Ready for Restart Prague, 28th January 2014

Jan MühlfeitChairman EuropeMicrosoft Corporation

Global Context

People & TechnologyMoore law

Linear vs. Exponential

Social networks

Young Gen & Tech

EconomyWhat vs. How

Made in <> Design in (Invented in)

Education/Skills/Lifelong learning

Re-Balance of power

GlobalizationGlobal connectivity & competition

G20

3D challenge for West

3 Ts strategy – Richard Florida

Drivers of National Competitiveness

Natural Resources

Established Specialization

National Philosophy

Business Sophistication

Innovation

Higher Education and Training

Labor Market Efficiency

Technological Readiness

Goods Market Efficiency

Financial Market Sophistication

Market Size

Health & Primary Education

Institutions

Macroeconomic Stability

Infrastructure

National Competitive

Agenda

CR Competitiveness WEF GCR 2013/14

Czech Republic Education – OECD PISA

Lessons from leaders

Leaders reach new markets and collaboratewith customers and talents.

Leaders capitalize on cloud technology’s scalability and flexibility.

Leaders use technology creatively to operate more efficiently.

Leaders innovate, experiment and embrace tech-enabled business models.

Leaders adopt technology in smarter ways so that they get more bang for their buck.

Two thirds say technology helped increase their revenues, profits and create more jobs

5x more leaders than others are first in their markets to invest in new technologies

2x more leaders than others say IT has greatly improved their level of innovation

Two thirds say they have more satisfied customers thanks to technology

Leaders are 6x more likely to have international customers

Ahead of the curve 2013BCG for Microsoft

Ahead of the curve BCG for Microsoft

Tech leaders are early adopters of each new wave of technology

Czech SMBs who are smart about using technologies....• massively improved customer satisfaction

• made their employees cooperate better and work more efficiently

• increased their flexibility and prosperity even through tough times

• lowered cost and increased profit

• Are able to compete with large corporations

Náskok díky technologiím 2014IPSOS Mori pro Microsoft

A new era of opportunity for Cities to innovate & prosperA new era of opportunity for Cities to innovate & prosper

Technology Megatrends

CloudSocial Big dataMobility

By 2016, smartphones and

tablets will put power in the

pockets of

a billion global citizens.

Millennials will make up

75% of the American

workforce by 2025

Digital content will grow to

8ZB by 2015.

up more than 300%

from 2011

70% of organizations are either using or

investigating cloud computing

solutions

The Economics Of The Cloud

MIPS

• Ability to negotiate considerable savings for hardware, power and bandwidth due to scale.

• Pooling demand from diverse customer base can dramatically increase (~3x) utilization.

• Data-center automation and application of multi-tenancy significantly reduce labor costs.

Cloud Computing is Part of the Solution

?

• $2.3B+ in cloud infrastructure

• 200+ services, delivered 24x7

• Geo-distributed data centers

• 30,000+ engineers involved in cloud-based activities

• 2,000+ people in cloud infrastructure engineering and operations

• Federated operations centers 24x7

• Highly secure, compliant infrastructure

• FISMA certified, SAS 70/SSAE 16 and ISO 27001 compliant

• Carbon footprint reduction

• 99.9% uptime, financially backed SLAs

Microsoft: Unmatched in the Cloud

• 15+ years in consumer and business services

• 9.9 billion messages a day via Windows Live Messenger

• 1 petabyte+ per month of updates via Windows Update

• Windows Azure: used by customers in 41 countries

• Office Web Apps: 50M users

The Cloud Opportunity is Huge

$65B-$85B

25-35

40-50

$10B

20152008

~5%~1%

3 ‘as a service’ models

• Infrastructure (IaaS)

• Platform (PaaS)

• Software (SaaS)

Worldwide Cloud MarketWorldwide Cloud Market

% of WW IT spend

Private

Public

2

8

Source: McKinsey & Company

The Cloud Opportunity Workloads

Source: McKinsey & Company

Application % of CIOs surveyed (N=50)

Migration Rate Of Workloads

42 44 14

42 42 17

24 49 27

21 37 42

18 36 46

ERP

Other2

CRM

Ecomm/web

Productivity

On premise Private cloud Public

cloud