The Power of Possibilities Chris Ridd Dynamics Business Group Director

Agenda Why is Dynamics an EXCITING business? Where are the OPPORTUNITIES for our partners? How will Microsoft SUPPORT you?

Agenda Why is Dynamics an EXCITING business? Where are the OPPORTUNITIES for our partners? How will Microsoft SUPPORT you?

Dynamics Excitement FY09 Business Summary Highlights  ERP Revenue Growth – yes, we grew!!  #1 mature subsidiary in Growth and Budget Attainment  Enhancement renewals at 88%  The CRM & xRM phenomenon  Exceeded new certified consultants targets  Improved Partner and Customer Satisfaction

Dynamics Excitement Industry Recognition ERP

Dynamics Excitement Industry Recognition CRM Magic Quadrant for Sales Force Automation Robert P. Desisto, Gartner, Inc. July 15, 2008 The Magic Quadrant is copyrighted April 3, 2009 and July 15, 2008, 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. Magic Quadrant for CRM Customer Service Contact Centers, 2009 Michael Maoz, Gartner, Inc. April 3, 2009

Dynamics Excitement Platform & Services pull-through Want to increase your Revenue? An Example of Customer with 100 FTE 20 Dynamics ERP Users $90, DCO-MOSS Users $39, Dynamics CRM Users $80,100 License Revenue - From $90k to $209k plus BREP Services Revenue - From $90k to $400k Selling the Microsoft Stack for Competitive Advantage Selling the Microsoft Stack for Competitive Advantage: Tim Shaw APC48, Thurs pm, Arena 1A

Dynamics Excitement Award winning partners – WW Partner Conference President’s Club Inner Circle Special Recognition of the top 5% of Partners worldwide

Dynamics Excitement Award winning partners – WW Partner Conference ISV Innovation (WW) & ISV Dynamics (APAC) Partner of the Year Dynamics Regional Partner of the Year for Asia Pacific Microsoft Dynamics AX Partner of the Year- Worldwide Finalist

Dynamics Excitement Award winning partners – APC Finalists Microsoft Dynamics, CRM Partner of the Year Microsoft Dynamics, ERP Partner of the Year Microsoft Dynamics, Industry/Vertical Solution Partner of the Year

Dynamics Excitement New Partners in FY09

Agenda Why is Dynamics an EXCITING business? Where are the OPPORTUNITIES for our partners? How will Microsoft SUPPORT you?

Dynamics Opportunity Market Position and Outlook for FY10 Overall Opportunity The broader economy posed significant challenges in FY09 FY10 projections are conservative, but… Dynamics provides a strategic opportunity in terms of growth and the ability to protect the stack Significant opportunity for Microsoft to gain share from competitors in both ERP and CRM ERP Addressable Market WW ERP midmarket represents an U$18B addressable market, Australia is U$218M Mid-market is still highly fragmented market by geography and industry, with single-digit growth Majority of Mid-Market ERP providers are declining Y/Y FY10 will see us gain market share as buying cycles lengthen and 3 rd tier vendors struggle CRM Addressable Market WW CRM addressable market is $9.4B, Australia is U$149M SaaS representing the fastest growing area with +30% CAGR to FY11 FY09 Dynamics CRM revenues in Australia were above budget and strong double digit growth. Enterprise segments represent over 75% CRM FY09 revenue and continued focus in FY10 Business Growth with Dynamics in this Economic Climate: PWC APC21, Wed pm, Room 6

Dynamics Opportunity FY10+ Industry Focus Microsoft Dynamics® POS Microsoft Dynamics® ERP Microsoft Dynamics® CRM Consumer Goods (Food, Beverage/Liquor) Agriculture, Forestry & Fishing Specialty Retail Insurance Trans & Logistics Banking Aged & Community Care Local & State Government Arch., Eng. & Related Svs Education Industrial Equipment Oil & Gas Chemicals Cap. Markets & Securities Real Estate Dynamics in Public Sector: Our Shared Opportunity: B.Holder APC60, Thurs pm, Room 9 Dynamics CRM for FSI & Prof Services: Tim Shaw/Jon Farmer APC36, Thurs am, Room 9

Dynamics Opportunity Transforming Businesses with xRM Delivers new price-to-value equation One license. Many applications. Drives new partner opportunities – Deploys on-premise or on-demand – 5-10x faster than custom development – Deliver custom solutions (VAR/reseller) and repeatable solutions (ISVs) – Platform for legacy application consolidation and modernisation Enables rapid development, deployment and management of multiple line of business applications Vendor Management Asset Management Employee Management Program Management Supplier Management Property Management Recruit Management Project Management Contractor Management Fleet Management Resource Management Product Management xRM Platform Shared Resources & Shared Environment Partnership Management Contract Management Lifecycle Management Customer Management Grant Management Licensing Management Legislation Management Task / Activity Management Driving Market Leadership in CRM and xRM: R.Dembecki/J.Farmer APC67, Thurs pm, Room 9

Dynamics Opportunity Beating the Competition “Microsoft Dynamics ERP gives us the flexibility to do things that our (Sage) MAS 90 package couldn’t do. It has a lot of potential that we can tap into as we continue to grow.”- Fred McKay, (CTO) CTS Cement Epicor’s Q1 CY09 license revenue declined 29% YOY “Some of our products have fallen behind the technology curve and need increased R&D investment.” – Motasim Najeeb (CTO), Sage N.A. "It is taking longer to close deals, new customers are signing smaller contracts and existing customers are not adding new features as quickly as a year ago.”- Marc Benioff (CEO), SFDC “SAP is fooling the market because it claims that Business ByDesign is a SaaS solution, when really it is a big scandal. Ask SAP to convince an analyst it can be scalable.” - Stefan Reid, Forrester Research “One year after raising many prices by 20 percent or more, Oracle is once again raising prices--by 40 percent for certain products.” – Dave Rosenberg, CNET News Competing with Dynamics for FY10 and beyond: Matt Sheard APC74, Friday pm, Room 9 Driving Market Leadership in CRM and xRM: R.Dembecki/J.Farmer APC67, Thurs pm, Room 9

Dynamics Opportunity Existing Customer Customer LifeCycle Renew Unleash & Re-educate Welcome & Activation Welcome & Activation BenefitUsage Why important? Key gauge of Product and Customer Satisfaction Revenue Opportunity Keep competition out!! Proactive Loyalty initiatives Welcome & activation call-downs CustomerSource awareness & benefits “Unleash your Potential” campaign Re-invigorate “Dynamics in Focus” with user group-in-a-box for partners Executive Briefing Centre touch Outcomes Maximise Renewal Rate to 90% Increase Existing ERP License revenue Increase Customer satisfaction rates

Agenda Why is Dynamics an EXCITING business? Where are the OPPORTUNITIES for our partners? How will Microsoft SUPPORT you?

Dynamics Partner Support Your Satisfaction with Microsoft A year of extremes! –1 st wave up +17 points –2 nd wave down -16 points Key Areas you told us we need to improve....What we are doing about it.... Demonstrates an understanding of my business Stronger Executive connections PAM training on best practices in running Partner Executive Business Reviews (Sept 09) Works to resolve problems Operations (APOC) live chat launched Monthly Dynamics Hour Live meetings Six Sigma field improvement project launching AM connects and communicates with me Consistent rhythm of the relationship Quarterly Exec updates Monthly Live Meetings & satisfaction check in’s. Communicates the value of partners All Dynamics roles carry Partner Satisfaction metric New lead process launching (Industry & vertical solution focus). Policies and procedures applied consistently Marketing allocations – more transparency. Alias to be provided to capture feedback YoY +1% Improvement

Dynamics Partner Support Helping you Prospect Demand generation focus –Inside Solution Sales (ISS) team –New “Click to Chat” service launched Partner & Sales alignment –Partner Satisfaction metric for all Dynamics roles –Increased PAM coverage on Dynamics –Sales excellence focus on PAM function Increased Sales focus –Pre-sales roles now part of Sales Organisation –Deal-Based Compensation & S+S accelerators –Investments in sales excellence Marketing investments –70% of marketing budget through partners –Marketing Services Bureau for partners –Up-skilling on marketing disciplines via Academy

Dynamics Partner Support Helping you Compete PartnerSource Competitive Discussion Guides, Case Studies & Win/Loss Reports Analyst Evidence Toolkit Sales Support Technical Sales & Compete Assistance Hotline on Microsoft.com Case studies Analyst Reports, Customer Evidence and Questions to Ask the Competition Training & campaigns Salesforce.com compete training in Oct 09 Smart Move, Siebel/Oracle migration & CRM “Power of Choice” campaigns xML awareness roadshow to CXO audience in Q2

Dynamics Partner Support Helping you Go Vertical Intellectual Property –Clear statement of directions by product –Developing replicable IP as platform (eg Citizen Services Platform) –Market analysis, coverage and capacity planning Dynamics team alignments –Industry PAM (Katherine Le Count) –Solution Specialists aligned to Industry –Local & Global Industry roles –Developer Platform Evangelist (DPE) advisor (Catherine Eibner) Partner Programs –Microsoft Partner Network benefits, requirements and branding –Certified for Microsoft Dynamics (CfMD) branding Business development –Marketing support – prioritised for partners with vertical solutions –Vertical Solution representation on MS Solution site –ISV Embed Agreements –Lighthouse team and POC support Partner Success with Certified for MS Dynamics: C.Bowman & C. Eibner APC86, Friday pm, Room 7 Accelerate your success: Industry Solution Market Approach: B.Holder APC38, Thurs pm, Room 6

Dynamics Partner Support Helping you Implement Microsoft Dynamics Sure Step –now available to all Dynamics Partners Microsoft Services –Premier Foundation & Health Check Services –Architecture & Design Assessments Partner Technology Advisor –Tim Shaw across Dynamics suite –Integration with Classic PTA functions Readiness services –Microsoft Partner Academy –Partner Development Centre (PDC) with Carpe Diem Partner Support offerings –Revamped under new Microsoft Partner Network program Partner Developer/ Architect Partner Marketing Specialist Partner Marketing Specialist Partner Sales Specialist Partner Sales Specialist Partner Project Manager Partner Project Manager Partner Application Consultant Partner Owner/ Manager Partner Presales Specialist Partner Presales Specialist Partner Technology Academy Academy Partner Marketing Academy Academy Partner Sales Academy Academy Partner Project ManagementAcademy ManagementAcademy Partner Solution Academy Academy Partner Leadership Academy Academy Partner Presales Academy Academy Dynamics Partner Academy Successful Dynamics implementations in the Enterprise: Matt Koopmans APC55, Thurs pm, Arena 1A Dynamics Channel Model and Your Opportunities: P.Roworth/J.Edwards APC07, Wed pm, Room 6 APC14, Wed pm, Room 7

Call to Action Expand your Network – Microsoft and Partners Review your go-to-market strategy around growth, vertical focus & stack integration Review Sales and Implementation methodologies to achieve excellence Understand messaging and Competitive Resources to help you compete Adopt Customer Lifecycle approach to Existing Customer base Drive increased Customer References Understand & leverage new Dynamics Partner program resources Discuss and provide your Feedback with us

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