Nick MayhewGroup Manager, Partner Strategy

Stefan JansenHosting Manager

Christian LongstaffPartner Marketing Manager

Today’s Presentation

PurposePurpose

Clarify Microsoft’s Clarify Microsoft’s Software + Services Software + Services strategy and outline how strategy and outline how partners can engagepartners can engage

TopicsTopicsIntroduction to Software + Introduction to Software +

ServicesServices

ISV OpportunityISV Opportunity

Hosting PerspectiveHosting Perspective

MS OnlineMS Online

Q&AQ&A

Market Opportunity for Hosted Services

32% CAGR for Worldwide SaaS 32% CAGR for Worldwide SaaS forecasted, 2007-2011 forecasted, 2007-2011 (IDC)(IDC)

25% of new business software will 25% of new business software will be delivered as a service by 2011 be delivered as a service by 2011 (Gartner)(Gartner)

SaaS is forecasted to exceed $20 SaaS is forecasted to exceed $20 billion in revenue by 2011 billion in revenue by 2011 (Yankee Group)(Yankee Group)

8% CAGR for on premise8% CAGR for on premise

Software + Services Platform

Computers Networks

Building Block Services

3rd PartyApps & SolutionsOnline ServicesLive Services

Datacenters

Rapid implementationRapid implementation

Anywhere-accessAnywhere-access

Rich extensibilityRich extensibility

Control & ownershipControl & ownership

Strategic capabilitiesStrategic capabilities

Advanced integrationAdvanced integration

Outsourced ITOutsourced IT

Industry / Vertical Industry / Vertical configurationconfiguration

Packaged solutionsPackaged solutions

Rapid implementationRapid implementation

Anywhere-accessAnywhere-access

Rich extensibilityRich extensibility

Control & ownershipControl & ownership

Strategic capabilitiesStrategic capabilities

Advanced integrationAdvanced integration

Outsourced ITOutsourced IT

Industry / Vertical Industry / Vertical configurationconfiguration

Packaged solutionsPackaged solutions

The Power Of ChoiceMicrosoft Software + Services

ISV Call To Action – Taking S+S to Market

Innovate Consulting & Training

Partner with a Hoster

Hosting Incubation Don’t provide “commodity

services” Bundle everything Sell by the seat Tailor the offering Solutions designed for

each customer

Rapid implementationRapid implementation

Anywhere-accessAnywhere-access

Rich extensibilityRich extensibility

Control & ownershipControl & ownership

Strategic capabilitiesStrategic capabilities

Advanced integrationAdvanced integration

Outsourced ITOutsourced IT

Industry / Vertical Industry / Vertical configurationconfiguration

Packaged solutionsPackaged solutions

The Power Of Choice

Microsoft Software + Services

Full IntegrationFull IntegrationVerticalVerticalApps LOBApps LOBOwn AppOwn App

Full IntegrationFull IntegrationVerticalVerticalApps LOBApps LOBOwn AppOwn App

Managed Services HosterManaged Services HosterCustom SolutionsCustom Solutions

Partner Hosting Opportunity

WS 08 WS 08 Hyper VHyper VSQL 08SQL 08

System CenterSystem Center

New MarketsNew MarketsLess Less ExpenditureExpenditureRecurring Recurring RevenueRevenue

New MarketsNew MarketsLess Less ExpenditureExpenditureRecurring Recurring RevenueRevenue

Web HosterWeb HosterIncremental growthIncremental growth

WS 08WS 08Hosted CRMHosted CRM

HMC - ExchangeHMC - Exchange

Targeted Targeted variations variations Branding Branding ControlControlExpanded Expanded reachreach

Targeted Targeted variations variations Branding Branding ControlControlExpanded Expanded reachreach

Private Label HosterPrivate Label HosterVAR/SI PartnershipVAR/SI Partnership

Core Core ApplicationApplicationCommunication Communication ServicesServicesIncreased Increased ARPUARPU

Core Core ApplicationApplicationCommunication Communication ServicesServicesIncreased Increased ARPUARPU

Application HosterApplication HosterTrusted Advisor Trusted Advisor

OCSOCSSharePointSharePointExchangeExchange

WS 08WS 08Hosted CRM Hosted CRM

33rdrd Party Apps Party Apps

SPLA Changes for Service ProvidersSPLA Changes for Service Providers

Aligning price of MOSS SAL with OnlineAligning price of MOSS SAL with Online

Reducing by approx. 19%Reducing by approx. 19%

Aligning price of OCS SAL with OnlineAligning price of OCS SAL with Online

Reducing by approx. 44%Reducing by approx. 44%

Adding a Suite SAL that aligns with BPOSAdding a Suite SAL that aligns with BPOS

38% discount on standalone38% discount on standalone

Enable customers to bring their own CAL to SPLAEnable customers to bring their own CAL to SPLA

Discounted SALs for Exchange, MOSS, OCS, SuiteDiscounted SALs for Exchange, MOSS, OCS, Suite

MOSS SALMOSS SAL

OCS SALOCS SAL

Suite SALSuite SAL

STEP-UP SALsSTEP-UP SALs

*: available from Oct 1; final pricing to be determined and communicated by Microsoft and SPLA Reseller*: available from Oct 1; final pricing to be determined and communicated by Microsoft and SPLA Reseller

Hoster / Service Provider: Call To Action

Bundle Differentiators In

Your Offers Partner with Partners Learn about SPLA program

and changes Obtain Hosting Competency Contact: HostAU@microsoft.com

Rapid implementationRapid implementation

Anywhere-accessAnywhere-access

Rich extensibilityRich extensibility

The Power Of Choice

Microsoft Software + Services

Microsoft Online Services

Microsoft Online Services

Enterprise class software delivered via subscription services hosted by Microsoft and sold with partners

New Customers: New Customers: 70% of sales expected to be to new 70% of sales expected to be to new customers*customers*

New Segments: New Segments: Expand to larger or smaller customersExpand to larger or smaller customers

New Scenarios: New Scenarios: Business Process consulting services, Business Process consulting services, intranet appsintranet apps

Increase sales and deployment capacityIncrease sales and deployment capacity

ScaleScale by servicing multiple customer remotely – 40% by servicing multiple customer remotely – 40% savings*savings*

IncreaseIncrease margins by increasing managed services attach margins by increasing managed services attach ratesrates

Partner Fees: Partner Fees: 12% Net-add fees and 6% residual fees12% Net-add fees and 6% residual fees

New Services:New Services: SharePoint consulting, online migration and SharePoint consulting, online migration and integrationintegration

Recurring Revenues: Recurring Revenues: Up to 50% of new revenues are recurringUp to 50% of new revenues are recurring

Partner OpportunityNew business, more customers, faster

Increase Increase VelocityVelocity

GrowGrowRevenueRevenue

Expand Expand ReachReach

Source: MDC/MRM-Partner Opportunity Study 2007

Software + Service Go Do’s

Online…Online…Online…Online…

Complete Complete Microsoft Microsoft Online Services Online Services TrainingTraining

Pass Pass the assessmentthe assessment

Create Create a profile in a profile in Solution ProfilerSolution Profiler

Use Use the software + the software + services Partner services Partner Evolution Interactive Evolution Interactive GuideGuide

Here And Now…Here And Now…Here And Now…Here And Now…

Sign Sign SPLA and/or ISV SPLA and/or ISV Royalty AgreementsRoyalty Agreements

Join Join Quickstart for Quickstart for Microsoft Online Services Microsoft Online Services

At The Office…At The Office…At The Office…At The Office…Asses Asses your business your business model for Software + model for Software + Services Services opportunitiesopportunities

Explore Explore P2P P2P OpportunitiesOpportunities

Partner Partner withwitha hostera hoster

Online…Online…Online…Online…

CompleteComplete

PassPass

CreateCreate

UseUse

And please do your evals. Win a mouse.

© 2008 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.

The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after

the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.