1. Microsoft Payment Solutions Why You Need to Include Microsoft Payment Solutions As Part of Your Sales Strategy FOR INTERNAL MICROSOFT AND PARTNER USE ONLY

2. This presentation is intended to educate internal audiences, primarily field sellers and partners, on the capabilities and benefits of using Microsoft Payment Solutions (Financing – MSF). There are four levels of presentation materials in the MSF BoM: 1. Executive Summary: one page overview 2. Intro Presentation: 15-20 minute overview presentation or as field/partner seller introduction to MSF 3. Depth Presentation: one-hour presentation; appropriate for field/partner sellers in a longer-format presentation, such as a lunch-and-learn session 4. Appendix: More detailed supplemental slides We recommend adding case studies to your presentation to bring the MSF solutions and benefits to life. Contact your local Microsoft Payment Solutions Specialist or MSF for a complete list of case studies.

5. –Your Customers –Your Scorecard/Wallet –Your Future 1 2 3 4 –New Enterprise Agreement (EA) –Renewal –True-up –Add On –Services 5 6 7 8

6. Our captive finance subsidiary – established in 2003 Coverage for 85% of Microsoft global volume license revenues Over 100 seasoned payment solution professionals to help you Proven sales enabler

7. Microsoft Payment Solutions help customers expand their IT purchasing power and improve cash flow with an easy, flexible, and affordable payment plan aligned to their budget.

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9. Your CustomersYour Scorecard Your WalletYour Future

10. Growing trend: customers looking for a better way to pay for IT

11. IT Financing Market (Top 25 Countries)* Software Financing Market (Top 25 Countries)* Software Financing Penetration (Top 25 Countries)* * IDC Estimates (March 2011)

12. FY11 Microsoft Payment Solutions KPIs

13. Scorecard Goals Win Customers Statu s (YTD) 1BPOS Customer Adds in Enterprise (2400+ Seats) 2BPOS Customer Adds in Enterprise 3Enrollment for Application Platform (EAP) 4Exchange 2010 Deployment 5Lync 2010 Deployment in Enterprise Accounts 6Notes Seats Switched 7Windows Server Committed Licenses Drive Satisfaction Statu s (YTD) Scorecard Goals Grow the Business Statu s (YTD) Innovate Statu s (YTD) Windows Azure Platform Paid Subscriptions

14. Spread the cost for implementation and migration services with flexible payments Match costs to deployment Compete with SaaS vendors offering no upfront cost/monthly payment models Payments Year 1 of 3-year term Year 2 of 3-year term Year 3 of 3-year term Spread the cost of transition Year 1 of 3-year term Payments Instead of large up-front payment for software and migration costs

15. Evidence Whether driven by consolidating licenses or implementing a key business solution, an Enterprise Agreement is often a significant change for a customer. Financially, it represents a large cash outlay and a longer-term commitment to Microsoft. Microsoft Payment Solutions are ideal for customers considering a new Enterprise Agreement who need to: Spread payments to free cash flow or conserve capital Align payments with budgets/fiscal years [Insert logos]

16. Evidence Companies with Enterprise Agreements need to renew their agreements every three years. Customers may look to add new products but don’t have the budget; may consider delaying their renewal due to budgetary or other financial considerations; or may not be aware of the benefits of renewing early 1. Microsoft Payment Solutions are ideal for customers renewing an Enterprise Agreement who need to: Spread payments to free cash flow or conserve capital Align payments with budgets/fiscal years 1 Early renewal may help provide an immediate reduction in current year’s payments, flexible payments over four years aligned to licensing options, early lock-in of renewal pricing, sustained progress on their long- term IT roadmap, and the ability to upgrade more easily and add new products and/or consulting services to an existing contract at any time [Insert logos]

17. Evidence The yearly True-up provides an opportunity to monetize deployments resulting from up-selling or cross- selling activities that have occurred over the prior year. This can result in unbudgeted expenses, leading to difficult discussions, potential CPE issues, and delays of other projects. Microsoft Payment Solutions are ideal for customers who need to True-up their Enterprise Agreement: Pay for unplanned (unbudgeted) license purchases Retain budget for other IT investments/projects [Insert logos]

18. Evidence One of the biggest challenges for IT departments is how to fund new projects and upgrades, especially when they occur out of budget cycles. This can result in project delays and sub-optimal IT utilization as projects get bunched around budgets. Microsoft Payment Solutions are ideal for customers who need to fund new projects and who need to: Pay for unplanned license purchases OR are considering delaying projects due to budget cycles Consolidate license administration with existing agreements [Insert logos]

19. Evidence Services can often be the difference between a customer’s success and failure. The problem is that costs often get front-loaded before benefits are realized, reducing project ROIs. Microsoft Payment Solutions helps resolve this dilemma by enabling customers to align payments with benefits; or simply defer payments to future budget cycles. This lets your customer start your project earlier. Microsoft Payment Solutions are ideal for customers who require professional services and need to: Map payments to deployment to improve project ROI Start critical projects but defer costs to future budget cycles Consolidate services costs with existing agreements [Insert logos]

20. Leading International Professional Services Firm Leading German Investment Banker US Manufacturer of Home and Automotive Products Professional English Football League Club

27. Appendix

28. Software License Financing Total Solution Financing

29. Midsized (>250 Seats) Small (<250 Seats)

30. Extended Payment Terms (XPT) MSF’s flagship solution Unique and differentiated Flexible: spread payments across budget cycles with a semi-annual, quarterly, or monthly payment option Easy approval Simple amendment to EA Unique payment solution for EA customers using a simple amendment to the EA and no separate loan documents In addition to Extended Payment Terms, MSF Payment Solutions include a full portfolio of offerings to meet almost any Customer requirement/need

31. Customers can easily acquire the technology they need – when they need it Covers additional service needs and unexpected costs Streamlined and responsive lending process Customers can make purchases within their current budget by structuring payments across three years for software, services, and hardware. From This… To This… 0 $800,000 $400,000 $200,000 $500,000 Annual IT Budget One time purchase during fiscal year Year 1 of 3-year term Year 2 of 3-year term Year 3 of 3-year term Over budget $500,000: One-time cash based transaction Under budget by $128,372: Microsoft Finance 3-year term Opportunity to add or upgrade products, services, or software.

32. Customer PerceptionReality Customer Value

33. SituationSolutionBenefits Year 1 payment due December Year 1 at 33% Year 2 payment due December Year 2 at 33% Year 3 payment due December Year 3 at 33% Scheduled Payment Option Year 1 payment deferred to January Year 2 and ramped to 15% Year 2 payment due December Year 2 at 35% (not paid) Year 3 payment due December Year 3 at 50% (not paid) Ramped Payment Option

34. Example 1: Cash Transaction In these examples, the 3-year financed transaction offers more than double the Return On Investment of a cash transaction Example 2: 3-Year Financed Transaction IT solution cost $400,000 Year 1 payment $152,594 Year 1 return $80,000 Return On Investment52% Numbers presented here are for illustration purposes. Specific Return On Investment (ROI) will depend on a number of factors such as your cost of funds, rate of return, and current financing rates. ROI assumptions: Calculation based on $400,000 agreement. 8.98% APR. 36 equal monthly payments of $12,716.17. IT solution cost $400,000 Year 1 payment $400,000 Year 1 return $80,000 Return On Investment20%

35. ScenarioWhat to Listen For

36. Microsoft FieldCustomerPartnerMicrosoft

37. SMS&PPublic Sector

38. VAR Microsoft Software Third Party Software Partner Services Installation/Trainin g Hardware

39. Early involvement in MSSP is critical Maximize the impact by engaging at the Qualify (20%) stage to position the right solution, add more of the stack and premium products, and minimize discounting. Include with the very first CPS.

40. Microsoft Payment Solutions provides commercial and public sector customers with the flexibility to easily acquire technology by providing custom payment options which allows you to combine software, services, and hardware in a single investment. Customers can easily add new products, services, or upgrades, including those from partners and third parties, at any time during the contract. Use Extended Payment Terms and spread payments to help simplify the purchase process at the point of sale. Maximize the impact by engaging at the T-10 stage to position the right solution, add more of the stack and premium products, and minimize discounting. Include with the very first CPS.

41. True-up is the annual checkpoint for a customer’s year over year growth in deployment during the course of an Enterprise Agreement. EA customers can start using software covered by their EA, and disclosing these deployments in their yearly True-up report. This saves the customer time and consolidates orders for new licenses as one annual order. Maximize the impact by engaging 6 months prior to True-up to position the right solution, add more of the stack and premium products, and minimize discounting. Include with the very first CPS.