4. MSFT Partnership with Service Provider MSFT Partnership with Service Provider Preferred content provider 16%38% 19%46% Strong reputation 27%37% 24%42% Complete product line 15%55% 16%56% Will keep up with latest technologies 14%48% 16%54% Service Providers are the new distributors in the on-line world Total – all countriesTotal – US

5. Small businessMedium businessEnterprise WorkloadSaaS InterestWorkloadSaaS InterestWorkloadSaaS Interest Web conferencing37%Web conferencing37%Web conferencing51% IP telephony33%E-mail21%E-mail34% Team collaboration29%Team collaboration20%Team collaboration31% E-mail27%IP telephony14%Productivity tools29% Productivity tools17%Productivity tools9%IP telephony28% What is your willingness to buy your software as a service (medium bus)? Software applicationsManaged IT services/support Managed security solutionsManaged storage solutions

6. ““I feel like if it’s Google or Microsoft, I might be on board. You’re trusting them with a lot of stuff. I think that is the biggest thing. Either you have a problem, like myself, or you have something that works. Either way, the pain and suffering of transferring everything into a new system, top down, you really want to make sure you get it right.” – Small business ““There’s something about GoDaddy, for as common as they are, they’re just not big enough for me to consider them reliable. You almost have to be a Microsoft or a Google for me to believe you have enough infrastructure and business power behind you to pull this off at the level of reliability that is going to be expected for me to pay for the service.” – Sole prop. “Microsoft is perceived as being business class stuff. That’s what you think you’re buying if you’re buying Microsoft.” – Mixed versus

7. If the service we described earlier where you could download Microsoft Office for your employees for a monthly per user fee were made available only to users of the Exchange Service, how would this affect the likelihood of you activating and using the Exchange Service? Base: Non-activated customers, N=329 Very likely at same price as retail Very likely at 15% less than retail Much more likely to activate MCS 41%4% Somewhat more likely to activate MCS 32%39% Would not change likelihood of activating MCS 27%57% Don’t know 0% 100% 26%

8. Situation: % with productivity suite deployed Q1Q3Δ Microsoft Office (net) 83.183.8 0.7 Office 2007* 21.429.4 8.0 Office 2003 44.741.5 -3.2 Other Office 18.814.3 -4.5 OpenOffice (net) 9.29.9 0.7 Microsoft Works 5.25.4 0.2 Other PS Client 5.14.3 -0.8 No PS Client 9.29.6 0.4 More than half of commercial PCs have Office 2003 or earlier deployed 8  Indicates significant increase from Q1;  Indicates significant decrease from Q1 Sources: DUT Data Integration | Base: Commercial PCIB (Companies with 1+ PCs) *Office 2007 includes Office 2010 beta | Q3: Microsoft Office only 71.8%; Competitive productivity suite only 5.7% 55.8% of commercial PCs have Office 2003 or earlier deployed

9. Once Outlook is desired by the business integration of many of the other applications it becomes simply another access point to their own information Subscription services connected to Microsoft Outlook Entry to LOB apps Entry to web hosting Enhanced Outlook (Exchange) Entry to mobile Subscription Software – Microsoft Office Full UC Entry to UC

12. Find opportunitiesFind roadblocksExecute with a consistent voice Marketing content Offer Sales person Sales person Activation process Activation process Support Happy customer Key audience Activation research Customer base research Customer base research Awareness Loyalty communications Prospect communications Sales training promotions Customer service portal Customer Experience…

13. Core Managed Services UC SaaS Productivity and Collaboration Business Services Digital Advertising IT Consulting IT Help Desk Tele- Centers Voice Broadband Wireless VoIP Web Conferencing E-mail Video Conferencing PCs Servers Storage Security Network PBX Web Hostin g E.g., Office 365 (P,K,E) CRM ERP Accounting HRM Business Intelligence Data and Hosting Services SaaS Business Management Office Professional Plus Lync Online Exchange Online SharePoint Online Office 2010

14. 80% of purchasers aware of offering, 40-50% adoption

20. Awareness requires a majority of reps to bring it up…

22. 20% time savings versus POP for information workers

23. 50-90% cost savings over servers

24. 85% of purchasers/adoptees activate within 25 days

26. 26

27. Pure play Volume discounts Hands on migration Hybrid premise scenarios Vertical solutions UC Telecom Broadband connectivity Mobile connectivity Financing Microsoft Outlook/Exchange (Microsoft Office) End user support Hosting Domain services Hybrid POP Integrated support Unified control panel Rich add-ons

28. 50% + Growth YOY, meet or exceed business case targets

29. Imagine the Possibilities we Have! Core Managed Services UC SaaS Productivity and Collaboration Business Services Digital Advertising IT Consulting IT Help Desk Tele- Centers Voice Broadband Wireless VoIP Web Conferencing E-mail Video Conferencing PCs Servers Storage Security Network PBX Web Hosting E.g., Office 365 (P,K,E) CRM ERP Accounting HRM Business Intelligence Data and Hosting Services SaaS Business Management Office Professional Plus Lync Online Exchange Online SharePoint Online Office 2010

30. Microsoft is prepared to capture the opportunity raining from the cloud TOGETHER!

33. Cloud Hosting Providers Track and Telco and Managed Services Track