Share Point will be for the server what

“Share. Point will be for the server what the Office suite has been for the desktop. ” Bill Gates, Chairman & Chief Software Architect, Microsoft 1

Many Service Providers feel they are unique in adding value beyond pure hosting This impression is dated 2

What is Software + Services? • Business, as opposed to technical, approach to the successful deployment of hosted applications and services • Best practices gained from working with hundreds of telecom and hosting operators, as well as ISVs, in over 25 countries • Tools to compare your practices against those of your peers • A framework for applying best practices to differentiate and add value to your customer • Pathway to resources available to build and grow your business

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Trends Driving Service Provider Transition

Where Do We Focus To Effectively Drive Sales In Value Added Services? • 8 key success factors are critical to success in VAS • These key success factors have been assembled from: – Market Research – Direct learning from successes and challenges of more than 300 telecom and hosting operators worldwide • Within these key success factors, a series of ‘best practices’ have emerged that guide operators in their go-to-market campaigns • These best practices can be used to create an operator scorecard that guides execution focus and strategy

Assessing Go-To-Market Maturity Our methodology for assessing Provider maturity with respect to 8 key Go-To-Market Success Factors that are required in selling & marketing Software-as-a-Service offerings: Optimized – Competitive Differentiation – Messaging & Positioning – Packaging & Pricing – Web-Driven Business Model – Demand Generation – Online Customer Experience – Direct/Indirect Sales Processes – Organizational Effectiveness Competitive Predictable Inhibited Ineffective 3 2 1 © 2007 Mural Ventures Corporation 4 5

Each Maturity Level has a Focus 5 4 3 2 1 Solution Focused with Continuous Improvement Target Market (or segment) Focused Customer (Needs & Benefit) Focused & Service Driven Benefit Focused Product-Dependent Focus and Ad-Hoc Behavior © 2007 Mural Ventures Corporation

Mural ISV Market Readiness Assessment Competitive Differentiation Uncontested Price Space Compete on Market Maturity Level Messaging & Positioning Product and Feature Centric Market Segment Need Based Packaging & Pricing Complex with High Barriers to Micro-Market Focused Pricing Sale Based on Value Web-Driven Business Model Confusing Internally Focused Customer Centric and Market Specific Demand Generation Touch Points are Offline Messaging Integrated Online Inconsistent for Offering Online Customer Experience Difficult to Buy and Administer Relevant Cross-Sell Up-Sell Intuitive Administration 1 2 3 4 5 OPTIMIZED Market Readiness COMPETITIVE PREDICTABLE INHIBITED Direct/Indirect Sales Processes Ad Hoc Direct Sales Only Focused & Integration Direct/Indirect/Online Sales Organizational Effectiveness Ad Hoc Organization, Continuous Aligned Decisions/Department Behavior Improvement © 2007 Mural Ventures Corporation INEFFECTIVE

Saa. S Business Readiness Approach OFFERING DEFINITIOIN & FINANCIAL MODELING TARGET MARKET ANALYSIS Go-To-Market Strategy & Execution Online Customer Experience Demand Generation Direct/Indirect Sales ors ct a s. F es Web Driven Business Model ey K cc Su Competitive Differentiation Messaging & Positioning Packaging & Pricing Organizational Effectiveness © 2007 Mural Ventures Corporation

© Mural Ventures Corp 2008, All Rights Reserved

Example of Level 1 -- Ineffective Level Messaging & Positioning 1 (Ineffective) Positioning is completely product and feature centric. Positioning is effective only for customers who already know what they need and are already familiar with the specific application domain. 13

Example of Level 3 -- Predictable Level Messaging & Positioning 3 (Predictable) Customer centric positioning with Benefits (e. g. Anytime, Anywhere access), then supporting benefits points, then features as appropriate. Consistent application of messaging throughout ALL collateral. 14

Example of Level 5 -- Optimized Level Messaging & Positioning 5 (Optimized) Vertical (e. g. Real Estate), Horizontal specialization (e. g. Finance), or other micro-market specific positioning. User groups or surveys are proactively used to incorporate customer feedback into product life-cycle. 15

Case Study: Demand Generation Expedia Trip Advisor PPC SEO Zurich Hotels 3 NA NA 4 Marriott Zurich NA NA NA 3 Hilton Zurich NA NA 2 2 2 NA NA 2 Geneva Hotels

Support is The New Marketing • 50% of new customers each month from word of mouth • Extremely low Churn rate • Base doubles every 12 months • Support requests taper off dramatically after the first 30 days.

Value Innovation Canvas 18

Next Steps. . . How to started on your Value Innovation Canvas • Please go to http: //www. microsoft. com/serviceproviders/hostingpro viders. mspx, and click on Software + Services Marketing Best Practices • Please review the KSF content and case studies • Grade Yourself with the KSF Scorecard • To obtain Industry Average KSF Score, simply register from link at bottom of page • An email will be sent to you with Industry KSF Score within 48 Hours • • Contact - Shamah Gamrath (Shaahm@microsoft. com) 19

Questions & Answers 20