Beginning in 2001, Microsoft made an important commitment when it entered the business applications category with the acquisitions of industry leading ERP solutions and by funding the development of a CRM solution. Today, business applications from Microsoft are a core part of how we are helping companies become People Ready businesses and delivering on our mission to enable people and businesses to realize their full potential. I’m even more bullish about the Microsoft Dynamics business than I was when I approved the original multi-billion dollar acquisitions and development in 2001.

I’m extremely proud of what we’ve accomplished during the last six years—both at Microsoft and across our broad ecosystem of partners. Together, we have built a global business that is delivering breakthrough solutions across customer segments, industries, and geographies. More than 250,000 customers are part of the Microsoft Dynamics community and new customers are joining at a rate that is significantly outpacing overall market growth. As a prospective or existing Microsoft Dynamics customer, whether you select Microsoft Dynamics SL, Microsoft Dynamics NAV, Microsoft Dynamics GP, Microsoft Dynamics AX, or Microsoft Dynamics CRM, you can be absolutely confident that we are committed to preserving your investments today and enhancing them moving forward.

To fulfill this promise, in March, 2005, we announced a product roadmap in which we committed to deliver breakthrough customer value in the form of evolutionary upgrades through two waves of innovation. All Microsoft Dynamics ERP and CRM solutions are included within this roadmap, all lead to the future, and all contribute their unique strengths to our collective journey ahead. We are executing against this roadmap and increasing our R&D efficiency as we apply shared R&D investments across our Microsoft Dynamics product lines.

This March at the Convergence conference, we celebrated the completion of the delivery of Wave 1 innovations through the recent launches of Microsoft Dynamics SL 7.0, Microsoft Dynamics NAV 5.0, and Microsoft Dynamics GP 10.0, and we marked customer successes since the launch of Microsoft Dynamics AX 4.0 and Microsoft Dynamics CRM 3.0 last year. Examples of how we’ve shared R&D across all Microsoft Dynamics products in Wave 1 include portal offerings built on Microsoft Office SharePoint, reporting functions built on Microsoft SQL Server, and the new user interface, which is based on the 2007 Microsoft Office System user experience.

We are now focusing on Wave 2 of the Microsoft Dynamics roadmap, and we are excited about a new generation of innovations we will deliver that will enable your organization to be even more productive and connected. Connecting your people and processes to your unique business community is central to the work we are embarking on in Wave 2. Our R&D teams are committed to enabling this through connections between our software that will help you manage structured processes (i.e. Microsoft Dynamics), unstructured processes (i.e. Microsoft Office), and the exception handling, teamwork, and collaboration that lie in between (i.e. Microsoft SharePoint, Mobility, and Windows Workflow).

In summary, we are more committed today to the Microsoft Dynamics business than ever before. Your investments in Microsoft Dynamics SL, Microsoft Dynamics NAV, Microsoft Dynamics GP, Microsoft Dynamics AX, and Microsoft Dynamics CRM are safe long-term bets, and together with our partner ecosystem, we will deliver even greater value through these exciting products in

Wave 2 of the Microsoft Dynamics roadmap. Thank you for your business and I look forward to continuing our successful partnerships in the future.

Best Regards,