Increase Your Profitability Potential. Christian Longstaff ISV Channel Audience Manager Microsoft Australia http://blogs.msdn.com/chlong

My Agenda Are you an ISV? Why join the Microsoft Partner Program? How to become a Microsoft Partner Some advice on Successful Partnering

Are you an ISV?

Why join the Microsoft Partner Program?

How to become a Microsoft Partner

Some advice on Successful Partnering

Are you an ISV? ISVs are organisations that exclusively develop software or software solutions instead of being part of a computer system or being a hardware manufacturer. At least 30 percent of the company’s overall revenue comes from the sales of licenses of that solution. ISVs integrate Microsoft licensed products with their application in any of the following ways: By integrating a Microsoft licensed product into the ISV’s application code; By including a Microsoft licensed product along with the ISV’s application on the installation media; or By pre-installing a Microsoft licensed product on a computer system that is part of the unified solution

ISVs are organisations that exclusively develop software or software solutions instead of being part of a computer system or being a hardware manufacturer.

At least 30 percent of the company’s overall revenue comes from the sales of licenses of that solution.

ISVs integrate Microsoft licensed products with their application in any of the following ways:

By integrating a Microsoft licensed product into the ISV’s application code;

By including a Microsoft licensed product along with the ISV’s application on the installation media; or

By pre-installing a Microsoft licensed product on a computer system that is part of the unified solution

Microsoft & Partners 95% of Microsoft revenue coming from Partners >100M investment every year 400,000 Partners worldwide 10,000 Gold Partners 40,000 Certified Partners 350,000 Registered Partners

95% of Microsoft revenue coming from Partners

>100M investment every year

400,000 Partners worldwide

10,000 Gold Partners

40,000 Certified Partners

350,000 Registered Partners

Expand skills Win more business. Retain your expertise. Train your staff. Build on your reputation. Increase opportunities Sales training benefits Profiles of your business, services, and solutions Marketing resources Promotion of your solutions Close more sales Recommend solutions to customers and prospects Pre-sales tech support in competitive situations Supporting customers Access to experts to resolve support issues Advanced technology certifications . Get the most out of your relationship with Microsoft. https://partner.microsoft.com/ Australia Promise of Partnership THE VALUE OF PARTNERING

Expand skills

Win more business.

Retain your expertise.

Train your staff.

Build on your reputation.

Increase opportunities

Sales training benefits

Profiles of your business, services, and solutions

Marketing resources

Promotion of your solutions

Close more sales

Recommend solutions to customers and prospects

Pre-sales tech support in competitive situations

Supporting customers

Access to experts to resolve support issues

Advanced technology certifications

Promise & Levels of Partnership

Achieving the ISV/Software Solutions Competency Test your solution. Multiple tests to choose from Submit three customer references for your solution. Pay the annual Microsoft Partner Program fee to become a Certified or Gold Certified Partner with the ISV/Software Solutions competency.

Test your solution. Multiple tests to choose from

Submit three customer references for your solution.

Pay the annual Microsoft Partner Program fee to become a Certified or Gold Certified Partner with the ISV/Software Solutions competency.

Empower - your path to becoming a Microsoft Partner ($875AUD for a 12 month subscription as of 25 October 2007)

Empower Benefits One MSDN Premium Subscription Media Kit and five (5) user licenses ISV Advisory Service (10 Hours) Internal-use software licenses – Vista & Office Software license and Client Access Licenses (CALs) for: Windows Server 2008 (Standard or Enterprise Edition) Microsoft Exchange Server 2007/2003 (Standard or Enterprise Edition) Microsoft SQL Server 2005 (Standard or Enterprise Edition) Microsoft Office SharePoint Server 2007 or 2003

One MSDN Premium Subscription Media Kit and five (5) user licenses

ISV Advisory Service (10 Hours)

Internal-use software licenses – Vista & Office

Software license and Client Access Licenses (CALs) for:

Windows Server 2008 (Standard or Enterprise Edition)

Microsoft Exchange Server 2007/2003 (Standard or Enterprise Edition)

Microsoft SQL Server 2005 (Standard or Enterprise Edition)

Microsoft Office SharePoint Server 2007 or 2003

Empower or Action Pack Empower - Development Focus $875 (as of Oct 07) MSDN Visual Studio Advisory Hours Action Pack - Business Focus $699 (as of Oct 07) Marketing tools Sales tools

Empower - Development Focus

$875 (as of Oct 07)

MSDN

Visual Studio

Advisory Hours

Action Pack - Business Focus

$699 (as of Oct 07)

Marketing tools

Sales tools

ISV Profitability Customers Characteristics of Top Performers They Rely on New Customers Focus on New Software Development Narrow their Technology Focus Successfully Partner with the Ecosystem Company Performance Net Profit Margin (%) Cash Flow from Ops (%) Revenue Growth (%) Gross Profit Margin (%) Business Velocity Change in Market Share (%) Deal Growth (%) Customer Growth (%) Deal Execution Average Deal Size ($/deal) Sales Cycle (mo) Implementation Time (mo) Partnering Revenue per Employee ($/emp) Productivity Innovation

Characteristics of Top Performers

They Rely on New Customers

Focus on New Software Development

Narrow their Technology Focus

Successfully Partner with the Ecosystem

ISV/Software Solutions competency A recent IDC study* compared ISV-competency partners against a benchmark group of non-Windows ® ISVs. *Commissioned by Microsoft, IDC’s Microsoft ISV/Software Solutions Competency: Partner Pathway to Business Performance , Mathew Lawton and Stephen Graham, October 2006. Outperform Industry Benchmark in 10 of 11 KPI’s Industry Benchmark Companies not on Windows and not in MSPP Microsoft Competency Partners Industry Benchmark Companies on Windows and not in MSPP Customer Growth (%) 24% 13% 19% Implementation Time (mo) 3.6 7.1 6.2 Sales Cycle (mo) 6.1 9.1 7.1

A recent IDC study* compared ISV-competency partners against a benchmark group of non-Windows ® ISVs.

Outperform Industry Benchmark in 10 of 11 KPI’s

ISV-competency partners outperformed the benchmark group. Through their ability to: Retain more experienced and better trained developers. Spend less money on research and development. Put more time toward developing new products, and spend less time maintaining existing ones. Maximize their revenue, customer, and deal growth.

Through their ability to:

Retain more experienced and better trained developers.

Spend less money on research and development.

Put more time toward developing new products, and spend less time maintaining existing ones.

Maximize their revenue, customer, and deal growth.

ISV/Software Solutions Competency MSDN Demo Showcase for People-Ready Business Core and Enhanced New Technical Evangelism ISV Advisory Services ISV Buddy ISV Royalty ISV Telesales Service Solution Finder ISV ROI Calculator Competitive Sales Assistance Windows Error Reporting Additional Tech Svc Coordinator hours Market Research for ISVs INNOVATE ON International ISV Assistance Marketing Skills Channel Building ISV Business Builder Microsoft Finance DELIVER INNOVATIVE SOLUTIONS INCREASE OPPORTUNITIES CLOSE MORE SALES SUPPORT CUSTOMERS

ISV Partner Program Benefits Product Roadmaps Product Architectures (S+S) Software Development Strategies Software IP Protection InnovateOn Competitive Analysis Innovation (Emerging Product Areas) Product Development Support Product Development Training Code Samples Shared Source/Open Source Libraries Development Community Links Endorsed 3 rd Party Dev/Test Resources Software Dev Licenses, Software Eval Licenses to Distribute ISV solution Metro Early Adopter Windows Live Quick Start IDC Research Software Distribution Strategies Software Pricing/Licensing Strategies Hiring/Comp Strategies Software M&A Strategies Business Analyst Reports GTM Strategies Emerging Opportunity Areas Business Models Customer Adoption Examples Geo/Emerging Business Threats Case Studies P2P Opportunities Communities Partner-TV Microsoft Finance Co-Marketing Funds Product Catalogs Campaigns MS is Driving Marketing Training Press Support Demo Development Support Case Study Dev Support MS Events Calendar (corp/reg) Pre-Sales Tech Support Sale Kit Support Sales & Marketing Communities Webcasts/Podcasts ISV Royalty Marketplaces Solution Profiler SPLA Channel Builder Cross Border Press/Analyst Showcase apps Business Technical Sales & Marketing Blogs

Product Roadmaps

Product Architectures (S+S)

Software Development Strategies

Software IP Protection

InnovateOn

Competitive Analysis

Innovation (Emerging Product Areas)

Product Development Support

Product Development Training

Code Samples

Shared Source/Open Source Libraries

Development Community Links

Endorsed 3 rd Party Dev/Test Resources

Software Dev Licenses,

Software Eval Licenses to Distribute ISV solution

Metro Early Adopter

Windows Live Quick Start

IDC Research

Software Distribution Strategies

Software Pricing/Licensing Strategies

Hiring/Comp Strategies

Software M&A Strategies

Business Analyst Reports

GTM Strategies

Emerging Opportunity Areas

Business Models

Customer Adoption Examples

Geo/Emerging Business Threats

Case Studies

P2P Opportunities

Communities

Partner-TV

Microsoft Finance

Co-Marketing Funds

Product Catalogs

Campaigns MS is Driving

Marketing Training

Press Support

Demo Development Support

Case Study Dev Support

MS Events Calendar (corp/reg)

Pre-Sales Tech Support

Sale Kit Support

Sales & Marketing Communities

Webcasts/Podcasts

ISV Royalty

Marketplaces

Solution Profiler

SPLA

Channel Builder

Cross Border

Press/Analyst

Showcase apps

Principles of Successful Partnering

The Partner Value Proposition Summary Slide Radar Leverage Opportunity Visibility Pipeline / Forecast Customer Insight Competitive Feedback Influenced Revenue Scale / Reach P2P Connections Momentum Competitive Advantage Brand Credibility

Opportunity Visibility

Pipeline / Forecast

Customer Insight

Competitive Feedback

Influenced Revenue

Scale / Reach

P2P Connections

Momentum

Competitive Advantage

Brand Credibility

Know the Microsoft Organisation (general overview)

Like Microsoft, be Product Centric Align with product groups (talk in $’s) Align with our customer campaigns Understand what is strategically important in any given fiscal year or part of Master Microsoft’s “alphabet soup” Know the organisation Keep your PAM updated with what you are doing if you have one Treat Microsoft as a ‘customer’

Align with product groups (talk in $’s)

Align with our customer campaigns

Understand what is strategically important in any given fiscal year or part of

Master Microsoft’s “alphabet soup”

Know the organisation

Keep your PAM updated with what you are doing if you have one

Treat Microsoft as a ‘customer’

Like Microsoft, be Customer Focused Know the account teams Understand and use the resources available Customer comes first (CPE not PCE) Help Microsoft enhance their product pitches and customer relations Articulate your [direct / indirect] influence on Microsoft licence revenue Contribute effectively Consistently help Microsoft sell product Play where the market action is most intense Navigate the field and work dynamically with it Focus on efficiency (lower cost of sales) and efficacy (build co-branding, satisfy customers)

Know the account teams

Understand and use the resources available

Customer comes first (CPE not PCE)

Help Microsoft enhance their product pitches and customer relations

Articulate your [direct / indirect] influence on Microsoft licence revenue

Contribute effectively

Consistently help Microsoft sell product

Play where the market action is most intense

Navigate the field and work dynamically with it

Focus on efficiency (lower cost of sales) and efficacy (build co-branding, satisfy customers)

Avoid Common Pitfalls Do not tell Microsoft you can do it all Don’t be another XYZ partner Do not spread your messaging in too many markets, but profile yourself in 1-2 verticals Do not change your messaging to Microsoft, or your customer’s, too often Don’t have “uneducated” people represent your company to Microsoft

Do not tell Microsoft you can do it all

Don’t be another XYZ partner

Do not spread your messaging in too many markets, but profile yourself in 1-2 verticals

Do not change your messaging to Microsoft, or your customer’s, too often

Don’t have “uneducated” people represent your company to Microsoft

ISV Royalty Program Overview The ISV Royalty Licensing Program offers Independent Software Vendors (ISVs) a convenient way to integrate Microsoft software applications into your software business solutions, to replicate the solution, and to distribute a fully licensed solution to customers.

The ISV Royalty Licensing Program offers Independent Software Vendors (ISVs) a convenient way to integrate Microsoft software applications into your software business solutions, to replicate the solution, and to distribute a fully licensed solution to customers.

Benefits Earn 25 Partner Program Points

Sample of Microsoft Products Available** Microsoft BizTalk Server Microsoft Commerce Server Microsoft Dynamics CRM Microsoft Exchange Server Microsoft Host Integration Server Microsoft Internet Security and Acceleration Server Microsoft Office Professional Plus Microsoft Office SharePoint Server Microsoft Project Server Microsoft SQL Server Microsoft Virtual PC Microsoft Virtual Server Microsoft Visual Studio Microsoft Windows Terminal Server Client Access Licenses (CALS) only **List is a sample only and current as of 1 May 2007

Microsoft BizTalk Server

Microsoft Commerce Server

Microsoft Dynamics CRM

Microsoft Exchange Server

Microsoft Host Integration Server

Microsoft Internet Security and Acceleration Server

Microsoft Office Professional Plus

Microsoft Office SharePoint Server

Microsoft Project Server

Microsoft SQL Server

Microsoft Virtual PC

Microsoft Virtual Server

Microsoft Visual Studio

Microsoft Windows Terminal Server Client Access Licenses (CALS) only

Requirements

Embedded Maintenance

My Contact Details Christian Longstaff http://blogs.msdn.com/chlong [email_address] +61 2 9870 2894

Appendix

How Partner Points work Qualifying Points: Qualifying Partner Points must be earned to achieve Certified Partner or Gold Certified Partner status. Additional Partner Points Points you earn after you’ve reached your maximum qualifying points. There is no limit to the number of additional points that you can earn. Earning Points Achievement of Microsoft Competencies Achievement of Microsoft professional certifications Obtaining approved customer references Achievement of approved tested products Demonstrating Microsoft sales performance Participation in Customer Satisfaction Index or Metrics that Matter too

Qualifying Points:

Qualifying Partner Points must be earned to achieve Certified Partner or Gold Certified Partner status.

Additional Partner Points

Points you earn after you’ve reached your maximum qualifying points. There is no limit to the number of additional points that you can earn.

Earning Points

Achievement of Microsoft Competencies

Achievement of Microsoft professional certifications

Obtaining approved customer references

Achievement of approved tested products

Demonstrating Microsoft sales performance

Participation in Customer Satisfaction Index or Metrics that Matter too

3 Steps in becoming a Microsoft Partner Step one: become a Microsoft Registered Partner: https://partner.microsoft.com/Australia/40032508 There is no cost to do this and it will enable you to access secure content and training resources on the partner website, as well as subscribing to our regular newsletter. In order to find out more about our local resources for ISV’s, please visit http://www.microsoft.com/australia/partner/isvanddevelopers/default.aspx . Step two: register for Empower: https://partner.microsoft.com/Australia/40011351?PS=3 If you have not completed the development of your application yet, we have a different program to support your development efforts. As a Registered Partner you are able to enrol in the Empower program (12 month subscription for $875AUD). This is a program for partners who are developing a packaged software solution, and require development tools and access to resources to assist them for a period of time until their software is complete, and ready to be tested. At that stage, to progress in the Microsoft Partner Program and become a Microsoft Certified Partner it will be necessary to test your product, and provide some customer references in order to gain a “competency”. If you have completed the development of your application and it is market, proceed to step 3. Step three: become a Microsoft Certified Partner If you have completed the development of your software application you may want to immediately submit it for testing. Full info on the testing and costs is here http://www.veritest.com/lionbridge/en-US/services/outsourced-testing/product-certification-programs/microsoft/ . Having a tested product and supplying customer references will gain you the ISV- Software Solutions Competency and with a competency you are able to become a Microsoft Certified Partner. The link to more information on gaining this competency is located here: https://partner.microsoft.com/global/program/competencies/isvsolutions/40011371 The cost per annum of Microsoft Certified Partner membership is ~$3465AUD. This is membership for a single site – with one set of benefits. You can also register any other sites and they can use the Certified Partner logo too. Details of the benefits are here: https://partner.microsoft.com/global/program If you have any further questions about the process of becoming a partner, please contact our Partner Hotline on 13 20 58 option 4 or [email_address] .

Step one: become a Microsoft Registered Partner: https://partner.microsoft.com/Australia/40032508 There is no cost to do this and it will enable you to access secure content and training resources on the partner website, as well as subscribing to our regular newsletter. In order to find out more about our local resources for ISV’s, please visit http://www.microsoft.com/australia/partner/isvanddevelopers/default.aspx .

Step two: register for Empower: https://partner.microsoft.com/Australia/40011351?PS=3 If you have not completed the development of your application yet, we have a different program to support your development efforts. As a Registered Partner you are able to enrol in the Empower program (12 month subscription for $875AUD). This is a program for partners who are developing a packaged software solution, and require development tools and access to resources to assist them for a period of time until their software is complete, and ready to be tested. At that stage, to progress in the Microsoft Partner Program and become a Microsoft Certified Partner it will be necessary to test your product, and provide some customer references in order to gain a “competency”. If you have completed the development of your application and it is market, proceed to step 3.

Step three: become a Microsoft Certified Partner If you have completed the development of your software application you may want to immediately submit it for testing. Full info on the testing and costs is here http://www.veritest.com/lionbridge/en-US/services/outsourced-testing/product-certification-programs/microsoft/ . Having a tested product and supplying customer references will gain you the ISV- Software Solutions Competency and with a competency you are able to become a Microsoft Certified Partner. The link to more information on gaining this competency is located here: https://partner.microsoft.com/global/program/competencies/isvsolutions/40011371

The cost per annum of Microsoft Certified Partner membership is ~$3465AUD. This is membership for a single site – with one set of benefits. You can also register any other sites and they can use the Certified Partner logo too. Details of the benefits are here: https://partner.microsoft.com/global/program

If you have any further questions about the process of becoming a partner, please contact our Partner Hotline on 13 20 58 option 4 or [email_address] .

Glossary GTM (Go to Market - Microsoft customer campaigns) ISV (Independent Software Vendor - a development partner who builds a solution based on the Microsoft platform) MSPP (Microsoft Partner Program) MfP (Microsoft for Partners) MSDN (Microsoft Developer Network – refers to either the developer community and/or the annual subscription of developer software) PAM (Partner Account Manager) CPE (Customer Partner Experience) DPE (Developer Platform Evangelists – refers to the people in the group who ‘evangelise’ our latest product and platforms) MCS (Microsoft Consulting Services) CMO (Central Marketing Organisation) SS (Specialist Sales) TS (Technical Sales)

GTM (Go to Market - Microsoft customer campaigns)

ISV (Independent Software Vendor - a development partner who builds a solution based on the Microsoft platform)

MSPP (Microsoft Partner Program)

MfP (Microsoft for Partners)

MSDN (Microsoft Developer Network – refers to either the developer community and/or the annual subscription of developer software)

PAM (Partner Account Manager)

CPE (Customer Partner Experience)

DPE (Developer Platform Evangelists – refers to the people in the group who ‘evangelise’ our latest product and platforms)

MCS (Microsoft Consulting Services)

CMO (Central Marketing Organisation)

SS (Specialist Sales)

TS (Technical Sales)

2007 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 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.

2007 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 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.