Small Business in FY07

2. Small Business in FY07 Customer Campaigns, Partner Engagement & Opportunities

3. Microsoft Small Business Team Therese McGrath Director, Small Business Renato Ulpiano Business Development Manager, Small Business Alex Snelson Marketing Communication Manager, Small Business Athena Thompson Marketing Manager, Small Business Partners Business Groups OEM Bill Vlandis Small Business Specialist Partner Development Kylie Summerhayes Product Marketing Manager, Small Business Server Katrina Powers Partner Development Manager, System Builder Channel Duncan McGilligan Product Solutions Manager, Client Rita Alexandrou Product Solutions Manager IW

4. Why Small Business is Important • There are 1.2M Small Businesses in Australia, employing 3.7M people. • Small businesses account for 96% of all businesses in Australia, and for 47% of employees / self employed (7.8M all employees). • Employment • 30% of people working in small businesses are employers or self employed, while 70% are employees. • Management of Multiple Businesses • 93% of Small business operators run only 1 business • Tenure • 13% of Small business have been in business for less than 1 year • 34% for 1 to 5 years • 20% from 5 to 10 years • 33% more than 10 years • Use of Technology • 94% are using computers (1.1M PCs), with the likelihood increasing with the size of business. Ownership of notebooks increased from 33% to 39% last year, increasing from 19% in 2000. • 96% have access to the internet, an increase of 10% in 1 year, major uses are email, research, making or receiving payments, online payments Source: ABS Characteristics of Small Business, April 2004 8127.0. ABS Small Business in Australia, 1321.0 2001 Use of Technology, source Sensis-E-Bus Report, July 04

5. Life As A Small Business Challenges Benefits • Time • Multi-tasking • Administration and bureaucracy • Keeping on top of things • Cash-flow • Product quality • Customer management • Autonomy • Flexibility • Reward • Pride • Family time • Customer satisfaction

6. The Role of IT in Small Business A vital tool Takes up too much time Confusing Would rather be doing other things Limited skills & knowledge Competitive advantage Saves time Improves efficiency – enables you to do other things Necessity Importance of IT A necessary evil Minimalists Pragmatists Integrators Innovators Attitude Towards IT Not Strategic Functional Tool Critical to Business Strategic, key to growth Technology Adoption Limited Operational Highest Expanding Business Attitudes Risk Averse, Price Sensitive Most Practical, Medium Risk Cautious, Driven by Suppliers Most Risk Tolerant Source: The Leading Edge: I Am Messagibg Research

7. Microsoft Small Business in FY07 Customer Campaigns

8. Customer Campaign Strategy • Compelling customer messaging • Broad reach (example: web) • Builds on the product stack • Focus on offers • Partner readiness and connection

9. Customer Campaign Approach

10. Life As A Small Business Challenges Benefits • Time • Multi-tasking • Administration and bureaucracy • Keeping on top of things • Cash-flow • Product quality • Customer management • Autonomy • Flexibility • Reward • Pride • Family time • Customer satisfaction

11. Small Business Customer Campaign Overview Customer Pain Point Messaging Timing Data backup and security > Ask for a Technology Assessment First Server Right Server Extension: Aug-Oct April-June I worry about losing my critical business data Business Goals I need to make decisions when out of the office Access data anytime Mobility Oct-March Q2/Q3 Being connected anywhere A single customer management tool My customer contact/sales info is all over the place Sales & Marketing Extension: Aug-Oct Market your company, products & services efficiently Marketing is expensive Help employees work more efficiently Backup & protect your business information Market & sell more effectively I/we need to work more efficiently - and securely I need to market my business Small Business PC Q2: Dec Jan-June Q3/Q4

12. Small Business Online Resources • Small Business Centre • Product information, business templates, tools & tips • Customer campaigns, including Partner list. • Partner & Solutions finder www.microsoft.com.au/smallbusiness • Small Business + Membership access to: • Business and software training • 24/7 self-help support • Regular newsletters • FY07+: licensing statements, new training, partner integration www.microsoft.com.au/sbplus

13. Small Business+ Partner Integration Feedback Please! • Find a Small Business Specialist: post-code search • Under discussion for second half of this fiscal year

14. Customer Campaigns and Partners • Customers want a Trusted Advisor or Partner to advise them and sell to them • Microsoft wants strong partners to fulfil demand • Microsoft lead generation via website/call centre • Small Business Specialist integration • Our campaigns are designed to help partners turn known customer needs into profitable, long-term business opportunities. • Through training/readiness programs, marketing materials, product solutions and resources. • Visit the Partner Marketing Centre at: http://www.microsoft.com.au/partner

15. Creating Your Own Campaigns • Leverage the professional marketing materials provided to run your own campaign/s: Identify your customer key needs (pain points) Choose the right Customer Campaign Download and customise with your Company logo and offerings

16. Example of a Current Customer Campaign First Server Right Server • All participating Partners get: • Campaign materials (Direct Mail, Letters, Email, Fax, Call Guide) • Expert online sales training • Online technical resources and training • Downloadable Small Business Technical Assessment Toolkit • Campaign offers & incentives, eg, five assessments & one free copy of SBSR2 • Small Business Specialists also get: • Opportunity for campaign leads inclusion • Instructor-led sales and marketing training • Additional sales and marketing materials • Small Business Technical Assessment Toolkit CDs

17. Partner Campaign Materials Through-partner campaign materials include: • Presentations • Business letters • Emails • Flyers • Postcards

18. Microsoft Small Business in FY07 Research Insights

19. Customer Campaign Offers: Why Buy Now? • FY07 Customer Campaigns: • Customer offers for stages of lifecycle • To-Partner offers, including IDC Whitepapers, Product Guides, Readiness Training, Technical Assessment Toolkit and Referral offer. Capitalis Research, Small Business Owners Evaluation of Offers, May 2006

20. Customer Attitudes to Open License • 8 out of 10 are aware of different licensing options with two-thirds specifically aware of MS Open License • Satisfaction and likelihood to repurchase are high amongst Open License Owners • 46% very satisfied; 49% satisfied • 80% said they would re-purchase • MS Partners and talking to IT employees were the most common ways of hearing about MS Open License TLE Research, Small Business Owners Evaluation of Open License , June 2006

21. Licensing and Your Business John Walter, Director of Sales (Commercial) Ingram Micro

22. Leading IT Distribution… The world’s largest IT Distributor 100 countries with 70 DCs 2005 Revenues = USD28.5 bil 13,600 associates worldwide # 1 market position NYSE listed & # 71 on Fortune 100 Ingram Micro Australia $2bil revenues & 850 employees Broadest range of vendor products Newly launched Solutions Division Investment in pre-sales technical resource Orbital training and education Licensing Solutions Team of 36 Over 25 Years of Experience in IT Distribution

23. Australia Wide Sales Footprint BRISBANE 25 SYDNEY Office and DC 131 PERTH Office and DC 14 ADELAIDE 9 CANBERRA 5 MELBOURNE Office and DC 35 Total Commercial & Solutions Division = 220

24. SALES SOLUTIONS REVENUE VENDOR SOLUTIONS VENDORS RESELLERS • BDMs • Regional or customer • specific segment • New Business • Development • Collaboration • Pipeline • Management • Account Managers • Account Specific • Central Point Of • Accountability • Relationship • Facilitation + • Coordination • Closure • BDMs • Vendor or Technology Specific • New Business Development • Collaboration • Pipeline Management • Solution Architects • Technology Engineering Gurus • Vendor or Technology Specific • Solution Design + • Configuration • Vendor Managers • Vendor Specific • Vendor Evangelists • Relationship • Central Point of Accountability • Facilitation + Coordination • Marketing, Promotions + • Campaigns Builders • Systems • Integrator • Solution • Provider • Service • Provider • ISVs • Consultant • Server • Storage • Networking • Security • Software • Licensing

25. Ingram Micro Licensing Solutions

26. Converting Box to Licensing • Education – road shows, seminars, Expotech • Pre-sales support – investing in technical resource, MCSE in licensing team • Providing tools – licensing on-line, wall chart, access to pre-sales, renewals tool • How to sell licensing over box

27. Why Sell Licensing over Box • Better pricing based on volume • Ease of asset management • Software Assurance Benefits (free training) • Ongoing Renewal Business • Freight Costs, Speed to Market, No Inventory • Open Value – Cash Flow, Margins (25% up front), Renewal Business

28. Case Study • Reseller - X • Visit to End User (Legal Firm) with reseller to assess needs • End user consolidating 2 businesses and therefore licensing also • Gathering of end user reports from Microsoft, preparation of quotations • Recommended and sold benefits of Microsoft Open Business • Ensured that the customers legal requirements could be met whilst financial guidelines/timelines adhered to • Assisted Reseller in closing the business worth $500k over 2 years

29. Tools to help you sell more licensing • Intersell – marketing Campaign Manager • Licensing on-line – configure and order on line • Renewals on-line – manage and monitor your annuity business • Wall chart – ready reckoner for licensing • Automated pricing feeds • Dedicated Open Value Specialist • What’s coming….EDI development, process efficiencies, Techlink upgrade

30. Ingram Micro Licensing Renewals

31. Intersell

32. Will we see you in Rio?

33. Microsoft Small Business in FY07 Questions & Answers Wrap Up

34. Microsoft Small Business Contacts Therese McGrath: theresem@microsoft.com Athena Thompson: athenat@microsoft.com Renato Ulpiano: rulpiano@microsoft.com Alex Snelson: asnelson@microsoft.com Bill Vlandis:bvlandis@microsoft.com