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Microsoft's Anti Linux Presentation, "Bribe them!" (Comes exhibit PX09346, as text)

  • Subject: Microsoft's Anti Linux Presentation, "Bribe them!" (Comes exhibit PX09346, as text)
  • From: Roy Schestowitz <newsgroups@xxxxxxxxxxxxxxx>
  • Date: Tue, 25 Aug 2009 10:37:21 +0100
  • Newsgroups: comp.os.linux.advocacy
  • User-agent: KNode/0.10.9
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MGB 2003
7/7/2005 10:52 AM

The Best Damn Linux
Presentation Ever!!

Do you want the truth ???
        Can you handle the truth ???

Steve Winfield
National Technology Strategist
Partner Technology Team (a.k.a. Delta Force)
US Partner Group, Microsoft

Plaintiff's Exhibit 9346
Comes V. Microsoft
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MS-CC-RN 000001089898
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MGB 2003
7/7/2005 10:52 AM

Why Customers Choose Linux
They were already a Unix shop
It was recommended to them
        By another vendor
        By someone on team fresh out of college
Can't afford to upgrade their hardware
It's Cheapter (not necessarily)
They run a very narrow list of applications
It's more secure
Apps are easier to pirate
It's not Microsoft

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MGB 2003
7/7/2005 10:52 AM

"I love Linux"

Uhhh, what exactly do you mean by "Linux"?

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MGB 2003
7/7/2005 10:52 AM

Major Players
Red Hat
Suse
Lindows

Minor Players
2-Disk Xwindow Linux    Alphalinux      ALT Linux Arch Linux    Ark Linux       Armed
Linux   ASPLinux        Astaro Security Linux   Basic Linux     BearOps Linux   Beehive
Linux   Blue Linux      BluePoint Linux Bootable Business Card  BRD
ByzantineOS     CAEN Linux      CClinux ChainSaw Linux  ClarkConnect    CLE(Chinese
Linux Extensions)       cLieNux CollegeLinux    Compledge Sentinel      Conectiva
Linux   Coollinux       Core Linux      Corel Linux     Coyote Linux    CRUX    EmbLin  Damn
Small Linux     Debian GNU/Linux        deepGNU/Linux   DemoLinux       Dettu[Xx] Linux
Devil-Linux     DLX     Linux   DragonLinux     easyLinux       Elfstone Linux  ELinOS
ELKS    Elx Linux       EnGarde Secure Linux

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MGB 2003
7/7/2005 10:52 AM

Minor Players ... 198 total
ESWare  Etlinux Eurielec Linux  Finnix  FireCast Software Suite for Kiosks
Firegate Server ??4L    floppyfw        FrazierWall Linux       Freeso  Gamelinux
GCL-Grey Cat Linux      Gelecek Linux   Gentoo Linux Gibraltar  giotto  GNU
Brutalware Linux        GNU Dualix      GNU/Linux       UTUTO   hal91 Floppy Linux
Haydar Linux    HispaFuentes    Honung Linux    HRID    HVLinux Icepack Linux
Immunix OS      Independence    IPCop Firewall  Ivrix   JAILBAIT        JB Linux
Jurix Linux     K12LTSP Kaladix Linux   Keeper Linux    KNOPPIX Kondara
MNU/Linux       KRUD (Kevin's Red Hat Ãber distribution) KSI Linux      L13Plus
Lanthan Linux   Laser5  Leka Rescue Floppy      LindowsOS LinEx Linpus Linux
Linux Antarctica        Linux by LibraNet       Linux Pro       LinuxInstall.org        LinuxOne
LinuxROM (aka PizzaBox distro)  LinuxWare       LOAF (Linux on a floppy)
LoopLinux       Lunatix GNU/Linux       LuteLinux       Lycoris Madeinlinux     Mandrake
Linux   Maragda Mastadon Linux  MaxOS   MCC     Miracle Linux   MNIS/RTLinux and
MNIS/SXLinux    Monkey Linux    Morphix muLinux Netule Modules  NFSRoot-Linux
NoMad Linux     Nuclinux        O-Net   Peanut Linux    PeeWee Linux    Phat Linux      PKLinux
Plamo Linux     PLD Linux       Rabid Squirrel Linux    Red Flag Linux  Red Hat Linux
Relax Linux RockLinux   Root Linux      RouterLinux     RT Linux        SCO/Caldera Open
Linux   ScrudgeWare     Security-Enhanced Linux Shark Linux     Slackware Linux
Small Linux     SME Server      smoothwell      Server Optimized Linux  SoL-diag
Sorcerer Linux  SOT Linux       Source Mage GNU/Linux   SPB-Linux       Spinix
spylinux        Stampede Linux  Storm Linux     SuSE Linux      TelemetryBox    The LNX
System  TINY Linux      tomsrtbt        Tomukas TopologiLinux   Trinux  Trustix Secure
Linux   Trustix/Merdeka Linux   ttylinux        TurboLinux      University Linux
Ute-Linux       Vector Linux    Vine Linux      Virtual-Linux   White Glove Linux       Whole
Glove Linux     WinLinux2001    Xandros XboxLinux Xdenu Xteam Linux     YES Server
Yggrasil Linux  Yoper   YuO-GNU-Linux   ZIIF Linux      ZipHam  ZipSpeak

Which Linux?  198 different versions according to www.linux.org, of
course, only 66 of these are still maintained!! This is for Intel
platform only!!!

But what if I only plan to use Red Hat? Only 25 different varieties
based on Red Hat!!!

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MGB 2003
7/7/2005 10:52 AM

What about mail? ... 70 choices

aliasman.pl     Bluetail Mail Robustifier       Checklowcalpwd  CommuniGate Pro
Courier Courier-IMAP    cucipop Cyrus IMAP server       cyrus-imapd-sql
cyrus-sasl-mysql patch  DixieMail       dkimap  eSquire Exim    Exmlm   ezmlm-idx
getpg / UW-IMAP GNU Anubis      GNU pop3d with NIS      InfinyMail      Inflex
IntraStore Server 98    JAMS    JergoBlatz!     Mail-Gear       maildir-bulletin
Mailman MailOne MasqMail        Minimalist      Minordomo       MXM     Netscape Messaging
Server  nullmailer      ODBCmap OMTA    pam_cucipop     perdition       popa3d
poplistener     Postfix pwcheck_mysql   pwcheck_pgsql   qmail-ldap
qmail_regex     qmfilt  Qpopper qpopper-mysql   RMTP    SAUCE   Sendmail        Sendmail
PostgreSQL map patch    sendmail-tls    smunge  Solid POP3      Squirrel Mail
teapop  tmlm    Transparent compression for Qmail       UW Imap Server
UW-IMAP/Linuxconf VDM   vmail-sql       virtual domains support for GNU pop3d
vmailmgr        VoidPOP3        vpopmail Webinterface for UNIX  Listproc        XMail ZMailer

Mail server?  Choose between 70!!!

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MGB 2003
7/7/2005 10:52 AM

And Office? ... 48 choices

Abacuse AbiWord BlackBook       Bynari  TradeMail       Chinese Lyx     Patch Conflux
Lite    CyberScheduler  envi.cn R. Heuberger    Form Maker      GCTB    GMCAL
Gstalker        IndeoCRM        jpilot  KFlowChart      Lexi Word Processor     LinuDent
logger  LyX     MagicPoint      MagicPoint Gallery      ManStyle        Maxwell Muller
English-Russian Dictionary Kit  OmniChex        OpenOffice.org  Passepartout
PSSlides        QtGantt QuickList       Share360 by Cybozu      Siag Office     Slidemaker
SohoVoice       SoL-desktop     sqlDESKTOP      StarOffice      Storagement     Ted     Uniplex
UBS     VetTux  XC Connect      XC Vault        XESS    xmemo   XNotesPlus      XRolyPoly

Want Office?  Only 48 different options.

[geez these guys dont know what they are doing]

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MGB 2003
7/7/2005 10:52 AM

So which Linux solution?

665,280 different possible combinations just lookin at three of the most
basic parts of IT!!!

And we have not even looked at the following:
        131 different Firewalls
        55 different DNS servers
        15 different Collaboration offerings

14,092,426,656,000 ... That is 14 trillion options!!!

Not my data ... searches on www.linux.org on 9/7/03

E-mail client?  196 versions.
Firewalls? 131 versions.
DNS? 55 versions.
Collaboration?  15 versions.

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MGB 2003
7/7/2005 10:52 AM

"Linux is free."

Yep, just like a puppy.

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MGB 2003
7/7/2005 10:52 AM

Red Hat
Red Hat Linux Enterprise AS
        $1499 Standard Edition
        $2499 Premium Edition

Red Hat Linux ES
        $349 Basic
        $799 Standard

Red Hat Linux Enterprise WS
        $179 Basic Edition
        $299 Standard Edition

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MGB 2003
7/7/2005 10:52 AM

SuSE Linux Enterprise Server

SuSE Enterprise Server = $749
        1 year of on-line/e-mail support = included
        1 year of phone support = $2250
        About 5 years of patch support

Desktop = $79.95
        90 days install support
        About 2 years of patch support

Office = $129
        Allows use of Office 97/2000

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MGB 2003
7/7/2005 10:52 AM

SCO

SCO pricing
        $199 per desktop
        $699 per server ($1399 after Oct 15th)
        ($1B lawsuit against IBM)

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MGB 2003
7/7/2005 10:52 AM

How IBM Makes Money

IBM makes mony 'indirectly'
        Hardware, services, "middleware"

The total cost is much higher

There are no incentives for IBM to:
        Guide customers to cost-effective hardware
        Make Linux simpler to deploy, use & manage
        Include middleware with Linux distributions

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MGB 2003
7/7/2005 10:52 AM

IBM Supports WebSphere On Linux

Microsoft (r)

Windows Server 2003 Enterprise (6)      $15,996
Windows Server 2003 Standard (2)        $1,998
SQL Server 2000 Standard        $19,996
Host Integration Server $9,996
Visual Studio 2003 EA   $21,950
Total Software $69,976

IBM (r)

Linux   $0
WebSphere App. Server v5.0      $48,000
DB2 v8.1        $18,000
CICS Transaction Gateway        $29,252
WebSphere App. Developer        $34,990
Total Software  $130,242

Basic Softeware Configurations
Six 2-CPU servers; 2 application servers, 2 database servers, 2 host
gateway servers

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MGB 2003
7/7/2005 10:52 AM

Gartner Comparison
Desktop

HW      SW      HW&SW   End User        TotalTCO
95/Office       481     871     1423    3242    6050
XP/Office       481     871     1423    2706    5285
XP/SO   481     797     1348    2896    5402
Linux/SO        445     785     1311    2986    5477

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MGB 2003
7/7/2005 10:52 AM

Perception - It's Free

Red Hat made $91 million last year
        ($291 million in the bank)

Gartner estimates that IBM can trace to Linux about $1.2 billion in
revenue in 2002 (hardware, software and services)

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MGB 2003
7/7/2005 10:52 AM

"Well, it may not be free,
but it's cheaper ..."

Not really.

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MGB 2003
7/7/2005 10:52 AM

What Factors Contribute to TCO?
Initial software cost is 5% of long-term TCO
Independent analysis firms confirm that staffing and downtime are the
biggest cost factors

Staff Costs
Downtime
Training
Software
Hardware

IDC 2002

Based upon independent research from Gartner, Meta and now IDC, most
analysists agree that upfront costs are only a tiny portion of the long
term cost of ownership.  Staff costs plus the costs of downtime are the
two biggest sources of expense involved in owning and operating an IT
infrastructure.

IDC's TCO study confirmed these cost factors, discovering that based on
over 100 customer intervies, staff costs associated with installing,
upgrading and troubleshooting server operating systems tended to be the
largest component.  Compare that to software acquisition costs of
Windows, which were only 5% of most server operating solutions. Unfront
"free" does not mean low-cost in the long term.

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MGB 2003
7/7/2005 10:52 AM

Cost: The Facts

IDC Analyze the Future
"The cost advantages of
Windows are significant:
11 to 22% over a 5 year period" *

* Source: IDC Whitepaper, October 2002, "Windows 2000 versus Linux in
Enterprise Computing"

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MGB 2003
7/7/2005 10:52 AM

Result of this model is lower TCO

5 Year TCO Advantage
File Serving
Print Serving
Network Services
Security Services
Simple Web
= Windows Lower TCO
= Linux Lower TCO

Simple web does not include web-based applications or development

Low total costs for simple web overall amplify hardware & software cost
differences

Microsoft expects to take the lead for Simple Web with Windows Server 2003

Microsoft costs less when considering all factors of the software
development lifecycle

The results of the efforts Microsoft puts into solving customer pain,
the aproach to development, integration and test and the focus on broad
ecosystems is lower TCO and higer business value for you.  When asked
why customers are interested in Linux, the most popular response is "low
cost".  In fact, many customes report that their intuition says that
Linux will be 2-3 times cheaper than Windows.  Why?  It seems intuitive
that an operating system that is free would also cost less over the long
term to maintain and operate.

Microsoft has long felt, however, that there are many factors (such as
'people costs') that would be lower for Windows, and that over time
Windows would actually cost less than LInux.  In order to test this
belief, and show that our investments in engineering would deliver a
lower long-term cost profile, Microsoft commissioned an in-depth studey
with International Data Corporation sto study the 5 year total cost of
ownership of Windows versus Linux in 5 common workloads.

What the study found was that initial software acquisition costs are a
very small percentage of the 5 year TCO, and that the #1 factor is
'People costs'.  And, the study found that Windows has a lower TCO than
Linux in all but the Web serving workload.  In fact, the savings in some
of the workloads - sepecially security servers and print serving - were
surprising high.  {Note: The web workload does not include
application-centric web deployments; people costs were still lower for
Windows in the web workload; the low cost profile overall for the web
workload amplified the software acquisition costs differences and the
fact that most customers run Linux web servers on less expensive
hardware than Windows web servers (a situaiont we expect to change with
IIS 6.0, which will operate more efficiently than IIS 5.0).

It is also important to not that we're not stating that TCO is the only
factor that companies should use when making operating system platform
decisions.  Instead, we are asserting that this data shows the
investments we make in rigorous engineering and investing in ecosystem
development have yielded returns for customers.  In other words, lower
TCO doesn't happen by accident.  And we encourage customers to question
their assumptions about whether low up-front costs in additional work
loads (that we didn't study) will translate automatically to lower costs
over time.  We strongly expect that Windows TCO advantage grows along
with the complexity of the workload.

Look at the http://Linux site, where the IDC study is posted, to find
additional 3rd party TCO data that corroborates the data found in the
IDC study.

Notes:

- - In the case of the web workload, it is important to not that this
category covered only basic web serving (static content and basic
dynamic content) and that Windows had a lower 'people cost' but hardware
costs were higher on Windows than on Linux due to the way that most
deployed in clusters and also tended to run more workloads per server,
which generally translated to larger, more expensive machines.  (Note
that because of the advances of IIS in Version 6.0, that shipws in
Windows.NET Server 2003, Microsoft expects that we will come out ahead
on the simple web workload in the future.)

- - Microsoft also had leadership positions on a 3 year basis.  In fact,
the gap on simple web
serving was more favorable to Windows.

- - The remainder of the details are in the study itself, which can be
found on the http://linux portal


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MGB 2003
7/7/2005 10:52 AM

"Dude, Linux is just better."

Nope.


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MGB 2003
7/7/2005 10:52 AM

Fundamentals
Performanc and Scalability Leadership

Throughput (Mbps)

Windows Server 2003 Enterprise Edition RC2

Red Hat Linux Advanced Server 2.1

Red Hat Linux 8.0 Professional

Source: Veritest File Performance Benchmark Study


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MGB 2003
7/7/2005 10:52 AM

Linux Reality - Scalability

Windows Server 2003

Lower TCO

Better performance

Integrated innovation

Futures in file sharing

Key:

Windows Server 2003 Enterprise Edition RC2

Red Hat Linux Advanced Server 2.1 - Apache

Red Hat Linux Advanced Server 2.1 - TUX

Red Hat Linux 8.0 Professional

Requests Per Second

DL760-1P

DL760-2P

Veritest Web Performance Benchmark Study

Throughput (Mbps)

Veritest File Performance Benchmark Study



This slide shows the actual peak dynamic CGI and ISAPI test results and
the percentage increase in performance when using Windows Server 2003
vs. Red Hat Linux Apache and TUX.

Windows shows a 300% performance gain over Red Hat Linux Apache.  It
also showed significant performance margins over Red Hat TUX on all
tested configurations.

Windows Server 2003 processed 33,991 requests per second on the 8P
system compared to Red Hat's TUX 13007 and Red Hat Apache 8496 requests
per second.

Requests per second are a basic measure of the client/server interaction
and give you a rough idea of how many hits per day a server can handle.
 Keep in mind, though, that WebBench's requests per second score is
generally higher than the typical load sevices by mose Web servers
because WebBench uses stress tests to bombard the server with requests
as fast as clients can issue them.

Reactive TP if asked about red Hat drop off on 8P machines

Veritest noticed a drop off in performance on the 8 processor
configuration on TUX.  They requested server tuning infor from Red Hat
but were unable to get the needed resolution from RH tech support to
complete the testing in time for this report.  Veritest concluded that
even if Red Hat could hve remedied the situation Windows server 2003
would come out ahead by a significant margin.

This slide uses data from page 3 of the Veritest report.


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MGB 2003
7/7/2005 10:52 AM

Web Server
Linux Competitive Data (WebBench Static)

WebBench Stat.c
Static: Small static set (60MB)
6.5 KB average response size
All requests non-KA
Used WCAT client to drive load for 8P
WebBench client used for UP/4P

IIS vs. Tux
Up: 10% over TUX
4P: 18% over TUX
8P: 12% over TUX

IS twice as fast as Apache/Linux
Hardware
8P 700 MHz Xeon PIII
4xGB nte XF NICS
4GB RAM

Software
Windows Server 2003 RC2
Linux
Red Hat 7.2 + Linux 2.4.9-31
Intel GB driver 4.1.7
TUX 2.2.0-1
Apache 2.0.35

WebBench Static Throughput

WS2003

Apache/Linux

Tux


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MGB 2003
7/7/2005 10:52 AM

"But at least it is more secure..."

Whatever.


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MS-CC-RN 000001089922
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MGB 2003
7/7/2005 10:52 AM

Fundamentals: Security
Security is an industry challenge

Total Security Advisories
Jan-Nov 04, 2002
Source: Company web sites

Windows compares very
favorably to Linux and Unix
alternatives

CERT Advisories
by OS - Jan - Oct 2002
Solaris
Red Hat (OS)
Microsoft (OS)
Source: CERT

Current Scanning Activity
Systems
Linux/Unix systems
Microsoft systems
Scanning and probing activity related to unknown vulnerabilities.  This
reflects attempted exploitation of vulnerabilities in Internet hosts.


Key Slide Take-Aways:
Microsoft consideres security to be an industry challenge.  We recognize
how critical this issue is for customers and partners and are committed
to our leadership position in the industry on this issue.  Security is
top-of-mind accross everything element of our business and development
model.  We beleive that people who examine the industry data on security
will conclude that Windows compares very favorably to Linux and Unix.

Discussion Points:
It is important to not that Microsoft considers security to be an
industry challenge, and that we believe that Windows is not alone as a
target for hackers.  This is contrary to the belief held by many
customers that Linux is inherently more secure than Windows and/or not
targeted for attacks.  In fact, if customers examine the data, we
believe that they will see that Windows compares very favorably to both
Linux and Unix from a vulnerability perspective.  For example, Microsoft
issued less security bulletins and cert vulnerabilities than Linux in
2002.  The fact is, the challenge faced by Linux on security is equal to
Microsoft's, and it remains to be seen how well a decentralized
community of volunteers can meet that challenge.

/* transcriber note - see recent article on the companies developing
linux kernel */


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MGB 2003
7/7/2005 10:52 AM

Security: The Facts

CERT Advisories by OS - 2002

Solaris

Redhat

Microsoft

Linux Vulnerabilities
Growing 21% Faster
Than Microsoft

Key:
Linux
Microsoft
Source: ISS X-Force

On Tuesday a Cnet story posted announcing that RedHat's Advanced Server
had been ceretified by the DoD's Common Operating Environment (COE)
process (http://news.com.com/2100-1001-984202.html;
http://www.infoworld.com/article/03/02/12/HNrhat_1.html).  Wednesday a
piece ran in Tech Daily announcing that IBM would begin a process to
obtain Common Criteria certification for the Linx operating system.
What followed were several trade press articles announcing that Oracle
is going to back RedHat in a quest to secure Common Criteria
certification (see links below).  We've developed the following reactive
talking points and will get them to the field in case this coverage is
picked up globally.

/* transcriber note - astroturfing and moles */

Oracle/RedHat/IBM Coverage

Cnet: http://news.com.com/2100-1001-984383.html?tag=fd_top
Daily Tech News: http://www.dailytechnews.com/dtn.php?n=8
eWeek: http://www.eweek.com/article2/0,3,959,886729,00.asp
ComputerWorld:
http://www.computerworld.com/softwaretopics/os/linux/story/0,10801,78484,00.tml

Talking Points

CC v. COE


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MGB 2003
7/7/2005 10:52 AM

UK Security Site Report (mi2g)

In May this year, 19,208 successful
breaches were recorded agains Linux based
systems, compared to 3,801 against MS
Windows based systems,

http://www.theinquirer.net/?article=9845


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MGB 2003
7/7/2005 10:52 AM

"GNU Project Server Hacked by Intruder."

"...[T]he Foundation is warning that some files
may still be compromoised.  "Given the nature
of the compromise and the length of time
the machine was compromised, we have spent the last few weeks verifying the
integrity of the GNU source code stored on
gnuftp.  Most of this work is done, and the
remaining work is primarily for files that were
uploaded since early 2003, as our backups
from that period could also theoreticaly be
compromised," he explained.

http://www.atnewyork.com/news/article.php/2248811


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MGB 2003
7/7/2005 10:52 AM

Linux Becoming a Target

During August, 67 per cent of all successful and verifiable digital
attacks against on-line servers targeted Linux, followed by Microsoft
Windows at 23.2 per cent.  A total of 12,892 Linux on-line servers
running e-business and information sites were successfully breached in
that month, followed by 4,626 Windows servers according to the report.

http://www.globetechnology.com/servlet/story/RTGAM.20030911.gtlinuxsep11/BNStory/Technology.

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MGB 2003
7/7/2005 10:52 AM

"But what's with all the patches?"

Patches? We don't need no stinkin' patches!

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MGB 2003
7/7/2005 10:52 AM

Which is Buggier -
Windows or Linux

Red Hat Linux 7.2, released early 2001
Windows XP, release November 2001

XP Pro = 27 fixes
Red Hat = 158 fixes

(Counting patches listed on Microsoft and Red hat web sites from XP
release through February 2003.)
http://www.newsfactor.com/perl/story/21583.html

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MGB 2003
7/7/2005 10:52 AM

Do Linux Patches Get Delivered Faster?
Reality: Even major distributions take
months to turn patches around

Open Source model opens
door to attackers when
patchers are delivered from
only some vendors

Jan-Oct 15 2002, Redhat
release 9 security advisories
one or more months after
other vendors

Meanwhile, systems remain
vulnerable while
administrators wait for the
Redhat patches

Red Hat security advisories

CVS-2002-0002 (stunnel, 1 month late)
CVS-2002-0003 (groff, 1 month late)
CVE-2002-0004 (at, 2 months late)
CAN-2002-0012 (snmp, 1 month late)
CAN-2002-0013 (ethereal, 1 month late)
CVE-2002-0043 (sudo, 2 months late)
CVE-2002-0044 (enscript, 2 months late)
CVE-2002-0045 (openldap, 3 months late)
CVE-2002-0047 (kernel, 1 month late)
CVE-2002-0059 (zlib, 2 months late)
CVE-2002-0083 (openssh, 2 months late)
CVE-2002-0167 (imlib, 1 month late)
CAN-2002-0184 (sudo, 1 month late)
CAN-2002-0871 (xinetd, 2 months late)

(Source: CVE advisories at http://www.cve.mitre.org RedHat web site)

http://www.cve.mitre.org
http://www.redhat.com/apps/support/errata

Most linux dista appear to ship their fixes relatively close together,
RH commonly issues patches later.

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MGB 2003
7/7/2005 10:52 AM

Microsoft Issues Patches, But
Users Don't Apply Them

Attack date

Patch issued

Advance notice

Impact of attack

Average: 305 days

Source: MacAfee, MessageLabs, Microsoft, Symantec and Sophos

Forrester study, "Can Microsoft be Secure?", March 2003


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MGB 2003
7/7/2005 10:52 AM

Microsoft's Position

It's not the products. It's the solutions.


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MGB 2003
7/7/2005 10:52 AM

Microsoft's Premise

The Microsoft Windows platform is more
comprehensive, integrated, interoperable,
and easy to use

Microsoft's approach delivers better
products, greater choice and a healthier
ecosystem

The combinations of these results in greater
business value and lower TCO


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MGB 2003
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Focuse on Platform

Management

Collaboration

Identity Mgmt

Commerce

Productivity

Mobility

SMS 2002, MOM

Exchange, SPS

MMS, ISA, AD

BizTalk, CS2000

Office XP

Mobile Info Svr

Tivoli

Lotus Domino

???

WebSphere Commerce

StarOffice

???

Data Management

Programming Frameworks

Web & Application Services

Web Server

File Services

Network Access Services

Directory/Security Services

Kernel

Customer Need

SQL Server

.NET Framework ASP.NET
Internet Information Server
MSMQ Transaction Server
Windows Server
Distributed File Servie
VPN RAS PKI Smart Card
Active Directory Kerberos
Windows Kernel
Microsoft Platform

Visual Studio .NET

DB2
J2EE
WebSphere MQ Series
Apache
Samba
???
IBM SecureWay
RedHat Linux
IBM "Platform"
WebSphere Studio

Integrated, Comprehensive, Easy to Use,
Visionary

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7/7/2005 10:52 AM

MS Smart Connected Organization
Integrated Innovation ... Providing Solutions


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7/7/2005 10:52 AM

Desktop: Better Value
Measurement
(Linux+StarOffice)

Result
Deployment Success
2/3 IT Pros Could Not Complete Installation
/* transcriber note - MSCEs are truly that incompetent */
Deployment Time
Avg. 57% More Time to
Deploy than Windows
Document Compatibility
35.3% of Office Docs Opened
in StarOffice Had Errors
/* transcriber note - now whos fault is that? */
Top 11 Office Tasks
StarOffice Tasks Took 2.7
Times Longer
eTesting Labs, AIR

Myth: Linux costs 2X-3X less than Windows
Reality: Windows costs ~30% less per year


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MGB 2003
7/7/2005 10:52 AM


Import: Copy/Paste Web Page

Microsoft Word

StarOffice 6.0


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MGB 2003
7/7/2005 10:52 AM

File Formats: IRS 1040 Form

Microsoft Word

StarOffice 6.0


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MGB 2003
7/7/2005 10:52 AM

"StarOffice is so bad that nobody wants it,
even for free.  A mere 100,000 unites have been
ordered , which won't put much of a dent in the
78 million copies of Office XP that Microsoft has shipped."
...Forbes Magazine, November 1, 2002

"McNealy has to pick his fights with Microsoft.  Give this one up.  It's
a distraction."
...BusinessWeek, November 25, 2002

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7/7/2005 10:52 AM

Our Strengths

Price is what you pay, value is what you get -
you get way more from Microsoft
Better Security
Better Integration
Better Interoperability
Far Greater wealth of Applications, Drivers, etc.
Much better development tools
Better Support/Quicker Fixes

Safer Bet
Well defined road map & constant investment
Single point of accountability

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MGB 2003
7/7/2005 10:52 AM


"Dang. So what should we do?"

Ahhh, Grasshopper, you are learning much.


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MGB 2003
7/7/2005 10:52 AM


Empower peope and
businesses to realize their full potential

CSI Advantage: Microsoft products deliver superior advantage and value
to our customers and partners through:

Phase 1

Phase 2

Stronger Security
Lower Overall Cost
Integrated Innnovation
Reliability and uptime
Interoperability

Easy to deploy & manage
Simple & familiar to use
Wide range of apps & partners


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MGB 2003
7/7/2005 10:52 AM

Understanding the Open Source Movement
Attack of the Clones

Many Microsoft products
(Office97, Win98, Outlook) have
been copied well

Business Model
Most open source vendors revenue comes from services
revenue; building custom apps, support
Ximian, JBoss, Zope.com, MySQL, et. al.

Community
Open source has created a competing ecosystem
of developers and ISVs
Disparate pieces & parts don't serve Enterprises needs
Focus customer on vendor accountability


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MGB 2003
7/7/2005 10:52 AM

Ximian on Red Hat


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7/7/2005 10:52 AM


SuSE KDE

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7/7/2005 10:52 AM

Oracle's Mad Hatter


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7/7/2005 10:52 AM

Upgrade the NT4 installed base

Over 60% of MS installed base
supporting commodity workloads
49% of NT4 installed base
running work loads that could potentially
be switched to Linux with miniml customer pain
/* transcriber note - by their own admission */
Windows Server 2003 Changes the Dynamics
Dramatic performance, manageability, reliability, storage capacity
enhancements make it ideal consolidation platform - "Do More With Less"
Buit-in integration points between server and client, (AD and Group
Policy) give admins unique abilities
Broad suite of interoperability services to respond to customers'
diverse needs

Upgrading the NT4 installed base is a a key to positioning Microsoft for
future growth.  The goal in FY04 is to migrate 40% of this installed
base, representing an upgrade opportunity of more than $1 billion USD.
In a recent U.S. Server Tracker survey over 60% of Microsoft's installed
base is supporting commodity workloads.
/* transcriber note - and thus could leave at the drop of a hat */
49% of our installed base is on NT4 running workloads that could
potentially be switched over to Linux with minimal customer pain.

Addressing the challenge in Server Consolidation in the Enterprise:
We havea unique opportunity to demonstrate customer value centered on
server consolidation in the enterprise.  When contrasted to Linux,
Windows Server 2003(WS03) delivers platform value by supporting key IT
scenarious right out of the box as a comprehensive, integrated, and
easy-to-use platform.
Server Consolidation/Migration Scenarios: Dramatic performance,
manageability, reliability and storage capacity enhancements in WS03
make it an ideal consolidation platform, particularly for customers
running legacy NT4 or Novell systems.
/* transcriber note - targetting novell by name here */
Management of the Server-Client Environment Scenarios: The built-in
integration points between the Windows server and client, such as Active
Directory and Gorup Policy, give WS03 adminsitrators the unique ability
to centrally manage settings and protect data at both the server and
client levels.
Identity Management Scenarios: Active Directory, made dramatically
easier to deploy, use and manage in WS03, is uniquely capable of
providing a single point of control for managing user identities and
access to resources across multiple systems and platforms - Linux has no
equivalent offering.

Secure Mobile Access Scenarios: WS03 delivers securie wireless and VPN
access out-of-the-box, while palcing together a comparable soluton on
Linux is a complex and costly undertaking.

Information Worker Productivtity Scenarios: WS03 delivers innovative new
solutions for today's information worker, enabiling productivity and
collaboration benefits that extend far beyond the simple file sharing
capabilities of the Linux-based offerings.
Small Business End-to-End Solution Scenario: For small businesses,
Windows Small Business Server is the perfect entry point into the
Microsoft server line-up, delivering the richness of Microsoft's server
technologies together in a simple, integrated solution for an
exceptional value.

Cross-Platform Interoperability Scenarios: Recognizing that
heterogeneous environments are a fact of life in today's IT environment,
Microsoft offers a broad suit of interoperability services with WS03 to
respond to the diverse needs of customers.


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7/7/2005 10:52 AM

Move Customers off of NT4!
"Integrated Innovation"

Base: Total Companies (N=459)
Aware
Use

Clustering

UNIX Client Supp.
DFS Replication
EFS
DFS
Redirected My Documents
SAN Support
Mac Client Support
Shadow Copy Restore
BUT.  Which one of the following statements best describes your
awareness, familiarity and usage of the following File Server features
or tools?


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MGB 2003
7/7/2005 10:52 AM

Maintain the Desktop Advantage

Desktop's market position: more to lose

Linux and other desktop
alternatives look more appealing -
only when compated to Windows 9x
than when compared to Windows XP

Win by communicating value proposition
Integrated Innovation: productive, easy powerful
Innovation: Tablet, MediaCenter
Stronger Security: riorous engineering
Proven compatibility, interoperability, reliable partner
Lower Cost: TCO, deployment, manageability

Windows Desktop
The Desktop's market position presents a different situation from that
of Server.

Concentrate on positive, customer-oriented benefits of Windows XP
against previous versions of Windows and competitive alternatives.

Linux and other desktop alternatives look more appealing when compared
to Windows 9x than when compared to Windows XP.
Customer interest is in Linux at both ends of the desktop computing
sprectrum: at the low end, primarily in embedded devices like retail POS
devices; and at the high end, primarily in workstations migrating from
Unix for engineering or digital content creation.

Linux on the desktop is perceived very favorably by IT Pros.

Win by communicating the positive busines value of Windows XP, such as
familiarity, ease of use, and application compatibility.

Win by helping our customers deploy upgrades to their existing systems
as well as new systems.


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MGB 2003
7/7/2005 10:52 AM


Fight the Myths
Linux and Open Source Software
Myth
Lower Cost
More Secure
More Reliable
Faster
Best for Unix migration
Good Enough

Reality
Numerous 3rd party TCO studies show Windows a better value over typical
lifecycle
Vulnerability stats, Common Criteria certification demonstrate Windows
more secure
Numerous customers demonstrate 99.99% reliability; IDC says Windows just
as reliable, even with more complex workloads
Veritest demonstrates Windows Server 2003 delivers significantly better
File server throughput over Red Hat Advanced Server
Microsoft Services For Unix (SFU) wins Best Systems Integration product
award at LinuxWorld
A.I. Research Study shows desktop tasks take 1/2 time to complete on
Windows vs Linux.


Exploit Business Value Team Success
- -posted 25 Linux vs. Windows TCO studies on its Sharepoint site for
internal reference
Team Objectives
Develop Value Methodologies
Provided customers with Business Cases
Capture Value Benchmarks
Create new tools based on benchmarked data
Influence Analysts on Microsoft business value
Case Studies & White Papers

Tools used by the BV Team
Gartner TCO Analyst 5.02
Total Value of Opportunity (TVO)
MS Linux Mainframe (TCO)

When to Engage
Cutomers desires Business Value evidence and the scenarios match the
Business Value team's core programs

How to Engage
Contact Scott Davis (Volt)


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7/7/2005 10:52 AM


What to Do?

Provile the Accounts, so we can make sure
their infrastructure is on our platform.
Ask the customer situations - bribe them!

Know what to pitch
Terminal Server
SBS Standard
Web Server
Office Lite
Etc.
Feed to Corporate through Comphot



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MGB 2003
7/7/2005 10:52 AM

Resources
One stop shopping:
http://linux

Available tools on the site
Linux Competitive Airlift
Competitive selling guide
New customers ready BDM & TDM white papers and
presentations
TCO studies and tools
Updated battle cards

Don't forget the Office compete team
http://officemarketing/staroffice


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MGB 2003
7/7/2005 10:52 AM

Microsoft vs. Linux
Just Win, Baby.



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7/7/2005 10:52 AM

That's it. I am done.


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Appendix

Slides I thought I was going to use but didn't.


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7/7/2005 10:52 AM

customer
Cox Communications
Alex Kucera, Account Manager
Lloyd Burke, Services Executive
Southeast Region


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7/7/2005 10:52 AM

Customer Landscape
Linux Threat

Cox Enterprises
$10 billion Fortune 350 company

Business Driver:
Increase Cash Flow

Linux hype sparked CEO interest


Cox Enterprises ranks in the fortune 350, Cox Communications (CCI, a
subsidiary of Cox Enterprises) is the third largest cable operator in
the United States.  CCI has been challenged by the investor market place
(Wall Street) to increase Free Cash Flow, a leading indivator in the the
cable business of busines well being.  In a capital intensive industry
like cable tv, Investors use free cash flow as a primary measure of health.

Facing the pressure of deliverying an additional 350 Million dolars in
Free Cash Flow (FCF) CCI is looking at every way possible to free up cash.

The CEO of CCI ask the CIO to learn more about Linux,
The CIO asked the VP of IT Ops to check this out.

VP Ops. asked Dell: verify Linux on Intel ROI
Dell, Redhat. Intel produced Linux Assessment; findings: save $7m over 5
years


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Timeline

Confirmed Linux evaluation was under way
Asked for "equal time", met w CIO / VP Ops
Created preliminary business case
Started In-Depth Rapid Economic Justification (REJ) & Proof of Concept

Preliminary Findings
Linux
Microsoft
Savings
$7.3M over 3 years
$13.9M over 5 years

Opportunity for Microsoft -
Capture $2.4 million in server revenue
High services revenue
CRM/ERP, Cox Net conversion to Win/SQL EAI


The MS account Team Confirmed Linux evaluation was under way

The MS account team, (a paranoid group) Asked for "equal time" and met w
CIO / VP Ops.; We had to ensure that we would have a fair hearing and
our #'s would be compared honestly against any Linux eval and the
perception that Linux was just a different pew in the Unix church.

By getting executives to acknowledge that MS would be considered, the
playing field was leveled.  CCI conducted an internal review and cost
analysis that determined there were 7.3 million in savings.  By bringing
REJ expertise MCS was able to refine the nubers for various alternatives
that allowed a more accurate comparison.

We worked with the cheif architect to review the CCI analyses that had
been prepared to date.  WOW Numbers all over the place.  An incomplete
picture that made apples to apples very difficult.  Most of your
companies may not know all of the applications, tools and solutions as
well as what boxes they might be on.

After serveral versions and drafts and reviews, The VP Ops came to the
conclusion that more info was needed.  The preliminary business case was
designed only to wet the appetite and ensure a full blown REJ and POC
could be started.  We needed to increase our understanding of the
environment, what could move to Wintel/SQL from Sun/Oracle.

Started In-Depth REJ, & POC

This oppty gives MS the oppty to STOP Linux, Move Sun out of the account
and Replace ORACLE.  The POC will allow us to prove all the 'abilities'
necessary to become the enterprise standard at CCI.

Oppty for MS-bloc Linux, capture $2.4m in server rev., hich svc's rev,
CRM/ERP/Cox.Net conversion to Win/SQL/EAI.

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Best Practices / Do's and Don'ts

Assume Linux is in your account

Find and lean on your insider friend, 'the Fox'

Gain executive sponsor on Microsoft value proposition

Escalate to CompHot; update Siebel

Search for assessment funding: customer, partnet and Microsoft

Pull in MCS / partner resources early

Leverage existing Microsoft technology clout


Assume Linux is in your account  Someone is doing some research

Find and Lean on your insider friend, 'the fox'  Having a trusted
MSfriend in the account is crritical.  Some people (unix Bigots) can
think of lots of reasons not to have a MS solution.  MS folks may not be
the strongest voice but they are true believers (Protect them, make them
look good)

Gain exec. Sponsor on MS value prop  Ensure a fair hearing.  Results are
very easy to manipulate be careful not to over promise You only need
enough towin not to set unachievable expectations.

Contact CompHot; Update Siebel Document the risk & oppty.

Search for Assessment funding: customer, partner and MS.  Customers are
wary to pay for the oppt to spend more money with you.

Pull in MCS / partner resources Early notice lets everyone rally around
the oppty.  Del and Intel were instrumental in the success achieved to
date (But remember they win regardless of how Sun loses)

Leverage existing MS technology could MS is installed throughout most
accounts and may be playing the low cost role the Linux envisions itself
in.  Maximize "enterprise capability" Maturity and support of the MS
Platform.

Discus Linux considerations at senior level, nothing lower than IT Dir.;
evaluate priority of Linux consideration

Executive level discussion: confirm if Standardization, Optimization,
Consolidation, and cost reduction are key business drivers


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What did we learn?

We must work to get customers to fully understand our value proposition
"Microsoft is too expensive for the value we gain"
CFO, Government sector

We must develop much better relationships with our customers than our
competitors
"I have key suppliers that I ask advice from and Microsoft isn't one of
them"
CIO Global bank

We must present a better roadmap for the future for our customers
"I understand where Sun, Oracle and IBM are going with technology, but
not Microsoft"
Chief Architect Global Bank


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7/7/2005 10:52 AM


Broad Interoperability

NetWare
Services for Netware
Macintosh
Novell NDS,
Exchange,
UNIX NIS,
IPlanet,
Novell Groupwise,
Lotus Notes
Services for Macintosh
TCP/IP
IPX
Kerberos
Active Directory
DHCP
WIndows
PKI
Meta-directory Services
Built on Interoperability and Standards
LDAP
HTTP
App servies:
OLD DB,
ADO,
ODBC,
XML,
SOAP

BizTalk
IBM
Amdahl,
Hitachi
Host Integration Server
DNS
WBEM
XML
Services for UNIX
SQL Server
Oracle,
Informix,
IBM DB2
XML/SOAP web
services
Sun Solaris, HP/UX, Linux, Tru64, IBM AIX

Key Slide Take-Aways:

Windows 2000 provides an unmatched level of interoperability at both the
platform and application services level
We start with industry standards built into the core of Windows 2000 -
TCP/IP, DNS, http, Kerberos and others

We have numerous solutions to provide interop at four levels:
Network: e.g. Novell netowrks talking to Windows networks
Data: e.g. sharing files and application data between diverse systems
Management e.g. consolidating directories from multiple platforms
Application e.g. getting access to applications and services that are
running on other platforms

Discussion Points:
Microsoft has products for Windows 2000 to allow virtually any other
operating system client, including Macintosh, UNIX and Linux to use
Windows 2000 Servers.
Products are also available to allow Windows clients to access other
server platforms, including UNIX, IBM mainframe and Novell NetWare.
Microsoft goes beyond the plaftom interoperability capability to also
allow Windows applications and environments to work seamlessly with data
and applications hosted on other platforms
Active Directory interoperates with other system directory services and
can host directory services for third party enterprise applications
running on other platforms.
Data sharing technologies such as XML, ODBC and OLE DB are built into
Windows 2000 and SQL 2000 to allow access to distributed corporate data
and applications.
Even UNIX scripts and applications can run on Windows 2000 through
Services for UNIX and Internix products.
In summary, no other enterprise platform can match the diversity of
interoperability that is available with the Windows 2000 product family.

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Thriving Global Ecosystem
Enables Greater Choice, Flexibility and Value
750,000 Microsoft partners
More than 450,000 MCSE professionals
More than 1.5M MCP certification holders
6M+ developers
2200 user groups
400 community web sites
Largest ISV community worldwide

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Key Slide Take-Aways:

Microsoft believes in and is highly committed to building a vibrant
global ecosystem of application providers, service providers, systems
integrators, training providers, and hardware developers to compliement
the work it does to develop strong, useful technology products.  This
thriving Microsoft ecosystem of partners and enthusiasts enables
customers to realise lower costs via competitive prices, and greater
choice and versatility as they seek out technology suppoer, services and
solutions across the globe in their local communities.  Microsoft's
business model also ensures that there is considerable opportunity for
people around the world to be successful in choosing to build a local
business or software economy around the Windows platform.  We did a
study and found that, on average, for every dollar that goes to
Microsoft, nine dollars go to the local economy.

Discussion Points:
Microsoft has a more vibrant global ecosystem than Linux/NCS
alternatives.  Worldwide, there are:
75,000 Microsoft Partners
More than 45,000 MCSE professionals
More than 1.5M MCP certification holders
6M+ developers
2200 user groups
400 community web sites
Largest ISV community worldwide
...al making up a global, yet local, community of technology service and
solution providers to support Microsot customers around the globe.

In contrast, the Linux/NCS ecosystem has no single 'center of gravity'
or central body investing in and assuming broad responsibility for its
overall health and growth.  Today, there are 10XD more applications for
Windows Server and 100X more trained & certified service providers.   In
considering this, customers will want to be aware that there are
elements of the winning services engagements on Linux, and that puts
IBM's services organization (the IBM Global Servics (IGS) organization
that accounts for >50% of IBM's revenus) in direct competition with any
service provider who wants to deliver solutions on Linux.  Customers who
look to IBM or support and services risk being locked into and
end-to-end IBM solution that is typically based on their proprietary
servies model, offering little competitive advantage and an "ecosystem
of one" Being locked into IBM eliminates any advantage of choice that
Linux/NCS is supposed to provide.

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Desktop: Greatest Choice

Largest number of applications
> >4000 apps tested by Microsoft with Windows XP
Many, many more available

Largest number of devices
12,999+ device driers on the XP CD
41,000 devices submitted to WHQL

Broader availability of services
> >450,000 MCSE professionals world-wide

More training options
Wide range of Microsoft certified training courses
Many Microsoft certified training providers


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Progress on the Fundamentals

Reliability
IDC TCO Studty say Windows and Linux both 99.99+%
Windows servers more heavily burdened

Scalability
Windows greater scale-out, scale-up, 60% faster than Samba

Manageability
IDC TCO Study says Linux requires higher staffing costs

Security
Fewer vulnerabilities; faster response


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7/7/2005 10:52 AM

Acheiving World-Class Uptime

Single Server Availability
Windows 2000 delivers up to 99.99% availability
Cinergy achieving 99.99% availability
MSNBC delivered 99.98% during the Winter Olympics

Multi-Server Availability
Madrid Stock Exchange achieving 99.99%
MS.COM has top rated availability (Keynote benchmark)
Continuous availability for City of San Diego 911 services

Fault Tolerant Offerings
Stratus FTServer offers guaranteed 100% availability
Hewlett-Packared Compaq offers 99.99% uptime guarantee
Unisys offers 99.99% and higher availability

Windows 2000 made substantial improvements over Windows NT 4.0
Elimination of 80% of reboots per server per year in Windows 2000
Windows Server 2003 is expected to have 50% less down-time

Let's start with Reliability.  Unfortunately, there is a perception that
Windows is less reliable than Linux.  We believe that this perception is
usually based on customer experiences with Windows NT4 (often early
versions prior to SP4).  What is important to note is that there have
been significant improvements in reliability with Windows 2000 including
a great reduction in the number of reboots and mean time to crash that
is now measured in years.  With Windows 2000 customers achieve single
service availability of 99.99% and multi-server availability of 99.999%
when they have sound testing (checking driver & app compatibility &
hardware problems) and integration processes in place, use standard
hardware and maintain strong operations/mgmt pracies.  In addition, our
partners offer solutions built on Windows 2000 with guarantees of up to
100% availability, much better than guarantees offered for NT4.  Windows
.NET Server 2003 will improve reliability even further, primarily with
the new and resilient Web (IIS6) application model.


Slide information background:
Cingergy - Largest non-nuclear electric supplier and one of the leading
diversified energy companies in the United States
/* transcriber note - east coast blackout */
MSNBC hosting the official NBCOlympics.com site during the 2002 Winter
Olympics was able to maintain high service availability while serving
113 Millino page view and enduring multiple Net attacks.
Madrid Stock Exchange achieved 99.999% availability and zero downtime in
the first seven months running on Windows 2000 Data center and Advanced
Server and SQL 2000.
Microsoft.com - results from Keynote measurements commissioned by
Microsoft show that MS.com has the highest availability YTD 10/2002 when
compared to it's top 5 rival sites (AOL, YAHOO, ORACLE.COM, SUN.COM and
MSN.COM).  Rivals selection defined by Microsoft.
City of San Diego 911 services - San Diego Fire & Life Safety Services
achieved continuous service availability running on Windows 2000
Advanced Server
The OEM guarantees consider only unplanned reboots in the downtime.
Stratus and Compaq/HP offer their guarantees with W2K but not with
Linux.  Compaq/HP used to offer 99.9% with NT (520 minutes vs 52 minutes
of downtime for W2K).
Compaq/HP and Stratus need to do an availability review before accepting
a customer.  This includes softare, mgmt, physical connections, network,
hardware ...


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Gnome

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Red Hat Gnome

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7/7/2005 10:52 AM

Red Hat Gnome

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Red Hat Gnome

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7/7/2005 10:52 AM

OpenOffice on Red Hat

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===

MGB 2003
7/7/2005 10:52 AM

Normaler Text

Fett kursiv untertrichen groà sehr groÃ
bild im text
tabelle im rahmen

OpenOffice

75
MS-CC-RN 000001089972
HIGHLY CONFIDENTIAL

===

MGB 2003
7/7/2005 10:52 AM

OpenOffice

76
MS-CC-RN 000001089973
HIGHLY CONFIDENTIAL

===

MGB 2003
7/7/2005 10:52 AM

OpenOffice

77
MS-CC-RN 000001089974
HIGHLY CONFIDENTIAL

===

MGB 2003
7/7/2005 10:52 AM

SquirrelMail

78
MS-CC-RN 000001089975
HIGHLY CONFIDENTIAL

===

MGB 2003
7/7/2005 10:52 AM

Ximian on Red Hat

79
MS-CC-RN 000001089976
HIGHLY CONFIDENTIAL

===

MGB 2003
7/7/2005 10:52 AM

Ximian

80
MS-CC-RN 000001089977
HIGHLY CONFIDENTIAL

===

MGB 2003
7/7/2005 10:52 AM

Ximian

81
MS-CC-RN 000001089978
HIGHLY CONFIDENTIAL

===

MGB 2003
7/7/2005 10:52 AM

Ximian

82
MS-CC-RN 000001089979
HIGHLY CONFIDENTIAL

===

MGB 2003
7/7/2005 10:52 AM

YaST

83
MS-CC-RN 000001089980
HIGHLY CONFIDENTIAL


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