1. Growing Your Business with Microsoft Dynamics CRM

2. Agenda Market Trends Partner Opportunity Pricing and Licensing Cost Model Launch Update Partner Support and Resources Next Steps

3. Customers Drive Business Success Effectively managing the customer lifecycle – from marketing to sales to service – is critical to every company’s profitability and growth.

4. Fits Their People The right user experience for every user role Now Your Customers Can Get CRM That… Fits Their Business Configures quickly to meet your specific needs Fits Their Environment Deploys quickly and integrates existing assets

5. Microsoft Dynamics CRM Solution Suite

6. Partner Opportunity

7. Survey of Partner Business Models

8. New Business Model/ Incubation Platform Providers Industry Solution Providers Low-Touch, Low Volume Providers Partner Type Strategy Non-specific Host to bundle with existing services Outsourced to Platform Providers Host to bundle with existing products/services to cross-sell existing customers, or white label for ISVs, Low Touch/Low Volume Providers GTM Partner for Live CRM outside US (TBD) Deep vertical or otherwise specialized CRM solutions Some will self-host, others will partner with Platform Providers Partners with captive audiences will do well Resell Live CRM or resell/white label Partner-hosted offers from Platform or Industry Solution Providers 8 Hosted Exchange Providers, Managed Service Providers, Telcos Microsoft Dynamics ISVs, ISVs, System Integrators, Franchises VARs, Distis, Local/Small Hosters Benefits New/recurring rev stream Increase strategic value to end customers Increase ARPU Leverage sunk tech investments Decrease churn Reposition as “trusted advisor” vs. “commodity supplier” Create new/recurring rev stream Expand customer base Increase strategic value to end customers See above Partner-Hosted Go-To-Market Strategies

9. Service Provider Deal Example Claus works for a 250 person infrastructure and application hosting company based in Denmark. His company hosts and manages email and business applications on behalf of companies based in Denmark, UK and the Netherlands. He partners with Sis for the consulting and customization work, as well as ISVs. Amount Private Label – 50 seats@€68 per seat, per month, 24 months contract €81,864 Hosting Fees€42,978* Microsoft SPLA Fees(€24,559) Implementation and training by CRM Partner (200 hrs) €27,288 TOTAL:€109,152 Why Claus likes to work with Microsoft CRM: Great revenue opportunities – Recurring fees from customers/private label partners Solid product – Built on Microsoft stack with multi-tenant capabilities – Common application platform for ISV solutions – Integration with SharePoint, Exchange Great support – Large partner ecosystem, hosting documentation and tools Partner Level: Gold Certified Number of Customers: 1,500+ CRM Experience: 4 years Core Strengths: Infrastructure and application hosting, hosted Microsoft Exchange, Microsoft SharePoint and Microsoft Dynamics CRM Focus: Mid-market, manufacturing, financial services ** In this example, CRM Partner sourced the deal, owns the customer and invoices them. CRM Partner pays the Service Provider a recurring monthly fee for hosting services. Currency conversion tate of.6822 used on invoice example. Seats: 50 Time to implement: 30 days Private Label Model** Seats: 50 Time to implement: 30 days Amount Hosted CRM – 50 seats@€68 per seat, per month, 24 months contract €81,864* Platinum support – 20 seats@€10 per seat, per month, 24 month contract €4,800* Microsoft SPLA Fees(€24,559) TOTAL:€86,664 Direct Model * 53% of hosting revenue flows to SP * 72% of revenue flows to SP

10. Licensing and Pricing

11. Licensing Microsoft Dynamics CRM Deployment OptionsLicensing ModelsSample SKUs On-Premise Volume Licensing Business Ready Licensing (BRL) User CALs Device CALs Full CALs Limited Use CALs On Demand Partner-Hosted Services Provider Licensing (SPLA) Service Provider Edition SALs On Demand CRM Live Professional SALs Professional Plus SALs Because “one size fits all” doesn’t apply to your customers… Choice in licensing frameworks to help you support different deals 15 US$ a 40% decrease 15 US$ a 40% decrease

12. Cost Model

13. Hosted Microsoft CRM 4.0 Cost Components Screen shot from Microsoft Dynamics CRM 4.0 Cost Model Tool for SPs Largest cost component is the Dynamics CRM software and the software required to support it Largest savings opportunities, through increase in scale, are in software and labor costs

14. Microsoft Dynamics CRM 4.0 Break-Even Points Platform ProvidersIndustry Solution Providers Telecom Providers Break-Even (# subscribers)4,9491,6903,079 RevenueBased on CRM LiveHigher w/ CustomizationBased on CRM Live Customer Acquisition Split between sales force and partners/resellers More dependent on sales force SoftwareNo difference HardwareNo difference LaborNormal Highest cost, due to customization developers Normal Facilities/BandwidthNormal Lowest cost, due to existing facilities and bandwidth MarginLowestHighestMiddle Note: Break-even points reflect certain assumptions. Changes in assumptions, notably price, will have significant impact on break-even points.

15. Technical Snapshot

16. What’s New in Version 4.0 Multi-tenancy Server roles Improved data management CRM E-mail router Enhanced CRM client for Outlook

17. Service Provider Tools and Documentation Data Center Management Tool Client Update Tool MOM Pack Planning, Development and Development Guides

18. Types of Hosted Architectures Entry 200 Users 1–20 orgs 1-2 CRM front-end servers 1-2 CRM database servers Middle 750 users 3–150 orgs 2-3 CRM front-end servers 3-4 CRM database servers Upper 10,000 users 1–300 orgs 4-5 CRM front-end servers 1 high-capacity CRM database server Scale Up Scale Out

19. Launch Update

20. Product Updates and Announcements Release to Manufacturing (RTM): Shipped - See the Press Release.Press Release GA Date: Now Available - Wednesday, January 2 nd 4.0 Price List Date: Now Available MS.COM Download Availability Date: Now Available – Available at GA for download with a trial key that can be replaced with permanent key when media kits are delivered. Media Kit Availability Date: Upcoming – Dynamics CRM 4.0 media kits will not be available at GA (electronic downloads will be available). Orders will be taken for media kits until they become available (Timing TBD).

21. End-Customer Readiness Three hard-hitting webcasts promoting the core value areas for Microsoft Dynamics CRM. – Wednesday, 9 January 2008 – Creating a High-performance Sales Team with Microsoft Dynamics CRM 4.0Creating a High-performance Sales Team with Microsoft Dynamics CRM 4.0 – Wednesday, 6 February 2008 – Transforming Customer Service into a Strategic Business Asset – Wednesday, 5 March 2008 – Using Microsoft Dynamics CRM as a Platform (Title TBA) Microsoft Dynamics CRM 4.0 Launch Tour – A tour-de-force hitting 21 key cities across the US, convincing CRM business decision makers within mid-market organizations that Microsoft Dynamics CRM is the right choice for high- performance improvements across sales, service and marketing. U.S. Convergence March 11-14

22. Partner Resources

23. Microsoft Partner Support Partner Sales ToolsMarketingAdvertisingSales and Consulting SupportCustomer and Partner Support

24. Partner Sales Tools Customer Presentations Product Brochures Fact Sheets Events PR Awareness Fact Sheets White Papers Demos and Trials Consideration Telemarketing Scripts Proposal Templates ROI Sales Tools Rapid Configuration Tools Purchase, Deployment Communities and Blogs Support Retention Comprehensive tools to support you throughout the customer lifecycle

25. Marketing and Advertising Market to customers – Campaigns-in-a-box – Royalty-free images – Customer-ready sales offers – Branding elements (e.g.“Powered by Microsoft Dynamics CRM”) Sell to customers – Telemarketing scripts – Proposal templates – Case studies – Demos and trials

26. Executive Briefing Centers for strategic deals: – Place for Microsoft's enterprise customer CXOs to meet executives & connect with Microsoft – Vehicle for building executive relationships with customers and partners – Located in Redmond (USA), Copenhagen (Denmark), Munich (Germany) and Thames Valley (UK) Microsoft Technology Centers – 14 worldwide locations Microsoft Solution Sales and Technical Sales resources MBS Deluxe Support for customers Extensive partner support plans Sales and Consulting Support

27. Microsoft Partner Program (MSPP) Gold Certified Certified Registered Supporting Your Business! Extend your market reach by leveraging MSPP assets to build revenue, sales momentum and market differentiation: ―Associate the Microsoft brand with your company ―Gain a competitive edge by attaining the Microsoft Business Solutions Competency Reduce your operating costs using valuable software, training and support resources such as: ―MSPP marketing resources ―Not-for-distribution software licenses ―Partner Learning Center online courses ―Pre- and post-sales technical support Deliver innovative solutions that help you and your customers realize their full business potential with: ―Microsoft Account Engagement ―Visibility to the Microsoft technology roadmap ―Access to a broad and global partner community 50 100

28. Partner logo reflects two levels of achievement: – Microsoft Partner Program level (Gold Certified, Certified) – Competencies achieved (MBS Competency, Business Intelligence Competency, etc.) Retains Microsoft affiliation and Microsoft Business Solutions identity Adds differentiation based on program level Sample logo for a Microsoft Certified Partner who has achieved the Microsoft Business Solutions Competency Microsoft Partner Program Benefits Example of Benefit – Use of Microsoft Partner Logo

29. Next Steps

30. Microsoft CRM at a Glance Over 11,000 customers from small to enterprise Over 580,000 users in more than 80 countries Full CRM suite of marketing, sales, and service Native Office experience for rapid adoption Multi-language with more than 25 languages Advanced SOA / Web services architecture Global network of software and services partners Fast, flexible, and affordable

31. Next Steps You Can Take Become a Microsoft Partner Get MBS certification, or partner for it Enroll in SPLA Learn more about Microsoft Dynamics CRM List yourself on the CS Hosted CRM Partner page Profile yourself in Partner Solution Profiler Introduce yourself to your local Microsoft Hosting Solution Specialist

32. Useful Links and Resources Learning more about CRM – http://crm.dynamics.com (customer-facing) http://crm.dynamics.com – http://www.microsoft.com/dynamics/crm/default.mspx (customer-facing) http://www.microsoft.com/dynamics/crm/default.mspx – https://mbs.microsoft.com/partnersource/ (partner only) https://mbs.microsoft.com/partnersource/ – http://www.microsoft.com/ downloads/ http://www.microsoft.com/ downloads/ Joining the partner program – https://partner.microsoft.com/US/Partner https://partner.microsoft.com/US/Partner