Small Business in FY07

Customer Campaigns, Partner Engagement & Opportunities

Microsoft Small Business Team

Therese McGrathDirector, Small Business

Athena ThompsonMarketing Manager,

Small Business

Renato UlpianoBusiness Development Manager,

Small Business

Alex SnelsonMarketing Communication Manager,

Small Business

Bill VlandisSmall Business

Specialist Partner Development

Kylie SummerhayesProduct Marketing Manager,

Small Business Server

Partners Business Groups

Duncan McGilliganProduct Solutions Manager,

Client

Rita AlexandrouProduct Solutions Manager

IW

OEM

Katrina PowersPartner Development Manager,

System Builder Channel

There are 1.2M Small Businesses in Australia, employing 3.7M people.

Small businesses account for 96% of all businesses in Australia, and for 47% of employees / self employed (7.8M all employees).

Employment 30% of people working in small businesses are employers or self employed, while 70% are

employees.

Management of Multiple Businesses 93% of Small business operators run only 1 business

Tenure 13% of Small business have been in business for less than 1 year 34% for 1 to 5 years 20% from 5 to 10 years 33% more than 10 years

Use of Technology 94% are using computers (1.1M PCs), with the likelihood increasing with the size of

business. Ownership of notebooks increased from 33% to 39% last year, increasing from 19% in 2000.

96% have access to the internet, an increase of 10% in 1 year, major uses are email, research, making or receiving payments, online payments

Source: ABS Characteristics of Small Business, April 2004 8127.0. ABS Small Business in Australia, 1321.0 2001 Use of Technology, source Sensis-E-Bus Report, July 04

Why Small Business is Important

Life As A Small Business

• Time

• Multi-tasking

• Administration and bureaucracy

• Keeping on top of things

• Cash-flow

• Product quality

• Customer management

Challenges

• Autonomy

• Flexibility

• Reward

• Pride

• Family time

• Customer satisfaction

Benefits

The Role of IT in Small Business

Source: The Leading Edge: I Am Messagibg Research

A necessary evil

A vital toolTakes up too much time

Confusing

Would rather be doingother things

Limited skills& knowledge

Competitive advantage

Saves time

Improves efficiency – enables you to do other things

Minimalists Pragmatists Integrators Innovators

Imp

ort

ance

of

IT

Necessity

Technology

Adoption

Business Attitudes

Attitude

Towards IT

Limited Operational Highest Expanding

Not Strategic

Functional Tool

Critical to Business Strategic, key to growth

Most Practical, Medium Risk

Cautious, Driven by Suppliers

Risk Averse, Price Sensitive

Most Risk Tolerant

Firms in Segment 10% 39% 25% 26%

Microsoft Small Business in FY07

Customer Campaigns

Customer Campaign Strategy

Compelling customer messaging Broad reach (example: web) Builds on the product stack Focus on offers Partner readiness and connection

Customer Campaign Approach

Life As A Small Business

• Time

• Multi-tasking

• Administration and bureaucracy

• Keeping on top of things

• Cash-flow

• Product quality

• Customer management

Challenges

• Autonomy

• Flexibility

• Reward

• Pride

• Family time

• Customer satisfaction

Benefits

Small Business Customer Campaign Overview

I worry about losing my critical business data

Data backup and security

> Ask for a Technology Assessment

I need to make decisions when out of the office

Access data anytime

Being connected anywhere

My customer contact/sales info is all over the place

Marketing is expensive

A single customer management tool

Market your company, products & services efficiently

I/we need to work more efficiently - and securely

I need to market my business

Help employees work more efficiently

Backup & protect your business information

Market & sell more effectively

First Server Right Server

Mobility

Sales & Marketing

Small Business PC

Extension: Aug-Oct

April-June

Oct-MarchQ2/Q3

Extension: Aug-Oct

Q2: DecJan-JuneQ3/Q4

Customer Pain Point Messaging Timing

Small Business Online Resources

Small Business Centre• Product information, business

templates, tools & tips• Customer campaigns, including

Partner list.• Partner & Solutions finder

Small Business +Membership access to:• Business and software training• 24/7 self-help support• Regular newsletters• FY07+: licensing statements, new

training, partner integration

www.microsoft.com.au/smallbusiness

www.microsoft.com.au/sbplus

Small Business+ Partner Integration

• Find a Small Business Specialist: post-code search

• Under discussion for second half of this fiscal year

Feedback Please!

Customer Campaigns and Partners

Customers want a Trusted Advisor or Partner to advise them and sell to them

Microsoft wants strong partners to fulfil demand Microsoft lead generation via website/call centre Small Business Specialist integration

Our campaigns are designed to help partners turn known customer needs into profitable, long-term business opportunities. Through training/readiness programs, marketing materials, product

solutions and resources. Visit the Partner Marketing Centre at:

http://www.microsoft.com.au/partner

Creating Your Own Campaigns Leverage the professional marketing materials provided to run your own

campaign/s:

1. Identify your customer key needs (pain points)

2. Choose the right Customer Campaign

3. Download and customise with your Company logo and offerings

Example of a Current Customer Campaign

All participating Partners get:– Campaign materials (Direct Mail, Letters, Email, Fax, Call Guide)– Expert online sales training– Online technical resources and training– Downloadable Small Business Technical Assessment Toolkit– Campaign offers & incentives, eg, five assessments & one free copy of SBSR2

Small Business Specialists also get:– Opportunity for campaign leads inclusion– Instructor-led sales and marketing training– Additional sales and marketing materials– Small Business Technical Assessment Toolkit CDs

First Server Right Server

Through-partner campaign materials include:– Presentations– Business letters– Emails– Flyers– Postcards

Partner Campaign Materials

Microsoft Small Business in FY07

Research Insights

Customer Campaign Offers: Why Buy Now?

FY07 Customer Campaigns:– Customer offers for stages of

lifecycle

– To-Partner offers, including IDC Whitepapers, Product Guides, Readiness Training, Technical Assessment Toolkit and Referral offer.

Capitalis Research, Small Business Owners Evaluation of Offers, May 2006

Customer Attitudes to Open License

8 out of 10 are aware of different licensing options with two-thirds specifically aware of MS Open License

Satisfaction and likelihood to repurchase are high amongst Open License Owners

• 46% very satisfied; 49% satisfied• 80% said they would re-purchase

MS Partners and talking to IT employees were the most common ways of hearing about MS Open License

TLE Research, Small Business Owners Evaluation of Open License , June 2006

Licensing and Your Business

John Walter, Director of Sales (Commercial)

Ingram Micro

Leading IT Distribution…

• The world’s largest IT Distributor• 100 countries with 70 DCs• 2005 Revenues = USD28.5 bil• 13,600 associates worldwide• # 1 market position• NYSE listed & # 71 on Fortune 100• Ingram Micro Australia $2bil

revenues & 850 employees• Broadest range of vendor products• Newly launched Solutions Division• Investment in pre-sales technical

resource • Orbital training and education• Licensing Solutions Team of 36

Over 25 Years of Experience in IT Distribution

Australia Wide Sales FootprintTotal Commercial & Solutions Division = 220

PERTH

Office and DC

14

ADELAIDE

9

MELBOURNE

Office and DC

35

CANBERRA

5

SYDNEY

Office and DC

131

BRISBANE

25

RESELLERS

SALES SOLUTIONS REVENUE

VENDORSOLUTIONS

VENDORS

• Server

• Storage

• Networking

• Security

• Software

• Licensing

BDMs• Regional or customer specific segment

• New Business Development

• Collaboration

• Pipeline Management

Account Managers• Account Specific

• Central Point Of Accountability

• Relationship

• Facilitation + Coordination

• Closure

BDMs• Vendor or Technology Specific

• New Business Development

• Collaboration

• Pipeline Management

Solution Architects• Technology Engineering Gurus

• Vendor or Technology Specific

• Solution Design +

Configuration

Vendor Managers• Vendor Specific

• Vendor Evangelists

• Relationship

• Central Point of Accountability

• Facilitation + Coordination

• Marketing, Promotions +

Campaigns Builders

• Systems

Integrator

• Solution

Provider

• Service

Provider

• ISVs

• Consultant

Ingram Micro Licensing Solutions

Converting Box to Licensing

Education – road shows, seminars, Expotech

Pre-sales support – investing in technical resource, MCSE in licensing team

Providing tools – licensing on-line, wall chart, access to pre-sales, renewals tool

How to sell licensing over box

Why Sell Licensing over Box

Better pricing based on volume

Ease of asset management

Software Assurance Benefits (free training)

Ongoing Renewal Business

Freight Costs, Speed to Market, No Inventory

Open Value – Cash Flow, Margins (25% up front), Renewal Business

Case Study

• Reseller - X- Visit to End User (Legal Firm) with reseller to assess needs

- End user consolidating 2 businesses and therefore licensing also

- Gathering of end user reports from Microsoft, preparation of quotations

- Recommended and sold benefits of Microsoft Open Business

- Ensured that the customers legal requirements could be met whilst financial guidelines/timelines adhered to

- Assisted Reseller in closing the business worth $500k over 2 years

Tools to help you sell more licensing

• Intersell – marketing Campaign Manager

• Licensing on-line – configure and order on line

• Renewals on-line – manage and monitor your annuity business

• Wall chart – ready reckoner for licensing

• Automated pricing feeds

• Dedicated Open Value Specialist

• What’s coming….EDI development, process efficiencies, Techlink upgrade

Ingram Micro Licensing Renewals

Intersell

Will we see you in Rio?

Microsoft Small Business in FY07

Questions & Answers

Wrap Up

Microsoft Small Business Contacts

Therese McGrath: theresem@microsoft.com

Athena Thompson: athenat@microsoft.com

Renato Ulpiano: rulpiano@microsoft.com

Alex Snelson: asnelson@microsoft.com

Bill Vlandis: bvlandis@microsoft.com