2. Performance of hardware Service-oriented architecture Digitization of the economy Software breakthroughs Digital workstyle, lifestyle Wireless, portable, Tablet PC, phone

3. Enterprise Devices Online Desktop

4. RIA AJAX Gadgets Online Enterprise Devices Desktop

5. Consumerization of IT, SaaS Online Enterprise Devices Desktop

6. Mobile Web Digital entertainment Online Enterprise Devices Desktop

7. Office Business Applications Online Enterprise Devices Desktop

8. Online Enterprise Devices Desktop

9. Online Enterprise Devices Desktop

10. Software Services

12. Client-Server Web SaaS? SOA? Web 2.0? ??? Mainframe

13. Service Oriented Architecture (SOA) Service Composition Web 2.0 Experience Software as a Service (SaaS) Service Delivery Rich Internet Applications (RIA) Device Leverage Software + Services

14. Simplicity Convenience Ease of Deployment Broad Reach Ubiquitous Access Centralized Mgmt Control Flexibility Customization Extensibility Data Protection Richness of Experience Cost / TCO Integration Security ? Software Services

15. Software + Services Software Services

18. 100% On Premise 100% Hosted “ Traditional IT” “ Pure-Play SaaS” Hybrid Approach

20. "It's unlikely than an organization will strictly choose one path or the other when it comes to SaaS and software services that are built in-house. Every organization will likely continue to have a mix of existing applications, SaaS subscriptions , and now through SOA, a collection of reusable components, Web services and business processes," said Sandy Carter, vice president of SOA and WebSphere strategy at IBM. “ But Google's offline approach also is a recognition that Microsoft is right in insisting that not all computing will take place in the Internet cloud. Microsoft's been touting a vision of "software plus services " that relies on Internet-connected desktop apps, and more enterprise software-as-a-service companies, such as CRM vendor RightNow, recognize the need for some client software.”

21. Software + Services Google CEO Says Software to Play a Bigger Role Software Services

25. Mobility – Seamless Device Integration

26. Intuitive Online Collaboration + Rich Applications

27. Consistent Personal Computing Experience

28. Connected to Business Processes

34. Video – Rich Experiences (.NET WPF Application)

39. Services

41. Web PC Client Mobile Office TV-Connected

43. Customer Managed Provider Managed Traditional Software Hosted or Outsourced Software as a Service Co-Managed Software, services & support offerings specifically designed for one-to-many delivery over the Internet Packaged software customized, deployed & managed by provider Packaged software deployed on-premise Application Management Who manages the app software experience, SLA? Software Delivery How is the end-to-end experience delivered?

44. Traditional Software Hosted or Outsourced Software as a Service Customer Managed Provider Managed Co-Managed Software Delivery How is the end-to-end experience delivered? Today’s In-House IT Outsourced IT, On-site Contractors, Asset Transfer, etc Co-Location Services Hosted Infra & Applications Amazon EC2, S3, Win+IIS+.NET Microsoft Exchange Hosted Services Salesforce.com, Office Live “ Building Block Services ” “ Attached Services ” “ Finished Services ” Application Management Who manages the app software experience, SLA?

49. Consistent, seamless experiences across multiple PCs and devices Choice of on-premise, partner-hosted or Microsoft-hosted delivery Federation between enterprises and cloud services Composition of multiple applications and services Enable multiple business models

51. On-Premise or Hosted Multi-headed Clients Attached Services

52. Microsoft Services Platform (Folder) Services Services Streaming

54. Online Sharing

55. Online Collaboration

56. Rich Client Integration

60. Applications Office Business Applications Rich Internet Applications Services Windows Applications

62. XNA Game Studio Extends Visual Studio 2005 to create games using C# XNA Framework Cross-Platform game development framework and runtime .NET Framework for Xbox 360 Custom version of the .NET Compact Framework XNA Framework

66. © 2007 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.