Microsoft Study Shows SMBs Using Technology to Cut Costs, Grow Business

"Microsoft SMB Insight Report" forecasts that a majority of small and midsize
businesses will maintain or increase IT spending in 2009.

REDMOND, Wash., March 25 /PRNewswire-FirstCall/ -- Microsoft Corp. today
released a study of the business challenges and technology priorities that
small and midsize businesses (SMBs) are facing in the year ahead. The first
"Microsoft SMB Insight Report," which will be published annually, identified
virtualization, IT consolidation, business intelligence, software as a service
and support of remote workers as the top technology investment priorities for
SMBs in 2009.

(Logo: http://www.newscom.com/cgi-bin/prnh/20000822/MSFTLOGO)

Based on a five-country survey of more than 600 Microsoft Small Business
Specialists, Microsoft found that the major concerns driving SMB technology
investments are declining revenue, competition from larger businesses and
general economic difficulties. In response, many SMBs are focusing on IT
investments that directly benefit their bottom line -- either by reducing
operating costs, improving employee productivity, or acquiring and retaining
customers.

According to Access Markets International (AMI)-Partners Inc., SMBs account
for 90 percent of the world's workforce and more than half of its gross
domestic product. Current market conditions are challenging SMBs' ability to
help revitalize the economy, but the "Microsoft SMB Insight Report" forecasts
that 55 percent of small and midsize businesses will maintain or increase IT
spending year over year through carefully placed investments.

"Small and midsize businesses play a critical role in the world's economy and
are often the first to emerge from periods of economic uncertainty because of
their passion, resiliency and innovation," said Eduardo Rosini, corporate vice
president for the Worldwide Small and Midmarket Solutions and Partners group
at Microsoft. "The 'Microsoft SMB Insight Report' identifies areas where
technology can play a role in shaping how soon and how aggressively the small
and midsize business community reclaims financial stability."

Investing Wisely in IT
Because SMBs typically lack the resources or technical expertise necessary to
evaluate and implement advanced technology solutions, they rely predominantly
on the assistance of local technology resources such as Microsoft Small
Business Specialists. This community of independent technology experts takes
the time to understand the needs of SMB owners and can help identify and
implement an IT solution that has the maximum impact on business.

The "Microsoft SMB Insight Report" reflects the insight of Small Business
Specialists from the United States, the United Kingdom, Canada, France and
Brazil. The following are some of Microsoft's key findings on the technologies
most likely to drive growth and profitability for SMBs in 2009:
-- Fifty percent of the surveyed Small Business Specialists identified
virtualization or IT consolidation through a small or midsize server
as
the technology most likely to reduce operating costs.
-- The Small Business Specialists expect a 20 percentage point increase
this year in the number of SMBs that use software as a service.
-- More than 50 percent of the Small Business Specialists considered
customer relationship management (CRM), virtualization or IT
consolidation through a small or midsize server as the best investment
for maximizing business growth in a down economy.
-- Nearly 40 percent expect an increased interest in business
intelligence
and identified it as a critical tool for helping improve a
customer's experience and increase loyalty.
-- More than half of the surveyed Small Business Specialists anticipate
an
increase in the number of SMB remote workers, and nearly 60 percent
expect that the shift to more remote workers also will lead to bigger
roles and more responsibilities for those individuals working
remotely.

"Historically, we have seen that SMBs have responded to economic contractions
by intensifying their use of IT, both to cut costs and to defend and enhance
their customer relationships," said Steve Reynolds, managing director for
AMI-Partners. "If SMBs respond to the current crisis as they have in the past,
we can expect that a sizable number of smaller businesses will invest in IT
now to lower operating costs, boost employee productivity and increase
connectedness to customers so as to reap the benefits in the years ahead."

A complete version of the 2009 "Microsoft SMB Insight Report" is available at
http://www.microsoft.com/presspass/presskits/smb/docs/Microsoft2009SMBInsightsReport.doc.

About Microsoft in Small Business
Microsoft offers a broad range of business solutions to help small and midsize
businesses (SMBs) maximize productivity and expand business capabilities.
Microsoft's partner program includes more than 640,000 local technology
experts, including nearly 20,000 Small Business Specialists. Microsoft also
provides a variety of financing, flexible licensing programs and other
resources to help SMBs grow their businesses and respond to changes in the
market.

More information on Microsoft Small Business Specialists and other SMB
resources is available at the Microsoft Small Business Center at
http://www.microsoft.com/smallbusiness.

About Microsoft
Founded in 1975, Microsoft (Nasdaq: MSFT) is the worldwide leader in software,
services and solutions that help people and businesses realize their full
potential.

SOURCE Microsoft Corp.

Barbara Grimes, +1-503-443-7000, bgrimes@waggeneredstrom.com, or Rapid
Response Team, +1-503-443-7070, rrt@waggeneredstrom.com, both of Waggener
Edstrom Worldwide for Microsoft Corp.