Strategic Partnership Group Overview

Erick WatsonStrategic Partnership Group

Microsoft Asia-Pacific R&D

SPG Value to Partners

Why Solutions?

Why China’s Cities?

Why Microsoft?

WHY SOLUTIONS?

RMB 1.9 Trillion*

4.5% CAGR*Global IT services outsourcing market size in 2011 as estimated by Gartner Group on Outsourcing 2010-2011

RMB 126 Million*

17.2% CAGR*China domestic IT services market size in 2014 as estimated by Gartner Group IT Services Metrics WW Forecast Database

Solution Benefits to Partners

Greater Capabilities

Enhanced Margins

Retain Strong Talent

WHY CHINA’S CITIES?

RMB 34.6 Trillion*

9.7% CAGR

*China’s 2010 GDP according to http://www.wolframalpha.com

Most People in Asia; China

19501955

19601965

19701975

19801985

19901995

20002005

20102015

20202025

20302035

20402045

2050

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

ChinaIndiaUnited States of AmericaIndonesiaBrazil

*Top 5 most populous nations, 1950-2050; United Nations Population Division http://esa.un.org/unpp

50% of WW

population live in Cities*

70% by 2050

*United Nations Population Division http://esa.un.org/unpp

“The 100 years from 1950 to 2050 will be remembered for the greatest social, cultural, economic and environmental transformation in history – the urbanization of humanity. With half of us now occupying urban space, the future of humanity is tied to the city.”

- Anna Tibajuka, Undersecretary General,

The United Nations

China’s 12th 5-Year Plan Highlights

China Urbanization: 51.5%

China’s CAGR Target: 8%

Spend RMB 7.6B on R&D

WHY MICROSOFT?

RMB ~60 Billion*

on software R&D*Microsoft will spend USD $9.2B on Product R&D in FY2011

RMB 1.3 Billion*

spent in China25% CAGR

*Microsoft software product development outsourcing investment in China for FY2011

Largest software

development outsourcer

to China*

*Microsoft software product development outsourcing investment in China for FY2011

Microsoft Partner Benefits

Commitment to China

Leading Software Innovator

98.2% MS income thru Partners