Görkem Gülan

Carlos Hurtado

Carmel Roche

Lars Eriksen

Renato Zanetti

Microsoft 2000 + 4

Agenda

BackgroundStrategyProduct Specific Strategy Analysis

Desktop Server Non-PC

Recommendations

Microsoft Overview

World’s #1 Software CompanyFounded in 1975Ambition has come with a price –

lawsuitsBallmer is now the CEOChange in company focus

Value Creation for Microsoft

Extract

DeliverUnderstand

Create

Communicate

Choose

COMPANY COMPE-TITOR

CUSTOMER

COST/SPEED

VALUE/

SPEEDVALUE/

SPEED

Understand Market DriversChoose Strategic PositionCreate – Product Development – MSDN Communicate – Network ExternalitiesNetwork / Lock-In / StandardsDeliver Innovation in Product Services

Setting the StandardsInnovators

Operating System Apple

Internet Browser Netscape

Office Related Word PerfectLotus

Search Engine GoogleGaming SonyBusiness Services IBM, HP

Seven core business units1. Windows Client (incl. Win XP desktop operating system, Win 2000

2. Information Worker, (incl. MS Office, MS Publisher, MS Visio, MS Project, and other stand-alone desktop applications)

3. Microsoft Business Solutions, (Great Plains, Navision, and bCentral™ business services)

4. Server and Tools, (incl. MS Win Server System™ integrated server software, developer tools, and MSDN®.

5. Mobile and Embedded Devices, (mobile devices incl. Win Pocket PC, Mobile Explorer microbrowser, and Win Smartphone)

6. MSN (MSN network, MSNTV, Hotmail, other Web-based services)

7. Home and Entertainment, including Microsoft Xbox®, consumer hardware and software, online games, and our TV platform.

Agenda

Microsoft Overview Strategy Product Specific Strategy Analysis

Desktop Server Non-PC

Recommendations

Value Creation for Desktops

Extract

DeliverUnderstand

Choose

Understand

• Risk : Rapid Changing technology.

•Timing : For innovation and market penetration

•Standardization War

Strategic Position

•Bet on different alternatives

(IBM, Mac, Windows)

•Reduce lead times

•Alliances

Wintel

Product Development

Windows 3.0

Office

Create

Communicate

Network Externalities Derived from Windows OS

88% Market Share

Windows became the standard OS Worldwide

Lock-in effect

• Windows 95, Windows 98, Windows NT, Windows 2000

• MS Office

• Internet Explorer

Market Development through Windows

Supply Side Development with

ISV’s Alliances with OEM’s

and suppliers (Intel)

Demand Side Suite applications.

Office Marketing efforts to

penetrate channels. Retail and Internet recently

First get the platform to affect the both sides

Agenda

Microsoft Overview Strategy Product Specific Strategy Analysis

Desktop Server Non-PC

Recommendations

Value Creation for Servers

Extract

DeliverUnderstand

Create

Communicate

Choose

The need for alternativesolution for expensivemainframes

Radical approach basedon existing product line

Large capability on PCScalable architureLow initial investmentStandard look&feel

Leadership inserver market

Launch of NT in 1993Proven distribution channel

(MSDN networkalliances...)

Provision of new capabilities throughimproved and new product releases

(Windows 2000Windows 2003)

Threats and Responses

Overall threats Radical

changes in company communi-cations and technology

New client server approach

Bad reputation and stability

New Thin Client approach Shift in

empowerment from client to server

Applications no longer needed on user PCs

Launch of Windows NT Termınal Server

Linux platform Better stability

and perfomance Lower TCO Microsoft

licensing model too complex

New capabilities with Windows 2000 and 2003

Agenda

Microsoft Overview Strategy Product Specific Strategy Analysis

Desktop Server Non-PC

Recommendations

Non-PC Development

PC

Internet

Comm

TV

Boundaries disappeared(driven by mobility)

Microsoft reacted by• Strategy change• Focused more on the new business units

Shift in Microsoft Strategy

Original Strategy

A computer on every desk and in every home.

New Strategy

Empowering people through great software, any time, any place and on any device.

Changing Trends

Handheld PC Microsoft wanted to be the standard for this new trend with

Windows, Office and Explorer Bill Gates visioned a world where any files or messages

could be displayed on every device

Mobile Phones Similar to the handheld devices, Microsoft wants to be the

standard for mobility and this is also valid for mobile phones

Microsoft wanted to be the Handheld PC and Mobile

Phones standard to be the mobile comm. standard

Changing Trends – continued Broad Band Communications

(Telephone and broadband networks with data transmitting posibilities)

Microsoft wanted to be the standard in this arena as well. Acquired WebTV : Internet via TV

Wanted to use the Windows CE version as WebTV OS Video Games

Microsoft seen that home entertainment was one of the important trends and wanted to enter the segment with X-Box, as a support to its Broad Band Communication.

X-Box&Broad Band communication will allowMicrosoft to be the home entertainment standard

Agenda

Microsoft Overview Strategy Product Specific Strategy Analysis

Desktop Server Non-PC

Recommendations

Recommendations

Increase industry collaboration Better reputation Raise further opportunity for other industry players Diminish the impact of legal issues

Increase the information sharing Provide more information on software interfaces and

capabilities Better interoperability with third party software application

Improve technical product stability and reliability Reduce margin of Linux’s competitive advantage Improve product reputation

Strengthen strategic alliances for the new Non-PC areas (Bluetooth and others) to go hand-in-hand with mobility strategy of Microsoft

Windows Mobile

Windows Everywhere

Recommendations - continued

Thanks for Listening!