Annuity Renewal Discussion Vicky McCullough Accordo Group Vicky McCullough Accordo Group

Who are Accordo Group Software licensing consultants Do NOT sell licenses Work with various Microsoft subs around the APAC region Carry out annuity renewal call downs to NZ and Australian customers on behalf of Microsoft Have gained an understanding of what customers are experiencing Software licensing consultants Do NOT sell licenses Work with various Microsoft subs around the APAC region Carry out annuity renewal call downs to NZ and Australian customers on behalf of Microsoft Have gained an understanding of what customers are experiencing

Field Feedback What objections have you come across?

Learnings from Customer call downs Value of annuity generally not at all well understood Often are not engaged with their reseller (MM mainly) Too difficult and too much time involved for them to assess current position, let alone options Feel they are in a position of comfort with versions effectively “in the bank” Are often choosing to not renew but not making that decision on the basis of financial considerations Value of annuity generally not at all well understood Often are not engaged with their reseller (MM mainly) Too difficult and too much time involved for them to assess current position, let alone options Feel they are in a position of comfort with versions effectively “in the bank” Are often choosing to not renew but not making that decision on the basis of financial considerations

Agenda It’s really not rocket science – the basic facts! Understanding the customer: –Where they are already at with this process? –Their entitlements –Their current deployment position –Their technology vision Dealing with versions in the bank! Positioning SA Benefits Making sense of all this – financial modelling! Help the customer understand the financial impact of non-renewal Track the order! It’s really not rocket science – the basic facts! Understanding the customer: –Where they are already at with this process? –Their entitlements –Their current deployment position –Their technology vision Dealing with versions in the bank! Positioning SA Benefits Making sense of all this – financial modelling! Help the customer understand the financial impact of non-renewal Track the order!

It’s really NOT rocket science! Remember the rules of thumb –If the customer is going to upgrade their apps or sys products within 3.5 years – SA will be cheaper! –If a customer is going to upgrade their server products within 4 years - SA will be cheaper! Believe in it! It is a viable cost effective solution for most customers! NZ renewal rate in MM exceeds 75%. Aust renewal rate exceed 80% Don’t forget – customers appreciate someone else making sense of it all! And remember – if the customer doesn’t renew, we likely won’t see revenue from them for up to 3 years! Remember the rules of thumb –If the customer is going to upgrade their apps or sys products within 3.5 years – SA will be cheaper! –If a customer is going to upgrade their server products within 4 years - SA will be cheaper! Believe in it! It is a viable cost effective solution for most customers! NZ renewal rate in MM exceeds 75%. Aust renewal rate exceed 80% Don’t forget – customers appreciate someone else making sense of it all! And remember – if the customer doesn’t renew, we likely won’t see revenue from them for up to 3 years!

This is just like a recipe! First you need to do is gather all the ingredients! Then you need to bake the cake! And never forget – the customer is always more confused than you are! First you need to do is gather all the ingredients! Then you need to bake the cake! And never forget – the customer is always more confused than you are!

Understanding where the customer is at? Our process with MM customers (up to 1,000 seats) Always ask first where their thinking is at! They may already have decided to renew– if so, establish what they will be renewing and when Would they like some help making sense of all the information and the options available to them? Have they seen the communication? Did they understand it? Do they realise the importance of the 90 day window? Are they engaged with their reseller Our process with MM customers (up to 1,000 seats) Always ask first where their thinking is at! They may already have decided to renew– if so, establish what they will be renewing and when Would they like some help making sense of all the information and the options available to them? Have they seen the communication? Did they understand it? Do they realise the importance of the 90 day window? Are they engaged with their reseller

Understanding the customer’s current entitlement Before you call, make sure you get clear in your mind what versions they are entitled to as a result of their expiring UA/SA Understand how many agreements they have coming up for renewal and when – is there an opportunity to rationalise their licensing agreements? Don’t underestimate what a big help this is for customers! Before you call, make sure you get clear in your mind what versions they are entitled to as a result of their expiring UA/SA Understand how many agreements they have coming up for renewal and when – is there an opportunity to rationalise their licensing agreements? Don’t underestimate what a big help this is for customers!

Customer’s current deployment position Spend time with the customer understanding what they have deployed today! This is important information for Microsoft! This will also help you position and understand future upgrade cycles with the customer Spend time with the customer understanding what they have deployed today! This is important information for Microsoft! This will also help you position and understand future upgrade cycles with the customer

Customer’s technology vision Get an understanding from the customer of their technology vision preferably on a product by product basis! Be prepared that they may not know! If they don’t, get clarity from them on when they deployed their last version upgrade Get an understanding from the customer of their technology vision preferably on a product by product basis! Be prepared that they may not know! If they don’t, get clarity from them on when they deployed their last version upgrade

Dealing with versions in the bank Don’t be concerned that they might be entitled to versions later than they have deployed! Customers will often react with this – this is part of the process and a very valid concern but is completely able to be overcome and positioned positively! Take them out of their current comfort zone Remember to position the opportunity for them to effectively have versions in the bank at the end of their next agreement Focus on cost of Year 4 in L only strategy! Don’t be concerned that they might be entitled to versions later than they have deployed! Customers will often react with this – this is part of the process and a very valid concern but is completely able to be overcome and positioned positively! Take them out of their current comfort zone Remember to position the opportunity for them to effectively have versions in the bank at the end of their next agreement Focus on cost of Year 4 in L only strategy!

Financial Modelling Now you have all the ingredients! Making sense of all the information –price up their various options –make a recommendation Be aware you may need to model out as far as 6 years! Incorporate and price the value of the SA Benefits if needed Now you have all the ingredients! Making sense of all the information –price up their various options –make a recommendation Be aware you may need to model out as far as 6 years! Incorporate and price the value of the SA Benefits if needed

SA Benefits Our experience is that customers are often NOT aware of these! Focus on particularly: –The Home Use Program –Training Vouchers –Problem Resolution Support –eLearning Use explore.ms SAB Report and the Microsoft SAB calculator If you need to, price up the benefits for them Note this is viewed by customers as the icing on the cake and not the reason for renewal! Our experience is that customers are often NOT aware of these! Focus on particularly: –The Home Use Program –Training Vouchers –Problem Resolution Support –eLearning Use explore.ms SAB Report and the Microsoft SAB calculator If you need to, price up the benefits for them Note this is viewed by customers as the icing on the cake and not the reason for renewal!

L only – don’t be afraid This can be a viable option for some customers – particularly if they are leaning away from Microsoft products! If there is a competitive threat – advise Microsoft! BUT ensure they understand the impact of Year 3 or 4 costs! This can be a viable option for some customers – particularly if they are leaning away from Microsoft products! If there is a competitive threat – advise Microsoft! BUT ensure they understand the impact of Year 3 or 4 costs!

Track that order! Once you get agreement from the customer – forecast the revenue opportunity and the month it is due to fall Track the order, because if the customer doesn’t place it in time they may lose the opportunity to do so! Absolutely stay in touch with the customer throughout the whole process! Once you get agreement from the customer – forecast the revenue opportunity and the month it is due to fall Track the order, because if the customer doesn’t place it in time they may lose the opportunity to do so! Absolutely stay in touch with the customer throughout the whole process!

3 Points to Take Away Challenge the Customer Follow a methodology Stay with the customer Challenge the Customer Follow a methodology Stay with the customer

Software Asset Management (SAM) for Customers Microsoft offer support for SAM through: –SAM seminars promotion – let us know if you are running a SAM seminar or want to –SAM collateral - printed SAM guide –SAM on-line Website Licensing Compliance Service in MM Managing security updates is driving people to better understand their software management processes Microsoft offer support for SAM through: –SAM seminars promotion – let us know if you are running a SAM seminar or want to –SAM collateral - printed SAM guide –SAM on-line Website Licensing Compliance Service in MM Managing security updates is driving people to better understand their software management processes

SAM - What is available for Partners? SAM online guide –On-line interactive tutorial for each section –Partner/Customer ready tools - word & PDF format –Templates/scripts –Opportunity to be listed as referral partners Be listed as a provider of services or tools Updated SAM guide being printed now and available for customers in Sept. Launch of Licensing/SAM competency in Q2/Q3 Pick up an Intellectual Property Q&A from Licensing Lounge or speak with License Compliance Manager, Suzanne Caldwell SAM online guide –On-line interactive tutorial for each section –Partner/Customer ready tools - word & PDF format –Templates/scripts –Opportunity to be listed as referral partners Be listed as a provider of services or tools Updated SAM guide being printed now and available for customers in Sept. Launch of Licensing/SAM competency in Q2/Q3 Pick up an Intellectual Property Q&A from Licensing Lounge or speak with License Compliance Manager, Suzanne Caldwell