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BPIO University Awareness Briefing Microsoft Partner Sales Readiness Workshop FY09

Guidance Slide How should I prepare for this presentation? The expected duration of this presentation is approximately 1 hour. Consider the length of your presentation while selecting slides. Depending upon the material, presenters can generally cover 30 slides during a one-hour presentation. Choose slides that are relevant to the subsidiary’s needs, and customize slides as necessary. Remove all guidance slides (slides with a white background) prior to presenting to a customer. 3

Balance Needs in a Changing Workplace Drive insight from complexity Work with customers and partners Comply with regulations Embrace Millennial work-styles Interoperability with LOB systems Consolidate redundant investments Protect intellectual property Plan for the future Meet changing business needs Manage IT cost, complexity 4

Microsoft Business Productivity Infrastructure 5

Amplify the Impact of Your People Delivery choice Delivery choice Simplified management Simplified management Increased security Increased security Open and extensible platform Open and extensible platform Innovative productivity tools Innovative productivity tools Rich role and work-style choices Rich role and work-style choices Easily connect people and info Easily connect people and info PC, phone, and browser PC, phone, and browser 6

Amplify the Impact of Your People Microsoft Online Services Common directory and presence Policy enforcement, DRM Policy enforcement, DRM OBA services OBA services Results-oriented, Fluent ™ UI Results-oriented, Fluent ™ UI Role-based MySites Role-based MySites LOB data surfaced in Office LOB data surfaced in Office Outlook®, Outlook Mobile, OWA Outlook®, Outlook Mobile, OWA 7

Amplify the Impact of your People 8

Easy, Powerful IW Experiences Office accelerates widespread impact Open Document File Format Enables Interoperability with Different Systems to Unlock Value in IT Investments Improve adoption of innovative solutions thanks to an uninterrupted user experience and achieve high return on investment Start workflow from Word, Excel, PowerPoint Publish to Excel Services from Excel Receive slide updates in PowerPoint Reduce training costs by providing the same familiar Office applications as the front-end to business processes Increase end-user productivity and efficiency with convenient communication and collaboration features within the document authoring tools View presence in Outlook and in documents Initiate communication from within the same Office tools Workflow embedded into Word 2007 Presence embedded into Outlook

Office Professional Plus 2007 brings together a host of innovations designed to help users work more efficiently and effectively so that they and their organizations can deliver better results faster: Increases individual impact Combination of advanced capabilities and the new Office Fluent user interface drives gains in efficiency and effectiveness Simplifies working together Enhanced out-of-the-box integration with Microsoft Windows ® SharePoint Services makes teamwork more efficient Improves business insight Broad array of advanced information search, management, and analysis tools Streamlines processes and content management New and enhanced electronic forms capabilities and SharePoint Server integration 10 Easy, Powerful IW Experiences Key customer benefits

Easy, Powerful IW Experiences Connect from within any application or work product Microsoft Office Communicator, a unified communications client Quickly find the person you need and the best way to communicate using enterprise instant messaging (IM), VoIP, and audio or video conferencing Work from anywhere and log on to Office Communicator 2007 without needing to connect to your corporate network first Business Productivity Infrastructure Sales Finance Operations Communicate from within the Microsoft Office suite of applications, including Outlook, SharePoint, Word and Excel. Whether making a phone call directly from Outlook or identifying the availability of a document’s author, users can find who they need and the best way to reach them 11

Video Enterasys Networks 12

Value and Choice Delivery choice Simplified management Increased security Increased security Open and extensible platform Open and extensible platform 13

Rapid implementation Anywhere-access Rich customization MS Hosted Control & ownership Strategic capabilities Advanced integration On-PremisePartner Hosted Outsourced IT Industry / Vertical configuration Packaged solutions Rapid implementation Anywhere-access Rich customization MS Hosted Control & ownership Strategic capabilities Advanced integration On-PremisePartner Hosted Outsourced IT Industry / Vertical configuration Packaged solutions 14 Microsoft Software+Services The power of choice

IT Choice for Flexibility and Control Hosted Service Rapid scalability Advanced manageability Advanced manageabilityOn-Premise Control and ownership Control and ownership Customization Customization 15

$20B Revenue $20B market for SaaS sales by 2011 (IDC) 32% Market Growth 32% CAGR WW SaaS forecasted, (IDC) 25% New Software Share 25% of new business software will be delivered as a service by 2011 (Gartner) Up to 6X Services Revenue for Partners (Institute of Partner Education & Development 2008) Up to 6X Services Revenue for Partners (Institute of Partner Education & Development 2008) Recurring revenues Up to 50% of Partner’s revenue will be recurring value-added services Cost savings 40% partner savings on customer support SharePoint SharePoint consulting seen as #1 growth opportunity 16 Market Opportunity for Hosted Services Why you shouldn’t hesitate

Billing FeesFees SaleSale 18% year one 12% Net-add 6% Residual 12% Net-add 6% Residual MicrosoftPartnerCustomer Example: 250 seats Year One (18%)$8,100 Subsequent Years (6%)$2, Business Productivity Online Suite Partner model

Exchange Online Standard - $10 USL/month Office Communications Online (IM & Presence) - $2.50 USL/month Office Live Meeting Standard - $4.50 USL/month SharePoint Online Standard - $7.25 USL/month Deskless Worker Suite $3 USL/month Business Productivity Online Suite Online Suite $15 USL/month Exchange Online Deskless Worker - $2 USL/month SharePoint Online Deskless Worker - $2 USL/month USL = User Subscription License 18 Business Productivity Online Suite Pricing

Video Recycled Energy Development 19

Extensible Role-Based Offerings Business Productivity Infrastructure Sales Finance Operations 20

Products for a Future-Ready Foundation Business Productivity Infrastructure Extended collaboration, mobility desktop Business productivity server , calendar, unified messaging server Presence, IM, Web conferencing, VoIP server 21

Customer Testimonials “It’s very rare that an IT organization has the ability to provide a solution that goes beyond user expectations and gets ahead of user requests.” … “We have no doubt that our users will use these tools to create very innovative ways to communicate more effectively, close business, solve problems, and improve efficiencies.” Chris Murphy, Director of IT “The 2007 Microsoft Office system offers productivity gains beyond the improvements in the individual Office programs.” … “We want to use the familiar Microsoft Office desktop programs to deliver business information to the desktop through business intelligence, workflow, and collaboration applications.” Randy Benz Vice President and Chief Information Officer 22

ECM Collaboration Search UC BI Build a Strategic Investment Roadmap BasicStandardizedRationalized Dynamic interoperable, software- powered business communications Real-time, strategy-driven closed loop analysis Unified information access infrastructure Federated document and records management with integrated search Federated collaboration outside firewall Basic and traditional phone Data silos and manual analysis Simple keyword search of Web and documents Content on files shares and poor discoverability File-share-based collaboration and ad-hoc teaming 23

BPI Optimization Model Build a roadmap for strategic technology investment 24 Basic & traditional phone Integrated, software- powered business communications Data silos & manual analysis Real-time, strategy-driven closed loop analysis Simple keyword search of web & documents Unified information access infrastructure File-share based collab & ad-hoc teaming Federated collaboration outside firewall Content on files shares & poor discoverability Federated document and records management with integrated search ECM Collaboration Search UC BI identify where you are identify where you want to be

Helping CIOs Show Leadership And Value Freeing Resources More Efficient Cost Center Standardized content and communication infrastructure with limited management and provisioning Business Enabler Fully managed and provisioned infrastructure Cost Center Content chaos; manual processes; uncoordinated infrastructure. Strategic Asset People-ready infrastructure with predictable service levels 25 The IO Journey frees resources and provides the foundation for organizational agility

Balance IT Costs and Business Value Addressing both sides of the equation Time $ IT Costs (conceptual) Business Value Returned (conceptual) 26

Is a key driver of business productivity and growth Fuels profitable revenue growth Gives managers more insight and control Encourages employee productivity Benefits of Optimized IT Evidence of optimization value Grow revenue 6.8% faster per year than their peers in the bottom 25% of IT capability. Enjoy 23% higher revenue per employee Enjoy 23% higher revenue per employee than their peers in the bottom 25% of IT capability. Achieve superior productivity Achieve superior productivity (a company’s IT infrastructure is a key determinant). significantly better insight into, and control over, key dimensions Have significantly better insight into, and control over, key dimensions of their business. Source: Enterprise IT Capabilities and Business Performance, Marco Iansiti, David Sarnoff Professor of Business Administration, Harvard Business School George Favaloro, Principal, Keystone Strategy, Inc-March 2006, Optimized IT Companies in the top 25% of IT capability 27

5%5% 94%94% Approximately 12,000 accounts profiled as of 6/15/ %72% 84%84% 91%91% No secure or IT Managed IM infrastructure No secure or IT Managed IM infrastructure No intranet/portal solution No intranet/portal solution No Web-based data collection or workflow No Web-based data collection or workflow No search tools for workspace or portals No search tools for workspace or portals 91%91% 61%61% 41%41% No integrated , fax, or telephony No integrated , fax, or telephony No mobile access to data or search No mobile access to data or search No policy-based data retention No policy-based data retention No automated ETL tools BPIO Profiling Results Identifying opportunities for growth 28

KNO11_Capossela 29 *Source: IDC 2007 Partner Services Opportunity is Growing

© 2008 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. partner.microsoft.com/msbpiou