Annuity Renewal Discussion

1. Annuity Renewal Discussion Vicky McCullough Accordo Group

2. Who are Accordo Group • Software licensing consultants • Do NOT sell licenses • Work with various Microsoft subs around the APAC region • Carry out annuity renewal call downs to NZ and Australian customers on behalf of Microsoft • Have gained an understanding of what customers are experiencing

3. Field Feedback What objections have you come across?

4. Learnings from Customer call downs • Value of annuity generally not at all well understood • Often are not engaged with their reseller (MM mainly) • Too difficult and too much time involved for them to assess current position, let alone options • Feel they are in a position of comfort with versions effectively “in the bank” • Are often choosing to not renew but not making that decision on the basis of financial considerations

5. Agenda • It’s really not rocket science – the basic facts! • Understanding the customer: • Where they are already at with this process? • Their entitlements • Their current deployment position • Their technology vision • Dealing with versions in the bank! • Positioning SA Benefits • Making sense of all this – financial modelling! • Help the customer understand the financial impact of non-renewal • Track the order!

6. It’s really NOT rocket science! • Remember the rules of thumb • If the customer is going to upgrade their apps or sys products within 3.5 years – SA will be cheaper! • If a customer is going to upgrade their server products within 4 years - SA will be cheaper! • Believe in it! It is a viable cost effective solution for most customers! • NZ renewal rate in MM exceeds 75%. Aust renewal rate exceed 80% • Don’t forget – customers appreciate someone else making sense of it all! • And remember – if the customer doesn’t renew, we likely won’t see revenue from them for up to 3 years!

7. This is just like a recipe! First you need to do is gather all the ingredients! Then you need to bake the cake! And never forget – the customer is always more confused than you are!

8. Understanding where the customer is at? Our process with MM customers (up to 1,000 seats) • Always ask first where their thinking is at! • They may already have decided to renew– if so, establish what they will be renewing and when • Would they like some help making sense of all the information and the options available to them? • Have they seen the communication? • Did they understand it? • Do they realise the importance of the 90 day window? • Are they engaged with their reseller

9. Understanding the customer’s current entitlement • Before you call, make sure you get clear in your mind what versions they are entitled to as a result of their expiring UA/SA • Understand how many agreements they have coming up for renewal and when – is there an opportunity to rationalise their licensing agreements? • Don’t underestimate what a big help this is for customers!

10. Customer’s current deployment position • Spend time with the customer understanding what they have deployed today! • This is important information for Microsoft! • This will also help you position and understand future upgrade cycles with the customer

11. Customer’s technology vision • Get an understanding from the customer of their technology vision preferably on a product by product basis! • Be prepared that they may not know! • If they don’t, get clarity from them on when they deployed their last version upgrade

12. Dealing with versions in the bank • Don’t be concerned that they might be entitled to versions later than they have deployed! • Customers will often react with this – this is part of the process and a very valid concern but is completely able to be overcome and positioned positively! • Take them out of their current comfort zone • Remember to position the opportunity for them to effectively have versions in the bank at the end of their next agreement • Focus on cost of Year 4 in L only strategy!

13. Financial Modelling • Now you have all the ingredients! • Making sense of all the information • price up their various options • make a recommendation • Be aware you may need to model out as far as 6 years! • Incorporate and price the value of the SA Benefits if needed

14. SA Benefits • Our experience is that customers are often NOT aware of these! • Focus on particularly: • The Home Use Program • Training Vouchers • Problem Resolution Support • eLearning • Use explore.ms SAB Report and the Microsoft SAB calculator • If you need to, price up the benefits for them Note this is viewed by customers as the icing on the cake and not the reason for renewal!

16. L only – don’t be afraid • This can be a viable option for some customers – particularly if they are leaning away from Microsoft products! • If there is a competitive threat – advise Microsoft! BUT ensure they understand the impact of Year 3 or 4 costs!

17. Track that order! • Once you get agreement from the customer – forecast the revenue opportunity and the month it is due to fall • Track the order, because if the customer doesn’t place it in time they may lose the opportunity to do so! • Absolutely stay in touch with the customer throughout the whole process!

18. 3 Points to Take Away • Challenge the Customer • Follow a methodology • Stay with the customer

19. Software Asset Management (SAM) for Customers • Microsoft offer support for SAM through: • SAM seminars promotion – let us know if you are running a SAM seminar or want to • SAM collateral - printed SAM guide • SAM on-line Website • Licensing Compliance Service in MM • Managing security updates is driving people to better understand their software management processes

20. SAM - What is available for Partners? • SAM online guidewww.microsoft.com/australia/partner/licensing/sam • On-line interactive tutorial for each section • Partner/Customer ready tools - word & PDF format • Templates/scripts • Opportunity to be listed as referral partners • Be listed as a provider of services or tools • Updated SAM guide being printed now and available for customers in Sept. • Launch of Licensing/SAM competency in Q2/Q3 • Pick up an Intellectual Property Q&A from Licensing Lounge or speak with License Compliance Manager, Suzanne Caldwell

21. Questions…..vicky.mccullough@accordo.com