Setting The Stage For Canada Competing In The 21st Century Marketplace

Phil SorgenPresident,Microsoft Canada

Uncertainty Around The Canadian Economy

Canada A Good Place To Do Business

Ranks second in terms of environmental performance. A country with environmental laws that are most compatible with business competitiveness.

Ranks much higher on quality of life issues, such as healthcare, crime rates and education.

Ranks second for educational attainment and expenditures, and achieves top ranking in terms of educational outcomes.

One of the top rated countries in terms of ethical business practices, ranking second for perceived low levels of corruption.

Despite today’s “interesting times,” Canada remains a great place to do business

A Need To Establish A Skilled Workforce

Massive challenges in finding skilled workers

Current levels of immigration won’t do much to solve the problem

Conference board, states only one generation to fix the problem before it becomes critical

What Can Be Done?

Increasing student interest in specialized programs

Education policy reform

Investments in R&D

Immigration policy reform

Workplace training and retraining

Creating cities that are attractive to the best and brightest employees

IT Capability And Business Performance CorrelationsIT score and three-year revenue growth

Top 25%

2nd 25%

3rd 25%

Bottom 25%

3.5%

63

51

33

75

1.3%

0.9%

-3.3%

Average IT Score(55 Average)

Comparative Revenue Growth (2002–05 CAGR %)

Total Benefit: 6.8%

Keystone Strategy Inc,“Enterprise IT Capabilities and Business Performance” (2006)

Baby Boomer/Millenial Work Force Shift

Only 46 million Gen-Xers

The 75+ million Millennials will dominate the workforce for the next 70 years1

Eighty million Boomers will retire over the next 25 years

1 FutureWork Institute

Baby Boomer/Millenial Work Force Shift

We are undergoing a powerful shift in our workforce — in the next 25 years, 80 million boomers will retire and the millennial generation — those born in the 1990's and just beginning to enter the workforce now, will dominate the workforce.The millennial generation has very different expectations about work and their careers than do previous generations

Little commitment to employer (a job is not life)High turn overFlexible time Virtualized supportManage to outcomes not processesExpect rapid feedback and on the spot rewardsSocial responsibilityFunctional teamsOpen dialogLatest technology

Bank Of Montreal Case Study

Customer Profile

Canada’s first bank, the Bank of Montreal, was founded in 1817. Now known as BMO Financial Group, its 35,000 employees offer diversified financial services in North America, Asia, and Europe.

Business Situation

To remain competitive and enter into the Asia Pacific market, BMO Financial Group needed a cost-effective infrastructure that supported enhanced performance and international scalability.

Bank Of Montreal Case Study

SolutionBMO Financial Group implemented a 64-bit computing architecture in its Capital Markets division withWindows Server® 2003. Using Windows Server 2008in its production environment, BMO estimates thatit can reduce server needs by 30 percent.

Benefits

Enhanced performanceSignificant cost reductionSubstantial time savingsEase of consolidationIncreased stabilityImproved platform manageability

PCL Constructors Inc. Case Study

Customer Profile

PCL Constructors Inc. is the largestgeneral contractor in Canada and the10th largest in the United States.

Business Situation

The company sought a technology solution to improve its collaboration abilities as well as improve internal processes and workflow.

PCL Constructors Inc. Case Study

Solution Working with Compugen Inc., PCL adoptedOffice Enterprise 2007 and Windows Vista.

Benefits

Improved collaboration with internal and external stakeholdersEnd user efficiency and self relianceBetter support for mobile workersImproved information securityImproved workflow processes

Microsoft's Economic Impact

14 million globalCanadian partners

Accounts for 42%of the IT jobs worldwide…

…Microsoft employs 78,000(.2%) of these IT workers.

Canada has 15,000 partners registered in the Microsoft Partner Program1,120 are Gold and Certified Partners

Blue Sky ISV Innovation Excellence Award

3 Finalists

Oculus Info Inc.Sales Resource Group Inc.Sitemasher Corporation

© 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.