Medium Business – The Growth Engine

Tony Ward-Director Mid Market tonyward@microsoft.com

Agenda

• Mid-Market Customer Trends & Opportunity Analysis

• What Are We Doing To Stimulate Demand?• How Can You Capitalise On This?• Q & A• Appendix

– NZ Snapshot

Mid-Market Customer Trends & Opportunity Analysis

MidsizeMidsize

29k29k

25-499 PCs25-499 PCs50-999 50-999

employeesemployees

440k440k

CharacteristicsCharacteristics

# AUS Entities# AUS Entities

<25 PCs<25 PCs1-49 1-49

employeeemployeess

Small Small BusinesBusines

1k1k

500-1,000 PCs500-1,000 PCs1,000 -5,0001,000 -5,000employeesemployees

CorporatCorporatee

EnterprisEnterprisee

>1,000 PCs>1,000 PCs>5,000 >5,000

employeesemployees

200200

Medium Business Spending Forecasts

Through 2006, we expect MB IT spending to increase over 2005 levels as follows:

• Lower Mid Market +10%• Core Mid Market +5%• Upper Mid Market +4%

Total Spend in Medium Business$500m in software$2B in services

Source: IDC

Top Technology Priorities for Midsize CIOs – 2006 Gartner EXP Survey

Source: Gartner EXP 2006 CIO SurveySource: Gartner EXP 2006 CIO Survey

Collaboration technologiesCollaboration technologies

Customer sales and serviceCustomer sales and service

Networking, voice and data communicationsNetworking, voice and data communications

VirtualizationVirtualization

Legacy application modernizationLegacy application modernization

Service-oriented architecture (SOA)Service-oriented architecture (SOA)

SecuritySecurity technologiestechnologies

Mobile workforce applicationsMobile workforce applications

Business intelligence applicationsBusiness intelligence applications

Workflow managementWorkflow management

11

22

33

44

55

66

77

88

99

1010

Disaster recoveryDisaster recovery 1111

Is your Is your organization organization consolidating IT consolidating IT suppliers?suppliers?

Why?

• Leverage volume discounts

• Reduce vendor management complexity

• Reduce integration costs

Source: Gartner SMB Inquiry Survey/100 respondents/Summer 2005

• Increased IT cost and purchasing scrutiny by CFOs

• IT commoditization and standardization

• Simplify support requirements and reduce costs

Are you willing to Are you willing to sacrifice best of breed sacrifice best of breed functionality to functionality to consolidate?consolidate?

NoNo

YesYes

SMB Preference Is To Minimize The Number Of Vendors IT Has To Deal With

PercentPercent

5757

4545

6363

7575

25252525

656535353535

NoNo

YesYes

Top Upcoming Priorities by Industry Type-Australia

Wholesale General Manufacturing Finance/Services

Retail insurancen=19 n=19 n=55 n=33n=48

% % % %%

Security 22 23 16 1112

Ensuring stability/reliability 15 0 1 91

Upgrading MS desktop operating system 13 2 10 20

Upgrading MS server software 11 0 7 26

Upgrade/developing software 11 0 0 32

Developing web based systems/web page 11 0 0 00

Consolidation/integration/standardisation 3 0 3 138

Connecting information, people and devices 2 0 2 95

Nothing, just maintaining 1 0 18 99

Accounting and financial systems 0 20 0 00

Electronic linkage with suppliers/ distributors 0 18 2 00

Upgrading MS application software 0 15 3 22

Upgrade hardware/infrastructure/PCs 0 8 12 211

Enterprise Resource Planning (ERP) 0 3 7 00

Imaging and document management solutions 0 0 0 171

Keeping up to date/developing new products 0 0 0 110

HIGHLIGHTED AREAS = >10%

Australian Customer Needs – Key Takeaways

• Security is key in terms of – Upcoming IT initiatives– Requirement for more information (proactively)

• Upgrading of Servers increasing in importance

• Messaging around connecting information, people and Devices will resonate

What Are We Doing To Stimulate Demand?

Mid-Market Customer Campaigns

• Core Infrastructure Optimisation (CIO)– Drive demand for more secure, well managed, dynamic core

IT Infrastructure that reduces IT costs, moving IT to a strategic asset

• Business Productivity Infrastructure Optimisation (BPIO)– Focuses on how new technologies can overcome the growing

challenges facing businesses and their Information Workers

• Application Platform Infrastructure Optimisation (APIO)– Focuses on the capabilities that drive infrastructure to

support the application & process organisations build and deploy to run their business

Priorities & Customer Campaigns

Source: Gartner EXP 2006 CIO SurveySource: Gartner EXP 2006 CIO Survey

Collaboration technologiesCollaboration technologies

Customer sales and serviceCustomer sales and service

Networking, voice and data communicationsNetworking, voice and data communications

VirtualizationVirtualization

Legacy application modernizationLegacy application modernization

Service-oriented architecture (SOA)Service-oriented architecture (SOA)

SecuritySecurity technologiestechnologies

Mobile workforce applicationsMobile workforce applications

Business intelligence applicationsBusiness intelligence applications

Workflow managementWorkflow management

11

22

33

44

55

66

77

88

99

1010

Disaster recoveryDisaster recovery 1111

Customer Campaign

APIO-Q3

BPIO-Q2

CIO-Q1

CIO-Q1

CIO-Q1

APIO-Q3

CIO-Q1

Dynamics-Q1-Q4

APIO-Q3

CIO-Q1

BPIO-Q2

Executing Customer Campaigns In MM

Create Offer & Messaging

Close Sale

Identify Opportunities & Data Mining

Train Telesales Teams

Sales Engagement with Partners

How Can You Capitalise On This?

Call To Action

Work with your MS Partner Account Manager in terms of building your business plan to align with Customer Campaigns

Determine which vertical(s) you are strong in and look for competencies that resonate with this vertical

Look for other verticals that you are not strong in at the moment but they have demand for your competencies

Attend to CIO, APIO & BPIO Customer Campaign sessions (This room): $500+M in s/w….2B+ in services

Get Ready for Vista and Office 2007-install and train your staff-MCP certification, TechEd, MFP

Checkout www.microsoftio.com

Q & A

Appendix

NZ-Snapshot

NZ Mid-Market FY07 Priorities:MM is the fastest growing segment in MSFT NZ : FY07 plan 19% growth

Depth Customer for Life (400 customers) Build customer relationships and trust by delivering targeted messages and value propositions at the right time

2 x Inside Sales become FTE. Territory size 1:200 Work with partners to drive consolidated approach to customer Leverage MS tools to identify target growth opportunities CPE focus to assist customer getting the best out of their technology investment.

Breadth Customers (3000 customers) Expand reach and provide greater experiences to Breadth business via marketing engine Grow internal infrastructure (data, web) to provide strong marketing relationship

Excel with Partners Focus on our Partnerships to drive best possible customer experience and results

Marketing Excellence Adoption of Customer Campaigns to align and leverage activity as executed through partners Increased sales and marketing relevance to customers (eg via industry specialization, data analysis, profiling).

MBS Velocity Drive Dynamics pipeline through strong execution of Customer Campaigns, and cross group marketing excellence

Drive New Areas of Growth

Mid-Market NZ Team• Elizabeth Kirby MM Business Manager

– ekirby@microsoft.com• Rebecca Henderson MM Marketing Manager• Joy Snook MM Business Development• Matt Grant MM Business Development• Natasha Ershova MM Inside Account Manager• William Staples MM Inside Account Manager• Hilary Davy MM Information Worker Specialist• TBA MM Marketing Manager

(Breadth)• TBA MM Infrastructure Specialist