1. technology and computing
2. operating systems
3. windows

Data Integration
Moin Moinuddin
Program Manager
Microsoft Industry Solutions
Architecture Team
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Microsoft Confidential
Agenda

Business Challenges

Connected services Framework

Payments

Q&A
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Microsoft Confidential
Application
Data Integration
Infrastructure
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Microsoft Confidential
Business Challenges
Globalization
Competition
Regulation
Customer
Demands
4
Technology
Change
Business
Results
Microsoft Confidential
Business Consequences
Customer
Demands
Greater
Focus
Competition
Globalization
Regulation
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Greater
Interdependence
Technology
Change
Microsoft Confidential
Connected Systems – The New Application
Connected Systems
Single Application
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Microsoft Platform
Microsoft Platform
Microsoft Confidential
Connected Systems (Realizing Business Imperatives)
Multi-channel
retailing
POS
Customer
Experience
Business
Intelligence
Supply
Chain
Business
Operations
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Enterprise
collaboration
Compliance
Microsoft Confidential
Connected Services Framework
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Microsoft Confidential
Problem definition
Current infrastructure does not have the agility
to keep up with business objectives
 “…
I need to bring 50 new
services to market in next
12-18 months”
On line
merchant
I need to be driving $X00
million in revenue from new
services in the next two
years”
Online Shopping
 “…
Online
merchant
Offer to
purchase
 “…
it costs me $2 million to
launch each service”
 “…It
takes too much time
and energy to bring even a
simple service to life”
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Microsoft Confidential
Voice call + SMS
User
Wireless
Operator
The Solution (Retailer becomes the “Service Aggregator”)
 Requires
ability to
dynamically “connect”
disparate services together
so they collaborate and can
be managed as one
 Now,
as the aggregator:
leverages partner
product/service, but
maintains central position in
value chain
 Participates
Aggregates all
products/services and
shopping
Online
merchant
On line
merchant
 Retailer
Modifying the previous example…
Revenue Share
User’s preferences,
Purchase transaction,
Purchase history
Consistent user behavior
in new revenue
stream
 Better leverage of existing assets
and customer relationship
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Microsoft Confidential
User
Voice call + SMS
Wireless
Operator
Putting It All Together
Value lies in assembling combinations of services across all levels…
Partner
or Public
Services
Store
Services
Back-end
or Corp
Services
Partner
installation
service
Service 2
Location service
Service 1
Point-ofService
Print service
Real time
inventory mgmt
service
Service 3 Scenario
2 Scenario
Service 1Service
Scenario
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Mobile shopping service
Loyalty
Point
Customer
management
service
Returns
processing
service
Store locator
service
Product catalog
service
Customer
returns an using
item at
• buys
Customer
looks up• &product
information
hisChicago
mobile store
devicewhich was purchased in
• Customer
a Dishwasher
requests
installation
Seattle
• Central
product
catalog
service
provides product
information,
in
• POS system
contacts
partner
service
for installation
and Informs
the
•
CMS
requests
the
authorization
from
the
returns
processing service
addition
informs
customer of
when and
who the
will customer
install it where is the nearest store with the
(RPS) management system
product
• POS system
also notifies the inventory
requires
the
the
CMS
• receipt
If customer
it,RPS
then
the order
isbarcode
printed
in
the
appropriate
store
• Prints the
alongorders
with•the
installation
appoint
andfrom
partner
name
•
Once
the
bar
code
info
is
provided
item
return
is processed and receipt
ready for pick up when customer arrives
is printed
Microsoft Confidential
Example Scenario: Wireless Consumer Service
1 Mail image to price check
Retail Price Check Service
alias
Amazon.com
Web Service
2 Web service call to bar code
recognition service
4
2
3 Web service call to
amazon.com
1
4 SMS book price and rating to
user
5 Billing event notification to
Billing
billing system
5
MMS
SMS
1
4
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Microsoft Confidential
Bar code
Recognition
Service
Pricecheck
Service
3
A software product and Service-Oriented Architecture
(SOA) for creation and management of services across
networks and devices
Connects…
• New services to existing
infrastructure
• Services across different
networks and devices
• Individual (leaf) services
into composite services
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Microsoft Confidential
Microsoft Connected Services Framework
New service creation through aggregation
Individual
Services
Service A
Service B
Billing,
etc.
Partner
Service
3rd Party
Service
Partner
Service
3rd Party
Service
Web Service Interface
Service A
New
Aggregated
Service
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Service B
Billing,
etc.
Service Logic
Logic or orchestration to manage interaction
between the individual services
Through Connected Services Framework, this
aggregated service can now be deployed and
managed as a single service
Microsoft Confidential
Quickly build or modify
services
 Dynamically add and remove
services during runtime
 Collaborate in new ways with
partners
 New opportunities to leverage
existing assets
 Maintain primary relationship
with subscribers

Microsoft Connected Services Framework
Consists of…
1.
A server product to manage
common functions of service
control and aggregation
2.
Common sets of interfaces and
software logic for connecting to
back end systems
3.
Web services API for adding
new services
4.
SDK and developer
environment for building new
services
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Microsoft Confidential
Mobile Web Services
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Microsoft Confidential
Scenario
Programmable service ecosystem enabled by a commercial transaction
Network Operator
End user
• Are trust brokers
• Provide authentication
• Provide Billing
• Provide network services
• Integrated experience
• Enabled by Platform delivered
through client apps.
Service Provider (ISV)
• Focus on service delivery
• Outsource billing/authentication
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Microsoft Confidential
Payment Models
Single Payment
Service reserves an amount and
charges user later
Subscription Payment
A regular scheduled payment,
driven by service with support for
varying price
Payment Federation
A service can aggregate payment
for smaller companies, enabling the
customer to pay a single bill
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Microsoft Confidential
Trust Boundary
Payment Today
Merchant must hold data representing the user
and payment details
•May have to make legal assertions (EG
purchasing alcohol)
Bank
•Store sensitive financial details (credit card
information)
•Safeguard personal details against data theft
User must trust the merchant to not misuse
payment details
Client
Online
Merchant
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Microsoft Confidential
Trust Boundary
Single Payment
Client already has Dell identity token
Client attempts to purchase a PC from Dell
Dell doesn’t charge the user until the PC is
shipped and built
MWS
Payment
Dell requests a reserve payment for the PC
The client may interact with the user
requesting authorization to proceed
The client encrypts the payment request using
the client identity
Client
Dell
This payment request is sent to the MWS
Payment Provider
This authenticates the request and verifies the
account holder has sufficient funds
If successful a Payment Token is issued, the
funds are then reserved, guaranteeing
payment
The Payment Token is then signed and
returned to the client.
The client passes the payment token back to
Dell.
Dell verifies the token against the MWS and if
successful completes the order.
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Microsoft Confidential
Trust Boundary
Single Payment continued
Dell builds the PC to the Client’s specifications
and is ready to ship
Dell uses the Reserve Payment Token to
request payment from the MWS (note the
amount may be different to the reserved
amount)
MWS
Payment
The MWS verifies and returns the payment
response
Approved
Dell can now ship the order out to the
customer
Client
Dell
Rejected or User Interaction Required
Dell chooses what course of action to take
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Microsoft Confidential
Payment Federation
Trust Boundary
Business relationships are
complex and difficult to
model
Trust Boundary
MWS
Payment
•Avis may require payment
per BA holiday package
sale
Avis
Client
•Insurance may provide an
annual flat rate with BA
Most flexible model is to
allow BA to manage it’s
own payment relationships
with Avis and Insurance
BA
Insurance
•To the Client and MWS
Payment they are only
dealing with BA
•BA deals separately with
Avis and Insurance
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Microsoft Confidential
Solution Topology
Microsoft MWS Servers
MWS Framework
RBA
Protocols
MWS Server
SQL Server
MOM Server
ISA Server
Hello
via
SMS!
SMS
Gateway
Auth
/ Identity
Charging /
Payment
Vodafone Network Services
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Microsoft Confidential
Payment Architecture
Client to Server
Application Process
Windows
Media Player
Remoting
Channel
MWS Framework
Auth
Payment
MWS UX Process
Mobile Network Operator
WS-Trust / WS-Security
Client Identity
Token Service
SIM Security Token
(Local STS)
WS-Trust / WS-Security
Auth
MWS Security Token
GSM / SIM Identity
Token Service
MWS Identity
Token Service
Authentication /
Credentials UX
WS-Trust / WS-Security
Payment
MWS Payment
Token Service
Service Provider
WS-Trust / WS-Security
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MSN Music
MWS Identity
Microsoft Confidential
WS-Trust / WS-Security
Secure Payment
Processing UX
Payment
Token Service
Payment Security Token
Goals

Goal is to provide a secure, trusted, Web servicesbased payment model for server-server and clientserver scenarios
 Targeted for both consumer-to-business payments,
as well as business-to-business payments
 Plan is to enable Windows to provide trusted
payment capabilities for all applications, not just the
browser
 Plan is to provide a .NET client and server platform
to more broadly enable payment integration into
application and services
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Microsoft Confidential
Microsoft Points
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Microsoft Confidential
What is Microsoft Points?
 Microsoft Points:
 Enables efficient micro-payments
 Enables prepaid purchase for cash based consumers
(kids/teens, Immigrants, emerging and developing markets)
 Provides a mechanism to acquire and directly reward loyal customers
(direct revenue sharing)
 Introduces and defines a new impulse purchase user experience on the
web
 Microsoft Points is part of the MSN payment strategy
 Points does not replace other payment options but adds a new
instrument with very unique characteristics and capabilities to
our suite of payment options
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Microsoft Confidential
What is Microsoft Points Solving?
Problem:
is no efficient way to sell low priced ($0.05 – 5.00) digital content or
services online today
 The dominant buyer of these types of goods (music, games, ring tones) buy
with cash and today it is difficult to use cash online
 There
Solution:
 Best
solution to this problem is to use a prepaid stored value model
Reason/Evidence
 Stored
value has the absolute lowest transaction cost because you are
subtracting from known good funds with no settlement risk
 More than 70% of cell phones worldwide (of nearly 2B) are sold via prepaid
stored value
 Prepaid stored value music, and prepaid MMOG cards have also sold well
globally
 Starbucks has had huge success with it’s prepaid Duetto card
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Microsoft Confidential
Microsoft Payment Gateway
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Microsoft Confidential
Microsoft Payment Gateway
 The
SCG (MSN) payment gateway enables merchants to collect payments
through a variety of payment methods.
 The gateway acts as a bridge between the merchants and the financial
institutions that process payment transactions.
 It is a hosted solution only
 V2 is targeted for external partners and customers.
 First version the payment gateway will support credit card transactions
including real-time authorizations and settlements through Citibank.
 In the future, the payment gateway will be extended to support other payment
instruments like PayPal, Direct Debit, bank transfer, or Premium SMS.
 In the future, the payment gateway will also leverage the other SCS services
including financial reporting, tax services, cash reconciliation, chargeback
processing, etc.
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Microsoft Confidential
Microsoft Payment Gateway
Issuing
Bank - 1
eCheck provider
Windows
Payment
API
Online retailer
FD
C
Card Association
IP
Microsoft
Payment
Gateway
Gift card
provider
IP
Card Association
IP
Windows
Payment API
IP
Issuing
Bank - 2
Retailer
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Microsoft Points
Microsoft Confidential
Service
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Microsoft Confidential
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© 2004 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties,
express
or implied, in this summary.
Microsoft
Confidential
SUPPORTING SLIDES
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Microsoft Confidential
What
is Microsoft
is
a payment
routing, “Menger”
aggregation and reporting
engine.
 It supports Value Added Services such as least cost
routing, batch processing, Micro-payments, fraud
detections, recurring billing, etc.,
 MS “Menger” will allow large retailers to have the robust
features they need while still working in the plug and play
model delivered in the Payment Abstraction Layer
 In addition, Menger will provide extensible model for
adding additional value added services in addition to the
ones which are built in.
 It
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Microsoft Confidential
“Menger” Architecture
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Microsoft Confidential
Retailer
uses
Batch Processing
Microsoft
“Menger”
Scenario of Transactions
Retailer adds a loyalty program to MS “Menger”
Retailer uses business rules to keep its
business going in case of a payment service
outage
Retailer aggregates payments from its
remote/mobile outlets
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Microsoft Confidential
Mobile/Contact-less Payments
 In
the US and worldwide there are many contactless payment
initiatives including Mastercard’s PayPass, American Express’s
ExpressPass, Chase’s Blink, NTT DoCoMo’s Mobile Payments and
many others.
 Current initiatives have focused mainly on Contact-less cards while
a few have included Contact-less mobile phone based solutions.
 The main early value driver of contact-less payments is increased
speed of transaction over traditional magnetic stripe cards.
 While this is a major benefit in certain retail segments, there are
many other features that could be implemented when combining
contactless payments with a smart payment device like a Windows
Mobile Smart Phone.
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Microsoft Confidential
Mobile/Contact-less Payments Architecture
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Microsoft Confidential
Mobile/Contact-less Payments Scenarios
 Consumer
able to pay for coffee using mobile phone
 Card becomes locked after theft
 Automatic Payment Profile.
 Customer automatically received loyalty points and rebates on their
mobile phone
 Peer to Peer Payments.
 Transferring a limited card to another phone
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Microsoft Confidential
PAL/Menger Road Map
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