Software + Services

Xavier LamoteDirectorBusiness and Marketing Organization

Microsoft BeLux

Hands up! – if…

…You understand the concept of SaaS …You’ve heard of S+S… You understand the difference between SaaS and S+S …You attended WPC / Houston… You feel comfortable explaining the difference here on stage?

agenda

Back ground & Drivers for changeS+S pillarsTypes of ServicesThe Partner opportunityGet ready for action

The revolution of “fast and cheep”

Technology

The race for “a free long tail”

Business

Two strong drivers for change

Yesterday’s big debate

+SOFTWARE SERVICES

Google CEO Says Software

to Play a Bigger Role

“Let me just say it: We want native third-party applications on the iPhone, and we plan to have an SDK in developers' hands in February” - Steve Jobs

Apple Reverses on Third-Party iPhone Apps

"Ajax and Web 2.0 are great technologies for casual use, but for mission critical you need the capabilities of a desktop app." Greg Gianforte, CEO ,RightNow

The Microsoft Strategy: Best of both worlds

Software + ServicesWeb 2.0 SOASaaS+ +

Monetization Composition FederationDeliveryExperience

PCBrowserMobileTV

SoftwareLicenseSubscription

ServiceTransactionAdvertising

On PremisePartner HostedMicrosoft Hosted

Aggregation of Services

Directory federationStorageComputer resources

Services PlatformBig Picture

EssentialServices

Building BlockServices

Finished Services

Windows Server

Platform & Application Servers

StorageComput

eMgmt …

Database

Server

Integration

Server

IdentityMgmt

App.Services

…

SharePoint Server

ExchangeServer

…OC

Server

Office Servers

OfficeLive

SharePoint

Online

ExchangeOnline

OCOnlin

e…

“Live” (Consumer) & “Online” (Business)

Live Platform Services & “Project Zurich”

Windows Cloud Services (“Red Dog”)

StorageComput

eMgmt …

Device Mesh

DatabaseServices

IntegrationServices

IdentityMgmt

…

On Premise Servers Servers Hosted Off Premise

Software + Services For IT Choice

Control and ownershipCustomization

Outsource ITto Partner or Microsoft“Microsoft Online”

Delivery Options

HybridApproach

Microsoft Online ServicesEnterprise class software delivered via

subscription services hosted by Microsoft and sold with partners

Microsoft Online Services

Starting with…

Introducing: Business Productivity Online Suite (BPOS)

Partner-driven Sales ModelEnable sales and supporting services through Microsoft partnersMicrosoft service delivery option through service providers

Streamlined Communications

Business Class Reliability and

Security

Simplified Management

$

Enterprise Class Software Delivered as Subscription Services

Sell today!

Standard and Dedicated PlatformsStandard Dedicated

Multiple Customers, One Architecture

Customer Needs Rapid Deployment

Self service for management and admin

Single sign-in client for identity

Single Customer per Architecture

Businesses Greater than 5,000 Users

Customer Needs all Server Features

VPN connection with MSFT for identity12

PARTNERS IN THE S + S WORLD

An Evolving World

Examples within our Ecosystem:TCP IP codingSystem Builders > VAR > Solution Partner

Examples Out of our Ecosystem:Kodak vs FujiPolaroid

Who wants to be the next Polariod?

The “SaaS opportunity”IDC, a revised prognosis

WW Software on Demand Rev-enue Growth 2006 - 2011:

Comparison of May 2006 and March 2007 Forecasts

2006 2011 $-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

Worldwide Software on De-mand Revenue, 2006 and 2011

($B

)

Source: Worldwide Software on Demand 2007.2011 Forecast: A Preliminary Look at Delivery Model Performance, IDC #206240 March 2007

2005 2006 2007 2008 2009 2010 20110

2000

4000

6000

8000

10000

12000

14000

16000

WW Software on Demand Revenue, 2005 - 2011:

Comparison of May 2006 and March 2007 Forecasts

March 2007 forecast (M$) May 2006 forecast (M$)

• CAGR world wide > 30% over the next 5 Years

Partners: Services Path To Revenue

Customers that buy subscription software are

more inclined to buy subscription partner

services

Resell/Host

ManagedServices

Integrate

Customize

Migration and IntegrationProject Based

Revenue

Business Process consulting, SharePoint workflow design, Intranet customization

Repeat Revenue

Resell/Host Transactiona

lRevenue

Desktop Management and Optimization, end user support

RecurrentRevenue

Consult

Business Productivity Online Suite Business Model

Transaction

Depth

Bre

adth

Solution

Partners with a Services Model

Today….

…Will Still Add Services

Partners who Sell and Influence

Today…..

…. Will Still Sell and Influence

Online Business Model

Program Based Upfront & Residual Fees

Customer or Partner

(on behalf of the customer) Places Order

MSFT Sets Price and Does Billing

Partner receives a fee

Contract Based Exceptions for Pass Thru Billing

Services Scenarios

Exchange Upgrades

Migrations

SharePoint Opportunities

Managed Services

Partner Opportunity70% New Seat Opportunity

32% Compound Annual Growth

Up to 85% Increase in Partners’ Exchange Sales Expected

US pricing example

18

$ 10.00

$ 7.25

$ 4.50

$ 2.50

$15.00

Sum of Components = $ 24.25

Exchange Online

SharePoint Online

OfficeLiveMeeting

Office CommOnline

BPO Standard Suite

38% Discount

Software +Services in Belux

19

Q1Jul Aug Sep

Q3… Jun

To C

usto

mer

To P

art

ners

Q2Oct Nov Dec

Q3Jan Feb Mar

Q4MayJune

Partner Signup• Agreement• Beta account

WPC

International Technical Airlifts•Technical/Licensing training

V1 Launch• BPOS

Standard• US Only

International Launch

• International versions

• OCS capability Beta

Sales & Marketin

g Update

How to prepare best?

General information and awareness:• Read more about your S+S your business opportunity via

http://partner.microsoft.com/online• Download & Read the S+S booklet from the Partner Portal• Check out S+S the Q& A reflecting the questions raised during

WPC

Get ready for action:1. Follow the online training (1h) 2. Do the assessment online by responding a list of questions3. Sign the Microsoft Online Services Partner Agreement

= Mandatory steps in order to be selected amongst the 20 BPOS Pilot partners for launch in Belux

Call To Action•Discover your business opportunity and go to http://partner.microsoft.com/online1•Sign the Online Services Agreement

2•Follow the training online and do the Online Services Assessment3•Check out the partner newsletter in coming months4

Additional Resources

Category Resource URLSoftware-plus-services:Training & Information

Microsoft Partner S+S Whitepaper

https://partner.microsoft.com/spluss

Innovate-On http://www.innovate-on.com

Hosting Partners http://www.microsoft.com/serviceproviders/directory/saashostingpartners.mspx

Office Live Office Live Small Business Resources (Public)

http://dev.officelive.com/US/Pages/Training.aspx

Customer Offer http://officelive.com

Partner Offer http://dev.officelive.com

Licensing Microsoft Online Services Guide – Volume Licensing Brief:

http://www.microsoft.com/licensing/resources/volbrief.mspx

Microsoft Online Services Business Reference Guide for

https://partner.microsoft.com/global/licensing/licensingprograms/40047805

Windows Live Windows Live Partner Portal https://www.quickstartwl.com

CRM Microsoft Dynamics CRM (Internal)

https://mbs.microsoft.com/partnersource/

Microsoft Dynamics CRM (External)

http://www.microsoft.com/dynamics/crm/default.mspx

Customer-Facing http://crm.dynamics.com

http://www.microsoft.com/downloads/

© 2008 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista 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.