Windows ServerWindows ServerFor The Midmarket:For The Midmarket:Strategy and RoadmapStrategy and Roadmap

Kent ComptonKent ComptonSenior Product ManagerSenior Product ManagerWindows Server Solutions GroupWindows Server Solutions GroupMicrosoft CorporationMicrosoft Corporation

Lots of legacy Lots of legacy still out therestill out there

1.4m1.4mworldwide entitiesworldwide entities(18K enterprise)(18K enterprise)

12% Growth this 12% Growth this year (highest year (highest growth segment)growth segment)

67% of all servers 67% of all servers (25% in enterprise)(25% in enterprise)

Midmarket Business Midmarket Business OpportunityOpportunity

……And We’re Not AloneAnd We’re Not Alone

““The midmarket's growth shows no signs of abating. While the The midmarket's growth shows no signs of abating. While the enterprise market remains steady, and the small-business space enterprise market remains steady, and the small-business space heats up, heats up, the midmarket is downright scorching.the midmarket is downright scorching. Some industry Some industry watchers estimate that it will watchers estimate that it will grow by more than 20 percent thisgrow by more than 20 percent thisyear alone.year alone.

More than More than 21 million small-to-midsize businesses21 million small-to-midsize businesses operate in the operate in the United States, and United States, and more than half will be purchasing upwards ofmore than half will be purchasing upwards of$200 billion in IT$200 billion in IT goods and servicesgoods and services this year, according to this year, according toForrester Research. Forrester Research.

Many vendors,Many vendors, including Hewlett-Packard, Microsoft, Oracle and including Hewlett-Packard, Microsoft, Oracle and Trend Micro, are realigning their channel programs into market-size Trend Micro, are realigning their channel programs into market-size segments, segments, assigning resources to address the specific needsassigning resources to address the specific needs of ofeach niche.”each niche.”

Lawrence M. Walsh, EditorLawrence M. Walsh, EditorVARBusiness MagazineVARBusiness MagazineMarch 16, 2006March 16, 2006

EnterpriseEnterprise

>5,000>5,000 employees employees>1,000 PCs>1,000 PCs

2K2K

Midmarket Midmarket BusinessBusiness

1.4M1.4M

50 – 999 50 – 999 employeesemployees

25 – 499 PCs25 – 499 PCs

Microsoft Customer SegmentationsMicrosoft Customer Segmentations

40M40M

CharacteristicsCharacteristics

# WW Entities# WW Entities

1 – 491 – 49employeesemployees<25 PCs<25 PCs

Small Small BusinessBusiness

16K16K

1,000 – 5,0001,000 – 5,000employeesemployees

500 – 1,000 PCs500 – 1,000 PCs

CorporateCorporate

SB/MMB Source: AMI 2005SB/MMB Source: AMI 2005C/E Source: IDC 2005, MicrosoftC/E Source: IDC 2005, Microsoft

Midmarket OverviewMidmarket Overview

Midmarket Midmarket BusinessBusiness

1.4M1.4M

50 – 999 50 – 999 employeesemployees

25 – 499 PCs25 – 499 PCs

99,00099,000

833,300833,300

99

250 – 499250 – 499

49,00049,000

659,700659,700

1313

500 – 999500 – 999

376,000376,000

2,593,2002,593,200

77

100 – 249100 – 249

832,000832,000

1,168,0001,168,000

11

50 – 9950 – 99

Number of Number of EntitiesEntities

Server Server Installed BaseInstalled Base

Avg Servers/Avg Servers/OrganizationOrganization

Source: AMI 2005Source: AMI 2005

Persona: IT Generalist Persona: IT Generalist

““My role is a mile wide and an inch deep”My role is a mile wide and an inch deep”

Responsible for all aspects of IT infrastructure at all locations Responsible for all aspects of IT infrastructure at all locations including network, servers, and messagingincluding network, servers, and messaging

Responsible for desktops, helpdesk and end user supportResponsible for desktops, helpdesk and end user support

Generalist by necessity, not by choiceGeneralist by necessity, not by choice

No deep skills in any area and limited formal trainingNo deep skills in any area and limited formal training(MCSE courses)(MCSE courses)

Use products and tools out-of-the-box, almost 100% GUI basedUse products and tools out-of-the-box, almost 100% GUI based

Interrupt-driven and primarily reactive, high productivity focusInterrupt-driven and primarily reactive, high productivity focus

Reluctant to change: “If it’s working don’t break it”Reluctant to change: “If it’s working don’t break it”

Feels overlooked, no targeted programs, solutions, or documentationFeels overlooked, no targeted programs, solutions, or documentation

Our Goals For The MidmarketOur Goals For The Midmarket

We know we can do betterWe know we can do betterTechnical ComplexityTechnical Complexity

Ease of UseEase of UseServicesServices

ManagementManagement

PatchingPatching

SecuritySecurity

Licensing and pricing complexityLicensing and pricing complexity

GuidanceGuidance

Strengthen our partner opportunitiesStrengthen our partner opportunities

What We’re Doing TodayWhat We’re Doing Today

NewNewContentContent

Guidance and Guidance and TechNet SiteTechNet Site

““Mindset Mindset Change”Change”

Company-wide Company-wide EffortEffort

Tools and Tools and ResourcesResources

Analyzers and Analyzers and Assessment ToolAssessment Tool

New New OfferOffer

Licensing and Licensing and ProcurementProcurement

http://www.microsoft.com/technet/midsizebusiness

Current PromotionCurrent PromotionWindows Server System for Midsize BusinessWindows Server System for Midsize Business

ServersServers3x Windows Server 2003 R2 SE3x Windows Server 2003 R2 SE

Exchange Server 2003 Standard EditionExchange Server 2003 Standard Edition

Operations Manager Workgroup EditionOperations Manager Workgroup Edition

50 Windows Server and Exchange CALs50 Windows Server and Exchange CALs

CAL (250 Max)CAL (250 Max)Windows Server + ExchangeWindows Server + Exchange

50 CALs50 CALs

Future TechnologiesFuture Technologies

““Centro”Centro”

Code name for a new, integrated, x64-based infrastructureCode name for a new, integrated, x64-based infrastructuresolution specifically designed to meet the needs of thesolution specifically designed to meet the needs of theMidmarket’s IT Professionals that will RTM afterMidmarket’s IT Professionals that will RTM afterWindows Server codenamed “Longhorn”Windows Server codenamed “Longhorn”

Current Plan of Record productsCurrent Plan of Record productsWindows Server LonghornWindows Server Longhorn

Exchange Server next generation technologiesExchange Server next generation technologies

System Center Management technologiesSystem Center Management technologies

Security TechnologiesSecurity Technologies

Unified SetupUnified Setup

Single Administration consoleSingle Administration console

License Management and a “Centro CAL”License Management and a “Centro CAL”

Integrated to best practices for security, manageability,Integrated to best practices for security, manageability,and performanceand performance

Call To ActionCall To Action

Engage with the MidmarketEngage with the Midmarket

How to Prepare for Centro?How to Prepare for Centro?Create and/or Use Windows Server LonghornCreate and/or Use Windows Server Longhorncompatible drivers and componentscompatible drivers and components

Use x64 ProcessorsUse x64 Processors

Develop a Microsoft Operations Manager (MOM) Management Pack Develop a Microsoft Operations Manager (MOM) Management Pack for your hardwarefor your hardware

Go to Go to www.windowsvista.com/partnerwww.windowsvista.com/partner, take Window Vista , take Window Vista 101, and learn more about how you can plug into the 101, and learn more about how you can plug into the Windows Vista OpportunityWindows Vista Opportunity

Additional ResourcesAdditional Resources

Learn more about “Centro” in this Microsoft Presspass Interview: Learn more about “Centro” in this Microsoft Presspass Interview: http://www.microsoft.com/presspass/features/2005/sep05/09-06Infrashttp://www.microsoft.com/presspass/features/2005/sep05/09-06Infrastructure.mspxtructure.mspx

Develop MOM Management Packs: Develop MOM Management Packs: http://www.microsoft.com/downloads/details.aspx?familyid=c5b42e5bhttp://www.microsoft.com/downloads/details.aspx?familyid=c5b42e5b-68ed-45ea-8864-a9d4087d261d&displaylang=en-68ed-45ea-8864-a9d4087d261d&displaylang=en

Existing Hardware MOM MPsExisting Hardware MOM MPs(search for Hardware and Network Management): (search for Hardware and Network Management): http://www.microsoft.com/management/mma/catalog.aspxhttp://www.microsoft.com/management/mma/catalog.aspx

We’ll be contributing to the Microsoft Hardware Newsletter.We’ll be contributing to the Microsoft Hardware Newsletter.Sign up now if you haven’t already: Sign up now if you haven’t already: http://www.microsoft.com/http://www.microsoft.com/whdc/newsreq.mspxwhdc/newsreq.mspx

Questions?Questions?

© 2006 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.