Greg Myers and Kent Cunningham talk to the Microsoft Solutions and how Microsoft is focusing based on Government spend.

1. Government Contractor SummitMarch 17, 2011 Greg Myers, General Manager – Civilian Government & Healthcare Kent Cunningham, Architect, Public Sector Innovation Unit

2. Thank you…

3. Takeaways for Today New Insights into Working With Microsoft Better Snapshot of Key Areas of Focus for Gov Customers Review of Where Microsoft is Making Big Bets in Innovation & Our Cloud Offerings Ideas for How Your Company Can Drive New Revenue Opportunities

4. Snapshot of the Microsoft USPS Organization 4 Major Divisions (Federal, State/Local, Education, Health) Includes Sales, Technical, Marketing, Biz Dev/Capture Resources Federal is Civilian/Health; National Security; DOD; Systems Integrators Average Tenure in Some Divisions 7+ Years Over 700 Dedicated Employees; $3B Operation Largest Dedicated Vertical in Microsoft Partner Organization Embedded in Each Division

5. Talking to Microsoft… Address Whitespace Dynamics; SQL: Security; ECAL, Systems Mgmt.; Azure; Development Build New Markets Connected Healthcare, Cloud, Gov 2.0, Financial & Regulatory Solutions Deploy Driving the Value of Office & Win 7 sassssssssss Solutions: BI; Dashboards; UC/Collab; Grants/Task/Correspondence Management; FOIA; 311; AFDC; Identity Management Enterprise Agreements: Drive Value Incremental Value through Solutions Deploy: New Products & Upgrades Government Directives: Citizen Services; Cybersecurity; Transparency; Consolidation & Virtualization Sales Teams goals: Customer satisfaction, Net New Product growth, EA renewals Joint Value Proposition: Net New Customer Value, Customer Relationships, Repeatable Solutions, Vehicles, Ambassadorship, SME

6. What We Hear from Our Customers Help Us Secure our Enterprise Help Us Drive Transformation Help Us Save Money, Gain Efficiencies Software is the great enabler!

7. Balance Needs of a Changing GovernmentThe dual challenges of IT in today’s governmental agencies Support political andbusiness objectives Maximize impact of IT investmentswith reduced budgets Implement economic recovery programs. Modernize government processes. Deliver services directly to citizens. Create more jobs, and encourage and enable environmental sustainability. Broaden access to technology. Consolidate redundant investments. Facilitate transparency, accountability. Help ensure interoperation with LOB systems. Deliver IT innovation.

8. New Communication Mediums Recovery.gov America Speaking Out Treasury.gov

10. Critical to address Cybersecurity

11. Telework Act 2010 = IT orgs increase IT capacity by 30% to meet anywhere

14. Translate Business Challenges into Technology SolutionsTogether, We Can Have a Major Impact Modernize Government IT Increase Government Worker Productivity Improve Citizen Interaction

18. Virtualized servers reduce operational expenses around server heat, electricity usage, space, and maintenance.

19. Reduce the number of machines without sacrificing performance.Achieveenvironmental stewardship

21. Maximize resources with increased flexibility using UC Solutions.

24. Reduce physical and carbon-intensive processes through streamlined workflow and communications.

25. Offer distance eLearning.

26. Support telework to reduce government worker commuting.Environmental Stewardship

27. Spending Trends

28. Why All the Fuss About the Cloud? “By 2012, 80% of Fortune 1000 enterprises will be using some cloud computing services, 20% of businesses will own no IT assets.” New Economics Simplicity Agility and Innovation Pay for what you use Lower and predictable costs Shift from capex to opex Accelerate speed to value No patching or maintenance Faster deployment Robust multi-layered security Reliability and fault-tolerance Latest software for users Internet collaboration New apps and services “The bottom line: Early adopters are finding serious benefits, meaning that cloud computing is real and warrants your scrutiny as a new set of platforms for business applications.”

29. Public Sector Cloud Momentum US Department of Agriculture moving to Microsoft BPOS Federal Cloud services in 49 of 50 states with over 3M government employees utilizing Microsoft Online Services State of California uses Microsoft BPOS to host state-wide email and productivity applications consolidating hundreds of disparate systems and datacenters reducing operational costs City of New York moving 30,000 NYC workers across 100 agencies to Microsoft cloud saving millions Kentucky Dept of Education moves 700K 15M people using Live@edu around the world in more than 10,000 schools World’s largest partner ecosystem for the cloud, with 16,000 Microsoft partners

30. Recommendations Get As Educated As Possible on Key Documents e.g. Cloud Computing Strategy, 25 Pt Plan, Budget Align Solutions That Will Take Costs Out and Exploit OpEx Efficiency, Agility, Innovation Leverage ‘the MSFT Stack’ and Drive Its Advantages Find Sponsors Outside of IT and Target Quick Wins Use Your MSFT Partner Network Resources

31. Innovation in Public Sector Kent Cunningham U.S. Public Sector

32. Familiarity Choice Designed for the way people and organizations work Power of choice for deployment, partners, and devices Innovation Relationships The industry leader in IT R&D investment driving enterprise class solutions Committed to your long term success The Microsoft Vision = Value

33. Types of Cloud ServicesServices taxonomy (On-Premises) Infrastructure (as a Service) Platform (as a Service) Software (as a Service) Applications Applications Applications Applications You manage Data Data Data Data You manage Runtime Runtime Runtime Runtime Middleware Middleware Middleware Middleware Other Manages You manage Other Manages O/S O/S O/S O/S Virtualization Virtualization Virtualization Virtualization Other Manages Servers Servers Servers Servers Storage Storage Storage Storage Networking Networking Networking Networking

35. Companies

36. Applications

37. Professional Services

38. Mail

39. Calendar

40. Groups

41. Toolbar

42. Family Safety

43. Writer

44. Movie Maker

45. LiveID

46. Hotmail

47. Messenger

48. Photo Gallery

49. WL Spaces

50. SkyDrive

51. Profile

52. Photos

53. Mesh (beta)

54. Outlook Live

55. Live@edu

56. Business Productivity Online Suite

57. Exchange Online

58. SharePoint Online

59. Office Communications Online

60. Office Live Meeting

61. Exchange Hosted Services

62. Dynamics CRM Online

64. Excel

65. PowerPoint

67. Maps

68. VXML Platform

70. WL Messenger SDKs

71. WL SDK

72. Microsoft Advertising APIs

73. Silverlight Streaming SDK

74. WL Admin Center SDK

75. WL Spaces SDK

76. WL Client Extensibility APIs

77. Data Subscription Service

78. Discover, Purchase

79. Management

80. AppFabric Service

81. Connectivity

82. Access Control

83. RDBMS Service

84. Relational Data

85. Management

87. Blobs

88. Tables

89. Queues

90. Compute Service

91. Web Role

92. Worker Role

93. Fabric Controller

94. Agent 1

95. Agent 2

96. Agent n

97. ApplicationLifecycleManagement

98. Open Source SDK

99. Interactive data access

100. API data access3rd Party Cloud Services Codename “Project Sydney” IaaS Dynamic Data Center Toolkit For Hosters Dynamic Infrastructure Toolkit For System Center (Beta)

101. “Data” is the Fuel for TransformationAzure DataMarket … http://datamarket.azure.com Offers a single site to obtain public and private data Easy subscription model for possible revenue recovery Integrated plug-ins to leverage data usage within familiar tools – like Excel 2010 with the free DataMarketAdd-in

102. Scenarios Monetize content and servicesthrough DataMarket Build innovative real-time apps onWindows Azure using DataMarket Better BI by mashing up enterprisedata with industry data Build Mobile Apps using DataMarket

103. Transformational Trends NATURAL INTERACTION LOCATION SENSING SOCIALNETWORKS UBIQUITIOUS DISPLAYS UBIQUITIOUS CONNECTIVITY COMPUTING POWER & STORAGE CLOUDCOMPUTING

104. Location Sensing Niagara Falls

105. Social Collaboration

107. Speech to Text Intelligence Exchange Voice Mail Preview OneNote 2010

108. Natural User Interfaces Windows Speech Recognition

109. Microsoft Research Audio Video Indexing System (MAVIS)

110. Speech leader in mobile, cloud, pc, gaming, and auto. Automotive Financial Services and Banking Travel 888-656-4546 800-FIDELITY 800-882-8880 800-528-4800 800-872-8528 800-ETRADE-1 Shipping Pizza Ordering Search 800-637-7455 800-GoFedEx 800-DOMINOS 800-bing-411 800-PICK-UPS Wireless 411800-555-1212 Movies Healthcare Wireline 411 888-267-3515 800-FANDANGO 800-377-9220

111. The Promise of Kinect Voice Recognition An extraordinary new way to play, where you are the controller Motion Recognition Face Recognition You Recognition

112. Lessons from Kinect “What really matters is that Microsoft has now publicly embraced the (open source Kinect developments) — and that's an instance of a broad and profound change in corporate innovation.” “Contributing new capabilities to the technium, then standing back to see what new applications might arise from combining their developments with the imagination of a network of innovators”

114. Uses Speech, Gesture, and Motion

115. Controls using WPF, Bing Maps, SharePoint BI, and Kinect

116. Q: Now how do you truly measure innovation ? Patents ? Analysts ? “Buzz” ? Revenue??

117. If Your Yardstick Is Industry RecognitionMicrosoft Gartner Leader Quadrants 2000-Present IBM:11 Oracle/SUN: 10 Salesforce.com: 2 Google: 1 VMware: 1

118. Note to Apple and Google: You really do have some competition now. Microsoft will also seduce customerswith the slickand clean design ofthe Windows Phone 7 interface. Let’s just get it out of the way:Windows Phone 7 is the most excitingthing to happen to phones in a long time… Windows is a platform that cannot be ignored. This is a very fresh take.

119. Market Adoption 10 Million 20 Million 355 Million 22 Million Kinect Sensors sold in 60 days Internet Explorer 9 Beta Downloads Active Hotmail & Windows Live Users New Search customers on Bing in past 12 months Office 2010 Fastest-selling version of Office in history, 50% ahead of Office 2007 300 Million 100/day Windows 7 PCs, PC shipment forecast for 2011 is 409 million New Windows Phone 7 Applications

120. It’s tempting to look for a magic formula for innovation There is no perfect formula…but there are vital ingredients PPT REM 1

121. THE MICROSOFT APPROACH TO INNOVATION Embracing disruptions Hiring the best people A balance of invention, re-invention & evolution A commitment to openness & partnerships A long term approach A focus on scale

122. Microsoft Public Sector Demo Network www.microsoftpsdemos.com

123. “The best way to predict the future is to invent it.” - Alan Kay

124. Thank you