University of Washington 2008

© 2008 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.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.

James James UtzschneiderUtzschneiderGeneral ManagerGeneral ManagerMicrosoft CorporationMicrosoft Corporation

Fostering Fostering Local InnovationLocal Innovation

Enabling Jobs & Enabling Jobs & OpportunityOpportunity

Transforming Transforming EducationEducation

Global StoryGlobal StoryPooled effort around Pooled effort around

existing programs:existing programs:CitizenshipCitizenshipEducationEducation

DPEDPEPublic SectorPublic Sector

UPGUPG

Product InnovationProduct InnovationNew product and New product and

solutions incubation:solutions incubation:Low Cost ComputingLow Cost Computing

Shared AccessShared AccessMobileMobile

EducationEducation

““Creative CapitalismCreative Capitalism””Nontraditional business Nontraditional business opportunity for Microsoftopportunity for Microsoft

supporting social and economic supporting social and economic agenda of governmentsagenda of governments

University of Washington 2008

© 2008 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.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.

TOPHighDisposableIncome

MOPSomeDisposable Income

BOPLittle/No Disposable Income

SocioSocio--economic Pyramideconomic Pyramid20052005

.84B

2.7B

3.4B

+25%

+22%

-3%

SocioSocio--economic economic ““BarnBarn””20112011

.76B

2.2B

3.5B

TargetTargetTransformational schoolchildren in Transformational schoolchildren in emerging marketsemerging markets

New class of subNew class of sub--$300 machines used in $300 machines used in "1"1--1" government education programs1" government education programs

Licensing, Partnerships, Education Licensing, Partnerships, Education EvangelismEvangelism

ASUS ASUS eeePCeeePCDemoing XPDemoing XP

OLPC XOOLPC XO

Intel Intel ClassMateClassMate

ViaVia

ChallengesChallenges

Children in schools that cannot afford Children in schools that cannot afford PCs for every studentPCs for every student

MSR SDK that enables collaborative MSR SDK that enables collaborative education applications using multiple education applications using multiple cursors and mice on a single PCcursors and mice on a single PC

Education ISV and developer Education ISV and developer evangelism, pricing and licensingevangelism, pricing and licensing

TargetTarget

ViaVia

ChallengesChallenges

Small businesses and governments in Small businesses and governments in emerging marketsemerging markets

Global ecosystem for resold, Global ecosystem for resold, repurposed, and donated PCs (74 repurposed, and donated PCs (74 million in 2007)million in 2007)

Category branding, licensing, Category branding, licensing, government evangelism, new channelgovernment evangelism, new channel

TargetTarget

ViaVia

ChallengesChallenges

EnvironmentEnvironment

Local JobsLocal Jobs

Rural poor who don't use PCsRural poor who don't use PCs

Government and donor funded PC Government and donor funded PC kiosks used for agriculture, skills kiosks used for agriculture, skills training, microfinance ($7.4 Billion training, microfinance ($7.4 Billion spend)spend)

Sustainability, NGO and government Sustainability, NGO and government evangelism, scale, training kiosk evangelism, scale, training kiosk ownersowners

TargetTarget

ViaVia

ChallengesChallenges

University of Washington 2008

© 2008 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.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.

Urban families avoiding Urban families avoiding iCafesiCafes who who cannot afford a PCcannot afford a PC

TerminalTerminal--based PC service sold by based PC service sold by telcostelcos and other partnersand other partners

TerminalTerminal--based home computing!; based home computing!; Channel development; pricing and Channel development; pricing and licensinglicensing

TargetTarget

ViaVia

ChallengesChallenges

People who use cell phones but not People who use cell phones but not PCs (estimated to be billion)PCs (estimated to be billion)

Services platform (including Services platform (including advertising and Live) anchored around advertising and Live) anchored around mobile payments system involving mobile payments system involving prepre--paid cards and POS kiosks in paid cards and POS kiosks in Africa and IndiaAfrica and India

Channel development, scale, Channel development, scale, value propositionvalue proposition

TargetTarget

ViaVia

ChallengesChallenges

People trying to get ahead by passing People trying to get ahead by passing certification examscertification exams

Locally relevant training content Locally relevant training content targeting skills acquisition delivered in targeting skills acquisition delivered in a "Complete" education system a "Complete" education system involving rich client + web services involving rich client + web services design + new device, assuming design + new device, assuming occasional or no Internet connectionoccasional or no Internet connection

Content ecosystem, new channel, Content ecosystem, new channel, value proposition, new devicevalue proposition, new device

TargetTarget

ViaVia

ChallengesChallenges

Holes exist in Microsoft's Holes exist in Microsoft's existing business modelsexisting business modelsSegmetnationSegmetnation matters, even in matters, even in this spacethis spaceMOP willing to "go high" when MOP willing to "go high" when they see good, better, bestthey see good, better, bestWilling to pay (a little) for Willing to pay (a little) for genuine softwaregenuine softwareFew big retail channelsFew big retail channelsLimited credit, small purchasesLimited credit, small purchasesNo digital marketing yet: word No digital marketing yet: word of mouth, newspaper, billboard of mouth, newspaper, billboard and inand in--store advertising store advertising Limited awareness of MicrosoftLimited awareness of Microsoft

More digital storytelling More digital storytelling targeting elitestargeting elitesMore shared campaigns with More shared campaigns with partnerspartnersFormal MOP/BOP consumer Formal MOP/BOP consumer model with trackermodel with trackerOngoing execution of pilots Ongoing execution of pilots and incubationsand incubationsDevelopment of an online Development of an online communitycommunity

Visit the UPG siteVisit the UPG siteLeverage our researchLeverage our researchPlay with our technologyPlay with our technologyJoin our teamJoin our teamEmail: Email: jamesu@microsoft.comjamesu@microsoft.com

University of Washington 2008

© 2008 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.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.

© 2008 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.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.