Drive Business Success with Optimization

Austen MulinderVice President, Worldwide Enterprise Sales Microsoft Corporation

The Optimization Conversation

Key goals for CIO today are:Control/cut costs

Improve Productivity and Efficiency

Deliver greater Business Agility

Contribute to Competitive Advantage

Make IT a strategic asset

Balance short term savings with long term innovation

More Pressure Than Ever On IT

20%New

80%Maintenance

Business Resultsand New Value

End User ProductivityCustomer

Connection

CostReduction

TechnologyChange

RegulatoryCompliance

Security

Keep BusinessUp and Running

Source: “Companies expect to spend 80% -- up from 2005’s 76% -- of their overall IT spending to keep existing operations and maintenance in play, leaving only 20% for new development activity and project work.” “CIOs Must Target Legacy Applications with a Maintenance Renaissance, “ Phil Murphy, Forrester, June 22, 2006.

Competition

Changing Role of the CIO

“2009 State of the CIO Survey,” CIO Magazine, January, 2009

How CIOs Spend Their Time

Aligning IT and business goals

Cultivating the IT/business partnership

Improving IT operations/systems performance

Leading change efforts

Implementing new systems and architecture

Driving business innovation

Redesigning business processes

Controlling IT costs

Developing business strategy

Looking for competitive differentiation

1

2

3

4

5

6

8

9

10

7

IT’s Contribution to Drive Business

Gartner: IT is well positioned to support growth when it turns from back-office systems to providing information, innovation and insight to retain customers

But only 3% of CEOs believe IT is directly contributing help grow/expand the business

IT’s Unmet PotentialIT and Business Strategy – No Marriage Yet

2008 McKinsey Global Survey, “IT’s Unmet Potential”

How tightly coupled, if at all, are your company’s business and IT strategies? How tightly coupled, if at all, should they be ideally?

Business and IT strategy not linked

Business and IT strategy tightlyintegrated, influence each other

Business strategy developedwith some input from IT

Business strategy developed firstand used to guide IT strategy

22%67%

% of respondents in a job function other than IT,1 n = 5481Figures do not sum to %, because of rounding.

22%

15%

42%

16%

15%2%

Currently

Ideally

IT Drives Business Performance

Grow revenue 6.8% faster per year than their peers in the bottom 25% of IT capability.

Enjoy 23% higher revenue per employeethan their peers in the bottom 25% of IT capability.

Achieve superior revenue growth(a company’s IT infrastructure is a key determinant).

Have significantly better insight into, and control over, key dimensions of the business.

Fuels profitable revenue growth

Source: Enterprise IT Capabilities and Business Performance, Marco Iansiti, David Sarnoff Professor of Business Administration, Harvard Business School George Favaloro, Principal, Keystone Strategy, Inc-March 2006, http://www.microsoft.com/business/enterprise/itdrivesgrowth.mspx

Encourages employee productivity

Is a key driver of business productivity

Gives managers more insight and control

Optimized IT…

Companies in the top 25% of IT capability…

Companies in the top 25% of IT capability…

Optimization – Enabling Your Organization Build an adoption roadmap for strategic technology investments Systematically reduce costs and enable innovation

Basic Standardized Rationalized Dynamic

Uncoordinated, manual

infrastructure

Managed IT Infrastructure with limitedautomation

Managed and consolidated ITInfrastructure

with maximum automation

Fully automated management,

dynamic resource usage , business

linked SLAs

People Process Technology

Benefits of Optimization

Control Costs

Simplify, automate, and centralize IT

operations to optimize resource

utilization

Improve Service Levels

Integrate management and security tools to

maximize system uptime

Drive Agility

Adapt the IT infrastructure

rapidly according to

business needs

Competitive Advantage

Gain a Leadership Position and

Grow your Share!

Cost

AgilityInfrastructure Maturity

Service Levels

Data Protection and Recovery

Identity and Access Management

Security and Networking

Desktop, Device, and Server Management

Standardized DynamicRationalizedBasic

No user id validation or

data protection for mobile

devices

Source: Account Planning Insights Report (6/15/08 >15K), (2/2/09 13,448) accounts profiled.

Optimization OpportunitiesCore Infrastructure Optimization Model

75%

2/2/09 Report

Not running Office 2003 or

newer

No directory-based

solution to protect content

(rights/ permissions)

No virtualization to enable

application access &

recovery

No process to deploy

security updates/patches

Branch office data backups

not centrally managed

Certificate services (PKI) not

centrally managed

No virtualization tool for

data protection & recovery

for servers and applications

51%

62%

66%

86%

79%

75%

70%

Customer Examples…

Case studies found at www.microsoft.com/optimization

HSBC supports 30% more users with same IT infrastructure

Fujitsu reduces helpdesk calls by 50%

Manage Complexity, Achieve Agility

Increase the Impact of Your People

Make Better Decisions Through Better Business Intelligence

Maximize Existing Customer Relationships

Reduce Costs and Risks Vancity made environmental

gains: Paper consumption

down 30%

PCL Improved IT productivity of 1 man day/week for deployment

Start Your Journey…Assess Your Own Situation and Identify Potential Cost Savings

First, Conduct Self-Assessment to understand your Optimization Status

Identify your current maturity level on the Optimization model using the Assessment Tools and compare this against your peers

Review the proposed benefits of Optimization level advancement

Calculate the quantifiable value of Optimization level advancement

Second, identify potential IT Cost Savings Opportunities

Answer the 9 question Simple to Save survey

Review the potential areas of cost savings opportunities for your Infrastructure

Third, Contact your Microsoft Rep or Partner to get help today!

http://www.Microsoft.com/optimization

Begin your Optimization

journey today at:

© 2009 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and

Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.