New South Wales Government Road Show FY 06

What we want to achieve in this session? q Inform about the results of NAMS after 3 years q Invite you to share your experience with others q Discuss potential changes and enhancements for the future q and especially collect feedback from you helping us to make NAMS even more valuable for NSW Government in the future © 2006 Microsoft Corporation. All rights reserved. Page 2

NSW Agreement for Microsoft Software NAMS Background NAMS Results after 3 Years Improving NAMS Software Assurance Benefits under NAMS Services, Workshops, Support and Others Next Steps © 2006 Microsoft Corporation. All rights reserved. Page 3

NSW Agreement for Microsoft Software NAMS Background NAMS Results after 3 Years Improving NAMS Software Assurance Benefits under NAMS Services, Workshops, Support and Others Next Steps © 2006 Microsoft Corporation. All rights reserved. Page 4

Goals with NAMS NSW Government goals: Reduction in IT costs through umbrella agreement with volume take-up of 60, 000 desktops 90, 000 desktops 120, 000 desktops in year 1 in year 2 in year 3 Significant price advantage over GOLP Predictability through fixed price for 5 years Easier license management & reduced risk of non compliance Costs based on the number of PCs, not based on volumes of individual products Flexibility for agencies Individual decision by agencies Annual opportunity to adjust commitment based on individual requirements Added by Microsoft after contract was signed: Set of value adding benefits like Training Voucher, e. Learning, Technet, free telephone support for server technology, … © 2006 Microsoft Corporation. All rights reserved. Page 5

NAMS in brief NAMS = New South Wales Agreement for Microsoft Software Open for NSW State Government NSW Local Government NSW managed federal agencies Not-For-Profit Organisations Co-ordinated by NSW Dept of Commerce Five year agreement Enrolments for organisations last for three years or more © 2006 Microsoft Corporation. All rights reserved. Page 6

NSW Agreement for Microsoft Software NAMS Background NAMS Results after 3 Years Improving NAMS Software Assurance Benefits under NAMS Services, Workshops, Support and Others Next Steps © 2006 Microsoft Corporation. All rights reserved. Page 9

NAMS Snapshot March 2003 q q > 180 individual customers 92, 500 desktops Saving FY 06 for NSW Government > $A 7. 5 m NAMS benefits of more than $A 20 m to date q q q q 2, 530 Training Vouchers >400 Server Support Calls 925 copies of Technet Plus e. Learning for Operating System, Desktop and Server Right to procure PCs with Windows XP Home Deployment Workshops for >100 employees Customers very satisfied with value, ease, flexibility & predictability Interesting: Customers prefer Subscription Customers ask for clarity above 2008 Additional customers want to join now Customers request more products / solutions being available Customers ask for change of some rules Customers ask for Services & Support from Microsoft © 2006 Microsoft Corporation. All rights reserved. Page 10

NSW Agreement for Microsoft Software NAMS Background NAMS Results after 3 Years Improving NAMS Software Assurance Benefits under NAMS Services, Workshops, Support and Others Next Steps © 2006 Microsoft Corporation. All rights reserved. Page 13

Potential ways into the future with NAMS model 2003 - 2008 Let NAMS run out in 2008 Extend NAMS as it is for future years © 2006 Microsoft Corporation. All rights reserved. Page 14 Replace NAMS by an allinclusive offering Redesign NAMS to reflect new solutions

Extended NAMS structure 01. 07. 2003 01. 07. 2004 01. 07. 2005 01. 07. 2006 + 1 year Enrol in June / July 2004 01. 07. 2008 01. 07. 2009 01. 07. 2010 01. 07. 2011 + 1 year Enrol in June / July 2005 Extension Today Enrol in June / July 2003 01. 07. 2007 Enrol in June / July 2006 + 1 year Enrol in June / July 2007 + 1 year Enrol in June / July 2008 Review NAMS © 2006 Microsoft Corporation. All rights reserved. Page 15 Review NAMS

Advanced Infrastructure: MOM, SMS, SPS, SQL Core Infrastructure: Windows, Exchange Desktop Applications: Windows, Office, Project, Visio © 2006 Microsoft Corporation. All rights reserved. Page 16 NAMS Today Biz Apps: EPM, CRM, Doc Management, Biz Planning, Integrated Finance, Workflow, Biz Apps Integration, Adv. Collaboration Extended NAMS Product Mix Making additional Products & Solutions available under NAMS

Core Element NAMS entry point around Office & Windows OS Enterprise Edition Upgrade including Windows Defender (Anti Spyware) Win. PE (Windows Pre-Installation Environment) Virtual PC Express (original OS + 1 guest OS) Full Volume HD Encryption (theft protection) Windows Fundamentals (support for older HW) Windows CAL & Exchange CAL Office Standard or Professional Windows TS CALs for 15% of desktop count Questions: Mix of Office Standard and Professional? Increased rate of Windows TS CALs? © 2006 Microsoft Corporation. All rights reserved. Page 18

Basic Information Worker Desktop products for increased desktop productivity Visio Professional Front. Page One. Note Infopath Forms Server Comment: Part of replacement of Non Office Apps Questions: Should Visual Studio be included? Replacing complex “usage calculation” in NAMS by buy-out restriction? © 2006 Microsoft Corporation. All rights reserved. Page 19

Enterprise Project Management Products to manage single and multi-project environments Project Standard or Professional Project Server & CALs Comment: Part of replacement of Non Office Apps Questions: Should Visual Studio be included? Replacing complex “usage calculation” in NAMS by buy-out restriction? © 2006 Microsoft Corporation. All rights reserved. Page 20

Workflow Management Business solution to manage and administer business-wide workflows Workflow Manager & CALs Forms Server Graphical workflow design Client Info. Path is part of Office Professional Questions: Should Visual Studio be included? © 2006 Microsoft Corporation. All rights reserved. Page 21

Business Planning & Scorecards Enterprise solution to manage the business planning process and to administer business scorecards Business Central & CALs Business Scorecard Manager & CALs Questions: Should Visual Studio be included? © 2006 Microsoft Corporation. All rights reserved. Page 22

Customer Relationship Management Technology for Managing internal or external customer relations CRM Server CRM Professional Questions: Should Visual Studio be included? © 2006 Microsoft Corporation. All rights reserved. Page 23

Infrastructure Technology for basic File Sharing & Print, Application Platforming and Email Windows Std / Ent Server Exchange Std / Ent Server Speech Server (for Exchange) Questions: Should Virtual Server be included? © 2006 Microsoft Corporation. All rights reserved. Page 24

Security Technology for Identity Integration & Management, Business Firewall, Server Anti Virus and Server Anti Spam Identity Integration Server ISA Server Antigen CALs for Exchange Share. Point Instant Messaging Antigen Spam Manager for Exchange Question: Microsoft is going to release a desktop security offering for home users. Should such an offering be included in NAMS? © 2006 Microsoft Corporation. All rights reserved. Page 25

Deployment & Management Technology for Desktop Deployment and Management and Server Management System Management (Server & CALs) Microsoft Operations Manager (Management & Server) System Centre Data Protection (Management & Server) Comment: Part of replacement of Core Server Option © 2006 Microsoft Corporation. All rights reserved. Page 26

Communication Technology for Live Meetings and integrated Multi Channel Communication including Telephony Integration & Vo. IP Office Communicator Live Communication (Server, CALs) Telephony CALs © 2006 Microsoft Corporation. All rights reserved. Page 27

Data Management & Business Intelligence SQL Server Database Management SQL Server Standard / Enterprise 32 / 64 bit Based on CALs / based on processors Questions: Should Visual Studio be included? © 2006 Microsoft Corporation. All rights reserved. Page 28

Collaboration Technology for internal and external Collaboration and Business Portal Ad Hoc Collaboration (Groove) Share. Point Portal (Server & CALs) Content Management Server Comments: Part of replacement of Core Server Option Questions: Should Visual Studio be included? © 2006 Microsoft Corporation. All rights reserved. Page 29

Business Application Integration Technology to connect different business application, i. e. Finance and Document Management Biz. Talk Server & all available adapters ERP Systems, i. e. SAP 4. x and 6. 20, JD Edwards, Peoplesoft, Oracle Applications 3 rd party databases i. e. Oracle, DB 2 3 rd party CRM systems, i. e. Siebel, Clarify. CRM Other Business Applications, i. e. Windows Share. Point Services, Tibco Rendezvous & EMS, Websphere MQ 2. 0 Structured Files, i. e. Host Applications & Host Files (IBM mainframe), Base EDI Questions: Should Visual Studio be included? Should MENDOCINO be included in this option? © 2006 Microsoft Corporation. All rights reserved. Page 30

External Connectors Technology to enable external biz apps communication & collaboration for All external connectors Customer Relationship Management Exchange & Live Communication Server Business Scorecard & Enterprise Project Management Share. Point Portal Server Windows Server & Web Server & Terminal Server Should Visual Studio be included? © 2006 Microsoft Corporation. All rights reserved. Page 31

Core Financials and Asset Management Advanced Financials Procurement & Sales Customisation Tools Business Applications (Microsoft Dynamics) for Core Financial & Asset Management Advanced Financials Procurement and Sales Customisation © 2006 Microsoft Corporation. All rights reserved. Page 32

General questions about NAMS Structure Element Annual Costs Operating Annual Costs Ownership Core Professional $A 260 $A 230 Infrastructure Server Option $A 18 $A 12 SQL Server Option $A 60 $A 39 Total $A 338 $A 281 Fact: 90% of NAMS customers run Infrastructure Server 75% of NAMS customers run SQL Server Question: Should these options be included in the Core for all customers? If so, should Visual Studio also be included in the Core? © 2006 Microsoft Corporation. All rights reserved. Page 33

NAMS Ownership and NAMS Operating NAMS Ownership Model (Costs based on Software Assurance) Advantage Slightly lower price Disadvantage Requirement to count licenses and product classes and buy base licenses Expensive to increase desktop count Expensive to add new options, technologies Desktop count can grow, but not shrink Current usage 25% NAMS Operating Model (Costs based on Subscription) Advantage Cost efficient entry in NAMS w/o previous EA or SA No requirement to count licenses Desktop count can grow and shrink Disadvantage Theoretically 9 years to qualify for Ownership at no extra costs Current usage 75% Several customers request moving from Ownership to Operating because of ease, flexibility, predictability & unlimited access and because of lower long-term costs Question: Would you consider moving from Ownership to Operating to take advantage of these benefits? © 2006 Microsoft Corporation. All rights reserved. Page 34

And what would the costs be? Will depend on final structure ( your feedback) Some ideas for your planning: Costs for existing components similar to current model Most new components potentially between $A 20 and $A 50 Enterprise Business Applications higher Special conditions for entire Groups and the Lot © 2006 Microsoft Corporation. All rights reserved. Page 36

NSW Agreement for Microsoft Software NAMS Background NAMS Results after 3 Years Improving NAMS Software Assurance Benefits under NAMS Services, Workshops, Support and Others Next Steps © 2006 Microsoft Corporation. All rights reserved. Page 37

More benefits for NAMS Customers q Training Vouchers to skill up IT Pros q q Services Vouchers for Desktop Deployment Planning and other standard Services e. Learning Extended Hotfix Support incl. Desktop Apps. Procurement of PCs with XP Home q q q 24 x 7 Telephone Support Unlimited Internet Support Cold Back Up for Disaster Recovery Tech. Net Plus © 2006 Microsoft Corporation. All rights reserved. Page 38 q q Enterprise Source License Program Home Use Program Employee Purchase Program Corporate Error Reporting

NAMS Benefits: Training Vouchers & Support Number of Desktops >250 >2, 500 >6, 000 Training Days 30 45 75 Desktop Support Calls 0 5 12 NAMS Option Infrast. SQL Deploym. Security # Desktops for 1 Server Support Call ~ 150 ~ 250 ~ 400 ~ 550 Server Web Support unlimited q Amount of training vouchers & support calls over 3 years q Desktop Support: q 1 support call for every 500 desktops q Server Support: q 1 support call for every customer q 1 support call for every $A 30 k on servers & CALs q Calls are transferable between desktop and server © 2006 Microsoft Corporation. All rights reserved. Page 40

NAMS Benefits: Service Days For NAMS Core Element Number of Desktops ~ 200 ~ 500 ~ 2, 000 ~ 4, 000 Service Days 1 3 6 10 For NAMS Core Element + NAMS Basic Information Worker + NAMS Enterprise Project Management Number of Desktops ~ 150* ~ 350 ~ 1, 500 ~ 3, 000 Service Days 1 3 6 10 q Amount of service days over 3 years q Exact amount is calculated on value of desktop applications q Training Vouchers can be exchanged for Service Days q 2 Training Vouchers for 1 Service Day q Maximum 20 Training Vouchers for 10 Service Days q Potential use Service Days against Packaged Services catalogue © 2006 Microsoft Corporation. All rights reserved. Page 41

NSW Agreement for Microsoft Software NAMS Background NAMS Results after 3 Years Improving NAMS Software Assurance Benefits under NAMS Services, Workshops, Support and Others Next Steps © 2006 Microsoft Corporation. All rights reserved. Page 42

NAMS: Packaged Services q Packaged On Site Services designed for certain NAMS options q Take Up of services in line with anniversary process; Microsoft Consulting Services working with customers to clarify dates q Potentially use of Training Vouchers for certain packaged services © 2006 Microsoft Corporation. All rights reserved. Page 43

NAMS: Customer Workshops q Class Room Workshops at Microsoft designed to align with certain NAMS options q Take Up of workshops in line with anniversary process; Microsoft Consulting Services working with customers to clarify dates © 2006 Microsoft Corporation. All rights reserved. Page 44

Others Would it be of value to extend NAMS even further for i. e. Mobile devices like Pocket. PCs or Smart. Phones Tablet. PCs Microsoft Hardware (Keyboards, Mice) XBOX for i. e. Community Centres Managed Desktop Services Packaged Implementation Services © 2006 Microsoft Corporation. All rights reserved. Page 46

NSW Agreement for Microsoft Software NAMS Background NAMS Results after 3 Years Improving NAMS Software Assurance Benefits under NAMS Services, Workshops, Support and Others Next Steps © 2006 Microsoft Corporation. All rights reserved. Page 47

From here to an extended NAMS model Topic What Time NSW Road Show Collect feedback about NAMS and input for potential enhancements March 2006 Internal preparation Analyse feedback and work out draft for enhanced model March 2006 Discussion with NSW Dept of Commerce Adjust existing contract to reflect requested changes March / April 2006 NAMS Road Show 2 hour breakfast session in 9 weeks at the same location May 2006 Signing Enrolments Customers can transition from current model to enhanced model June / July 2006 © 2006 Microsoft Corporation. All rights reserved. Page 48