FEDERAL MARKETOVERVIEW

August 16, 2011

JAMES FYLES | DIRECTOR, CHANNEL MANAGEMENTMOTOROLA SOLUTIONS

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FEDERAL TRENDS

CR issue clearly have had an impact on FY2011

Still cause for optimism• Agencies behind in procurements and feeling pressure• OpEx vs CapEx• IT budgets potentially less susceptible to cuts

Continued decline in GSA vs Agency Vehicles• Extra step in buying process• Not just who buys – but how?

FEDERAL IT FORECASTFY2011 IT Budget request - $79.4 Billion

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Source: OMB, INPUT

FY10 figures are OMB estimates.*Enacted**Assumes 103% of FY11 request.

FY11 IT BUDGET REQUEST

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DoDDHS

HHS VADOT

Treasu

ry DOJ

Agricu

lture

Commerce

Energ

y

NASA

SSA

State

Educa

tion

Interior

GSA

Labor

HUD

All Other

$0

$5

$10

$15

$20

$25

$30

$35

$40

FY2010 Enacted FY2011 Request

FY20

11 P

resi

dent

's B

udge

t Req

uest

($B)

Source: FY2011 OMB’s Report on Information Technology (Exhibit 53)

-63%-2%

+7%

Total FY2011 IT Request - $79.4 Billion

•Inspections•E-Forms•Work Orders•Asset Management•Chain of Custody•Resource

Management•Maintenance

(MRO)

Federal Civil Agencies are looking to improve efficiency and productivity with Field Mobility

Mobility Applications

FEDERAL CIVIL OPPORTUNTITES FOR FIELD MOBILITY

* Civilian Field Mobility opportunities have less barriers to entry than DoD due to added security requirements.

OPERATIONAL EFFICIENCY

6

Mobile Services and Products

Source 50 Unit DeploymentAverage Partner Price End User Price

Handheld Mobile (MC75A Cellular Modem) Motorola $80,000 $100,000

Handheld Accessory Kit (Could include Cradle/PS/Spare Battery) Motorola $12,500 $17,500

Service from the Start (3 Year Bronze) Motorola $12,500 $17,500

MDM (MSP3 Stage, Provision, Control, & HW) Motorola $2,180 $3,800

MVPN (Airbeam) Motorola $8,082 $13,065

Mobility Application/Servers 3rd Party $27,000 $34,500 Wireless Activations (One Time Credit to Reseller) 3rd Party $0 $5,000

Integration Services (Installation/ Configuration) Reseller $24,000 $35,000

Application Design Services (1 Design Cycle) Reseller $54,400 $100,000

Support: Application Maintenance / Support (Reoccuring Revenue Opportunity) Reseller TBD TBD

Solution Revenue   $220,662 $326,365

Per Unit Revenue   $7,226 $6,527

Gross Profit $105,703

Gross Margin % 32.38%

SOLUTION EXAMPLE

Design Services

(Varies by Complexity)

Support Services

Reoccurring Application Support Revenue

Actual Motorola Product Pricing dependent on Partner Empower Status

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FEDERAL MARKET SPECIALIZATION

SPECIALIZATION STRUCTURE

SPECIALIST Mobile Solutions Track channel partners with exceptional competency and significant success in the U.S. Federal markets receive the Specialist designation

AUTHORIZED MEMBER

Mobile Solutions Track channel partners that meet a basic set of U.S. Federal Markets Specialization requirements receive the specialization designation of Authorized Member IN

CR

EASE

D P

RO

GR

AM

BEN

EFIT

S

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ADDITIONAL FED BENEFITS

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BENEFIT AUTHORIZED SPECIALIST

Federal Market IncentiveReceive an incremental product discount at point-of-sale.

0.5% discount 2% discount

Federal Growth Incentive Earn an additional year-end growth incentive rebate based on your U.S. Federal revenue by exceeding your growth target and selling a minimum of $500,000 in reported U.S. Federal sales.

5% rebate 10% rebate

Deal Registration for US Federal OpportunitiesRegister deals in progress, which provides a differentiated discount and safeguards investments made to create and influence opportunities.

Up to 15% for U.S. Federal markets opportunities

Federal Sales IncentivesTake advantage of special U.S. Federal markets incentive programs that reward sales representatives for sales success.

Eligible Eligible

Federal Product PromotionsDrive revenue and compete more effectively through targeted U.S. Federal markets product promotions.

Eligible Eligible

VAR SUCCESS CRITERIA

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THANK YOU…

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