Microsoft

Apple Inc. The Company

Having started the journey in 1976 the company has seen many milestones. Today it appears that Apple Computer Inc. is the sole successful escapee from the IBM and Microsoft hegemony in the personal computer field. Headquartered in Cupertino, California, Apple Computer designs, manufactures and markets personal computers and related software, services, peripherals, and networking solutions. But today the company is better known for the iPods and iPhones. The IPod touch being the latest craze. Apple designs, develops, and markets portable digital music players along with related accessories and services, including the online distribution of third-party music, audio books, music videos, short films, and television shows. John Sculley, previously the CEO joined Apple in 1985. Sculley had the valuable experience of the ‘Cola-War’ between Coke and Pepsi. He was full of marketing ideas and wanted to implement them in Apple as well. Steven Jobs, more of technology oriented initially found this approach little weird, but later gave Sculley a free hand (Yoffie and Slind, 2007). Sculley was later replaced with Michael Spindler in 1993 who lasted only three years, making way for Gil Amelio, who came out with the Macintosh product range for designers and artists. From here onward Apple brought out radical changes in the marketing strategies as well. Amelio also realized that the ‘free for all’ culture where anybody was free to defy anybody in the company, is causing losses to the company. He believed in more conventional strategy where project managers are supposed to sincerely implement the strategies devised by the strategists, whatever the outcome.

The Business Model

The company primarily operates in the Americas, Europe and Japan. It employs about 14,800 people. Apple experienced good success during the late 1980s but equally testing times during the 90s. Realizing the importance of strategic alliance, Apple also had a tie up with IBM in 1991 to target the areas where Apple lacked the developmental skills but owing to cultural and other differences the alliance did not last long. The 21st century seems to be progressing well so far for the company and proving to be particularly success oriented for Apple with its range of iPods and iTunes being very much popular amongst the young music lover fans. By the end of year 2000 Apple was able to sell some 2 million iPods leading to a 30% share of digital music players. Though the profit margin is miniscule as Apple has adopted the penetrative pricing strategy for its iPods, yet Apple is determined not to loose the initiative this time to its competitors like Sony, Phillips, Samsung etc. Year 2004 also saw the launch of a new 20 GB digital walkman from Sony, but so far iPods has been proving to be music to the ears of Apple.

While planning for long term objectives, the company will have to remain competitive. Porter’s value chain provides an important tool for a tool for developing and sustaining competitive advantage for a company. It underlines the need for creating and retailing value for the organisation. Value, in general, can be defined in respect of customers, employees and owners or other stakeholders. Value addition is considered an important ingredient in dealing with the competitions, as it provides the organisation with a strategic tool. An individual’s beliefs or conceptions about what is desirable, good or bad – forms the value system (Kotler, 1974). The term “value” can be defined in different ways according to the adopted perspective of the analysis: it is possible to determine a “customer value”, a “firm value”, a “stakeholder value” (Mele and Colurci, 2006).

Also read about Apple differentiation strategy

For the companies to identify their sustainable competitive advantage, Michael Porter developed a generic value chain with inter-related activities which are common in many firms. Porter identifies primary and support activities.  Primary activities are the ones which generate a profit margin by adding value. These activities can be instrumental in providing a sustainable competitive advantage for the organisation either collectively or individually. Porter’s value chain framework (1985) in general is accepted as the language for representing as well as analyzing the logic of firm-level value creation. The customer will prefer to deal with the company which values its association with the customer. This will help in retaining the customer base. And loyal customers happen to be good brand ambassadors for a company/ product, which will ultimately help the company in sustaining its competitive advantage.

For a customer, value proposition include, Access to products, need fulfillment, desire fulfillment, increased choice, new consumption patterns, Problem solving features, and interactivity. In the value chain, value is created in the goods or services through efficient production of goods and services based on a variety of resources. The company is considered as a series or chain of activities. Primary activities in the value chain of Apple include;

§  Inbound logistics: These include the raw material supplies, knowledge sources, consultancies, supplier management etc. Key suppliers of Apple include IBM and freescale.

§  Production: After planning out the strategies, the inbound logistics are put in use to give out a finished product or a full-fledged service component.

§  Outbound logistics: Outbound logistics include taking care of distribution network, inspecting the quality of finished goods and services, planning out marketing and sales strategies etc.

§  Marketing and sales: Marketing and sales forms an important component of the value chain as it is the main interface between the company and the customer.

§  Service: Once the product or service is delivered to the customer, then comes taking a feedback from the customer. This has become very important in order to establish the company’s brand equity and customer’s loyalty. Futuristic needs are also projected by way of accepting regular inputs from the customer.

Porter’s five forces analysis

In case of Apple Inc the Five Competitive Forces can be typically described as follows:

i.   Bargaining Power of Suppliers: ‘Suppliers’ comprises all sources for inputs that are needed in order to provide goods or services.

a. Apple is dependent on IBM for its supply of the PowerPC G5 processor which is used in its current Power Mac, Xserve, and iMac G5 products. The company is therefore susceptible to a supply risk for key components from its supplier who also happens to be a competitor. In the past IBM has experienced manufacturing problems with the PowerPC G5 processor, which resulted in delaying the shipment of various products and constrained certain product shipments during the second half of 2004 and the first quarter of 2005.

b. Freescale is the sole supplier of the G4 processor, which is used in the company’s eMac, Mac mini, and portable products.

In a market where speed to market is extremely vital for beating the competition, Apple’s dependency for such key components on its long time rival companies could result in its being at a competitive disadvantage. In fact IBM has made at least two unsuccessful attempts in the past to take over Apple Inc.

ii. Bargaining Power of Customers: Customers of course have plenty of options in the market place. And the customer will weigh all his options before going in for the purchase. Therefore Apple needs to be innovative and rely more on product differentiation. Sony, Phillips, and Samsung threaten to take away its monopoly over the iPod with their own version of walkman and minidisks.

iii. Threat of New Entrants: Though it is not easy for new entrant to enter the PC and Software industry as it is a capital intensive business as the economies of scale (minimum size requirements for profitable operations) leaves little room for a new start up company challenging the existing market share, yet the threat emanates from the existing competitors. If Microsoft decides to jump into the music store software, then it could be create an uncomfortable position for Apple, as Microsoft is known for aggressive an penetrative marketing.

iv. Threat of Substitutes: Threat from substitutes exists if there are alternative products with lower prices and with better performance parameters for the same purpose. Apple faces aggressive competition in all areas of its business. The market design, manufacture, and sale of PCs and related software and peripheral products has become highly competitive. Moreover this market continues to be characterized by rapid technological advances in both hardware and software development, which results increasing the capabilities of existing products and software. This is resulting is the frequent introduction of new products with much reduced prices and better feature, and performance. Apple needs to keep its R&D activities in motion all the time.

v. Competitive Rivalry between Existing Players: Though to certain extent Apple has been able to lower the competitive rivalry between itself and Microsoft by way of a strategic tie-up, but growth in business is one of the objectives of both the companies. Therefore Apple has a big task in hand. IBM also happens to be a supplier for Apple, but it must be remembered that IBM is a rival as well.

Apple’s Core Competency

The core competency of apple is determined with its ‘making the technology easy to use’. PC and software development are the two areas the company stands tall amongst the rest. Many times it has come in direct conflict with the other big name in the industry, Microsoft, but that is part of the business rivalry and both companies seem to take that into their stride while marching ahead, writing success stories. For that very reason the new Apple iPhone has been works perfectly fine with windows and other related features. iPhone is the latest addition in the digital communication family for a phone, music player, video player, internet device, and camera all in one.

References:

Apple (2007). Available online at http://www.apple.com/
Kotler, Philip (1974), Marketing Management, 2nd Ed., Prentice Hall, NY.
Mele, Cristina and Colurci, Maria (2006), ‘The evolving path of TQM: towards business excellence and stakeholder value’, International Journal of Quality & Reliability Management Volume 23 Number 5
Porter, M. (1985). Competitive Advantage: Creating and Sustaining Superior Performance. Free Press, New York.
Yoffie, David B. and Slind, Michael (2007). Apple Computer-2006. Harvard Business School, May 30, 2007.

Introduction

In this project I am going to describe the Strategic and Marketing Plan of Apple Inc, Which is the biggest consumer electronics provider in the world. It provides wide range of consumer electronics in the market like MAC computers, IPOD, I Phone, LAPTOP, IPAD. It has about 49,400 employs and over 240 Retails Store all around the world wide out of it 218 are in US and 24 in UK rest in other countries.

I personally think that before studying the strategy of any organization we need to understand the basic of Strategic Management like What Strategic Management is?

What is Strategic Management?

Strategic Management is nothing else but plans defined by the management of an organization to achieve a long term goals which are predefined and monitored towards reaching the organization’s goal. The steps that are taken till now are being monitored to make sure that they have been carried out in the most efficient manner possible to achieve organizational predefined goal as described in the mission statement which directs the strategic management process.

Definition:

“The on-going process of formulating, implementing and controlling broad plans guide the organizational in achieving the strategic goods given to its internal and external environment”

This is an ongoing process which keeps changing according to the circumstances and requirements of the internal and external environments but it keeps moving towards to achieve its predefined organizational goal.

Strategic Management is comprised of its three main processes which manager of an organization has been familiar with. These Processes are as given below.

Strategy Formulation
Strategy Implementation
Strategy Evaluation

Strategy Formulation:

Strategy formulation means a strategy formulate to execute the business activities. Strategy formulation Includes developing:-

Vision and Mission (The target of the business)
Strength and weakness (Strong points of business and also weaknesses)
Opportunities and threats (These are related with external environment or the business)

Strategy formulation is also concerned about setting long term goals and objectives, generating alternative strategies to achieve that long term goals and choosing particular strategy to pursue.

The considerations for the best strategy formulation should be as follows:

Allocation of resources
Business to enter or retain
Business to divest or liquidate
Joint ventures or mergers
Whether to expand or not
Moving into foreign markets
Trying to avoid take over

Strategy Implementation:

Strategy implementation requires a firm to establish annual objectives, devise policies, motivating employees and allocate resources so that formulated strategies can be executed. Strategy implementation includes developing strategy supportive culture, creating an effective organizational structure, redirecting marketing efforts, preparing budgets, developing and utilizing information system and linking employee compensation to organizational performance.

Strategy implementation is often called the action stage of strategic management. Implementing means mobilizing employees and managers in order to put formulated strategies into action. It is often considered to be most difficult stage of strategic management. It requires personal discipline, commitment and sacrifice. Strategy formulated but not implemented serve no useful purpose.

Strategy evaluation:

Strategy evaluation is the final stage in the strategic management process. Management desperately needs to know when particular strategies are not working well; strategy evaluation is the primary means for obtaining this information. All strategies are subject to future modification because external and internal forces are constantly changing.

History Apple Inc:

Apple Inc formerly known as Apple Computer Inc which provides corporate Server, MAC OS Systems and Operating System. Apples core product lines are the iPhone, iPod and Macintosh System. Steve Jobs and Steve Wozaniak, The founder of Apple has created the Apple Computer on 1st April 1976 and integrated in the company on 3rd January 1977, in Cupertino California. It has driven the Computer manufacturing market for more than two decades. Mr. Steve Jobs who was expelled in 1985 was return as CEO of the APPLE Inc in 1996 with new Ideas and corporate philosophy. With introduction of successful IPod Player in to 2001 Apple has again proved itself as a Market leader in consumer electronics. Latest era of extraordinary success of the company is in iOS based Apple products like I Phone, IPod slim, I Pad and now I Pad 2. Now a day’s Apple is a biggest technology corporation in the planet with the profits of more than $65 billion. It has about 49,400 employs all over the world. Fortune Magazine most Admired company in United State in 2008 and in the world in 2008, 2009 and 2010.

Apple has over 240 Store all over the world and the bifurcation of these store in different countries are as below.

Vision Statement of Apple:

“Man is the creator of change in this world. As such he should be above systems and structures, and not subordinate to them.”

Explanation of Vision Statement:

Apple lives this vision through the technologies it develops for consumers and corporations. It strives to make its customers masters of the products they have bought. Apple doesn’t simply make a statement. It lives it by ensuring that its employees understand the vision and strive to reach it. It has put systems in place to enable smooth customer interaction. It has put objectives in place to continuously move forward; implemented strategies to fulfil these objectives; and ensured that the right marketing, financial and operational structures are in place to apply the strategies.

Mission Statement of Apple:

“Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings.”

http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=aapl&script=1800&layout=7#corpinfo2

SWOT Analysis of Apple Inc:

Although participation in such activities may add value, they may not be a source of competitive advantage. Ultimately, the value, rarity, inimitability, and/or organization (VRIO) of an activity or resource determine its sustainability as a source of competitive advantage. Within this context, we can identify a firm’s strengths, weaknesses, opportunities, and threats (SWOT).

In SWOT analysis Strength and Weaknesses are depends on Internal factors and Opportunities and Threats Depends on External Factors of and Organization. SWOT analysis is useful in decision making about the organization going for any new or existing project.

Apple SWOT Analysis

Strength:
iTunes Music Store is a excellent source of revenue, especially with the iPod and the accessibility on Windows platform.
Apple Computer are expert in Developing own software and hardware.
Apple’s niche audience provides the company with some lagging from the direct price competition.
Giving a face-lift to desktop and notebook lines.
technology can be used to improve product awareness and sales.
Low debt—more maneuverable.
Apple Computers have good brand loyalty.
Partnership with Intel Computers in 2006 – Present.
Strong Research & Development Department.
Weaknesses:
Weak relationship with Intel and Microsoft.
Weak presence in business arena.
The product life cycle of Apple products are very small for that reasons revenues are more depend on launch of new products and services.
Weak presence in markets other than education and publishing.
Slow turn around on high demand products.
Apples market share is far behind from major competitor Microsoft.
In past the relationship between Steve jobs and employee were not good which result in reputation loss.
Opportunities:
Increase in worms and viruses on PCs so the antivirus solution can be developed by Apple
Large population (Gen X&Y) which are extremely individualistic and name brand conscious.
The ties of apple other companies are weak, Apple can develop good relationship for joint ventures
Downloadable music and MP3 players are highly marketable.
The online sales of computer are increasing with rapid speed.
The laptop market growth is high; Apple Computers should focus to develop new models to cater the need of customers.
Threats:
Companies not seeing Apple as compatible with their software.
Apple facing strong competition from Dell, HP, Sony and Toshiba in laptop segment.
Downloading free music from other online source without paying cost is common it may impact the iTunes sales.
Apple software, Cell phone and hardware are expensive as compared to other competitors such as Dell.
The long lasting recession may impact the sales of the company due to higher prices of the products and services
Microsoft launched Microsoft Vista, Windows 7 which is gaining market share.
The switching in technology is very fast

BCG Model:

Boston Cusnsulting Group (BCG) model is a technique developed by BRUCE HENDERSON of the Boston Cunsulting Group in early 1970’s. According to this technique businesses or products are classified as low or high performers depending upon their market growth rate and relative market share. It is very useful tool to identify the product line of an organization.

BCG model classified in four main.

1.) Star 2.) Cash Cow 3.) Question Mark 4.) Dog

RECOMMENDATIONS:

FOR COMPANY:

Lowering the cost of products and maintaining the same quality standards

Can form joint – ventures
Knowledge Management

More number of retail stores for easy access
Continuous innovation to expand

FOR OTHERS:

Does not compromise on price for quality

Choose the products based on individual needs

Be unique and different

CONCLUSION

I feel that Apple must focus on several key aspects to continue to grow and succeed. They must continue a stable commitment to licensing, push for economies of scope between media and computers, and become a learning organization.

Apple apparently made a commitment to licensing. Although it should continue, Apple may want to consider other forms of strategic alliances. An equity strategic alliance may offer Apple the opportunity to obtain additional competencies. An effective way for a company like Apple to accomplish this would be in the form of a joint venture.

Apple should continue pushing the new line of media-centric products. Meanwhile, Apple should not lose focus on its computers. Macintosh computers were 39% of Apple’s sales in 2005. (Burrows)This very innovative company exploits its second-mover position. In the future, they will need to continue innovating to expand the boundaries of both media and computers

Introduction

The invention named Microsoft is found by a Harvard College Student named Bills Gates. The legender was born in a successful business family on October 28, 1955, William Henry Gates iii was his father and they were settled at Washington. Microsoft Windows Operating system was initially just an additional optional to the MS-DOS operating system.

Microsoft Corporation is a big name in the software companies. We are going to discuss some of the financial ratios with the same company for the Fiscal year 2010. The operating system of windows is one of the highly favourable systems for the users who are using personal use of computers. Microsoft Corporation is also making software for the different other applicability like Microsoft Office, Windows Media Player and Internet explorer which are generally given with the operating system itself or are solely sellable as well. That is not the end, along with that; the company is the manufacture and seller of mice, keyboards, and many other things.

As per one news article, Microsoft Corp. revenue of $16.20 billion for the Sept. 30, 2010, a 25% hike from the similar period of the previous year. Operating income, net income and diluted earnings per share for the quarter were $7.12 billion, $5.41 billion and $0.62 per share, which represented increases of 59%, 51% and 55%, parallely, when matched with the previous year.

The previous data showed the difference of $1.47 billion of revenue, because of the effect of $ 0.12 diluted earnings per share, which was because of Windows 7 upgrade Option program and the sale of Windows 7 to OEM s and retailers before that available generally in the year 2009.

In 2010, Office 2010 is going well with the growth in revenue of 15% in first year in the market.

Microsoft is looking ahead with the growth for further more with Xbox 360 with the increasing selling in the first quarter.

Financial Analysis

Any firm, when starts the business, their intention is clear to make profit. Here through different ratio, we can analyse that the company is going in which direction in the future. There are different applications of the ratios for any organisation and their uses are different for the firm’s owners, employees and the public.

Ratios can be classified in given main areas.

1. Liquidity based Ratio
2. Asset management ratio
3. Gearing/Financial stability ratio
4. Cash Efficiency Ratio

We are going to discuss some of them below with reference to Microsoft Corporation Financial Fiscal year data for September 2010.

Profitability Ratio

This ratio shows company’s transfer capacity from product to its sell. It gives an overall efficiency of the company for generating the shareholders returns, so provides useful information to the company. Let us calculate formula for the same.

Gross Profit Margin

This is a type of profitability ratio which represents the cost of goods sold at a sales percentage. The ratio shows the control of the company over its cost of its inventory and operational costs. If the gross profit margin is bigger, it’s better for the company.

The formula for Gross Profit/Net Sales

For this example, its, 24098/62484 = 0.39%

Net Profit Margin

This ratio is used more frequently when a simple ratio analysis is used. It shows the companies income after paid off all the expenses.

The calculation for net profit margin is: Net Income/Net Sales

For this example, its, 18760/62484 = 3.00%

Return on Equity

This ratio seems to be the main one for the all financial ratios for the investors of the company. It provides the return on the investors money invested in the company. Thus can be decisive for the investors whether to invest or not.

The calculation for the company is: Net Income/Stockholder’s Equity

18760/46175 = 0.41%

Current Ratio

This ratio shows the balance changes that the net working capital ratio will not be able to show with reference to the assets against the current liabilities.

The formula for the same is 

Current Assets/Current Liabilities

55676/26147 = 2.13%

It discloses the business ability of the company, but it should be supported with the other ratios as below.

Quick Ratio (Acid Test Ratio)

This ratio is very useful for the company as it shows that how quick company can convert their current assets into the cash. This shows the current company’s sufficiency. This ratio is pre minded by considering all assets are equal liquidity. And the account receivables are more should be considered as liquidity than the stock. The sales can be considered when amount is received against the credits.

Cash + Marketable Securities + Accounts Receivable (net) = Quick Ratio

Current Liabilities

5505+62+13014/26147 = 0.71%

Efficiency Ratios

Efficiency ratio shows the efficiency of the company to change their inventory, assets, receivables, sales or account payables. It helps company to find out the meetigants for short term and long term obligations. As it takes into account the principle that we can pay you when we are paid.

First efficiency ratio

The ratio includes the days sales outstanding calculation, which shows the cash and receivables are going to be occurred when. This is considered the test of the company’s efficiency, as it shows the conversion capacity of the company from receivables to cash.

The calculation takes current receivables, total credit sales period and the number of day’s period into consideration for the formula.

The formula for the same is

Days outstanding = Current Receivables/Total Credit Sales X No. of Day =13014/24098*60 = 32.40 days

Solvency Ratio

Solvency ratio refers to company’s capability to meet their long term obligations. It gives an idea for the investor whether to go for the investment in the company or not.

The formula for this is

Solvency Ratio = (After Tax Profits + Depreciation)/ (long term liabilities + Short term liabilities) =18760+2673/13791+9564 =9.18%

Higher the ratio of solvency, higher company’s capacity to meet its long term obligations.

Gearing Ratio

Gearing ratio compares the certain owner’s equity to borrowed funds, as it calculates leverage and shows the extent to which a company is funded with its own fund against creditors’. Higher the leverage ratio, more risk to the company.

debt-to-equity ratio shows company’s equity against debt which shows company’s risk.

The formula is : (total debt / total equity)

=39938/46175= 0.85%

The company has more equity than debt that means company is in the good position.

How company can improve?

Company is running so smoothly on the basis of financial statement we can say that company is creating a good amount of cash than it is needed to meet its debtors. The major problem since 2009 company is facing is the credit periods instability, it run through 50 to 200, for some of the debtors. So if it is in the control its better for the company.

One other problem with the company is in the recession time, it has been heard first time from the company in its history that it layoff its staff. Because of recession, there was a drop of 0.5% sale of the company in last quarter and hence fore company decided that. So for re-improve the sale they might need some more funding as its more laptops are used now a days, they need to initiate some more upgraded technique than windows 7, of course it will capture a good market as new windows 7 is upcoming, but company need to take into consideration the computer users converting them to laptop users.

Conclusion

As from above case, we can conclude that the ratio analysis is the tool for the company to measure its financial conditions against market and the competitors. It is always useful for the company to look at the change of the every small change as it’s a company which is changing probably every day the market updating and the situations. The Microsoft Corporation is the pioneer and it has achieved that stage from where to sustain and maintain that level, it need a good effort in the information technology to be at the same stage. As the competition is at the ear that it cannot be underestimated the potential of any new comer as the competitors like Intel and others are coming up with something new every day.

Ratio analysis is handful tool for the company from company, investors and employee’s point of view as it gives the summary of the company’s operating ability, liquidity and profitability. The company like this has a niche area to check as it’s a well established company and do not need to check for a broad idea. But for the new coming firms, it is very much essential to keep a strong control over its ratios as it is the best the way to establish good reputation and development in the market in such a competitive era.

References:

1. http://www.microsoft.com/investor/reports/ar10/10k_fr_bal.html
2. http://mbadox.com/wp-content/uploads/2010/09/fin_rat.pdf
3. Managerial Economics And Financial Analysis By S. A. Siddiqu
4. Financial Ratio Analysis: A Handy Guidebook Charles K. Vandyck
5. Fundamentals of financial management By Eugene F. Brigham, Joel F. Houston
6. http://www.investopedia.com/terms/g/gearingratio.asp
7. http://www.scribd.com/doc/17318817/Financial-Ratio-Analysis-Formulas
8. http://basiccollegeaccounting.com/table-summary-of-financial-accounting-ratio-analysis/
9. http://www.microsoft.com/investor/EarningsAndFinancials/Earnings/PressReleaseAndWebcast/FY11/Q1/default.aspx
10. http://www.google.co.uk/images?hl=en&biw=1920&bih=979&gbv=2&tbs=isch%3A1&sa=1&q=financial+ratio+analysis+images&aq=f&aqi=&aql=&oq=

The Microsoft Information Technology (Microsoft IT) group needed an antivirus solution to adequately address the growing threat from the many types of Internet-borne malicious software, also known as malware. When Microsoft IT assessed its requirements for an enterprise anti-malware solution, the group realized the challenge of the ever-changing landscape of client security.

Centralized management, rapid reporting, and a positive user experience for clients were some features that Microsoft IT sought in a client security solution. A product group within Microsoft consulted with the security staff of Microsoft IT for the initial development of a new anti-malware solution, Microsoft® Forefront™ Client Security. As the new product emerged, Microsoft IT volunteered to test it, first in a lab environment, and then in an enterprise production environment. Microsoft IT developed and tested a server management group for administering the new system. Testing revealed that the server choices more than sufficed, but they required more advanced storage. For this reason, the server management group attached to a storage area network (SAN) for use by data collection and reporting services. Lab testing was successful, so Microsoft IT rolled out the solution into a production environment in a limited-participant pilot.

The initial pilot was successful, and soon 10,000 participants were using the product. The ability to quickly see reports on the security status of all participating clients quickly facilitated executive queries. Moreover, a centralized console simplified client management. If a report on the console alerted Microsoft IT security staff to a misconfiguration that exposed a vulnerability or a possible malware infection, the team could easily resolve the issue. The team could quickly move through console reports and remotely correct the misconfiguration. Or, the team could initiate an anti-malware scan on the client computer without involving the end user. Microsoft IT worked with the Forefront Client Security product development team to expand the pilot to 50,000 worldwide users.

Microsoft IT also integrated the management server group services used by Forefront Client Security into the existing network infrastructure wherever possible. This white paper shares architecture, design, and deployment considerations. This paper briefly discusses the advantages of advanced Forefront Client Security features. The paper also describes how Microsoft implemented the Forefront Client Security solution in its environment. This paper assumes that readers are technical decision makers and are already familiar with the following:

• Anti-malware security technologies Microsoft server products such as Microsoft SQL Server® 2005 database software, Microsoft Operations Manager 2005, and Microsoft Systems Management Server (SMS) 2003
• Windows Server® technologies such as Windows Server Update Services (WSUS) IT groups can employ many of the principles and techniques described in this paper to manage risk in their organizations.

Microsoft Computer Desktop Software Training Request for Proposals General Information Prestige Worldwide is preparing to upgrade its computer desktop operating systems and productivity software applications from Windows Vista to Windows 7 and Microsoft Office Professional 2010. Part of the implementation plan is to provide training for all software applications within Windows 7 and Microsoft Office Professional 2010 to all thirty employees.

Summary Currently, Prestige Worldwide, Information Technology Division is planning to upgrade our company’s computer software to Windows 7 and Microsoft Office Professional 2010. Making training available for all thirty employees will be part of the software upgrade plan. Prestige Worldwide desires to enter into a contracted agreement with a software training vendor for the training needs of this software upgrade project, as well as for other “as needed” software application training needs.

Recent surveys conducted by the IT Division on training topics, showed in addition to traditional classroom instruction, there was a high percent of company employees who prefer to receive their training via online methods. Survey revealed that those who preferred classroom training, preferred to receive training “on-site. ” As result of company employee surveys, we will be looking toward facilitating these training needs within our organization. Prestige Worldwide will be soliciting vendors that can facilitate both classroom instruction and online web based training.

We may select multiple vendors to satisfy our training requirement providing both classroom instruction, and online web-based training. Prestige Worldwide- Information Technology Division (IT) will award the contracted services to the vendor(s) that provide the best value for the desired methods to meet our company training needs. Prestige Worldwide will provide on-site classroom facilities at its San Diego Ca office location, which can accommodate training from one to a group of 30 employees.

Purpose

As part of the operating system up date to the Windows 7 and Microsoft Office 2010, upgrade. Prestige Worldwide desires to make available software training to all its company employees to assimilate to the new software functions and to maintain level of proficiency, as well as to learn all the new capabilities and features that will increase the skill set of the user of Windows 7 and Microsoft Office Professional 2010.

Prestige Worldwide is looking for training that will accomplish this objective. Among criteria and specifications are, but not limited to

• Training levels: Beginning, Intermediate, and Advance for 30 employees.
• Provide assessment tool for proper course level.
• Ability to complete all required training for 30 employees within the allotted 3-week timeframe.
• Core desktop software training for Microsoft Office 2010, Word, Excel, Outlook, PowerPoint, Access and Publisher
• Microsoft Certified Trainers
• Onsite Instructor-led training Fully hosted, online web-based training
• Customized training
• Provide course materials, training aids, and related training software.

Response and Performance Expectations Executive Summary

Provide a brief summary describing training, offerings, and methods. Description of Organization and Qualifications Provide a description of the business, history, and organizational structure of the organization. Experience on similar training engagements Summaries or brief descriptions of minimum of three training engagements that are similar to the requirements of this training. References must be for services provides within the past two years. Include the name of the client and a point of contact, date of training provided. Post-Training Support Detail any post-training support and resources that are available once training is completed. Pricing Provide detailed pricing of all cost associated for the desired training. Please Include any additional cost that may be incurred. To include

• Assessment testing
• Training materials
• Training computer setup
• Group classes onsite
• Individual training
• Online, web-based training
• Vendor Submittals Response to the RFP must include the following information
• Name, address and telephone number of your company
• List of individuals and/or vendors comprising the team for this project and what specific role each role will take in completing the work.
• Provide a detailed summary of your experience in similar training engagements.
• Include names, address, and phone numbers of clients.
• Vendors may include the following supplemental material
• You may provide any material not specifically required as supplemental information.
• Additional material may include the following.
• Additional information, and/or descriptions of similar training engagements you have completed.
• Additional promotional material describing your firm and its services.

Additional customer references. Selection Criteria Contract award will be based on pricing, and performance. The following criteria shall be used to evaluate the proposals.

• The proven ability of the training methods to meet IT’s objectives and experience in similar training engagements.
• Understanding of the roject and responsiveness to the RFP
• Staff assigned

The History

• Launched in November 2002, just three month the shipment reach 72,000 units. These developments make many of industry observer surprise because they forecast the market not ready to accept tablet pc until 21st century.

• A half market sales in U. S and target to get optimist market in Asia As long they support and recognize many of language, they optimist for getting the market.

• Analysis point: will take 6-12 month for the market adoption for increasing the market. The evolution of digital portable device Developing was start in 1980s. The technology is undeveloped and relative new in this period.

• Several companies begin to develop: IBM, Dell, Compaq, Fujitsu launch portable personal computing device the form in notebook and personal data assistant (PDA). Exhibit 1. Explain us the revolution from the big mainframe computer until change to PDA or a pocket PC you can carried everywhere.

• The first generation for portable device, there’s portable in nature but for the function below from traditional desktop PCs was provide.

And in this time there no feature of speech and hand recognition.

• Stylus was developing to change the function of mouse and keyboard.

• In 1990-1991 Microsoft Pen Service 1. 0 OS and the respond of the market is not good. This is also happening in 1995 when Microsoft trying to fix the bugs by launching Pen Windows 2. 0 OS.

• In 1998 Microsoft release windows CE 2. 0 with handwriting recognition. This is only 60% the accuracy to recognize the handwriting.

• In August 1999 Microsoft begin on working at the device which is called a tabled pc. This combines a desktop computer, mobile computer, and pen-based system, which is the notebook without a keyboard and mouse.

• In 2000 Microsoft release Windows CE 3. 0 with handwriting recognizing for their PDA. Microsoft builds the tablet pc prototype

• The prototype build not have feature that were present in notebook such as: external batteries, an external hard disk, and an external modem. This mean reducing the weight, as well as, the width of a notebook/computer.

• Six vendors hired by Microsoft to build the prototype:

1. Flextronics for the design aspect.
2. FinePoint Innovation for RF digitizer.
3. Phoenix for device enabling and management software product.
4. Transmeta for microprocessor.
5. Silicon Motion for video controller.
6. Silver Cloud Manufacturing for computer base filters and lenses. Positioning and promoting the tablet PC

• In June 2000 Microsoft begin to demonstrate the prototype of PC tablet. The product did not receive much coverage because of a minor part of the presentation.

• In November 2000 the second demonstrate at the Comdex show with the presentation from Gates.

The analysis and the industry observer were not impressed because they think gates only inform about the Brand image and if they want grab a market they must convince the market that the tablet pc function better than a notebook computer.

• In 2001 Microsoft held their promotion in WinHEC to fix their strategy, update OEM developer and technology, and the roadmaps that the company would adopt for future computing product. The handwriting recognizing not success so Microsoft change plans to ink management feature. Which is keep the handwriting as original and not converting them to computer font). The target market for the tablet pc was the corporate users which is describe by Microsoft as ‘knowledge workers with productivity focus’.

• Tablet pc benefit than laptop computer: more light and easy to carried also the batteries power more life time.

• After have a postpone for fix the problem, in November 2001 Microsoft do a promotional demonstration on tablet pc at the Comdex show. They introduce the tablet pc feature such as long battery life, sophisticated handwriting recognition, ink management, high speed microprocessor, high resolution display, and build wireless capability.

At this time the analysis and industry observer getting convince to their presentation but still have the criticism such as if the price is same or more that notebook price they will not lure to the market because they do not really need to change their notebook with some think not really different but with the high price. Tablet make a modest star

• On November 7, 2002 Microsoft launched tablet pc to the market at the same time the OEM partners to release their respective tablet PCs.

• There’s more than 20 vendor hardware and software partnered with Microsoft to support the tablet pc. The firm expected the sale will be 425,000 units in 2003, but their have wrong expectation. Nearly 592,000 tablet PCs were sold around the world for the year ending 2002. What next for the tablets?

• Analysis observed that although demand for the tablet PC was high in targeted niche area, this is because the two main of reason: the price is higher than laptop pc and they suffered from a lack of mainstream application.

• To solve the problem Microsoft introduce a new tablet pc with lower of price.

• They develop Microsoft office for tablet pc

• The company partnered with more than 50 software and hardware vendor to support tablet pc.

An Internet Security Acceleration (ISA) 2006 Server acts as both an enterprise firewall and a web proxy/cache server. It has the capability to screen all packets, circuits and traffic passing through most applications either within or outside the network. The web cache inside ISA Server 2006 can store web content in a bid to reduce traffic on the network and provide faster access to web pages and other web applications that are frequently accessed by users on the network.

ISA Server 2006 also has the capability to schedule the download of web page updates for specific times of the day that record less traffic to ensure an optimal and less frustrating use of the internet. ISA Server 2006 has in-built features that allow administrators come up with policies for regulating usage of network resources based on criteria such as applications, groups, destinations, schedules and content type criteria. It can also work with Windows 2000 and older operating systems.

The Windows Kerberos Security is an additional facility that can be utilized with ISA and it comes with a software development kit (SDK). ISA Server 2006 is available in two editions: the standard edition and the enterprise edition. The standard edition supports up to four processors at a time while the enterprise edition is more suitable for large scale deployments, multi-level policy implementations, server array support and computers that have more than four processors. ISA server licenses are usually given out based on the number of users present in the organization.

ISA Server 2006 may be further described as a firewall security product that was designed to publish web server and other server systems through the use of firewalls, VPN endpoint, and can also be used to provide internet access to clients in a networking environment. ISA Server 2006, according to the Microsoft definition, is the integrated edge security gateway that helps to protect any environment that deploys information technology infrastructure. It shields the environment from threats from external networks, especially the internet, and also provides users with access to applications and data in a secure fashion. Turner construction mission statement

ISA Server 2006 gives further value to the work of IT Managers, network administrators and information security professionals who want to manage security and reduce the cost of performance of network operations (Microsoft, 2009). Core functions of ISA Server 2006 ISA Server 2006 has the ability to streamline the provision of security for applications accessed over the internet. They can be used to connect corporate networks in a robust and secure manner; this helps to reduce network costs by leveraging on existing network infrastructure (Microsoft, 2009).

They can also be used as a wall of defense against attacks to the network. Organizations are faced with so many advanced and sophisticated attacks on their computer systems and it is becoming increasingly important to protect all corporate resources and simultaneously provide business functions. ISA Server can be effectively deployed in small to medium-sized organizations with varying number of sites and networking needs. ISA can also protect clients and ensure that an organization’s resources are available to all employees even in far locations of the world (Microsoft, 2009).

Features of ISA Server 2006 ISA Servers provides three types of firewall configurations and these can be operated in different modes. These modes are packet filtering, stateful filtering, and application layer filtering. It has features for compressing and caching data that makes it easy to accomplish remote connection across branch offices (Berghel, 2002). The in-built HTTP Policy of ISA Server also makes it easy to prevent connection attempts to the Microsoft Windows Operating system, regardless of the file extension used in attempting this.

It can also reduce bandwidth utilization through web caching (Portcullis Systems, 2009). New concepts of ISA Server 2006 ISA Server 2006 came on board with new concepts and some of these new features are discussed here. Arrays Arrays refer to a collection of computers that are located together within an area, for example, around a department or office. They can be domain arrays that use active directory or they can be independent arrays that allow the storage of information in a local configuration database (Serwin, 2004). Rules

Rules are what the system administrators use to set up specific protocols to govern contents, sites and IP packet filters that pass through a network. An array policy can be applied to a specific array. Enterprise policies contain the same type of rules applied to array policies but they are usually applied to many arrays at the same time (Serwin, 2004). Firewall The firewall is used to enhance stateful packet inspection and constitutes a medium of ensuring enhanced security by analyzing data packets at the protocol level and the connectivity level.

Policy-based administration is another component of the server firewall. The ISA server allows administrators to manage and develop policy rules. Policies are a set of rules through which users, protocols and groups of users operate. A specific type of policy can apply to a single array or the entire enterprise (Serwin, 2004). Virtual Private Network Support ISA is an easy way of creating VPN-based networks. There are numerous wizards in the ISA application that can help to install security options (Bell, 1993). Intrusion Detection System Support

ISA Server comes with an intrusion detection system. It has in-built features that help to prevent attacks such as Ping of Death, UDP bombs, POP Buffer Overflow, Scan attack and so on. Other notable components of the ISA Server include the Web Cache Reverse and Scheduled caching programs that can help to improve the performance of the system reporting features. ISA has many report-generating features that allow for improved management of the ISA Server. Gatekeeper H. 323 component of the ISA Server allows the supervision and management of IP telephony calls.

ISA Server 2006 delivers secure access to client machines on the network without any need to configure clients separately (Serwin, 2004). Risks faced by IT Networks There are numerous threats that networks in most organizations face today. Some of them may come in the form of Denial of Service attacks, worms, viruses, information compromise and so on. For any company that intends to do business online, it is important to combat these increasing threats which have the capacity to multiply on a daily basis (Portcullis Systems, 2009). Misconceptions about ISA

Computer systems are being constantly exploited all over the world. ISA Server 2006 is becoming increasingly relevant to organizations that are beginning to see that the traditional firewalls and related technologies aren’t able to combat the attacks they are subjected to effectively. Most of the controversy associated with ISA stems from the misconception that most people have about the role of ISAs. Some people think that ISA is only a proxy server. This is incorrect. It can act as a firewall, VPN, web-caching proxy and application reverse-proxy solution.

Features such as intrusion detection, content filtering and application filters all help to extend the capabilities of the ISA Server in fulfilling the dynamic needs of the IT environment (Berghel, 2002). To clear up the rampant misconceptions about ISA Server 2006 and its capabilities, it’s important to make an intelligent comparison between it and other prominent solutions in the market today. ISA Server is unique and different because it comprises features such as Virtual Private Network (VPN), application layer firewall, web cache services and numerous security features all rolled into a single package.

There is no other product that contains such a robust combination of security solutions in one package. The solution also integrates back-end infrastructure such as Windows/IIS Exchange Server, Windows SharePoint services and other compatible products (Microsoft, 2009). There are many features that make the solution very attractive to most organizations and some of them include the presence of wizards for publishing server resources, authentication through forms, and customizable security solutions for Exchange and Windows SharePoint services.

In conclusion, ISA Server provides an interface for Windows servers, clients, application infrastructure and other data resources to connect unlike other firewalls. ISA Server has been customized to protect Microsoft applications. Applications like Microsoft Outlook Web Access can be optimally utilized by using its features such as remote access. ISA Server 2006 is easy to manage and deploy at target locations and can help to achieve huge cost savings in time, money and resources. It can be customized to work with other security applications such as intrusion detection software, antivirus solutions and the different types of firewall.

It can also complement existing solutions by providing an additional application-level protection against network attacks (Microsoft, 2009). A variant of IAS Server 2006 is the hardware-based solution. Microsoft recently joined the league of OEMs to bring security appliances and gadgets into the market. The solution comprises a version of Windows Server 2003 and hardware optimized for effective use. This customized hardware is best used when the ISA Server is needed specifically for running ISA Server 2006.

Misconceptions about ISA are that it functions only as a firewall and was introduced to replace other firewall solutions within the network. ISA Server 2006 is much more robust than most organizations think. The usual notion in most organizations is that hardware firewalls are more secure. This is not altogether true. Application layer firewalls like ISA 2006 can be easily customized, are powerful and cost-effective for organizations of varying sizes. ISA for example, can be used to connect remote locations to one another without the need of deploying expensive hardware like routers and the like.

ISA security is not restricted to only when a person is connecting to the internet from the inside but also works effectively when a user is connecting to the internal network through the virtual private network. In addition to being a fully functional firewall solution, ISA Server contains a host of other security and productivity features (Microsoft, 2009). History of Hardware and Software firewalls Introduction to Firewalls Firewalls can be described as layers of security in a network that protect the network from threats and other malicious attacks from outside.

There are two main types of firewall and these are the hardware firewall and the software firewall. The hardware firewall is an impenetrable unit of hardware that has a port through which configurations can be made to allow access into the network or prevent access into the network, depending on the nature of the traffic. An example of a hardware firewall is the Cisco PIX Firewall which is configured with the use of access lists and Cisco IOS. Software firewalls on the other hand, are installed on the systems that need protection.

They can perform the same function as the hardware firewalls but can easily be compromised. Examples are Windows Defender and Vista Firewall. They are able to monitor the programs installed on any particular machine and the user can select what program should run or not. A firewall can be described as a software program that is used to control and monitor the transmissions, data influx and information exchange between the computers in an organization’s internal network and the internet. Firewalls are usually installed at the edge or entrance to the network to prevent inappropriate access to the resources of the network.

The firewall ensures that only legitimate and harmless data is exchanged and that the security policies of the organization are strictly adhered to. A firewall can be implemented both as hardware and as software. It can also exist as a combination of the two. Firewalls can help to prevent hackers from entering a system and gaining access to confidential information. They are more restrictive to users from the outside than those from the inside. Some firewalls also contain features that allow auditing, logging and trailing of user actions.

It provides information to the administrator on what type and volume of traffic has passed through the network at any particular time. Michael Gregg, an expert in security observes that the National Institute of Standards and Technology (NIST) categorize firewalls into the following categories: Dynamic, Kernel, Packet filters, Stateful Inspection, and proxies (Al-Tawil ; Al-Kaltham, 1999). These categories are however, not established because most firewalls possess attributes that are characteristic of one or more of the following groups outlined above.

Another broader classification by expert Chris Partsenidis breaks down the types of firewalls into two broad categories. These are Network layer firewalls and application layer firewalls. Network layer firewalls operate by examining the source address, destination address and the port numbers through which traffic or data packets pass. A router is an example of a network layer firewall. Modern network layer firewalls can maintain information about the state of the connections that pass through them at each particular point in time.

They are able to accept traffic through them. This means that data packets that flow through these routers must have been assigned a valid IP address block or a private internet address block. These types of firewalls are fast and transparent to their users during their deployment and utilization. Application layer firewalls may be described as host systems that have proxy servers installed on them. They do not permit the direct exchange of traffic between networks; they perform logging of events and general traffic monitoring.

Since they come in the form of software, they can be used effectively for developing access control lists and logging. They can also be used as network address translators. They provide network security with a more granular approach. The Development of Firewalls In the past, users were not always aware of the presence of application layer firewalls and therefore required some training. Today, modern application layer firewalls are transparent. Application layer firewalls are usually a more conservative security model to deploy and are better for organizations that require detailed audit reports.

The current trend is the production of firewalls that have characteristics of both network layer and application layer firewalls. New products are more likely to be centered on packet screening, logging of details and checking data that pass through them. Proxy firewalls are another classification of firewalls that offers comprehensive security to networks. Organizations that deploy them however have to sacrifice some speed and functionality because they impose restrictions on the applications that can be supported by the network.

Unlike some other types of firewall that just block access to certain data packets flowing through the network, traffic does not flow through a proxy. The proxy serves more as an intermediary device that initiates a new connection on behalf of any request that flows through the network. This method prevents direct communication between two systems on both sides of the firewall and makes it harder for the malicious attackers to identify where exactly a particular network is located because data packets are not received directly by the target system.

Proxy firewalls can also offer protocol analysis security. They have the capability of looking at the data packets and the network protocol used for communicating. This makes them more effective than other security solutions that merely focus on the packet header information. Another category of firewalls known as unified threat management (UTM) has emerged. This category has various security promises and is useful for all kinds and sizes of businesses.

UTMs are usually capable of performing intrusion detection, content filtering and spam filtering altogether. They can combat different levels of malicious threats all over the network and are usually designed to offer protection from next-generation application layer threats. They can also conduct central management through a visual console without affecting the overall network performance. UTMs are convenient, easily deployed and cost-effective. Some of the leading UTMs in the market include NetScreen, Symantec, WatchGuard Technologies amongst others