Opportunities to Increase Revenue & Profits

GLENN OSAKOPARTNER TERRITORY MANAGER

Microsoft Partner Network

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The value of partner-to-partner activities

Partners Make More With Microsoft

44% Of hardware sold (by value) ran on Microsoft operating systems

56% Of software sold (by value) ran on Microsoft operating systems

The software and services subset made $4.43

For every dollar Microsoft made in 2009, its partners made $8.70 For themselves.1

=

44%

56%

2009 $10.1 billion

2007 $6.8 billion

In a study of the International Association of Microsoft Channel Partners and its members’ business activity, IDC found the total value of partner-to-partner activities rose from$6.8 billion in 2007 to $10.1 billion in 2009.1

22%The compound annual growth rate in this time was 22%

Source: Partner Opportunity in the Microsoft Ecosystem - IDC white paper, commissioned by Microsoft Corp., March 2011

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Companies investing more had 28% greater revenue per

employee

Higher-investing partners had 68% larger deal sizes

Partners Who Invest More, Perform Better

68%28%

Source: Partner Opportunity in the Microsoft Ecosystem - IDC white paper, commissioned by Microsoft Corp., March 2011

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Is my organization due to renew?

1. Sign in to the Microsoft Partner Portal with your

Windows Live ID.

2. Click View Your Membership Account at the top

of the page to see your membership renewal date.

3. If the drop-down message indicates that you have

90 days or fewer left in your membership, then it’s

time for you to begin the membership renewal

process.

Renew Your Microsoft Partner Network Membership

Retain your robust benefits and resources exclusive to Microsoft Partner Network members

Yes, my organization is due to renew…

Get started by following this step-by-step guide

Please Note: The Program Administrator is the person authorized to complete your organization’s renewal. If the Program Administrator is not accurate, please contact the Regional Service Center to update your information so you can renew your membership.

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SMB Partner Engagement Framework

CCC286

Partners

VCC 372

Partners

PTM (10)1:35 Ratio

350 partners cap.

dTPAM (45) 1:60 ratio

2700 Partner Capacity

SBSC TPAM (3)

1:250 ratio750 Partner

Capacity

Disti Only Coverage

BDM (10) 1:35 ratio

350 partners cap.

~600 U

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ue

Part

ners

2200 Partners

699 Partners

Unmanaged VARs

8114 Partners

MOSPA Advisors

7914 Partners

Shared Coverage

Model with LAR13

Partners

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• Secure broadline VAR revenue

• Drive attach to the Server Socket

• Increase annuity mix

• Increase frequency

• Drive more growth from top partners

• Grow Cloud partner capacity

• Increase annuity mix

• Drive Emerging & Growth solutions

• Drive geo coverage to recruit and activate channel around Core, Growth and Cloud

• Continue volume growth in core revenue

• Increase cross-sell & upsell across MS stack

STRATEGIC IMPERATIVES

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The U.S. Top VAR Program is designed to reward committed Microsoft Partners while helping to increase their revenue and profitability.

U.S. SMB Top VAR ProgramTake your business to the next level

https://partner.microsoft.com/us/TopVAR

Program Benefits

Expert Guidance Assigned Tele-Partner Account Manager(T-PAM) support to expand your practice

Greater Incentives Increased channel incentives withup to 25% on current rebates (Payout rates: 4%, 8% , 25% depending on solution)

Marketing Development Funds (MDF) Marketing development funds to better promote your services* ($500 per Program Period)

New Competencies Special subsidies to increase your Microsoft competencies ($150 in Exam Subsidy Funds)

Program Eligibility Requirements**• 25+K SMB Open Revenue• 4+ Minimum Transaction Requirements• MPN Enrolled

*Must have at least one competency to receive MDF benefit**Over 12 Month Eligibility Period as outlined in Program Guidelines, Terms and Conditions

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For more information, simply visit: https://partner.microsoft.com/US/varchamps

“I think the SMB VAR Champions Club is one of the most progressive Microsoft programs. The first rebate check we received was awesome!”Bryan Kuntz,Vice President of Operations, Intellicom

VAR Champions Club

Reap the rewards of being a champion

The VAR Champions Club recognizes and rewards US partners for their impact in the SMB market. It offers significant rebates, resources and support for members to take their business to the next level.

Club BenefitsThere are 3 program tiers, with benefits increasing by tier• Microsoft Field Engagement• VAR Champions Club Rebate • Marketing Development Funds• Business Investment Funds • Practice Accelerators• Ready-to-Go Customer-to-Partner Leads• Technology Strategy Solutions Engagement• Other community-specific offeringsClub Eligibility Requirements• Tier 1 –$100+K in SMB Open non-recurring,

20+ License Agreements, 2+ MPN Competencies

• Tier 2 ––$200+K in SMB Open non-recurring, 20+ License Agreements, 2+ MPN Competencies including 1 Target Competency

• Tier 3 ––$400+K in SMB Open non-recurring, 20+ License Agreements, 2+ MPN Competencies including 1 Target Competency and 1 Gold Competency

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3% 7%VAR (OV/OVC)

VAR Champions Club

(Open/OV/OVC)

FY12-H2 Rebate Opportunity Matrix (Annuity Payout Rates on New Revenue*)

20%

6% 11% 30%

1% (Open-L)

4% 9%Top-VAR (OV/OVC)

25%

Enroll for Rebates at: http://www.oneview.ms/VAR/

FY12-H2 Channel Top VAR Rebate Payouts

* Rebate payout calculated on ERP, See Top VAR FY12-H2 Rebate Program Guidelines, Terms and Conditions for all Program Details.

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Ken Klika,Director of Networking Services, BCG&Co

“Membership in the Cloud Champions Club is helping our business thrive… I can’t imagine building a successful cloud-based offering without being a member of the club.”

The Cloud Champions Club gives US partners the support they need to grow their cloud services business. It offers expert advice, resources and funds to help your cloud business soar.

SMB Cloud Champions ClubExpand your cloud service horizons

For more information, simply visit: https://partner.microsoft.com/US/cloudchamps

Club BenefitsThere are 3 program tiers, with benefits increasing by tier• Assigned Business Development Manager• Technical Solution Professional Engagement• Cloud Champs Practice Builder Toolkit• Business Investment Funds • Marketing Development Funds• Promotional Incentives• Enhanced Operations Support• Other community-specific offeringsClub Eligibility Requirements• Tier 1 –6+ active SMB customers and

150 seats in total & Cloud Essentials or Cloud Accelerate

• Tier 2 –16+ active SMB customers and 400 seats in total & Cloud Accelerate

• Tier 3 –40+ active SMB customers and 1000 seats in total & Cloud Accelerate

The Annuity OpportunityConsistent and Predictable Revenue Stream

SA Benefits: Comprehensive Benefits at Every PhaseNew Version RightsSpread Payments*

Extended Hotfix Support

24x7 Problem Resolution Support*TechNet Subscription Through Software AssuranceCold Backup for Disaster Recovery

Deployment Planning Services: *Desktop SharePoint Lync & ExchangeSQL ServerPublic Cloud Private CloudDeveloper Tools

Windows 7 EnterpriseMDOP – MS Desktop Optimization Pack *Training Vouchers *E-LearningHome Use Program

* Only available with Open Value licensing programs

Why should you care? Be the Trusted Advisor

• Sell Annuity and build customer loyaltyo Avoid customer shopping each transaction, secure customer for 3 yearso Annual payment and True-Up meetings open the door for sales conversationso Become an administrator on your customer’s volume license site

• Services Revenue o Predictable and budgeted software costs via annuity frees up money for serviceso Always the current version – move to Plan and Deployo Deployment Planning Services benefito Under licensing opportunities – Software Asset Management (SAM)o Year 4 and beyond software cost reduction

“Why should I buy Open Value? I don’t know when a new version will release and isn’t it cheaper for me to just buy Open ‘L’ licenses?”

• Software Assurance can actually help you save money and reduce complexity • Renewal Cost in Years 4-6 is ~40% less than Years 1-3 • Consider Open Value Subscription as lower cost alternative• Customer needs to consider all SA benefits and consider

cost if bought separately

Customer Objection:

Tips for Positioning SA To Customers• Quote and lead with Open Value

• Land the message of predictability for software planning & spend

• Know Software Assurance benefits; align to customer pain points

• Present 6-year analysis of OV vs. License Only + Re-Buy

• Monetize benefits and compare to buying separately (training, consulting services, support)

• Compare Software Assurance to competitors’ maintenance programs and point out that SA includes a more comprehensive range of benefits• Consider getting a License History Report from Microsoft

1. Control of your Software Investmento New versions of licensed software includedo Deploy software as needed

2. Simplified License Trackingo Single agreement for all licenseso Standardized desktops reduce license trackingo Ability to add licenses to same agreement during years 2&3

3. Better Cost Managemento Predictable annual budgeto Cost benefit to standardizing company wideo Reduced up-front costso Maximize SA Benefits

Customer Benefits of Open Value Licensing

Annuity Benefits for Partners

1. Generates services opportunities (deployment, training, development)

2. More customer budget available for services

3. Creates a customer for life

4. Opportunities for annual revenue stream

5. Recognition for Microsoft reseller programs VAR CHAMPIONS CLUB and Top VAR Programs

6. Larger payouts for many back end rebates & incentives

Selling the Microsoft StackIncrease your deal size

Solutions to Look for AttachMessaging: Microsoft Exchange ServerCollaboration: Microsoft SharePoint ServerMobility: Microsoft Windows PhoneUnified Communications: Microsoft LyncLine of Business Application: Microsoft CRMBusiness Intelligence: Microsoft SQL Server

Licensing only clients who skipped the 2007 releaseSignificant pain around Office format changes

Office is highest per seat revenue generator for licensing Server software drags hardware, storage, services, etc… Office compliments server products - it’s the glue!

Selling the Microsoft StackQuoting/Selling Add This Why Upgrade?

Microsoft Office 2010 Microsoft Exchange Server 2010 & CALs To take full advantage of Office 2010 features you need Exchange 2010

Microsoft SharePoint 2010 & CALs Optimize collaboration with integration with Infopath & document sharing & co-authoring

Microsoft Windows 7 Purchasing with office provides the Best Productivity experience!

Windows Server 2008 R2 Microsoft Office 2010 Professional Plus Use the Server OS with the most current application

Microsoft System Center Essentials 2010 Virtualization management as well as physical server & desktop management.

Remote Desktop Services (aka Terminal Services) Another way to provide desktop virtualization that scales better to the SMB customer.

Microsoft Forefront Protection Suite Provides protection to server /desktop from viruses & malware.

Microsoft SQL Server 2008 R2 Microsoft Office 2010 Professional Plus Take advantage of Business Intelligence features in SQL 2008 R2 you need Office 2010 (Excel). E.g. Power pivot, Slicers etc…

Microsoft Windows Server 2008 R2 & CALs Take advantage of the ability to virtualization on your server. Upsell to SQL Premium.

Exchange Server 2010 Microsoft Office 2010 Professional Plus If you don’t have Office Pro Plus you can’t take advantage of email archiving, mail tips, multi-exchange mail boxes etc.

Microsoft Windows Server 2008 R2 & CALs Take advantage of the ability to virtualization on your server. Upsell to Exchange Premium.

Partner Resources / Next steps

1) Sign-up or Renew your Microsoft Partner Network membership!

https://partner.microsoft.com/

2) Connect with your preferred Microsoft authorized distributor:

https://partner.microsoft.com/40014697

3) Sign-up for the VAR Rebate program:

http://www.oneview.ms/VAR

SELL THE MICROSOFT STACK & WATCH YOUR PROFITS GROW!!