Ballmer Announces Microsoft Desktop Business Value Proposition, States 'We'll
Prove Windows XP and Office XP Value!'
ORLANDO, Fla., Oct. 9 /PRNewswire-FirstCall/ --
Microsoft Corp. (Nasdaq: MSFT) today announced the results of recent
studies(1) that show how, cumulatively, enterprise customers may realize
savings of billions of dollars by replacing their old Windows(R) 95, Windows
98 and Windows NT(R) 4.0 Workstation desktops with the Microsoft(R) Windows XP
Professional operating system. This news coincides with the one-year
anniversary of Microsoft Windows XP and comes on the heels of Microsoft's
recent announcement of the availability of Windows XP Professional Service
Pack 1 (SP1), which delivers additional enhancements to the desktop operating
system for enterprise customers.
(Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20000822/MSFTLOGO )
"As I talk with IT managers, I'm hearing that they must justify their
technology investments more than ever before," said Steve Ballmer, CEO of
Microsoft. "With budgets tight, enterprises need to be confident of real
returns before they invest in IT. Companies still on the Windows 95 or Windows
98 platforms are missing out on the incredible benefits that come with the
combination of Windows XP and Office XP. Together they deliver more business
value to our customers than any other solution available. And we'll prove it!"
With the improved security and reliability technologies, better deployment
and management tools, and a host of mobility and productivity-enhancing
features in Windows XP Professional, the cost savings for enterprises
deploying the system along with Microsoft Office XP are significant. Data from
recent Microsoft business-value studies reviewed by BearingPoint Inc.,
formerly KPMG Consulting, demonstrate the value to the enterprise of Windows
XP Professional over Windows 95 or Windows 98. For example, Windows XP
Professional provided customers with an average return on investment of more
than 200 percent and an annual savings of from $187 per desktop to $387 for
mobile users as calculated over a three-year period.
In an October 2001 FirstTake, Gartner Dataquest estimated that by the end
of 2002, 73 percent of commercial PCs will still be running Windows 95,
Windows 98 or Windows NT Workstation.(2) According to Microsoft internal
estimates, there are more than 250 million PCs in use by businesses worldwide.
Customers Deploying, Seeing Significant Benefits
Enterprises often take from 12 to 18 months to evaluate and deploy a new
operating system, and with the availability of SP1, many enterprise customers
are now evaluating Microsoft Windows XP Professional and Office XP. Those
enterprises that have begun their deployments are already seeing significant
IT and business value.
To date, Siemens AG has migrated more than 180,000 employees, or about 40
percent of its work force, to Windows XP Professional.
"Our goals are to make better products and exceed our customers'
expectations so that they can do business with us more easily and quickly,"
said John Minnick, principal of corporate IT for Siemens. "In evaluating
Windows XP Professional, we can already see that it's good for productivity,
it's good for business, and it's allowing us to realize our Any4 vision of
access to any resource, by anyone, anywhere, any time."
Pella Corp. is in the process of upgrading its 2,200 desktop and laptop
PCs from a mixed environment of Windows 95, Windows 98 and Windows NT to
Windows XP Professional and Office XP. With 75 percent of its deployment
complete, Pella anticipates an overall savings of $250,000 annually in IT
support and administration.
"Simply stated, using Microsoft Windows XP helps Pella deliver our high-
quality windows and doors to our customers faster and more efficiently," said
Jim Thomas, senior business systems manager for Pella. "Compared with our old
mix of Windows 95, Windows 98 and Windows NT desktop operating systems,
Windows XP is more stable and reliable and easier to maintain, which allows
our work force to focus its attention on making great products and providing
superior sales, installation and service."
Moving Beyond Cost Focus to Value Focus
IT cost savings are only one measurement of the return on enterprises'
software investments. For enterprises to realize the true value of their IT
investments, they also must consider the business benefits of their software.
Microsoft Windows XP Professional and Office XP offer enterprises significant
business value by increasing their productivity with a dependable, connected
client platform that offers the best economics with its low deployment and
operational costs.
The Microsoft Desktop Business Value Proposition
The business value of software can be more challenging to measure than
strict IT costs. To prove the value enterprise customers will realize from
deploying Microsoft Windows XP Professional and Office XP, Microsoft is
launching the Microsoft Desktop Business Value Proposition, which is being
discussed in detail at Gartner Symposium/ITxpo 2002. Based on a new evaluation
model pioneered by Gartner Inc. called the Total Value of Opportunity
(TVO)(3), the Microsoft Desktop Business Value Proposition will help IT
managers and business decision-makers make the right technology choices for
their organizations' bottom lines.
"If you're running the old stuff, it's time to take stock," Ballmer said.
"The value's there, the deployment tools are there, and the savings are there
for the taking. To prove this to enterprise customers, we're putting up more
than $1 million this fall."
"The Total Value of Opportunity, or TVO, model evaluates how a technology
investment will contribute to business success," said Michael Smith, senior
research director for Gartner. "It's as dependent on the business performance
levels and management accountabilities as it is on the technology. TVO
provides a more complete view of the effects of IT-enabled business
initiatives and bridges the language barrier between business executives and
IT professionals to more clearly demonstrate how a technology initiative
benefits their overall business objectives."
The Microsoft Desktop Business Value Proposition will be open to qualified
applicants that have more than 5,000 PCs running previous versions of
Microsoft Windows (Windows 95, Windows 98 or Windows NT 4.0 Workstation) or
competing products as their primary client environment, and that want to base
their decision for adopting the Windows XP Professional and Office XP client
platform on business metrics. The million-dollar set-aside by Microsoft will
fund studies using the TVO methodology. The studies will be reviewed by
Gartner to ensure accuracy and objectivity.
Each Microsoft Desktop Business Value engagement will last from one week
to three weeks, depending on the complexity of the customer's IT environment,
and will include a value study based on Gartner's new TVO methodology as well
as a two-day consulting review of deployment recommendations focused on areas
identified in the study. Enrollment will start immediately, and Microsoft
Desktop Business Value Proposition engagements are expected to be scheduled by
Nov. 1. Customers can obtain enrollment details by sending a request to
bizvalue@microsoft.com.
Microsoft Office XP Further Enhances Value
The value of Windows XP Professional is further enhanced when deployed
with Office XP. With a host of new productivity features and enhanced
collaboration capabilities, Microsoft Office XP helps people work smarter and
more efficiently. Further adding to the value of the Microsoft Office suite,
Microsoft earlier today announced "XDocs," code name for an XML-enabled forms
application that will help organizations streamline their business processes.
By adding "XDocs" to the Windows XP Professional and Office XP desktop,
enterprise customers can realize even more business value for their technology
investments.
About Gartner Symposium/ITxpo
Gartner Symposium/ITxpo is the IT industry's largest and most strategic
conference, providing business leaders with a look at the future of IT. For
more than 10,000 IT professionals from the world's leading enterprises,
Gartner's annual Symposium/ITxpo events are key components of its annual
planning efforts. Attendees are responsible for more than $35 billion in IT
spending for their respective companies, and rely on Gartner Symposium/ITxpo
to gain insight into how their organizations can use technology to address
business challenges and improve operational efficiency. More information is
available at http://www.gartner.com/symposium/ .
About Microsoft
Founded in 1975, Microsoft is the worldwide leader in software, services
and Internet technologies for personal and business computing. The company
offers a wide range of products and services designed to empower people
through great software -- any time, any place and on any device.
(1) Business value studies were conducted with more than 20 enterprise
organizations during 2001 and 2002. Studies are published in three
business-value white papers: "Higher Yields: The Financial Benefits of
Windows XP Professional," "Security and Reliability: Pillars of Value for
Customers of Windows XP Professional and Office XP" and "Windows XP
Professional and Office XP: Realizing Financial Value Through Lower Deployment
and Operational Costs." Studies were performed by BearingPoint, Inc. (formerly
KPMG Consulting), NerveWire Inc., Immedient Corp. and Microsoft Consulting
Services. All three white papers were reviewed by BearingPoint, Inc. for
accuracy.
(2) Source: Gartner Note Number FT-14-7378: "Windows XP Won't Rescue PC
Sales," Oct. 25, 2001, by Michael Silver and Charles Smulders.
(3) Output from the Gartner Total Value of Opportunity models may differ
from Gartner's published research position.
NOTE: Microsoft, Windows and Windows NT are either registered trademarks
or trademarks of Microsoft Corp. in the United States and/or other countries.
The names of actual companies and products mentioned herein may be the
trademarks of their respective owners.
SOURCE Microsoft Corp.
 back to top
Related links:
http://www.microsoft.com
Photo Notes:
NewsCom:
http://www.newscom.com/cgi-bin/prnh/20000822/MSFTLOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, 1-888-776-6555 or +1-212-782-2840
CONTACT:
Darin Linnman, +1-503-443-7000, or
darinl@wagged.com, or Rapid Response Team, +1-503-443-7070, or
rrt@wagged.com, both of Waggener Edstrom, for Microsoft Corp.
NOTE TO EDITORS: If you are interested in viewing additional
information on Microsoft, please visit the Microsoft Web page at
http://www.microsoft.com/presspass/ on Microsoft's corporate
information pages. Web links, telephone numbers and titles were
correct at time of publication, but may since have changed. For
additional assistance, journalists and analysts may contact
Microsoft's Rapid Response Team or other appropriate contacts
listed at http://www.microsoft.com/presspass/contactpr.asp
|
