Partner led today and tomorrow

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2 Partner led today and tomorrow This company was built on enabling broad ecosystems and broad partner opportunity. We now need to redefine what it means to build an ecosystem in a mobile-first, cloud-first world. That is what we will continue to push for. Satya Nadella, CEO

3 We Live in a

4

5 The cloud opportunity

6 The cloud opportunity is growing fast $127B United States; 44% Japan; 4% Worldwide Public IT Cloud Services Revenue in Emerging Markets; 21% Latin America; 5% Central and Eastern Europe; 1% Middle East and Africa; 1% Asia/Pacific (excluding Japan); 14% Public IT cloud services spending reached $47.4 billion in 2013, and will grow five times faster than the IT industry as a whole Emerging markets will grow 1.8X faster than developed markets and by 2017 will account for 21.3% of the public cloud opportunity Canada; 2% Western Europe; 29% $256 B The managed services opportunity by IDC study commissioned by Microsoft 2 Markets and Markets : Managed Services Market worth $ Billion by 2018(c) 2014 M2 COMMUNICATIONS

7 Cloud partners are outperforming their peers Partners generating more than 50% of their revenue from the Cloud have: 1.6X the recurring revenue as a portion of total revenue vs. other partners 1.5X the gross profit % vs. their less cloud active peers 1.3X higher new customer ratio vs. other partners *2014 IDC study commissioned by Microsoft

8 The partner opportunity Cloud adoption is achieved when customers use the service on a regular basis, realize the value of the service, and the service becomes critical to their daily lives and work. By focusing on driving adoption you can: Use the cloud to create a continuous revenue stream Increase customer satisfaction, retention, and loyalty Grow and extend your opportunities with customers

9 Cloud partners are evolving their business models Find the right combination of business models for short term profitability and cash flow and longer term valuation Project Services Billable hourly-rate services Work-for-hire and break/fix solutions Deal-by-deal revenue Cloud consulting services TCO/ROI analysis based on Azure Embed Azure in service-line offerings Deliver high-impact sales scenarios Managed Services Billable packaged services Solutions & Services, as a service Ongoing annuity IP Services Value based, unique UP Packaged Product Services Valuation This module provides Microsoft s suggested approach for informational purposes only. Microsoft makes no warranties, express, implied or statutory as to the information in this module. Results may vary.

10 Why Microsoft Accelerate your business FASTER

11 The Microsoft hybrid advantage Microsoft offers a comprehensive, differentiated suite of cloud services that customers want and trust. With these services, you can streamline your offerings across a platform that provides customers choice and flexibility to solve their business challenges and achieve real outcomes. Source: Microsoft

12 Your Cloud Journey 1 Getting Started? Support Product Info Case Studies 2 Grow Your Business Community Whitepapers Key Resources Learning Paths Sales & Marketing Tools 3 $ Optimize Your Business

13 Thank

14 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 presentation. 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.

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