Microsoft not only uses its own software wherever possible, but also as early as possible. Markezich begins rolling out all upcoming Microsoft software a full year before its final release -- the same time as members of Microsoft's Technology Adoption Program (TAP), its elite corps of corporate beta testers. The difference is that while TAP members are only required to install the software in non-working environments, Markezich puts all of the beta software straight into production.

To anyone familiar with the myriad of screaming headlines about Microsoft security holes or bugs, that may seem foolhardy. But Markezich said that installing Microsoft software in beta stages -- software which he still technically pays for -- helps his team wring out cost savings that keep him within his 3 percent of annual revenues spending limit. (Based on Microsoft's $40 billion in sales last year, that still amounts to more than $1.2 billion.)

Markezich is looking for similar savings as he upgrades to betas of Microsoft's next wave of software, including Windows Vista, Windows Longhorn Server, Exchange 2007, Office 2007, System Center Configuration Manager 2007 (formerly SMS v4) and others. For instance, using the System Center Operations Manager 2007, formerly codenamed MOM v3, Markezich hopes to drive the ratio of alerts-to-tickets-generated by his management software from 1.3-to-1 down all the way to 1-to-1. That will reduce work for his staff.

As part of its "24X7" internal IT initiative that began last July and lasts for two years, Microsoft hopes to drive seven million hours of increased productivity, or about five hours per employee per month. It envisions that productivity coming from making current processes more efficient and enabling new ones via technology such as Office Live Communications Server 2005 and the Communicator 2005 instant messaging software client. Markezich said that technology improves employee productivity by 3 percent and leads to $48 million per year in productivity benefits, and figured that he's already ahead of schedule, having already wrung nearly four million extra hours in the past 10 months.

Though they have perhaps the best warts-and-all view into Microsoft software while in development, Markezich downplays the influence he and his team have on the final products.