PowerPoint Presentation

Hitting the Highs with ERP

Claire Kennedy/ ERP Product ManagerMartin McCaffery/ Partner Account ManagerAgendaWhy is this important?The Go to MarketsThe Market OpportunityChanging the game: New ModelsPartners Changing the game: Case StudiesHow Microsoft is thinkingNext StepsWhy is the Mid Market important

Global Subsidiaries

Connect local entities to headquartersGlobal Organizations

Centralized ERP for multisite organizationVertical Business

Target specialized business needsImproved Financials and Operations Beyond basic financials and operations

The Dynamics ERP Go To Market5Growing business customers looking for ERP to cover core financial and operational functions IT and ERP seen as basic infrastructureLowest price is a major decision criteriaLow cost, risk, and fast implementation

Typical Customer ProfileCustomersCompetitors

Financials and OperationsImproved Financials and Operations Partner ProfileLow-touch, low cost, high volume sellingFast, standardised, repeatable implementation

6Typical Customer ProfileCustomersTech 1

Pronto

CompetitorsMid-market companiesNeed vertical solution covering most business functions out of the boxTypically focusing on one vertical and in one geographyDrive operational gains through ERP

Local VerticalVertical Business

Partner ProfileStrong vertical focus and deep experienceFast, standardized, repeatable implementation

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Market OpportunityTarget Market for Improved Finance and Operations and Vertical BusinessTypically outgrowing entry-level accounting software but may be right-sizing or moving from outdated proprietary software Typical profile - Companies with 25 500 employeesMarket OverviewHighly fragmented market, dominated by MYOB at the low end but no clear leader at the higher end - no clear migration path for businesses, opening the door to the opportunity of building market shareCustomers highly price sensitive, looking for predictability, packaged implementations, low riskThe ERP market in SMB is expected to grow to $192.7M in FY10 and $200M in FY11, with CAGR of 4.1% over the next 3 years

Source: IDC DataCMM & SMB - Pronto , Epicor, Sage, SAP prevalent price sensitivity & compelling product offerings. Players becoming more aggressive SAP have set up ANZ inside sales team, Infor's Latest Marketing Campaign - Down With Big ERP, Attache position Dynamics at high end, Epicors new release all threats. SAP claim market leadership (73,000)

8Thinking outside the box

9Partners Changing the Game

Vertical BusinessImproved Financials and Operations My GP Cloud

Improved Financials and Operations9/1/2010 12:10 PM 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. 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 provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

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What partners can think aboutFocus on volumeHigh growth aspirationSales and Marketing driven (dedicated resources for each)Short implementation time through repeatability and implementation methodology (RIM)Offer fixed scope implementation packagesLow software:service ratio (ex. less than 1:1)Business plan showing customers add expectationExample: Year 1: 25, Year 2: 50, Year 3: 100Create a repeatable, low cost marketing/sales process to execute targeted campaigns featuring fixed scope implementationsHosting Understand the SPLA model Setup landing page for their offering, pricing, evidenceHave integrated Click-Try-Buy offeringLeverage MS Financing or establish their own financing optionsLeverage local Microsoft campaign efforts as applicable

Total IT Solution FinancingSell software, services, and hardware as one investment.Flexible payment structures for customers to get all the IT solutions they need.

Financing ScenarioSimple, flexible,and affordableSmarter way tosell IT solutionsVAR

MicrosoftSoftware and Services3rd Party Software

Partner ServicesInstallation

Hardware

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How Microsoft is thinking Reduce implementation cost and risk (RIM & online RIM)Create suites with everything for customer pricing to suit Scale breadth awareness and marketing using positioning and messagingProvide on-line/teledemo and sales capabilitiesEstablish local specialistsCreate factories leveraging hosting partnersEstablish PAM role working with PDC on midmarketMore online trials, test-drives

What Now?

Build a business plan thinking outside the box

Work with Microsoft to deliver on plans

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