Microsoft Corporation Presents at J.P. Morgan Global Technology, Media & Telecom Conference, May-20-2014 09:20 AM - NasdaqGS:MSFT

NasdaqGS:MSFT

**- Market Outlook: Cautiously optimistic about the IT market, with traditional on-premise software and PC markets being relatively stagnant, while the cloud market is experiencing explosive growth.

• Financial Performance: Microsoft is growing in traditional markets despite a flat to slightly up or down market, with 7% worldwide growth in software in commercial markets. Developed countries, particularly the U.S., are showing higher growth rates.

• Cloud Growth: Triple-digit growth in cloud services, with Office 365 reaching a $2.5 billion run rate, and significant growth in Azure and CRM.

• Customer Engagement: Focusing on educating the sales force to position products effectively and backing them with subject matter experts. Emphasizing business value and productivity in cloud migrations.

• Office 365 Positioning: Highlighting the business value and functionality of Office 365, especially for on-premise customers, and positioning it as a future-oriented solution.

• Data Center Investments: New product release with SQL Server 2014, aiming to provide a comprehensive database solution for all company sizes, with in-memory and Hadoop capabilities.

• Azure Growth: Expecting continued aggressive growth in Azure, with unique differentiation in providing both infrastructure and enterprise application support.

• SMB and Mid-Market Opportunity: Highest growth market for Office 365, with significant upside through syndication partners and volume partners.

• Cloud vs. On-Premise: Cloud deployments reduce data center investments, offer faster time-to-market, and require less infrastructure management, with minimal trade-offs.

• Personal Clouds: Developing personal cloud services to enhance the enterprise cloud opportunity, leveraging hardware design and distribution capabilities from Nokia.

• Tablet Form Factor: Success with Office for iPad, enhancing Office 365 adoption, and targeting platforms with higher share of human eyeballs.

• SQL Server Growth: Steady growth in SQL Server, with a 15% growth rate, and expectations for further gains with SQL Server 2014.

• Remote Work Infrastructure: Robust infrastructure for remote work, including secure cloud syncing capabilities, tested in regulated industries like financial services and healthcare.

• Innovation Focus: Significant R&D investment, with growth areas including productivity, Platform as a Service, and data analytics.**