Office 2010 “Broadcast is a life saver. Gone are the days of server time-outs and sending DVDs with large files to clients. Sharing information is crucial to our business, and Office 2010 makes that much easier.” Kathy Dufree CEO, TechHouse, United States “After spending just 20 minutes customizing my Quick Steps menu in Outlook, I was able to save about 40 hours per year— that’s what I call a return on investment!” Darina Vodrážková General Manager, DAQUAS, Czech Republic “We were blown away by the image editing in Word. It’s like two software applications in one. Our documents are so much slicker and more professional.” André Suthe CIO & Head of Controlling, Sorbion, Germany “Web Apps allows us to access everything we need—product and technical information—when working remotely. This saves us an hour per day and makes it easier to help our clients in less time.” Erik Thorsell President, Success Computer Consulting, United States “Slicers and Sparklines are incredibly easy to use, and so efficient in terms of extracting data and highlighting trends. We’re saving time and delivering better quality reports to our clients―faster.” Samir Greiss General Manager, Ondes et Rayons, United States Jeff Malec Director of Distribution

Why Your Customers Will Love Office The best productivity experience across PC, Phone & Browser WORK BETTER TOGETHER BRING IDEAS TO LIFE USE OFFICE ANYWHERE “It seems it doesn’t matter what you do today, what business you’re in, everybody is on the go so that’s important.” “Anything having to do with making things simpler and easier to use and employees spending less time, that’s the bottom line. That’s productivity.” “Instantly brainstorm and share, that happens an awful lot between myself and the contractors and also the clients.”

Top Selling Points for Office 2010 Best productivity across PC, Phone, & Web New, SMB-relevant, productivity features – Photo & Video Editing inline (PowerPoint, Word) – Professional-quality page layout tools (Word) – Webcast capabilities can replace Live Meeting or WebEx (PPT) – Business Intelligence tools (Excel) – SharePoint-like tools available via SkyDrive – OneNote is a powerful organizer AND a great collaboration tool Free access, using free Windows Live tools, to Office apps from anywhere on any device---did I mention free?

Lets Get Real: Meet John

Who is John? Small business owner who owns a regional Iron & Metal Brokerage company one of the oldest and largest scrap metal brokerage companies in the United States – Always on the go – Works in high volume (Tons), low margin business – 120 employees Constantly seeking ways to do more with less Worries about making payroll every month in a tight economy Currently has Office 2003 and Windows XP So why would John deploy Office 2010?

WORK BETTER TOGETHER John Takes Control of his and Calendar With new shortcuts & views in Outlook 2010 Ignore & Clean Up Mail Tips Ignore & Clean Up Shrink Your Inbox Contact Card John typically gets over 200 s per day, and his is overloaded, but in Outlook 2010, he uses “conversations” to organize threads, he “ignores” threads that he doesn’t really need to see, and he “cleans up” his in box eliminating unwanted . He has taken those 200 s and consolidated them into about 30 highly relevant threads that he reads and actions on in half the time! Ribbon Interface

BRING IDEAS TO LIFE John Creates Powerful Data Insights with Excel World class data analysis capabilities with ease of use CHALLENGE: Large volumes of data can be slow and cumbersome to analyze. NEW DATA ANALYSIS TOOLS: PowerPivot for Excel provides lighting fast query and sorting capabilities with hundreds of million of records. Sparklines convey trends for a string of numbers in a single cell. POTENTIAL SAVINGS/ EFFICIENCY GAINS : Rich data analysis is more easily accessible to more people and can eliminate the need to buy Business Intelligence software that can be costly or difficult to learn to use. Saves time identifying business trends. New SparklinesNew Conditional Formatting Icons POWERPIVOT FOR EXCEL ADD-IN Self Service Analysis Delivered Thru Excel & Slicers Work With Massive Amounts Of Data Improved Sharepoint Interoperability John was using Crystal Reports to perform historical market basket analysis for his customers and report on his business, but now that Excel has the ability to handle massive amounts of data with PowerPivot and present them with quick trending through Sparklines, he has moved all of his reporting directly into Excel.

John Shares Presentations with Others Instantly Using Broadcast Slide Show in PowerPoint 2010 WORK BETTER TOGETHER Appearance to viewers through the browser Appearance to presenter on the PC CHALLENGE: It is cumbersome to set up a virtual presentation for people outside your own organization. BROADCAST SLIDE SHOW: Present a slideshow directly from PowerPoint to anyone who can access a Web browser. Send an invitation with a web link and the recipient can follow along in their browser while you control the presentation from your PC. POTENTIAL SAVINGS/EFFICIENCY GAINS : Hold spontaneous meetings without the added expense or effort of third-party broadcasting tools. IT can keep security in mind by managing through Group Policy and choose between a locally-hosted broadcast service, a free service provided over the Internet, or both. Host on SharePoint or free internet service POWERPOINT BROADCAST John couldn’t afford a fancy web meeting product before Office 2010, but now he hosts presentations for new customers, holds a quarterly product update for all of his existing customers, and shares presentations with his employees when he works from home. These new options in Office 2010 have dramatically improved his communication options across his business.

USE OFFICE ANYWHERE John Works From Virtually Any Place or Device With New Office 2010 Web Apps Word Web App Excel Web App OneNote Web App PowerPoint Web App Host on premises with SharePoint Lightweight Editing High Integrity Viewing *Mobile functionality requires an appropriate device and Internet connection. Some functionality also requires Office Mobile 2010, which is not included in Office 2010 applications or suites. No loss of formatting or content from PC to browser Works across Internet Explorer, Firefox and Safari web browsers Before he had Office 2010, leaving the office meant that John left his applications behind. Now when John goes to the plane or on the road, he can open and edit his Excel forecast document while he is walking through the parking lot & send the update to the office or he can access his applications from the gym’s kiosk computer to make last minute changes to a document before it goes to the printer. All with the same look and feel as the Office applications on his office work PC.

Selling It

A More Simple Office Simplify Program Simplify SKU choices Better Base Productivity Offering than Works Move to Single Image for Consumer and Small Business Retail and OEM offerings are uniform From Seven to Three SKUs Better value proposition for entry level business Office Starter 2010 No Preinstalled Trial Base Productivity for consumer and business lines

Simplify the Skus $119 /$149$199/$279$349/$499 US ERP

Office 2010 Footprint on New PCs* General Availability HolidayBack to School Great coverage of most PCs running through Distribution! *Disclaimer: The data above is presented for illustrative purposes based on information received by Microsoft from some of our OEM partners.

Simplify the Program Office 2010 pre-loaded image Preloaded by OEMs on new PCs, including netbooks Includes images of all three Office 2010 suites Less work, more operational efficiency for resellers Activate with product key from OEM license for full product Purchase Product Key from boxed product or Product Key Card to activate purchased suite

Simplify for Resellers If you are Building a PC: Install the Single Image using the OPK tools Identify the PC as pre-loaded Sell the appropriate Office PKC to unlock the Image If You are Reselling a PC from MNA OEM: Determine if the PC has Office single image pre-loaded and sell the appropriate Office PKC If Office single image is not pre- loaded sell the appropriate FPP Ensure the best customer experience

Starter Edition

Striking the Balance with Starter 76% of students use PPT 62% of small businesses rank Outlook as important 76% of students use PPT 62% of small businesses rank Outlook as important Not a download, no-reimaging, Vista and Win 7 only Starter name, with basic and limited positioning Includes advertising Targeted feature removal Drive Usage Minimize Cannibalization Word & Excel only meets basic needs of home users New PCs only Office Brand & Experience Non Obtrusive ad design Limited Feature Set Applications Distribution Monetization Feature Mix Positioning Key Levers

Do Not Market Office Starter 2010 However, educate your resellers about all four “non-starters” No PowerPoint 1 No Outlook 2 Includes Advertising 3 Reduced Functionality 60% of people say they need at least one missing feature 4 Attach Office License=Reseller Revenue Make sure your sales people understand & communicate all four non-Starters Missing any one of these 4 points doubles the risk of cannibalization of paid Office suites

Reduced Functionality – Tabs missing. Word: View, Review, References. Excel: View, Review, Data. What is Office Starter 2010 – Visual Walk-Through Word Starter shown below. Cannot customize quick access toolbar or ribbon. Additional upsell opportunity in Backstage Full fidelity viewing for features not in Starter, such as SmartArt Upsell button to purchase full Office. Ad, task pane, backstage also offer upsell. Right task pane is persistent. Ad is persistent, rotates every 45 seconds when product in use. Microsoft Office ads exclusively at launch.

Selling Microsoft Office 2010 with New PCs Promoting Up-Sell in Office Starter 2010 PurchasePurchase In-product upgrade: Ribbon Ribbon Task pane Task pane Ad unit Ad unit Backstage Backstage In-product upgrade: Ribbon Ribbon Task pane Task pane Ad unit Ad unit Backstage Backstage

Small and Medium Businesses Knowing what License to Offer YesYes Attach PKC at POP Sell Office FPP With disc media NoNo Up-SellUp-Sell YesYes Business Owns >5 PCS Home Business Or Business NoNo Buying NEW PC (<5) with Office Single Image YesYes Sell VL Open Bus. Or Open Value

Office Training Sales & Technical training curriculum – 2 courses Includes short video demos (<1 min) and partnercasts (<3 min each)

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