Umberto PaolucciUmberto PaolucciVice President, Microsoft Vice President, Microsoft CorporationCorporation

““The major contribution of The major contribution of advances in information advances in information technology and their technology and their incorporation into the capital incorporation into the capital stock has been to reduce the stock has been to reduce the number of worker hours number of worker hours required to produce the nation’s required to produce the nation’s output, our proxy for output, our proxy for productivity growth.”    productivity growth.”    Alan GreenspanAlan Greenspan

Chairman, Federal ReserveChairman, Federal Reserve

More Power And Capacity More Power And Capacity Hardware and BandwidthHardware and Bandwidth

CPUCPU 2X / 18 months2X / 18 months

BandwidthBandwidth 3X / 18 months3X / 18 months

Disk CapacityDisk Capacity 3X / 18 months3X / 18 months

PC Power In New FormsPC Power In New Forms

2

5

8

8

1

47

*

Tablet PCs& Laptops

Digital Video Camera

Web Pads

Security & Surveillance

VideoConferencing

Phone &Voicemail

TV

Auto PC

HiFi Audio

Games

Pocket PCs

Internet

Cell Phone

Improved InterfacesImproved InterfacesFueling Productivity GainsFueling Productivity Gains

SpeechSpeech

HandwritingHandwriting

High resolution displaysHigh resolution displays

Large displaysLarge displays

Digital Decade Digital Decade Software FoundationSoftware Foundation

For information worker productivityFor information worker productivity

For IT department efficiencyFor IT department efficiency

For digital business processesFor digital business processes

Software ChallengeSoftware ChallengeWhy aren’t these problems Why aren’t these problems easy to solve?easy to solve?

How do I get integration of How do I get integration of information and flexibility? information and flexibility?

Will these systems be reliable Will these systems be reliable and self-managing?and self-managing?

Will complexity for everyone Will complexity for everyone involved be reduced? involved be reduced?

Common ProblemsCommon Problems

Boundaries hinder efficiencyBoundaries hinder efficiency Between software applicationsBetween software applications Between systemsBetween systems Between software and peopleBetween software and people Between organizationsBetween organizations

Software designed for manual controlSoftware designed for manual control

XML Is The AnswerXML Is The Answer

Work started in 1997Work started in 1997Microsoft bet the company on Microsoft bet the company on this with .NET in 2000this with .NET in 2000Major impact on all software Major impact on all software systems - OS, database, Officesystems - OS, database, OfficeIndustry-wide adoption criticalIndustry-wide adoption criticalCompetition on implementationCompetition on implementation

Software Before XMLSoftware Before XML

CatalogCatalog

Functions and data internalFunctions and data internalApplication as black boxApplication as black boxNo easy control or automationNo easy control or automation

Purc

hasi

ng

Purc

hasi

ng

App

licat

ion

App

licat

ion

PricesPrices

OrderOrder

Software With XMLSoftware With XML

Purc

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Purc

hasi

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App

licat

ion

App

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ion

Standard way of exposing informationStandard way of exposing informationAllows software to control softwareAllows software to control softwareIndustry and company standards importantIndustry and company standards important

Catalog

Prices Order

Marketplace AMarketplace A Marketplace BMarketplace B

Digital Business ProcessesDigital Business ProcessesFrom Marketplaces to Web ServicesFrom Marketplaces to Web Services

Web ServicesWeb Services

Are our business systems well connected?Are our business systems well connected?

Are our information workers contributing Are our information workers contributing to corporate goals?to corporate goals?

How much insight do we have on the How much insight do we have on the metrics that impact our business?metrics that impact our business?

How good is our velocity and quality of How good is our velocity and quality of decision making?decision making?

Does our technology allow us to better Does our technology allow us to better respond to customers?respond to customers?

Are customers Are customers really at the really at the

center ?center ?