2. Stephen Kerr Business Development Manager, SMS&P Microsoft Financing v-steke@microsoft.com

3. Agenda Who is Microsoft Financing? Product Offer & Parameters Our Value Proposition Benefits to our Customers Benefits to our Partners How To… Getting Started with Microsoft Financing Questions & Feedback

4. Who is Microsoft Financing Operate in 10 countries –Including U.S., U.K., Canada, Netherlands, Germany & Australia Service Provider arrangement with De Lage Landen (DLL) –Provide back office support –Microsoft policies & direction Aim –Simple, easy and affordable financing solutions –Integrate easily with existing sales processes –Assist to close larger deals – now –Provide financing solutions to every customer

5. Product Offer License Financing –Enterprise Agreements, –Select L or L&SA, –Open License, & –MBS Total Solution Financing –Finance implementation &/or migration services, –ISV and/or 3 rd party software, –hardware –Must have a Microsoft component

6. Product Offer (cont) Simple loan finance agreements –Software, software & services, software/services & hardware –Minimum financed amount $15,000 –Loan terms from 2 years to 5 years Flexible repayment structures –Monthly, in arrears –Variable payments –Deferred payments Very competitive rates –Majority of deals between 7.5% & 9%

7. Simple = straightforward financing, no additional collateral Easy = High approval rates; fast turnaround for credit, documents and funding Affordable = Competitive rates without hidden fees or costs Microsoft brand Specialists in software and services Partner sales We Offer: Flexible credit Effective promotional sales tools Ease of use Attractive terms and rates A level field versus competition Value Proposition

8. Benefits To Our Customers Allows customers to acquire more software & services – sooner! –Purchase decisions based on needs, not on budget restrictions –Acquire total solution today, budget confidently over time –Match their expenditure with their usage –No large upfront payments Customers increase their spend when they finance!

9. Microsoft Financing In Action Microsoft Office Professional ($55,000) Microsoft Windows® XP ($22,000) Microsoft Windows Server TM ($4,000) Microsoft Exchange Server ($8,000) Services or other Microsoft Products ($11,000)

10. Do customers actually want financing? SMS&P Customer Survey: 299 respondents (UK) Importance of financing when purchasing an IT Solution 6% 22% 29% 22% 15% 6% 57% Upper 30%, Low 14% Percentage of Respondents 0%10%20%30%40%50% Absolutely critical Very important Somewhat important Not very important Not important at all Don’t know

11. Benefits To Our Customers (cont) Provide greater flexibility –Structure payments to match requirements Free up existing banking & credit facilities Reduced total cost of ownership –Invest in their business –Improve return on investment

12. Benefits To Our Partners Increased dollar value of customer contracts –Financed sales are, on average, up to 40% larger than traditional deals. –Create Up Selling & Cross Selling opportunities –Less discounting; focus on payments not on price Shorter sales cycle –Less client decision time Define future sales opportunities –Clearly defined payment cycles –Provide additional opportunities to discuss upgrade strategy

13. Benefits To Our Partners (cont) Stronger Client Relationships –Become a Total Solution Provider –Develop multi-level relationships within customer management –Protect your customers Microsoft Financing is very competitive –Aim is to support sales of Microsoft products Revenue recognition remains the same –Direct sales (eg, EA – no change) –Indirect sales – receive payment from DLL

14. How To…SELL Introduce Financing into your sales process early –Change focus to annual budget, not upfront price –Help expand the scope of the project Key client benefits –Get the solution you need – now –Match your expenditure to your usage –No large outlays –No residual values or balloon payments –Low interest rates, with NO fees –Simple, easy & affordable

15. How To… 1.Calculate Payments 2.Propose financing solution to our customer 3.Apply for credit 4.Complete documentation & invoice 5.Receive payment Calculate propose Apply Document & Invoice Receive Payment

16. How to…QUOTE 2 types of quotes –Annuity licenses (EA) –Upfront (MBS, implementation services) Annuity –In the interim, all quotes prepared by Microsoft Financing –Same day turnaround –Please provide Customer name License type Clearly state annual drawdown amounts Upfront –Download MSF calculator

17. How to…QUOTE (cont)

19. How to…APPLY & DOCUMENT Simple approval process <A$500,000 –‘one shot’ application form –24 hour turnaround >A$500,000 –Simple credit application form –DLL prepares loan agreement documents Partner document checklist All available online www.microsoftfinancing.comwww.microsoftfinancing.com Invoice –Microsoft invoice for EA –Partner invoice for indirect sales

20. Getting Started With Microsoft Financing Execute Partner agreement Strategic Roll Out –Engage with Partners –Sales and Account Management training –Process training –Develop and manage key metrics Start including in your sales process!

21. Further Information Visit www.microsoftfinancing.comwww.microsoftfinancing.com Call Partner Hotline 13 20 58 Contact your Channel Manager (Katrina or Chris) Contact Microsoft Financing Mid market and partners Steve Kerr, v-steke@microsoft.comv-steke@microsoft.com Enterprise, public sector Trevor Hudson, v-thuds@microsoft.comv-thuds@microsoft.com –Application and deal processing enquiries – 1800 799 673