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3 150 Million licenses sold since launch 55% of survey respondents expect to deploy Windows 7 system-wide rather than upgrading as new PCs are purchased

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8 Windows 7 Adoption Opportunities for Partners, Today Al Gillen Program VP, System Software Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.

9 Agenda Status of Windows 7 Adoption Services Opportunities IDC Aug-10 9

10 Timeline for Migration Activities What is the timeframe in which you will begin the migration of cycle you described in the previous question? Observations 6% 11% 39% Remarkably high % of customers already having started a migration 18% 25% Only 11% don t know when they will begin to migrate 0% said they start a migration more than 24 months out from today N=343 Migration is already underway Migration will start in the next 6 months Migration will start between 6 and 12 months from now Migration will start between 12 and 24 months from now No specific timeframe identified yet This is aggressive for Windows adoption IDC Source: IDC Windows 7 and Office 2007 Adoption and Experience Study, April 2010 Aug-10 10

11 Most Orgs Plan PC Refresh/Deployment PC Replacements Plan Replaced by 19% Windows % 18% Thin clients and/or client virt 6.3% 6% 54% Windows Vista 4.7% Mac OS X or Linux 3.2% 3% 0% 20% 40% 60% 80% We will slow down our refresh cycle. Will accelerate our refresh cycle much faster than normal Will slow refresh cycle initially, accelerate after we believe W7 is mature Will accelerate our refresh cycle somewhat faster than normal This is a tech refresh cycle, part of our normal replacement program N=358 N=343 Observations PC refresh/new Windows deploy is a common way to approach new OS adoption Only 6% plan sustained acceleration of replacements Thin clients offer a growing partner opportunity IDC Source: IDC Windows 7 and Office 2007 Adoption and Experience Study, April 2010 Aug-10 11

12 Windows Deployments Shipments/Subscriptions/Deployments (Paid + Free) Licenses/Deployments (000) Observations Windows Vista shipments fading away quickly We expect Windows 7 to be very successful, but Win XP Pro continues to have a l-o-n-g tail 500, , , , , , , , ,000 50,000 Win 7 Pro + Enterprise Win Vista Bus + Enterprise Win XP Pro Win 7 Home + Ult Win Vista Home + Ult Win XP Home Win 2000 Win (nonpaid) IDC Source: IDC, 2010 Aug-10 12

13 Application Strategy for Windows 7 What is your application strategy for migrating to Windows 7? We will test our applications, and retain the majority of applications that can be supported aboard Windows 7 We hope to reuse all our current applications without modification We will deploy applications on Windows 7 that are compatible, and will use other technologies such as application virtualization and client virtualization to support other applications that won't run natively on Windows 7 We will replace most or all of our applications as we move to Windows 7 Observations Apps are known to be a barrier to adoption Customers are not approaching Windows 7 with unrealistic expectations Customers expect app issues, and will in many cases need help with mitigation/replacement N=345 0% 10% 20% 30% 40% 50% IDC Source: IDC Windows 7 and Office 2007 Adoption and Experience Study, April 2010 Aug-10 13

14 Services Needs for Migration What external services do you plan on using to assist in the migration to Windows 7? (Select all that apply) Application compatibility and/or compatibility testing Build and Maintain new image Application packaging (packaging or repackaging existing applications so they can install properly onto Windows 7) Application rationalization to determine if you can reduce the number of application you currently support Observations Services opportunity exists, but the time is now Opportunity for migration services as well as software development services Security consulting 0% 10% 20% 30% 40% 50% 60% N=358 IDC Source: IDC Windows 7 and Office 2007 Adoption and Experience Study, April 2010 Aug-10 14

15 Questions? Please questions to me at: IDC Aug-10 15

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18 https://psx.partner.microsoft.com/psx/signin.aspx

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24 partner.microsoft.com/windowsoptimizeddesktop

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