MS Strategy for Software + ServicesGurprit SinghDirector, Emerging TechnologiesMicrosoft UK

What's Next?

Client-Server

Web

SaaS?SOA?

Web 2.0????

Mainframe

DriversDrivers

•Technical•Increase in CPU, Bandwidth, Storage•Increase in connectivity•Mobile devices

•Business•New business models•Advertising•Long tail•Outsourcing•Off-shoring

•Social / Demographic•Desire to create•Desire to belong• Globalisation

Characterised by•Consumer & SMB initiated

•Web 2.0 and games•No IT/ little IT

•Participative•Read Write Web

•Wikipedia•Podcasting

•Collaborative•Blogs, Wiki’s

•Ad based

The Common Denominator

Service deliveryService compositionService experience & economics

SaaSSOA

Web 2.0

Services are software+Take an expansive view+Need integration+Want platform

= Software + Services

Thick OR Thin

Onsite OR Off

Control OR Unrestrained

Customized OR Generic

ServicesSoftware

The Power of Choice"Tyranny of the Or”

Exchange Server: On-Premise or Hosted

“Attached Services”from Microsoft

Multiple UserExperience “Heads”

Exchange Example

Software + Services Examples

Microsoft Bets Big on Services

The Move is On

Software+

ServicesSoftware Services

Evaluating S+S

Composition

Monetisation

Delivery

User Experience

Federation

User Experience

Web PC Client Mobile Office TV-Connected

Delivery

CustomerManaged

ProviderManaged

TraditionalSoftware

Hosted Outsourced IT

Software as a Service

Co-Managed

Software, services & support offerings specifically designed for one-to-many delivery over the Internet

Packaged software customized, deployed & managed by provider

Today’s packaged software deployed on-premise

Application ManagementWho manages the app software experience, SLA?

Soft

ware

Deliv

ery

How

is

the e

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nd

exp

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ce d

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Delivery

TraditionalSoftware

Hosted Outsourced IT

Software as a Service

Soft

ware

Deliv

ery

How

is

the e

nd

-to-e

nd

exp

eri

en

ce d

eliv

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Today’s In-House IT

Outsourced IT, On-site Contractors, Asset Transfer, etc

Co-Location Services Hosted Infra & Applications

Amazon EC2, S3, Win+IIS+.NET

Microsoft Exchange

Hosted Services

Salesforce.comOffice Live

“Building Block

Services”

“Attached Services”

“Finished Services”

Application ManagementWho manages the app software experience, SLA?

CustomerManaged

ProviderManaged

Co-Managed

Delivery

TraditionalSoftware

Hosted Outsourced IT

Software as a Service

CustomerManaged

Provider Managed

Co-Managed

Application ManagementWho manages the app software experience, SLA?

Soft

ware

Deliv

ery

How

is

the e

nd

-to-e

nd

exp

eri

en

ce d

eliv

ere

d?

“Building Block Services”

“Attached Services”

“Finished Services”

Provider delivers development & hosting

infrastructure. Customer delivers the

application.

Provider delivers service that augments existing on-premise IT

function

Provider delivers software application service end-to-end

Delivery ImplicationsBusiness

New economic modelNew sales model

ArchitectureNew vs. existing codebaseMulti-tenancyCloud scaleSelf-service, provisioning and managementCustomizationSecurity assumptions

Operations24 x 7 mindsetContinuous release cycles

Federation

Cross organization, bottoms-up worldFederated identity, data, logic, servicesSyndicationService level agreements

Composition

New level of developmentComposition of services, data, UXLightweight to heavyweightNew tooling required

Composition via Microsoft Office

“We thought people would use our portal, but now we realize they want to use SAP in their own interface. People will prefer to retain their current user experience. People love Office. You can connect SAP [to Office] so they don't need to leave their comfort zone.“

-- Shai Agassi, President, SAP Product & Technology Group

“It is important to simplify and improve the user experience associated with enterprise applications interaction. Specifically, today most enterprise applications have Web-based user interfaces, but knowledge workers often find that these user interaction models are less intuitive to use and interfere with their daily work in Microsoft Office.“

Monetisation

2006 2007 2008 2009 2010 2011 -

500

1,000

1,500

2,000

2,500

3,000

UK business SaaS market, $m

Systems Infrastructure Applications

Information Management

“Attached”Services

“Finished”Services

“Building Block”

Services

Software + Services Extending the Microsoft Platform

Consumer & Small Business

Live IDVirtual Earth

Live Messenger

CRM LiveHosted Exchange

Exchange ServicesWindows Update

Forefront

Software + Services Impact

The Future of Business Computing• Revitalization of IT• Focus on business success• Employee productivity and impact• Customer experience

The Future of Personal Computing• From personal computer to personal computing• Across multiple PCs and devices• Blurring of digital workstyle and lifestyle• Individual in control of their digital world

Resources

Q&A