2. Hitting the Highs with ERP Claire Kennedy/ ERP Product Manager Martin McCaffery/ Partner Account Manager

3. Agenda Why is this important? The Go to Markets The Market Opportunity Changing the game: New Models Partners Changing the game: Case Studies How Microsoft is thinking Next Steps

4. Why is the Mid Market important Strengthen Microsoft Dynamics position as leader in mid-market Increase market share of and increase ERP Adds Reinvigorate GP and NAV as growth products Expand reach through new channels to market Microsoft Build new customer based & consistent revenue streams Build services capability for volume business Drive new delivery mechanisms, eg hosting Establish additional lead generation systems Partners Scalability of solution Packaged solutions that meet their needs Better functionality and flexibility Simplified, more flexible purchasing options Reduce purchase and implementation risk Customers

5. Global Subsidiaries Connect local entities to headquarters Global Organizations Centralized ERP for multisite organization Vertical Business Target specialized business needs Improved Financials and Operations Beyond basic financials and operations The Dynamics ERP Go To Market

6. Typical Customer Profile CustomersCompetitors Financials and Operations

7. Typical Customer Profile Customers Tech 1 Pronto Competitors Local Vertical

8. Market Opportunity Target Market for Improved Finance and Operations and Vertical Business Typically outgrowing entry-level accounting software but may be right-sizing or moving from outdated proprietary software Typical profile - Companies with 25 – 500 employees Market Overview Highly fragmented market, dominated by MYOB at the low end but no clear leader at the higher end - no clear migration path for businesses, opening the door to the opportunity of building market share Customers highly price sensitive, looking for predictability, packaged implementations, low risk The ERP market in SMB is expected to grow to $192.7M in FY10 and $200M in FY11, with CAGR of 4.1% over the next 3 years

9. Thinking outside the box Product & Service Offering Pricepoint – what is required for your target market Up front fees Subscription Finance Fixed price/fixed scope services – rapid implementation New Business Models Cloud Accelerate hosted offerings Customer Relationships – talk to them or someone else will Build Channel Accountant/ Industry association incentives Lower cost of sale, drive down sales cycle White Labelling Referral program Marketing Online trials Click-Try-Buy Web/online demos vs in person demos – low touch interaction Click to Chat (ISS online) Targeted Campaigns

10. Partners Changing the Game Vertical Business Improved Financials and Operations – My GP Cloud Improved Financials and Operations

14. What partners can think about Focus on volume High growth aspiration Sales and Marketing driven (dedicated resources for each) Short implementation time through repeatability and implementation methodology (RIM) Offer fixed scope implementation packages Low software:service ratio (ex. less than 1:1) Business plan showing customers add expectation –Example: Year 1: 25, Year 2: 50, Year 3: 100 Create a repeatable, low cost marketing/sales process to execute targeted campaigns featuring fixed scope implementations Hosting – Understand the SPLA model Setup landing page for their offering, pricing, evidence Have integrated Click-Try-Buy offering Leverage MS Financing or establish their own financing options Leverage local Microsoft campaign efforts as applicable

15. Total IT Solution Financing Sell software, services, and hardware as one investment. Flexible payment structures for customers to get all the IT solutions they need. Financing Scenario Simple, flexible, and affordable Smarter way to sell IT solutions VAR Microsoft Software and Services 3 rd Party Software Partner Services Installation Hardware

16. How Microsoft is thinking Reduce implementation cost and risk (RIM & online RIM) Create suites with everything for customer – pricing to suit Scale breadth awareness and marketing using positioning and messaging Provide on-line/teledemo and sales capabilities Establish local specialists Create factories leveraging hosting partners Establish PAM role working with PDC on midmarket More online trials, test-drives