Standard Sales Presentation

Partner Forum October 2008

Kelvin HoSmall, Midmarket, Partners & Solutions Director

kelvinho@microsoft.com

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Agenda

Quarterly Business Update – Kelvin HoE Government – Chris RobertsThe business of Government – doing business from an ICT perspective with South African Government - Dorothy Haggard

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Q1 BUSINESS REVIEW

Rand Tumbles ….Finance Week, 23 March 2008

The Rand tumbled to a three year low following worse than anticipated current account deficit

CPIX at double digits as era of low inflation endsBusiness Day, 24 April 2008

Another interest rate hike looms when Bank meets in June.INFLATION rocketed by more than 10% last month, scaling a new five year peak, that was well above expectation

Confidence at new low as SA feels the pinch Business Day, 18 February 2008CONFIDENCE in the economy and business prospects fell to a near five-year low in February, hammered by rising inflation, higher interest rates and power cuts, a global marketing and social research firm said yesterday. Rising Bad Debt risk to

companies, householdsBusiness Day, 25 April 2008 Business failures up 23%; consumer debt at 77,6% of disposable income. Company failures rose an annual rate of 23% last month, official data showed yesterday, while non performing loans surged 56%in the final quarter

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Q1 Update

Challenging September, external factors impacting at the same time – which has resulted into a flow over into Q2Focus is on increasing Market Share in these volatile and uncertain times

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• WIN Customers

Windows Server Committed License Growth

Windows Server Share of Internet Web Servers

Office Unmanaged Licenses

Enterprise Search Design Wins(incl. FAST)

Notes Desktop Switchers

Growth in fully allocated Revenue (SMSP)

Performance Point Customer Adds

Dynamics ERP Customer Adds

Windows Mobile Connected Units

Education Units Growth

Commercial Active Windows Live IDs

MDOP Attach to EAs

DRIVESatisfaction

NSAT Overall

Unmanaged NSAT

Desktop Deployments - Vista

Desktop Deployments - Office

InnovateDevelopers Targeting Microsoft Client PlatformNext Generation Client Runtime Deployment

Voice Enabled Customers

Top Stories – Citizenship & Innovation

GROWthe Business

Net Revenue VTB

Contribution Margin VTB

SQL Server Billed Revenue Growth

Systems Centre Management Attached to Windows server licenses

Virtualisation: Server management Suite Enterprise edition billed revenue

Enterprise CAL Suite Billed Revenue Growth

Security Billed Revenue Growth

Dynamics Adjusted Revenue VTB

SMSP Breadth Open Billed Revenue Growth

BOS Attach for Field OEM

MCS Enterprise Service Line Offerings adoption

PEOPLEWHI

Business Scorecard

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Key Takeaways

Leadership announcementsCampaigns – out over the next two weeks

Upgrade the desktop Security and Reliability Campaign – Wave 2Genuine Software InitiativeBusiness Software Alliance

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The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after

the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.