Business Dynamics Positioning through Messaging, Pricing and Packaging

1. Business DynamicsPositioning through Messaging, Pricing and Packaging With enough "ifs" we could put Paris into a bottle. French Proverb

2. SaaS Customer Needs • Pay Less for More • No upfront cost • Pay as you go • No need for expensive and complicated software upgrades – updates are included at no extra cost • Cut employee training costs in half • Easily try before you buy • Only pay for what you use • Don’t need for the application? Stop paying! • Scale upward or downward as rapidly as your needs demand • Lower staff support requirements • Secure & Highly Reliable • Best in industry security • Exceed compliance requirements • More complete security than customers can provide • Improved and consistent performance • Less need to worry about budgeting for what is always an unpredictable IT budget process • Shared risks and single source accountability • Greater Usability and More Complete Access to Needed Functionality • Bring applications into your business you wouldn’t otherwise be able to afford • Single sign-on • Access Key Applications from a Single Portal • Functional upgrades several times per year in lieu of every other year . . . • Enterprise class functionality for your business

3. Build Messaging Pillars • Emotion/Pain • Opportunity Drivers • Hard hitting and compact • Key Message • Strong benefit message • Supporting Messages • These become the content of campaigns down the road

4. Emotion/Pain ‘Every time someone leaves the office on a service or sales call or works from home we lose our ability to function.’

5. Opportunity Driver Anywhere Access

6. Key Message ‘Access documents, appointments, contacts, and company schedules and information from anywhere with an internet connection.’

7. Supporting Messages • Highly mobile employees (salespeople, consultants) are dependent on the accurate and timely exchange of information with co-workers and customers. • Off-site employees need contact with the home office for access to the latest documents and materials. • Employees distributed in remote and home offices need 24 hour access to company information.

8. Pain: Communication is important, but I can’t afford IT Peace of Mind = Experience Operational Freedom You take care of your business, we’ll take care of your messaging system =

9. Map Messaging Pillars to Defined Industry Segments • So What: “We have developed a hosting platform to better meet your needs.” • Better: “Organizations can now implement hosted applications with no risk and no long term commitment.” • Best: “Be live in minutes with a free trial of mobile email and access to schedules -- designed specifically for financial services -- with zero up front investment and no risk.”

10. Most Value Attributed To: Off-site, scheduled backup Threat protection and enhanced security Technical support High availability Freedom from having to do it all themselves! Features to emphasize: 24x365 technical support and on-line knowledge base Anti-spam, anti-virus, other privacy/security solutions Depth of engineering expertise Data backup, recovery and storage capabilities Self-service control panel, simplified administration Peace of Mind

11. Most Value Attributed To: Ability to work from home Support for employees at client sites or branch offices Mobile device synchronization Access to information while traveling Features to emphasize: Access from any location with an internet connection Incremental benefits of Hosted Exchange Synchronize mobile phones or PDAs Current hosting partners estimate 1/3 of leads are for mobility Too complex to do internally Too expensive to do internally No IT to support it Anywhere Access

12. Most Value Attributed To: Better ways to share and track files Check and share individual and corporate calendars Share ad-hoc company information Share customer information Features to emphasize: Value add features of HMC Shared folders (contacts, tasks, mail) and calendars SharePoint features Instant Messenger for speedy communication Get More Done

13. Industries that Match Characteristics

14. Business Challenges that Match Characteristics

15. Case Studies – Messaging and Positioning-- People want quarter-inch holes, not quarter-inch drills. Scannet • Product/Feature/technology focused messaging • Zero flow • Hosted Exchange  Exchange Server 2003? • No methods of contact • Effectively implementing elements of Demand Generation and Direct Selling but not bringing it all together

16. Case Studies – Messaging and Positioning Cobweb • Highly approachable • Top level messaging • Guaranteed! Save! Call! • Mobility focus • Emphasis on integrated archiving (packaging) • What does the buyer need in order to feel confident making the purchase decision? • Excellence, Industry Certified, Ensure Compliance, Service Excellence, No Compromise, ‘Why Cobweb? - Top Five’

17. Persona Marketing • Persona Marketing is, in itself, a competitive advantage • Identify an ‘ideal’ candidate for the defined service • Representative of thousands of other users that are reachable via the Web Driven Model • Personal Interview • Demographic • Psychographic • Pain/Motivation • Map to messaging

18. Characteristics of Personas End-User Packaging should be driven by Personas that represent how the service is actually used • Mobile Worker • Needs access to email, files, calendar, contacts, tasks while traveling • Office Worker • Typically works in one location, needs to work on behalf of others, plan and schedule • Delegate access, shared calendars and contacts • Information Worker • May work in or outside of office, needs to share and have easy access to information • Public folders, shared contacts

19. Behavior Characteristics Heavy Email User E-mail is always running on the desktop Being out of the office is the exception Would like to be able to easily check email from home Does not travel regularly for business Primarily a Desktop P.C. user, may have a laptop but it rarely leaves the office Typical Roles Administrative Assistant Software Engineer Call-Center Customer Support Representative Accounting/Finance Users Distribution Manager Knowledge Worker Hosted Exchange Office Worker Persona • Key Features & Benefits • Shared Calendaring & Meeting Reminders • Delegation of rights in Outlook • Junk-Mail Filtering • OWA • Public Folders • Global Address List (GAL) for finding other employees information • Task List • Packaging & Pricing Implications • Required MAPI, but not Mobility • Can be the bottom tier of a two-tiered model where the top-tier includes mobility • Can be the middle tier of a three-tiered model where the bottom tier is Basic OWA/POP

20. Behavior Characteristics Email-Centric User – Work revolves around email Being out of the office is the rule Frequently works from home Frequently doing business from airports, hotels, etc. Primarily a laptop user Rarely disconnected, responds immediately to emails if possible Typical Roles Business Owner Senior Executive Sales Representative Sales Engineer Field Engineer Consultant Hosted Exchange Mobile Worker Persona • Key Features & Benefits • Mobile access to email, calendar, contacts, and tasks saves time and increases responsiveness to internal & external customers • Integration between contact list and telephony functionality for easy dialing and caller identification • Transparent Synchronization Capability • Ability to Listen to Voicemails sent as sound attachments • Packaging & Pricing Implications • Required MAPI and full mobility features • Is the top-tier of a two-tiered model where the bottom tier provides MAPI but not mobility • Can be the only tier of a single-tier offering that encourages the use of mobility features

21. Needs Segment Info Worker (High Collaboration) Mobile Worker (High Mobility) Packaging & Pricing for Personas Price Range $USD Value Proposition Offering Components • Core Offering: • OWA w/personal folders, pop3 • Tech support • Anti-Spam, Anti-Virus • Backup • Self-service control panel Office Worker (High Operational Efficiency) • Quality tech support • High availability • Quality of Service • Spam/Virus protection • Offsite Backup 7 € • Collaborative file sharing • Shared calendars, contacts • Shared information • Instant messaging • Core Offering • MAPI • Shared folders • Integrated IM 10 € • Core Offering • MAPI • Mobile device support • Synchronization • Email for remote workers • Email while travelling • Mobile Device Email and Synch 15 – 20 € • Recommendation is for a 2 or 3 tier approach

22. General Price Considerations • Preserve low barriers to sale • 2 or 3 price levels • Contract that local market will bear (minimal) • Consider discounts • Long term commitment, large volume • Reward existing customers for referrals • Bundle popular services, ‘small business in a box’ ready offerings

23. Positioning, Packaging & PricingWorking Session • How does your current packaging compare to the best-practice recommendations? • Is your offer correctly positioned to avoid feature-speak and focus on customer-benefits? • Is your current pricing a barrier to sale or an accelerator?

24. Background Materials

25. Sample Exchange Offerings

26. Cross-Selling with HMC Components • Hosted Exchange lead • SharePoint site for basic company intranet or document storage (ie HR policies, forms) • Added value with solution-specific templates for Project Management, CRM, etc. • Secure instant messaging and awareness with Live Communications Server • Windows-based web hosting • Other Windows-based hosting services