Be Dynamic: Opportunities for Growth with Microsoft Dynamics session:ap058 Jeff Edwards Director of Global Channel Strategy Microsoft Corporation

CRM and ERP Market Overview Market Opportunity Competition 2013 2009 CRM: $12 Billion $4.6B Cloud 5.4% CAGR CRM: $10 Billion $2.7B Cloud 16.3% CAGR ERP: $74 Billion $62B Addressable 3.6% CAGR ERP: $64 Billion $54B Addressable 10,000+ of others Source: IDC, May 2010

Results 10 years –in the ERP and CRM business 20% CAGR over last 10 years $1.2B in Annual Revenue FY2010 350,000 customers in installed base Over 5 million users of Dynamics Products

SIMPLICITY | VALUE | AGILITY

Microsoft Dynamics Commitments ROLES Simple to Learn and Use Drives Value for Business Delivers Agility for Change

FINANCIALS & OPERATIONS 11/16/2018 8:25 AM SALES PRODUCTIVITY CUSTOMER CARE EXTENDED CRM GLOBAL ORGANIZATIONS GLOBAL SUBSIDARIES VERTICAL BUSINESS FINANCIALS & OPERATIONS MICROSOFT CONFIDENTIAL © 2006 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.

Microsoft Dynamics AX at a Glance Global: multi-site, - legislation, - language, n-site central deployment Over 13,000 AX customers from mid-sized organization to divisions of large enterprises Global network of software & services partners Native Office experience for rapid adoption Flexible and scalable n-tier architecture Extends Microsoft application platform for rapid vertical application development

MS Dynamics AX Momentum Gartner and Forrester “As large and enterprise-sized companies continue to experience difficulty with existing systems, Microsoft Dynamics AX 2009 will play an increasing role as a key alternative for divisions and subsidiaries looking for lower-cost and more effective alternatives. […] We recommend the Microsoft solution to companies with existing Microsoft tools and technologies and for larger companies up to $5 billion in revenues looking for user centric solution.” The Forrester Wave ™ Order Management Hubs, Q3 2010, Forrester Research, Inc., August 2010 “Microsoft enters the Leader band for the first time based principally on the strength of its strategy, including a […] go-to-market strategy as well as market-leading ownership costs.” The Forrester Wave ™ Order Management Hubs, Q3 2010, Forrester Research, Inc., August 2010 Source: Gartner Dec 2010 - Magic Quadrant for ERP for Product-Centric Midmarket Companies between 100 and 999 employees with annual budget between $50 million and $1 billion. IBM Confidential 9

Two-Tier Value Proposition 11/16/2018 8:25 AM IT Trends: Budget constraints Y2K Replacements High Maintenance Costs of Tier 1 ERP vendors Business Trends: Globalization Alignment IT and Business Productivity Imperative Innovation CIO Challenges: Low IT Efficiency High Costs of integration Inability to support business innovation Business Challenges: Lack of operational visibility Lack of global standardization of core business processes MICROSOFT CONFIDENTIAL © 2006 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.

Dynamics AX Partner Opportunity Refer Resell Support Solution Sales Host Services Customize Design

Dynamics AX Partner Revenue Opportunity Global Luxury Retail Customer SAP customer selects AX globally for €3B division of company, beginning in Asia Competitive win against SAP and Oracle 200 concurrent users Optimized cost and standard processes allow customer to grow internationally and expand through acquisition Agility and flexibility to adapt to local market conditions Partner Revenue Initial License $770k/year Initial Services $2.5M TOTAL: $3.25M (*Includes Reseller Fee $300k)

Productivity, Web, and CRM Leading the Way Worldwide Cloud Market Migration Rate Of Workloads to the Cloud ~30%-35% CAGR doubling every 2 years Application % of CIOs surveyed (N=50) 82 Productivity 18 $65B-$85B 40-50 Ecomm/web 79 Private Public 21 $10B 2 8 25-35 76 24 76 CRM 24 2008 2015 ~1% ~5 % % of WW IT spend 59 ERP 41 3 ‘as a service’ models Infrastructure (IaaS) Platform (PaaS) Software (SaaS) Other2 56 58 42 Cloud (Public + Private) On premise Source: Gartner

Microsoft Dynamics CRM Momentum Market leader as recognized by Gartner & Forrester Over 1.4M users in 80+ countries with 40+ languages Over 23,000 customers from small to enterprise Over 10,000 Dynamics CRM Advisor Partners Over 65 service providers hosting Dynamics CRM solutions “Microsoft Dynamics CRM shines by offering flexibility for large and midsized organizations.” Bill Band “Buyers also like Microsoft Dynamics CRM’s usability, lower price, and its quick time-to-value compared with traditional CRM applications.” Bill Band

Enterprise Customers

Extend for Deeper Relevance Partner Relationship Management Distributor Relationship Management Asset Management Organizations need to extend the power of CRM to maximize other relationships Microsoft Dynamics CRM 2011 is easily customized to support Extended CRM scenarios Property Management Reseller Relationship Management Fleet Management Employee Relationship Management Case Management Contractor Relationship Management Task Management Supplier Relationship Management Event Management

What This Means for Solution Builders Respond Quickly to Customers High-tech Manufacturing CRM provides flexible, modular system for quick customizations Buy and Customize Financial Services (Insurance) 70 percent shorter development cycles Reduce Development Costs Three times faster delivery Total cost savings of approximately U.S. $2 million Professional Services -Legal Focus on Industry Functionality Wealth Management and Private Banking Focus on customer requirements, not application infrastructure Accelerated Sales Cycles Sales cycles shortened by 50% Lead flow increased by 125% Franchising Flexible Licensing Services and Support Information Services (MSDN®, TechNet, etc.)

Dynamics CRM Online Partner Revenue Opportunity High Tech Industry Customer 10 year SFDC customer elects replacement 4 month sales cycle 600 Online users 18 countries Partner leading with “Online” Nearly 3K seats this fiscal Partner Revenue Initial License $280k Initial Services $200k TOTAL: $480k* (*Includes Advisor Fee $112k)

Microsoft Enables Success Field Support: Account Management presence in thousands of Enterprise accounts Sales Support: Solution Sales Professionals supported by Technical Specialists and targeted Industry Managers Implementation Support: Microsoft Consulting Services (MCS) - Deep Microsoft technology implementation expertise available around the globe Profitability: The top half of our partners achieve an EBITDA of 17% - 25% on their Dynamics practice Over 13,000 AX customers from mid-sized organization to divisions of large enterprises

Next Steps Gain an Understanding of CRM 2011 and AX 2012 Product Capabilities and Development Roadmap Talk to Existing Dynamics Partners Connect with the Australian Dynamics Team on Additional Questions

Dynamics Lead Referral Program Earn 5% of licensing transaction by submitting Dynamics leads to Microsoft* Next Steps Become a member of the Microsoft Partner Network Agree to the terms of the Microsoft Dynamics lead Referral Agreement Submit leads to the Microsoft Dynamics Referral Program For more information talk to your Partner Account Manager or any of the Dynamics team at APC *: up to $20,000 per Dynamics Software transaction

Questions? Visit us at: Dynamics Showcase area