Australian Marketing Priorities & Big Bets SESSION:AP008 Steven Miller, Michaeli Gotley, Renee Cathcart

The BIG BETS This session outlines Microsoft Australia’s key investments across the commercial and consumer space. Hear about the focused marketing efforts that partners can utilise to amplify their presence in the enterprise and SMB sector.

FY12 PRIORITIES Win Hearts and minds of IT Pros and Developers Grow the Application Platform Modernize the Business Desktop Lead the Journey to the Cloud COMMERCIAL Increase Office Attach in Consumer Channels Grow Windows Phone 7 Share Grow Windows and IE 8/9 Share of Devices Be Number 1 in Entertainment with Xbox and Kinect CONSUMER

THE ALWAYS ON APPROACH PUBLIC & ANALYST RELATIONS DIGITAL & SOCIAL MEDIA CUSTOMER EVIDENCE EXECUTIVE BRIEFING CENTRE CUSTOMER IMMERSION EXPERIENCE MICROSOFT RELATIONSHIP PROGRAM MICROSOFT EVENTS

FOUR MAJOR EVENTS Australia Partner Conference Customer & Partner Roadshow – Q2 & Q3 Tech Ed Imagine Cup

3 COMMERCIAL GLOBAL ADVERTISING CAMPAIGNS OFFICE 365 PRIVATE CLOUD AZURE

BIG BANG LAUNCH ON MAJOR NEWS PORTALS

PRIVATE CLOUD

FY12 CONSUMER PRIORITIES Increase Office Attach in Consumer Channels Grow Windows Phone 7 Share Grow Windows and IE 8/9 Share of Devices Grow Xbox Share and Drive Kinect Attach

OUR MARKETING CHALLENGE Grow Windows and IE 8/9 Share of Devices 1.Windows PC sales flat 2.Market forecast 2.2M iPads sold FY12 3.Share of Devices from from 91% in FY10 to 59% in FY12 APPLE SHARE GROWING TO 34% 1.XP seen as good enough 2.Consumer experience 3.Journey to Cloud is inhibited 38% OF CONSUMER INSTALL BASE ON XP 1.Competitors seen as innovative 2.IE user base is passive w/ little active preference 3.IE 6/7 is migration blocker OUR KEY WEB PLATFORM IS DECLINING Grow Windows and IE 8/9 Share of Devices

HOW WE WIN IN FY12 SELL WINDOWS PC’S WIN BACK STUDENTS MIGRATE USERS TO IE8/9 Grow Windows and IE 8/9 Share of Devices

Grow Windows Phone 7 Share OUR MARKETING CHALLENGE 1.518M Smartphones fcst sales in FY12 2.MS share of market 3% (Q2 FY11) 3.Convergence of computing, telcomm & content is the leadership race BIG COMPETITION 1.MO support for “hero” phones relies on OEM marketing funds 2.Inadequate demand OEMS & MOS 1.“In the game” 2.App availability 3rd highest buy criteria 3.15,000 apps in Marketplace MINDSHARE & ECOSYSTEM

DRIVE AWARENESS INTEGRATE & GROW ECOSYSTEM ATTACH TO THE CLOUD HOW WE WIN IN FY12 Grow Windows and IE 8/9 Share of Devices Grow Windows Phone 7 Share

Grow Windows and IE 8/9 Share of Devices Increase Office Attach in Consumer Channels OUR MARKETING CHALLENGE 1.70% of consumers on Office New PC purchase 26% Attach Rate Million HH (w/PC) on old versions OLD SOFTWARE IS PERCEIVED AS GOOD ENOUGH 1.2 out of 3 direct buyers purchase Office 3+ months after PC buy 2.4 out of 10 direct buyers are replacing older versions of Office 3.MS owned channels RRP FOCUS HAS BEEN ONLY ON ATTACH AT POINT OF PURCHASE 1.498K Office 2010 Trials taken in FY11 - Only 4,526 Trials converted to purchase 2.12,738 consumers licenses sold came from Office Starter & OOBE 3.4% of all units sold came thru Online PRODUCT SALES DRIVEN THROUGH BRICK & MORTAR

ATTACH TO NEW PC’S CAPTURE 2ND CHANCE SALES GROW DIGITAL DISTRIBUTION & SALES HOW WE WIN IN FY12 Grow Windows and IE 8/9 Share of Devices Increase Office Attach in Consumer Channels

CAMPAIGN CREATIVE IDEA It’s a great time to be a family. It’s the right time. It’s the right moment. Technology is now really changing family life for the better. It’s not getting in between us anymore. It’s connecting us. In so many different ways. It’s time for your family to be a part of it. Nobody else offers the choices and value that Microsoft does to make your family great.

RETAIL CREATIVE LOOK AND FEEL

Win Hearts and minds of IT Pros and Developers Grow the Application Platform Modernize the Business Desktop Lead the Journey to the Cloud FY12 COMMERCIAL PRIORITIES

OUR MARKETING CHALLENGE – WIN THE DATA CENTRE 1.The market (thought) leader 2.Strong ITDM and IT Pro support 3.Bridge the gap AWARENESS AND PERCEPTION VERSUS VMWARE 1.Hosters are the cloud 2.HP 3.VMware tax vs. economics DRIVE PARTNER SCALE 1.Build credible market evidence 2.Increase share – 17% vs. 60% MINDSHARE & ECOSYSTEM Lead the Journey to the Cloud

HOW WE WIN IN ENTERPRISE IN FY12 WIN THE DATA CENTRE 1.Execute FY12 Private Cloud 2.Integration with customer voice 3.Work with DPE IT Pro mission 1.System Center 2012 in Q2 2.Windows Server 8 Disclosure KEY PRODUCT LAUNCHES 1.Hyper-V Cloud Accelerate 2.SIP and Deployment Planning 3.Supporting point 3 EXECUTE THE PARTNER ENGINES AND OFFERS Lead the Journey to the Cloud

HOW WE WIN IN SMB IN FY12 WIN THE DATA CENTRE 1.Execute FY12 Private Cloud ATL 2.Win infrastructure of key hosting partners 3.Amplify message to IT Professionals 1.System Center 2012 in Q2 KEY PRODUCT LAUNCHES 1.Hyper-V Cloud Accelerate 2.Sales Incentive Program 3. Deployment Planning EXECUTE THE PARTNER ENGINES AND OFFERS Lead the Journey to the Cloud

OUR MARKETING CHALLENGE – LEAD THE FUTURE OF PRODUCTIVITY… 1.Supply and demand 2.Cloud adoption limited by 10 year old desktop experience 1.Telstra WIN AT SCALE VS. 1.“Born in the cloud” vs. traditional 2.“Assigned seats” is the new deployment SCALING THROUGH PARTNERS 75% Lead the Journey to the Cloud

HOW WE WIN IN ENTERPRISE IN FY12 LEAD THE FUTURE OF PRODUCTIVITY… 1.Immerse and excite customers in the modern desktop 2.Deployment of Windows 7 and Office Execute Office 365 campaign 2.Migrate BPOS customers 3.Launch Office 365 in Education 1.Partner attach to all EAs 2.Cross skill partners 3.Drive activation TRANSITION AND LEVERAGE OUR PARTNER NETWORK MICROSOFT CUSTOMER IMMERSION EXPERIENCE Lead the Journey to the Cloud

HOW WE WIN IN SMB IN FY12 LEAD THE FUTURE OF PRODUCTIVITY 1.Drive Demand via digital across 3 Cloud solutions 2.Drive trials, conversion & Partner attach 3.Office365 Advertising Campaign 1.Telstra driving scale to SMBs 2.Partner Activation & through-partner marketing 3.SMB Community Engagement & Customer Satisfaction programs 1.Engagement with Key Hosting Partners for SMB 2.Targeted through partner investments 3.Joint go to market strategies PRIVATE CLOUD WIN AT SCALE VS. Lead the Journey to the Cloud

Grow the Application Platform OUR MARKETING CHALLENGE 1.Public/Private cloud message 2.Complex for account teams 3.Varied workloads & capabilities COMPLEX PICTURE 1.Historic focus on dev & IT Pro 2.Less CXO & BDM competency 3.Commitment to long cycle PLATFORM REQUIRES “LEADERSHIP SALE” 1.Revenue growth targets exceed current market growth 2.Lack some evidence 3.Not always “invited to table” GROWTH REQUIRES SHARE CAPTURE

HOW WE WIN IN FY12 1.Evidence 2.Awareness campaigns 3.Focus on workloads, not products ENTERPRISE LED SOLUTION SELLING 1.Headcount investments 2.Compensation plan changes 3.Segment alignment SQL NEXT LAUNCH 1.“Breakfree” campaign (ITDM) 2.Partner led CRM events POSITION PLATFORM SOLUTION AT A STRATEGIC LEVEL Grow the Application Platform

Modernize the Business Desktop OUR MARKETING CHALLENGE 1.70% of Commercial PC’s on old s/w 2.Work-Life boundaries blurring; PC work experience impacts home use 3.Aggressive Competition ROADBLOCKS TO A GREAT USER EXPERIENCE 1.40% of EPG customers w/ no W7E deployment plan; >50% on WPro 2.Office 365 doesn’t support O2003/IE6 3.Windows XP EOL 2014 ADOPTION & DEPLOYMENT HURDLES 1.Major blocker to W7 deployment & Mod Desktop Deployment 2.User experience is lacking 3.IE6 painful to migrate IE6/7 USAGE SHARE 11.7%

HOW WE WIN IN ENTERPRISE IN FY12 1.Tell the whole story across all devices 2.Single-coordinated deployment motion FLEXIBLE WORKSTYLE CAMPAIGN 1.Drive experience of the ‘modernised’ solution (CIE, buss days, device evaluation, program and events) DRIVE DEMAND ‘EXPERIENTIAL MARKETING’ 1.Leverage deployment wins to create awareness and technology benefits of the modernised desktop UNBLOCK DEPLOYMENT THROUGH AWARENESS AND ALLIANCES Modernize the Business Desktop (Windows 7, Office 2010, IE9 and MDOP)

HOW WE WIN IN SMB IN FY12 1.Flexible Workspace/Business PC Campaign 2.Align through partner marketing 3.Data analytics to target customers with the right licensing offers MODERNIZE THE DESKTOP 1.Romance the hardware 2.Demand generation: digital & tele campaigns 3.Promotional offers with simplified ‘how to buy’ messaging DRIVE DEMAND FOR OFFICE201 & WINDOWS DEVICES 1.Focus on through partner marketing 2.Target n-2 upgrades 3.Partner Offers 4.Leverage Value Added Distributor MIDMARKET SERVER & SERVER UPGRADE Modernize the Business Desktop (Windows 7, Office 2010, IE9 and MDOP)

So how do Partners get Involved?

Check out the campaign materials on Microsoft Partner Network Unite on message Share case studies Build offers From event booths- to event engagement Grab our leads Use the EBC- work with your PAM Use the CIE- work with your PAM How to get involved….