1. Software+Services the Hoster opportunity

2. Software+Services in perspective Software + Services PC Browser Mobile TV Software License Subscription Service Transaction Advertising On Premise Hosted Microsoft Hosted Aggregation of Services Directory federation Storage Computer resources Web 2.0 SaaS SOA ++

3. Hoster Opportunity

4. Drivers for SaaS Adoption 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 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

5. Driven by Opportunity...... many ISVs are hosting their traditional application using Terminal Services and Citrix. Many have re- engineered their applications for delivery in a browser. Some of these ISVs choose to host their application themselves.

6. Driven by Demand...... Managed Hosting or Hosting Service Providers have responded by creating SaaS Hosting offerings specifically targeted at ISVs.

7. What is SaaS Hosting? SaaS Consulting Offerings –SaaS-Enablement Consulting Services –SaaS Business Planning Consulting Services –SaaS Go-To-Market Consulting Services SaaS Operations –Application-specific Monitoring and Capacity Planning –Application-specific operational run- books / procedures –Customized backup configurations / schedules –Personnel with specific expertise on the ISV application SaaS Support –Level 1 Call Center Support for the ISVs customers –Customized Service Level Agreements SaaS Infrastructure –Customer Account Provisioning –User Account Provisioning / Directory Services –End-Customer Self-Administration Portals –Online self-signup capabilities –Billing Services including Credit-Card Billing A Fully Managed Hosting Infrastructure, plus …

8. Hoster Opportunity 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

9. Platforms & Infrastructure Solutions

10. Windows-based Hosting for Applications Solution Overview Flexible Windows-based hosting platformFlexible Windows-based hosting platform Modular components let you deploy what you needModular components let you deploy what you need Windows platform lets you centralize and automateWindows 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

11. Software+Services Platforms Moving to more ‘restricted’ application platforms like SharePoint and CRM will help Hosters to –optimize the infrastructure –reduce TCO For ISVs this will provide benefits in –Time to market –Target development on the differentiating functionality rather than core back-end WS2008 Value added by platform WS2008 WSS 3.0 CRM 4.0 Commercial ISV Applications SharePoint Template Applications Applications

12. Application Hosting through SoftGrid Virtualization for Terminal Services Microsoft Softgrid Application Virtualization for Terminal Services helps to: Reduce the technical complexity Remove expensive dependancies Simplify the organization More information on SoftGrid for Application hosting in whitepaper [insertlink]

13. Summary Microsoft can provide hosters with technology and business support to move up the value-chain of complex application hosting –Windows-based Hosting for Applications Traditional Applications SaaS applications –Microsoft Softgrid Application Virtualization for Terminal Services Traditional Applications optimized –Microsoft SharePoint Services Lightweight native SaaS applications –Microsoft CRM 4.0 (Titan) True Software+Services application platform

14. Distribution & Channels

15. SaaS Incubation Center program “The Microsoft SaaS Incubation Center Program has established a number of facilities operated by Microsoft partners, where ISVs are guided through a structured series of business and architectural consulting sessions to help ensure their business model and applications are ready for the challenges of service- based delivery. SaaS Incubation Center Program partners utilize the Microsoft Solution for Windows-based Hosting for Applications, which provides the platform architecture, guidance and sample scripts for service providers to host SaaS-based applications. “ Microsoft press-release November 2006

16. SaaS Incubation Center Program 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 Catalogue Proof of Concept / Launch Architecture Design Sessions Business Design Sessions

17. SaaS Incubation Center Business Development Session … “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

18. SaaS Incubation Center coverage EMEA North America LATAM ASIA To be announced !

19. Q&A

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