1. Hosted SharePoint

2. Part 1/3: Hosted SharePoint Opportunity Speaker Name speaker@microsoft.com http://blogs.msdn.com/speaker Microsoft Corporation Prepared by Hosted SharePoint

3. Hosted SharePoint Opportunity analyzed using a funnel methodology Total US companies: under 500 employees including non-profits. (6.7m companies – 100%) Overall Opportunity: Companies with interest in adopting SharePoint Solutions, plus firms with high needs profile (2.2m companies – 33%) Broad Opportunity: Companies with interest in adopting SharePoint Solutions (Best Candidates + Other Candidates) (1.6m companies – 24%) Best Candidate Opportunity: Willing to pay $30+ per month, adopt within 12 months, enabling factors present: (362k companies – 5.4%) Government sources to determine number of firms Opportunity progressively refined based on weighted primary research within BellSouth customer base

4. Opportunity within US SMB Population  Companies were assigned to one of four opportunity groups: Best Candidate Opportunity: (362k companies;) Willing to pay $30+ and would consider adopting within 12 months. Enabling factors present: Broadband, IT expertise, Desktop web access. Additional Potential Opportunity: (636k companies): Did not express interest in adopting, but have needs on at least 4 SharePoint Solution dimensions, are willing to outsource, and have enabling factors present:: Broadband, IT expertise, Desktop web access. Other Candidates Opportunity: (1.25m companies) Interested in adopting Hosted SharePoint solutions, but do not meet Best Candidate criteria. Non-Candidates (4.5m companies) Did not indicate a willingness to adopt, and have a low Needs Segmentation score. Adopters: 24% of SMB Companies expressed an interest in adopting Hosted SharePoint solutions. (1.6m companies) Broad Opportunity Sample size: 381 The Hosted SharePoint opportunity shown here is approximately 50% - 70% smaller than the opportunity for Hosted Messaging and Collaboration found in the Hosted Exchange research in EMEA and the USA.

5. Hosted SharePoint: Opportunity within French SMB Population  Companies were assigned to one of three opportunity groups: Best Candidate Opportunity: (52k companies;) Willing to pay 20€ or more per month, and find Hosted SharePoint solutions very useful for multiple purposes. Other Candidates Opportunity: (288k companies) Interested in adopting Hosted SharePoint solutions, but do not meet Best Candidate criteria. Non-Candidates (1.1m companies) Did not indicate a willingness to adopt. Adopters: 24% of SMB Companies expressed an interest in adopting Hosted SharePoint solutions. (341k companies) Broad Opportunity Sample size: 346

6. Adopter distribution and concentration by company size Adopters by Size Segment Adopters Concentration within Size Segment Sample size: 381 * see footnote *20+ segment Best Candidate percents are derived from an analysis of the Hosted Exchange research data set because of the small sample size in this segment of the SharePoint data. 20+ segment concentrations may be higher based on analysis of results from July 2005 research in France. (See next slide)

7. Adopter distribution and concentration by Industry Adopters by Industry Adopters Concentration within Industries Sample size: 381 Concentrations are spread broadly, but FIRE, Business Services, and Construction stand out.

8. Hosted SharePoint: Cross selling opportunity (France) Hosted Exchange Best Candidates (199k companies) SharePoint Adopters: (341k companies) HE Best Candidates interested in adopting Hosted SharePoint (113k companies) A Significant cross selling opportunity exists between Hosted Exchange Messaging candidates and Hosted SharePoint Candidates. 57% of HE Best Candidates are potential adopters of Hosted SharePoint. 12% are Best Candidates for Hosted SharePoint. HE Best Candidates that are also Hosted SharePoint Best Candidates (23k companies)

9. Relative Value of individual Needs Dimensions (among adopters) Please indicate How Valuable each of the features listed below would be to your organization? Sample size: 87 Adopters Project Management is the priority solution for those interested in adopting. Although other solutions are still important.

10. QUESTIONS? End of Part 1/3