1. 1 Business Model TransformationBusiness Model Transformation For Value Added ResellersFor Value Added Resellers Transforming Your Team Creating An Action Plan Aligning Sales & Delivery Refining Marketing Developing Cloud Solutions Understanding The Road Ahead Identifying The Change Imperative

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3. 3 Transforming Your Team Creating An Action Plan Aligning Sales & Delivery Refining Marketing Developing Cloud Solutions Understanding The Road Ahead Identifying The Change Imperative Introduction

4. 4 Who Am I ?Who Am I ? Martin Gregory marting@MG365.com.au “You can do anything if you put your mind to it!” Background NABISCO GROUP MICROSOFT - Architectural Engineer, Windows Marketing, OEM Group Sales Manager, Northern Europe, Platform Strategy (Competitive Strategy), Director Server and Tools Business Group, Cloud Lead MG365 Personal Rugby Adventure Transformation An adaptation, shift, conversion, and/or a revolution that manifests a new possibility

5. 5 Partner IntroductionsPartner Introductions Name And Role Primary Solutions Set Focus Industry Or Vertical Focus Workshop Objectives Tell Us Who You Are!

6. 6 Workshop ObjectivesWorkshop Objectives Learn how to focus your marketing efforts to drive results. 5 Understand how to accelerate the sales cycle by motivating your team and streamlining your processes. 6 Determine specific actions you can take to transform your team. 7 Learn how your business can evolve to take advantage of the Cloud opportunity. 1 Develop a strategy appropriate for your business to enter the Cloud market. 2 Understand the economics of a profitable Cloud business. 3 Learn how to develop Cloud-relevant services which fit your current business. 4

7. 7 Business Model Transformation For Value Added ResellersBusiness Model Transformation For Value Added Resellers Developing Cloud Solutions Understanding The Road Ahead Identifying The Change Imperative Morning Transforming Your Team Creating An Action Plan Aligning Sales & Delivery Refining Marketing Afternoon

8. 8 Agenda Introductions Identifying the Change Imperative Cloud Business Model Evolution Understanding The Road Ahead Cloud Market Implications Customer Value Proposition - Morning Break - Developing Cloud Solutions Core Decisions Successful VARs Make Deal Economics Service Offerings Profitability Forecasting - Lunch - Refining Marketing Understanding Levers Strategy and Execution Aligning Sales & Delivery Sales Cycle Implications Compensating Cloud Sellers - Afternoon Break - Creating An Action Plan Developing Your Practice Action Plan Transforming Your Team AfternoonMorning

9. 9 How We ChangeHow We Change Source: James Prochaska and Carlo Di Clemente Unaware Of The Value Of Change 1 Considering The Case For Change 2 Planning For The Change 3 Executing The Plan 4 Sustaining The Momentum 5

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11. 11 Understanding The New Reality Identifying The Change Imperative Transforming Your Team Creating An Action Plan Aligning Sales & Delivery Refining Marketing Developing Cloud Solutions Understanding The Road Ahead Identifying The Change Imperative

12. 12 Module ObjectivesModule Objectives Understand the growing Cloud opportunity. 1 Learn about the traditional VAR business models and associated revenue streams. 2 Identify how your revenue streams may evolve as you shift to the Cloud. 3 This module will help you to:

13. 13 The Market Is Rapidly Shifting To The CloudThe Market Is Rapidly Shifting To The Cloud While IT spending grows slowly in the next 12 months cloud spending doubles in just 4 years 2x Growth in 4 years Expected Change in IT Spending Over Next 12 Months SMB Cloud Spending ($B) Source: IDC, Microsoft Partner Worldwide Conference, Los Angeles, July 2011

14. 14 The Market Is Rapidly Shifting To The CloudThe Market Is Rapidly Shifting To The Cloud $1.7 trillion total IT spending in 2011 75%‘legacy drag’; maintenance of legacy systems and routine upgrades; Cloud enables IT innovation and business innovation Cloud enabled IT innovation estimated at $1.1 trillion by 2015 Business innovation can be a significant multiple of IT spending Cloud products and services that enable business innovation provide additive new revenue While Cloud spending is still emerging as a computing style spending on public cloud IT services in 2011 was $28B $28B IT Public Cloud spending WW-2011Cloud brings unique economic leverages Source: IDC, Cloud Computing’s role in Job Creation March 2012

15. 15 And Is Served By Four VAR Business ModelsAnd Is Served By Four VAR Business Models What They Do Focus on reselling hardware and software Design and build hardware and software infrastructure on a time and material basis Offer monthly managed service contracts as IT outsourcing Implement custom software-based solutions and add- ins Key Competencies Drive volume salesMaintain deep customer relationships Provide customer support Package services Leverage partnerships Develop customized solutions Leverage LOB and vertical expertiseResellers Infrastructure Value Adders MSP Value Adders Software Solutions Value Adders RVA

16. 16 Which Operate In Combination…Which Operate In Combination… Reseller + Infrastructure: Primarily sells hardware, but has a small install service that augments a partner channel. MSP + Reseller: Specializes in managed services, but resells hardware and software as value-add to their customers. Solution + MSP + Resell: Primarily builds and deploys custom solutions but has extended into managed services to support their solutions and sell software as a value-add. VA R Primarily Resellers, Some Services Primarily Service Providers, With Some Resale Examples

17. 17 Resellers Infrastructure Services Managed Services Providers Software Solutions What Businesses Are You In?What Businesses Are You In? __% Of Business Focus __% Of Business Focus __% Of Business Focus __% Of Business Focus ????

18. 18 Shift To Cloud Affects Traditional Revenue StreamsShift To Cloud Affects Traditional Revenue Streams Revenue Path Software resale switches to subscription model with increased volume and decreased revenue. Infrastructure services move to Cloud integration with an initial upturn and steady growth thereafter Managed services, moves away from server services and increases in total volume with a shift towards devices, security, deployment, and integration Solutions Value Adders maintains current rate with a focus on strategic applications and hybrid integration On-Premises CloudReseller Infrastructure Value Adder MSP Value Adder Software Solutions Value Adder RVA

19. 19 What Businesses Do You Want To Be In?What Businesses Do You Want To Be In? Resellers Infrastructure Services Managed Services Providers Software Solutions __% Of Business Focus __% Of Business Focus __% Of Business Focus __% Of Business Focus ????

20. 20 2 7 Cloud Business Model Essentials Where Are You In The Transformation?Where Are You In The Transformation? The executive team has assigned responsibility to a senior executive for the development and growth of your Cloud business You have reviewed your company’s value proposition and core competencies and mapped them to the positioning that will make you successful in the Cloud You have completed a Cloud business line financial model and business plan You have begun creating pre-packaged, templated offerings that are priced for consumption and can be rapidly deployed at lower costs than on-premise You’ve made an investment in getting your services resources trained to allow them to work effectively with Cloud architectures Your web site prominently reflects your Cloud solutions Every current sales prospect has been made aware of the available Cloud based solution options and their associated TCO benefits 1 2 3 4 5 6 7

21. 21 Module SummaryModule Summary On-premises revenue streams decrease at various rates Opportunity across all Cloud services, with MSP representing the strongest, most long-term growth Your Cloud Opportunity Is Dependent On Your Business Model Don’t fundamentally change your current revenue base Look at how you can make shifts across all of them to capitalize on key opportunities Consider where you are in the transition and plan for the work ahead Evaluate Your Shift To The Cloud Based On Your Business Model 2 3 Every business relies on each revenue stream to a different degree Usually there is an emphasis on either value added services or resale VAR Businesses Pull From Multiple Revenue Streams 1

22. 22 Action Plan Reflection PointAction Plan Reflection Point What is the magnitude of the Cloud opportunity for my business? How will the shift to the Cloud affect my revenue streams? What are my revenue stream priorities? What goals can I set for my business in the next year?

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24. 24 Understanding The Road Ahead Transforming Your Team Creating An Action Plan Aligning Sales & Delivery Refining Marketing Developing Cloud Solutions Understanding The Road Ahead Identifying The Change Imperative Define Your Strategy

25. 25 Module ObjectivesModule Objectives Assess where you are in the transition. 4 Review how new markets develop. 1 Identify the best market entry point for your business. 2 Recognize the factors that drive competitive differentiation in the marketplace. 3 This module will help you to:

26. 26 When Planning Your Cloud Transition, Consider:When Planning Your Cloud Transition, Consider: Your market maturity… 1 Your market entry strategy… 2 The speed at which you need to move… 3 Your Cloud customer value proposition 4

27. 27 Customers Early Majority Late Majority Laggards Early Adopter Your Market, Your Business And Your UrgencyYour Market, Your Business And Your Urgency Market Entry Point Depends On Where is my market? What are my natural strengths? How long does it take me to change? Market Maturity Depends On What customers are asking for? How much competition exists? How developed the Infrastructure is? 200920122014 First Movers Risk-Takers Make the Rules Establish the Market Successful and Profitable Early Innovator Learn from First- Movers Expand and Differentiate Operational Principals Introduce Business Model Fast Followers More Risk-Averse Successful At Scaling Copy and Differentiate Operational Effectiveness Late Entrants Gain Share In Mature Market Cost Is Driver Consolidate Capacity Set Up for Next S- Curve Key Questions 1.Where is your market? 2.How fast is it moving? 3.What are your strengths? 4.How fast do you move? ______________________________ What is your best strategy? 2 1 3 4

28. 28 Your Customer Value PropositionYour Customer Value Proposition Solution Applicability Line Of Business Vertical Expertise Delivery Capability Methodology Systems and Tools Technical Knowledge Operational Capacity Brand Strength Awareness Loyalty Target Markets Geography Segments Deal Economics Start-Up TCO ROI How do you differentiate your business? How does it need to change to match your cloud goals?

29. 29 Module SummaryModule Summary Differentiating Your Business Is Key To Your Success Your Entry Point Depends On Your Businesses' Strengths 2 3 Technology Markets Develop Quickly 1 A strong value proposition is essential in a developing and growing market Know what your customer value proposition is and ensure that it is aligned with your new Cloud business When you enter the Cloud market depends on your market maturity and customer demand Understand your capabilities and capacity to enter at the right time for your business Evaluate where you are and how long it takes you to change to determine viable entry points Adoption starts slowly and then sees a large jump as it goes mainstream Businesses that get in early have the highest survival rates and capitalize on early gains

30. 30 Action Plan Reflection PointAction Plan Reflection Point Do your customers know about your value proposition? Would they tell others about it? Would they pay extra for your products and services because it’s you? What aspects of your value proposition need the most development? What are the best pillars to build your value proposition on for the Cloud? What are your differentiators on these pillars?

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32. 32 Shift Your Offerings Developing Cloud Solutions Transforming Your Team Creating An Action Plan Aligning Sales & Delivery Refining Marketing Developing Cloud Solutions Understanding The Road Ahead Identifying The Change Imperative

33. 33 Module ObjectivesModule Objectives Identify key decisions partners can make to be successful in developing a Cloud business. 1 Demonstrate how partners can construct service packages and pricing to be profitable in the Cloud. 2 Learn how to create a set of solutions that meet your customer needs and match your business capabilities. 3 This module will help you to:

34. 34 Sources 1. AMI Partners 2011 2. Source: IDC (June 2010) Worldwide & Regional Public IT Cloud Services 2010-2014 Forecast 3. *** IPED: Can You See Through the Clouds? The Evolution of Technology Delivery, March 2010 Public CloudPrivate Cloud To Understand Your Market Opportunity…To Understand Your Market Opportunity… 12% Of Total IT Spending Explosive Growth Forecasted for Public Cloud Services (BY 2015)* 48% Web Conferencing 35% Messaging And Productivity 37% & 26% CRM And ERP 39% Content/ Document Management Key Workloads Shifting to Cloud (BY 2013)*** 46% Collaboration Strong Growth (BY 2014)** $136B Revenue 300% Growth $26B Revenue

35. 35 And The Results You Can Achieve…And The Results You Can Achieve… 5% - 15% Revenue from The Cloud 100% + Growth in 2011 28% New Customers 40-50% Margin on Cloud Services In The First Year Of Cloud Adoption, Partners Achieved…. By Making An Intentional Decision To… Security And ID Management Managed Service Offering E-Mail Migration Desktop Management SharePoint Team Solutions MS CRM Assign A Cloud P&L Owner Leverage On- Premise Capabilities Stay In Your Current Segment Develop Core Services

36. 36 Examine And Leverage Your Offering Portfolio In The CloudExamine And Leverage Your Offering Portfolio In The Cloud Resellers Infrastructure Services Managed Services ProvidersSoftware Solutions 40 Services Identified Across The VAR Business Models Bold text indicates highly relevant to Cloud 11.Business Desk Services 12.Business Intelligence 13.Database Development 14.Managed Applications 15.Mobile Applications 16.Software Development 17.Systems Integrations 18.Web Applications Build 1.Business Processes 2.Content Management 3.DR/Business Continuity 4.IT Assessment and Planning Services 5.IT Consulting 6.Network Assessment 7.Project Management 8.Security Assessment 9.User Experience /Graphic Design 10.Windows Server/ Active Directory Design 19.Cloud Computing 20.Desktop Deployment 21.Desktop Security 22.Hardware Resale 23.Migration 24.Network Integration 25.Network Security 26.Portal & Collaboration 27.Remote Access 28.Software Resale 29.Training 30.Virtualization 31.Voice Solutions Implement 32.Application /Datacenter Hosting 33.Hardware/Software Warranty Support 34.Helpdesk 35.IT Staffing 36.Managed Infrastructure 37.Network Monitoring 38.Onsite IT Support 39.Remote Storage & Back-up Services 40.Vendor Management Manage

37. 37 A 3 Year Cloud Revenue Outlook…A 3 Year Cloud Revenue Outlook… New Customer Partner of Record Fee New Customer Prof ServicesExisting Customer Prof Services Existing Customer Partner of Record Fee $284,800 88.5% 8 Deals x 50 Seats Each Year 1 $799,300 8 recurring customers 9 new deals x 50 seats each 3 new deals x 250 seats each Year 2Year 3 $1,499,400 16 recurring customers 14 new deals x 50 seats each 6 new deals x 250 seats each $252,000 $32,800 $559,500 $98,400 $130,040 $11,000 $993,000 $184,400 $283,200 $42,800 New Customers Existing Customers New Customers Existing Customers

38. 38 Business and Consulting Services Project ManagementManaged Services Migration and Deployment Partner of Record Fees $35,600 $17,700 Year 1Year 2 50 SEATS $112,500 $52,000 Year 1Year 2+ 250 SEATS Year 1Year 2+ 500 SEATS $101,700 $202,000 Can Be Forecast Through Deal Size And Fee Types…Can Be Forecast Through Deal Size And Fee Types…

39. 39 With Underlying Charges By Service…With Underlying Charges By Service… Business and Consulting Services Project ManagementManaged Services Migration and Deployment Partner of Record Fees Year 1Year 2 250 SEATS $112,500 $52,000 Managed Services  Help desk and T2 support  SharePoint admin  Security and health check  Backup and recovery  Security and monitoring solutions  Identify management solutions (e.g., AD Real-time synchronization) Business and Consulting Services  SharePoint development  Custom workflows  SharePoint branding  Search solutions  Corporate portals  Business process management  Training  SharePoint branding  Training  CRM customization  eDiscovery and compliance  Document management  Records management  Collaboration solutions  BI and dashboards

40. 40 And Task Level Billing RatesAnd Task Level Billing Rates Security And Health Check Part of planning process Recommended to ensure servers are secure and have appropriate patches Management of Active Directory Records Server patch management Troubleshooting Hours 20-100 hours Per Server 20-30 Hours Per Server Per Site Per Month Rate $100-$150 $400-$500 $150-$200 $400-$500 $200-$400 Task Active Directory Assessment Server Security Assessment Disaster Recovery/Fault Tolerance Assessment Server Configuration Assessment Network Monitoring

41. 41 By Bundling Services…By Bundling Services… Get Deployment Annuity Services Get Stickiness VAR Benefit Known price with no need to do a separate implementation cost analysis Consistent vendor interaction with confidence that infrastructure, needs and history is understood Customer Value Proposition Types Of Bundles DescriptionAdvantagesConsiderations Transactional Package is purchased once; Typically includes migration and deployment activities only Less CustomizedNo Stickiness Repeating Package is purchased once but includes activities which may be purchased again; includes migration, training or customization, security assessments and business consulting Some Repeat Revenue No Contractual Guarantee For Added Services Recurring Package includes deployment activities plus a set of services that will be delivered on an ongoing basis; Migration plus monitoring, help desk, archiving Recurring Revenue, Stickiness Complicated and Takes Development and Must Understand Cost Basis

42. 42 Bundle You Can Drive Value For Everyone…You Can Drive Value For Everyone… Annuity Services + Get Stickiness Get Deployment Not just POR VAR Benefit Consistent vendor interaction with confidence that business needs and history is understood Fixed price for an end to end solution with no need to do a separate implementation cost analysis Customer Value Proposition + Managed Services (Help desk, monitoring and disaster recovery) + Delivery/Migration or Training Bundle B A

43. 43 By Keeping Three Things In MindBy Keeping Three Things In Mind To Build A Successful Business, Focus Your Efforts On: Aligning With Existing Offerings Designing For Your Business Bundling For Value

44. 44 Use A Simple Framework…Use A Simple Framework… The buyers are the same It targets the same customer segment It addresses similar business problems Is connected to other services Is purchased at the same time or same manner Offerings Are Related If… 11.Business Desk Services 12.Business Intelligence 13.Database Development 14.Managed Applications 15.Mobile Applications 16.Software Development 17.Systems Integrations 18.Web Applications Build 1.Business Processes 2.Content Management 3.DR/Business Continuity 4.IT Assessment and Planning Services 5.IT Consulting 6.Network Assessment 7.Project Management 8.Security Assessment 9.User Experience /Graphic Design 10.Windows Server/ Active Directory Design 19.Cloud Computing 20.Desktop Deployment 21.Desktop Security 22.Hardware Resale 23.Migration 24.Network Integration 25.Network Security 26.Portal & Collaboration 27.Remote Access 28.Software Resale 29.Training 30.Virtualization 31.Voice Solutions Implement 32.Application /Datacenter Hosting 33.Hardware/Software Warranty Support 34.Helpdesk 35.IT Staffing 36.Managed Infrastructure 37.Network Monitoring 38.Onsite IT Support 39.Remote Storage & Back-up Services 40.Vendor Management Manage Not aligned Somewhat aligned Closely aligned 8, 25 23 29 33, 37, 38 26 34 11.Business Desk Services 12.Business Intelligence 13.Database Development 14.Managed Applications 15.Mobile Applications 16.Software Development 17.Systems Integrations 18.Web Applications 1.Business Processes 2.Content Management 3.DR/Business Continuity 4.IT Assessment and Planning Services 5.IT Consulting 6.Network Assessment 7.Project Management 8.Security Assessment 9.User Experience /Graphic Design 10.Windows Server/ Active Directory 19.Cloud Computing 20.Desktop Deployment 21.Desktop Security 22.Hardware Resale 23.Migration 24.Network Integration 25.Network Security 26.Portal & Collaboration 27.Remote Access 28.Software Resale 29.Training 30.Virtualization 31.Voice Solutions 32.Application /Datacenter Hosting 33.Hardware/Software Warranty Support 34.Helpdesk 35.IT Staffing 36.Managed Infrastructure 37.Network Monitoring 38.Onsite IT Support 39.Remote Storage & Back-up Services 40.Vendor Management

45. 45 In Relation To Your Services…In Relation To Your Services… The buyers are the same It targets the same customer segment It addresses similar business problems Is connected to other services Is purchased at the same time or same manner Offerings Are Related If… Not aligned Somewhat aligned Closely aligned 11.Business Desk Services 12.Business Intelligence 13.Database Development 14.Managed Applications 15.Mobile Applications 16.Software Development 17.Systems Integrations 18.Web Applications Build 1.Business Processes 2.Content Management 3.DR/Business Continuity 4.IT Assessment and Planning Services 5.IT Consulting 6.Network Assessment 7.Project Management 8.Security Assessment 9.User Experience /Graphic Design 10.Windows Server/ Active Directory Design 19.Cloud Computing 20.Desktop Deployment 21.Desktop Security 22.Hardware Resale 23.Migration 24.Network Integration 25.Network Security 26.Portal & Collaboration 27.Remote Access 28.Software Resale 29.Training 30.Virtualization 31.Voice Solutions Implement 32.Application /Datacenter Hosting 33.Hardware/Software Warranty Support 34.Helpdesk 35.IT Staffing 36.Managed Infrastructure 37.Network Monitoring 38.Onsite IT Support 39.Remote Storage & Back-up Services 40.Vendor Management Manage

46. 46 While Keeping Key Considerations In Mind…While Keeping Key Considerations In Mind… There are four major organizational considerations that need to be addressed at the beginning of your transition to Cloud Services Skills Building Considerations Assigned Resources To Online Initiatives Packaged vs. Custom Implementation Teams Education And Training Pre-sales advice and consulting is critical to maintain trusted advisor role Business process applicability of the technology is important. Integration & management of the hybrid customer environment Partner when appropriate Invest in leadership resources, a Single Point of Online Service Delivery Assign technical ownership of pre-packaged offerings Develop experts in each Online Service offering to improve quality, reliability and repeatability Optimize deployment of highly skilled complex implementation resources Consider junior level resources for packaged offerings to improve gross margins Train, Train, Train Customers are looking for expert advice and want knowledgeable resources This is not “new product training” but training on your new business direction. Invest in it.

47. 47 To Make Sound Business Decisions…To Make Sound Business Decisions… Example 1: Build a SharePoint Practice Customer want to build an LOB SharePoint site. Strength in business process design, but limited ability in custom application development; Delay or partner with others to fill in capability gaps Example 2: Provide In- Depth Training Customers need to educate their employees on how to use the new technology Deep experience with MS product training with a broad library of training classes Develop, leave behind training documents, and in-person events Customer Needs Ability Your Capabilities and Capacity A Design for Profitability and Customer Satisfaction Your Customers Business Decision

48. 48 To Create Your Bundle Offerings…To Create Your Bundle Offerings… Services Packages E2E3E4 ? Training Implementationxxx How toxxx Customizex How to use-optimize Security & ID management Managed Service Offerings Exchange Migrationxxx Get startedxxx Presencexx featuresxx side/side comparisonx online (lync)x in person password policiesx passwordsx ServicesPackages E2E3E4 ? Desktop Management SharePoint Team Solutions Installxxx Migrationxxx Customizationx Integrationxxx Templatesxx Trainingx MS CRM Business Consulting IT Auditing Cloud transition road map

49. 49 With The Help Of A Profitability ModelerWith The Help Of A Profitability Modeler

50. 50 Module SummaryModule Summary Leverage Your Current Services And Bundle 2 Plan Your P&L Through Careful Forecasting 3 Use the profitability modeler to reflect your unique service offerings Determine task level rates appropriate for your market Use realistic deal size and numbers to anticipate a three year revenue portfolio On-premises services are easily shifted to Cloud delivery Attach Cloud services to existing customer base and less related services to new Cloud customers Bundle with recurring revenue streams to increase the value of every customer Focus On Your Strengths When Building A Cloud Business 1 Stay in your current segment Leverage on-premises capabilities Develop core services Assign a Cloud P&L owner

51. 51 Action Plan Reflection PointAction Plan Reflection Point What are your offering priorities? Does the Cloud change how you currently price or bundle your offerings? What gaps exist between reaching those goals? What existing services can you leverage for Cloud customers? What are realistic assumptions around deal numbers, size and service rates for my business? How will you develop services to create an offering set: partnering, internal investment…? Which of your priorities shift based on your assessment capacity and capabilities? What sort of bundle strategy might be best for your business?

52. 52 Revisiting ChangeRevisiting Change Source: James Prochaska and Carlo Di Clemente Unaware Of The Value Of Change 1 Considering The Case For Change 2 Planning For The Change 3 Executing The Plan 4 Sustaining The Momentum 5

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56. 56 Generate More Leads Refining Marketing Transforming Your Team Creating An Action Plan Aligning Sales & Delivery Refining Marketing Developing Cloud Solutions Understanding The Road Ahead Identifying The Change Imperative

57. 57 Module ObjectivesModule Objectives Understand how a marketing engine works and the role it plays in the overall sales process. 1 Identify where leads come from and recognize which sources your business can best leverage. 2 Learn how to determine the appropriate mix of levers to maximize the effectiveness of your campaigns. 3 This module will help you to:

58. 58 Integrated Cloud Marketing and Sales EngineIntegrated Cloud Marketing and Sales Engine Sales Team Key Activity Inputs/ToolsPeople Methodology and Migration Tools Tech Team Deploying the Solution Leads Build Customer Relationships SEO, SEM, Events, Outbound, etc. Business Development Representatives (BDRs) Lead Generation Generate Lead Close Deal Deploy Solution Marketing Sales Delivery

59. 59 Best PracticeBest Practice Sales Team Key Activity Inputs/ToolsPeople Methodology and Migration Tools Tech Team Deploying the Solution Leads Build Customer Relationships SEO, SEM, Events, Other, Levers… BDRsLead Generation Lead Generation Engine Marketing ApproachActivePassive Audience Broad Targeted Opportunities Contact You Evaluation Process Qualified Leads You Contact Opportunities Not Qualified Delivery Generate Lead Close Deal Deploy Solution Marketing Sales Delivery

60. 60 Leads Come from Four PlacesLeads Come from Four Places Who Are You Marketing To? What Is Your Current State Of Lead Generation? Add-On/ Convert Vendor Referral Customer Referral Direct Existing CustomersNew Customers 2134 Lead Source

61. 61 Marketing Has Six LeversMarketing Has Six Levers _%? Outbound CallsEvents _%? Referral _%? Incentives _%? Network _%? Digital (SEO, SEM, Website) _%? How Are You Using Marketing Levers Today?

62. 62 Four Steps To Building An Effective Marketing EngineFour Steps To Building An Effective Marketing Engine Campaign 2 Lever Offering Customer Profile Campaign 1 Lever Offering Customer Profile Campaign 3 Lever Offering Customer Profile Evaluate Audience Know Your Marketing Mix Consider ROI 1 3 2 4

63. 63 Evaluate Your AudienceEvaluate Your Audience How It Works Map out your target customer profiles based on their needs and buying behaviors Determine your right mix of levers and value messaging Customer Profile SmallLarge Customer Size Low LoyaltyHigh Loyalty How They Buy Office ManagerCXO Who Buys Start-UpValue Value Prop TCO LocalGlobal Geography National HorizontalVertical Specialization Key Questions How does your customer profile influence the overall mix of levers you will use?

64. 64 Know Your Marketing MixKnow Your Marketing Mix Broad Targeted Active How It Works Determine how much passive versus active lead generation activities are appropriate Determine the desired amount of focus and reach you need Choose an array of levers and prioritize your efforts to cover the area needed Using Levers Passive Events SEO Referral Outbound Calls SEM Incent- ives Size of circle indicates amount of spend. Approach To Customer Specificity

65. 65 And Understand ROIAnd Understand ROI High Cost Low Cost High Return Evaluate your efforts and the ROI for each lever Prioritize your investments to reach your audience, maintain your mix and focus on best ROI Low Return How It Works Achieve The Best Results For Your Spend Events SEO Referral Outbound Calls SEM Incent- ives Return Per Impression Cost Per Impression Size of circle indicates amount of spend.

66. 66 Module SummaryModule Summary Effective Campaigns Rely On An Appropriate Mix Of Marketing Levers Recognizing Your Strongest Lead Sources Will Drive Your Marketing Strategy 2 3 Marketing Is All About Lead Generation 1 Identifying your customer profile will enable you to create an appropriate mix of marketing levers Understanding return and cost per touch will enable you to get the most from your marketing spend The size of your business and your Cloud strategy will influence where you draw leads from Your target lead source will determine how you reach them and the tone you use Understanding the reason for marketing will drive better business decision- making Developing a nurture marketing engine will maximize overall ROI

67. 67 Action Plan Reflection PointAction Plan Reflection Point What mix of marketing levers will attract the lead profile you want to shift your business to the Cloud? Are you currently committing the right resources in the right amounts to marketing? What are the roadblocks to implementing a new marketing plan? Who will own marketing strategies in your business? What will your top down target for marketing spend % of income be? How will you ensure you successfully develop your Cloud marketing plan in the next 30 days?

68. 68 Close More Business Aligning Sales & Delivery Transforming Your Team Creating An Action Plan Aligning Sales & Delivery Refining Marketing Developing Cloud Solutions Understanding The Road Ahead Identifying The Change Imperative

69. 69 Module ObjectivesModule Objectives Learn how incentives may need to adapt to drive more Cloud oriented selling behaviors. 4 Identify strategies to control costs and maximize profitability when delivering your services. 5 Recognize how the Cloud has changed the sales process for both customers and partners. 1 Learn how your business can take steps to accelerate the Cloud sales process. 2 Understand how to align your team to get the most out of your resources and sales efforts. 3 This module will help you to:

70. 70 To Maximize The Acceleration Of Cloud Sales…To Maximize The Acceleration Of Cloud Sales… Know your customers and how they’ve changed… 1 Use best practices to streamline the sales process… 2 Leverage available sales tools… 3 Implement insightful metrics… 4 And incent the right behaviors on your team. 5

71. 71 Understand Who Buys Cloud And How They Buy It…Understand Who Buys Cloud And How They Buy It… Customers Are Different Deals Are Different Processes Are Different They are buying it to solve business problems. They are buying it off cycle. They are both business and technical buyers. The customers needs grow as their company grows. Customers are engaging in more self-education. The market is increasingly looking to the Cloud. The deals tend to be smaller, but with expected services margins. More deals are required in a shorter period of time. Customers are engaging later in the sales process. Education happens during the marketing stage.

72. 72 Recognize How The Sales Cycle Has Changed…Recognize How The Sales Cycle Has Changed… Avg. Time: The Sales Process can take 11+ weeks using standard approaches ~ 11 Weeks Avg. Time: The Sales Process can take 8+ weeks using standard approaches Challenges Typical Performance Stage Treating Office 365 as investment similar to premise purchase Providing customer options instead of recommendation 2 Weeks Initial Convo/ Sales Hooks Waiting to have cloud discussions until customer is considering refresh / upgrade 2 Weeks Customer Education Starting customer on 30-day trial or providing repeat demos 4 Weeks Product Demo 1 Day Quote Prep. 2 Days Deal Closing No standard lead qualification process Variable Targeting & Lead Qualification Delivery Generate Lead Close Deal Deploy Solution Marketing Delivery Sales

73. 73 Leverage Existing Best Practices…Leverage Existing Best Practices… 6 Weeks 11 weeks Source: Monitor Group Study, 2011 Contract Scripted Demo & ROI Solution Definition Qualification Checklist Create a qualified leads checklist Scale customer education Demonstrate through execution Create a solution map to determine best fit for customers Start small scale fast Build “To Customer” templates and content Build a due diligence/pre-migration checklist Develop contract templates that include common SOW structures and roles and responsibilities Create a client sign off process

74. 74 Measure It With Insightful Metrics…Measure It With Insightful Metrics… Customer Performance Product Performance Financial Performance Operational Performance Customer Segmentation Growth Rates Customer Satisfaction Unit Sales Solution Sales Bundled Sales Revenue Revenue Growth Margin Margin Growth Investment Levels Cost Of Sales Cost Of Delivery

75. 75 And Align Your Sales Team Around ItAnd Align Your Sales Team Around It Customer Development Representative (CDR) Inside Sales Focused Role Cultivates Customer Base for Renewals, Additional Users and Apps Emphasis On Responsiveness Inbound and Outbound Responsibilities Technical Support Pre-Sales Support Prep “Canned” Online Demos Support Scripted Demo Prospects Manage Technical Requirements for Proof of Concepts (On Larger Deals) Business Development Representative (BDR) Outbound Lead Generation Follow-Up On In-Bound Leads Understanding of Business Problems and Solutions Manage Accelerated Sales Process and Closes Deals Think about these roles in your organization… They may be hybrid between one or more of these…

76. 76 To Incent The Right Behaviors…To Incent The Right Behaviors… Incent your sales team to sell both Cloud and On-Premise Solutions— Get them to be ambassadors of bundled solutions! Prepare to incent Cloud sales from the start and keep in mind the need to hire new talent or retrain current members of your sales team Get The Right People Ensure that your compensation and incentive program is competitive for your market and the required skill set Pay For Value Plan to pay the value equivalent to one month of the contract (based on a 24 month contract) Drive Continued Sales Motivate your sales team to continue to get new business by paying in the first year not as an annuity (can split the pay as first year and renewal)

77. 77 Use A Sales Compensation Calculator…Use A Sales Compensation Calculator… The calculator allows users to model estimated sales force compensation based on key factors: Annual View 5 Base Salary 1 Commissions For Cloud And Non-Cloud Quota 3 Model Solutions, Not Just Cloud 2 4

78. 78 Which Operates On Multiple VariablesWhich Operates On Multiple Variables

79. 79 Three Key Factors Drive Successful Delivery…Three Key Factors Drive Successful Delivery… Cost Of Delivery Strategic Partnering Appropriate Skills Close Deal Deploy Solution Marketing Sales Delivery Generate Lead

80. 80 Module SummaryModule Summary Maximize Efficient Delivery To Drive Profitability Align Your Team And Incentives 2 3 Accelerate Your Sales Process 1 Draw on best practices throughout the sales and delivery cycle to minimize COGS Utilize efficient processes throughout your business to maximize profitability Identify how your organization needs to adjust to support your compressed sales cycle to bolster sales of the Cloud Modify your compensation plan to fit the Cloud business model and encourage your team to evangelize Cloud products Recognize that the customer base has changed to help you target your audience better Leverage best practices to enable you to manage the process more rigorously and close deals more quickly

81. 81 Action Plan Reflection PointAction Plan Reflection Point How does your current sales process facilitate or challenge Cloud sales? Are the right people in your company connected to the right resources and responsibilities to drive Cloud business? Does current sales incentive plan encourage or discourage Cloud sales? Where in the sales process do you have opportunities to streamline? What organizational alignment changes need to take effect? What changes could you make to incentives to drive behavior? Are your current delivery strategies optimized for rapid delivery and deployment of the Cloud? What opportunities exist to reduce your current costs of delivery?

82. 82 Prioritize Your Changes Creating An Action Plan Transforming Your Team Creating An Action Plan Aligning Sales & Delivery Refining Marketing Developing Cloud Solutions Understanding The Road Ahead Identifying The Change Imperative

83. 83 Revisiting ChangeRevisiting Change Source: James Prochaska and Carlo Di Clemente Unaware Of The Value Of Change 1 Considering The Case For Change 2 Planning For The Change 3 Executing The Plan 4 Sustaining The Momentum 5

84. 84 Cloud Action PlanCloud Action Plan Consolidate the Action Plan findings you’ve collected throughout the day Include detailed steps for each objective Look at least four quarters forward, focus deeply on the next 90 days Share your Action Plan with your PAM to maximize them as a support resource 1 2 3 4

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86. 86 Execute The Plan Transforming Your Team Creating An Action Plan Aligning Sales & Delivery Refining Marketing Developing Cloud Solutions Understanding The Road Ahead Identifying The Change Imperative

87. 87 Executing The PlanExecuting The Plan Keep The End Goal In Mind 3 Identify Owners And Actors 1 Set measurable milestones along the way Execute according to plan Ensure resources are available to achieve sustainability Focus on the long-term— change takes time Recognize They Need To Change Too 2 Depending on your organization, you will change in different ways at different times: Top team Middle Front line Determine Who Will Own: Planning Accountability Feasibility Governance

88. 88 How We ChangeHow We Change Source: James Prochaska and Carlo Di Clemente Unaware Of The Value Of Change 1 Considering The Case For Change 2 Planning For The Change 3 Executing The Plan 4 Sustaining The Momentum 5

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90. Thank You! Martin Gregory marting@MG365.com.au

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92. 92 Additional Details On Key Material Appendix

93. 93 Additional Managed Services OfferingsAdditional Managed Services Offerings Consulting Branding, Development and Collaboration Solutions SharePoint Branding 20-40$100-$175 SharePoint Dashboards,e.g. Track and manage computer assets5-10$100-$150 Collaboration Solution, e.g. Employee Expenses Reports 10-20$100-$150 Plan Site Migration to Online Services (Data Base Attach) 6-8$100-$150 TaskHoursRate SharePoint Services Other Services CRM & Email integration CRM Customization TaskHoursRate CRM & Email Integration5-10$100-$150 CRM Customization 5-10$100-$150 Compliance Management Solutions for SharePoint -- Post Migration Configuration Checkout4-8$100-$150 Update site permissions and groups e.g. Special Permission4-8$100-$150 End-User Training8-12$100-$150

94. 94 Additional Managed Services OfferingsAdditional Managed Services Offerings Design Configuration of Services, Support Managing Site Collection Configuring User and Group Permissions Restoring Deleted Content SharePoint Central Administration40-80$50-$100 Site Collection Administration (creating, configuration, etc.)80-120$50-$100 Site Content Managing – restoring site content. 50-100 $50-$100 Task HoursRate SharePoint Administration

95. 95 Business And Consulting ServicesBusiness And Consulting Services Consulting Branding, Development and Collaboration Solutions SharePoint Branding 20-40$100-$175 SharePoint Dashboards,e.g. Track and manage computer assets5-10$100-$150 Collaboration Solution, e.g. Employee Expenses Reports 10-20$100-$150 Plan Site Migration to Online Services (Data Base Attach) 6-8$100-$150 TaskHoursRate SharePoint Services Other Services CRM & Email integration CRM Customization TaskHoursRate CRM & Email Integration5-10$100-$150 CRM Customization 5-10$100-$150 Compliance Management Solutions for SharePoint -- Post Migration Configuration Checkout4-8$100-$150 Update site permissions and groups e.g. Special Permission4-8$100-$150 End-User Training8-12$100-$150

96. 96 Four Key Factors For Successful Customer RetentionFour Key Factors For Successful Customer Retention Use Customer Checkpoints As An Opportunity To Upsell Develop Repeatable Services Manage Customer Expectations Develop Clear “Conditions Of Satisfaction” Retention Close Deal Deploy Solution Marketing Sales Delivery Generate Lead

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98. 98 Documenting Your Transformation Action Plan

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100. 100 Revisiting ChangeRevisiting Change Source: James Prochaska and Carlo Di Clemente Unaware Of The Value Of Change 1 Considering The Case For Change 2 Planning For The Change 3 Executing The Plan 4 Sustaining The Momentum 5

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102. 102 Key Questions To ConsiderKey Questions To Consider 1.Where are going to be the resistant points? Where is it going to be easy?_____________________________________________________________________________________________________________________________________________________________________ 2.Where do you see challenges in executing your plan, why? _____________________________________________________________________________________________________________________________________________________________________ _____________________________________________________________________________________________________________________________________________________________________ 3.How do you plan to introduce this plan to your organization? _____________________________________________________________________________________________________________________________________________________________________ _____________________________________________________________________________________________________________________________________________________________________ 4.Where do you think they will challenge the plan? _____________________________________________________________________________________________________________________________________________________________________ _____________________________________________________________________________________________________________________________________________________________________ 5.How might they challenge the plan? _____________________________________________________________________________________________________________________________________________________________________ _____________________________________________________________________________________________________________________________________________________________________ 6.How will you make this real within your organization? _____________________________________________________________________________________________________________________________________________________________________ _____________________________________________________________________________________________________________________________________________________________________ _____________________________________________________________________________________________________________________________________________________________________ 7.What type of support do you feel you may need? _____________________________________________________________________________________________________________________________________________________________________ _____________________________________________________________________________________________________________________________________________________________________ _____________________________________________________________________________________________________________________________________________________________________ 8.How are you going to take this back home? _____________________________________________________________________________________________________________________________________________________________________ _____________________________________________________________________________________________________________________________________________________________________ _____________________________________________________________________________________________________________________________________________________________________

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104. 104 Key Questions To ConsiderKey Questions To Consider 1.Assume that when we talk with you in about 30 days the actions and results you intended to have happen, didn’t happen. What are some really good reasons why this happened? _____________________________________________________________________________________________________________________________________________________________________ _____________________________________________________________________________________________________________________________________________________________________ _____________________________________________________________________________________________________________________________________________________________________ _____________________________________________________________________________________________________________________________________________________________________ _____________________________________________________________________________________________________________________________________________________________________ _____________________________________________________________________________________________________________________________________________________________________ _____________________________________________________________________________________________________________________________________________________________________ _____________________________________________________________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________________________________________________________ _____________________________________________________________________________________________________________________________________________________________________ 2.What can you do now to prevent these reasons from stopping implementation of your Action Plan? What are the 3-5 key actions you need to take to bring this plan back to your company and have it implemented? _____________________________________________________________________________________________________________________________________________________________________ _____________________________________________________________________________________________________________________________________________________________________ _____________________________________________________________________________________________________________________________________________________________________ _____________________________________________________________________________________________________________________________________________________________________ _____________________________________________________________________________________________________________________________________________________________________ _____________________________________________________________________________________________________________________________________________________________________ _____________________________________________________________________________________________________________________________________________________________________ _____________________________________________________________________________________________________________________________________________________________________ _____________________________________________________________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________________________________________________________ _____________________________________________________________________________________________________________________________________________________________________

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106. 106 Top 3 Cloud Objectives By Business GroupTop 3 Cloud Objectives By Business Group Management 1.________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ 2.________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ 3.________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ Marketing 1.________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ 2.________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ 3.________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ Sales 1.________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ 2.________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ 3.________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ Professional Services 1.________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ 2.________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ 3.________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________

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108. 108 Half 1: January – June Business Group Activity Person Responsible Priority Complete Date Management Marketing Sales Professional Services

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110. 110 Half 2: July – December Business Group Activity Person Responsible Priority Complete Date Management Marketing Sales Professional Services

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112. 112 Goals For Cloud Customers CurrentQ1Q2Q3Q4Comments Total Customers Average Cloud Seats Per Customer Active Customers Converted to Cloud Inactive Customers Converted to Cloud New Cloud Customers Added Target Customers

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114. 114 Additional Insights/Considerations 1._____________________________________________________________________________________________________________________________________________________________________ _____________________________________________________________________________________________________________________________________________________________________ _____________________________________________________________________________________________________________________________________________________________________ _____________________________________________________________________________________________________________________________________________________________________ _____________________________________________________________________________________________________________________________________________________________________ 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