The ISV Advantage: Partnering With Microsoft

The Market Is Changing… • Global opportunities and Global competition • Regulatory compliance, with a demand for worldclass security • The rise of the “alwayson, always connected” network • Web-based applications will change the way you do business

Microsoft understands that people are at the center of all business success… • Amplifying the impact of your customer’s people is the key to improving their business results. And yours. • Market change impacts the way your customers:
• Improve operations and reduce costs • Create innovative products and services • Develop profitable customer relationships • Build connections to partners and supplier

No matter how the market changes, Microsoft is dedicated to helping our partners be the most profitable in the industry – • The largest Market Opportunity for software developers in the industry The most innovative, robust and integrated Platform for partners to build upon A comprehensive set of investments in the partner channel through a Partnership that provides you with the technical, development, marketing and sales tools you need to increase your business potential

The combination of these three elements helps ISVs deliver profitable solutions for the People-Ready Business

No matter how the market changes, Microsoft is dedicated to helping our partners be the most profitable in the industry –

The Market Opportunity

Through the People-Ready Business initiative, Microsoft is developing products designed specifically to address the business needs of people within an organization. Products that give our partners new opportunities to deliver compelling solutions based on the roles that their customer’s people play. Whether it’s the CTO responsible for driving down costs within his IT infrastructure, the Sales Manager who needs to enable a mobile sales force, or the HR director who wants to provision new employees using only one system, people are at the center of all business success. And amplifying their impact is the key to improving your customer’s business results. And your own. By moving from a product/feature discussion to holistically addressing customer pain points, Microsoft is delivering on a compelling vision that provides you with a new opportunity to talk to your customers about their specific business challenges. And as we do, your market opportunities continue to grow.

Better Products, Bigger Markets –
With the launch of Windows Vista and Office 2007, partners can leverage the biggest product introductions in Microsoft’s history to develop new, improved solutions that take full advantage of the latest technical innovations and the largest installed customer base in the industry • Industry forecasts estimate more than 300 million Windows Vista equipped PCs will ship within the first 24 months • The installed-base upgrade forecast is approximately 200 million PCs • The introduction of the new operating system and productivity suite will spark an Enterprise investment cycle

Winning the Web –
Our partners have achieved unprecedented momentum in developing for the Web. From developer education to hardware adoption, recent gains represent the success of our products, our services and our partners. • Globally, the number of .NET developers has increased 7% in just the past year. In the same timeframe, the number of Java developers has decreased 3% - Source: Global Developer Tracking Pulse Study (2006) • Microsoft’s Server market share has consistently increased over the past five years, by a total of 10% - Source: IDC Server Tracker, April 2006 • In the database market, Microsoft is outselling both IBM and Oracle combined. Enterprise market share also leads the competition, with SQL Server capturing 34% of the market - Source:

And The Market Continues To Grow –
Based on our analysis over the past several years, working on the Microsoft platform has been the most financially beneficial option for ISVs • Microsoft Partners saw a 14% average increase in revenue between 2003 and 2005, compared to only a 6% increase for those developing for mainframes, or 10% for Unix developers • .NET-only developers saw an average revenue increase of 10%, as compared to only 4% for J2EE developers And the opportunities don’t stop there… • IDC forecasts Windows Vista adoption at 56% of all PCs by the end of 2009, which – when combined with a 9.9% growth rate in PC sales year over year – makes for a lot of users looking to take full advantage of their new systems by buying your new software

The Platform

Superior Platform

Enabling An Incredible User Experience Unequaled Platform Integration A Rich Development Framework

Increase your productivity and reduce your time-to-market by taking advantage of the improved, streamlined programming capabilities within .NET Framework 3.0 • With Windows Presentation Foundation, you can create a single user interface that can be accessed from either the client or the Web • Utilizing Office 2007 as the natural, robust interface for independent software solutions will free ISVs to focus their efforts on improved functionality and customer value while providing a much broader opportunity for license sales • Windows Communication Foundation enables you to build secure, reliable service-oriented applications that integrate across platforms and interoperate with existing investments, allowing for easier connection between disparate systems.

Embrace the power of true enterprise readiness with the industries only technology platform capable of delivering the scalability, data integration, security and information access your customers demand. • Based on a uniform XML format, users can now work with several components of the Office 2007 suite, in combination with Microsoft Dynamics modules, SQL Server and Windows Server to provide unprecedented data access, analysis, reporting and distribution. • New interoperability capabilities between programs such as Windows Sharepoint Services, Windows Workflow Foundation and Groove 2007 allow for extensive content management, protocol application, and team collaboration. • Improved search functionality built into Windows Vista and Exchange Server 2007, such as allowing administrators to search multiple email boxes, increases the visibility an organization can have into the data that resides within their network.

Take advantage of the latest presentation and functionality enhancements within Microsoft software to improve your customers access to, and interaction with, your own solutions • Create unbelievable user interface experiences with the WinFX Windows Presentation Foundation. • Through the improved user interface of the Office 2007 suite, customers will have a much easier time creating and editing dynamic, information rich reports and presentations. • Security has been improved in all facets of the Microsoft platform, from User Account Protection build into Windows Vista, to the security configuration and identity management capabilities of Windows Server, to the improved password and identity protection offered by WinFX InfoCard

Developing software solutions based on the Microsoft Platform is a profitable opportunity Microsoft OS ISV Partners achieved: • Revenue and Customer Growth • Substantially Bigger Deal Potential • Shorter Sales Cycles • Faster Implementation Times
Revenue Growth (%) Customer Growth (%)

Microsoft Partners with ISV/Software Solutions Competency Benchmark Companies without ISV/Software Solutions Competency
Deal Growth (%) Sales Cycle (month) Implementation Time (month)

Company Business Deal Performance Velocity Execution

25% 11%

24% 13%

9.1 12% 0.7% 6.1 3.6

7.1

IDC ISV Partner Business Performance Study, June 2006 US & UK Companies with 10+ Employees

Microsoft Partnership

The Value of the

The Value of The Microsoft Partnership
Why Partner with Microsoft? Because we’re committed to helping you realize your business potential. From the very beginning, we’ll work with you to help you adopt and incorporate our technology with your own, so you’re sure to realize all of its benefits. We’ll also work with you during all stages of development, testing, launch and product marketing. We’ll be there to support your customers, and we’ll help you drive the next generation of your business, making sure our partnership is a long and profitable one.

The Value of The Microsoft Partner Program
The Microsoft Partner Program (MSPP) is the best way to engage with Microsoft for a wide range of tools, benefits and services. It can help you move your business forward by helping you: • Set yourself apart from the competition • Pursue more deals and bigger opportunities • Lower your cost of doing business • Improve your customer satisfaction
DEVELOP
INNOVATIVE SOLUTIONS

SUPPORT PLAN MY BUSINESS INCREASE
MY CUSTOMERS
MY OPPORTUNITIES

CLOSE
MORE SALES

Microsoft Partner Program for ISVs

The Power of The ISV/Software Solution Competency
The ISV/Software Solutions Competency offers powerful resources designed to have an immediate impact on your business, helping you make the most of every business day.
DEVELOP
INNOVATIVE SOLUTIONS

ISV Advisory Service Technical Briefings MSDN Subscription Readiness Training MSPP Logo Program Technical Demonstration Tool Kit Channel Builder/Solution Profiler ISV Telesales Service International ISV Assistance Pre-Sales Tech & Competitive Hotline ISV ROI Calculator Solution Selling Customer Satisfaction Index Business Critical Support Windows Reporting Tool Technical Service Coordinator

• Improve employee productivity and revenue potential by expanding their understanding of Microsoft technologies • Reduce costs and increase your revenue potential by accessing Microsoft’s comprehensive marketing and lead generation tools • Convert more leads into sales with the help of Microsoft’s sales support initiatives

INCREASE
MY OPPORTUNITIES

CLOSE
MORE SALES

SUPPORT
MY CUSTOMERS

• Continue to support your customers and grow your business with customer insight tools and technical support for critical issues

ISV Competency Partner Profitability
• Partners who become certified within the ISV/Software Solutions Competency have been proven to achieve:
– – – – Higher revenue Stronger customer growth Shorter sales cycle Increased per-employee revenue generation
Revenue Growth (%) Customer Growth (%)

Microsoft Partners with ISV/Software Solutions Competency Benchmark Companies without ISV/Software Solutions Competency

Sales Cycle (Months)

Revenue per Employee

25% Company Business Deal Profitability Performance Velocity Execution 16%

24% 13% 6.1

$139,100

$116,300

7.4

IDC ISV Partner Business Performance Study, June 2006 US & UK Companies with 10+ Employees

The Value of The Microsoft Partnership
Microsoft is committed to helping our Partners deliver profitable solutions that meet the demands of today’s business customer. Combining our market potential, partnership opportunities and technology leadership with your products and services allows you to create profitable solutions for the people-ready business, enabling your customers and their employees to easily work together to make informed, timely decisions that quicken the pace of innovation and open the door to new opportunities.