1. 1 Microsoft Dynamics ERP in SMB / ERP moving to the cloud Will McIntee and Emily Stone

2. 2 Agenda An Introduction to Dynamics NAV Our SMB Strategy The Market Customer Expectations Partner Transformation Future Technology Resources

3. 3 Largest Microsoft ERP Partner Network 80.000 Customers World Wide #1 in the Microsoft Dynamics product family Microsoft Dynamics NAVMicrosoft Dynamics NAV

4. 4 Grow Share in SMB Positioning – some confusion Deployment - on premise MBS focus - license revenues License revenues - charged upfront Software Services ratios – maximized by customization Positioning – clear Deployment – Microsoft hosted and on premise MBS focus – recurring revenues License revenues – subscription based Software/Services ratios – minimized by rapid deployment OUR SMB STRATEGYOUR SMB STRATEGY

5. 5 Future Today Identify Contract Deploy Evaluate Value Add OUR SMB STRATEGY

6. 6 Costing… Annual ERP costs equal to about 1% of annual revenue Cost Categories Project Staff 40% Consulting % Services25% Internal Costs10% Training15% Software 5% Hardware 5% Source: Info-Tech Research Group, Select a Mid-Market ERP Solution, 2011

7. 7 The Market

8. 8 The competition is awakingThe competition is awaking The number ERP Cloud offerings is growing; 1.Netsuite 2.Financialforce.com 3.SAP Business-by-design 4.Epicor Express 5.Sage One & Sage 50 6.Exact Online 7.Infor Sytline 8.Plex Systems 9.Everest Software 10.Activant 11.QAD On-demand 12.….

9. 9 ERP SaaS companies have the futureERP SaaS companies have the future The stock-exchange never lies! (Firm Value/FY+1Revenues) Unit4 1,6 Epicor 1,7 Lawson 1,8 Exact 2,0 Sage2,6 SAP3,5 Netsuite10,4 Salesforce12,6

10. 10 By the wayBy the way FV/Revenue from leading consulting firms: Atos Origin 0,45 CSC0,46 Cap Gemini0,67

11. 11 SMB Marketing #1—SMB Relevancy “New Online Experience” #3—Field and Partner Enablement #2—Articulate the SMB Value Proposition

12. Customer ExpectationsCustomer Expectations

13. 13 Customer ExpectationsCustomer Expectations Get Out of the Infrastructure Business Pay As You Go Pay As You Grow / Peak (Or Shrink) Improve Time to Value More Rapid Innovation; Less Upgrade Pain IT Best Practices for Everyone Cloud Innovation Drives Better Products

14. 14 Influencers of Customer BehaviorInfluencers of Customer Behavior Desired Benefits Why I’m subscribing to the cloud? Customer Segment How much CapEx am I willing to pay? Individual Markets How fast will adoption take place? Faster time to value CapEx to OpEx Reduce IT Expense Data Sovereignty Regulatory Compliance New Markets Infrastructure App workload Billable Services

15. DNA of a Successful Partner The TransformationThe Transformation

16. 16 EXPERIENCES FROM THE FIELDEXPERIENCES FROM THE FIELD The Cloud is NOT a financing model; Don’t include your consulting hours in the monthly fee; Cloud is not about cannibalizing your existing business but winning new business; The lead time to get your first Cloud business in is 6 – 9 months; Be aggressive; Pro-actively offer Cloud solutions; Defining your Cloud proposition; In the sales process “make it easy for a customer to say yes!”;

17. 17 Traits of a Successful PartnerTraits of a Successful Partner Marketing Process Selling Strategy Offer Composition Solution Delivery High efficiency, selling factory Completely structured and repeatable Small & Midsize Seed and expand Basic packaging w/ custom components Fixed scope in phases Fully packaged, vertical alignment Prospect education via online activities Enterprise Strong branding and nurture engine Business Model Phase 1Phase 2Phase 3 Trusted Advisor Factory Approach

18. 18 Journey of TransformationJourney of Transformation Assess your readiness Invest in an optimized cloud business model Lead through innovation Differentiate with packaged IP www.microsoft.com/dynamicscloudpartner

19. 19 Leading the TransitionLeading the Transition Time to Benefit How long will it take me to get to profitability? The Payoff What’s in it for me? Execution What do I need to do to succeed? Seven key levers Crossover point Perpetual Revenue More Stable Higher Margin For More information see Cloud Partner Profitability Guide

20. 20 Rapid Implementation

21. 21 The Value of Rapid ImplementationsThe Value of Rapid Implementations Calculate the costs of implementations more accurately Sell your solution again and again Save time, resources and money Repeatability, Repeatability, Repeatability Doing Microsoft Dynamics rapid implementations, you can:

22. 22 RapidImplementations How To Achieve Rapid ImplementationsHow To Achieve Rapid Implementations Benefit from proven rapid implementation methodology and resources from Microsoft:

23. 23 Resources For Accelerating ImplementationResources For Accelerating Implementation Microsoft Dynamics Sure Step Methodology Jump Start Microsoft Dynamics Sure Step for Microsoft Dynamics NAV Rapid Implementation Methodology Toolkit for Microsoft Dynamics NAV, (RIM) IMPLEMENTATION METHODOLOGY AND TOOLS Best Practices Analyzer for Microsoft Dynamics NAV

24. In the Short TermIn the Short Term

25. 25 Start now!Start now! Define your Volume Proposition Focus on repeatability A succesful volume focussed business today has the essential building blocks for transitionig to the Cloud Managing the cost of sale is key – review your capability and ensure it fits with the model Pre-sales: record demos and publish to the web. Pre-sales: a finite resource, manage effectively through technology.

26. 26 Call to Action!Call to Action! Get your (localised) vertical(s) in the Cloud If you need assistance in choosing a vertical speak to your PAM, TPAM or PTA (willmc@microsoft.com)willmc@microsoft.com Get your proposition togehter Get your first reference customers on-board

27. 27 Idea: Get started with Office 365Idea: Get started with Office 365 Office 365 is now integrated with NAV 2009 Make it part of your standard offering Speak to existing customers about the opportunity to integrate their NAV solution with Office 365…

31. 31 Link to the Cloud Partner Profitability Guide: https://partner.microsoft.com/global/productssolutions/dynamics/40162698 https://partner.microsoft.com/global/productssolutions/dynamics/40162698 Video on P&L Levers Slide: http://www.youtube.com/watch?v=UWmHCNKgapg New update of Statement of Direction after the Summer… Road to Repeatability: https://mbs.microsoft.com/Cms/Templates/site/UtilityPlus.aspx?NRMODE=Published&NRNODEGUID={2DB8F204- 6349-4352-B6EF- 1C4025027AAB}&NRORIGINALURL=/partnersource/worldwide/northamerica/partneressentials/R2R&NRCACHEHI NT=Guest&wa=wsignin1.0 ERP Volume Toolkit: https://mbs.microsoft.com/partnersource/marketing/marketingcollateral/messagingframeworks/SMBToolkit.htm https://mbs.microsoft.com/partnersource/marketing/marketingcollateral/messagingframeworks/SMBToolkit.htm The Resources…The Resources…

32. 32 © 2010 Microsoft Corporation. All rights reserved. Microsoft, Microsoft Dynamics, the Microsoft Dynamics logo, and [list other trademarks] are trademarks of the Microsoft group of companies. 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.