2. Nick Mayhew Group Manager, Partner Strategy Stefan Jansen Hosting Manager Christian Longstaff Partner Marketing Manager

3. Today’s Presentation Purpose Clarify Microsoft’s Software + Services strategy and outline how partners can engage Topics Introduction to Software + Services ISV Opportunity Hosting Perspective MS Online Q&A

4. Market Opportunity for Hosted Services 32% CAGR for Worldwide SaaS forecasted, 2007-2011 (IDC) 25% of new business software will be delivered as a service by 2011 (Gartner) SaaS is forecasted to exceed $20 billion in revenue by 2011 (Yankee Group) 8% CAGR for on premise

5. Software + Services Platform Computers Networks Building Block Services 3 rd Party Apps & Solutions Online Services Live Services Datacenters

6. Rapid implementation Anywhere-access Rich extensibility MS Hosted Control & ownership Strategic capabilities Advanced integration On-PremisePartner Hosted Outsourced IT Industry / Vertical configuration Packaged solutions Rapid implementation Anywhere-access Rich extensibility MS Hosted Control & ownership Strategic capabilities Advanced integration On-Premise Partner Hosted Outsourced IT Industry / Vertical configuration Packaged solutions The Power Of Choice Microsoft Software + Services

7. A Changing Landscape

8. ISV Call To Action – Taking S+S to Market I n n o v a t e C o n s u l t i n g & T r a i n i n g P a r t n e r w i t h a H o s t e r H o s t i n g I n c u b a t i o n D o n ’ t p r o v i d e “ c o m m o d i t y s e r v i c e s ” B u n d l e e v e r y t h i n g S e l l b y t h e s e a t T a i l o r t h e o f f e r i n g S o l u t i o n s d e s i g n e d f o r e a c h c u s t o m e r

9. Rapid implementation Anywhere-access Rich extensibility MS Hosted Control & ownership Strategic capabilities Advanced integration On-Premise Partner Hosted Outsourced IT Industry / Vertical configuration Packaged solutions The Power Of Choice Microsoft Software + Services

10. Full Integration Vertical Apps LOB Own App Full Integration Vertical Apps LOB Own App Managed Services Hoster Custom Solutions Managed Services Hoster Custom Solutions Partner Hosting Opportunity WS 08 Hyper V SQL 08 WS 08 Hyper V SQL 08 System Center New Markets Less Expenditure Recurring Revenue New Markets Less Expenditure Recurring Revenue Web Hoster Incremental growth Web Hoster Incremental growth WS 08 Hosted CRM HMC - Exchange Targeted variations Branding Control Expanded reach Targeted variations Branding Control Expanded reach Private Label Hoster VAR/SI Partnership Private Label Hoster VAR/SI Partnership Core Application Communication Services Increased ARPU Core Application Communication Services Increased ARPU Application Hoster Trusted Advisor Application Hoster Trusted Advisor OCSOCS SharePointSharePoint ExchangeExchange WS 08 Hosted CRM 3 rd Party Apps

11. SPLA Changes for Service Providers Aligning price of MOSS SAL with Online Reducing by approx. 19% Aligning price of OCS SAL with Online Reducing by approx. 44% Adding a Suite SAL that aligns with BPOS 38% discount on standalone Enable customers to bring their own CAL to SPLA Discounted SALs for Exchange, MOSS, OCS, Suite *: available from Oct 1; final pricing to be determined and communicated by Microsoft and SPLA Reseller

12. Hoster / Service Provider: Call To Action B u n d l e D i f f e r e n t i a t o r s I n Y o u r O f f e r s P a r t n e r w i t h P a r t n e r s L e a r n a b o u t S P L A p r o g r a m a n d c h a n g e s O b t a i n H o s t i n g C o m p e t e n c y C o n t a c t : H o s t A U @ m i c r o s o f t. c o m

13. Rapid implementation Anywhere-access Rich extensibility MS Hosted On-Premise Partner Hosted The Power Of Choice Microsoft Software + Services

14. Microsoft Online Services Enterprise class software delivered via subscription services hosted by Microsoft and sold with partners

15. New Customers: 70% of sales expected to be to new customers* New Segments: Expand to larger or smaller customers New Scenarios: Business Process consulting services, intranet apps Increase sales and deployment capacity Scale by servicing multiple customer remotely – 40% savings* Increase margins by increasing managed services attach rates Partner Fees: 12% Net-add fees and 6% residual fees New Services: SharePoint consulting, online migration and integration Recurring Revenues: Up to 50% of new revenues are recurring Partner Opportunity New business, more customers, faster Increase Velocity Grow Revenue Expand Reach Source: MDC/MRM-Partner Opportunity Study 2007

16. Software + Service Go Do’s Online… Complete Microsoft Online Services Training Pass the assessment Create a profile in Solution Profiler Use the software + services Partner Evolution Interactive Guide Here And Now… Sign SPLA and/or ISV Royalty Agreements Join Quickstart for Microsoft Online Services At The Office… Asses your business model for Software + Services opportunities Explore P2P Opportunities Partner with a hoster Online… Complete Pass Create Use

17. And please do your evals. Win a mouse.

18. © 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.