Aligning your sales model to the new IT buyer US02 #WPC16 Aligning your sales model to the new IT buyer William Lewallen Sr. Manager, National Cloud Partner Sales

Thank you!

A growing business accelerates TRANSACTING PARTNERS 3.5k

85% selling through indirect providers

A growing business accelerates TRANSACTING PARTNERS CUSTOMERS 3.5k 42k

Top level insights only tell part of the story SMB 98% Segments Reached 100% Sales through Indirect Resellers 73% Consuming Azure, EMS or CRMOL 3%

A growing business accelerates TRANSACTING PARTNERS CUSTOMERS OFFICE 365 SEAT ADDS 3.5k 42k 822k

You made this happen!

A growing business accelerates TRANSACTING PARTNERS CUSTOMERS OFFICE 365 SEAT ADDS NEW BUSINESS 3.5k 42k 822k 70%

FY17 Investments and Opportunities Microsoft Worldwide Partner Conference 2016 7/16/2018 7:31 AM FY17 Investments and Opportunities New markets Academic Offers Increased incentives 8 pts ( 2pts) New services Windows Enterprise Subscription Additional Azure services Improved terms Net 30 >> 60 CSP on MPN simplified and more accessible user experience, significant investment in onboarding resources Enhanced platform role based customer analytics and consolidated partner and customer support ticketing © 2016 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Four core pillars of the modern partner 7/16/2018 Four core pillars of the modern partner Differentiate to stand out Modernize sales & marketing Optimize your operations Deliver customer lifetime value © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, 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.

“In the new economics of the cloud, driving usage is even more critical since nearly all the revenue will be based on consumption, and switching costs will be low for disgruntled customers.” CONSUMPTION ECONOMICS: THE NEW RULES OF TECH

67% of customers expect to purchase a wide variety of cloud services from a single vendor IDC Successful Cloud Partners 2013 l IDC Buying Into the Cloud 2014 l 2014 Forrester TRUE Brand compass

84% of customers want an established relationship with a vendor to trust them as a Cloud Service Provider IDC Successful Cloud Partners 2013 l IDC Buying Into the Cloud 2014 l 2014 Forrester TRUE Brand compass

65% of B2B buyers usually engage a sales rep only after they’ve already made a purchase decision Source:  IDC eBook, sponsored by Microsoft, The Modern Microsoft Partner Series, Part 3:  Modernize Sales and Marketing, 2016

Line of business decision makers are critical to success Microsoft Worldwide Partner Conference 2016 7/16/2018 7:31 AM Line of business decision makers are critical to success 61% 81% of technology projects funded by LoB of technology projects influenced by LoB Source: IDC North American Line of Business Technology Survey 2015, n=1548 © 2016 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Hire the right people Invest in marketing specialists Look to industry vertical or functional areas to source talent

Modernize your compensation Incentives drive behavior Consider incentives for roles outside of sales Align your incentives to specific outcomes and behaviors

Microsoft Worldwide Partner Conference 2016 7/16/2018 7:31 AM 34.1% 30.9% 23.6% 17.5% 11.0% We focus on up front compensation We do something different We focus on compensation over the life of the customer We have a mix of up front and ongoing commission, but push more up front We have a mix of up front and ongoing commission, but push more over time Sales compensation models in the cloud Source:  IDC eBook, sponsored by Microsoft, The Modern Microsoft Partner Series, Part 3:  Modernize Sales and Marketing, 2016 © 2016 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Use the ecosystem to extend your reach Consider building a channel program for your own solution Look for partnerships

Identify entry points or consider freemium Develop relationships to find more opportunity to add value Consider leading with solutions with predictable outcomes or widely demanded loss-leaders Lead with an easy to buy and consume offering

Top ways to reduce sales costs 42.6% 32.8% 29.7% 27.3% 24.6% 14.8% 10.9% Use management, delivery, or technical teams Use channel partners Hire less experienced sales people Invest more in marketing versus sales Align sellers to a particular vertical or sub-segment of the market Shift to a telesales team Leverage unmanaged web sales Source:  IDC Survey, n=11, 2016

Utilize customer intelligence Create and utilize tools to gain visibility into customer environment

Think customer lifetime value, not deals Map incentive structures to drive growth Utilize key resources to cross-sell and up-sell Continue selling after initial deal

Worldwide Partner Conference 2015 7/16/2018 7:31 AM WE’RE IN THIS TOGETHER © 2015 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Partner Panel Jenn Martin Lisa Cuthbertson Jackie Luper 7/16/2018 7:31 AM Partner Panel Jenn Martin VP Global Sales BitTitan Lisa Cuthbertson VP, Sales & Operations Champion Solutions Group— MessageOps Division Jackie Luper VP, Marketing & Customer Experience Managed Solution © 2014 Microsoft Corporation. All rights reserved. Microsoft, Windows, 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.

Q&A

Partner led: today and tomorrow WPC 2015 7/16/2018 7:31 AM Partner led: today and tomorrow “This company was built on enabling broad ecosystems and broad partner opportunity. We now need to redefine what it means to build an ecosystem in a mobile-first, cloud-first world. That is what we will continue to push for.” Satya Nadella, CEO © 2015 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Thank you! aka.ms/csp http://aka.ms/william @wlewallen 7/16/2018 Thank you! aka.ms/csp http://aka.ms/william @wlewallen will@microsoft.com © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, 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.

Complete your evaluations… for a chance to win a prize! Complete your session and conference evaluations here: aka.ms/wpcevals or though the mobile app Thank you partner. We value your feedback. Microsoft will donate $1 $5 for completing a session evaluation for completing the overall conference evaluation to the non-profit organization Right to Play, a Microsoft YouthSpark Partner