Small Business in FY07

Customer Campaigns, Partner Engagement & Opportunities

Microsoft Small Business Team

Athena Thompson

Marketing Manager, Small Business

Partners

Bill Vlandis

Small Business Specialist Partner Development

Therese McGrath

Director, Small Business

Renato Ulpiano

Business Development Manager, Small Business

Business Groups

Kylie Summerhayes

Product Marketing Manager, Small Business Server

Duncan McGilligan

Product Solutions Manager, Client

Rita Alexandrou

Product Solutions Manager IW

Alex Snelson

Marketing Communication Manager, Small Business

OEM

Katrina Powers

Partner Development Manager, System Builder Channel

Why Small Business is Important

  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

Life As A Small Business

Challenges

• Time • Multi-tasking • Administration and bureaucracy • Keeping on top of things • Cash-flow • Product quality • Customer management

Benefits

• Autonomy • Flexibility • Reward • Pride • Family time • Customer satisfaction

The Role of IT in Small Business

Takes up too much time Confusing Would rather be doing other things Limited skills & knowledge

Necessity

A vital tool

Competitive advantage Saves time Improves efficiency – enables you to do other things

Attitude Towards IT Technology Adoption Business Attitudes Firms in Segment

A necessary evil

Minimalists Not Strategic Limited Pragmatists Functional Tool Operational Risk Averse, Price Sensitive 10% Most Practical, Medium Risk 39% Integrators Critical to Business Innovators Strategic, key to growth Expanding Highest Cautious, Driven by Suppliers 25% Most Risk Tolerant 26%

Source: The Leading Edge: I Am Messagibg Research

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

Challenges

• Time • Multi-tasking • Administration and bureaucracy • Keeping on top of things • Cash-flow • Product quality • Customer management

Benefits

• Autonomy • Flexibility • Reward • Pride • Family time • Customer satisfaction

Small Business Customer Campaign Overview

Customer Pain Point Messaging First Server Right Server

I worry about losing my critical business data Data backup and security > Ask for a Technology Assessment

Mobility

I need to make decisions when out of the office Access data anytime Being connected anywhere

Sales & Marketing Small Business PC Timing

Extension: Aug-Oct April-June Oct-March Q2/Q3 My customer contact/sales info is all over the place Marketing is expensive I/we need to work more efficiently - and securely I need to market my business A single customer management tool Market your company, products & services efficiently Help employees work more efficiently Backup & protect your business information Market & sell more effectively Extension: Aug-Oct Q2: Dec Jan-June Q3/Q4

Small Business Online Resources

• • • Small Business Centre Product information, business templates, tools & tips Customer campaigns, including Partner list.

Partner & Solutions finder

www.microsoft.com.au/smallbusiness

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/sbplus

Small Business+ Partner Integration

• Find a Small Business Specialist: post-code search • Under discussion for second half of this fiscal year

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

First Server Right Server

 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

Partner Campaign Materials

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

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 Footprint

Total Commercial & Solutions Division = 220 PERTH Office and DC 14 ADELAIDE 9 MELBOURNE Office and DC 35 BRISBANE 25 SYDNEY Office and DC 131 CANBERRA 5

RESELLERS

•

Systems Integrator

•

Solution Provider

•

Service Provider

•

ISVs

•

Consultant SALES SOLUTIONS REVENUE BDMs

• Regional or customer specific segment • New Business Development • Collaboration • Pipeline Management

Account Managers

• Account Specific • Central Point Of Accountability • Relationship • Facilitation + Coordination • Closure

VENDOR SOLUTIONS 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

VENDORS

•

Server

•

Storage

•

Networking

•

Security

•

Software

•

Licensing

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: [email protected]

Athena Thompson: [email protected]

Renato Ulpiano: [email protected]

Alex Snelson: [email protected]

Bill Vlandis: [email protected]