1. Microsoft Hosting Service Providers Conversation #3
4/17/2017
Microsoft Hosting Service Providers Conversation #3
Productivity Applications Drive Growth and Margins 1
© 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, 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.

2. Stepping out of a crowded marketplace
Hosted Messaging + Lync
Hosted Messaging
Drastically reduce competition by attaching Lync to Hosted Exchange offer
It's a crowded market
The and general web hosting marketplace is crowded with stiff competition. Whether it's from large global providers (i.e. Google, Amazon, Microsoft) or other national, regional, and local providers, the pressure to compete on price, value, and service is significantly increasing.
10,000+ providers
250 providers 2

3. 12% Exchange Growth 25% Exchange Growth
4/17/2017
Surround Exchange and Drive App Growth
Partners with other applications are seeing stronger Exchange growth
Partners with greater App business diversity are seeing stronger Exchange growth
Exchange only
12% Exchange Growth
Exchange +
Any Other App
25% Exchange Growth
Exchange Share of Apps
>80%
60-80%
40-60%
Exchange Growth
+14%
+25%
+47%
Apps Growth
+9%
+12%
+32%
Who is thriving in this highly competitive landscape?
From our own analysis of all Apps SPLA partners, we find some interesting data that points to some areas of opportunity.
Partners selling only Exchange are growing on average 12%, which is half that of partners that are selling Exchange plus any one other app (i.e. Lync, SharePoint, Office, etc.)
Action: Consult with your partner on what is the right application to introduce to their customers in addition to Exchange
Partners that are less reliant on Exchange for their business see healthier Exchange growth
Action: Consult with your partner on how to accelerate marketing and drive overall apps growth
Introduce Offers
Accelerate GTM 3
© 2014 Microsoft Corporation. All rights reserved. Microsoft, Windows, 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.

4. Disparate Tools as SMBs evolve
4/17/2017
Disparate Tools as SMBs evolve
Current Situation – SMBs have stitched together a variety of non-integrated applications and devices
If you were to live the life of an average SMB customer for a day, you would find their technology use is comprised of a solution that is duct tape, glue, and rope. It relies on bringing together several consumer products for use in a business scenario with no connection between the respective tools. You have to go to one application to IM a co-worker, another for setting up meetings, and another to share documents. All of this creates a loss of productivity and drives the user to frustration. If you were to observe these users in action, you would find that their actually trying to solve for the gaps in some clunky fashion without knowing there’s a solution for them. 4
© 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, 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.

5. Customers want Communication and Collaboration solutions
Applications preferred to be purchased as bundled package
Microsoft Productivity helps organizations navigate the new business paradigms of cloud, ubiquitous mobile access, overwhelming abundance of data, tightened economic conditions, and an ever-increasing connected workplace allowing them to get ahead of the curve, create a connected and productive organization, look professional and make strategic business decisions based on scalability and data insights.
Key Customer Benefits
Meet demands in market
Integrated, Bundled (one-stop-shop)
Local
Support/SLAs
Customers prefer to buy solutions from a single provider versus piecing it together from various vendors.
62% of cloud users would chose to get their internet voice services from their provider (assuming availability and competitive price) Source: Edge Strategies, 2013
Source: 451Research, 2013 5

6. Hosted Applications Productivity Suite SKU
4/17/2017
Hosted Applications Productivity Suite SKU
License cost per seat / month
52% discount vs Stand Alone SKUs:
Exchange Standard
SharePoint Standard
Lync Enterprise
“Purchase Exchange and Lync, offer SharePoint at no cost”
Productivity Suite SKU cost is 30% less than Exchange Standard Lync Enterprise
SharePoint Standard
-52%
-30%
Lync Enterprise
Productivity Suite
Exchange Standard
Prices effective June 1, 2014
SPLA Productivity Suite T9A-00002 6
© 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, 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.

7. Expand the portfolio toward UCaaS
By adding greater functionality for your customers, you will better differentiate your offer
+ Communications Enabled Business Processes (3rd party ISV)
+ Collaboration (SharePoint)
+ Voice (Lync Enterprise Plus)
Based on the trends and the marketplace, and the customer demand, there is an immediate opportunity for both Microsoft and its Hosting Services Providers to accelerate growth and drive Partner-Hosted SaaS in the consumer cloud space. Help your partner differentiate themselves in a competitive market by encouraging Partners to sell the productivity stack as a Unified Communications Productivity Suite. We need to grow the Hosted SaaS business by enabling partners to offer more value by adding additional competencies, products, and services in order to differentiate and scale in the commercial cloud space.
Adding Lync or SharePoint increases ARPU: Hosters who offer Lync have an ARPU of $35 compared to average of $5 ARPU for -only packages
+ Web conferencing (Lync Enterprise)
ARPU
+ Instant Messaging (Lync Standard)
(Exchange) 7

8. Leverage the Vendor Ecosystem
MGX FY14 SMS&P
4/17/2017 1:54 PM
Leverage the Vendor Ecosystem
Integration
White
Label
Control Panel
Value Added Component
Network
Some of our most successful partners operate on a highly automated and well integrated billing, provisioning, and support platform. However, some have all of the tools and products to offer the unified communications and collaboration services, but don’t have the ability to do this in an automated way. This is a list of partners that you could engage to support for deployment, control panel, additional services, and networking. If you want to focus on your core services and would like to resell by adding the other services, there are white label partners that could support your GTM strategy as well. 8
© 2013 Microsoft Corporation. All rights reserved. Microsoft, Windows, 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.

9. GTM Motions to Expand ARPU
4/17/2017
GTM Motions to Expand ARPU
Create hero offer
with Exchange, Lync, and SharePoint 1
Cross-sell
missing products to existing Exchange users 2
Upsell
to higher-end SKUs (Lync Conferencing, Voice, and Exchange Ent.) 3 9
© 2014 Microsoft Corporation. All rights reserved. Microsoft, Windows, 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.

10. Resources To-Partner datasheet Productivity Suite GTM templates
Telesales scripts 10

11. Microsoft Hosting Service Providers Call to Action!
4/17/2017
Microsoft Hosting Service Providers Call to Action!
Do it now! 11
© 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, 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.

12. 4/17/2017
Take action today!
Download the Productivity Suite Materials: Go to our website: 12
© 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, 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.

13. Useful rhipe ANZ Sales Contacts
Team/Region
Contact Name
Phone Number
Australia
Julie Cooper D M
Australia / North
Matt Dewsnap D M
Leticia Zannier D M
Australia / South
Leanne Barry M
Sandhya Vaishnav D M
New Zealand
Keryn Algie M
Amy Knox M

14. Useful rhipe SEA Sales Contacts
Team/Region
Contact Name
Singapore
Smita Roy – Country Manager
Ivan Lim – Business Development Manager
Thailand
Kasem Pornananrat – Country Manager
Gade Kochamas Kanchanaromon – Business Development Manager
Indonesia
Iskandar Myrza – Country Manager
Budi Sutandar – Business Development Manager
Malaysia
Kok-Leong Ong – Country Manager
Gooi-Lee Tan – Business Development Manager
Philippines
Emmanuel Romualdez – Country Manager
Lana Pineda – Business Development Manager
SEA
Patara Yongvanich – Managing Director SEA
Marilyn Ng – Senior Licensing Specialist SEA
Mun Yee Lau – Partner Services coordinator SEA

15. 4/17/2017 1:54 PM
© 2014 Microsoft Corporation. All rights reserved. Microsoft, Windows, 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.
© 2010 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.