1. Cost Savings with Office 365
How Microsoft Office 365 Can Help Reduce Costs
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2. Office 365 Enterprise Personas
Transforming
Customers with propensity to increase/decrease employee count regularly
Require agile scalability and flexibility
E.g. acquisitions, layoffs, temporary seasonal workers
<Link to Deck>
Cost Saver
Customer primarily looking to cut costs, value a focus on TCO
Interested in moving from capex to opex
Google Compete
Customer in active discussions with Google
Greater focus on collaboration and messaging workloads
Task Worker
Population of structured task workers who don’t have dedicated PCs
Prevalent in retail, hospitality, manufacturing and healthcare industries
e.g. Manufacturing Plant Floor worker, Nurse, Barista
Dated Environment
Customers on older versions (N-2+) of Exchange, SharePoint and Office who don’t have new version rights
Want to adopt new business productivity capabilities and stay current
e.g. Customer deployed on Exchange 2003 without Software Assurance
Presentation relevant to all: Office 365 Enterprise Core Business Value Deck
Main Resource for Deeper Assessment: Customer Decision Framework

3. The Future of Productivity
The cloud on your terms
Best productivity experience across PC, phone, and browser*
Online
On-premises
This also fundamentally explains why customers like yourself consider Microsoft when it comes to your productivity solution. There are really three things that we believe separate Microsoft from every other competitor in this space, and why we think you should bet on Microsoft for productivity.
1. We’re focused on providing the best productivity experience across the PC, the phone, and the browser. (*An appropriate device, Internet connection and supported browser are required.)
Take any competitor in this space—some of them focus on the PC and they have no browser and no phone story. Some of them are completely browser-based. We believe that your users, and you as users, really do want to use the PC, the phone, and the browser in your daily world. You want to be able to get to your , no matter what device you’re using. You want to be able to get to your Office documents, no matter what device you’re using. And we’re making that possible with Office 2010, SharePoint 2010, Exchange We want you to be able to work on your documents, and when someone touches it in the browser, they don’t clobber all of the things that someone did in the rich client. We round-trip the Office documents from the PC, to the phone, to the browser, and back. Your investment in Office documents is huge; you do not want to lose that.
We’ve also designed this so that we do things in the PC that are unique from the phone and the browser. We do things in the browser that are unique from the PC and the phone. And we do things on the phone that are unique from the PC and the browser. We haven’t just taken our long list of capabilities and turned a bunch of stuff off and stuck it in the browser. When you’re in the browser, you get unique value that the browser brings to you. When you’re on your mobile phone, you can take photos; we’ll automatically drop those photos into your OneNote digital notebook, and that gets synced up over the cloud, and people who are using their PCs and their browsers see those photos. We don’t have that capability on the PC. So, PC, phone, and browser—the best experience for each one of them.
2. We give you the cloud on your terms. We don’t give you a technology ultimatum where you must move to the cloud to use our technology. We give it to you on your terms. What does that mean? It means that you can be like one of our customers - you may continue to use our technology in your headquarters operation on-premises. But it has rolled out 18,000 laptops to all of their cafes in the United States. Those 18,000 laptops are running Windows 7. And those 18,000 laptops are using Exchange Online and SharePoint Online. And it’s integrated in with their headquarters operations. So you can send to anyone in the company. But the 18,000 new users, who’ve never had our technology before, now are using our cloud, and the rest of corporate headquarters are actually using the traditional on-premises technology. We have other customers like Coca-Cola Enterprises, who’s gone 100 percent to the cloud and they’re not using any servers when it comes to Exchange and SharePoint. And so you can have the cloud on your terms. We believe that is very, very important, and we’re dedicated to helping you think about how to use the cloud in the most effective way.
3. Finally, the third reason we believe that you should bet on Microsoft is because we believe we have the broadest vision for what productivity actually is. Productivity is not about desktop documents. It’s not about word processing and spreadsheets. That was twenty years ago. We believe modern productivity combines the things you see at the bottom of this slide in a very seamless experience.
Enterprise Search: We believe modern productivity means enterprise search, great people search, finding people inside your company.
Collaboration: It means great collaboration
ECM: It means enterprise content management. Why do you have different publishing systems for your intranet, and your extranet, and your Internet? You want people to use the office tools they’re familiar with and integrate those with your single enterprise content management system.
BI: We believe in self-service BI. Excel, SharePoint, and SQL Server. Making it incredibly easy for you to visualize data, democratize data within your organization.
UC: And of course we believe modern productivity means unified communications.
No other company takes this broad of view of what productivity means.
Enterprise Content Management
Unified Communications
Business Intelligence
Enterprise Search
Collaboration
*An appropriate device, Internet connection and supported browser are required.

4. Microsoft Office 365
BRINGING TOGETHER CLOUD VERSIONS OF OUR MOST TRUSTED COMMUNICATIONS AND COLLABORATION PRODUCTS WITH THE LATEST VERSION OF OUR DESKTOP SUITE FOR BUSINESSES OF ALL SIZES. 
Microsoft® Office 365 delivers the power of cloud productivity to businesses of all sizes, helping to save time, money and free up valued resources. Office 365 combines the familiar Office desktop suite with cloud-based versions of Microsoft’s next- generation communications and collaboration services: Exchange Online, SharePoint Online and Lync Online. Office 365 is simple to use and easy to administer – all backed by the robust security and guaranteed reliability you expect from a world-class service provider.
Microsoft Office 365 Includes:
Microsoft® Office Professional Plus
The world’s leading productivity tool now seamlessly connected and delivered with cloud services – for the best productivity experience across the PC, Phone and Browser*. (*An appropriate device, Internet connection and supported browser are required.)
Exchange Online
Cloud-based , calendar and contacts with always-up-to-date protection from viruses and spam.
SharePoint Online
Cloud-based service for creating sites to connect colleagues, partners and customers.
Lync Online
Cloud-based instant messaging, presence, and online meeting experiences with PC-audio, video conferencing and screen sharing.
Key Microsoft Office 365 Benefits:
Anywhere-access to , documents, contacts, and calendars on nearly any device
Work seamlessly with Microsoft Office and the other programs your users already count on everyday
Business-class features including IT-level phone support,  guaranteed 99.9% uptime, geo-redundancy, and disaster recovery
Pay-as-you-go pricing options which give you predictability and flexibility for all or part of your organization
Latest version of Business Productivity Online Suite (BPOS), which has millions of business users today
Microsoft® Office 365 for small businesses offers an easy-to-use set of web-enabled tools for small businesses, independent consultants and professionals looking for business-class productivity services. Working with the tools people know and use today, Office 365 provides anywhere access to , important documents, contacts, and calendars on nearly any device. It’s free for the first 30 days and then just $6 per user per month.
Microsoft® Office 365 for enterprises brings together cloud versions of our trusted communications and collaboration software with our familiar Office Professional Plus desktop suite. It is designed to help meet your IT needs for robust security, 24/7 reliability, and user productivity.
We have a variety of plans to meet the needs of businesses of all sizes and varying IT needs. Priced from $2 - $28 per month per user, each plan has the same 99.9% uptime guarantee and includes the innovative security features and support you expect. Office 365 offers great flexibility by allowing businesses to provide users access to only the services they need and pay-as-you- go pricing options.
Microsoft® Office 365 for education provides your institution with the same great communication and collaboration experiences used in enterprises around the world while saving time and money. Microsoft Office 365 for education delivers all of this and more while training students on familiar software which employers depend upon.

5. Customer Value – Cost Savings
Link to Case study
With-Microsoft-Online-Services/
Second largest pharmaceutical company in the world, GlaxoSmithKline supplies a quarter of the world's vaccines and produces some of the leading prescription medicines and consumer healthcare products.-US, 100,000 employees, Pharmaceutical Industry
"Moving to Online Services will enable us to reduce our IT operational costs by roughly 30% of what we’re currently spending. The ability to introduce a variable cost subscription model for these collaborative technologies allows us to more rapidly scale or divest our investment as necessary“
Alastair Robertson VP of Information Workplace, GlaxoSmithKline
Link to Case Study

6. Customer Value – Cost Savings
Link to Case study
Access-Through-Hosted-Services/
Dell is a leading global designer and manufacturer of computer products and services. The Texas-based company realized revenues of U.S.$52.9 billion in fiscal year US, 96,000 employees, IT Services
Dell believes that customers can rely on hosted infrastructure services such as high availability, backups, larger mailboxes, and disaster recovery at a much lower cost than if they provided the services themselves. Organizations may save thousands or even millions of dollars on purchases and support for IT hardware by moving to Office 365.
"With Office 365, organizations can make capabilities available that were previously unaffordable, or that they did not have the resources to support…Cloud-based services provide cost advantages for many organizations.”
Terry Storey, Senior Global Architect, Dell
Link to Case Study

7. Office 365 business value
Customers realize productivity benefits and reduced IT costs
Office 365 can help customers improve productivity and reduce IT costs
Reduced server hardware & maintenance needs
Automatic new version migrations
Potential ability to reassign headcount
Diminished infrastructure requirements
Additional IT benefits
Geo-redundant datacenters
24x7 IT professional phone support
99.9% financially backed SLA
Forrester TEI - Office 365 provides significant benefits (1)
Values based on Forrester TEI research; estimates based on a composite organization moving to Office 365 – based on interviews with organizations on Office 365.
Benefits
Value per user, per year
Eliminated hardware
$20.69
Eliminated third party software
$4.34
Web conferencing savings
$14.29
Teleconferencing savings
$6.86
EA licenses substituted with Office 365 subscription
$45.37
Avoided on premises implementation labor
$6.06
Reduced IT support effort
$50.00
Reduced travel
$94.64
Knowledge worker productivity gain
$417.14
Mobile worker productivity gain
$91.07
Annual benefits
$750
'The Total Economic Impact of Microsoft Office 365 – Enterprise Customers’
Productivity gains
We engaged Forrester Consulting, a well-respected research firm, to explore customer productivity benefits of migrating to the Office 365. We discovered a substantial cost savings per user that is valuable to review with. While each customer is different and therefore will have their own unique productivity benefits, let’s look at the benefits for a typical customer moving to Office 365.
Across a composite organization of 3,500 employees (1,000 knowledge workers and 2,500 manufacturing employees), a customer can see a benefits per person, per year of $ When multiplied across all employees, this is a substantial savings for all organizations sizes. Now, as we said, each customer is different and may not realize all the savings available. For example, a small, local firm may not save $94 annually per user because they don’t travel. However, they may decide to realize a benefit by using the Lync conferencing capabilities with their partners or vendors rather than the more impersonal conference call. Larger organizations are likely to take advantage of more productivity benefits as they are more likely to have offices dispersed across geographies, but all customers will realize a good portion of these productivity gains.
(1) Actual savings will depend upon specific environment
Link to ‘The Total Economic Impact of Microsoft Office 365 –Enterprise Customers’

8. Potential Cost Savings with Office 365
Example of a cost comparison of Office 365 vs. On-premises for a 5,000 employee company – results based on Office 365 TCO tool, will vary based on environment
Comparison of Office 365 E3 vs. on-premises for a model 5,000 employee company with an EA agreement and ECAL suite
Results based on Office 365 TCO tool -
Hardware
Software
Operations
Deployment
4 Cost Areas
Annual Averages

9. Reduce upfront infrastructure investments
Hardware Cost Savings
Reduce upfront infrastructure investments
Minimal on-premises hardware required - helps reduce capital expenses
With Microsoft’s geographic redundancy at the data centers, 99.9% guaranteed uptime – could avoid significant costs to build redundancy in-house
Reduce backup and disaster recovery costs
Reduce server maintenance, space, power, and cooling costs
The Wise Group (UK Non-profit)
In its data centers, The Wise Group will retire 50 to 60 physical servers by using Office 365, helping it to reduce administration, power, and cooling costs
“We can save a significant amount by outsourcing our solutions to Microsoft because we can retire much of the hardware we no longer need.”
--Alan Lee-Bourke, CIO
The Wise Group is a social enterprise that helps people in communities across Scotland and northern England to find work, access job training programs, staff small businesses, and regenerate communities. UK – 500 employees
Services-with-Flexible-Cloud-Based-Solution/
Alternative Case Study: Utility-Authority/New-Mexico-Utility-Modernizes-Communication-and-Collaboration-with-Cloud-Services/
The Albuquerque Bernalillo County Water Utility Authority provides water and wastewater services to approximately 200,000 customers in the greater Albuquerque, New Mexico, metropolitan area. US – 600 employees
“We avoided the cost of hardware for Exchange Server, Lync Server, and SharePoint Server deployments. We just pay for the service, with no additional cost to us.”
Claims from

10. Operations Cost Savings: IT Administration
Reduce admin costs by reducing IT effort on installation, patches, security updates, and upgrades
Cornerstone Mortgage
(Financial Services, US)
With the user-friendly Office 365 web portal, the IT staff retains the administrative controls they want to configure locally, without having to worry about other administration tasks such as daily backups.
“With Office 365, we expect to reduce time spent on administration by 50 percent compared to an on-premise solution.”
--Kyle Sandoval, Director of Server Operations and Architecture
Overall, Cornerstone expects to save $2.5 million over five years with Office 365.
No more server patching, updating, and upgrading
24/7 IT-level professional support from Microsoft
Easy-to-use administration console lets IT focus on user productivity, strategic planning and organization-wide deployment while Microsoft manages the risks and complexity of the backend
Link to Case Study –
Cornerstone Mortgage Company is a full-service mortgage banker with about 900 employees operating in 70 offices throughout the United States.
Claims from
Online Services “Start Here Tasks”

11. Deployment Cost Savings
Microsoft manages your upgrades to help reduce future deployment costs
hhpberlin
(Professional Services, Germany)
By using Office 365, hhpberlin will significantly decrease vendor costs from consulting fees to help deploy, upgrade, and update software for its on-premises applications.
“Since the experts at Microsoft will handle most of our daily maintenance for us in the hosted environment, hhpberlin expects a cost avoidance of €5,000 to €40,000 [U.S.$7,110 to $56,875] per deployment project.”
--Stefan Truthän, CIO
Microsoft deploys patches, security updates, and back-end upgrades, helping to eliminate the time and effort organizations spend managing their servers
Automatic new version migrations
Fast deployments can result in lower costs
Link to Case Study –
hhpberlin provides fire-safety consulting for large construction projects around the world. Headquartered in Berlin, Germany, it employs 110 workers.

12. Software Cost Savings: Predictable License Costs
Forecast IT expenditures more accurately with predictable, pay-as-you-go costs; reduce capital expenses
Evco Plastics (US – Manufacturing)
“What we like about Office 365 is that it is one cost for us across the board,…The costs are fixed, and we do not have to worry about additional hardware, maintenance, or headcount.”
--Eric Lam, IS Manager
Subscription pricing model helps forecast IT expenditures
Most organizations should reduce capital expenses and shift some expenses from Capex to Opex*
Flexibility to easily scale-up or scale-down licenses – pay for only the capacity and services needed
Office 365 Suites offer discounts
Office 365 Plan E3 Suite offers 38% discount off of the sum of the standalone components
Production-with-Hosted-Services/
Evco Plastics is a custom injection molder that designs and builds molds. Evco manufactures parts for everything from medical devices to large industrial parts. It employs 800 people. - US
*Consult your accountant for treatment of expenses

13. Case Studies Product Company * Title/Link Cost Savings Quote/Metric
Albuquerque Bernalillo County Water Utility Authority (CA)
New Mexico Utility Modernizes Communication and Collaboration with Cloud Services
“We avoided the cost of hardware for Exchange Server, Lync Server, and SharePoint Server deployments. We just pay for the service, with no additional cost to us.”
Office 365
City of Carlsbad (EPG)
City Government Uses Online Services for Messaging, Saves 40 Percent Annually
“We expect a savings of approximately 40% annually”
BPOS
Cornerstone Mortgage (CA)
Mortgage Company Reduces IT Costs by 40 Percent with Hosted Solution
Estimates U.S.$2.5 million in cost savings over five years
Dell (EPG)
Dell Improves Client Service by Providing Anywhere Access Through Hosted Services
“Organizations may save thousands or even millions of dollars on purchases and support for IT hardware by moving to Office 365.”
GlaxoSmithKline (EPG)
GlaxoSmithKline Leads the Way With Microsoft Online Services
Reduce IT operational costs by 30%
Godiva Chocolatier (EPG)
By Moving to Cloud, Retailer Saves $250,000 Annually, Gains Business Agility
Estimates $250,000 annual savings plus predictable cost model
LPG (CA)
German Medical Network Implements Cost-Effective Quality Management with Hosted Services
“The low cost of Office 365 was a key consideration for LPG. They can define exactly how many people should have access and what type of access they need, and then pay subscription fees only for what they need.”
Rexel (EPG)
Electrical Distributor Picks Proven Microsoft Messaging Technology over Google Apps
“The company officially estimates we will save 30 percent using Exchange Online.”
The Wise Group (CA)
Social Enterprise Reduces Costs and Expands Services with Flexible Cloud-Based Solution
Saves $560,000in telephony costs, reduces travel by 30%, retires physical servers
EPG = Enterprise customer, CA = Corporate Accounts

14. © 2011 Microsoft Corporation. All rights reserved
© 2011 Microsoft Corporation. All rights reserved. Microsoft 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.