1. SaaS: The Business Opportunity Karl Roe Partner Hosted Services – Middle East & Africa Microsoft International karlr@microsoft.com

2. SaaS Opportunity SaaS Enablement Programs Connecting The Ecosystems Q&A

4. Software Delivery Models Traditional Software Software as a Service On PremiseIn the Cloud CentralizedDecentralized Large Upfront CostPay As You Go Software-as-a-Service Business Model Application Hosting Net-Native Software-as-Services Perpetual LicenseSubscription One-to-FewOne-to-Many Private InfrastructurePublic Infrastructure Source: Software On Demand’s Impact on the Software Industry: Transformation, Extinction or Rebirth?; July 2005 Source: U.S. Software On-Demand Delivery Model 2005–2009 Forecast; IDC #33493 June 2005

5. 1 st generation “SaaS”: All about the browser 2 nd generation “Software+Services”: Weave together hardware, software and services to build a specific solution…

6. Source: Worldwide Software on Demand 2007.2011 Forecast: A Preliminary Look at Delivery Model Performance, IDC #206240 March 2007 IDC believes establishing partnering relationships and focusing on ecosystem development will be key to maintaining software-on-demand adoption and growth.

7. Note*: Sample size: 42, Respondents’ profile: Software decision makers at companies of all sizes that are currently piloting or using SaaS, Geography: Europe Source 1 : Forrester The State Of Enterprise Software Adoption In Europe Jan 2006 Companies (incl. SMB’s) using or piloting SaaS software applications, HR, messaging, security and supply chain management all top customer relationship management (CRM) in adoption. Last year, respondents were much more likely to adopt SaaS for ERP (31%) and CRM (27%): CRM has in fact grown by 11% while ERP remained static.

8. Preferred suppliers Software on Demand (Worldwide) According to a survey 1 conducted by IDC, ISVs are the preferred suppliers for on demand software solutions with nearly 40% of organizations preferring them System integrators are the second most preferred suppliers with 19% of organizations approaching them for SaaS solutions Lack of formalized channels in the broad software on demand landscape is a major reason for ISV popularity

9. ISVs Technology & connectivity makes it possible Recurring revenue stream Single version for all customers Strong customer feedback loop Easier to trial Reach broader target market End Users Pricing matches economic benefits Reduced initial outlay; complexity and risk Reducing IT Operations cost Shift Capex to Opex Easier to trial Focus on core business

10. Many ISVs face challenges with expanding into hosted offerings because they lack the necessary expertise Many ISVs face challenges with expanding into hosted offerings because they lack the necessary expertise Microsoft can help ISVs grow their businesses by providing programs and tools to support the delivery of hosted software Connecting ISVs with key distribution channels such as hosting providers and telecoms operators creates new business opportunities

12. SaaS Incubation Center Program Selected partners to cover strategic markets Depth engagement from Microsoft Focused on ISV business Transition from traditional models Connecting with ecosystem S+S Developer Marketplace Any certified hoster with Windows- based infrastructure Breadth engagement from Microsoft Focused on developing the Hosters business Get Hosters up the value chain Connecting with SharePoint ISV ecosystem Tier 2 Certified Hosters with Windows-based infrastructure Tier 1 Service Provider Licensing Agreement (SPLA)

13. Catalogue Structured Engagement focused on accelerating ISVs into the SaaS model using Microsoft technology The program provides the SaaS ISV with: Business consultancy (BDS) Infrastructure and architectural consultancy (ADS) Access to Microsoft selected SI partners Hosting expertise from Microsoft Gold Certified hosting partners Access to new channels to market Additional technical & business guidance available outside of standard program  Proof Of Concept / Launch  Architecture Design Session  Business Design Session

14. © Microsoft & Mural Ventures Corp 2006, All Rights Reserved The BDS methodology for assessing Provider maturity with respect to 8 Key “Go-To-Market” Success Factors that are required in selling & marketing Software-as-a-Service offerings: Competitive Differentiation Messaging & Positioning Packaging & Pricing Web-Driven Business Model Demand Generation Online Customer Experience Direct/Indirect Sales Processes Organizational Effectiveness Optimized  Competitive  Inhibited  Ineffective  Predictable  Business Design Session

15. © Microsoft & Mural Ventures Corp 2006, All Rights Reserved Self assessment before BDS After implementing the actions from the BDS Business Design Session

16. … “The Business Design Session helped us to recognize that there are two key but clearly separate threads available within our go to market strategy; because of that input we are now successfully pursuing mid market opportunities as well as our original Enterprise targets.” … Sam Nixson, CEO, Sunergeo “The Microsoft SaaS Enablement Program helped us find answers to questions where we knew we didn’t know the answer, and identify answers to some questions where we didn’t know we didn’t know. All in all a very good program for information, putting us in contact with the right people, and enabling us to commit with confidence to a SaaS offering in our next release.” Robert Hobbs, CEO, INPHASE “The Business Design Session was a great investment of our time to get a new perspective of our business and the future potential of SaaS. It is was great way to quick start our 2.0 business with competent Partners helping avoid the pitfalls. “ Soren Krarup, Brixx Solutions

17. Help ISVs to understand how to make their SaaS application benefit from the features provided by the Windows-based Hosting for Applications (WBHA) Solution. This solution offers Hosting Partners and ISVs: Lower TCO Decreased management costs Improved security Ability to deliver an SLA Provide guidance on how to connect to Microsoft Connected Services Framework Architecture Design Session

18. Flexible Windows-based hosting platform Modular components let you deploy what you need Windows platform lets you centralize and automate Hosted Messaging and Collaboration Data Services ASP.NET Hosting Web Hosting Microsoft ® Solution for Windows ® -based Hosting for Applications 3 rd Party Application Hosting Architecture Design Session

20. “At BT, we’re always focused on extending the breadth and reach of our service portfolio to ensure we are catering for the needs of our end customers.” “Using our service delivery environment based on Connected Services Framework, our vision is to aggregate these SaaS- enabled ISV applications with our own existing services to create compelling new offers which we jointly take to market.” Bill Murphy, Managing Director, BT Business Catalogue

21. SaaS ISV Telco 2.0 / CSF SaaS Incubation Center SelfHostedISVSelfHostedISV NTTEuropeOnlineNTTEuropeOnline 7global7global TelcoTelco TelcoTelco Vision- App SiennaxSiennax TelcoTelco SMB Customer Telco’s are becoming a platform for distribution of SaaS applications Microsoft Hosting partners are expert on building and operating the right infrastructure for scale against best TCO Microsoft Partner Program ISVs benefit from overall ecosystem, getting access to previously unavailable distribution channels Telco’s are becoming a platform for distribution of SaaS applications Microsoft Hosting partners are expert on building and operating the right infrastructure for scale against best TCO Microsoft Partner Program ISVs benefit from overall ecosystem, getting access to previously unavailable distribution channels

22. Anyone: Visit our online resources to find more details on our SaaS Enablement programs http://www.microsoft.com/saas http://www.microsoft.com/saas http://www.microsoft.com/saasincubation http://www.microsoft.com/saasincubation Hosters: Contact your PAM/HSS if you are interested in joining one of our SaaS Enablement programs http://www.microsoft.com/serviceproviders http://www.microsoft.com/serviceproviders ISVs: Sign-up for an engagement in one of our BD/AD Sessions. EMAIL : karlr@microsoft.com

23. © 2008 Microsoft Corporation. All rights reserved. Microsoft, Active Directory, Excel, FrontPage, Internet Explorer, SharePoint, Visual Basic, Visual Studio, Windows, the Windows logo, Windows Media, Windows NT, Windows Server, and Windows Server System are either registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries. The names of actual companies and products mentioned herein may be the trademarks of their respective owners. The information contained in this document represents the current view of Microsoft Corporation on the issues discussed as of the date of publication. 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 presented after the date of publication. Schedules and features contained in this document are subject to change. This document is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS DOCUMENT. The example companies, organizations, products, domain names, e-mail addresses, logos, people, places, and events depicted herein are fictitious. No association with any real company, organization, product, domain name, e-mail address, logo, person, places, or events is intended or should be inferred. This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary. Feel free to contact me and share ideas … karlr@microsoft.com