Microsoft Financing – The Smarter Way to Sell IT

Annuitize Customer Base

Increase Deal Size

Close Deals Faster

GrowCash Flow

Win More Deals!

Why Offer Financing?

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Captive Financing

3 |

The Partner Value

*FY09 billed revenue; 12 products versus 9 products

• Extend relationship beyond CIO• Become a business partner at the executive level

versus a technology partner at the IT level• Offer your customers more options

Be the Trusted Advisor

• Accelerate and shorten the sales cycle• Preserve price points and reduce discounting• Annuitize customer base

Close Deals Sooner

• Sell more of the stack – 33% more add on products*• Remove the focus from price during negotiationsIncrease Deal Size

• Get paid for the full amount of the deal up front• Grow cash flowGet Paid Faster

• Maximize their cash flow with predictable payments over time

• Meet all their IT needs within budget and plan for long-term investments

• Flexible payment options • Maximize ROI and conserve capital• Low minimum loan amounts; no maximum

In the Voice of the Customer“When we approached Microsoft Financing, we were impressed by the

flexible payment options it offers. We were able to come to an arrangement that made excellent financial sense for IMG Group. Financing our EA was quick and easy.”

Ian Carter, IT Director, IMG Worldwide 

Why Customers Choose Microsoft Financing

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Financing Made Easy

Software License Financing

Total Solution Financing

Flexible Solutions

5 |

Simple

• Easy online application and tools

• Simple lending process

• Low minimum loan size; no maximum

Easy

• Quick turnaround• Terms from

24-60 monthsAffordable

• Total cost of ownership known up front

• Competitive fixed rates

• Customized payment options

Match Benefits to Payments

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Years

$1,000,000

$800,000

$600,000

$400,000

$200,000

U.S.

Do

llars

Opportunity to add or upgrade products and services$1,000,000

Total IT Needs

$30,650Per Month($367,800 Per

Year)

$30,650Per Month($367,800 Per

Year)

$30,650Per Month($367,800 Per

Year)

$500,000 Annual IT Budget

Over Budget: $500,000

One-time cash-based transaction

Under Budget: $132,200Using Microsoft Financing 3-year term

Microsoft Financing helps qualified customers• Get the IT they need to

achieve business goals• Manage software,

services, and hardware as one investment

• Align IT benefits with economic outlay

• Enjoy a fast, easy, and responsive lending process

Year 1 Year 2 Year 3

$850,000 Total Investment

Example

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A Customer Challenge

New Microsoft CRM solution

New e-commerce solution using Microsoft GP

Multiple systems slowed

productivity

Rapid growth• Strained older,

disconnected systems

Employees juggled between systems• Contact

management• Custom order

entry• Custom service

request

Due to these growing pains, the customer needed to…• Simplify and

become more efficient in the sales process

• Handle more leads and turn sales faster

• Update contact management system

They also desired to…• Expand service

internationally • Become more

approachable• Handle multiple

currencies

Customer profile• Largest real

estate training and coaching company in North America

• 180 employees at HQ

• Steady growth over past 10 years

“Both projects were critically important to the company, but it looked like we would either have to put off the CRM project for a year or two or finance both systems.”

~ CFO

The Customer Choice

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• Significant financial investment• Tough economic times

• No down payment required• Customized payment options• Payment terms range from 24-60 months

Partner introduced Microsoft Financing

• Ability to conserve capital and line of credit• Competitive rate• Easy to work with• Quick turnaround

Chose Microsoft Financing due to…

Planned a traditional bank

loan

The Results

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“We anticipate saving between $250,000 and $500,000 in the first year of utilizing the CRM solution... Microsoft Financing enabled us to do more and do it sooner.”

~CFO

“We were able to reduce the financing of two very large, complex projects to a few sheets of paper… the whole process was very straightforward.”

~CFO

Fast, simple, and easy process• Minimized the customer’s time• Propelled the projects into

development

By leveraging Microsoft Financing, they.…• Implemented two business-critical systems

in seven months• Developed CRM and e-commerce systems

in tandem to speed time-to-business value• Realized significant benefits immediately• Preserved its credit line and capital for other

core business needs

Customers• Receive one invoice from Microsoft• Own their solution upfront • Have flexible payment options• Preserve financial resources

Sample Transaction

Microsoft software $50,000

Partner services$35,000

Training$15,000

Microsoft invoice$100,000

Paid directly to the Partner(s)

How Does it Work?

Partners• Provide more options to customers• Overcome IT spending objections• Receive funds upfront• Get paid faster

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0% 10% 20% 40% 60% 80% 100%Determine best customer fit

Qualify lead/ opportunityAsk questions to prescreen for Microsoft Financing

Know why your customer is buying and establish relationship with powerPresent payment options to CFO

Develop a solution aligned with business painSubmit credit application

Define the business changePresent monthly payment quote

Conduct negotiations and finalize contract

Finalize deployment plan and execute

Ideal Microsoft Financing

Introduction

Late Microsoft Financing

Introduction

Maximize the impact of Microsoft Financing!

Introduce Early in Sales Process

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Prospect Qualify Develop Solution Proof Close Deploy

• Close the deal and submit invoice

to Microsoft Financing

• When your customer signs and returns final loan documents, you get paid

Step 4

Return Documents –

Get Paid

Step 3

• Submit your customer’s credit application online

• You, the Partner, typically receive a decision within 24 hours

Step 2

Prepare Your Financing Proposal

• Size the deal and use the payment calculator

to determine your customer’s estimated monthly payment

Step 1

Calculate Estimated Payments

Complete a partner application at www.microsoftfinancing.com to begin submitting transactions

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Submit Customer

Credit Application

• Deliver your financing proposal – Microsoft Financing sales professionals are available to assist you in crafting a tailored structure

Complete a Deal in Four Easy Steps

Credit Guidelines

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• 2 years+ time in business• Profitable as a business• No bankruptcies, tax liens, or

judgments

Ask questions to prescreen for Microsoft Financing!1. Have you been in business more than

two years?2. Do you show a profit from operations? 3. Do you have any bankruptcies, liens,

or judgments?

Probe early to ensure financing is an option

Easy to Use Partner Website

• Online payment calculator

• Online proposal tool• Credit application • Sales and marketing

collateral• Training materials• Promotions

“One-stop-shop” onlinefinancing destination

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All tools available at www.MicrosoftFinancing.com

Easy to Use Online Calculator

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Online calculator provides a quick and easy method for estimating loan payments for software, services, and hardware.

• Standard option – calculates payments on loans where all funds are billed upfront

• Advanced option – calculates loans with spread payments or annual billings, such as Software Assurance

• Promotional offers – if applicable to your loan term, the calculator will factor in promotional rates

• Estimated rates for terms that range from 24-60 months

Resources

• Microsoft Partner site for Microsoft Financing: www.microsoftfinancing.com

• Microsoft Financing Customer site: www.microsoft.com/financing

• Microsoft Partner Network site: http://partner.microsoft.com/financing

• E-mail: MSFsales@microsoft.com

Get Started Today!

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Get Started

• Register to use Microsoft Financing at www.microsoftfinancing.com

• Use the online tools to quote a financing offer on every deal

Annuitize Customer

Base

Get PaidFaster

Become a Trusted Advisor

Grow Reven

ue

Offer Financing with Every Proposal

Benefits

• Be the trusted advisor• Shorten the sales cycle• Preserve price points• Increase deal size• Offer your customers

more options

© 2009 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 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 MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.