Microsoft | EMEA Channel Partner Conference 2014

Channel IncentivesMicrosoft | EMEA Channel Partner

Conference 2014

Let’s Break New Ground Together.

Electronic Software Delivery (ESD)

Peter Davidson & Martina Ebbs / Deirdre Rusk

Microsoft | EMEA Channel Partner Conference 2014

Channel Incentives

Contents

What is ESD?

Benefits of ESD

ESD go-to-market models

ESD business in FY14

How a Distributor adds ESD

Microsoft | EMEA Channel Partner Conference 2014

Channel Incentives

What is ESD?

Electronic Software Delivery (ESD) is the secure delivery of a product key directly to consumers and small businesses via retailers and resellers. Simply put, it’s just another way to sell FPP.

Definition

• Secure digital delivery of licensed product pin, key, token, content or bits

• Product/Key is live/usable when delivered

Features

• Email or Online ads drive customer demand• Customer can instantly download / activate

software after purchase (24x7)

Experience

• Leverage broad line distribution to activate and enable the breadth retail and reseller channels to take advantage of ESD for all Microsoft products where available

Strategy

Office 365 • Office 365 Home Premium• Office 365 University• Office 365 Small Business Premium

Office Suites• Office 2013 Home & Student• Office 2013 Home & Business• Office 2013 Professional• Office for Mac 2011

Office 2013 standalone applications• Word 2013• Excel 2013• PowerPoint 2013• OneNote 2013• Outlook 2013• Publisher 2013• Access 2013

Windows 8.1• Windows 8.1 Pro Pack• Windows 8.1 Full Version• Windows 8.1 Pro Full Version

Additional products offered through ESD:• SharePoint• InfoPath• Visio• Map Point• Streets/Trips• AutoRoute• Xbox Live*• Skype***Regional RSM support for Xbox must be provided** Coming Soon

What We Electronically Distribute

Microsoft | EMEA Channel Partner Conference 2014

Channel Incentives

Benefits of ESD

ESDElectronic Software Delivery

Digital Distribution

• Online assortment

• In-store assortment

• Reduced inventory costs and shrink

• Real time transaction, no inventory management required

• Broader SKU assortment

• 24/7 product availability & customer support

• Supports targeted marketing tactics (CRM) and additional sales

• Green fulfillment (eco-friendly)

• Renewal tracking (for Office 365)

• Good motion for Tech bench solution/ install service

Microsoft | EMEA Channel Partner Conference 2014

Channel Incentives

ESD Go-to-Market Models

Referral ModelAttributes Desired outcome

• Light-touch, no integration with reseller

• Reseller purchases keys on behalf of customer

• Keys shipped electronically via email either directly to customer from Disti or Disti sends keys to Reseller to administer to customer

• Reseller Reach

Co-Brand ModelAttributes Desired outcome

• White label eCommerce platform

• Consistent Customer UX

• Reseller Reach

Data Services ModelAttributes Desired outcome

• Full integration between Disti and Retailer/MNA

• Heavy investment

• Ideal Customer UX

• Managed RetailReseller Customization

Reseller Reach

Referral Model Co-Brand Model Data Services Model

Distributor Distributor Distributor

Reseller

Disti Web Store

Disti Hosted Reseller

Web storeReseller Site

End custome

r

ResellerWeb store

LEGEND Purchase Payment Data/Keys

End custome

r

End custome

r

1

2

3

1 2 3

Start with:

Expand with:

Microsoft | EMEA Channel Partner Conference 2014

Channel Incentives

The ESD Business in FY14

ESD SKU Mix by Revenue

ESD Markets Live

Additional ESD Markets Targeted in FY14

Where We Are In Market

17,691

Serie

s1

0

2

4

6

8

10

12

14

16

EMEA Resellers Transacting ESD

132%311,853199%

YoY Revenue Growth

UnitsSold

YoY Reach Growth

Microsoft | EMEA Channel Partner Conference 2014

Channel Incentives

How a Distributor Adds ESD

• Channel Incentives • GRS Survey/ COS• QBR/MBU• Exec Engagement• WPC

• Offers and Promotions

• Tele sales and CRM Systems

• Campaigns Management

• Launch Excellence• Assortments and

merchandising

• Launch momentum • Agreements/SLA signed

• Launch momentum • Reach targets for

breadth resellers filled

• Partner Business Planning

• GTM Strategies Defined and Executed

Plan Service & Retain

SellGenerate Demand

EnableRecruit

Part

ner

Life

cycl

e

Mgm

t

Strategy & AlignmentSTART-Week 4

Assess & Secure CommitmentWeeks 5-13

Onboarding & Launch

Weeks 14-24

Manage & Monitor

ONGOING

Distribution Onboarding Model

Commercial Distribution Rights

Technical Readiness

Execution Readiness

Marketing Capability

Customer Relationship Management (CRM) & Business Development Capability

Financial Readiness

ESD Criteria for Commercial Distribution

Microsoft | EMEA Channel Partner Conference 2014

Channel Incentives

Click to edit Master title style

ESD Commercial Operations Support

Microsoft | EMEA Channel Partner Conference 2014

Channel Incentives

Alignment with CFPP Business• Contract• Channel Incentives• Query support and management – CLT is Live!• Partner Account Management – P&F OAM

Query management team established• Process improvements• Training, FAQs in place to support

Support growth in Digital business• Team and processes in place to support growth

and expansionOperational support

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Channel Incentives

Provide your feedback on the sessions through the Conference App and be eligible to win one of five Nokia Windows Phone

8

Visit the Conference App now at partnerconferenceapp.com

.

ALL Partners who provide feedback through the Conference App will receive a one year subscription to Office 365 Home Premium

Let’s Break New Ground Together.

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Channel Incentives© 2014 Microsoft Corporation. All rights reserved. Microsoft, Windows 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 presentations. 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 CONFIDENTIAL – FOR PARTNER USE ONLY. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Thank you.