Microsoft Announces a More Than $2 Billion Investment To Bolster IT’s Role as Strategic Asset

DALLAS, June 2, 2003 — Today at Microsoft® Tech•Ed, Paul Flessner, senior vice president of the Windows Server System™
Division at Microsoft Corp., announced that in its next fiscal year Microsoft will invest more than $1.7 billion in research and development in Microsoft Windows Server System, Microsofts family of server software, and $450 million in community-based efforts that support information technology (IT) professionals and developers, all in an effort to amplify the strategic impact of IT. During his opening keynote address at Tech•Ed 2003, Flessner told the audience that these investments will decrease the ongoing maintenance costs associated with IT, decrease the time IT requires to deliver new business capabilities, and, most important, increase the ability of IT to provide innovative solutions that deliver competitive advantage to business.

Microsoft Tech•Ed is Microsofts premier technical training event, offering more than 400 sessions delivered by industry experts. More than 9,000 people are in attendance at Tech•Ed 2003, a 29 percent increase over Tech•Ed 2002.

“Today, customers struggle with IT being too complex and too costly a situation created by the entire technology industry,”
Flessner said.
“Ultimately our goal is to help IT professionals say Yes! to innovative new projects that propel the business forward and to enable individuals and businesses to utilize IT to its full potential. We do this by delivering great software and world-class support, backed up by a global network of partners.”

The principles that guide these investments, Flessner explained, are threefold:

  • A comprehensive, integrated and interoperable infrastructure. Customers need an integrated infrastructure that supports the development, deployment, management and eventual retirement of business functions that tie together with other business functions in an integrated fashion.

  • Software architecture. Architecture enables system pieces to fit together and integrate in a way that allows for independent investment and the evolution of IT solutions. Software architecture is the lynchpin that reduces complexity and cost, and enables future innovation.

  • Partner ecosystem and economics. No one company can fulfill all the computing needs for any business. The combination of a software architecture that allows the independent development of each piece in the whole and a vibrant and healthy ecosystem of solution providers is essential.

Investing in a Comprehensive, Integrated and Interoperable Infrastructure

In the next fiscal year, Microsoft will invest more than $1.7 billion in research and development for the Windows Server System family of products. The results of this effort will deliver value across every facet of IT:

  • Application infrastructure capabilities provide the component capabilities for closed-loop design and development. These components include data management capabilities through Microsoft SQL Server™ , and core e-business and integration capabilities provided through Microsoft BizTalk®
    Server, Microsoft Content Management Server, Microsoft Commerce Server and Microsoft Host Integration Server products.

  • Operations infrastructure capabilities enable more secure, rapid deployment and reduce the complexity of management and IT operations. These components include firewall security and caching capabilities through Microsoft Internet Security and Acceleration Server; management capabilities through Microsoft Operations Manager, Microsoft Application Center and Microsoft Systems Management Server; and networked storage capabilities through Microsoft Windows®
    Storage Server.

  • Information worker infrastructure
    capabilities enable end users to reach, analyze and share information through communication and collaboration scenarios. These components include messaging, collaboration and real-time communications capabilities with Microsoft Exchange Server, Microsoft Office SharePoint™
    Portal Server, Microsoft Project Server and Microsoft Office Real-Time Communications Server.

  • Server platform. The Windows Server™
    2003 server platform is the foundation for Windows Server System, providing the underlying security model, directory services, and operations and management services. In addition, it delivers the core application definition and programming model through the .NET Framework, and the core data and collaboration services that support the Windows Server System infrastructure. The Windows Server 2003 family, including Small Business Server, represents the core of what Microsoft delivers to IT today, and is the foundation for the companys long-term server platform strategy from small businesses to the enterprise.

Joining Flessner on stage was Brad Sherrell, assistant vice president of information technology at Pacific Life. Pacific Lifes Life Insurance Division is using Windows Server System and the Visual Studio®
.NET 2003 development system to help consolidate servers while adding new Web sites and applications in response to the growing needs of the business.

“The insurance industry is extremely competitive,”
Sherrell said.
“By using these Microsoft technologies, we are able to seamlessly integrate our IT infrastructure and, thereby, increase our competitive advantage. Pacific Life looked for an architecture to enable innovative solutions that we can get to market quickly to service our independent producers.”

Investing in IT Personnel

Microsofts primary mission with Windows Server System is to deliver great software that enables IT professionals to realize their full potential. However, Microsoft recognizes that IT professionals require more than just software. They need support, guidance, training and education, as well as a vibrant and knowledgeable community. In fiscal year 2004, Microsoft plans to invest nearly $450 million worldwide to support the IT professional and developer communities. These investments include programs such as Microsoft TechNet and MSDN®
developer program.

  • TechNet is a central information and community resource designed for IT professionals. It includes technical briefings, special offers, a Web site and an electronic newsletter in addition to a CD subscription with tools and guidance. TechNet also serves as a forum to share information, ideas and opinions with the IT community.

  • MSDN Online is the essential Microsoft developer Web site used by millions of software developers worldwide. It provides in-depth technical content, including references, technical articles, downloads and code samples, on all developer-related Microsoft products and technologies. The MSDN Subscription Program is a software service for developers providing priority access to more than 1,000 continuously updated product downloads, DVDs or CDs, using the latest tools, platform and server technologies.

Other offerings covered by this investment include these:

  • More than 200 new webcasts for IT professionals on current topics such as security

  • 16 new online skills assessments to direct IT professionals to relevant training

  • Free, two-day, on-site technical training and road show seminars for IT implementers to aid in migration to Windows Server 2003

  • An open campus program to demonstrate how Microsoft runs its IT shop

  • 125 new books for developers and IT professionals

  • 35 new e-learning training sessions

  • 39 new courses, workshops and clinics

Common Architecture

To meet the needs of constantly evolving IT infrastructures, Windows Server System defines architecture for quickly building and easily and flexibly deploying new business capabilities. In addition to implementing new business capabilities, IT organizations need to connect these capabilities together as well as retrofit existing capabilities for new infrastructure. Windows Server System addresses both these needs. It includes major investments in identity, security, naming, directory, application schema, management and other architectural constructs that are critical common elements across the entire Windows Server System family.

Industry Ecosystem

The rich ecosystem supporting the Windows Server System family of products, consisting of more than 775,000 industry partners worldwide, gives customers the flexibility of many options when looking for a solution to meet their unique geographic, size, industry and cultural requirements. Furthermore, by taking advantage of an entire industrys cumulative and sustained investment in research and development on the base of a common architecture and infrastructure, customers are able to benefit from the industrys best possible price-performance ratio.

In highlighting the growing industry partner community focused on supporting .NET Web services, Microsoft also rolled out the .NET Connected Directory, a central location where customers can find and partners can showcase Web services that have qualified for the .NET Connected Logo Program. Indicating applications and services that have been optimized for the next generation of Internet-enabled computing, the program is a valuable way for ISVs to affiliate their work with .NET and for customers to be able to find Web services solutions that will work well within their infrastructure. The .NET Connected Directory is located at .

About Windows Server System

Microsoft Windows Server System is integrated and interoperable server infrastructure that reduces IT complexity to enable IT professionals to deliver innovative solutions that meet the changing needs of business. With Windows Server 2003 at the foundation, Windows Server System is engineered from the ground up for XML Web services based on Microsoft .NET Technologies to connect information, people, systems and devices. Based on a common software architecture that spans all facets of IT from design, development and deployment through ongoing management and usage, Windows Server System provides comprehensive IT infrastructure for operations (security, systems management, networked storage), applications (data management and analysis, e-business), and information work (messaging, communications and collaboration). More information on Microsoft Windows Server System can be found at .

About Microsoft Tech•Ed 2003

Tech•Ed, one of Microsofts premier developer training events, which reaches more than 75,000 people worldwide annually, provides attendees with access to technical experts, the latest technical information, and hands-on labs to learn the skills they need to build state-of-the-art solutions. Sponsors of Tech•Ed 2003 include Dell Computer Corp., HP, IBM Corp. and VERITAS Software Corp.

About Microsoft

Founded in 1975, Microsoft (Nasdaq
) is the worldwide leader in software, services and Internet technologies for personal and business computing. The company offers a wide range of products and services designed to empower people through great software — any time, any place and on any device.

Microsoft, Windows Server System, BizTalk, Windows, SharePoint, Windows Server, Visual Studio and MSDN are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries.

The names of actual companies and products mentioned herein may be the trademarks of their respective owners.

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