Microsoft Business Solutions 9 September 2003 Microsoft Business Solutions 9 September 2003 Nick Fletcher Manager – Marketing & Programs Microsoft Partner Group

Agenda Microsoft Business Solutions Microsoft Business Solutions Changing Market Creates Opportunity Changing Market Creates Opportunity Product Direction Product Direction Meeting Market Needs Through Partnerships Meeting Market Needs Through Partnerships How To Engage How To Engage

  Microsoft Acquires Great Plains  Microsoft bCentral and Great Plains merge Microsoft acquires Navision and merges with Microsoft Great Plains Microsoft Business Solutions merges with SMS&P HQ, WW and field  Microsoft Business Solutions brand launched Building the Foundation for Growth Compelling product roadmap Compelling product roadmap Broad tools strategy Broad tools strategy Deep field integration Deep field integration New brand New brand Q1 FY01 Q2Q3Q4Q1 FY02 Q2Q3Q4Q1 FY03 Q2Q3Q4 Deep Commitment 3,900 team members3,900 team members 1,700 R&D headcount1,700 R&D headcount 6,000 partners6,000 partners 260,000 customers260,000 customers

Deep Commitment to Business Applications Opportunity

Customer Priorities During IT Downturn $ Billions Source: McKinsey 15% CAGR Growth Expected Total IT Spend Growth During Bubble Actual IT Spend Customer Priorities Increase efficiencyIncrease efficiency Reduce business riskReduce business risk Deliver measurable business valueDeliver measurable business value Connect business partners, systems and processesConnect business partners, systems and processes Manage suppliers, customers & employeesManage suppliers, customers & employees

Small and Mid-Market Solutions & Partners Group (SMS&P) Market Opportunity Market Opportunity  AMI predicts $474B this year  $860B by 2007 Bottom line growth in IT spend Bottom line growth in IT spend  IT spend estimated at $420 billion today  IT spend expected to reach $750 billion by 2006 Partnership Potential Partnership Potential  We can not do it alone

Business Applications Segment Prime for Leadership Large Market Large Market Underserved Underserved New Technology New Technology Transformational Opportunity Business Applications Market Segment Large & Fragmented Market Segment Size by Category Market Segment Size by Customer Segment Source: Industry and McKinsey EstimatesSource: IDC 5/03 License & Maintenance Only ’ 02 ’ 06 MBS Segment Share ’ 02 ‘ 06 ERP$23B$29B1%3% CRM $ 7B $ 9B 0%2% Total$30B$38B1%3% ’ 02 ’ 06 MBS Segment Share ’ 02 ’ 06 SMB/CAS$16B$20B2%4% Enterprise$14B$18B0%0% Total$30B$38B1%3%

Scalable Solutions Equipped to Serve a Broad Market Underserved TCO too high Underserved Narrow footprint Fragmented No clear global leader Microsoft Strategic ISV Partnerships Small Business PCs employees Midmarket PCs ,000 employees Corporate > 500 PCs > 1,000 employees Enterprise ISVs Partners

ANZ Market – By Employees Australia New Zealand ANZ Total Total1,164,100281,3401,445, to 49 25,8005,50031, to 99 7,4001,5408, to 499 5,0301,0156, to 999 1, , Sources: ABS 2002, Statistics New Zealand 2002, Microsoft Data 2002

ANZ Market is Underserved Segment MBS % MBS Total ANZ Total ANZ % 20 to %28331,3000.9% 50 to %2608,9402.9% 100 to %3716,0456.1% 500 to %721,2905.6% % % Sources: ABS 2002, Statistics New Zealand 2002, Microsoft Data 2002 Opportunities for new customers across all employee segments

Business Solutions Microsoft Delivers the Best Solution Offerings to Small and Medium Businesses Solution Categories: Sales, Marketing, Service Solution Categories: Financials, Human Resources, Payroll, Project Management Solution Categories: Inventory, Sales Orders, Purchasing, E-commerce, Retail Management, Manufacturing EnterpriseResourceManagement Analytics CustomerRelationshipManagement Supply Chain Management Solution Categories: Analysis and Reporting, Forecasting, Budgeting, Consolidation Platform Client & Productivity

Productivity Through Integration Vince Cordi Partner Account Manager Small and Mid-Market Solutions & Partners

Solution Categories: Sales, Marketing, Service Solution Categories: Financials, Human Resources, Payroll, Project Management Solution Categories: Inventory, Sales Orders, Purchasing, E-commerce, Retail Management, Manufacturing Connecting Customers EnterpriseResourceManagement Analytics CustomerRelationshipManagement Supply Chain Management Solution Categories: Analysis and Reporting, Forecasting, Budgeting, Consolidation Empowering Employees Integrating Business Partners Platform Client & Productivity Delivering Business Insight Broad Functionality & Tight Integration

Extending Beyond The Application Vince Cordi Partner Account Manager Small and Mid-Market Solutions & Partners

Transfor- mational Apps V2 Transfor- mational Apps V1 CRM 1.0 Business Portal 1.0 Business Network 1.0 Transfor- mational Apps V1 CRM 1.0 Business Portal 1.0 Business Network 1.0 Microsoft Business Solutions’ Twofold Development Strategy Today Current ERP Solutions Retail & POS Business Intelligence CRM 1.0 Business Portal 1.0 Business Network 1.0 Breakthrough Migration and Investment Assurance Transformational Applications

Major Upgrades Coming Across All Products Calendar Q Great Plains Release 7.5 Calendar Q Navision Axapta

New Solutions Deliver Opportunities For Transformational Value Nov 2002 Retail Management Professional Services Automation Customer Relationship Management December 2003 June 2003 Business Portal Microsoft Business Network To Be Decided

Great Plains 7.5 Navision 4.0 Axapta Customer Relationship Management Business Portal Retail Management Professional Services Automation Microsoft Business Network R&D Investments Support Significant Short Term Innovation Transformational Apps in 2005

Opportunity Overview Expanding opportunity in this market Expanding opportunity in this market Microsoft is investing – R&D and in the Field Microsoft is investing – R&D and in the Field Revenue growth Revenue growth More customers More customers Partnership for success Partnership for success

ERM Partnerships Axapta, Great Plains and Navision Axapta, Great Plains and Navision Authorisation fee $5,000 with $3,000 renewal Authorisation fee $5,000 with $3,000 renewal Training model Training model Minimum certification required Minimum certification required Business planning and account management Business planning and account management People focused, and domain knowledge People focused, and domain knowledge Margins and branding Margins and branding What do you bring in that’s new? What do you bring in that’s new?

User Interface and Reporting Vince Cordi Partner Account Manager Small and Mid-Market Solutions & Partners

Great Plains Standard Better suited to lower mid-market Better suited to lower mid-market Lowering the bar for a new channel Lowering the bar for a new channel No authorisation fee, still a renewal No authorisation fee, still a renewal Immediate access to training Immediate access to training NDA, NFR software, reduced certification, and then sell NDA, NFR software, reduced certification, and then sell Standard only, Edition more commitment Standard only, Edition more commitment Domain knowledge still important Domain knowledge still important

Customer Relationship Management CRM – open licensing model CRM – open licensing model Graduated margins – certification necessary Graduated margins – certification necessary Online, classroom and certification Online, classroom and certification Installation, Application and Customisation, Development to come Installation, Application and Customisation, Development to come Strong customer interest today Strong customer interest today

Customer Relationship Management Required skills and knowledge: Required skills and knowledge:  CRM domain experience  Microsoft Windows 2000 Server  Microsoft Exchange 2000  Active Directory  Microsoft CRM training Visit: Visit:

Retail Management Systems Lead Partner – POS Partners Lead Partner – POS Partners Authorisation fee $3,000 with $3,000 renewal, 20 incident support calls Authorisation fee $3,000 with $3,000 renewal, 20 incident support calls Margins and engagement Margins and engagement Support and training via POS Partners Support and training via POS Partners  Contact:Richard Ranson  Phone: 

Investments Provide New Wave of Opportunities for Partners and ISVs Higher Solution Value ProprietaryMiddleware ISV Horizontal Functionality ISV Industry Functionality ISV Vertical Functionality Functionality Gap Solved by Customization Microsoft Business Framework (Visual Studio) ISV Vertical, Industry & Horizontal Functionality Functionality ISV Vertical & Industry Functionality Functionality Unrealized Customer Needs Windows Server 2003

Interfacing With Third Parties Vince Cordi Partner Account Manager Small and Mid-Market Solutions & Partners

ISV Partnerships Immature programs Immature programs Focus on being a reseller Focus on being a reseller Great Plains an exception Great Plains an exception Visual Studio.NET Visual Studio.NET Engage with us! Engage with us!

Partners Partnering MBS Partners need infrastructure assistance MBS Partners need infrastructure assistance Customers that need business applications Customers that need business applications Online solution and partner tool being developed Online solution and partner tool being developed Engage with us! Engage with us!

Call to Action If you are interested in learning more about a MBS Partnership: If you are interested in learning more about a MBS Partnership:  Visit:  Contact:Katherine Le Count  Phone:  Information on training: Information on training:  Contact: Sharon Schoenborn  Phone: 

© 2003 Microsoft Corporation. All rights reserved. This presentation is for informational purposes only and it covered under a Non Disclosure Agreement. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY.