Selling Online ServicesThomas KablauLicensing Marketing Manager

Frederique DennisonProduct Manager

Philip MeyerRegional Hosting SpecialistCommunications Sector

Oscar TrimboliProduct Manager

Online Services?

• Gaining momentum fast

• “Central pillar of the company’s business model… make the organization easier, quicker and more efficient for customers and vendors alike…”

• “… fictional Online Services that are specifically mentioned or seen in works of fiction, rather than fictional websites that exist in reality are still regarded as Online Services.”

Online?

• Under the control of a central computer, as in a process or an experiment.

– Connected to a computer or computer network.

– Accessible via a computer or computer network: an online database.

– In progress; ongoing: online editorial projects.

Services?

• To make fit for use; adjust, repair, or maintain: service a car.

• To provide services to. To make interest payments on (a debt).

• Slang. To have sex with.

Agenda

• Value Proposition

• Software As a Service OpportunityFrom a Partner Hosted Perspective

• Current Licensing Opportunities

• Summary

• Q&A

Navision

Software Delivery Options

Antigen

WindowsServerSystem

Office

Windows

Antigen

HMCWbH

Office

Windows

Windows Live

Axapta

EHS

Office Live

Live Meeting

On Premise Partner Hosted Microsoft Hosted

NavisionAxapta

MS CRM MS CRM CRM Live

Des

ktop

Ser

ver

Con

fere

nce

Dyn

amic

s

Value Proposition

Frederique DennisonEmail fdennis@microsoft.com Telephone +61298702436

Opportunity - Software as a Service Market

Source IDC: Worldwide and U.S. Software as a Service 2005-2009 Forecast and Analysis: Adoption for the Alternative Delivery Model Continues, IDC #33120, March 2005

IDC predicts worldwide spending on SaaS will reach $10.7B in 2009

Worldwide spending on SaaS increased 39% from 2003 to 2004

5 - Year21% CAGR

Worldwide Software as a Service Spending Forecast

$3,370M$4,448M

$5,560M$6,623M

$7,571M$8,583M

$334M

$433M

$562M

$731M

$916M

$1,082M

$501M

$582M

$680M

$795M

$928M

$1,079M

$0

$2

$4

$6

$8

$10

$12

2004 2005 2006 2007 2008 2009

Americas Asia Pacific EMEA

Opportunity - Adoption Status

79 % Now purchasing and/or reviewing SaaS offering

0 10 20 30 40 50 60

Not Purchasing orReviewing SaaS

Reviewing SaaS

Purchasing SaaS

Large (10,000+) Medium (100-9,999) Small (<99 employees)

(% Respondents)

0 10 20 30 40 50 60 70

Request by yoursenior management

Advice from yourpeers

Increase employeeproductivity/efficiency

Drive to reduce ITcosts

Need for a major

software upgrade

(% Respondents)

Software upgrade triggering 60 % respondents to purchase and review SaaS

Source: IDC, Software on Demand's Impact on the Software Industry: Transformation, Extinction, or Rebirth?, #33558, July 2005

VirusesWormsSpam

Live Communications Server

Users

Internet

SMTP Server

ISAServer

SharePoint

Exchange Server

EdgeE-mail

Collaboration

Antigen E-mail and Collaboration Server Security

VirusesWormsInapp. Content

Management

Microsoft Operations Manager Antigen MP

The Software As a Service OpportunityFrom a Partner Hosted Perspective

Philip MeyerRegional Hosting SpecialistCommunications SectorMicrosoft Australia

Agenda

• Software As a Service (SaaS) Opportunity• Microsoft’s Software and Services

– Licensing– Guidance– Web-based Hosting for Applications Platform

and Tools– Support and Community

• Resources• Questions

SaaS impacts the entire consumption cycle, in particular in the L.O.B. application space

Purchase Deployment End-Use Management

From:CapEx

To:OpExTry before you buy

From:Customization

To:Configuration

From:Over served

To:Under served, but easier to use

From:Reliance on internal IT

To:SLAs

From the Provider’s Perspective

Two recurring questions (no clear answers yet):– How do I compensate my sales people?– How does SaaS impact contracts, liabilities, and SLAs?

Subscription (monthly, for example,

Salesforce.com)

Transaction Based Pricing (success-based, for example, PayPal)

Usage Based Pricing

(Cell phone limited all-you-can-eat)

Ad-Based Revenue

(success-based, Pay per click, for example,

AdCenter)

SaaS and The Long Tail

Your Large Customers

Dozens of markets of millions or millions of markets of dozens?

$ / Customer

# of Customers

Your Typical Customers

(Currently) Your “non-addressable” CustomersNew addressable market >> current market

What if you lower the costs of consumption (that is, lower barrier to entry) and you also lower cost of operations?

Winning Software + Services with Microsoft

Software +

Services

Licensing

User Experience Guidance

Support and Community

Platform and Tools

Licensing

Service Provider License Agreement (SPLA)– No Up-Front Cost, No Commitment– Pay for What You Use– Two Model: Per User or Per CPU– Rights to Upgrade

Licensing: What’s New

Service Provider License Agreement (SPLA)– SPLA to ISVs– Customer Evaluation Extended – Cold-Disaster Recovery Grant– SPLA Feedback Project

“On the first day we ran MOM, we found 33 critical events that we hadn’t even known about. We had simply never monitored them before.”

Chris Munoz, Vice President Hosting Services, Vertafore

Vertafore Lowers their TCO with Microsoft Solution

7X Improvement Multiple Concurrent Builds 15 min /server

First to Know- 30X Faster Resolution 9000 events - 1 console

4X Improvement 7 hours /month

Server Build 9 new servers/month111 min /server

Event Monitoring 70 events — 8 consoles Customer complains

Patch/Updates 28 hrs/month

Server Purposing Mod

Monitoring and Reporting

Update Management

videovideo

Guidance

Hosting Infrastructure

ApplicationArchitecture

Platform and ToolsSolution for Windows-based Hosting for Applications Version 1.0

Platform, tools, and best practices to enable applications for delivery as a service

Windows-based Hosting for Applications

Microsoft Solution for Windows-based Hosting for Applications Version 1.0

– Target Audience• ISVs self-hosting applications • Application hosting Service

Providers– Key Benefits

• Faster time-to-market• Lower Total Cost of Ownership

(TCO)• Simplify application and

infrastructure management• Reference and Best Practices

(App Hosting 101)

Guidance, Best Practices, Sample Code

Management Platform

•Active Directory®•Update Services•Monitoring

•Reporting•Provisioning•Automation

Windows-based Hosting for Applications

• Application hosting specific guidance

• Step-by-step installation guide

• Guide for creating an application-specific management pack and reporting

• Automation of routine processes and tasks

• Delegate administration

• Sample code, control panel, SDK

Guidance, Best Practices, Sample Code

Management Platform

•Active Directory®•Update Services•Monitoring

•Reporting•Provisioning•Automation

“The Microsoft solution enabled Made2Manage Systems to develop a hosted offering with a minimum of risk and the potential for a strong return on investment.”

Jeff Tognoni CEO Made2Manage

Made2Manage offers a Hosted ERP using Microsoft Technologies for Provisioning and Monitoring

Quickly enable hosted offer without changing the application itself

Automate complex provisioning steps to get consistency, security, and efficiency

Customer needs advance features but an on-premises solution is cost prohibitive

Need to deliver hosted offer in a multitenant environment to take advantage of cost savings of scale and providing a secure offering

Create a hosted offer with the ERP product

With Microsoft Solution for Windows-based Hosting for Applications Version 1.0

7

Exchange Services: Providing Choice

• Hosted Filtering• Hosted Archiving• Hosted Encryption• Hosted Continuity

Complementary Messaging Management and Security ServicesComplementary Messaging Management and Security Services

Choice of Messaging PlatformChoice of Messaging Platform

OROR

Hosted by Service Hosted by Service ProvidersProviders

On-premise ServerOn-premise Server

How We Engage With Partners

• Resellers (LARs, VARs, Distributors)– EA, Select, Open Value, Campus and School.– Service configured by the customer– Microsoft support

• Hosted Service Providers– License through SPLA.– Partners configure services on behalf of the customer– Partners provide Tier 1, Microsoft Tier 2, 3, and 4

Support and Community

• Microsoft Partner Program• Market Development• Training• Support

10

Resources• Hosted ISV Landing Page (

microsoft.com/serviceproviders/applicationhosting )– Service Provider License Agreement (SPLA) information– Solution documentation and bits– Case studies

• Solution Demo (http://www.solutiondemo.net)– Self-guided, online demo– Videos on advanced topics about hosting– Components of the Windows-based Hosting Solution

• ISV Hosting Starter Kit (microsoft.com/hosting)– Business and technical overview– White paper and case studies

• Hosting Community– Technical assistance from community experts– Referral program (hostedisv@microsoft.com)– Online Windows Hosting Forum (

http://www.microsoft.com/hostingforums/)

Resources to Get Started

• Invest in Microsoft Platform for Hosted Applications

• Engage with Microsoft to Develop Application Hosting Offerings

• Get started at http://www.microsoft.com/serviceproviders/solutions/applicationhosting.mspx

Current Licensing Opportunities

Oscar TrimboliUnified Communications GroupEmail oscartr@microsoft.com Telephone +61298702075

CALs by Functionality

Communications Server 2007Standard CAL

Communications Server 2007Enterprise CAL

Communications Server 2007“Call Management” CAL

IM/Presence ConferencingVoice &

Call Management•Rich presence •Personal information

manager integration (Address book synchronization and search, Calendar, OOF message)

•Enhanced Enterprise IM including Group IM

•Peer to peer video collaboration

•Peer to peer data collaboration

•Multiparty collaboration (data, video, IP voice in support of conferencing)

•Voice media on the Softphone

•Advanced call routing •Ad-hoc multiparty voice•Remote Call Control (i.e.

former Telephony CAL)

Office Live Meeting 2007 Addresses Core Meeting Scenarios

SegmentScenario SMB EPG

Individual or Department

Org-Wide Deployment

Individual or Department

Org-Wide Deployment

Specialized Meetings

Events & line of business-specific meetings – tend to be very large, external, structured, and scheduled

Ex: Training; marketing web seminarNA

Formal Meetings

“High Stakes” meetings – could be any size but tend to be medium sized, external, structured, or scheduled

Ex: Customer presentation; v-team working meeting

Informal Collaboration

“Low Stakes” meetings – tend to be small, short, internal, or ad-hocEx: Impromptu discussion of document with colleague

Professional Edition

Standard Edition

Core Functionality

• Professional Edition:• 250 Meeting Capacity• Registration• Breakout Rooms• Testing• Other Training & Events features• Plus Standard Edition features

• Standard Edition• 25 Meeting Capacity• VoIP• Video• Application Sharing• Other collaboration features

Server and Service Conferencing Bundle

EPG w/ OCS Enterprise CAL

Individual& Department

Org-Wide Deployment

Specialized Meetings

Formal Meetings

Informal Collabor.

ProfessionalEdition

OCSw/ Enterprise

CAL*

Low-Priced Service “Hosting Fee” Attach to Server

Bundled SKU that includes both OCS Enterprise CAL and Live Meeting (service) Named UserTarget customers:

Larger organizations worried about deployment Organizations that need cross-platform support

Smaller organization or companies with small population of users (departments) that need external meetings will use Live Meeting service at regular prices

FY06 – IC Promo

• RTC Promo operationally simpler given WWLP feedback (SKU based ordering)– Desktop penetration similar to IC promo expanding the low end down to min of 500

LCS 2005 CAL (IM/Pres) L + SA

~$12 / user / yr

FY07 – Starting Oct’06

$34*

Live Meeting - Pro~$235 / user / yr

OCS 2007 Ent CAL (“conf CAL”)

Rights L+SA$37/user/yr

$20*

FY07 RTC Promo vs. IC Promo

FY07 – RTC Promo

OCS 2007 “Call Management CAL”

Rights L only$50/user/yr

Live Meeting Pro ~$235 / user / yr

OCS 2007 Ent CAL (“conf CAL”)

Rights L+SA$37/user/yr

LCS Telephony CALL+SA

NEW: OCS 2007 “Call Management CAL”

Rights L only$50/user/yr

LCS 2005 CAL (IM/Pres) L + SA

~$12 / user / yr

$34 price is Select D pricing for customers not buying Ent CAL Suite. Ent CAL Suite customers only need LM therefore price is lower. LM portion can be filled thru Telco or LAR channel

Promotion Guidelines

• Available October 1, 2006 to June 15, 2007– This promotion is not retroactive to contracts signed before

October 1, 2006

• Minimums:– 5,000 CALs or 75% of org’s desktops which ever is less. – Minimum of 500 desktops

• Available to all Microsoft customers with Select or Enterprise Agreements worldwide

• Promotion does not apply to SPLA, HVMS or Academic Select License and Campus/School Agreement/CASA customers

Summary

• Great value proposition

• Growing market

• Options to suit all customers and Partner