FuelingFueling growthgrowth andand innovationinnovation MicrosoftMicrosoft inin thethe InformationInformation SocietySociety

Thomas Lutz Geschäftsleitung Microsoft Österreich MicrosoftMicrosoft BusinessBusiness GroupsGroups

Windows O/S Office Tablet PC SharePoint, Project Windows Media Professional Product Support Great Plains LiveMeeting bCentral Navision MS CRM

Windows Server MSN Network SQL, Exchange… MSN Access Developer tools Premier support and consulting Training, Certification, and Press

Pocket PC Xbox Pocket PC Phone Edition Consumer hardware and software Windows Powered Smartphones PC and Online games Windows Embedded TV Platform

in EMEA PartPart 1.1. ContributingContributing toto GrowthGrowth

AsAs partpart ofof thethe ITIT industryindustry PromotingPromoting openopen partnershipspartnerships soft Micro

SupportingSupporting keykey initiativesinitiatives MakingMaking locallocal investmentsinvestments

in EMEA ContributingContributing toto GrowthGrowth

1.1. AsAs partpart ofof thethe ITIT industryindustry PromotingPromoting openopen partnershipspartnerships soft Micro

SupportingSupporting keykey initiativesinitiatives MakingMaking locallocal investmentsinvestments

in EMEA EMEAEMEA :: 1/31/3rdrd ofof thethe ITIT marketmarket

Source : IDC 2003

IDC forecast IDC forecast IDC forecast CY2003 CY2003 CY2003

Turnover Turnover Turnover 421 B$ 287 B$ 163 B$

48% of 33% of 19% of worldwide market worldwide market worldwide market

1,8% growth 2,9% growth 2,3% growth vs 2002 vs 2002 vs 2002

Industry growth ‘silver lining’ after 2001-2002 downturn

Contributing to growth in EMEA ITIT inin WesternWestern EuropeEurope :: aa hugehuge impactimpact inin thethe past,past, poisedpoised forfor growthgrowth againagain

Annual revenue growth rate (%) TLC IT 16 14 12.0 10,8 12 10,1 10 7.9 8.6 8 6.7 5.6 6 3.7 4 1.3 2 1.3 0

-2 -1.5 -4 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Source: EITO in cooperation with IDC Market value 2003: 607 billion Euro in EMEA RealityReality afterafter thethe ..comcom hypehype z InternetInternet scopescope isis expandingexpanding ƒ 50% of E.U. citizens are online ƒ Almost 70% have become regular mobile users ƒ Computer power is still growing according to Moore’s law z AA profoundprofound usageusage evolutionevolution ƒ Internet used as a primary source for all contents ƒ E-mail has become a basic business tool ƒ Remote working is no longer exotic z GovernmentsGovernments areare leadingleading thethe movemove ƒ e-Europe 2005 programme ƒ Lisbon 2010 agenda

in EMEA EmergingEmerging countriescountries fuelfuel momentummomentum

IT Spending 2003 Western Eastern Middle- 7% Europe Europe East & 6% Africa E.Europe 87% GDP 1,4% 3,9% 2,9% MEA growth W.Europe Total IT 2% 12% 9% spending Packaged 3% 14% 14% Software PC 2,3% 13,8% 8,9% business

Growth rate forecast vs 2002

Source : IDC 2003

Contributing to growth in EMEA SoftwareSoftware isis everywhereeverywhere

Entertainment Creativity

Communication

Productivity Embedded Control

in EMEA MicrosoftMicrosoft :: major,major, notnot dominantdominant

EMEA Market 2002 2003 2004 Total IT market 278 B$ 287 B$ (+3%) 305 B$ (+6%) Software part 58 B$ 60,3 B$ 64 B$ (21%) z Microsoft 3 % of total IT

15 % of software Hardware Software MS estim° Services

IT Spending in 2002 Source : IDC

in EMEA ConstantlyConstantly openingopening newnew choiceschoices

Choice of Purpose SERVICES E-Services Choice of SOFTWARESOFTWARE YESTERDAY : Network Internet A few major vertically Alliances integrated players SERVICES HARDWARE

Choice of SOFTWARESOFTWARE Platform TODAY : • The top 10 companies in the HARDWARE software segment account for only Choice of SERVICES 31% of the market Vendor • New alliances get forged to embed SOFTWARSOFTWARE software in many forms of solutions C B E • The notion of service gets more and A HARDWARE more diversified Vendor Vendor Vendor

19751975 19851985 19951995 20052005

in EMEA ContributingContributing toto GrowthGrowth

AsAs partpart ofof thethe ITIT industryindustry 2.2. PromotingPromoting openopen partnershipspartnerships soft Micro

SupportingSupporting keykey initiativesinitiatives MakingMaking locallocal investmentsinvestments

in EMEA MicrosoftMicrosoft OpenOpen PartnershipPartnership modelmodel

Developers Application Vendors

Consulting & soft Micro Integration

Hardware Vendors Professional Services Training Centers Resellers

in EMEA MicrosoftMicrosoft--basedbased partpart ofof theirtheir revenuerevenue

Developers Application Vendors 45%

Consulting & soft 33% Micro Integration

50%

Hardware Vendors Professional Training 80% Services Centers

Resellers

in EMEA FuelingFueling 1.51.5 millionmillion jobsjobs inin EMEAEMEA

51.000 with Application Vendors 35.000 in 12.000 Consulting & soft Direct Micro Integration employees

400.000 44.000 with Developers Hardware Vendors 205.000 in 2000 in Professional 1.300.000 Training Services Resellers Centers

in EMEA FuelingFueling economiceconomic opportunitiesopportunities inin AustriaAustria

ƒ 96% of MMicrosofticrosoft Austria results come out of revenues from Austrian partners ƒ The partner network of Microsoft Austria spans across app. 3.000 partners, who do system integration, Consulting, Software Development, Sales, Service and Support. ƒ Every Euro Microsoft Revenues leads to 7 Euro Revenue at Austrian partner companies, i.e. over 85% of value remains in the country. ƒ This „Microsoft Eco-System“ secures a Third of whole IT employment and a third of Tax Revenues out of the Austrian IT Branche ƒ Microsoft fuels 72.000 IT- based jobs in Austria!

(source: IDC, 2004)

in EMEA ContributingContributing toto GrowthGrowth

AsAs partpart ofof thethe ITIT industryindustry PromotingPromoting openopen partnershipspartnerships soft Micro

SupportingSupporting keykey initiativesinitiatives 3.3. MakingMaking locallocal investmentsinvestments

in EMEA 5353 locallylocally staffedstaffed subsidiariessubsidiaries

1985

1985 Denmark 1993 2002 Ukraine 1983 UK 1983 1993 1993 Czech Rep.1995 1983 France1991 Austria 1993 1994 Slovenia 1999 Bulgaria 1987 1996 1996 Romania 2002 Yugoslavia 1985 1993 Turkey 2003 Malta 1999 Tunisia 2003 Malta 2002 Cyprus 2000 Algeria 1995 1998 Lebanon 2002 Kazakhstan 2001 Jordan 1999 Pakistan 1998 Kuwait 1996 Nigeria 1998 Kuwait 2003 Qatar 1996 Ivory Coast 1996 Saudi 1998 Abu Dhabi 2003 Bahrain 2001 Oman 1995 Kenya

1997 Mauritius 1998 Namibia

1992 in EMEA FromFrom researchresearch toto solutionssolutions

Microsoft research Centre, Cambridge, UK Operations Centre, Dublin, Ireland

Business Solutions Development Centre, Copenhagen, Denmark Development & Localisation Centre, Dublin, Ireland Dublin, Ireland European Microsoft Innovation Centre, Aachen, Germany

European e-Business Acceleration Centre Sophia Antipolis, , with HP and Cisco

Share sustainable growth in EMEA ContributingContributing toto GrowthGrowth

AsAs partpart ofof thethe ITIT industryindustry PromotingPromoting openopen partnershipspartnerships soft Micro

4.4. SupportingSupporting keykey initiativesinitiatives MakingMaking locallocal investmentsinvestments

in EMEA MicrosoftMicrosoft AustriaAustria -- CitizenshipCitizenship frameworkframework

Responsible Security and Internet Business Practices Knowledge Economy Safety Economic Opportunity Interoperability and Tech Innovation • EU Grants Advisory Open Standards • IE 7 Launch • WKO Cooperation • 3rd party proof of concepts Gov Framework • Desktop AV, A-Spyware • New World of Work iLab Fraunhofer Institue • Windows Vista (!) Innovation (Academic) • MidMarket • Academic Alliance Partner references Public Policy Imagine Cup • Europ. Forum Alpbach • IP-Value Campaign • Parlam. Roundtables • MBS goes University (WU) • IP Value Studies Digital Inclusion • ÖPA Roadshow B2B Promotions: • PiL Events Series (EDU) • WKO Security Check • BMBWK partnerships Workplace • IT Pro, DPE Roadshow • Innovation & Education Conf • Great Place To Work • RSA Conference Vienna • UP Projects (CA) Corporate Governance • ECDL Barrierefrei Consumer Education • Seniorkom • Business Simplicity • Sicher-Im-Internet II • Neunerhaus • Diversity: Women in IT New: Children Safety

in EMEA PartnershipPartnership withwith AustriaAustria PublicPublic AffairsAffairs

ƒ Information Society ƒ Bessere IT Sicherheit: Sensibilisierung, Information, Produkte, Initiative „Sicher im Internet“ ƒ Höhere Medienkompetenz: Software, Trainings für benachteiligte Bevölkerungsgruppen ƒ Mehr Transparenz: Shared Source, Office XML, Datenschutz Audits ƒ ARGE Breitband, IKT Masterplan für Österreich ƒ Economy ƒ WKÖ Partnerschaft: Junge Wirtschaft, Experts Group Security, incite ƒ KMU Portal mit Erste Bank, Heller Consulting, GfP u.a. ƒ Sicherheitsportal mit Bank Austria ƒ Neues Partnerprogramm für 3.000 österr. Partner ƒ Public Sector ƒ Government Security Program mit BM.I für ges. öffentl. Bereich ƒ BMBWK „Partners in Learning“: IT Zertifikat, School Agreement ƒ Technologiepartnerschaft mit AUVA: MoU, .NET Projekte in EMEA EE--GovernmentGovernment -- ReferencesReferences z BM.I.BM.I. –– öösterreichweitesterreichweite InfrastrukturInfrastruktur Windows Server 2003/Office 2003, von 1.500 auf 500 Server, 32.000 Benutzer Einsparung über 7M € pro Jahr! z Fundamt.atFundamt.at –– SuchenSuchen && Finden,Finden, 2424 xx 77 Österreichweiter Internetservice auf Basis Microsoft .NET Framework z BMFBMF –– OnlineOnline BerechnungBerechnung LStLSt//EstEst auf Basis Microsoft IIS, ASP.NET z NNÖÖ LRLR –– FamilienpassFamilienpass ohneohne MedienbruchMedienbruch Moderne .NET Webapplikation für über 100.000 NiederösterreicherInnen

in EMEA CorporateCorporate SocialSocial ResponsibilityResponsibility

ÖÖsterreichsterreich istist aufauf demdem WegWeg vonvon derder DienstleistungsDienstleistungs-- inin diedie InformationsInformations--/Wissensgesellschaft/Wissensgesellschaft

Digital Divide Digital Inclusion

Medienkompetenz

Microsoft Mission: Benachteiligten Bevölkerungsgruppen den Zugang zur Informationsgesellschaft zu ermöglichen.

in EMEA DigitalDigital InclusionInclusion ProjectsProjects z ECDLECDL--barrierefreibarrierefrei Der Europäische Computerführerschein für Menschen mit Behinderung Eine Kooperation zwischen OCG, Uni Linz, BM:BWK, bit media und Microsoft Österreich

ZIEL: Die Entwicklung eines interaktiven Lernsystems mit speziellen Schulungsmaterialien, auf Basis der ECDL-Module, die auch an unterstützende Technologien für z.B. blinde oder bewegungsbehinderte Menschen angepasst sind. Rund 400 Lerneinheiten werden speziell adaptiert. z SeniorkomSeniorkom Initiative gegen den Digital Divide der 60+ Bevölkerung. Eine Kooperation zwischen Seniorenrat, Echo Medienhaus, Telekom Austria und Microsoft Österreich

ZIEL: Eine Informations- und Trainingsoffensive für 2 Millionen ÖsterreicherInnen über 60 Jahre. Nur 9% dieser Bevölkerungsgruppe nutzen heute Informations- technologie. 1500 Senioren erhalten im Rahmen der österreichweiten „Trainings- wochen“ die Chance die Computer Basics zu erlernen. (www.seniorkom.at) in EMEA PartPart 2.2. FuelingFueling innovationinnovation

WavingWaving--inin newnew technologytechnology SharingSharing expertiseexpertise

soft Micro SecuringSecuring exchangesexchanges FosteringFostering locallocal innovationinnovation

in EMEA Speech/Writing Devices Boundaryless WavingWaving--inin newnew technologytechnology WiFi/Broadband Computing Web Services

XML/SOAP HTTP/HTML Email Clients SMTP Web Browsers

Mouse 150 million Windows Personal GUI Computing LANs 103 million

PC users in 70 million Western Europe PC Architecture Spreadsheets DOS Word Processors Today PC Applications Internet Web Apps Mid 80s Late 80s-Mid 90s Mid 90s Mid 00sin EMEA- . . . SharingSharing expertiseexpertise

WIth GSP Source Code Governments Sharing Program

TechNet MDSN MTC Center With With Developers Universities

¾ Reading Center (UK)

With Customers ¾ Sophia Center(FR)

¾ EMIC Center (GY)

Fuel and ease up innovation in EMEA FosteringFostering innovationinnovation inin EMEAEMEA z Multi-cultural background ƒ 53 local subsidiaries Innovation Cycle ƒ Dublin = 26 languages z European based innovation European based innovation Recognition ƒ 4 Microsoft R&D Centers ƒ Support of local partners technologies Usage Invention z Proof of Concept projects Distribution Development ƒ Joint investments with local universities Distribution Development ƒ Building next generation developers ƒ Ex. Imagine Cup, studentoptions.com z Emerging countries ‘quantic jumps’ ƒ Electronic banking infrastructures ƒ 171 million cellular phones in EMEA in one year

in EMEA SecuringSecuring exchangesexchanges

z Security needs revolution ¾ 20 years ago : PC = individual complement to highly secure mainframe ¾ Today : PC = highly secured ‘terminal’ of fully open information highwhighwaysays ¾ Growing demand across EMEA to support trade and privacy

z Partnerships with EMEA Governments ¾ Development ooff national secure and certified solutions ƒ Poland, Czech Rep., Kuwait… ¾ Work with ECE on e-trade standards ¾ Government Security Program (GSP) with 20 countries ƒ Austria, UK, France, Russia, …

Fuel and ease up innovation in EMEA ConclusionConclusion :: TheThe roadroad aheadahead

“ A new ICT business cycle is now Evolution of possible. It will be based on : Broadband Connections 2001- z a wave of new excitexcitinging 2006 technology opportunities already in the pipeline, from broadband to ubiquitous computing z mass-extensive ICT applications and 70,000 net services reaching billions of 60,000 people with users increasingly in 50,000 the driver’s seat 40,000 Consumer Business z pro-active and co-operative policy 30,000 frameworks favoring ICT mass market 20,000 diffusion and promoting the 10,000

Knowledge Society ” 0

2001 2002 2003 2004 2005 2006 (Source - EITO 2003)

in EMEA PreparingPreparing forfor ““TheThe DigitalDigital DecadeDecade””

z New “Access” wave ¾ PDAs, mobile phones ¾ In the car z New “Interface” wave ¾ Wireless in public areas ¾ Handwriting ¾ Voice commands or gestures

z New “Usage” wave ¾ Internet communities ¾ E-Government Transcations ¾ Daily life organisation tool

Invest back into community and education in EMEA