1. 1 Welcome to the Partner Briefing Series: Preparing for FY07 Brooke Banbury, Engagement Manager, US Partner Services (bbanbury@microsoft.com)bbanbury@microsoft.com PURPOSE: The Partner Briefing Series will provide information on strategy and tactics to help you prepare to work with Microsoft in our FY07 that starts in July. Our goal is to provide relevant information and facilitate open communications that contribute to our joint success. Three Webcasts: April 26th 10:00 – 11:00 AM PST: FY07 Services Strategy with Partners Speakers: Bryan Rutberg, Director, Services Partners, Microsoft Services. May 16th 10:00 – 11:30 AM PST: FY07 Infrastructure Optimization Strategy with Partners Speakers: Lisa Downey, Senior Partner Development Manager, and Jeff Wettlaufer, Technical Lead, for Worldwide Infrastructure Optimization. June 16th 10:00 – 11:00 AM PST: The Business Value Challenge: Winning with Partners in FY07 Speaker: Bob McDowell, Vice President, Information Worker Segment and Business Group.

2. Partner Briefing Series: Preparing for FY07 FY07 Services Strategy with Partners Bryan Rutberg Director, Services Partners Microsoft Services bryan.rutberg@microsoft.com

3. 3 Agenda The Enterprise solutions market is growing and Microsoft is well-positioned to take advantage Microsoft’s Enterprise organizations are acting to ensure success for Microsoft and our Partners We’re focused on deeper customer and Partner relationships We’re investing in Services as a catalyst for growth in new products and technologies

4. 4 Business Needs Drive Enterprise IT Innovation Securing information assets Enabling a knowledge-based workforce Managing the workforce evolution Simplifying/optimizing infrastructure Transforming legacy systems Extending the enterprise

5. 5 Worldwide IT Services Market 2005 2006 2007 2008 2009 344 100 150 0 0 50 300 350 200 250 400 450 15 359 380 401 424 365780 Billions The WW IT Services Market will grow by over $175 Billion over the next four years. Total market size 2006-2009: $1.5 Trillion. Includes Development and Integration and IT Management Growth WW IT Services Spend: 2005

6. 6 $0.0 $5.0 $10.0 FY05 $9.89 FY03 $7.36 $1.38 FY96 FY00 $5.14 Microsoft Server and Tools Revenue Microsoft Has Great Enterprise Momentum From $1 Billion to $10 Billion in Just Ten Years

7. 7 A New Wave of Enterprise Opportunity Delivering the People-Ready Business

8. 8 Agenda The Enterprise solutions market is growing and Microsoft is well-positioned to take advantage Microsoft’s Enterprise organizations are acting to ensure success for Microsoft and our Partners We’re focused on deeper customer and Partner relationships We’re investing in Services as a catalyst for growth in new products and technologies

9. 9 Partner Feedback: What Partners Tell Us They Want Profitability of Microsoft- related business Help in growing Partner business Support across the partner cycle – readiness, marketing, sales, support Ease of doing business Seed the market to generate service opportunities for Partners Knowledge and skills transfer Ease of co-engagement Predictability in our operations – where we’ll engage with customers and how we work with Partners

10. 10 Growing The Market For Microsoft And Partners Worldwide Project-Based IT Services Spend 20092005 Services for non- Microsoft Platforms Partner- delivered Services for the Microsoft Platform Microsoft- delivered Services Microsoft Services Role Invest strategically to promote platform growth via new technologies and lighthouse engagements Focus on initiatives to increase productive use of Microsoft technology Create best practices for leverage across Partner Ecosystem Commitment to co- engagement with Partners Microsoft Services grows strategically to seed market; stays small % of market Partners deliver vast majority of engagements Microsoft Eco-system share of market grows faster than whole market $147B $1B $89B $57B $182B total Goal: Together, Maximize Microsoft + Partner Share

11. 11 Microsoft and Partners will be #1 in the Enterprise Strong position Great momentum Product introductions driving the People-Ready Business Increased demand for skilled Microsoft- based services Ecosystem must increase skills and resources Microsoft addresses product wave with training, early adopter programs, and marketing Microsoft teams with Partners to meet customer demand Partners capture vast majority of growth opportunity

12. 12 Agenda The Enterprise solutions market is growing and Microsoft is well-positioned to take advantage Microsoft’s Enterprise organizations are acting to ensure success for Microsoft and our Partners We’re focused on deeper customer and Partner relationships We’re investing in Services as a catalyst for growth in new products and technologies

13. 13 Microsoft’s Enterprise Approach Accelerating growth through strengthened customer relationships Formula for Success Segmentation  Customer experience Account planning  Focus on customer priorities Microsoft Services  Seeds the Market, builds confidence, trust, and loyalty Partners  Primary delivery vehicle Leads to Increased standardization on Microsoft infrastructure platforms More successful Enterprise projects delivered by Partners

14. 14 Services Roles for Customers: Build Enterprise Relationships Results Substantially increased customer satisfaction More Microsoft solutions successfully deployed More confidence, trust, and loyalty to Microsoft platform More project opportunities for Microsoft technology and for Partner services Enterprise Strategy Consultants Technical Account Managers Dedicated support liaisons, managing technical issues for customers who hold a Premier support contract. Recommend strategic IT directions and Microsoft project opportunities based on assessments of business needs and operations. Dedicated support liaisons who manage technical issues and help enhance productive use for customers with Premier support contracts. Accelerate adoption of Microsoft solutions by assessing business needs and operations to connect business strategy and IT directions.

15. 15 Agenda The Enterprise solutions market is growing and Microsoft is well-positioned to take advantage Microsoft’s Enterprise organizations are acting to ensure success for Microsoft and our Partners We’re focused on deeper customer and Partner relationships We’re investing in Services as a catalyst for growth in new products and technologies

16. 16 Microsoft Services and IT The Pillars of Our Mission

17. 17 Services Roles for Partners: Increase Partner Enablement SKUs Partner Strategy Consultants (PSC) Co-engagement Microsoft Partner Advantage (MSPA)

18. 18 Microsoft Partner Service Offerings: PSC and MSPA DISC OVE R PLAN BUIL D DEPL OY OP ER AT E OPTI MIZE WIN THE BUSINESS ENSURE ITS SUCCESS Comprehensive Services Spanning the IT Lifecycle Partner Strategy Consultant Offering leverages Microsoft technology and programs to help partners grow their business with competitive solutions and services. PSC: Drives the Business and Strategy Microsoft Services Partner Advantage provides a managed technical support relationship to minimize risk in developing, deploying, and supporting solutions on Microsoft technology. MSPA: Drives Successful and Productive Use of Technology

19. 19 Partner Strategy Consultant (PSC) Offering Accelerate Competitive Advantage Drive Innovative Solutions and Services Promote Revenue Growth Value Pillars Solution Development and Alignment Assist in development of new service offerings relevant to growth market opportunities and aligned with Microsoft product roadmap. Revenue Growth Account and Opportunity Support Joint account planning; proposals; design reviews; competitive positioning; facilitate field relationships Readiness and Enablement Webcasts; architect summits; airlifts; training; early adopter programs. Objectives Trusted Advisor Relationship

20. 20 Getting Started: Microsoft PSC Service Offering Delivery Life Cycle Stakeholder Analysis - Creating a Vision/Scope for the Delivery PhaseStakeholder Analysis - Creating a Vision/Scope for the Delivery Phase Building a Partner Roadmap & Activities PlanBuilding a Partner Roadmap & Activities Plan Solution Alignment and Development PlanSolution Alignment and Development Plan Joint Field Readiness and Enablement PlansJoint Field Readiness and Enablement Plans D E L I V E R Y Three Months to Multiple Years Planning 15 - 30 Days Develop and Execute Roadmap Deep Readiness and Enablement PSC Technical Opportunity Support Stakeholder Reporting Milestones Helping Partners grow their business with compelling Microsoft-based solutions and services

21. 21 Microsoft Services Partner Advantage (MSPA) Offering Services offering developed with Partners, for Partners; “Premier Support” Provides a single point of contact for your technical needs in building, deploying, and supporting software on the Microsoft platform Allows you to call Microsoft on behalf of your customer Allows you to bring Microsoft to your customer site for workshops and consulting services

22. 22 Services Available with MSPA Service Management Resource facilitation Service delivery planning Escalation management Proactive information distribution Global service coordination Problem Resolution Services Break-fix incidents Rapid onsite support service Multi-vendor coordination Designated support professional/team Consulting and Workshops Workshops Lab Services Design and Code Reviews Guidance Services Healthchecks Information Services Microsoft Premier Online Hotfix Download Partner-level Knowledge Base Incident Submission Collaborative Web Sites

23. 23 Fixed-price, prepackaged service plan Phone-based, pooled technical service coordinator; business hour availability Prioritized 24x7 technical support Limited phone-based support consulting services Foundational support needs in a fixed price package Standard Plan Plus Plan Customizable, scalable service plan Designated services account management with in-depth partner experience Prioritized 24x7 technical support with enhanced escalation Greater access to proactive support consulting services and custom consulting services Focused Partner advocacy Customized service options designed for complex partner needs Microsoft Service Partner Advantage Plans

24. 24 Co-engagement Partners and Microsoft Work Together Thousands of partners and their Consultants are engaged on Microsoft Consulting projects Partner enablement is part of the Microsoft Consulting business MCS Revenue by Partner Engagement Scenario 65% of Revenue - Microsoft Prime, Partner Sub 20% of Revenue - Microsoft Alone 7% of Revenue - Side-by-Side 2% of Revenue - To Partner 6% of Revenue - Partner Prime, Microsoft Sub 65% 7% 20% 2% 6%

25. 25 SKUSKU Where Microsoft Will Engage Directly The Theatre of Operations SDS/SKUs Target Accounts Customer Demand/ Customer Satisfaction New Technology Lighthouse Productive Use Accelerate Adoption Move the Market Accelerate Adoption and Enable Partners Do What is Right (Customer/ Partner Experience) Major Accounts SDS & SKU SDS & SKU Corporate Accounts Relationship Services Multiple TAMs Multiple ESCs 2 TAMs 2 ESCs 1 TAM 1 ESC TAM All project work includes opportunity for co-engagement

26. 26 SKUs SKUs Accelerate Adoption and Enhance Productive Use Ensure Customers capture full value of Microsoft technology Technology adoption Operational performance Reduce complexity and perceived risk of deploying Microsoft Enterprise solutions Grow the Enterprise Services Market for the Partner Ecosystem Objective Partner Participation Develop ‘SKUs’ Microsoft-proven best practices around business outcomes Productized IP – codified and transferable Clear engagement processes and timeframes Prove/refine the IP before general release to customers and partners Delivery by Accredited Professionals Empower Partners to be primary delivery vehicle for SKUs Approach Engage small number of Partners for co- engagement in IP testing and evaluation process Small number of partners pilot Partner-led SKU engagements and develop Partner Participation model Once a SKU solution released, partners take it to the broad market

27. 27 Continue Proving the Concept FY’07 Start to Move to Scale FY’08 Scale Up with Partners FY’09 Three Year SKU Strategy Key Themes Emphasis Technology Coverage Delivery Model Productive Use Limited: Exchange, Infrastructure Optimization Enterprise Services (ES) Led, Partner Pilots Expanded ES Led, Partner co- engagement, and Partner transition New SKU development and pilots continue as mature SKUs transition to Partners Specific areas of Microsoft Stack Mature SKUs Primarily Partner Led New SKU development and pilots continue as mature SKUs transition to Partners Accelerated Adoption and Productive Use

28. 28 Agenda Summary The Enterprise solutions market is growing and Microsoft is well-positioned to take advantage Microsoft’s Enterprise organizations are acting to ensure success for Microsoft and our Partners We’re focused on deeper customer and Partner relationships We’re investing in Services as a catalyst for growth in new products and technologies

29. 29 Microsoft Partner Services Contacts Microsoft Partner Services Strategy Bryan Rutberg Director, Services Partners, Microsoft Services bryan.rutberg@microsoft.com Microsoft Services Partner Advantage Darren Patrick Program Manager, US Partner Services darrenp@microsoft.com www.microsoft.com/partneradvantage Microsoft Partner Strategy Consultants Brooke Banbury Engagement Manager, US Partner Services bbanbury@microsoft.com

30. 30 © 2006 Microsoft Corporation. All rights reserved. This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.