WE RE IN THIS TOGETHER

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5 8% MDC Research, Microsoft Cloud Profitability Scenarios May 2015

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7 Microsoft Azure Enterprise Scenarios Microsoft Azure Enterprise Scenarios Microsoft Azure Enterprise Scenarios Microsoft Azure Enterprise Scenarios Microsoft Azure Enterprise Scenarios Microsoft Azure Enterprise Scenarios Microsoft Azure Enterprise Scenarios Microsoft Azure Enterprise Scenarios Microsoft Azure Enterprise Scenarios Microsoft Azure SMB Scenarios Microsoft Azure SMB Scenarios Microsoft Azure SMB Scenarios Microsoft Azure SMB Scenarios Microsoft Azure SMB Scenarios Microsoft Azure SMB Scenarios Microsoft Azure SMB Scenarios Office 365 Scenarios CRM Online Scenarios CRM Online Scenarios Other Other Other Transform the Datacenter with Microsoft Azure Business Intelligence Identity/Access Management and Information Protection Virtual Desktop Infrastructure Internet of Things: Collect Data and Monitor Assets Internet of Things: Advanced Analytics Enable Application Innovation Advanced analytics and big data Host apps in the cloud with Microsoft Azure Virtual Machines Drive Data Insights with Power BI Backing up your data in Microsoft Azure Host your website in Microsoft Azure Enable a mobile and remote workforce with Enterprise Mobility Suite (EMS) Providing Disaster Recovery with Azure Site Recovery (ASR) Deliver Windows desktops and apps to any device with Azure Remote App Office 365 for SMB and the Enterprise Sales Productivity with CRM Customer Service with CRM Windows Across Microsoft Devices-SMB and Enterprise Hosting Education

8 Customer Needs People work across a variety of devices from different locations and need a consistent, clean, and fast experience Seamless way to work on files with a way to control versions and changes The right people working together in order to get work done Market Opportunity $127B: 2018 projected worldwide Public IT cloud services revenue 1 60% of the Fortune 500 have adopted Office 365 Run-rate Fastest Growing Business: $2.5B 3 3 out of 4 customer deployed by partners 4 Partner Opportunity Deliver an end-to-end solution complete with support, applications, network, and hardware Introduce hybrid scenarios, upgrades, and long-term journey to the cloud options Integrate with LOB apps and leverage APIs to build unique IP Guide organizations through their transformation journey and drive adoption Modern collaboration Personalized insight People centric compliance Worldwide and Regional Public IT Cloud Services Forecast Oct 2014 Doc #251730

9 Partner Revenue Build long-term, value-added services for Office 365 Capitalize on the market opportunity Managed services opportunity by 2018: $256B projected worldwide Public IT cloud services revenue: $127B 2 Run-rate Fastest Growing Business: $2.5B 3 Insights to maximize profitability Pitch incremental project services to light up each Office 365 workload post deployment Add managed services to your Office 365 practice and become your customer s outsourced IT department Create SharePoint templates and extension apps, package as repeatable IP and monetize 1. Markets and Markets : Managed Services Market worth $ Billion by 2018(c) 2014 M2 COMMUNICATIONS IDC Worldwide and Regional Public IT Cloud Services Forecast Oct 2014 Doc # MDC Research, Microsoft Cloud Profitability Scenarios May 2015 Project Services Average Revenue: $2.5K-$15K 4 Margin: 35% Cloud Readiness Assessment Solution Analysis, Scope, & Design Office 365 Set up and Remediation Simple File Server Migration Workflow Creation in SharePoint Yammer Adoption End User Training Managed Services Average Revenue: $5-$15+ per user/per month 4 Margin: 45% Office 365 Tenant Management Reactive Help Desk Support (Office, Skype for Business, Intune, CRM Online) and interface to MSFT. Performance and Application Troubleshooting Desktop & Device Management & Support Reports & View Adjustments Software Asset Management (licensing management & optimization) Security Management & Identity Protection Office Client Connectivity Setup Mobile Device Connectivity & Management Web defense (restricting URLs, phishing malware, spam) Hybrid Environment Support (Basic Infrastructure) VoIP Maintenance Regulatory Compliance via Office 365 Infrastructure Packaged IP Average Revenue: $1-$15 per user/per month 4 Margin: 65% SharePoint-Based Vertical Workflows Middleware for Hybrid Synchronization Industry-specific Workflows Function-specific Workflows (e.g. HR, Procurement) Automated O365 Telemetry (Availability & Performance) Office Connectivity & Other Plug-Ins & Add-ons External Portals for End Customer Information Pre-Configured Dashboards Exchange Online Skype for Business OneDrive for Business SharePoint Online Yammer Based on an average 25 seat deal

10 Partner Revenue Maximise Profitability with Windows and Devices Free upgrade to Windows 10 Device and Accessories Avg. Revenue: $5- $25k Margin: 5% Project Services Avg. Revenue: $2.5-$15k Margin: 35% Deployment Identity, Access & Info Protection Desktop Virtualization Cloud Readiness Managed Services Avg. Revenue: $2.5-$7.5k Margin: 45% Cloud Services Critical Response Support Device Monitoring Anti-virus & Hack Checks Data Breech Monitoring Proactive Backups & Monitoring Perf & App Monitoring Security Management & Identity Protection MDM Network Monitoring Packaged IP Avg. Revenue: $2.5-$7.5k Margin: 65% Automated Monitoring, Alerting & Logging Pre-Configured Dashboards Automated Backups, and Disaster Recovery Stolen Device Location & Geo-Fencing Turnkey BI Portals Owning the device transaction gains a strategic foothold with customers that enables servicing and cloud attach

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17 aka.ms/profitabilitychallenge aka.ms/cloudpartnerprofitability aka.ms/profitabilityscenarios aka.ms/cloud-surestep smartpartnermarketing.microsoft.com

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