1. Reseller Channel – Past Present Future Samantha Zammit Reseller Channel Director Small Mid Market Biz

2. AGENDA –Past - Our Journey –Present Key Messages SAM Local team H2 focus areas MSF opportunity to help close deals Partner ecosystem –Future Customer segment map FY09 opportunities & programmes –Call to action

3. PAST

4. Our Journey FY06 Open License weak Distributor consolidating LAR – what is value? Low Software Assurance sales in small and medium customer segment Channel little alignment with segment? FY07 Open focus Execution Excellence LAR Refresh Scorecard, forecasts New rebate alignment MM Scale

5. PRESENT

6. Our Journey FY06 Open weak Disti consolidating LAR – what is value? Low SMSP annuity Channel little alignment with segment FY07 Open focus Execution Excellence LAR Refresh Scorecard, forecasts New rebate alignment MM Scale FY08 Increase investment Execution Excellence Joint Planning Relationships Programmes Value Add

7. Reseller Team Structure Brad Clarke Breadth Sales Manager Samantha Zammit Director Reseller Channel Team of 6 Telesales Reps Based in Manilla Breadth Sales Execution Stephen Smith PAM – LAR Strategic Engagement Stephen Smith PAM – LAR Strategic Engagement Lisa Youlden Disti Sales Manager Licensing Marketing Team Thomas Kablau Strategy Ainslie McNamara Mktg/Comms Tony Parzakonis VL Readiness Shalini Anand SMSP LS Shalini Anand SMSP LS MSF Financing Host Manager Katrina Braund – BDM/Mktg Brett Parker – MSF EPG Paul Weingarth – MSF SMSP Steve Kerr – MSF SMSP Jen Lilley PAM - Disti Operational Execution Malcolm Fraser PAM – LAR Strategic Engagement Malcolm Fraser PAM – LAR Strategic Engagement Katie Mortimer SMSP LS Katie Mortimer SMSP LS New Open Reseller PAM Anthony Kola SMSP LS Anthony Kola SMSP LS

8. Big Bets Team Channel Efficacy & Readiness Measurement & Effectiveness Return on Investment Software Asset Management Microsoft Finance

9. H2 Focus Close revenue forecast Drive Wave Launch Open Value for Government Readiness - Licensing Competency Operational Excellence –Forecast accountability –Reduce order entry errors Drive value back to your customers

10. FUTURE

11. ENTERPRISE

12. 1.Sell Platform and Solutions for a People Ready Business –Infrastructure Optimisation –Solutions (PSAs / IPSAs) 2.License + Socket Optimisation –Leveraging customers’ licensing lifecycle (including penetration) as a growth lever –Capturing opportunities for the up-sell and attach of products and solutions –Grow Revenue per Socket (CAL, Office, Server) 3.Engage as One Microsoft: –Perfect the Engagement Framework between ATU, STU and PTU –Partner, Services & Marketing FY08 Business Priorities

13. Team Structure STU (Specialist Team Unit) PTU (Partner Team Unit) CORE Infrastructure Business Productivity Infrastructure Application Platform Priority Solutions / Business Applications Alliance PAMsSolution PAMs SETU (Sales Excellence Team Unit) Infrastructure Optimisation (IO)Sales Optimisation (SO)License Optimisation (LO) ATUs (Account Team Units) Public Sector PS FED PS NSW PS VIC PS QLD WASA Commercial Sector FS North Comm North Comm South Comm s & Media CS

14. 1.Sell Platform and Solutions for a People Ready Business –Infrastructure Optimisation –Solutions (PSAs / IPSAs) 2.License + Socket Optimisation –Leveraging customers’ licensing lifecycle (including penetration) as a growth lever –Capturing opportunities for the up-sell and attach of products and solutions –Grow Revenue per Socket (CAL, Office, Server) 3.Engage as One Microsoft: –Perfect the Engagement Framework between ATU, STU and PTU –Partner, Services & Marketing 4.Sales Excellence & World-Class-Selling (the science & the art of selling) –3 Core Sales Processes: Relationship Management Opportunity Management Business Management FY08 Business Priorities

15. Deployment Plans Premier & ITAP propositions with Partner Connection Deployment Plans Premier & ITAP propositions with Partner Connection Deploy & Service Vision Customer Value Prop People - Ready Business Strategy Business Transformation Operational Efficiency Capabilities People Ready Business Solutions & Workloads Role - Based Productivity Solutions Infrastructure Optimisation Solutions Grow Customer Relationships Accelerate Innovation Drive Corporate Performance Manage Risk & Compliance Improve Operations Optimize Application Platform Optimize Business Productivity Infrastructure Optimize and Secure Core Infrastructure Procurement (LO) Licensing Lifecycle New EA SAM Infrastructure Agreement Component to Core CAL upsell Relationship Management / Opportunity Management/ Business Management Products & Sockets Core to Enterprise CAL upsell Renewal SA Benefits True-up & Attach MSFin - Structure Sales Approach

16. SMALL & MID SIZED

17. Our Journey FY06 Open weak Disti consolidating LAR – what is value? Low SMSP annuity Channel little alignment with segment FY07 Open focus Execution Excellence LAR Refresh Scorecard, forecasts New rebate alignment MM Scale FY08 Invest people Marketing ROI LAR Scorecard V2 PBPs and COS OV focus Gov’t & 2 Tier P900 V2 Channel Comms LAR rebate FY09 & Beyond $150m in 3 yrs in Depth & Breadth OV acceleration SMB annuity Min 20% YoY Public Sector focus Data focus RPS in Depth Socket in Breadth Same thing in 09 – you go to tactics – take it up a level talk strategy and then those will be examples of supporting tactics and metrics

18. MID SIZED >250 SEATS

19. Market Opportuntity IDC - 250 to 500 seats FY08FY09FY10CAGR Business Intelligence38.341.945.59.8% - Advanced Analytic Applications # 5.55.96.37.6% - Business Performance Mgt and Financial Analytic Applications 5.56.06.59.8% - End-User Query, Reporting, and Analysis 22.625.027.611.6% - End User Database Management Systems (50% Allocation) 1.51.6 3.5% - Project & Portfolio Management (50% Allocation) 3.23.43.54.9% Unified Communications 11.512.714.110.9% - Conferencing Applications 1.11.41.726.4% - Messaging Applications 2.32.42.55.4% - Integrated Collaborative Environment 7.38.29.212.3% - Other Collaborative Applications.8.7 -6.3% Core Productivity 71.881.391.713.3% - Team Collaborative Applications.4 4.8% - File System Software # 3.13.33.56.3% - Project & Portfolio Management (50% Allocation) 3.23.43.54.9% - End User Database Management Systems (50% Allocation) 1.51.6 3.5% - Authoring and Publishing Software 48.154.962.314.1% - Content Management 8.810.111.615.2% - Enterprise Portals 5.26.06.916.6% - Content Access Tools 1.61.81.97.6% Market Opportunity 63.8M

20. BI & Portals Remain Key Focus For Short-Term Software Adoption BI & Portals Remain Key Focus for Short Term Software Adoption Source: Gartner ‘Dataquest Insight: Midsize Business IT Spending Plans, 2Q07 Update’ July 17 th, 2007 Adoption Plans for Software Solutions

21. Midsized Business Spending Forecasts In the next 12 months, the Mid Market is expected to deliver strong growth in both Software and Services Spend. In FY07: The Australian Midsized Software Market was worth US$1.3 Billion And the Services Market was worth US$4 Billion Total Mid Sized Software Spend Growth9.4% Lower Mid Market (Unmanaged)11.2% Core Mid Market (Breadth)9.6% Upper Mid Market (Depth)8.4% Source: Microsoft Research Based On IDC Data Total Mid Sized Services Spend Growth6.8%

22. Operational Issues Remain Top Of Mind Source: Brennan Mid Market Insight Series, Based On IDC Data, April 2007

23. Satisfaction Licensing Simplicity Simplify the Process –More training for Partners –“how to buy” messaging for customers Simplify Pricing –Reducing number of price points by 51% –Reducing SKUs by 51% Simplify Agreements –Improved readability and referencing –Rearranging and rewriting contract terms –Agreement lengths reduced 10-50% Simplify Access and License Management –Improvements to software download process –New tools

24. How Can You Capitalise On This?

25. Adding value to customers Q. How important are each of the following qualities in a potential provider of IT solutions? Source: Gartner ‘SMBs Use of IT, Asia Pacific, 2006’ February 7 th, 2007

26.     MID SIZED CUSTOMER CAMPAIGNS

27. SMALL 50-250 SEATS

28. How Will We Do? Key Focus: 1. IW Socket Penetration in Non Annuity 2. Server & CAL Non Annuity Penetration Upper Breadth (100-250 PCs) – DATA and ANNUITY = RPS Invest in data quality, profiling and customer contactability. Scale Renewal efforts. Develop contact strategy based on improved segmentation and data mining. Invest in Customer Acquisition Marketing to increase socket penetration. Invest in ISV & Solution partners to build presales capabilities and Geo Coverage Invest in additional SAM Telesales resource and implement SAM Thru Partner Optimise SMB Lead Generation Team and develop centre of excellence Lower Breadth (<100 PCs) - SOCKET THROUGH CHANNEL Increase active breadth VAR channel use Rebate to incent First VL Increase emphasis on Thru Partner Marketing to execute Customer Campaigns Leverage Web to drive self-serve relationship marketing and demand Build new routes to market (e.g. Hosting, Mobility and Telco) Increase focus on AP efforts by implementing SAM Thru Partner

29. Calls to Action Continue to attend Business Briefings on regular basis – these sessions are built for you Give us feedback if our Newsletters and other comms vehicles are not adding value Provide feedback to your MS PAM if we can help you with any of your opportunities Focus on your Licensing Competency Engage and drive Wave Launch activities

30. THANK YOU!! FOR ALL THAT YOU DO EVERY DAY TO MAKE OUR CUSTOMERS HAPPY AND TO HELP MICROSOFT TO GROW