Microsoft Outlines Unique Vision for Reducing IT Complexity with the Dynamic Systems Initiative

LAS VEGAS, March 16, 2004 — Today at the third annual Microsoft Management Summit, Bob Muglia, senior vice president of the Windows Server Division at Microsoft Corp., laid out Microsoft’s unique vision and technology road map for reducing the cost and complexity of managing and securing enterprise systems: the Microsoft Dynamic Systems Initiative. During an address to a sold-out audience of more than 2,000 information technology (IT) professionals, Muglia underscored the value of the Dynamic Systems Initiative (DSI) in helping customers do more with less by building manageability into applications during the development stage, and connecting the developer, IT professional and end user through the application life cycle.

“This is an issue where the industry has overpromised and underdelivered while our enterprise customers continue to feel the pain of managing their systems,” Muglia said. “Our approach with DSI is to help customers get every dollar out of their IT investments by making software more manageable from the ground up.”

According to an Accenture study, IT professionals spend up to 70 percent of their time maintaining existing systems, leaving little time to develop new capabilities that add real value to their businesses. With the Dynamic Systems Initiative, Microsoft aims to reduce the maintenance ratio to 55 percent by automating many of the routine tasks associated with updating systems and deploying applications. Today management software is applied after the applications are deployed in the enterprise. Through the Dynamic Systems Initiative, Microsoft will shift this operational intelligence into the application itself, reducing the need for traditional management software.

Bringing Developers, Operations and End Users Closer Together

Connecting IT managers with their development staff and end users is critical to realizing the long-term vision of the Dynamic Systems Initiative, and the System Definition Model (SDM) is a key technology that will be supported across Microsoft and partner products to enable that connection. Underscoring the growing level of industry support for DSI, Muglia announced that Microsoft hosted a design preview for influential industry partners and customers with more than 150 participants to solicit input and further refine the core SDM schema. The SDM is a key DSI technology designed to provide a common language for describing a system across its life cycle, from design through deployment to ongoing operations, to enable IT professionals to deliver more agile IT systems. With increased agility, end users can expect an improved experience through better application performance and increased productivity.

“Running our business with maximum efficiency is a top priority for us,” said Ken Goltara, vice president of Business Systems Development for Toyota Motor Sales USA. “The management innovations that Microsoft’s Dynamic Systems Initiative is designed to deliver have the potential to add tremendous new business value.”

Delivering on the Dynamic Systems Initiative

Muglia explained how businesses can automate the design, deployment and operation of their distributed systems with DSI products already delivered, including Windows Server 2003, Microsoft Software Update Services and Systems Management Server 2003. Building upon this DSI foundation, Muglia made several announcements about products designed to improve the manageability and security of Windows Server System:

  • Windows Update Services , an evolution of Software Update Services 1.0, was released to beta today. Windows Update Services is a major step forward in Microsoft’s patch and update management strategy, providing customers with additional automation and control that reduces interruption when updating systems; and expanded functionality to update SQL Server, Exchange Server, Office 2003 and Office XP.

  • Microsoft Operations Manager (MOM) 2005 , entering its final beta cycle today, delivers faster return on investment through greater ease of use and deployment; management packs with next-generation knowledge for Microsoft and partner products; and support for business activity monitoring and Web Services management.

  • Microsoft Operations Manager 2005 Express , a low-cost solution for organizations that require simple monitoring capabilities for Windows Server System, was released to beta today. It also is designed to broaden the reach of management packs through a simplified development environment for partners.

  • System Center 2005 , is Microsoft’s first integrated management suite for Windows Server System, and includes Systems Management Server 2003, MOM 2005 and a new common reporting system. Now going into beta, System Center 2005 provides an end-to-end perspective on configuration and performance of Windows environments for customers of all sizes.

  • Systems Management Server 2003 Feature Packs for Operating System Deployment and Device Management extend the capabilities of Systems Management Server 2003. The Device Management Feature Pack, entering beta today, allows Systems Management Server 2003 to manage Windows-based devices running Windows CE, Windows Mobile-based Pocket PC and Smartphone software. The OS Deployment Feature Pack allows Systems Management Server to deliver bare-metal provisioning of desktops for IT professionals.

Mulgia also spoke about the critical role that partners play in realizing the Dynamic Systems Initiative. He cited partner efforts for Microsoft Operations Manager, including a new CRM management pack for Siebel Systems eBusiness Applications, VERITAS Software Corp.’s new Management Pack, Hitachi’s connector for Job Management Partner 1 (JP1), and Microsoft connectors for IBM Tivoli and HP OpenView.

About Windows Server System

Microsoft Windows Server System is an 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

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

Microsoft, Windows Server, Windows Server System, Windows, Windows Mobile, Windows NT, Active Directory and BackOffice 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.

Note to editors: If you are interested in viewing additional information on Microsoft, please visit the Microsoft Web page at on Microsoft’s corporate information pages. Web links, telephone numbers and titles were correct at time of publication, but may since have changed. For additional assistance, journalists and analysts may contact Microsoft’s Rapid Response Team or other appropriate contacts listed at .

Quote Sheet

Microsoft Management Summit 2004

“Our enhanced integration with Microsoft Operations Manager 2005 is in direct response to the requirements of our many customers that are developing Web services on the Microsoft .NET Framework and using Microsoft Operations Manager to manage their enterprise systems. As part of Microsoft’s Dynamic Systems Initiative, MOM 2005 brings important new proactive capabilities for systems management. We’re extending and enhancing those capabilities to Web services systems to help our customers benefit from Microsoft’s investments in DSI today.”

– John Hubinger
AmberPoint Inc.

“Aprisma is excited to work with Microsoft to manage networks, applications and services in a Windows-based IT infrastructure. As part of an effort to reduce customers’ data center management complexities along with Microsoft’s Dynamic Systems Initiative, Aprisma’s SPECTRUM Connector for MOM adds up to a cost-effective way to drive efficiency and effectiveness in managing IT infrastructure as a business service.”

– Mike Fabiaschi
President and CEO
Aprisma Management Technologies

“Our customers currently use Enterprise Configuration Manager (ECM) and Microsoft Systems Management Server (SMS) 2003 side by side to build and maintain secure and reliable IT infrastructures. The integration of ECM with SMS, which provides complementary management functions, will enable our customers to seamlessly leverage the combined capabilities of these two powerful technologies. Together, ECM and SMS significantly reduce the management and maintenance costs for large Windows-based networks. The tight integration of these two products will be a boon for our base of large-enterprise customers.”

– Alex Goldstein
President and CEO

“eXc Software uses its Virtual Agent technology to create EXPANDers and CONNECTORs that solve the multiplatform monitoring/control dilemma by seamlessly integrating into MOM. This extends MOM’s span of control to non-Windows-based platforms and/or integrates MOM into customers’ existing Systems Management solutions. NOC or IOC personnel retraining or cross-training is unnecessary. eXc Software has started to use this same technology in the SMS space, alleviating the need for SMS agents/objects on non-Windows-based devices.”

– Norm Freedman
eXc Software

“Among our clients, we find an increasing focus on maturing operations processes surrounding Microsoft technologies. They recognize that improved process maturity will not only contribute to better technology performance, but will also help them better express the business value of operations.”

– David Pultorak
Fox IT

“AdminStudio and SMS 2003 provide systems administrators with seamless package preparation and distribution. We are excited to take our relationship to a new level and provide even tighter integration, enabling IT departments to rapidly deploy highly reliable applications.”

– Lynn Sweetwood
Vice President and General Manager for Enterprise Software
InstallShield Software Corp.

“The Microsoft brand and reputation are second to none, and we are delighted to be a Microsoft Certified Partner. This partnership has brought forth the MetiLinx Connector for Microsoft Operations Manager (MOM). The MetiLinx Connector extends MOM by enabling it to monitor and automate heterogeneous server environments, including Linux, AIX, Solaris, HP-UX, and Windows NT as well as Windows 2000 and Windows Server 2003. MetiLinx is supporting and collaborating on many of Microsoft’s management initiatives, including the Dynamic Systems Initiative and the Systems Definition Model, as well as ensuring that our products add customer value to future versions of MOM, Systems Center and other Microsoft offerings.”

– Larry Ketchersid
Executive Director
MetiLinx Inc.

“With NetIQ Extended Management Pack version 1.5, we are delivering on our customers’ requests to provide out-of-the-box best-practice management that deploys and engages automatically. This improves time-to-value for customers, avoids the need for extensive configuration, and helps them achieve results almost instantly.”

– David Pann
Vice President of Product Management and Product Marketing
NetIQ Corp.

“Microsoft bakes its unique knowledge of Windows-based applications into MOM, providing users with an outstanding framework for comprehensive, proactive IT operations management. With six Management Packs for MOM, NetPro is committed to ensuring that MOM’s value is extended to key distributed infrastructures, including Active Directory, Microsoft Identity Integration Server (MIIS) 2003 and DNS. Together, Microsoft and NetPro are a powerful combination for streamlining distributed services management and solving customer problems while driving customer value and satisfaction.”

– Kevin Hickey
President and CEO
NetPro Computing Inc.

“We are excited about working in partnership with Microsoft to deliver a workflow environment that automates response procedures and corrective actions from MOM. The new OpalisRobot CAP for MOM will deliver the automation and integration functionality required to provide customers with an intelligent, self-healing data center.”

– Scott Broder
President and CEO
Opalis Software

“SMS 2003 support in Survey 3.4 provides our customers with the ability to leverage their existing investment in Microsoft BackOffice tools to lower upgrade costs by redeploying unused desktop software. Survey detailed usage metrics will identify underutilized software applications, and SMS 2003 will allow us to remove or redeploy it in the enterprise. Using Survey 3.4, companies can immediately take action on reported information to avoid redundant IT purchases, lower IT maintenance costs and increase the utilization of existing IT assets.”

– Ron Smith
Vice President of Marketing
Scalable Software Inc.

“Siebel Systems is committed to supporting solutions from key partners that further enhance the ease of use of our customers’ Siebel 7 business application deployments, and Microsoft Operations Manager provides powerful administrative capabilities that accelerate the benefits our solutions provide. The combination of Siebel CRM solutions and Microsoft Operations Manager can increase application service levels and availability, reduce costs, and create a consolidated, easily manageable real-time business platform.”

– Arun Balaraman
Group Director
Siebel Systems Inc.

“Silect Software’s product initiatives are designed to maximize the return on investment for organizations deploying Microsoft Operations Manager. We are delighted to see Microsoft Operations Manager gaining significant traction in the market, and this growing opportunity is central to our business. We strongly believe that Microsoft’s management products are the ideal platform upon which we can build our vision to take IT management to the next level, and Microsoft is proving to be a strong partner in supporting our efforts.”

– Harold Dyck
Silect Software Inc.

“Skywire Software’s iWave Integrator product has been assisting companies with integration since 1993. Our goal is to support companies in managing their complex IT environments. With our iWave Integrator adapter for MOM 2000, we are allowing users to manage heterogeneous IT environments more easily, beyond the Microsoft environment that MOM handles.”

– Patrick Brandt
Founder and CEO
Skywire Software

“Tidal Software is pleased to see Microsoft continuing to advance its Microsoft Operations Manager offering, and we certainly view it as an important platform for our enterprise customers. The TIDAL Enterprise Scheduler product line already extends Microsoft Operations Manager to manage automated business-critical workflow processes. And now, at Microsoft Management Summit 2004, we are proudly introducing the ability to extend MOM to manage the performance and availability of the popular mySAP applications, in the new Horizon for SAP product.”

– Stephen Kangas
Senior Vice President of Strategic Alliances and Marketing
Tidal Software

“Vintela agrees with Microsoft that the need for a management vision like Microsoft’s Dynamic Systems Initiative has been a long time coming. Vintela solutions allow enterprise organizations to leverage their Microsoft infrastructure investments across all platforms while consolidating their resource expertise around a single set of management tools.”

– Chris Skillings
Vintela Inc.

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