1. Selling in Federal Government, Defence & Public Safety Terry Moloney, Federal Director

2. Agenda How Canberra operates Recent Government changes Drivers and impacts Opportunities Working together to succeed

3. Microsoft Federal Region Vision Delivering the productivity and skills required by the Australian Government to deliver efficient services to its citizens Mission Ensure the Australian Government has the Software Technology to enable the delivery of its policies Structure DefencePublic SafetyHuman ServicesFiscal PolicyGovernment

4. The Federal Marketplace Rising unemployment Government cost cutting to deliver on election promises Gershon review - 5% and 10% BAU cost reduction across the board Decreasing Government income (especially taxation receipts) Drivers Reducing agency budgets, headcounts and contractors Major projects specifically targeted to activities to create jobs Look for year one savings – not interested in out years Drive effectiveness and efficiency – maximise return from investments already made $80 billion surplus becomes $118 billion deficit by 2011-12 – 15 years before budget is back to surplus Impacts

5. Key IT Drivers ProductivitySkills

6. Collectively demonstrate ability to derive business value from technology that is already licensed Deployment to become the key driver – failing to deploy VSA purchases will impact renewal and future software and services sales. Partners are absolutely key to us gaining credibility in delivering real business value Creating Opportunities We need to collectively move from software sellers to solutions companies, demonstrating our ability to contribute to productivity gains and skills development

7. CollaborationCollaboration –Move from “need to know” environment to “need to share” environment SecuritySecurity – Desktops, servers, networks –Wireless/mobile Information Sharing & ExchangeInformation Sharing & Exchange –Analysis, Visualisation, Collaboration Defence and Public Safety Trends & Opportunities

8. Changes in Competitive Landscape Government tendering is well down (-26% YOY by value) Contracts awarded down $1 billion (-30% YOY) No major transformation projects on the horizon Incumbency is a powerful ally

9. Working Together in Federal Local representation (and support capability) critical Engagement with both business and technical decision makers Work closely with Microsoft Account Managers, Technology Advisers and Solution Specialists through Michael Adams It is different!

10. Call To Action – Working Together Develop coverage and subject matter expertise in emerging technology stacks (for example Dynamics, Identity Management, Business Intelligence) Shared industry expertise, knowledge and intelligence gathering Joint account planning and sales execution Leverage Your Value Proposition Five focussed sales teams – Defence; Public Safety; Fiscal Policy; Human Services; Machinery of Govt – approach via Account Manager MCS Team driven by deployment objectives and committed to partner engagement Canberra-based Government Industry Market Development Manager goaled on partner attach to key opportunities, and all partner managers will assist you with driving Federal objectives Engaging Microsoft Sales and MCS Teams

11. Thank you

12. Working Together – Our Goals We put our customers first With our partners, we work and act as “one Microsoft” Collectively, we have the skills and resources to help our customers maximise their investment in Microsoft technology We are easy to do business with We are a leader in solution selling We have a clear services strategy, developed in conjunction with MCS and our partners We are seen as Trusted Advisors

13. AGIMO and Agency Roles Driving further Whole of Government deals – telecommunications, travel and “commodity” hardware. Has Minister Tanner’s support for development of “Savings in Procurement” programs AGIMO Remain key focus for deployment, new products and solutions Agencies

14. Customer Pain Points FY10 Defence & Public Safety Campaigns Solution Areas Aus Vertical Industry Net-Centric Defence Emergency, Disaster & Event Preparedness and Response Public Safety & Defence (National Security) Defence Transformation Campaign COLLABORATION “need to know” environment moving to “need to share” environment: “need to share” environment:COLLABORATION “need to know” environment moving to “need to share” environment: “need to share” environment: Situational Awareness Secured Unified Communications Citizen Safety Efficiency Citizen Safety

15. Microsoft and partners in Federal Strengths Brand pervasiveness Technology interoperability Strong and mature partner ecosystem VSA provides a high level of incumbency and a platform for the delivery of value SPF / BIF availability Weaknesses Seen as transactional software seller, not as enterprise-class solution provider Deployment lags behind sales Lack of synergy (Microsoft sales, MCS and partners) to meet opportunities Complex licensing Not seen as thought leaders – reactive to the market rather than proactive Opportunities Ability to address productivity and skills (for example elearning and training benefits) Expansion of VSA – additional products and programs Hosted services (for example BPOS) - can be sold and delivered by partners Government investment in welfare, taxation compliance and defence Threats Incumbency Oracle/Sun More competitors moving into traditional Microsoft strongholds (for example, collaboration) “Do nothing” mentality Continued cuts to IT spending Delay in deployment of sold technology