IT costs by 30%

Duna TV – Media Service Provider (Hungary)
Switch to Microsoft Exchange Server 2003 from Linux
cuts operating costs by half
Romgaz – Utility (Romania)
Evaluated Linux and OSS but chose Microsoft because of
ease-of-use, support and features
Ahold – Retail (Czech Republic)
Consolidation from Linux and Novell to Windows
infrastructure

IDC EMEA Economic Impact Study, 2004
• Update of preceding Economic Impact Model studies

• Analyzes the specific contributions of the software
sector
• This research covered 19 countries (~82% of IT
spending in EMEA):
Austria
Denmark
France
Germany
Ireland
Italy
Netherlands
Portugal
Spain
UK

Czech Republic
Estonia
Hungary
Lithuania
Russia
Poland
Israel
South Africa
Turkey

Microsoft-Related Economic Impact
Microsoft-Related Employees in 2004*

C ze c h R e p
E s to n ia
H u n g a ry
L ith u a n ia
P o la n d
R u s s ia
T o ta l E E G ro u p

S e rvic e s &

IT

H a rd w a re

S o ftw a re

C h a n n e ls

P ro fe s s io n a ls

T o ta l

% T o ta l

1 ,6 8 6
510
1 ,2 4 7
854
3 ,8 0 1
7 ,9 3 7

599
209
446
287
838
656

1 2 ,6 5 1
2 ,3 6 4
8 ,9 1 0
6 ,4 0 2
2 1 ,9 7 4
3 8 ,5 1 2

3 4 ,2 2 1
3 ,0 9 1
2 5 ,9 1 3
3 ,7 1 4
7 0 ,0 1 6
1 3 1 ,2 8 6

4 9 ,1 5 7
6 ,1 7 4
3 6 ,5 1 6
1 1 ,2 5 7
9 6 ,6 3 0
1 7 8 ,3 9 1

40%
54%
41%
54%
50%
55%

1 6 ,0 3 6

3 ,0 3 5

9 0 ,8 1 4

2 6 8 ,2 4 1

3 7 8 ,1 2 5

49%

Microsoft-Related Taxes ($M)**
C zech R ep
E stonia
H ungary
Lithuania
P oland
R ussia
To tal E E G ro u p

$181
$29
$231
$26
$565
$279
$1,312

* Employees in companies that create, sell, distribute, or service hardware or software that runs on Microsoft operating systems and IT employees at user organization that develop
applications, service, or maintain such hardware or software
** Includes value-added or sales taxes, corporate income taxes, and personal income and social taxes

Source: IDC IT Economic Impact Study, 2004, 19 Countries

Economic Impact Study in Slovakia, 2003
Run by Institute of Slovak and World Economy – part
of Slovak Academy of Science
Impact of IT on economic growth
Position the Slovak IT sector in regional and global
perspectives
Compare impact of IT sector with other branches
Microsoft contribution to Slovak IT sector

Analyzes the impact made by the commercial software
model and Microsoft on the local economy
1 SK spent on purchasing of software from Microsoft would
generate a nearly 7 SK effect on the Slovak economy

Software Industry Trends in Latvia, 2004
Research conducted by Latvian Information Technology
and Telecommunication Association (LITTA)
Analyzes the business trends in software development,
service and distribution industry
Usage of commercial and open source platforms in business
and company resources invested in each of these platforms.
Assessment of economic impact of the software industry trends
on the national economy

Findings:
Commercial software model creates the highest value added
for their company - 100% of all respondents
Commercial platform is considered with lower total
development costs

IDC IT Economic Impact Study, 2005

Economic Impact of the IT Sector
in South East Europe
The research covers 6 countries:
Bulgaria
Croatia
Macedonia
Romania

Serbia and Montenegro
Slovenia

Microsoft Related Employment
Total IT
Employees
in 2004

MicrosoftRelated
Employees
in 2004*

% Total

MicrosoftRelated
Taxes
($M)**

Bulgaria

27.462

14.285

52%

$32,2

Croatia

20.044

9.365

47%

$73,0

2.894

1.613

56%

$6,6

Romania

29.251

18.995

65%

$63,7

Slovenia

18.222

8.483

47%

$109,2

Serbia & Montenegro

24.173

11.844

49%

$27

122.046

64.585

53%

$311

Macedonia

Total Group

Source: IDC IT Economic Impact Study, 2005, 6 South East European Countries

Revenues
In SEE the IT sector generates over $600 million in tax
receipts
Includes value-added or sales taxes, corporate income taxes,
and personal income and social taxes

Over $300 million of this is attributed to companies
and employees working with Microsoft products
1 : 8.5
For every dollar of Microsoft revenue in the region, another
eight and a half were generated by other companies selling
hardware or software that works on Microsoft operating
systems, or servicing that software

Source: IDC IT Economic Impact Study, 2005, 6 South East European Countries

Government
Policy
Industry
Interoperability

Security & Quality
Ongoing Relationship
Indemnification
Support

Productivity partner
Breakthroughs
Integration
Manageability

Applications
Compatibility
Hardware
Partners

© 2004 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.


Slide 16

Delivering Value to Our
Customers and Partners
Dan Bulucea
Platform Strategy Manager
Microsoft Eastern Europe

Agenda
Market Overview
Microsoft’s Commitment to Customers
Integrated Innovation Advantage
Economic Impact of IT
Why Microsoft

Market Overview
IT Industry Trends
Everyone agrees on one thing: the move
to x86
Price/performance and flexibility driving change

Focus on security
Increasing pressures to do more with less
Broad web services movement
24x7 availability essential in a global
economy

Market Overview
Market Trends
IBM want this to be all about their services
“Devalue” the platform and monopolize service
opportunities

Novell connecting the dots with strategic
acquisitions
Attempting an end-to-end platform play on Linux

Oracle supporting Linux adoption
Sun delivering strategy “du jour”
Customer demands, platform challenges, cost models

New companies developing roots in the market
(e.g., RedHat, MySQL, other Open Source
vendors)

Customers Told Us…
Customer Requirement

Microsoft Commitment

Increase economic value

Best Value

Protect my data

Stronger
Security

Reduce downtime

Reliability
and Availability

Leverage existing assets

Interoperability

Connect with customers (Revenue)
Integrate with partners (Profitability)
Empower employees (Productivity)

Integrated
Innovation

Proof Of Our Commitment To Customers
Microsoft Commitment

Best value
Stronger
Security
Reliability
and Availability
Interoperability

Integrated
Innovation
Go to www.getthefacts.com for complete reports

Third Party Validation

Best Value
Does Linux cost less to acquire?

Source: Bearing Point, Server Operating System Licensing and
Support Cost Comparison – May 2004
** Full Support indicates 24x7 support on all servers. Limited
Support indicates 24x7 support on only 10% of servers.

Best Value
Does Linux have lower TCO?

Noncommissioned Studies:

Security
OS Bulletins - 2003

An industry problem…
Companies Detecting
Security Breaches

92%
Source: 2003 Computer Security Institute survey
of 250 major US companies

…a Microsoft priority
SD3+C
Secure by:
Design
Default
Deployment
Communications

125
100
75
1
250
25
0

RedHat
Microsoft

120

87
43
2002

39
2003

Source: OS Bulletins from Vendor Web Sites

180 Days Later

57

60
45
30

32

34

14

15
0

RH8

RH9

WS00 WS03

Security
Is Linux more secure?

All Days of Risk
25

Microsoft
RedHat

57

Debian

57

128

82

Microsoft

74
0

20

40

Source: “Is Windows More Secure than Linux?”, Forrester, March 2004

60

120

86

MandrakeSoft
SUSE

162

80

100

Red Hat

Debian

Mandrake
Soft

Source: Forrester Research: http://www.forrester.com/Research/Document/
Excerpt/0,7211,33941,00.html

111

SUSE

Security
Is Linux more secure?
Common
Customer Questions

Forrester Response:
“What matters”

Forrester
Analysis

1.

“Linux distributions
say they can fix
things within just
hours, why can’t
Microsoft do that?”

“Microsoft’s average
of 25 days between disclosure & release of a
fix was the lowest of all the platform
maintainers we evaluated.”

2.

“Doesn’t Linux have
fewer bugs and
aren’t they less
severe than
Windows bugs?”

Forrester analysis shows Microsoft having
the fewest high-severity flaws of any vendor
– and 25 less than the next lowest

3.

“Isn’t open source
software better at
fixing vulnerabilities
than Microsoft?”

Forrester analysis shows Microsoft as the
only vendor to fix 100% of the flaws
discovered

Reliability
VeriTest Proof of our System Reliability

End User Pain
Average Service Loss Time
HH:MM:SS

More reliable

4:59:44
4.5

4:20:19

4

Hours

Windows prevented 4x more events
Windows detected over 2x as many issues
before the trouble ticket was received
Windows system issues (created by test
proctor) were resolved 20% faster and 8%
more successfully

5

3.5
3
2.5
2

Windows

Linux

Configuring the Environment
Total Time for Completed Tasks*

Easier to Maintain
25

20:55:13
20

Hours

Windows required approx. 50% less time to
complete directory-related tasks with Active
Directory vs. OpenLDAP
Windows tape drive and printer
configurations were completed over 2x faster
Improving system fault tolerance/redundancy
required >2x more time for Linux

HH:MM:SS

15

13:11:56

10
5
0

Windows

Linux

*21% more “proactive” tasks completed on Windows

Interoperability
Microsoft’s Approach
Enable Microsoft technology to work well with
Windows and non-Windows applications
Develop solutions based on industry standards

Provide rich services
that address key
business scenarios
Enable ISVs to
develop solutions and
solve niche needs

MS Interoperability Model

Interoperability
Developer Priorities

Interoperability is
very important

Interop

65%

48%
44%

Security
Support
0

20

40

60

80

Interoperability Prioritization

Windows
interoperability
is first priority

79%

Windows

43%

Unix
Linux

22%
0

20

40

60

80

Best Support of Interoperability

Microsoft is doing the
most to achieve
interoperability goals
Source: Jupiter research survey, 12/03

72%
63%
55%

MS
IBM

Linux
0

20

40

60

% of IT Decision Makers

80

File/Print Services
Network Access Services
Directory/Security Services
Kernel

Platform Features

MSMQ

Windows Media Services

Windows Server
Distributed File Service STS
VPN

RAS

PKI

Smart Card

Active Directory WMI Kerberos

Consistent
Interfaces

3rd Party Products

?

OpenOffice
?

?

Real or Darwin Media Server*
?

Apache
Samba
OpenLDAP
?

?

Linux Kernel

Windows Kernel
Common
Mgmt Infra

?

?

Sendmail

3rd Party Products

Mobile Info Svr

Transaction Service

JBOSS

Single
Sign-On

Customer Requirements Microsoft Platform

?

Linux Platform

**Some services not available in Linux distributions are available at additional cost from vendors such as IBM

?

Web Services

J2EE/PHP

.NET Framework IIS ASP.NET

?

Media Services

MySQL

Visual Studio.NET

Application Services

SMS 2003, MOM 2005

Programming Frameworks

SQL Server

Integrated Development Tools

Integrated Management Tools

Integrated Data Management

Office 2003

BizTalk, CS2002

MMS, ISA, AD

Exchange, SPS

Other

Mobility

Productivity

Commerce

Identity Mgmt

Collaboration

Integrated Innovation

Customer Value – Local Evidence
TZUM – Retail (Bulgaria)
TZUM switched from Linux to Windows Server 2003 for
better integration and easier management. Its new IT
infrastructure runs 30% more efficiently
Zotel – Telecommunications (Poland)
Switch from Linux to Microsoft reduces IT costs by 30%

Duna TV – Media Service Provider (Hungary)
Switch to Microsoft Exchange Server 2003 from Linux
cuts operating costs by half
Romgaz – Utility (Romania)
Evaluated Linux and OSS but chose Microsoft because of
ease-of-use, support and features
Ahold – Retail (Czech Republic)
Consolidation from Linux and Novell to Windows
infrastructure

IDC EMEA Economic Impact Study, 2004
• Update of preceding Economic Impact Model studies

• Analyzes the specific contributions of the software
sector
• This research covered 19 countries (~82% of IT
spending in EMEA):
Austria
Denmark
France
Germany
Ireland
Italy
Netherlands
Portugal
Spain
UK

Czech Republic
Estonia
Hungary
Lithuania
Russia
Poland
Israel
South Africa
Turkey

Microsoft-Related Economic Impact
Microsoft-Related Employees in 2004*

C ze c h R e p
E s to n ia
H u n g a ry
L ith u a n ia
P o la n d
R u s s ia
T o ta l E E G ro u p

S e rvic e s &

IT

H a rd w a re

S o ftw a re

C h a n n e ls

P ro fe s s io n a ls

T o ta l

% T o ta l

1 ,6 8 6
510
1 ,2 4 7
854
3 ,8 0 1
7 ,9 3 7

599
209
446
287
838
656

1 2 ,6 5 1
2 ,3 6 4
8 ,9 1 0
6 ,4 0 2
2 1 ,9 7 4
3 8 ,5 1 2

3 4 ,2 2 1
3 ,0 9 1
2 5 ,9 1 3
3 ,7 1 4
7 0 ,0 1 6
1 3 1 ,2 8 6

4 9 ,1 5 7
6 ,1 7 4
3 6 ,5 1 6
1 1 ,2 5 7
9 6 ,6 3 0
1 7 8 ,3 9 1

40%
54%
41%
54%
50%
55%

1 6 ,0 3 6

3 ,0 3 5

9 0 ,8 1 4

2 6 8 ,2 4 1

3 7 8 ,1 2 5

49%

Microsoft-Related Taxes ($M)**
C zech R ep
E stonia
H ungary
Lithuania
P oland
R ussia
To tal E E G ro u p

$181
$29
$231
$26
$565
$279
$1,312

* Employees in companies that create, sell, distribute, or service hardware or software that runs on Microsoft operating systems and IT employees at user organization that develop
applications, service, or maintain such hardware or software
** Includes value-added or sales taxes, corporate income taxes, and personal income and social taxes

Source: IDC IT Economic Impact Study, 2004, 19 Countries

Economic Impact Study in Slovakia, 2003
Run by Institute of Slovak and World Economy – part
of Slovak Academy of Science
Impact of IT on economic growth
Position the Slovak IT sector in regional and global
perspectives
Compare impact of IT sector with other branches
Microsoft contribution to Slovak IT sector

Analyzes the impact made by the commercial software
model and Microsoft on the local economy
1 SK spent on purchasing of software from Microsoft would
generate a nearly 7 SK effect on the Slovak economy

Software Industry Trends in Latvia, 2004
Research conducted by Latvian Information Technology
and Telecommunication Association (LITTA)
Analyzes the business trends in software development,
service and distribution industry
Usage of commercial and open source platforms in business
and company resources invested in each of these platforms.
Assessment of economic impact of the software industry trends
on the national economy

Findings:
Commercial software model creates the highest value added
for their company - 100% of all respondents
Commercial platform is considered with lower total
development costs

IDC IT Economic Impact Study, 2005

Economic Impact of the IT Sector
in South East Europe
The research covers 6 countries:
Bulgaria
Croatia
Macedonia
Romania

Serbia and Montenegro
Slovenia

Microsoft Related Employment
Total IT
Employees
in 2004

MicrosoftRelated
Employees
in 2004*

% Total

MicrosoftRelated
Taxes
($M)**

Bulgaria

27.462

14.285

52%

$32,2

Croatia

20.044

9.365

47%

$73,0

2.894

1.613

56%

$6,6

Romania

29.251

18.995

65%

$63,7

Slovenia

18.222

8.483

47%

$109,2

Serbia & Montenegro

24.173

11.844

49%

$27

122.046

64.585

53%

$311

Macedonia

Total Group

Source: IDC IT Economic Impact Study, 2005, 6 South East European Countries

Revenues
In SEE the IT sector generates over $600 million in tax
receipts
Includes value-added or sales taxes, corporate income taxes,
and personal income and social taxes

Over $300 million of this is attributed to companies
and employees working with Microsoft products
1 : 8.5
For every dollar of Microsoft revenue in the region, another
eight and a half were generated by other companies selling
hardware or software that works on Microsoft operating
systems, or servicing that software

Source: IDC IT Economic Impact Study, 2005, 6 South East European Countries

Government
Policy
Industry
Interoperability

Security & Quality
Ongoing Relationship
Indemnification
Support

Productivity partner
Breakthroughs
Integration
Manageability

Applications
Compatibility
Hardware
Partners

© 2004 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.


Slide 17

Delivering Value to Our
Customers and Partners
Dan Bulucea
Platform Strategy Manager
Microsoft Eastern Europe

Agenda
Market Overview
Microsoft’s Commitment to Customers
Integrated Innovation Advantage
Economic Impact of IT
Why Microsoft

Market Overview
IT Industry Trends
Everyone agrees on one thing: the move
to x86
Price/performance and flexibility driving change

Focus on security
Increasing pressures to do more with less
Broad web services movement
24x7 availability essential in a global
economy

Market Overview
Market Trends
IBM want this to be all about their services
“Devalue” the platform and monopolize service
opportunities

Novell connecting the dots with strategic
acquisitions
Attempting an end-to-end platform play on Linux

Oracle supporting Linux adoption
Sun delivering strategy “du jour”
Customer demands, platform challenges, cost models

New companies developing roots in the market
(e.g., RedHat, MySQL, other Open Source
vendors)

Customers Told Us…
Customer Requirement

Microsoft Commitment

Increase economic value

Best Value

Protect my data

Stronger
Security

Reduce downtime

Reliability
and Availability

Leverage existing assets

Interoperability

Connect with customers (Revenue)
Integrate with partners (Profitability)
Empower employees (Productivity)

Integrated
Innovation

Proof Of Our Commitment To Customers
Microsoft Commitment

Best value
Stronger
Security
Reliability
and Availability
Interoperability

Integrated
Innovation
Go to www.getthefacts.com for complete reports

Third Party Validation

Best Value
Does Linux cost less to acquire?

Source: Bearing Point, Server Operating System Licensing and
Support Cost Comparison – May 2004
** Full Support indicates 24x7 support on all servers. Limited
Support indicates 24x7 support on only 10% of servers.

Best Value
Does Linux have lower TCO?

Noncommissioned Studies:

Security
OS Bulletins - 2003

An industry problem…
Companies Detecting
Security Breaches

92%
Source: 2003 Computer Security Institute survey
of 250 major US companies

…a Microsoft priority
SD3+C
Secure by:
Design
Default
Deployment
Communications

125
100
75
1
250
25
0

RedHat
Microsoft

120

87
43
2002

39
2003

Source: OS Bulletins from Vendor Web Sites

180 Days Later

57

60
45
30

32

34

14

15
0

RH8

RH9

WS00 WS03

Security
Is Linux more secure?

All Days of Risk
25

Microsoft
RedHat

57

Debian

57

128

82

Microsoft

74
0

20

40

Source: “Is Windows More Secure than Linux?”, Forrester, March 2004

60

120

86

MandrakeSoft
SUSE

162

80

100

Red Hat

Debian

Mandrake
Soft

Source: Forrester Research: http://www.forrester.com/Research/Document/
Excerpt/0,7211,33941,00.html

111

SUSE

Security
Is Linux more secure?
Common
Customer Questions

Forrester Response:
“What matters”

Forrester
Analysis

1.

“Linux distributions
say they can fix
things within just
hours, why can’t
Microsoft do that?”

“Microsoft’s average
of 25 days between disclosure & release of a
fix was the lowest of all the platform
maintainers we evaluated.”

2.

“Doesn’t Linux have
fewer bugs and
aren’t they less
severe than
Windows bugs?”

Forrester analysis shows Microsoft having
the fewest high-severity flaws of any vendor
– and 25 less than the next lowest

3.

“Isn’t open source
software better at
fixing vulnerabilities
than Microsoft?”

Forrester analysis shows Microsoft as the
only vendor to fix 100% of the flaws
discovered

Reliability
VeriTest Proof of our System Reliability

End User Pain
Average Service Loss Time
HH:MM:SS

More reliable

4:59:44
4.5

4:20:19

4

Hours

Windows prevented 4x more events
Windows detected over 2x as many issues
before the trouble ticket was received
Windows system issues (created by test
proctor) were resolved 20% faster and 8%
more successfully

5

3.5
3
2.5
2

Windows

Linux

Configuring the Environment
Total Time for Completed Tasks*

Easier to Maintain
25

20:55:13
20

Hours

Windows required approx. 50% less time to
complete directory-related tasks with Active
Directory vs. OpenLDAP
Windows tape drive and printer
configurations were completed over 2x faster
Improving system fault tolerance/redundancy
required >2x more time for Linux

HH:MM:SS

15

13:11:56

10
5
0

Windows

Linux

*21% more “proactive” tasks completed on Windows

Interoperability
Microsoft’s Approach
Enable Microsoft technology to work well with
Windows and non-Windows applications
Develop solutions based on industry standards

Provide rich services
that address key
business scenarios
Enable ISVs to
develop solutions and
solve niche needs

MS Interoperability Model

Interoperability
Developer Priorities

Interoperability is
very important

Interop

65%

48%
44%

Security
Support
0

20

40

60

80

Interoperability Prioritization

Windows
interoperability
is first priority

79%

Windows

43%

Unix
Linux

22%
0

20

40

60

80

Best Support of Interoperability

Microsoft is doing the
most to achieve
interoperability goals
Source: Jupiter research survey, 12/03

72%
63%
55%

MS
IBM

Linux
0

20

40

60

% of IT Decision Makers

80

File/Print Services
Network Access Services
Directory/Security Services
Kernel

Platform Features

MSMQ

Windows Media Services

Windows Server
Distributed File Service STS
VPN

RAS

PKI

Smart Card

Active Directory WMI Kerberos

Consistent
Interfaces

3rd Party Products

?

OpenOffice
?

?

Real or Darwin Media Server*
?

Apache
Samba
OpenLDAP
?

?

Linux Kernel

Windows Kernel
Common
Mgmt Infra

?

?

Sendmail

3rd Party Products

Mobile Info Svr

Transaction Service

JBOSS

Single
Sign-On

Customer Requirements Microsoft Platform

?

Linux Platform

**Some services not available in Linux distributions are available at additional cost from vendors such as IBM

?

Web Services

J2EE/PHP

.NET Framework IIS ASP.NET

?

Media Services

MySQL

Visual Studio.NET

Application Services

SMS 2003, MOM 2005

Programming Frameworks

SQL Server

Integrated Development Tools

Integrated Management Tools

Integrated Data Management

Office 2003

BizTalk, CS2002

MMS, ISA, AD

Exchange, SPS

Other

Mobility

Productivity

Commerce

Identity Mgmt

Collaboration

Integrated Innovation

Customer Value – Local Evidence
TZUM – Retail (Bulgaria)
TZUM switched from Linux to Windows Server 2003 for
better integration and easier management. Its new IT
infrastructure runs 30% more efficiently
Zotel – Telecommunications (Poland)
Switch from Linux to Microsoft reduces IT costs by 30%

Duna TV – Media Service Provider (Hungary)
Switch to Microsoft Exchange Server 2003 from Linux
cuts operating costs by half
Romgaz – Utility (Romania)
Evaluated Linux and OSS but chose Microsoft because of
ease-of-use, support and features
Ahold – Retail (Czech Republic)
Consolidation from Linux and Novell to Windows
infrastructure

IDC EMEA Economic Impact Study, 2004
• Update of preceding Economic Impact Model studies

• Analyzes the specific contributions of the software
sector
• This research covered 19 countries (~82% of IT
spending in EMEA):
Austria
Denmark
France
Germany
Ireland
Italy
Netherlands
Portugal
Spain
UK

Czech Republic
Estonia
Hungary
Lithuania
Russia
Poland
Israel
South Africa
Turkey

Microsoft-Related Economic Impact
Microsoft-Related Employees in 2004*

C ze c h R e p
E s to n ia
H u n g a ry
L ith u a n ia
P o la n d
R u s s ia
T o ta l E E G ro u p

S e rvic e s &

IT

H a rd w a re

S o ftw a re

C h a n n e ls

P ro fe s s io n a ls

T o ta l

% T o ta l

1 ,6 8 6
510
1 ,2 4 7
854
3 ,8 0 1
7 ,9 3 7

599
209
446
287
838
656

1 2 ,6 5 1
2 ,3 6 4
8 ,9 1 0
6 ,4 0 2
2 1 ,9 7 4
3 8 ,5 1 2

3 4 ,2 2 1
3 ,0 9 1
2 5 ,9 1 3
3 ,7 1 4
7 0 ,0 1 6
1 3 1 ,2 8 6

4 9 ,1 5 7
6 ,1 7 4
3 6 ,5 1 6
1 1 ,2 5 7
9 6 ,6 3 0
1 7 8 ,3 9 1

40%
54%
41%
54%
50%
55%

1 6 ,0 3 6

3 ,0 3 5

9 0 ,8 1 4

2 6 8 ,2 4 1

3 7 8 ,1 2 5

49%

Microsoft-Related Taxes ($M)**
C zech R ep
E stonia
H ungary
Lithuania
P oland
R ussia
To tal E E G ro u p

$181
$29
$231
$26
$565
$279
$1,312

* Employees in companies that create, sell, distribute, or service hardware or software that runs on Microsoft operating systems and IT employees at user organization that develop
applications, service, or maintain such hardware or software
** Includes value-added or sales taxes, corporate income taxes, and personal income and social taxes

Source: IDC IT Economic Impact Study, 2004, 19 Countries

Economic Impact Study in Slovakia, 2003
Run by Institute of Slovak and World Economy – part
of Slovak Academy of Science
Impact of IT on economic growth
Position the Slovak IT sector in regional and global
perspectives
Compare impact of IT sector with other branches
Microsoft contribution to Slovak IT sector

Analyzes the impact made by the commercial software
model and Microsoft on the local economy
1 SK spent on purchasing of software from Microsoft would
generate a nearly 7 SK effect on the Slovak economy

Software Industry Trends in Latvia, 2004
Research conducted by Latvian Information Technology
and Telecommunication Association (LITTA)
Analyzes the business trends in software development,
service and distribution industry
Usage of commercial and open source platforms in business
and company resources invested in each of these platforms.
Assessment of economic impact of the software industry trends
on the national economy

Findings:
Commercial software model creates the highest value added
for their company - 100% of all respondents
Commercial platform is considered with lower total
development costs

IDC IT Economic Impact Study, 2005

Economic Impact of the IT Sector
in South East Europe
The research covers 6 countries:
Bulgaria
Croatia
Macedonia
Romania

Serbia and Montenegro
Slovenia

Microsoft Related Employment
Total IT
Employees
in 2004

MicrosoftRelated
Employees
in 2004*

% Total

MicrosoftRelated
Taxes
($M)**

Bulgaria

27.462

14.285

52%

$32,2

Croatia

20.044

9.365

47%

$73,0

2.894

1.613

56%

$6,6

Romania

29.251

18.995

65%

$63,7

Slovenia

18.222

8.483

47%

$109,2

Serbia & Montenegro

24.173

11.844

49%

$27

122.046

64.585

53%

$311

Macedonia

Total Group

Source: IDC IT Economic Impact Study, 2005, 6 South East European Countries

Revenues
In SEE the IT sector generates over $600 million in tax
receipts
Includes value-added or sales taxes, corporate income taxes,
and personal income and social taxes

Over $300 million of this is attributed to companies
and employees working with Microsoft products
1 : 8.5
For every dollar of Microsoft revenue in the region, another
eight and a half were generated by other companies selling
hardware or software that works on Microsoft operating
systems, or servicing that software

Source: IDC IT Economic Impact Study, 2005, 6 South East European Countries

Government
Policy
Industry
Interoperability

Security & Quality
Ongoing Relationship
Indemnification
Support

Productivity partner
Breakthroughs
Integration
Manageability

Applications
Compatibility
Hardware
Partners

© 2004 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.


Slide 18

Delivering Value to Our
Customers and Partners
Dan Bulucea
Platform Strategy Manager
Microsoft Eastern Europe

Agenda
Market Overview
Microsoft’s Commitment to Customers
Integrated Innovation Advantage
Economic Impact of IT
Why Microsoft

Market Overview
IT Industry Trends
Everyone agrees on one thing: the move
to x86
Price/performance and flexibility driving change

Focus on security
Increasing pressures to do more with less
Broad web services movement
24x7 availability essential in a global
economy

Market Overview
Market Trends
IBM want this to be all about their services
“Devalue” the platform and monopolize service
opportunities

Novell connecting the dots with strategic
acquisitions
Attempting an end-to-end platform play on Linux

Oracle supporting Linux adoption
Sun delivering strategy “du jour”
Customer demands, platform challenges, cost models

New companies developing roots in the market
(e.g., RedHat, MySQL, other Open Source
vendors)

Customers Told Us…
Customer Requirement

Microsoft Commitment

Increase economic value

Best Value

Protect my data

Stronger
Security

Reduce downtime

Reliability
and Availability

Leverage existing assets

Interoperability

Connect with customers (Revenue)
Integrate with partners (Profitability)
Empower employees (Productivity)

Integrated
Innovation

Proof Of Our Commitment To Customers
Microsoft Commitment

Best value
Stronger
Security
Reliability
and Availability
Interoperability

Integrated
Innovation
Go to www.getthefacts.com for complete reports

Third Party Validation

Best Value
Does Linux cost less to acquire?

Source: Bearing Point, Server Operating System Licensing and
Support Cost Comparison – May 2004
** Full Support indicates 24x7 support on all servers. Limited
Support indicates 24x7 support on only 10% of servers.

Best Value
Does Linux have lower TCO?

Noncommissioned Studies:

Security
OS Bulletins - 2003

An industry problem…
Companies Detecting
Security Breaches

92%
Source: 2003 Computer Security Institute survey
of 250 major US companies

…a Microsoft priority
SD3+C
Secure by:
Design
Default
Deployment
Communications

125
100
75
1
250
25
0

RedHat
Microsoft

120

87
43
2002

39
2003

Source: OS Bulletins from Vendor Web Sites

180 Days Later

57

60
45
30

32

34

14

15
0

RH8

RH9

WS00 WS03

Security
Is Linux more secure?

All Days of Risk
25

Microsoft
RedHat

57

Debian

57

128

82

Microsoft

74
0

20

40

Source: “Is Windows More Secure than Linux?”, Forrester, March 2004

60

120

86

MandrakeSoft
SUSE

162

80

100

Red Hat

Debian

Mandrake
Soft

Source: Forrester Research: http://www.forrester.com/Research/Document/
Excerpt/0,7211,33941,00.html

111

SUSE

Security
Is Linux more secure?
Common
Customer Questions

Forrester Response:
“What matters”

Forrester
Analysis

1.

“Linux distributions
say they can fix
things within just
hours, why can’t
Microsoft do that?”

“Microsoft’s average
of 25 days between disclosure & release of a
fix was the lowest of all the platform
maintainers we evaluated.”

2.

“Doesn’t Linux have
fewer bugs and
aren’t they less
severe than
Windows bugs?”

Forrester analysis shows Microsoft having
the fewest high-severity flaws of any vendor
– and 25 less than the next lowest

3.

“Isn’t open source
software better at
fixing vulnerabilities
than Microsoft?”

Forrester analysis shows Microsoft as the
only vendor to fix 100% of the flaws
discovered

Reliability
VeriTest Proof of our System Reliability

End User Pain
Average Service Loss Time
HH:MM:SS

More reliable

4:59:44
4.5

4:20:19

4

Hours

Windows prevented 4x more events
Windows detected over 2x as many issues
before the trouble ticket was received
Windows system issues (created by test
proctor) were resolved 20% faster and 8%
more successfully

5

3.5
3
2.5
2

Windows

Linux

Configuring the Environment
Total Time for Completed Tasks*

Easier to Maintain
25

20:55:13
20

Hours

Windows required approx. 50% less time to
complete directory-related tasks with Active
Directory vs. OpenLDAP
Windows tape drive and printer
configurations were completed over 2x faster
Improving system fault tolerance/redundancy
required >2x more time for Linux

HH:MM:SS

15

13:11:56

10
5
0

Windows

Linux

*21% more “proactive” tasks completed on Windows

Interoperability
Microsoft’s Approach
Enable Microsoft technology to work well with
Windows and non-Windows applications
Develop solutions based on industry standards

Provide rich services
that address key
business scenarios
Enable ISVs to
develop solutions and
solve niche needs

MS Interoperability Model

Interoperability
Developer Priorities

Interoperability is
very important

Interop

65%

48%
44%

Security
Support
0

20

40

60

80

Interoperability Prioritization

Windows
interoperability
is first priority

79%

Windows

43%

Unix
Linux

22%
0

20

40

60

80

Best Support of Interoperability

Microsoft is doing the
most to achieve
interoperability goals
Source: Jupiter research survey, 12/03

72%
63%
55%

MS
IBM

Linux
0

20

40

60

% of IT Decision Makers

80

File/Print Services
Network Access Services
Directory/Security Services
Kernel

Platform Features

MSMQ

Windows Media Services

Windows Server
Distributed File Service STS
VPN

RAS

PKI

Smart Card

Active Directory WMI Kerberos

Consistent
Interfaces

3rd Party Products

?

OpenOffice
?

?

Real or Darwin Media Server*
?

Apache
Samba
OpenLDAP
?

?

Linux Kernel

Windows Kernel
Common
Mgmt Infra

?

?

Sendmail

3rd Party Products

Mobile Info Svr

Transaction Service

JBOSS

Single
Sign-On

Customer Requirements Microsoft Platform

?

Linux Platform

**Some services not available in Linux distributions are available at additional cost from vendors such as IBM

?

Web Services

J2EE/PHP

.NET Framework IIS ASP.NET

?

Media Services

MySQL

Visual Studio.NET

Application Services

SMS 2003, MOM 2005

Programming Frameworks

SQL Server

Integrated Development Tools

Integrated Management Tools

Integrated Data Management

Office 2003

BizTalk, CS2002

MMS, ISA, AD

Exchange, SPS

Other

Mobility

Productivity

Commerce

Identity Mgmt

Collaboration

Integrated Innovation

Customer Value – Local Evidence
TZUM – Retail (Bulgaria)
TZUM switched from Linux to Windows Server 2003 for
better integration and easier management. Its new IT
infrastructure runs 30% more efficiently
Zotel – Telecommunications (Poland)
Switch from Linux to Microsoft reduces IT costs by 30%

Duna TV – Media Service Provider (Hungary)
Switch to Microsoft Exchange Server 2003 from Linux
cuts operating costs by half
Romgaz – Utility (Romania)
Evaluated Linux and OSS but chose Microsoft because of
ease-of-use, support and features
Ahold – Retail (Czech Republic)
Consolidation from Linux and Novell to Windows
infrastructure

IDC EMEA Economic Impact Study, 2004
• Update of preceding Economic Impact Model studies

• Analyzes the specific contributions of the software
sector
• This research covered 19 countries (~82% of IT
spending in EMEA):
Austria
Denmark
France
Germany
Ireland
Italy
Netherlands
Portugal
Spain
UK

Czech Republic
Estonia
Hungary
Lithuania
Russia
Poland
Israel
South Africa
Turkey

Microsoft-Related Economic Impact
Microsoft-Related Employees in 2004*

C ze c h R e p
E s to n ia
H u n g a ry
L ith u a n ia
P o la n d
R u s s ia
T o ta l E E G ro u p

S e rvic e s &

IT

H a rd w a re

S o ftw a re

C h a n n e ls

P ro fe s s io n a ls

T o ta l

% T o ta l

1 ,6 8 6
510
1 ,2 4 7
854
3 ,8 0 1
7 ,9 3 7

599
209
446
287
838
656

1 2 ,6 5 1
2 ,3 6 4
8 ,9 1 0
6 ,4 0 2
2 1 ,9 7 4
3 8 ,5 1 2

3 4 ,2 2 1
3 ,0 9 1
2 5 ,9 1 3
3 ,7 1 4
7 0 ,0 1 6
1 3 1 ,2 8 6

4 9 ,1 5 7
6 ,1 7 4
3 6 ,5 1 6
1 1 ,2 5 7
9 6 ,6 3 0
1 7 8 ,3 9 1

40%
54%
41%
54%
50%
55%

1 6 ,0 3 6

3 ,0 3 5

9 0 ,8 1 4

2 6 8 ,2 4 1

3 7 8 ,1 2 5

49%

Microsoft-Related Taxes ($M)**
C zech R ep
E stonia
H ungary
Lithuania
P oland
R ussia
To tal E E G ro u p

$181
$29
$231
$26
$565
$279
$1,312

* Employees in companies that create, sell, distribute, or service hardware or software that runs on Microsoft operating systems and IT employees at user organization that develop
applications, service, or maintain such hardware or software
** Includes value-added or sales taxes, corporate income taxes, and personal income and social taxes

Source: IDC IT Economic Impact Study, 2004, 19 Countries

Economic Impact Study in Slovakia, 2003
Run by Institute of Slovak and World Economy – part
of Slovak Academy of Science
Impact of IT on economic growth
Position the Slovak IT sector in regional and global
perspectives
Compare impact of IT sector with other branches
Microsoft contribution to Slovak IT sector

Analyzes the impact made by the commercial software
model and Microsoft on the local economy
1 SK spent on purchasing of software from Microsoft would
generate a nearly 7 SK effect on the Slovak economy

Software Industry Trends in Latvia, 2004
Research conducted by Latvian Information Technology
and Telecommunication Association (LITTA)
Analyzes the business trends in software development,
service and distribution industry
Usage of commercial and open source platforms in business
and company resources invested in each of these platforms.
Assessment of economic impact of the software industry trends
on the national economy

Findings:
Commercial software model creates the highest value added
for their company - 100% of all respondents
Commercial platform is considered with lower total
development costs

IDC IT Economic Impact Study, 2005

Economic Impact of the IT Sector
in South East Europe
The research covers 6 countries:
Bulgaria
Croatia
Macedonia
Romania

Serbia and Montenegro
Slovenia

Microsoft Related Employment
Total IT
Employees
in 2004

MicrosoftRelated
Employees
in 2004*

% Total

MicrosoftRelated
Taxes
($M)**

Bulgaria

27.462

14.285

52%

$32,2

Croatia

20.044

9.365

47%

$73,0

2.894

1.613

56%

$6,6

Romania

29.251

18.995

65%

$63,7

Slovenia

18.222

8.483

47%

$109,2

Serbia & Montenegro

24.173

11.844

49%

$27

122.046

64.585

53%

$311

Macedonia

Total Group

Source: IDC IT Economic Impact Study, 2005, 6 South East European Countries

Revenues
In SEE the IT sector generates over $600 million in tax
receipts
Includes value-added or sales taxes, corporate income taxes,
and personal income and social taxes

Over $300 million of this is attributed to companies
and employees working with Microsoft products
1 : 8.5
For every dollar of Microsoft revenue in the region, another
eight and a half were generated by other companies selling
hardware or software that works on Microsoft operating
systems, or servicing that software

Source: IDC IT Economic Impact Study, 2005, 6 South East European Countries

Government
Policy
Industry
Interoperability

Security & Quality
Ongoing Relationship
Indemnification
Support

Productivity partner
Breakthroughs
Integration
Manageability

Applications
Compatibility
Hardware
Partners

© 2004 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.


Slide 19

Delivering Value to Our
Customers and Partners
Dan Bulucea
Platform Strategy Manager
Microsoft Eastern Europe

Agenda
Market Overview
Microsoft’s Commitment to Customers
Integrated Innovation Advantage
Economic Impact of IT
Why Microsoft

Market Overview
IT Industry Trends
Everyone agrees on one thing: the move
to x86
Price/performance and flexibility driving change

Focus on security
Increasing pressures to do more with less
Broad web services movement
24x7 availability essential in a global
economy

Market Overview
Market Trends
IBM want this to be all about their services
“Devalue” the platform and monopolize service
opportunities

Novell connecting the dots with strategic
acquisitions
Attempting an end-to-end platform play on Linux

Oracle supporting Linux adoption
Sun delivering strategy “du jour”
Customer demands, platform challenges, cost models

New companies developing roots in the market
(e.g., RedHat, MySQL, other Open Source
vendors)

Customers Told Us…
Customer Requirement

Microsoft Commitment

Increase economic value

Best Value

Protect my data

Stronger
Security

Reduce downtime

Reliability
and Availability

Leverage existing assets

Interoperability

Connect with customers (Revenue)
Integrate with partners (Profitability)
Empower employees (Productivity)

Integrated
Innovation

Proof Of Our Commitment To Customers
Microsoft Commitment

Best value
Stronger
Security
Reliability
and Availability
Interoperability

Integrated
Innovation
Go to www.getthefacts.com for complete reports

Third Party Validation

Best Value
Does Linux cost less to acquire?

Source: Bearing Point, Server Operating System Licensing and
Support Cost Comparison – May 2004
** Full Support indicates 24x7 support on all servers. Limited
Support indicates 24x7 support on only 10% of servers.

Best Value
Does Linux have lower TCO?

Noncommissioned Studies:

Security
OS Bulletins - 2003

An industry problem…
Companies Detecting
Security Breaches

92%
Source: 2003 Computer Security Institute survey
of 250 major US companies

…a Microsoft priority
SD3+C
Secure by:
Design
Default
Deployment
Communications

125
100
75
1
250
25
0

RedHat
Microsoft

120

87
43
2002

39
2003

Source: OS Bulletins from Vendor Web Sites

180 Days Later

57

60
45
30

32

34

14

15
0

RH8

RH9

WS00 WS03

Security
Is Linux more secure?

All Days of Risk
25

Microsoft
RedHat

57

Debian

57

128

82

Microsoft

74
0

20

40

Source: “Is Windows More Secure than Linux?”, Forrester, March 2004

60

120

86

MandrakeSoft
SUSE

162

80

100

Red Hat

Debian

Mandrake
Soft

Source: Forrester Research: http://www.forrester.com/Research/Document/
Excerpt/0,7211,33941,00.html

111

SUSE

Security
Is Linux more secure?
Common
Customer Questions

Forrester Response:
“What matters”

Forrester
Analysis

1.

“Linux distributions
say they can fix
things within just
hours, why can’t
Microsoft do that?”

“Microsoft’s average
of 25 days between disclosure & release of a
fix was the lowest of all the platform
maintainers we evaluated.”

2.

“Doesn’t Linux have
fewer bugs and
aren’t they less
severe than
Windows bugs?”

Forrester analysis shows Microsoft having
the fewest high-severity flaws of any vendor
– and 25 less than the next lowest

3.

“Isn’t open source
software better at
fixing vulnerabilities
than Microsoft?”

Forrester analysis shows Microsoft as the
only vendor to fix 100% of the flaws
discovered

Reliability
VeriTest Proof of our System Reliability

End User Pain
Average Service Loss Time
HH:MM:SS

More reliable

4:59:44
4.5

4:20:19

4

Hours

Windows prevented 4x more events
Windows detected over 2x as many issues
before the trouble ticket was received
Windows system issues (created by test
proctor) were resolved 20% faster and 8%
more successfully

5

3.5
3
2.5
2

Windows

Linux

Configuring the Environment
Total Time for Completed Tasks*

Easier to Maintain
25

20:55:13
20

Hours

Windows required approx. 50% less time to
complete directory-related tasks with Active
Directory vs. OpenLDAP
Windows tape drive and printer
configurations were completed over 2x faster
Improving system fault tolerance/redundancy
required >2x more time for Linux

HH:MM:SS

15

13:11:56

10
5
0

Windows

Linux

*21% more “proactive” tasks completed on Windows

Interoperability
Microsoft’s Approach
Enable Microsoft technology to work well with
Windows and non-Windows applications
Develop solutions based on industry standards

Provide rich services
that address key
business scenarios
Enable ISVs to
develop solutions and
solve niche needs

MS Interoperability Model

Interoperability
Developer Priorities

Interoperability is
very important

Interop

65%

48%
44%

Security
Support
0

20

40

60

80

Interoperability Prioritization

Windows
interoperability
is first priority

79%

Windows

43%

Unix
Linux

22%
0

20

40

60

80

Best Support of Interoperability

Microsoft is doing the
most to achieve
interoperability goals
Source: Jupiter research survey, 12/03

72%
63%
55%

MS
IBM

Linux
0

20

40

60

% of IT Decision Makers

80

File/Print Services
Network Access Services
Directory/Security Services
Kernel

Platform Features

MSMQ

Windows Media Services

Windows Server
Distributed File Service STS
VPN

RAS

PKI

Smart Card

Active Directory WMI Kerberos

Consistent
Interfaces

3rd Party Products

?

OpenOffice
?

?

Real or Darwin Media Server*
?

Apache
Samba
OpenLDAP
?

?

Linux Kernel

Windows Kernel
Common
Mgmt Infra

?

?

Sendmail

3rd Party Products

Mobile Info Svr

Transaction Service

JBOSS

Single
Sign-On

Customer Requirements Microsoft Platform

?

Linux Platform

**Some services not available in Linux distributions are available at additional cost from vendors such as IBM

?

Web Services

J2EE/PHP

.NET Framework IIS ASP.NET

?

Media Services

MySQL

Visual Studio.NET

Application Services

SMS 2003, MOM 2005

Programming Frameworks

SQL Server

Integrated Development Tools

Integrated Management Tools

Integrated Data Management

Office 2003

BizTalk, CS2002

MMS, ISA, AD

Exchange, SPS

Other

Mobility

Productivity

Commerce

Identity Mgmt

Collaboration

Integrated Innovation

Customer Value – Local Evidence
TZUM – Retail (Bulgaria)
TZUM switched from Linux to Windows Server 2003 for
better integration and easier management. Its new IT
infrastructure runs 30% more efficiently
Zotel – Telecommunications (Poland)
Switch from Linux to Microsoft reduces IT costs by 30%

Duna TV – Media Service Provider (Hungary)
Switch to Microsoft Exchange Server 2003 from Linux
cuts operating costs by half
Romgaz – Utility (Romania)
Evaluated Linux and OSS but chose Microsoft because of
ease-of-use, support and features
Ahold – Retail (Czech Republic)
Consolidation from Linux and Novell to Windows
infrastructure

IDC EMEA Economic Impact Study, 2004
• Update of preceding Economic Impact Model studies

• Analyzes the specific contributions of the software
sector
• This research covered 19 countries (~82% of IT
spending in EMEA):
Austria
Denmark
France
Germany
Ireland
Italy
Netherlands
Portugal
Spain
UK

Czech Republic
Estonia
Hungary
Lithuania
Russia
Poland
Israel
South Africa
Turkey

Microsoft-Related Economic Impact
Microsoft-Related Employees in 2004*

C ze c h R e p
E s to n ia
H u n g a ry
L ith u a n ia
P o la n d
R u s s ia
T o ta l E E G ro u p

S e rvic e s &

IT

H a rd w a re

S o ftw a re

C h a n n e ls

P ro fe s s io n a ls

T o ta l

% T o ta l

1 ,6 8 6
510
1 ,2 4 7
854
3 ,8 0 1
7 ,9 3 7

599
209
446
287
838
656

1 2 ,6 5 1
2 ,3 6 4
8 ,9 1 0
6 ,4 0 2
2 1 ,9 7 4
3 8 ,5 1 2

3 4 ,2 2 1
3 ,0 9 1
2 5 ,9 1 3
3 ,7 1 4
7 0 ,0 1 6
1 3 1 ,2 8 6

4 9 ,1 5 7
6 ,1 7 4
3 6 ,5 1 6
1 1 ,2 5 7
9 6 ,6 3 0
1 7 8 ,3 9 1

40%
54%
41%
54%
50%
55%

1 6 ,0 3 6

3 ,0 3 5

9 0 ,8 1 4

2 6 8 ,2 4 1

3 7 8 ,1 2 5

49%

Microsoft-Related Taxes ($M)**
C zech R ep
E stonia
H ungary
Lithuania
P oland
R ussia
To tal E E G ro u p

$181
$29
$231
$26
$565
$279
$1,312

* Employees in companies that create, sell, distribute, or service hardware or software that runs on Microsoft operating systems and IT employees at user organization that develop
applications, service, or maintain such hardware or software
** Includes value-added or sales taxes, corporate income taxes, and personal income and social taxes

Source: IDC IT Economic Impact Study, 2004, 19 Countries

Economic Impact Study in Slovakia, 2003
Run by Institute of Slovak and World Economy – part
of Slovak Academy of Science
Impact of IT on economic growth
Position the Slovak IT sector in regional and global
perspectives
Compare impact of IT sector with other branches
Microsoft contribution to Slovak IT sector

Analyzes the impact made by the commercial software
model and Microsoft on the local economy
1 SK spent on purchasing of software from Microsoft would
generate a nearly 7 SK effect on the Slovak economy

Software Industry Trends in Latvia, 2004
Research conducted by Latvian Information Technology
and Telecommunication Association (LITTA)
Analyzes the business trends in software development,
service and distribution industry
Usage of commercial and open source platforms in business
and company resources invested in each of these platforms.
Assessment of economic impact of the software industry trends
on the national economy

Findings:
Commercial software model creates the highest value added
for their company - 100% of all respondents
Commercial platform is considered with lower total
development costs

IDC IT Economic Impact Study, 2005

Economic Impact of the IT Sector
in South East Europe
The research covers 6 countries:
Bulgaria
Croatia
Macedonia
Romania

Serbia and Montenegro
Slovenia

Microsoft Related Employment
Total IT
Employees
in 2004

MicrosoftRelated
Employees
in 2004*

% Total

MicrosoftRelated
Taxes
($M)**

Bulgaria

27.462

14.285

52%

$32,2

Croatia

20.044

9.365

47%

$73,0

2.894

1.613

56%

$6,6

Romania

29.251

18.995

65%

$63,7

Slovenia

18.222

8.483

47%

$109,2

Serbia & Montenegro

24.173

11.844

49%

$27

122.046

64.585

53%

$311

Macedonia

Total Group

Source: IDC IT Economic Impact Study, 2005, 6 South East European Countries

Revenues
In SEE the IT sector generates over $600 million in tax
receipts
Includes value-added or sales taxes, corporate income taxes,
and personal income and social taxes

Over $300 million of this is attributed to companies
and employees working with Microsoft products
1 : 8.5
For every dollar of Microsoft revenue in the region, another
eight and a half were generated by other companies selling
hardware or software that works on Microsoft operating
systems, or servicing that software

Source: IDC IT Economic Impact Study, 2005, 6 South East European Countries

Government
Policy
Industry
Interoperability

Security & Quality
Ongoing Relationship
Indemnification
Support

Productivity partner
Breakthroughs
Integration
Manageability

Applications
Compatibility
Hardware
Partners

© 2004 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.


Slide 20

Delivering Value to Our
Customers and Partners
Dan Bulucea
Platform Strategy Manager
Microsoft Eastern Europe

Agenda
Market Overview
Microsoft’s Commitment to Customers
Integrated Innovation Advantage
Economic Impact of IT
Why Microsoft

Market Overview
IT Industry Trends
Everyone agrees on one thing: the move
to x86
Price/performance and flexibility driving change

Focus on security
Increasing pressures to do more with less
Broad web services movement
24x7 availability essential in a global
economy

Market Overview
Market Trends
IBM want this to be all about their services
“Devalue” the platform and monopolize service
opportunities

Novell connecting the dots with strategic
acquisitions
Attempting an end-to-end platform play on Linux

Oracle supporting Linux adoption
Sun delivering strategy “du jour”
Customer demands, platform challenges, cost models

New companies developing roots in the market
(e.g., RedHat, MySQL, other Open Source
vendors)

Customers Told Us…
Customer Requirement

Microsoft Commitment

Increase economic value

Best Value

Protect my data

Stronger
Security

Reduce downtime

Reliability
and Availability

Leverage existing assets

Interoperability

Connect with customers (Revenue)
Integrate with partners (Profitability)
Empower employees (Productivity)

Integrated
Innovation

Proof Of Our Commitment To Customers
Microsoft Commitment

Best value
Stronger
Security
Reliability
and Availability
Interoperability

Integrated
Innovation
Go to www.getthefacts.com for complete reports

Third Party Validation

Best Value
Does Linux cost less to acquire?

Source: Bearing Point, Server Operating System Licensing and
Support Cost Comparison – May 2004
** Full Support indicates 24x7 support on all servers. Limited
Support indicates 24x7 support on only 10% of servers.

Best Value
Does Linux have lower TCO?

Noncommissioned Studies:

Security
OS Bulletins - 2003

An industry problem…
Companies Detecting
Security Breaches

92%
Source: 2003 Computer Security Institute survey
of 250 major US companies

…a Microsoft priority
SD3+C
Secure by:
Design
Default
Deployment
Communications

125
100
75
1
250
25
0

RedHat
Microsoft

120

87
43
2002

39
2003

Source: OS Bulletins from Vendor Web Sites

180 Days Later

57

60
45
30

32

34

14

15
0

RH8

RH9

WS00 WS03

Security
Is Linux more secure?

All Days of Risk
25

Microsoft
RedHat

57

Debian

57

128

82

Microsoft

74
0

20

40

Source: “Is Windows More Secure than Linux?”, Forrester, March 2004

60

120

86

MandrakeSoft
SUSE

162

80

100

Red Hat

Debian

Mandrake
Soft

Source: Forrester Research: http://www.forrester.com/Research/Document/
Excerpt/0,7211,33941,00.html

111

SUSE

Security
Is Linux more secure?
Common
Customer Questions

Forrester Response:
“What matters”

Forrester
Analysis

1.

“Linux distributions
say they can fix
things within just
hours, why can’t
Microsoft do that?”

“Microsoft’s average
of 25 days between disclosure & release of a
fix was the lowest of all the platform
maintainers we evaluated.”

2.

“Doesn’t Linux have
fewer bugs and
aren’t they less
severe than
Windows bugs?”

Forrester analysis shows Microsoft having
the fewest high-severity flaws of any vendor
– and 25 less than the next lowest

3.

“Isn’t open source
software better at
fixing vulnerabilities
than Microsoft?”

Forrester analysis shows Microsoft as the
only vendor to fix 100% of the flaws
discovered

Reliability
VeriTest Proof of our System Reliability

End User Pain
Average Service Loss Time
HH:MM:SS

More reliable

4:59:44
4.5

4:20:19

4

Hours

Windows prevented 4x more events
Windows detected over 2x as many issues
before the trouble ticket was received
Windows system issues (created by test
proctor) were resolved 20% faster and 8%
more successfully

5

3.5
3
2.5
2

Windows

Linux

Configuring the Environment
Total Time for Completed Tasks*

Easier to Maintain
25

20:55:13
20

Hours

Windows required approx. 50% less time to
complete directory-related tasks with Active
Directory vs. OpenLDAP
Windows tape drive and printer
configurations were completed over 2x faster
Improving system fault tolerance/redundancy
required >2x more time for Linux

HH:MM:SS

15

13:11:56

10
5
0

Windows

Linux

*21% more “proactive” tasks completed on Windows

Interoperability
Microsoft’s Approach
Enable Microsoft technology to work well with
Windows and non-Windows applications
Develop solutions based on industry standards

Provide rich services
that address key
business scenarios
Enable ISVs to
develop solutions and
solve niche needs

MS Interoperability Model

Interoperability
Developer Priorities

Interoperability is
very important

Interop

65%

48%
44%

Security
Support
0

20

40

60

80

Interoperability Prioritization

Windows
interoperability
is first priority

79%

Windows

43%

Unix
Linux

22%
0

20

40

60

80

Best Support of Interoperability

Microsoft is doing the
most to achieve
interoperability goals
Source: Jupiter research survey, 12/03

72%
63%
55%

MS
IBM

Linux
0

20

40

60

% of IT Decision Makers

80

File/Print Services
Network Access Services
Directory/Security Services
Kernel

Platform Features

MSMQ

Windows Media Services

Windows Server
Distributed File Service STS
VPN

RAS

PKI

Smart Card

Active Directory WMI Kerberos

Consistent
Interfaces

3rd Party Products

?

OpenOffice
?

?

Real or Darwin Media Server*
?

Apache
Samba
OpenLDAP
?

?

Linux Kernel

Windows Kernel
Common
Mgmt Infra

?

?

Sendmail

3rd Party Products

Mobile Info Svr

Transaction Service

JBOSS

Single
Sign-On

Customer Requirements Microsoft Platform

?

Linux Platform

**Some services not available in Linux distributions are available at additional cost from vendors such as IBM

?

Web Services

J2EE/PHP

.NET Framework IIS ASP.NET

?

Media Services

MySQL

Visual Studio.NET

Application Services

SMS 2003, MOM 2005

Programming Frameworks

SQL Server

Integrated Development Tools

Integrated Management Tools

Integrated Data Management

Office 2003

BizTalk, CS2002

MMS, ISA, AD

Exchange, SPS

Other

Mobility

Productivity

Commerce

Identity Mgmt

Collaboration

Integrated Innovation

Customer Value – Local Evidence
TZUM – Retail (Bulgaria)
TZUM switched from Linux to Windows Server 2003 for
better integration and easier management. Its new IT
infrastructure runs 30% more efficiently
Zotel – Telecommunications (Poland)
Switch from Linux to Microsoft reduces IT costs by 30%

Duna TV – Media Service Provider (Hungary)
Switch to Microsoft Exchange Server 2003 from Linux
cuts operating costs by half
Romgaz – Utility (Romania)
Evaluated Linux and OSS but chose Microsoft because of
ease-of-use, support and features
Ahold – Retail (Czech Republic)
Consolidation from Linux and Novell to Windows
infrastructure

IDC EMEA Economic Impact Study, 2004
• Update of preceding Economic Impact Model studies

• Analyzes the specific contributions of the software
sector
• This research covered 19 countries (~82% of IT
spending in EMEA):
Austria
Denmark
France
Germany
Ireland
Italy
Netherlands
Portugal
Spain
UK

Czech Republic
Estonia
Hungary
Lithuania
Russia
Poland
Israel
South Africa
Turkey

Microsoft-Related Economic Impact
Microsoft-Related Employees in 2004*

C ze c h R e p
E s to n ia
H u n g a ry
L ith u a n ia
P o la n d
R u s s ia
T o ta l E E G ro u p

S e rvic e s &

IT

H a rd w a re

S o ftw a re

C h a n n e ls

P ro fe s s io n a ls

T o ta l

% T o ta l

1 ,6 8 6
510
1 ,2 4 7
854
3 ,8 0 1
7 ,9 3 7

599
209
446
287
838
656

1 2 ,6 5 1
2 ,3 6 4
8 ,9 1 0
6 ,4 0 2
2 1 ,9 7 4
3 8 ,5 1 2

3 4 ,2 2 1
3 ,0 9 1
2 5 ,9 1 3
3 ,7 1 4
7 0 ,0 1 6
1 3 1 ,2 8 6

4 9 ,1 5 7
6 ,1 7 4
3 6 ,5 1 6
1 1 ,2 5 7
9 6 ,6 3 0
1 7 8 ,3 9 1

40%
54%
41%
54%
50%
55%

1 6 ,0 3 6

3 ,0 3 5

9 0 ,8 1 4

2 6 8 ,2 4 1

3 7 8 ,1 2 5

49%

Microsoft-Related Taxes ($M)**
C zech R ep
E stonia
H ungary
Lithuania
P oland
R ussia
To tal E E G ro u p

$181
$29
$231
$26
$565
$279
$1,312

* Employees in companies that create, sell, distribute, or service hardware or software that runs on Microsoft operating systems and IT employees at user organization that develop
applications, service, or maintain such hardware or software
** Includes value-added or sales taxes, corporate income taxes, and personal income and social taxes

Source: IDC IT Economic Impact Study, 2004, 19 Countries

Economic Impact Study in Slovakia, 2003
Run by Institute of Slovak and World Economy – part
of Slovak Academy of Science
Impact of IT on economic growth
Position the Slovak IT sector in regional and global
perspectives
Compare impact of IT sector with other branches
Microsoft contribution to Slovak IT sector

Analyzes the impact made by the commercial software
model and Microsoft on the local economy
1 SK spent on purchasing of software from Microsoft would
generate a nearly 7 SK effect on the Slovak economy

Software Industry Trends in Latvia, 2004
Research conducted by Latvian Information Technology
and Telecommunication Association (LITTA)
Analyzes the business trends in software development,
service and distribution industry
Usage of commercial and open source platforms in business
and company resources invested in each of these platforms.
Assessment of economic impact of the software industry trends
on the national economy

Findings:
Commercial software model creates the highest value added
for their company - 100% of all respondents
Commercial platform is considered with lower total
development costs

IDC IT Economic Impact Study, 2005

Economic Impact of the IT Sector
in South East Europe
The research covers 6 countries:
Bulgaria
Croatia
Macedonia
Romania

Serbia and Montenegro
Slovenia

Microsoft Related Employment
Total IT
Employees
in 2004

MicrosoftRelated
Employees
in 2004*

% Total

MicrosoftRelated
Taxes
($M)**

Bulgaria

27.462

14.285

52%

$32,2

Croatia

20.044

9.365

47%

$73,0

2.894

1.613

56%

$6,6

Romania

29.251

18.995

65%

$63,7

Slovenia

18.222

8.483

47%

$109,2

Serbia & Montenegro

24.173

11.844

49%

$27

122.046

64.585

53%

$311

Macedonia

Total Group

Source: IDC IT Economic Impact Study, 2005, 6 South East European Countries

Revenues
In SEE the IT sector generates over $600 million in tax
receipts
Includes value-added or sales taxes, corporate income taxes,
and personal income and social taxes

Over $300 million of this is attributed to companies
and employees working with Microsoft products
1 : 8.5
For every dollar of Microsoft revenue in the region, another
eight and a half were generated by other companies selling
hardware or software that works on Microsoft operating
systems, or servicing that software

Source: IDC IT Economic Impact Study, 2005, 6 South East European Countries

Government
Policy
Industry
Interoperability

Security & Quality
Ongoing Relationship
Indemnification
Support

Productivity partner
Breakthroughs
Integration
Manageability

Applications
Compatibility
Hardware
Partners

© 2004 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.


Slide 21

Delivering Value to Our
Customers and Partners
Dan Bulucea
Platform Strategy Manager
Microsoft Eastern Europe

Agenda
Market Overview
Microsoft’s Commitment to Customers
Integrated Innovation Advantage
Economic Impact of IT
Why Microsoft

Market Overview
IT Industry Trends
Everyone agrees on one thing: the move
to x86
Price/performance and flexibility driving change

Focus on security
Increasing pressures to do more with less
Broad web services movement
24x7 availability essential in a global
economy

Market Overview
Market Trends
IBM want this to be all about their services
“Devalue” the platform and monopolize service
opportunities

Novell connecting the dots with strategic
acquisitions
Attempting an end-to-end platform play on Linux

Oracle supporting Linux adoption
Sun delivering strategy “du jour”
Customer demands, platform challenges, cost models

New companies developing roots in the market
(e.g., RedHat, MySQL, other Open Source
vendors)

Customers Told Us…
Customer Requirement

Microsoft Commitment

Increase economic value

Best Value

Protect my data

Stronger
Security

Reduce downtime

Reliability
and Availability

Leverage existing assets

Interoperability

Connect with customers (Revenue)
Integrate with partners (Profitability)
Empower employees (Productivity)

Integrated
Innovation

Proof Of Our Commitment To Customers
Microsoft Commitment

Best value
Stronger
Security
Reliability
and Availability
Interoperability

Integrated
Innovation
Go to www.getthefacts.com for complete reports

Third Party Validation

Best Value
Does Linux cost less to acquire?

Source: Bearing Point, Server Operating System Licensing and
Support Cost Comparison – May 2004
** Full Support indicates 24x7 support on all servers. Limited
Support indicates 24x7 support on only 10% of servers.

Best Value
Does Linux have lower TCO?

Noncommissioned Studies:

Security
OS Bulletins - 2003

An industry problem…
Companies Detecting
Security Breaches

92%
Source: 2003 Computer Security Institute survey
of 250 major US companies

…a Microsoft priority
SD3+C
Secure by:
Design
Default
Deployment
Communications

125
100
75
1
250
25
0

RedHat
Microsoft

120

87
43
2002

39
2003

Source: OS Bulletins from Vendor Web Sites

180 Days Later

57

60
45
30

32

34

14

15
0

RH8

RH9

WS00 WS03

Security
Is Linux more secure?

All Days of Risk
25

Microsoft
RedHat

57

Debian

57

128

82

Microsoft

74
0

20

40

Source: “Is Windows More Secure than Linux?”, Forrester, March 2004

60

120

86

MandrakeSoft
SUSE

162

80

100

Red Hat

Debian

Mandrake
Soft

Source: Forrester Research: http://www.forrester.com/Research/Document/
Excerpt/0,7211,33941,00.html

111

SUSE

Security
Is Linux more secure?
Common
Customer Questions

Forrester Response:
“What matters”

Forrester
Analysis

1.

“Linux distributions
say they can fix
things within just
hours, why can’t
Microsoft do that?”

“Microsoft’s average
of 25 days between disclosure & release of a
fix was the lowest of all the platform
maintainers we evaluated.”

2.

“Doesn’t Linux have
fewer bugs and
aren’t they less
severe than
Windows bugs?”

Forrester analysis shows Microsoft having
the fewest high-severity flaws of any vendor
– and 25 less than the next lowest

3.

“Isn’t open source
software better at
fixing vulnerabilities
than Microsoft?”

Forrester analysis shows Microsoft as the
only vendor to fix 100% of the flaws
discovered

Reliability
VeriTest Proof of our System Reliability

End User Pain
Average Service Loss Time
HH:MM:SS

More reliable

4:59:44
4.5

4:20:19

4

Hours

Windows prevented 4x more events
Windows detected over 2x as many issues
before the trouble ticket was received
Windows system issues (created by test
proctor) were resolved 20% faster and 8%
more successfully

5

3.5
3
2.5
2

Windows

Linux

Configuring the Environment
Total Time for Completed Tasks*

Easier to Maintain
25

20:55:13
20

Hours

Windows required approx. 50% less time to
complete directory-related tasks with Active
Directory vs. OpenLDAP
Windows tape drive and printer
configurations were completed over 2x faster
Improving system fault tolerance/redundancy
required >2x more time for Linux

HH:MM:SS

15

13:11:56

10
5
0

Windows

Linux

*21% more “proactive” tasks completed on Windows

Interoperability
Microsoft’s Approach
Enable Microsoft technology to work well with
Windows and non-Windows applications
Develop solutions based on industry standards

Provide rich services
that address key
business scenarios
Enable ISVs to
develop solutions and
solve niche needs

MS Interoperability Model

Interoperability
Developer Priorities

Interoperability is
very important

Interop

65%

48%
44%

Security
Support
0

20

40

60

80

Interoperability Prioritization

Windows
interoperability
is first priority

79%

Windows

43%

Unix
Linux

22%
0

20

40

60

80

Best Support of Interoperability

Microsoft is doing the
most to achieve
interoperability goals
Source: Jupiter research survey, 12/03

72%
63%
55%

MS
IBM

Linux
0

20

40

60

% of IT Decision Makers

80

File/Print Services
Network Access Services
Directory/Security Services
Kernel

Platform Features

MSMQ

Windows Media Services

Windows Server
Distributed File Service STS
VPN

RAS

PKI

Smart Card

Active Directory WMI Kerberos

Consistent
Interfaces

3rd Party Products

?

OpenOffice
?

?

Real or Darwin Media Server*
?

Apache
Samba
OpenLDAP
?

?

Linux Kernel

Windows Kernel
Common
Mgmt Infra

?

?

Sendmail

3rd Party Products

Mobile Info Svr

Transaction Service

JBOSS

Single
Sign-On

Customer Requirements Microsoft Platform

?

Linux Platform

**Some services not available in Linux distributions are available at additional cost from vendors such as IBM

?

Web Services

J2EE/PHP

.NET Framework IIS ASP.NET

?

Media Services

MySQL

Visual Studio.NET

Application Services

SMS 2003, MOM 2005

Programming Frameworks

SQL Server

Integrated Development Tools

Integrated Management Tools

Integrated Data Management

Office 2003

BizTalk, CS2002

MMS, ISA, AD

Exchange, SPS

Other

Mobility

Productivity

Commerce

Identity Mgmt

Collaboration

Integrated Innovation

Customer Value – Local Evidence
TZUM – Retail (Bulgaria)
TZUM switched from Linux to Windows Server 2003 for
better integration and easier management. Its new IT
infrastructure runs 30% more efficiently
Zotel – Telecommunications (Poland)
Switch from Linux to Microsoft reduces IT costs by 30%

Duna TV – Media Service Provider (Hungary)
Switch to Microsoft Exchange Server 2003 from Linux
cuts operating costs by half
Romgaz – Utility (Romania)
Evaluated Linux and OSS but chose Microsoft because of
ease-of-use, support and features
Ahold – Retail (Czech Republic)
Consolidation from Linux and Novell to Windows
infrastructure

IDC EMEA Economic Impact Study, 2004
• Update of preceding Economic Impact Model studies

• Analyzes the specific contributions of the software
sector
• This research covered 19 countries (~82% of IT
spending in EMEA):
Austria
Denmark
France
Germany
Ireland
Italy
Netherlands
Portugal
Spain
UK

Czech Republic
Estonia
Hungary
Lithuania
Russia
Poland
Israel
South Africa
Turkey

Microsoft-Related Economic Impact
Microsoft-Related Employees in 2004*

C ze c h R e p
E s to n ia
H u n g a ry
L ith u a n ia
P o la n d
R u s s ia
T o ta l E E G ro u p

S e rvic e s &

IT

H a rd w a re

S o ftw a re

C h a n n e ls

P ro fe s s io n a ls

T o ta l

% T o ta l

1 ,6 8 6
510
1 ,2 4 7
854
3 ,8 0 1
7 ,9 3 7

599
209
446
287
838
656

1 2 ,6 5 1
2 ,3 6 4
8 ,9 1 0
6 ,4 0 2
2 1 ,9 7 4
3 8 ,5 1 2

3 4 ,2 2 1
3 ,0 9 1
2 5 ,9 1 3
3 ,7 1 4
7 0 ,0 1 6
1 3 1 ,2 8 6

4 9 ,1 5 7
6 ,1 7 4
3 6 ,5 1 6
1 1 ,2 5 7
9 6 ,6 3 0
1 7 8 ,3 9 1

40%
54%
41%
54%
50%
55%

1 6 ,0 3 6

3 ,0 3 5

9 0 ,8 1 4

2 6 8 ,2 4 1

3 7 8 ,1 2 5

49%

Microsoft-Related Taxes ($M)**
C zech R ep
E stonia
H ungary
Lithuania
P oland
R ussia
To tal E E G ro u p

$181
$29
$231
$26
$565
$279
$1,312

* Employees in companies that create, sell, distribute, or service hardware or software that runs on Microsoft operating systems and IT employees at user organization that develop
applications, service, or maintain such hardware or software
** Includes value-added or sales taxes, corporate income taxes, and personal income and social taxes

Source: IDC IT Economic Impact Study, 2004, 19 Countries

Economic Impact Study in Slovakia, 2003
Run by Institute of Slovak and World Economy – part
of Slovak Academy of Science
Impact of IT on economic growth
Position the Slovak IT sector in regional and global
perspectives
Compare impact of IT sector with other branches
Microsoft contribution to Slovak IT sector

Analyzes the impact made by the commercial software
model and Microsoft on the local economy
1 SK spent on purchasing of software from Microsoft would
generate a nearly 7 SK effect on the Slovak economy

Software Industry Trends in Latvia, 2004
Research conducted by Latvian Information Technology
and Telecommunication Association (LITTA)
Analyzes the business trends in software development,
service and distribution industry
Usage of commercial and open source platforms in business
and company resources invested in each of these platforms.
Assessment of economic impact of the software industry trends
on the national economy

Findings:
Commercial software model creates the highest value added
for their company - 100% of all respondents
Commercial platform is considered with lower total
development costs

IDC IT Economic Impact Study, 2005

Economic Impact of the IT Sector
in South East Europe
The research covers 6 countries:
Bulgaria
Croatia
Macedonia
Romania

Serbia and Montenegro
Slovenia

Microsoft Related Employment
Total IT
Employees
in 2004

MicrosoftRelated
Employees
in 2004*

% Total

MicrosoftRelated
Taxes
($M)**

Bulgaria

27.462

14.285

52%

$32,2

Croatia

20.044

9.365

47%

$73,0

2.894

1.613

56%

$6,6

Romania

29.251

18.995

65%

$63,7

Slovenia

18.222

8.483

47%

$109,2

Serbia & Montenegro

24.173

11.844

49%

$27

122.046

64.585

53%

$311

Macedonia

Total Group

Source: IDC IT Economic Impact Study, 2005, 6 South East European Countries

Revenues
In SEE the IT sector generates over $600 million in tax
receipts
Includes value-added or sales taxes, corporate income taxes,
and personal income and social taxes

Over $300 million of this is attributed to companies
and employees working with Microsoft products
1 : 8.5
For every dollar of Microsoft revenue in the region, another
eight and a half were generated by other companies selling
hardware or software that works on Microsoft operating
systems, or servicing that software

Source: IDC IT Economic Impact Study, 2005, 6 South East European Countries

Government
Policy
Industry
Interoperability

Security & Quality
Ongoing Relationship
Indemnification
Support

Productivity partner
Breakthroughs
Integration
Manageability

Applications
Compatibility
Hardware
Partners

© 2004 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.


Slide 22

Delivering Value to Our
Customers and Partners
Dan Bulucea
Platform Strategy Manager
Microsoft Eastern Europe

Agenda
Market Overview
Microsoft’s Commitment to Customers
Integrated Innovation Advantage
Economic Impact of IT
Why Microsoft

Market Overview
IT Industry Trends
Everyone agrees on one thing: the move
to x86
Price/performance and flexibility driving change

Focus on security
Increasing pressures to do more with less
Broad web services movement
24x7 availability essential in a global
economy

Market Overview
Market Trends
IBM want this to be all about their services
“Devalue” the platform and monopolize service
opportunities

Novell connecting the dots with strategic
acquisitions
Attempting an end-to-end platform play on Linux

Oracle supporting Linux adoption
Sun delivering strategy “du jour”
Customer demands, platform challenges, cost models

New companies developing roots in the market
(e.g., RedHat, MySQL, other Open Source
vendors)

Customers Told Us…
Customer Requirement

Microsoft Commitment

Increase economic value

Best Value

Protect my data

Stronger
Security

Reduce downtime

Reliability
and Availability

Leverage existing assets

Interoperability

Connect with customers (Revenue)
Integrate with partners (Profitability)
Empower employees (Productivity)

Integrated
Innovation

Proof Of Our Commitment To Customers
Microsoft Commitment

Best value
Stronger
Security
Reliability
and Availability
Interoperability

Integrated
Innovation
Go to www.getthefacts.com for complete reports

Third Party Validation

Best Value
Does Linux cost less to acquire?

Source: Bearing Point, Server Operating System Licensing and
Support Cost Comparison – May 2004
** Full Support indicates 24x7 support on all servers. Limited
Support indicates 24x7 support on only 10% of servers.

Best Value
Does Linux have lower TCO?

Noncommissioned Studies:

Security
OS Bulletins - 2003

An industry problem…
Companies Detecting
Security Breaches

92%
Source: 2003 Computer Security Institute survey
of 250 major US companies

…a Microsoft priority
SD3+C
Secure by:
Design
Default
Deployment
Communications

125
100
75
1
250
25
0

RedHat
Microsoft

120

87
43
2002

39
2003

Source: OS Bulletins from Vendor Web Sites

180 Days Later

57

60
45
30

32

34

14

15
0

RH8

RH9

WS00 WS03

Security
Is Linux more secure?

All Days of Risk
25

Microsoft
RedHat

57

Debian

57

128

82

Microsoft

74
0

20

40

Source: “Is Windows More Secure than Linux?”, Forrester, March 2004

60

120

86

MandrakeSoft
SUSE

162

80

100

Red Hat

Debian

Mandrake
Soft

Source: Forrester Research: http://www.forrester.com/Research/Document/
Excerpt/0,7211,33941,00.html

111

SUSE

Security
Is Linux more secure?
Common
Customer Questions

Forrester Response:
“What matters”

Forrester
Analysis

1.

“Linux distributions
say they can fix
things within just
hours, why can’t
Microsoft do that?”

“Microsoft’s average
of 25 days between disclosure & release of a
fix was the lowest of all the platform
maintainers we evaluated.”

2.

“Doesn’t Linux have
fewer bugs and
aren’t they less
severe than
Windows bugs?”

Forrester analysis shows Microsoft having
the fewest high-severity flaws of any vendor
– and 25 less than the next lowest

3.

“Isn’t open source
software better at
fixing vulnerabilities
than Microsoft?”

Forrester analysis shows Microsoft as the
only vendor to fix 100% of the flaws
discovered

Reliability
VeriTest Proof of our System Reliability

End User Pain
Average Service Loss Time
HH:MM:SS

More reliable

4:59:44
4.5

4:20:19

4

Hours

Windows prevented 4x more events
Windows detected over 2x as many issues
before the trouble ticket was received
Windows system issues (created by test
proctor) were resolved 20% faster and 8%
more successfully

5

3.5
3
2.5
2

Windows

Linux

Configuring the Environment
Total Time for Completed Tasks*

Easier to Maintain
25

20:55:13
20

Hours

Windows required approx. 50% less time to
complete directory-related tasks with Active
Directory vs. OpenLDAP
Windows tape drive and printer
configurations were completed over 2x faster
Improving system fault tolerance/redundancy
required >2x more time for Linux

HH:MM:SS

15

13:11:56

10
5
0

Windows

Linux

*21% more “proactive” tasks completed on Windows

Interoperability
Microsoft’s Approach
Enable Microsoft technology to work well with
Windows and non-Windows applications
Develop solutions based on industry standards

Provide rich services
that address key
business scenarios
Enable ISVs to
develop solutions and
solve niche needs

MS Interoperability Model

Interoperability
Developer Priorities

Interoperability is
very important

Interop

65%

48%
44%

Security
Support
0

20

40

60

80

Interoperability Prioritization

Windows
interoperability
is first priority

79%

Windows

43%

Unix
Linux

22%
0

20

40

60

80

Best Support of Interoperability

Microsoft is doing the
most to achieve
interoperability goals
Source: Jupiter research survey, 12/03

72%
63%
55%

MS
IBM

Linux
0

20

40

60

% of IT Decision Makers

80

File/Print Services
Network Access Services
Directory/Security Services
Kernel

Platform Features

MSMQ

Windows Media Services

Windows Server
Distributed File Service STS
VPN

RAS

PKI

Smart Card

Active Directory WMI Kerberos

Consistent
Interfaces

3rd Party Products

?

OpenOffice
?

?

Real or Darwin Media Server*
?

Apache
Samba
OpenLDAP
?

?

Linux Kernel

Windows Kernel
Common
Mgmt Infra

?

?

Sendmail

3rd Party Products

Mobile Info Svr

Transaction Service

JBOSS

Single
Sign-On

Customer Requirements Microsoft Platform

?

Linux Platform

**Some services not available in Linux distributions are available at additional cost from vendors such as IBM

?

Web Services

J2EE/PHP

.NET Framework IIS ASP.NET

?

Media Services

MySQL

Visual Studio.NET

Application Services

SMS 2003, MOM 2005

Programming Frameworks

SQL Server

Integrated Development Tools

Integrated Management Tools

Integrated Data Management

Office 2003

BizTalk, CS2002

MMS, ISA, AD

Exchange, SPS

Other

Mobility

Productivity

Commerce

Identity Mgmt

Collaboration

Integrated Innovation

Customer Value – Local Evidence
TZUM – Retail (Bulgaria)
TZUM switched from Linux to Windows Server 2003 for
better integration and easier management. Its new IT
infrastructure runs 30% more efficiently
Zotel – Telecommunications (Poland)
Switch from Linux to Microsoft reduces IT costs by 30%

Duna TV – Media Service Provider (Hungary)
Switch to Microsoft Exchange Server 2003 from Linux
cuts operating costs by half
Romgaz – Utility (Romania)
Evaluated Linux and OSS but chose Microsoft because of
ease-of-use, support and features
Ahold – Retail (Czech Republic)
Consolidation from Linux and Novell to Windows
infrastructure

IDC EMEA Economic Impact Study, 2004
• Update of preceding Economic Impact Model studies

• Analyzes the specific contributions of the software
sector
• This research covered 19 countries (~82% of IT
spending in EMEA):
Austria
Denmark
France
Germany
Ireland
Italy
Netherlands
Portugal
Spain
UK

Czech Republic
Estonia
Hungary
Lithuania
Russia
Poland
Israel
South Africa
Turkey

Microsoft-Related Economic Impact
Microsoft-Related Employees in 2004*

C ze c h R e p
E s to n ia
H u n g a ry
L ith u a n ia
P o la n d
R u s s ia
T o ta l E E G ro u p

S e rvic e s &

IT

H a rd w a re

S o ftw a re

C h a n n e ls

P ro fe s s io n a ls

T o ta l

% T o ta l

1 ,6 8 6
510
1 ,2 4 7
854
3 ,8 0 1
7 ,9 3 7

599
209
446
287
838
656

1 2 ,6 5 1
2 ,3 6 4
8 ,9 1 0
6 ,4 0 2
2 1 ,9 7 4
3 8 ,5 1 2

3 4 ,2 2 1
3 ,0 9 1
2 5 ,9 1 3
3 ,7 1 4
7 0 ,0 1 6
1 3 1 ,2 8 6

4 9 ,1 5 7
6 ,1 7 4
3 6 ,5 1 6
1 1 ,2 5 7
9 6 ,6 3 0
1 7 8 ,3 9 1

40%
54%
41%
54%
50%
55%

1 6 ,0 3 6

3 ,0 3 5

9 0 ,8 1 4

2 6 8 ,2 4 1

3 7 8 ,1 2 5

49%

Microsoft-Related Taxes ($M)**
C zech R ep
E stonia
H ungary
Lithuania
P oland
R ussia
To tal E E G ro u p

$181
$29
$231
$26
$565
$279
$1,312

* Employees in companies that create, sell, distribute, or service hardware or software that runs on Microsoft operating systems and IT employees at user organization that develop
applications, service, or maintain such hardware or software
** Includes value-added or sales taxes, corporate income taxes, and personal income and social taxes

Source: IDC IT Economic Impact Study, 2004, 19 Countries

Economic Impact Study in Slovakia, 2003
Run by Institute of Slovak and World Economy – part
of Slovak Academy of Science
Impact of IT on economic growth
Position the Slovak IT sector in regional and global
perspectives
Compare impact of IT sector with other branches
Microsoft contribution to Slovak IT sector

Analyzes the impact made by the commercial software
model and Microsoft on the local economy
1 SK spent on purchasing of software from Microsoft would
generate a nearly 7 SK effect on the Slovak economy

Software Industry Trends in Latvia, 2004
Research conducted by Latvian Information Technology
and Telecommunication Association (LITTA)
Analyzes the business trends in software development,
service and distribution industry
Usage of commercial and open source platforms in business
and company resources invested in each of these platforms.
Assessment of economic impact of the software industry trends
on the national economy

Findings:
Commercial software model creates the highest value added
for their company - 100% of all respondents
Commercial platform is considered with lower total
development costs

IDC IT Economic Impact Study, 2005

Economic Impact of the IT Sector
in South East Europe
The research covers 6 countries:
Bulgaria
Croatia
Macedonia
Romania

Serbia and Montenegro
Slovenia

Microsoft Related Employment
Total IT
Employees
in 2004

MicrosoftRelated
Employees
in 2004*

% Total

MicrosoftRelated
Taxes
($M)**

Bulgaria

27.462

14.285

52%

$32,2

Croatia

20.044

9.365

47%

$73,0

2.894

1.613

56%

$6,6

Romania

29.251

18.995

65%

$63,7

Slovenia

18.222

8.483

47%

$109,2

Serbia & Montenegro

24.173

11.844

49%

$27

122.046

64.585

53%

$311

Macedonia

Total Group

Source: IDC IT Economic Impact Study, 2005, 6 South East European Countries

Revenues
In SEE the IT sector generates over $600 million in tax
receipts
Includes value-added or sales taxes, corporate income taxes,
and personal income and social taxes

Over $300 million of this is attributed to companies
and employees working with Microsoft products
1 : 8.5
For every dollar of Microsoft revenue in the region, another
eight and a half were generated by other companies selling
hardware or software that works on Microsoft operating
systems, or servicing that software

Source: IDC IT Economic Impact Study, 2005, 6 South East European Countries

Government
Policy
Industry
Interoperability

Security & Quality
Ongoing Relationship
Indemnification
Support

Productivity partner
Breakthroughs
Integration
Manageability

Applications
Compatibility
Hardware
Partners

© 2004 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.


Slide 23

Delivering Value to Our
Customers and Partners
Dan Bulucea
Platform Strategy Manager
Microsoft Eastern Europe

Agenda
Market Overview
Microsoft’s Commitment to Customers
Integrated Innovation Advantage
Economic Impact of IT
Why Microsoft

Market Overview
IT Industry Trends
Everyone agrees on one thing: the move
to x86
Price/performance and flexibility driving change

Focus on security
Increasing pressures to do more with less
Broad web services movement
24x7 availability essential in a global
economy

Market Overview
Market Trends
IBM want this to be all about their services
“Devalue” the platform and monopolize service
opportunities

Novell connecting the dots with strategic
acquisitions
Attempting an end-to-end platform play on Linux

Oracle supporting Linux adoption
Sun delivering strategy “du jour”
Customer demands, platform challenges, cost models

New companies developing roots in the market
(e.g., RedHat, MySQL, other Open Source
vendors)

Customers Told Us…
Customer Requirement

Microsoft Commitment

Increase economic value

Best Value

Protect my data

Stronger
Security

Reduce downtime

Reliability
and Availability

Leverage existing assets

Interoperability

Connect with customers (Revenue)
Integrate with partners (Profitability)
Empower employees (Productivity)

Integrated
Innovation

Proof Of Our Commitment To Customers
Microsoft Commitment

Best value
Stronger
Security
Reliability
and Availability
Interoperability

Integrated
Innovation
Go to www.getthefacts.com for complete reports

Third Party Validation

Best Value
Does Linux cost less to acquire?

Source: Bearing Point, Server Operating System Licensing and
Support Cost Comparison – May 2004
** Full Support indicates 24x7 support on all servers. Limited
Support indicates 24x7 support on only 10% of servers.

Best Value
Does Linux have lower TCO?

Noncommissioned Studies:

Security
OS Bulletins - 2003

An industry problem…
Companies Detecting
Security Breaches

92%
Source: 2003 Computer Security Institute survey
of 250 major US companies

…a Microsoft priority
SD3+C
Secure by:
Design
Default
Deployment
Communications

125
100
75
1
250
25
0

RedHat
Microsoft

120

87
43
2002

39
2003

Source: OS Bulletins from Vendor Web Sites

180 Days Later

57

60
45
30

32

34

14

15
0

RH8

RH9

WS00 WS03

Security
Is Linux more secure?

All Days of Risk
25

Microsoft
RedHat

57

Debian

57

128

82

Microsoft

74
0

20

40

Source: “Is Windows More Secure than Linux?”, Forrester, March 2004

60

120

86

MandrakeSoft
SUSE

162

80

100

Red Hat

Debian

Mandrake
Soft

Source: Forrester Research: http://www.forrester.com/Research/Document/
Excerpt/0,7211,33941,00.html

111

SUSE

Security
Is Linux more secure?
Common
Customer Questions

Forrester Response:
“What matters”

Forrester
Analysis

1.

“Linux distributions
say they can fix
things within just
hours, why can’t
Microsoft do that?”

“Microsoft’s average
of 25 days between disclosure & release of a
fix was the lowest of all the platform
maintainers we evaluated.”

2.

“Doesn’t Linux have
fewer bugs and
aren’t they less
severe than
Windows bugs?”

Forrester analysis shows Microsoft having
the fewest high-severity flaws of any vendor
– and 25 less than the next lowest

3.

“Isn’t open source
software better at
fixing vulnerabilities
than Microsoft?”

Forrester analysis shows Microsoft as the
only vendor to fix 100% of the flaws
discovered

Reliability
VeriTest Proof of our System Reliability

End User Pain
Average Service Loss Time
HH:MM:SS

More reliable

4:59:44
4.5

4:20:19

4

Hours

Windows prevented 4x more events
Windows detected over 2x as many issues
before the trouble ticket was received
Windows system issues (created by test
proctor) were resolved 20% faster and 8%
more successfully

5

3.5
3
2.5
2

Windows

Linux

Configuring the Environment
Total Time for Completed Tasks*

Easier to Maintain
25

20:55:13
20

Hours

Windows required approx. 50% less time to
complete directory-related tasks with Active
Directory vs. OpenLDAP
Windows tape drive and printer
configurations were completed over 2x faster
Improving system fault tolerance/redundancy
required >2x more time for Linux

HH:MM:SS

15

13:11:56

10
5
0

Windows

Linux

*21% more “proactive” tasks completed on Windows

Interoperability
Microsoft’s Approach
Enable Microsoft technology to work well with
Windows and non-Windows applications
Develop solutions based on industry standards

Provide rich services
that address key
business scenarios
Enable ISVs to
develop solutions and
solve niche needs

MS Interoperability Model

Interoperability
Developer Priorities

Interoperability is
very important

Interop

65%

48%
44%

Security
Support
0

20

40

60

80

Interoperability Prioritization

Windows
interoperability
is first priority

79%

Windows

43%

Unix
Linux

22%
0

20

40

60

80

Best Support of Interoperability

Microsoft is doing the
most to achieve
interoperability goals
Source: Jupiter research survey, 12/03

72%
63%
55%

MS
IBM

Linux
0

20

40

60

% of IT Decision Makers

80

File/Print Services
Network Access Services
Directory/Security Services
Kernel

Platform Features

MSMQ

Windows Media Services

Windows Server
Distributed File Service STS
VPN

RAS

PKI

Smart Card

Active Directory WMI Kerberos

Consistent
Interfaces

3rd Party Products

?

OpenOffice
?

?

Real or Darwin Media Server*
?

Apache
Samba
OpenLDAP
?

?

Linux Kernel

Windows Kernel
Common
Mgmt Infra

?

?

Sendmail

3rd Party Products

Mobile Info Svr

Transaction Service

JBOSS

Single
Sign-On

Customer Requirements Microsoft Platform

?

Linux Platform

**Some services not available in Linux distributions are available at additional cost from vendors such as IBM

?

Web Services

J2EE/PHP

.NET Framework IIS ASP.NET

?

Media Services

MySQL

Visual Studio.NET

Application Services

SMS 2003, MOM 2005

Programming Frameworks

SQL Server

Integrated Development Tools

Integrated Management Tools

Integrated Data Management

Office 2003

BizTalk, CS2002

MMS, ISA, AD

Exchange, SPS

Other

Mobility

Productivity

Commerce

Identity Mgmt

Collaboration

Integrated Innovation

Customer Value – Local Evidence
TZUM – Retail (Bulgaria)
TZUM switched from Linux to Windows Server 2003 for
better integration and easier management. Its new IT
infrastructure runs 30% more efficiently
Zotel – Telecommunications (Poland)
Switch from Linux to Microsoft reduces IT costs by 30%

Duna TV – Media Service Provider (Hungary)
Switch to Microsoft Exchange Server 2003 from Linux
cuts operating costs by half
Romgaz – Utility (Romania)
Evaluated Linux and OSS but chose Microsoft because of
ease-of-use, support and features
Ahold – Retail (Czech Republic)
Consolidation from Linux and Novell to Windows
infrastructure

IDC EMEA Economic Impact Study, 2004
• Update of preceding Economic Impact Model studies

• Analyzes the specific contributions of the software
sector
• This research covered 19 countries (~82% of IT
spending in EMEA):
Austria
Denmark
France
Germany
Ireland
Italy
Netherlands
Portugal
Spain
UK

Czech Republic
Estonia
Hungary
Lithuania
Russia
Poland
Israel
South Africa
Turkey

Microsoft-Related Economic Impact
Microsoft-Related Employees in 2004*

C ze c h R e p
E s to n ia
H u n g a ry
L ith u a n ia
P o la n d
R u s s ia
T o ta l E E G ro u p

S e rvic e s &

IT

H a rd w a re

S o ftw a re

C h a n n e ls

P ro fe s s io n a ls

T o ta l

% T o ta l

1 ,6 8 6
510
1 ,2 4 7
854
3 ,8 0 1
7 ,9 3 7

599
209
446
287
838
656

1 2 ,6 5 1
2 ,3 6 4
8 ,9 1 0
6 ,4 0 2
2 1 ,9 7 4
3 8 ,5 1 2

3 4 ,2 2 1
3 ,0 9 1
2 5 ,9 1 3
3 ,7 1 4
7 0 ,0 1 6
1 3 1 ,2 8 6

4 9 ,1 5 7
6 ,1 7 4
3 6 ,5 1 6
1 1 ,2 5 7
9 6 ,6 3 0
1 7 8 ,3 9 1

40%
54%
41%
54%
50%
55%

1 6 ,0 3 6

3 ,0 3 5

9 0 ,8 1 4

2 6 8 ,2 4 1

3 7 8 ,1 2 5

49%

Microsoft-Related Taxes ($M)**
C zech R ep
E stonia
H ungary
Lithuania
P oland
R ussia
To tal E E G ro u p

$181
$29
$231
$26
$565
$279
$1,312

* Employees in companies that create, sell, distribute, or service hardware or software that runs on Microsoft operating systems and IT employees at user organization that develop
applications, service, or maintain such hardware or software
** Includes value-added or sales taxes, corporate income taxes, and personal income and social taxes

Source: IDC IT Economic Impact Study, 2004, 19 Countries

Economic Impact Study in Slovakia, 2003
Run by Institute of Slovak and World Economy – part
of Slovak Academy of Science
Impact of IT on economic growth
Position the Slovak IT sector in regional and global
perspectives
Compare impact of IT sector with other branches
Microsoft contribution to Slovak IT sector

Analyzes the impact made by the commercial software
model and Microsoft on the local economy
1 SK spent on purchasing of software from Microsoft would
generate a nearly 7 SK effect on the Slovak economy

Software Industry Trends in Latvia, 2004
Research conducted by Latvian Information Technology
and Telecommunication Association (LITTA)
Analyzes the business trends in software development,
service and distribution industry
Usage of commercial and open source platforms in business
and company resources invested in each of these platforms.
Assessment of economic impact of the software industry trends
on the national economy

Findings:
Commercial software model creates the highest value added
for their company - 100% of all respondents
Commercial platform is considered with lower total
development costs

IDC IT Economic Impact Study, 2005

Economic Impact of the IT Sector
in South East Europe
The research covers 6 countries:
Bulgaria
Croatia
Macedonia
Romania

Serbia and Montenegro
Slovenia

Microsoft Related Employment
Total IT
Employees
in 2004

MicrosoftRelated
Employees
in 2004*

% Total

MicrosoftRelated
Taxes
($M)**

Bulgaria

27.462

14.285

52%

$32,2

Croatia

20.044

9.365

47%

$73,0

2.894

1.613

56%

$6,6

Romania

29.251

18.995

65%

$63,7

Slovenia

18.222

8.483

47%

$109,2

Serbia & Montenegro

24.173

11.844

49%

$27

122.046

64.585

53%

$311

Macedonia

Total Group

Source: IDC IT Economic Impact Study, 2005, 6 South East European Countries

Revenues
In SEE the IT sector generates over $600 million in tax
receipts
Includes value-added or sales taxes, corporate income taxes,
and personal income and social taxes

Over $300 million of this is attributed to companies
and employees working with Microsoft products
1 : 8.5
For every dollar of Microsoft revenue in the region, another
eight and a half were generated by other companies selling
hardware or software that works on Microsoft operating
systems, or servicing that software

Source: IDC IT Economic Impact Study, 2005, 6 South East European Countries

Government
Policy
Industry
Interoperability

Security & Quality
Ongoing Relationship
Indemnification
Support

Productivity partner
Breakthroughs
Integration
Manageability

Applications
Compatibility
Hardware
Partners

© 2004 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.


Slide 24

Delivering Value to Our
Customers and Partners
Dan Bulucea
Platform Strategy Manager
Microsoft Eastern Europe

Agenda
Market Overview
Microsoft’s Commitment to Customers
Integrated Innovation Advantage
Economic Impact of IT
Why Microsoft

Market Overview
IT Industry Trends
Everyone agrees on one thing: the move
to x86
Price/performance and flexibility driving change

Focus on security
Increasing pressures to do more with less
Broad web services movement
24x7 availability essential in a global
economy

Market Overview
Market Trends
IBM want this to be all about their services
“Devalue” the platform and monopolize service
opportunities

Novell connecting the dots with strategic
acquisitions
Attempting an end-to-end platform play on Linux

Oracle supporting Linux adoption
Sun delivering strategy “du jour”
Customer demands, platform challenges, cost models

New companies developing roots in the market
(e.g., RedHat, MySQL, other Open Source
vendors)

Customers Told Us…
Customer Requirement

Microsoft Commitment

Increase economic value

Best Value

Protect my data

Stronger
Security

Reduce downtime

Reliability
and Availability

Leverage existing assets

Interoperability

Connect with customers (Revenue)
Integrate with partners (Profitability)
Empower employees (Productivity)

Integrated
Innovation

Proof Of Our Commitment To Customers
Microsoft Commitment

Best value
Stronger
Security
Reliability
and Availability
Interoperability

Integrated
Innovation
Go to www.getthefacts.com for complete reports

Third Party Validation

Best Value
Does Linux cost less to acquire?

Source: Bearing Point, Server Operating System Licensing and
Support Cost Comparison – May 2004
** Full Support indicates 24x7 support on all servers. Limited
Support indicates 24x7 support on only 10% of servers.

Best Value
Does Linux have lower TCO?

Noncommissioned Studies:

Security
OS Bulletins - 2003

An industry problem…
Companies Detecting
Security Breaches

92%
Source: 2003 Computer Security Institute survey
of 250 major US companies

…a Microsoft priority
SD3+C
Secure by:
Design
Default
Deployment
Communications

125
100
75
1
250
25
0

RedHat
Microsoft

120

87
43
2002

39
2003

Source: OS Bulletins from Vendor Web Sites

180 Days Later

57

60
45
30

32

34

14

15
0

RH8

RH9

WS00 WS03

Security
Is Linux more secure?

All Days of Risk
25

Microsoft
RedHat

57

Debian

57

128

82

Microsoft

74
0

20

40

Source: “Is Windows More Secure than Linux?”, Forrester, March 2004

60

120

86

MandrakeSoft
SUSE

162

80

100

Red Hat

Debian

Mandrake
Soft

Source: Forrester Research: http://www.forrester.com/Research/Document/
Excerpt/0,7211,33941,00.html

111

SUSE

Security
Is Linux more secure?
Common
Customer Questions

Forrester Response:
“What matters”

Forrester
Analysis

1.

“Linux distributions
say they can fix
things within just
hours, why can’t
Microsoft do that?”

“Microsoft’s average
of 25 days between disclosure & release of a
fix was the lowest of all the platform
maintainers we evaluated.”

2.

“Doesn’t Linux have
fewer bugs and
aren’t they less
severe than
Windows bugs?”

Forrester analysis shows Microsoft having
the fewest high-severity flaws of any vendor
– and 25 less than the next lowest

3.

“Isn’t open source
software better at
fixing vulnerabilities
than Microsoft?”

Forrester analysis shows Microsoft as the
only vendor to fix 100% of the flaws
discovered

Reliability
VeriTest Proof of our System Reliability

End User Pain
Average Service Loss Time
HH:MM:SS

More reliable

4:59:44
4.5

4:20:19

4

Hours

Windows prevented 4x more events
Windows detected over 2x as many issues
before the trouble ticket was received
Windows system issues (created by test
proctor) were resolved 20% faster and 8%
more successfully

5

3.5
3
2.5
2

Windows

Linux

Configuring the Environment
Total Time for Completed Tasks*

Easier to Maintain
25

20:55:13
20

Hours

Windows required approx. 50% less time to
complete directory-related tasks with Active
Directory vs. OpenLDAP
Windows tape drive and printer
configurations were completed over 2x faster
Improving system fault tolerance/redundancy
required >2x more time for Linux

HH:MM:SS

15

13:11:56

10
5
0

Windows

Linux

*21% more “proactive” tasks completed on Windows

Interoperability
Microsoft’s Approach
Enable Microsoft technology to work well with
Windows and non-Windows applications
Develop solutions based on industry standards

Provide rich services
that address key
business scenarios
Enable ISVs to
develop solutions and
solve niche needs

MS Interoperability Model

Interoperability
Developer Priorities

Interoperability is
very important

Interop

65%

48%
44%

Security
Support
0

20

40

60

80

Interoperability Prioritization

Windows
interoperability
is first priority

79%

Windows

43%

Unix
Linux

22%
0

20

40

60

80

Best Support of Interoperability

Microsoft is doing the
most to achieve
interoperability goals
Source: Jupiter research survey, 12/03

72%
63%
55%

MS
IBM

Linux
0

20

40

60

% of IT Decision Makers

80

File/Print Services
Network Access Services
Directory/Security Services
Kernel

Platform Features

MSMQ

Windows Media Services

Windows Server
Distributed File Service STS
VPN

RAS

PKI

Smart Card

Active Directory WMI Kerberos

Consistent
Interfaces

3rd Party Products

?

OpenOffice
?

?

Real or Darwin Media Server*
?

Apache
Samba
OpenLDAP
?

?

Linux Kernel

Windows Kernel
Common
Mgmt Infra

?

?

Sendmail

3rd Party Products

Mobile Info Svr

Transaction Service

JBOSS

Single
Sign-On

Customer Requirements Microsoft Platform

?

Linux Platform

**Some services not available in Linux distributions are available at additional cost from vendors such as IBM

?

Web Services

J2EE/PHP

.NET Framework IIS ASP.NET

?

Media Services

MySQL

Visual Studio.NET

Application Services

SMS 2003, MOM 2005

Programming Frameworks

SQL Server

Integrated Development Tools

Integrated Management Tools

Integrated Data Management

Office 2003

BizTalk, CS2002

MMS, ISA, AD

Exchange, SPS

Other

Mobility

Productivity

Commerce

Identity Mgmt

Collaboration

Integrated Innovation

Customer Value – Local Evidence
TZUM – Retail (Bulgaria)
TZUM switched from Linux to Windows Server 2003 for
better integration and easier management. Its new IT
infrastructure runs 30% more efficiently
Zotel – Telecommunications (Poland)
Switch from Linux to Microsoft reduces IT costs by 30%

Duna TV – Media Service Provider (Hungary)
Switch to Microsoft Exchange Server 2003 from Linux
cuts operating costs by half
Romgaz – Utility (Romania)
Evaluated Linux and OSS but chose Microsoft because of
ease-of-use, support and features
Ahold – Retail (Czech Republic)
Consolidation from Linux and Novell to Windows
infrastructure

IDC EMEA Economic Impact Study, 2004
• Update of preceding Economic Impact Model studies

• Analyzes the specific contributions of the software
sector
• This research covered 19 countries (~82% of IT
spending in EMEA):
Austria
Denmark
France
Germany
Ireland
Italy
Netherlands
Portugal
Spain
UK

Czech Republic
Estonia
Hungary
Lithuania
Russia
Poland
Israel
South Africa
Turkey

Microsoft-Related Economic Impact
Microsoft-Related Employees in 2004*

C ze c h R e p
E s to n ia
H u n g a ry
L ith u a n ia
P o la n d
R u s s ia
T o ta l E E G ro u p

S e rvic e s &

IT

H a rd w a re

S o ftw a re

C h a n n e ls

P ro fe s s io n a ls

T o ta l

% T o ta l

1 ,6 8 6
510
1 ,2 4 7
854
3 ,8 0 1
7 ,9 3 7

599
209
446
287
838
656

1 2 ,6 5 1
2 ,3 6 4
8 ,9 1 0
6 ,4 0 2
2 1 ,9 7 4
3 8 ,5 1 2

3 4 ,2 2 1
3 ,0 9 1
2 5 ,9 1 3
3 ,7 1 4
7 0 ,0 1 6
1 3 1 ,2 8 6

4 9 ,1 5 7
6 ,1 7 4
3 6 ,5 1 6
1 1 ,2 5 7
9 6 ,6 3 0
1 7 8 ,3 9 1

40%
54%
41%
54%
50%
55%

1 6 ,0 3 6

3 ,0 3 5

9 0 ,8 1 4

2 6 8 ,2 4 1

3 7 8 ,1 2 5

49%

Microsoft-Related Taxes ($M)**
C zech R ep
E stonia
H ungary
Lithuania
P oland
R ussia
To tal E E G ro u p

$181
$29
$231
$26
$565
$279
$1,312

* Employees in companies that create, sell, distribute, or service hardware or software that runs on Microsoft operating systems and IT employees at user organization that develop
applications, service, or maintain such hardware or software
** Includes value-added or sales taxes, corporate income taxes, and personal income and social taxes

Source: IDC IT Economic Impact Study, 2004, 19 Countries

Economic Impact Study in Slovakia, 2003
Run by Institute of Slovak and World Economy – part
of Slovak Academy of Science
Impact of IT on economic growth
Position the Slovak IT sector in regional and global
perspectives
Compare impact of IT sector with other branches
Microsoft contribution to Slovak IT sector

Analyzes the impact made by the commercial software
model and Microsoft on the local economy
1 SK spent on purchasing of software from Microsoft would
generate a nearly 7 SK effect on the Slovak economy

Software Industry Trends in Latvia, 2004
Research conducted by Latvian Information Technology
and Telecommunication Association (LITTA)
Analyzes the business trends in software development,
service and distribution industry
Usage of commercial and open source platforms in business
and company resources invested in each of these platforms.
Assessment of economic impact of the software industry trends
on the national economy

Findings:
Commercial software model creates the highest value added
for their company - 100% of all respondents
Commercial platform is considered with lower total
development costs

IDC IT Economic Impact Study, 2005

Economic Impact of the IT Sector
in South East Europe
The research covers 6 countries:
Bulgaria
Croatia
Macedonia
Romania

Serbia and Montenegro
Slovenia

Microsoft Related Employment
Total IT
Employees
in 2004

MicrosoftRelated
Employees
in 2004*

% Total

MicrosoftRelated
Taxes
($M)**

Bulgaria

27.462

14.285

52%

$32,2

Croatia

20.044

9.365

47%

$73,0

2.894

1.613

56%

$6,6

Romania

29.251

18.995

65%

$63,7

Slovenia

18.222

8.483

47%

$109,2

Serbia & Montenegro

24.173

11.844

49%

$27

122.046

64.585

53%

$311

Macedonia

Total Group

Source: IDC IT Economic Impact Study, 2005, 6 South East European Countries

Revenues
In SEE the IT sector generates over $600 million in tax
receipts
Includes value-added or sales taxes, corporate income taxes,
and personal income and social taxes

Over $300 million of this is attributed to companies
and employees working with Microsoft products
1 : 8.5
For every dollar of Microsoft revenue in the region, another
eight and a half were generated by other companies selling
hardware or software that works on Microsoft operating
systems, or servicing that software

Source: IDC IT Economic Impact Study, 2005, 6 South East European Countries

Government
Policy
Industry
Interoperability

Security & Quality
Ongoing Relationship
Indemnification
Support

Productivity partner
Breakthroughs
Integration
Manageability

Applications
Compatibility
Hardware
Partners

© 2004 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.


Slide 25

Delivering Value to Our
Customers and Partners
Dan Bulucea
Platform Strategy Manager
Microsoft Eastern Europe

Agenda
Market Overview
Microsoft’s Commitment to Customers
Integrated Innovation Advantage
Economic Impact of IT
Why Microsoft

Market Overview
IT Industry Trends
Everyone agrees on one thing: the move
to x86
Price/performance and flexibility driving change

Focus on security
Increasing pressures to do more with less
Broad web services movement
24x7 availability essential in a global
economy

Market Overview
Market Trends
IBM want this to be all about their services
“Devalue” the platform and monopolize service
opportunities

Novell connecting the dots with strategic
acquisitions
Attempting an end-to-end platform play on Linux

Oracle supporting Linux adoption
Sun delivering strategy “du jour”
Customer demands, platform challenges, cost models

New companies developing roots in the market
(e.g., RedHat, MySQL, other Open Source
vendors)

Customers Told Us…
Customer Requirement

Microsoft Commitment

Increase economic value

Best Value

Protect my data

Stronger
Security

Reduce downtime

Reliability
and Availability

Leverage existing assets

Interoperability

Connect with customers (Revenue)
Integrate with partners (Profitability)
Empower employees (Productivity)

Integrated
Innovation

Proof Of Our Commitment To Customers
Microsoft Commitment

Best value
Stronger
Security
Reliability
and Availability
Interoperability

Integrated
Innovation
Go to www.getthefacts.com for complete reports

Third Party Validation

Best Value
Does Linux cost less to acquire?

Source: Bearing Point, Server Operating System Licensing and
Support Cost Comparison – May 2004
** Full Support indicates 24x7 support on all servers. Limited
Support indicates 24x7 support on only 10% of servers.

Best Value
Does Linux have lower TCO?

Noncommissioned Studies:

Security
OS Bulletins - 2003

An industry problem…
Companies Detecting
Security Breaches

92%
Source: 2003 Computer Security Institute survey
of 250 major US companies

…a Microsoft priority
SD3+C
Secure by:
Design
Default
Deployment
Communications

125
100
75
1
250
25
0

RedHat
Microsoft

120

87
43
2002

39
2003

Source: OS Bulletins from Vendor Web Sites

180 Days Later

57

60
45
30

32

34

14

15
0

RH8

RH9

WS00 WS03

Security
Is Linux more secure?

All Days of Risk
25

Microsoft
RedHat

57

Debian

57

128

82

Microsoft

74
0

20

40

Source: “Is Windows More Secure than Linux?”, Forrester, March 2004

60

120

86

MandrakeSoft
SUSE

162

80

100

Red Hat

Debian

Mandrake
Soft

Source: Forrester Research: http://www.forrester.com/Research/Document/
Excerpt/0,7211,33941,00.html

111

SUSE

Security
Is Linux more secure?
Common
Customer Questions

Forrester Response:
“What matters”

Forrester
Analysis

1.

“Linux distributions
say they can fix
things within just
hours, why can’t
Microsoft do that?”

“Microsoft’s average
of 25 days between disclosure & release of a
fix was the lowest of all the platform
maintainers we evaluated.”

2.

“Doesn’t Linux have
fewer bugs and
aren’t they less
severe than
Windows bugs?”

Forrester analysis shows Microsoft having
the fewest high-severity flaws of any vendor
– and 25 less than the next lowest

3.

“Isn’t open source
software better at
fixing vulnerabilities
than Microsoft?”

Forrester analysis shows Microsoft as the
only vendor to fix 100% of the flaws
discovered

Reliability
VeriTest Proof of our System Reliability

End User Pain
Average Service Loss Time
HH:MM:SS

More reliable

4:59:44
4.5

4:20:19

4

Hours

Windows prevented 4x more events
Windows detected over 2x as many issues
before the trouble ticket was received
Windows system issues (created by test
proctor) were resolved 20% faster and 8%
more successfully

5

3.5
3
2.5
2

Windows

Linux

Configuring the Environment
Total Time for Completed Tasks*

Easier to Maintain
25

20:55:13
20

Hours

Windows required approx. 50% less time to
complete directory-related tasks with Active
Directory vs. OpenLDAP
Windows tape drive and printer
configurations were completed over 2x faster
Improving system fault tolerance/redundancy
required >2x more time for Linux

HH:MM:SS

15

13:11:56

10
5
0

Windows

Linux

*21% more “proactive” tasks completed on Windows

Interoperability
Microsoft’s Approach
Enable Microsoft technology to work well with
Windows and non-Windows applications
Develop solutions based on industry standards

Provide rich services
that address key
business scenarios
Enable ISVs to
develop solutions and
solve niche needs

MS Interoperability Model

Interoperability
Developer Priorities

Interoperability is
very important

Interop

65%

48%
44%

Security
Support
0

20

40

60

80

Interoperability Prioritization

Windows
interoperability
is first priority

79%

Windows

43%

Unix
Linux

22%
0

20

40

60

80

Best Support of Interoperability

Microsoft is doing the
most to achieve
interoperability goals
Source: Jupiter research survey, 12/03

72%
63%
55%

MS
IBM

Linux
0

20

40

60

% of IT Decision Makers

80

File/Print Services
Network Access Services
Directory/Security Services
Kernel

Platform Features

MSMQ

Windows Media Services

Windows Server
Distributed File Service STS
VPN

RAS

PKI

Smart Card

Active Directory WMI Kerberos

Consistent
Interfaces

3rd Party Products

?

OpenOffice
?

?

Real or Darwin Media Server*
?

Apache
Samba
OpenLDAP
?

?

Linux Kernel

Windows Kernel
Common
Mgmt Infra

?

?

Sendmail

3rd Party Products

Mobile Info Svr

Transaction Service

JBOSS

Single
Sign-On

Customer Requirements Microsoft Platform

?

Linux Platform

**Some services not available in Linux distributions are available at additional cost from vendors such as IBM

?

Web Services

J2EE/PHP

.NET Framework IIS ASP.NET

?

Media Services

MySQL

Visual Studio.NET

Application Services

SMS 2003, MOM 2005

Programming Frameworks

SQL Server

Integrated Development Tools

Integrated Management Tools

Integrated Data Management

Office 2003

BizTalk, CS2002

MMS, ISA, AD

Exchange, SPS

Other

Mobility

Productivity

Commerce

Identity Mgmt

Collaboration

Integrated Innovation

Customer Value – Local Evidence
TZUM – Retail (Bulgaria)
TZUM switched from Linux to Windows Server 2003 for
better integration and easier management. Its new IT
infrastructure runs 30% more efficiently
Zotel – Telecommunications (Poland)
Switch from Linux to Microsoft reduces IT costs by 30%

Duna TV – Media Service Provider (Hungary)
Switch to Microsoft Exchange Server 2003 from Linux
cuts operating costs by half
Romgaz – Utility (Romania)
Evaluated Linux and OSS but chose Microsoft because of
ease-of-use, support and features
Ahold – Retail (Czech Republic)
Consolidation from Linux and Novell to Windows
infrastructure

IDC EMEA Economic Impact Study, 2004
• Update of preceding Economic Impact Model studies

• Analyzes the specific contributions of the software
sector
• This research covered 19 countries (~82% of IT
spending in EMEA):
Austria
Denmark
France
Germany
Ireland
Italy
Netherlands
Portugal
Spain
UK

Czech Republic
Estonia
Hungary
Lithuania
Russia
Poland
Israel
South Africa
Turkey

Microsoft-Related Economic Impact
Microsoft-Related Employees in 2004*

C ze c h R e p
E s to n ia
H u n g a ry
L ith u a n ia
P o la n d
R u s s ia
T o ta l E E G ro u p

S e rvic e s &

IT

H a rd w a re

S o ftw a re

C h a n n e ls

P ro fe s s io n a ls

T o ta l

% T o ta l

1 ,6 8 6
510
1 ,2 4 7
854
3 ,8 0 1
7 ,9 3 7

599
209
446
287
838
656

1 2 ,6 5 1
2 ,3 6 4
8 ,9 1 0
6 ,4 0 2
2 1 ,9 7 4
3 8 ,5 1 2

3 4 ,2 2 1
3 ,0 9 1
2 5 ,9 1 3
3 ,7 1 4
7 0 ,0 1 6
1 3 1 ,2 8 6

4 9 ,1 5 7
6 ,1 7 4
3 6 ,5 1 6
1 1 ,2 5 7
9 6 ,6 3 0
1 7 8 ,3 9 1

40%
54%
41%
54%
50%
55%

1 6 ,0 3 6

3 ,0 3 5

9 0 ,8 1 4

2 6 8 ,2 4 1

3 7 8 ,1 2 5

49%

Microsoft-Related Taxes ($M)**
C zech R ep
E stonia
H ungary
Lithuania
P oland
R ussia
To tal E E G ro u p

$181
$29
$231
$26
$565
$279
$1,312

* Employees in companies that create, sell, distribute, or service hardware or software that runs on Microsoft operating systems and IT employees at user organization that develop
applications, service, or maintain such hardware or software
** Includes value-added or sales taxes, corporate income taxes, and personal income and social taxes

Source: IDC IT Economic Impact Study, 2004, 19 Countries

Economic Impact Study in Slovakia, 2003
Run by Institute of Slovak and World Economy – part
of Slovak Academy of Science
Impact of IT on economic growth
Position the Slovak IT sector in regional and global
perspectives
Compare impact of IT sector with other branches
Microsoft contribution to Slovak IT sector

Analyzes the impact made by the commercial software
model and Microsoft on the local economy
1 SK spent on purchasing of software from Microsoft would
generate a nearly 7 SK effect on the Slovak economy

Software Industry Trends in Latvia, 2004
Research conducted by Latvian Information Technology
and Telecommunication Association (LITTA)
Analyzes the business trends in software development,
service and distribution industry
Usage of commercial and open source platforms in business
and company resources invested in each of these platforms.
Assessment of economic impact of the software industry trends
on the national economy

Findings:
Commercial software model creates the highest value added
for their company - 100% of all respondents
Commercial platform is considered with lower total
development costs

IDC IT Economic Impact Study, 2005

Economic Impact of the IT Sector
in South East Europe
The research covers 6 countries:
Bulgaria
Croatia
Macedonia
Romania

Serbia and Montenegro
Slovenia

Microsoft Related Employment
Total IT
Employees
in 2004

MicrosoftRelated
Employees
in 2004*

% Total

MicrosoftRelated
Taxes
($M)**

Bulgaria

27.462

14.285

52%

$32,2

Croatia

20.044

9.365

47%

$73,0

2.894

1.613

56%

$6,6

Romania

29.251

18.995

65%

$63,7

Slovenia

18.222

8.483

47%

$109,2

Serbia & Montenegro

24.173

11.844

49%

$27

122.046

64.585

53%

$311

Macedonia

Total Group

Source: IDC IT Economic Impact Study, 2005, 6 South East European Countries

Revenues
In SEE the IT sector generates over $600 million in tax
receipts
Includes value-added or sales taxes, corporate income taxes,
and personal income and social taxes

Over $300 million of this is attributed to companies
and employees working with Microsoft products
1 : 8.5
For every dollar of Microsoft revenue in the region, another
eight and a half were generated by other companies selling
hardware or software that works on Microsoft operating
systems, or servicing that software

Source: IDC IT Economic Impact Study, 2005, 6 South East European Countries

Government
Policy
Industry
Interoperability

Security & Quality
Ongoing Relationship
Indemnification
Support

Productivity partner
Breakthroughs
Integration
Manageability

Applications
Compatibility
Hardware
Partners

© 2004 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.