Microsoft Confidential2

3

Paul Hamerman, China Martens, Forrester Research Inc., May 2011 ”Microsoft Commits to ERP in the Cloud” 4 Product-centric companies with between 100 and 999 employees, and with annual revenue between $50 million and $1 billion Magic Quadrant for Midmarket ERP The Magic Quadrant is copyrighted December 17, 2010, respectively by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the "Leaders" quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. The Magic Quadrant graphic was published by Gartner, Inc., as part of a larger research note and should be evaluated in the context of the entire report. The Gartner report is available upon request from Microsoft.

5

6 Ent. Manageability & Reporting  RapidStart Service (incl. Retail)  Information Source Service  Service Plans  Financial reporting

 Simplified international deployments  Master Data Management  Contextual & Role Based Business Intelligence.  Completion of all local compliance features, adding support for 11 additional countries  (BR, CZ, CN, EST, LAT, LIT, IN, JP, PO, RU)  Integrated sales channel mgmt. incl. web storefront and catalog mgmt.  Complex budget formulation through Excel  Support for US Payroll  Advances In HRM, improving employee lifecycle management (position control & budget integration) 7

10