1. 1 The SBS 2003 Opportunity for System Builder Partners Pamela Lauz, SBS Product Manager Phil Burtscher, Partner Technology Specialist

2. 2 Agenda White Box Server Opportunity in Canada Windows Small Business Server 2003 SBS 2003 R2 Preview and Technology Upgrade Program Identifying a Server Opportunity SBS Resources

3. 3 Server Opportunity in Canada The Canadian Small Business PC Market Source: AMI Partners, March 2005  948,031 Businesses in Canada with 1-50PCs First Server Opportunity: 619,047 (65%) do not have a server - 85,000 (14%) intend to buy their first server in 2006 Upgrade Opportunity: 328,984 (35%) who have a server -20,000 (6%) intend to upgrade in 2006  Server install-base projected to grow by approx 10% in Small Business segment

4. 4 IDC Whitepaper: White Box Server Opportunities for System Builders

5. 5 White Box Server Opportunities for System Builders – key findings The move to assemble servers is typically driven by customer demand for one IT provider, especially amongst customers with less than 100 employees. Server deals provide significant opportunities for the sale of additional products and services, as well as improved profit margins. A server sale can pull an average of 10 PCs. Margins for white box servers are almost double that of PCs. Servers under $3,000 are expected to grow compound annual growth rate (CAGR) of 28.1% between 2003 and 2008. http://oem.microsoft.com/downloads/BSBB/WhiteBoxOpportunities_WP.pdf

6. 6 White Box Server Opportunities: Best Practices Provide staff with both technical and solution sales training. The transition to assembling servers as well as desktops is a matter of weeks, rather than months, and in most cases is primarily accomplished using existing resources. Demonstrate ability to support servers by providing shorter response times via email and telephone. Attain a deep level of understanding of customer buying cycles and IT infrastructure. This is a great opportunity for partners to leverage their ‘trusted advisor’ status and emphasize the value of their ‘proximity’ to the customer’s infrastructure over larger manufacturers. Cultivate partnerships with other industry players such as component manufacturers, system integrators and other resellers in order to share leads and deliver sales. http://oem.microsoft.com/downloads/BSBB/WhiteBoxOpportunities_WP.pdf

7. 7 Windows Small Business Server 2003

8. 8 SBS 2003 is complete There are 2 editions for Small Business Server 2003: Standard and Premium Standard Edition introduced in October 2003. SBS Standard includes: Windows Server™ 2003 allows small business owners to keep their business up and running thanks to a security-enhanced, reliable operating system. Microsoft ® Exchange Server 2003 is Microsoft's messaging and collaboration server designed to help small businesses communicate more effectively using shared calendars and contacts and integrated e-mail. Microsoft ® Office Outlook 2003 to manage e-email, calendars, contacts and team information The Premium Edition adds three components to SBS Standard: Microsoft ® SQL Server™ 2000 provides a powerful database system that allows small business owners to run line-of-business applications. Microsoft ® Office FrontPage ® 2003 allows small business owners to create professional websites quickly, easily, and precisely. Microsoft ® Internet Security and Acceleration (ISA) Server 2004 provides a multilayered firewall and tools to manage and monitor internal Internet access.

9. 9 Additional End-user Tools Intranet Site powered by Windows SharePoint Services Manager company-wide calendar, document version control, document libraries: http://www.microsoft.com/technet/prodtechnol /sppt/wssapps/default.mspx http://www.microsoft.com/technet/prodtechnol /sppt/wssapps/default.mspx Remote Web Workplace Access to network, intranet, desktop and email from any Internet browser Microsoft Shared Fax Server Fax from user’s desktops Volume Shadow Copy Facilitates document recovery Back Up WizardEnables automatic back up onto tape drives, etc.

10. 10 Additional IT Management Tools Configuration “To-Do” ListWeb-based, centralized configuration. Configuration can be completed in 15 min after server is installed. Remote Monitoring and Management Console Manage client’s server remotely

11. 11 SBS 2003 is affordable Price Comparison – CAD Retail SBS 2003 Standard $809 CAD VS Windows Server 2003 Std $1,369 CAD Windows Server 2003 Exchange Server 2003 Outlook 2003 Customer + Partner tools Windows Server 2003 Equivalent Standalone Solution Starts at: $3,903 SBS 2003 Premium $1,999 CAD VS SQL Server 2000 $ 1,989 CAD SBS 2003 Standard SQL Server 2000 ISA Server 2000/2004 FrontPage 2003 Customer + Partner tools SQL Server 2000 Equivalent Standalone Solution Starts at: $8,186

12. 12 Designed for Small Business ScalabilityOptimization Supports up to 75 clients Server SKU includes 5 Client Access Licenses (CALs) Additional CALs are available in packages of 5 and 20 There can only be 1 SBS in any SBS network – SBS must be the root of the Active Directory forest Additional Windows Servers can be added to SBS network as ‘secondary’ domain controllers SBS CALs cover CAL requirements for any additional Windows server in an SBS network. Terminal Services in Application Sharing Mode is disabled on SBS 2003 for Security and Performance reasons. Terminal Services in Application Sharing Mode can be securely deployed on an additional Windows Server. http://www.microsoft.ca/partner/products/windows/smallbusinessser ver2003/terminalservices/. http://www.microsoft.ca/partner/products/windows/smallbusinessser ver2003/terminalservices/ When TS is installed in an additional Windows Server, additional TS CALs must be acquired: All components must be installed on the same server box Transition Packs SKU’s are available to enable separation of server components by granting standalone licenses to each server component

13. 13 Transition Packs: Grow with your business Formerly known as: “Migration” Packs Facilitate Small Business growth – addresses 2 key scenarios: Customer exceeded the 75 client limit Customer would like to install SBS components on separate hardware SBS Transition Packs grant licenses to standalone versions of SBS components 2 types of SBS Server Transition Packs: SBS Transition Pack Standard ($2,299; T72-00634) SBS Transition Pack Premium ($5,349; T75-00752) 1 type of SBS CAL Transition Pack (available in 5 and 20 Packs): Grants licenses to standalone CAL versions of Windows Server 2003 and Exchange Server 2003 For more information: http://www.microsoft.com/WindowsServer2003/sbs/techinfo/overview/licensingfaq.mspx http://www.microsoft.com/WindowsServer2003/sbs/techinfo/overview/licensingfaq.mspx

14. 14 Available SKU’s – including SBS Service Pack 1 COEM System Builders Retail/FPP Open Business Open Value WSBS Standard $809 T72-00632T72-00117T72-00111T72-00661 WSBS Premium $1,999 T75-00749T75-00193T75-00144T75-00798 5-Pack CALs$659 Device: T74-00001 User: T74-00002 Device: T74-00245 User: T74-00192 Device: T74-00239 User: T74-00186 20-Pack CALs $2,589 Device: T74-00003 User: T74-00004 Device: T74-00137 User: T74-00084 Device: T74-00131 User: T74-00078 Product Upgrade (Standard to Premium) $1,219 T75-00754 Version Upgrade (from 2000 to 2003) $809 T75-00750 Transition Pack Std (Standard to Standalone) $2,299 T72-00634 Transition Pack Premium (Premium to Standalone) $5,349 T75-00752 Part Numbers Product ERP (CAD) Canadian Pricelist (all products): http://www.microsoft.com/canada/pricelists/ SBS Pricing and Licensing: http://www.microsoft.ca/sbs/default.aspx#pricing

15. 15 Coming Soon: SBS 2003 Release 2 Estimated Availability: Q2 CY 2006

16. 16 Automated, network-wide patch and update management for all Microsoft Update supported products, lowering the costs of managing a Microsoft-based network and helping to maintain a more secure infrastructure The “green check” of software health indicates that your computers running Microsoft software are up-to-date – or the daily report details actions necessary for attaining “green check” status. Increased mailbox limits from 16 GB to 75 GB, enabling improved productivity for employees Inclusion of SQL Server 2005 Workgroup Edition technology in SBS 2003 R2 Premium Edition http://www.microsoft.com/windowsserver2003/sbs/r2/default.mspx SBS 2003 Release 2 Technical Benefits

17. 17 Expanded client access license (CAL) rights including access to additional Exchange Server 2003 and SQL Server 2005 Workgroup Edition servers in the SBS 2003 R2 network, allowing customers more flexibility in growth Expanded CAL benefit apply to existing SBS CALs upon upgrading to R2. Existing SBS CALs do not need to be upgraded. SBS 2003 Release 2 Licensing Benefit

18. 18 SBS 2003 Release 2 Technology Upgrade The Technology Upgrade Program provides eligible customers with a copy of the Microsoft Windows Small Business Server 2003 R2 Upgrade Media Kit if they purchase Windows Small Business Server 2003 with SP1 (Standard or Premium Edition) preinstalled on a new server from an original equipment manufacturer (OEM) or System Builder during the eligibility period: English Language versions: March 1, 2006 - July 31, 2006 Non-English Language versions: March 1, 2006 - August 31, 2006 http://www.microsoft.com/windowsserver2003/sbs/r2/default.mspx

19. 19 SBS 2003 Release 2 Technology Upgrade Technology Upgrade – Eligibility Requirements: Only OEM and System Builder licenses qualify for the program. FPP (full packaged products) and Volume Licensing options do not qualify for this program. Customers will need to have purchased Microsoft Windows Small Business Server 2003 with SP1 (Standard or Premium Edition) with a new server during the eligibility period.

20. 20 SBS 2003 Release 2 Technology Upgrade Technology Upgrade – Procurement: Customer need to follow these instructions 1.Retain Proof-of-Purchase Information and Locate Certificate of Authenticity: Upon purchasing on or after March 1, 2006, retain all relevant documents for the proof-of-purchase, including but not limited to the invoice. In addition, locate the Certificate of Authenticity of the product that should be adhered to the server chassis. Customers will need this information when requesting the Upgrade Media Kit. For information on locating your Certificate of Authenticity, see http://www.microsoft.com/resources/howtotell/en/default.mspx http://www.microsoft.com/resources/howtotell/en/default.mspx 2.Revisit this Page to Place the Order: Customers should bookmark this page or www.microsoft.com/sbs in the near future. Once customers see Microsoft’s “Release-to-Manufacturing” announcement, they can place their order for the Microsoft Windows Small Business Server 2003 R2 Upgrade Media Kit. Please note that while there is no charge for the Media Kit itself, there will be a nominal fee for shipping and media fulfillment operations. www.microsoft.com/sbs 3.Order Your Kit: Eligible customers must order the Windows Small Business Server 2003 R2 Upgrade Media Kit by the following dates: English Language versions: September 15, 2006 Non-English Language versions: October 15, 2006

21. 21 SBS 2003 Release 2 Technology Upgrade Technology Upgrade – Media Kit Contents: R2 Technologies CD Premium Technologies CD (2 CDs) – Premium Edition only A “Getting Started” poster Certificate of Authenticity for the Upgrade, which will need to be adhered to the server chassis.

22. 22 Pricing: Upgrade SKU price to be announced upon RTM SBS customers with Software Assurance will be able to obtain SBS 2003 R2 without purchasing a new server license for a nominal shipping and handling fee. SBS customers without Software Assurance will be able to purchase a new version upgrade SKU via retail, which will enable them to cost-effectively upgrade from any version of SBS (4.0, 4.5, 2000, 2003) to SBS 2003 R2. SBS 2003 Release 2

23. 23 Identifying a Server Opportunity

24. 24 You're on the phone with a customer who currently uses a peer-to-peer network. You want to convince this customer to purchase his first server Listen for clue words: Your first step is to listen for words that tell you this customer would benefit from a server One of the best questions to ask is, “What do you need to do?” OR Listen for things customer challenges: “What do they need to fix?” Clue Words, Needs, Challenges

25. 25 ScenariosNeeds To DoNeeds To FixYou Say Networking and Resource Sharing (File and Print) "I need to connect two PCs.“ "I need to share information with employees.“ Not sharing information and printers By using SBS 2003 your employees can share equipment and resources, such as Internet access, printers, fax machines, and modems. By not having to purchase individual printers, or installing extra phone lines, you'll save money in the long run. Security"I need to back up my information." Data loss; Lack of network security With SBS 2003 you'll be protected from hackers. And, SBS 2003 also backs up your employees' work and allows you to restore accidentally deleted files and previous versions of documents. Intranet, Data Management “I need to organize data; control document versions” Version control problems (finding/sharing information) Right out of the box, SBS 2003 lets you set up an internal company website (Intranet). Your employees can use it to collaborate on team projects, share their calendars to avoid scheduling nightmares, and post important announcements and links. SBS 2003 also provides one central location for information, so your employees aren't saving files in different places. They won't need to depend on other coworkers if they need a specific document. Needs, Challenges If the customer says….

26. 26 ScenariosNeeds To DoNeeds To FixYou Say Mobility and Remote Access "I need to access information from the road." Inability to access company information while away from the office Whether you’re on a business trip or working from home, SBS 2003 lets you access your e-mail, internal company website, files in you’re my Documents folder on your desktop at work, business applications, and files on your company network, using any computer connected to the Internet. All you need to do is use a simple URL and a user name and password, and you're in! Website, Email "I need to communicate with customers." - Inability to contact or attract potential customers - No company or web presence Using SBS 2003, you can stay connected to your customers and manage your customer relationships better. How? With SBS 2003, you can create a professional website, host your own e-mail address, and send one-to-many e-mails messages or faxes to your existing customer base. Needs, Challenges If the customer says….

27. 27 Upgrade Advantage Be ready to explain the benefits of upgrading old, single servers to SBS 2003. Benefits of SBS 2003 vs. SBS 2000 SBS 2003: Provides remote access to information and resources from any Internet-enabled PC Allows users to find, share, and communicate business information in one central location— a preconfigured internal company website Retrieves deleted files and restores earlier versions of files Has improved and faster performance Is easier to use with its integrated user interface, easy setup and management Benefits of SBS 2003 vs. NT4 (includes all the benefits mentioned above) Support of NT4 operating systems ended on December 31, 2004. SBS 2003 provides additional security and enhanced performance. Current servers offer much improved performance and reliability.

28. 28 SBS Resources

29. 29 SBS Partner Website SBS 2003 for Canadian resellers/partners: http://www.microsoft.ca/partner/sbs http://www.microsoft.ca/partner/sbs Offers, Promotions and Rebates Marketing Materials: templates, boxshots, guides, 180-day evals, co-marketing tools Readiness and Training Project Guides Licensing Upcoming Events

30. 30 Build Servers, Build Business Website Joint Microsoft and Intel site for System Builder partners http://www.microsoft.ca/buildserverswithintel http://www.microsoft.ca/buildserverswithintel Marketing materials: email templates, banners, etc. Local offers Technical and Business Training

31. 31 OEM Solutions Competency The OEM Hardware Solutions Competency is specifically designed to help recognize and support partners with proven expertise in the following solution specializations: System Building Specialization If your company builds and promotes client or server hardware systems preinstalled with genuine Microsoft software and you provide key support services to customers Device Manufacturing Specialization If your company designs and manufactures hardware devices used as computer parts, peripherals, or accessories https://partner.microsoft.com/oemov

32. 32 Small Business Technology Assessment Program Enhanced Program: Now offered by Microsoft Corp. to technology partners worldwide Small Business Technology Assessment Toolkit: - Detailed "Business Assessment" guide - Comprehensive "Technical Assessment" guide - Microsoft Small Business Solution Selling guide - Three-year planning template - Sample proposal template - Server deployment guide - Customizable sales and marketing tools Complete monthly report and earn credit towards Microsoft Merchandise http://www.microsoft.ca/technicalassessment

33. 33 Small Business Specialist Community (SBSC) Partner Program designed for technology partners who sell to and support Small Business Use of SBSC logo Exclusive rebates and benefits Training http://www.microsoft.ca/sbsc Webcast: Benefits of the Small Business Specialist Community Tuesday, March 28th 2:00 pm EST http://msevents.microsoft.com/CUI/EventDetail.aspx?EventID=1032292145&Culture=en-CA

34. 34 Newsletters Have you heard the latest? MS Canada Partner Newsletter: https://partner.microsoft.com/global/40010458 https://partner.microsoft.com/global/40010458 MS Canada TechNet Flash: http://www.microsoft.com/technet/canada/flash/ http://www.microsoft.com/technet/canada/flash/

35. 35 SBS Community 24x7 Peer Support SBS Community Site http://www.microsoft.com/windowsserver2003/sbs/community/default.mspxhttp://www.microsoft.com/windowsserver2003/sbs/community/default.mspx SBS MVP’s in Canada  Calvin McLennan – Waterdown, Ontario  Les Connor – Winnipeg, Manitoba  Jeff Loucks – St Catharines, Ontario SBS Newsgroups http://groups.yahoo.com/group/sbs2k/ technical group, users of all levels plus partners, VAR's, consultants http://groups.yahoo.com/group/smallbizIT/ more on the sales and management of SMB market, partners, VAR's, consultants Canadian Usergroups Toronto Windows Server User Group (TWSUG) http://www.twsug.comhttp://www.twsug.com Toronto North SBS Consultants Group http://groups.yahoo.com/group/SBSCanada/http://groups.yahoo.com/group/SBSCanada/ Montreal IT Pro User Group (MITPUG) – www.mitpro.ca/www.mitpro.ca/ Winnipeg IT Pro User Group – http://www.witpug.orghttp://www.witpug.org Vancouver Technology User Group (VANTUG) - http://www.vantug.com/http://www.vantug.com/ Montreal GUMSNET – http://www.gumsnet.orghttp://www.gumsnet.org

36. 36 Resources for Customers List of SBS Service Providers: http://go.microsoft.com/?LinkID=1380728 http://go.microsoft.com/?LinkID=1380728 SBS 2003 Product Information http://www.microsoft.ca/sbs Networking Basics For Small Business http://www.microsoft.com/windowsserve r2003/sbs/evaluation/networking/default. mspx Recoup your SBS investment in less than a month http://www.microsoft.com/windowsserve r2003/sbs/evaluation/roi/outofboxROI.ms px Case Studies http://www.microsoft.com/canada/smallb iz/products/sbs/casestudies.mspx

37. 37 Thank you pamlauz@microsoft.com philbur@microsoft.com