Kevin Lawless, Jeff Fabin, & Vanessa Van Horn September 20, 2016 Cloud University Live: Benefits of Bundling Microsoft Office 365 & BitTitan Kevin Lawless, Jeff Fabin, & Vanessa Van Horn September 20, 2016

Why Bundle? Microsoft Office 365 Overview Office 365 Bundling Opportunities BitTitan Overview Custom BitTitan and Office 365 Bundles Migrate to Office 365 with BitTitan for Free

Why Bundle with the Ingram Cloud Marketplace? Reduce overhead & operational cost Increase overall Margin 1 Order – Multiple Solutions Tighter relationship with end customers Improved end customer experience

Stages of opportunity with Office 365 Extraordinary ENHANCE $50-100/user ADOPT & MANAGE $5-15/user Partner revenue Year 1 Engagement PLAN $2-5k ONBOARD $6-12k RENEW Whlse Price List SELL Whlse Price List $10-48 / seat $2-18K $6-20K Good Stage of opportunity When we think about the anatomy of an Office 365 deal, we can break it down into four major buckets: The first three represent one-time revenue opportunities in the first year of the deal. Licensing revenue is the baseline revenue that partners generate from the sale. Deployment and migration services: These include not only the movement of a customer’s data to the cloud, but all the assessment and planning that is required. First-year revenue that partners can see is represented by the three squares: licensing revenue from the sale, along with planning and onboarding revenue. After the first year, these revenue opportunities have already been taken advantage of. This is where the engagement ends, especially for those partners that are only working with on-premises projects. Where the majority of the revenue that partners get to see is in an annuity business. This is represented by the three circles here: Adopt and Manage: This can be a variety of different activities, but some of the most common things include new user setup and training, and help desk support. Partners on average can charge between $5-15 per user every month. However, this can go up to $50-$100 per user per month, if you provide other IT services. Add-on projects and solutions is where partners can really shine by supporting a customer’s expansion, offering customizations, and supporting the customer’s future IT strategy. Partners have built solutions, such as SharePoint applications for HR or accounting. This can really enhance the total opportunity for Office 365. The revenue per user for these services varies a lot. Additionally, annual renewals are another ongoing, revenue opportunity. The vast majority of these revenue streams are recurring in nature. Partners can quickly develop an annuity stream through their Office 365 customers that is large and predictable. <click>

Identify what additional services your organization offers Build long-term, value-added services for Office 365 PACKAGED IP Average Revenue: $1-$15 per user/per month4 Margin: 65% SharePoint-Based Vertical Workflows Middleware for Hybrid Synchronization Industry-specific Workflows Function-specific Workflows (e.g. HR, Procurement) Automated O365 Telemetry (Availability & Performance) Office Connectivity & Other Plug-Ins & Add- ons External Portals for End Customer Information Pre-Configured Dashboards Partner Revenue MANAGED SERVICES Average Revenue: $5-$15+ per user/per month4 Margin: 45% Office 365 Tenant Management Reactive Help Desk Support (Office, Skype for Business, Intune, CRM Online) and interface to MSFT Performance and Application Troubleshooting Desktop & Device Management & Support Reports & View Adjustments Software Asset Management (licensing management & optimization) Security Management & Identity Protection Office Client Connectivity Setup Mobile Device Connectivity & Management Web defense (restricting URLs, phishing malware, spam) Hybrid Environment Support (Basic Infrastructure) VoIP Maintenance Regulatory Compliance via Office 365 Infrastructure PROJECT SERVICES Average Revenue: $2.5K-$15K4 Margin: 35% Cloud Readiness Assessment Solution Analysis, Scope, & Design Office 365 Set up and Remediation Simple File Server Migration Workflow Creation in SharePoint Yammer Adoption End User Training 1 x $ $ Exchange Online Skype for Business OneDrive for Business SharePoint Online Yammer Here are some additional ideas for you to add to your offerings: For Project Services, you could begin training your customer’s end users on Office 365. Use this as an opportunity to repeat the training for new employees, or when you onboard your customer to another workload or help to integrate more business processes into Office 365. This might be a one-time opportunity. For Managed Services, the easiest service to offer is the management of their Office 365 tenant. Most customers add this on because their partner is already managing other aspects of their IT infrastructure. It’s a no brainer for them since you are their trusted advisor. There are a lot of other examples, though, so feel free to take your time in reviewing each one and know that all of these are recurring in nature. The last bucket is IP Services and has the highest margin. According to TechAisle, 80% of SMB customers see the cloud as an opportunity to provide better and faster access to data and information. Whether it be industry-specific workflows or preconfigured reporting dashboards, you have a huge opportunity to provide significant value to your customers. The last point to leave you with, is to not let your capability limit you. Many partners have connected and partnered with other organizations to bolster their offerings. Whether it’s Skykick and BitTitan for migrations or Nintex for SharePoint workflows, you can really provide a lot more to your customers by working with other partners to expand your offerings. If anyone has questions, reach out via the Office 365 Partner Yammer Network to get them answered. <click> Based on an average 25 seat deal Source: 1. Markets and Markets : Managed Services Market worth $256.05 Billion by 2018(c) 2014 M2 COMMUNICATIONS 2 IDC Worldwide and Regional Public IT Cloud Services 2014–2018 Forecast Oct 2014 | Doc #251730 3. Microsoft ​ 4. MDC Research, Microsoft Cloud Profitability Scenarios May 2015

Bringing it all together Extraordinary Office 365 deal economics (100 seat customer) $~32,000-50,000 LOB enhancements +$20,000 Partner revenue +$10,000-20,000 PLAN & ONBOARD +$2,000-10,000 $10-48 / seat $2-18K ADOPT & MANAGE ENHANCE SELL Good Stage of opportunity Here’s another view of how the dollars might flow from the prior example. This represents the potential deal economics of an Office 365 deal of 100 seats of the Office 365 Business Premium plan: First is the Sale. This is the baseline subscription licensing revenue that a partner generates from the sale. This is recurring revenue on an annual basis. The second is Planning and Onboarding. This represents a one-time revenue opportunity. The revenue range depends on the scope of activities from deployment planning to user data migration. Moving into more annuity type services in this deal, we start with Adoption and Managed Services. This can take a variety of different flavors, but the research estimates $5-15 per user. There have also been some higher numbers in specific geographies, with some numbers that hit as high as $50 per user for full IT support. We’ll go into specifics in a bit. Lastly, we have Enhance: This is where partners can really shine by supporting a customer’s expansion through add-on projects and solutions, offering customizations and supporting the customer’s future business strategy. According to the research, the revenue per user for these services varies broadly, between $50-275 per user. In total, partner revenue can be between $32,000 and $50,000 per year for a 100 seat customer. As you grow, you’ll be able to include a lot more services to enhance your customer’s business and increase your revenue and margin. <click>

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Ingram Micro – Dedicated Market Development Team MICROSOFT O365 Ingram Micro Cloud Microsoft Team Microsoft-Cloud@ingrammicro.com BITTITAN Vanessa Van Horn Vanessa.VanHorn@ingrammicro.com COMM & COLLABORATION Ingram Micro Cloud Communication & Collaboration Team Cloud.Communication@ingrammicro.com