Leveraging CRM as a Platform to Grow Your Business

1. Leveraging CRM as a Platform to Grow Your Business Frank Falcone Senior Product Manager Microsoft Dynamics CRM

2. Truly a ‘Software+Services’ Opportunity - CDN Projected CRM Spending in Canada (Millions) (SaaS vs. On-Premise CRM Growth) • CRM ‘Software as a Service’ continues to gain momentum in Canada and is projected to grow from $13M in 2006 to over $100 M by 2011, a 5-year (‘06-’11) CAGR of 56%. IDC expects that by 2010, over half of all CRM spend will come from SaaS CRM. On-Premise 5 year CAGR = -2.0% SaaS 5 year CAGR = 56.0%

3. Truly a ‘Software+Services’ Opportunity - US SaaS CRM revenue projected to grow to 22% of total CRM software revenue by 2010* Sources: *Gartner Dataquest 2006, **Forrester Research, 2007

4. What this means for you… • The market is shifting • From large-scale implementations to agile solutions that drive immediate benefit • S+S is a catalyst for change • Perception for buyers is that S+S is more affordable with less risk • “Choice” is the best strategy for long-term success • On premise, partner hosted, or Microsoft hosted

5. PARTNER BUSINESS MODEL Independent Software Vendor

6. Microsoft Partner Business Models

7. ISV – Example • James founded a 25 person software development shop about 7 years ago, based in Calgary, Canada, servicing enterprise and mid-market companies in the oil & gas industry. The company recently released a front-office solution based on Microsoft Dynamics CRM. • Partner Level: Certified • Number of CRM Customers: 48 • CRM Experience: Developing competency • Core Strengths: .Net development, oil & gas, back-office systems • Focus: Mid-market, enterprise, oil & gas Seats: 25 Time To Implement: 1 month Why James likes to work with Microsoft CRM: • Great revenue and margin opportunities • Attractive royalty schedule based on volume • Solid product • Rich platform, takes advantage of .Net, Office Client and Server, SQL for reporting, and business intelligence • Ease of development (Visual Studio, .Net, Workflow) • Flexibility of deployment (on-premise and hosted) *88% of revenue flows directly to ISV • Great support • Training, certifications

8. PARTNER BUSINESS MODEL Service Provider

9. Service Provider – Example • Claus works for a 250 person infrastructure and application hosting company based in Denmark. His company hosts and manages email and business applications on behalf of companies based in Denmark, UK and the Netherlands. He partners with SIs for the consulting and customization work, as well as ISVs. • Partner Level: Gold Certified • Number of Customers: 1,500+ • CRM Experience: 4 years • Core Strengths: Infrastructure and application hosting, hosted Microsoft Exchange, Microsoft SharePoint and Microsoft Dynamics CRM • Focus: Mid-market, manufacturing, financial services Seats: 50 Time to implement: 30 days *53% of hosting revenue flows to SP Private Label Model** Why Claus likes to work with Microsoft CRM: • Great revenue opportunities • Recurring fees from customers/private-label partners • ** In this example, CRM Partner sourced the deal, owns the customer and invoices them. CRM Partner pays the Service Provider a recurring monthly fee for hosting services. • Solid product • Built on Microsoft stack with multi-tenant capabilities • Common application platform for ISV solutions • Integration with SharePoint, Exchange Seats: 50 Time to implement: 30 days *72% of hosting revenue flows to SP Direct Model • Great support • Large partner ecosystem, hosting documentation and tools • Currency conversion rate of .6822 used on invoice example.

10. The Power of Choice Partner Hosted On-Premise CRM Online Outsourced IT Industry / Vertical configuration Packaged solutions Control & ownership Technology investments Advanced integration Rapid implementation Anywhere-access Low, per user monthly fee

11. Dynamics CRM: The Power of Choice • Choose how you use itOutlook, browser, mobile • Choose how you get itSoftware or service • Choose how you buy itOwn it, rent it On-premise Single code-base across all offerings! Change your mind at any time ! Partner Hosted CRM Online

12. Microsoft Dynamics CRM Online 151 – 250 users 26 – 150 users 5 – 25 users “Perfect Fit” “Great Fit” “Good Fit” • Resource Constrained IT • Departments • Divisions • Enterprise S+S Pioneers • Pilots • Resource Constrained IT • Departments • Divisions • Mid-market Organizations • NO-IT Organizations • Workgroups • Departments • Small Businesses

13. The Partner Opportunity • Be part of the transition from on-site to S+S • Sell and service Microsoft CRM on-site while you learn the new market for CRM Online • Diversify Revenue Sources • Microsoft Services Annuity • Partner Services • Standard license margin for on-premise

14. The Partner Financial ModelAnnuity-based model for partners • Partners will receive recurring annual compensation for customers that they deploy on the Live CRM platform • Partners will receive 10% of the service revenue for each user, with a special rate of 15% per user in 2008 • Paymentswill be made in advance on the first year of 12 & 24 month contracts • In addition, partners can also receive standard software marginif the customer chooses to move on-premise

15. Innovation, Investment & Partners • Microsoft Dynamics: • 291,000+ customers • 10,000+ partner ecosystem • Footprints in 132+ countries • 20+ years experience • Microsoft: • Three Aligned Business Units • Delivering Integrated Innovation • 57,000 Employees • 27,000 designers and developers • $7.6B in R&D • History of Pioneering Software • Innovation

16. Microsoft Data Center

17. 30 Day Free Trial of CRM Online https://offers.crmlive.com/canadapromo

18. DEMO The Power & Flexibility of the Dynamics CRM Platform

19. Thank you!