CLOUD BUSINESS TRANSFORMATION (PART B) Chris Sharp: General

CLOUD BUSINESS TRANSFORMATION (PART B) Chris Sharp: General Manager, Cloud Services, APJ, Microsoft Stephen Parker: Head of Cloud Strategy, NewLease Leonie Visser, T-Suite Channel Sales Manager, QLD, Telstra

Market Opportunity CUSTOMER DRIVERS PUBLIC CLOUD PRIVATE CLOUD Lower Reduced IT Greater Competitiv Regulatory Locality Technology Staffing Agility and e Requirement Concerns Cost Cost Scalability Advantage s 13 6B REVENUE 48% WEB CONFERENCING 46% COLLABORATIO N 39% CONTENT/DOCUMENT MANAGEMENT Explosive Growth Forecasted for Public Cloud Services (BY 2015)* Key Workloads Shifting to Cloud (BY 2013)** Control Security and Complianc e 12% Of total IT Spending) 35% MESSAGING AND PRODUCTIVIT Y 26 B REVENUE 37% and 26% CRM AND ERP * Source: AMI Partners 2011 ** IPED: Can You See Through the Clouds? The Evolution of Technology Delivery, March 2010 *** Source: IDC (June 2010) Worldwide & Regional Public IT Cloud Services 2010-2014 Forecast Strong Growth (BY 2014)*** 300 % GROWTH

Impact of Cloud Services Compensation Cash Flow New Skills for Value-Add Services Scalable Sales and Pricing Delivery Mechanisms

Modules and Approach Core materials provided and tested WPG Localised to Australian market Module 1 Identifying the Opportunities Module 3 Identifying/Creating Cloud Solutions Module 4 Aligning/Refining Marketing Module 5 Aligning/Refining Sales Module 6 Building the Action Plan Module 7 Landing your Plan * Module 2 – Understanding Financial Drivers (Optional)

Business Model Transformation for Partners Identifying/Creating Cloud Solutions

Solutions Delivery - Module Objectives This module will help you to: – Identify the key deal economics that will make you profitable in the Cloud. – Determine what types of Cloud services you want your organization to develop and deliver. – Think about other ways of monetizing the services you offer and your organizational IP. – Identify the changes needed in your delivery organization in order to fully benefit from an evolution to Cloud solutions.

Cloud Shift - Disconnection Segments/Niche People/ Persona Needs CloudBeShift ne fit s VALUE Off ers Messaging Right place, right time Consistent, everywhere , Strengths Assets 2011 NewLease Pty Ltd

Office 365 Sample Deal Example of what to expect in a O365 Deal Average Revenue/Seat 200 180 160 140 120 100 14% of Deals IDC Analysis with 9 US & 3 International partners, Each Partner: 1 large and 1 representative deal Average Deal Size: 805 Seats, Average Sales Cycle (weighted by seats): 2.8 months Average Revenue: 54,190, Average Cost: 28,915, Average Gross Profit: 28,738 (46.2% Gross Profit) 55% of Deals 80 60 91% of Deals 40 20 0 Managed Services, 110 Consulting, 21 Migration, 40 100% of Deals POR, 10 50/Seat Partner of Record (POR) Fees Source: “Building a Successful Microsoft Business Productivity Online Services Practice. IDC, September 2010” 71/Seat

High Potential Cloud Workloads Key Workloads in Demand % of Workload Delivered Through the Cloud 10% 20% 30% 40% 50% 10% 20% 30% 40% 50% Web Conferencing 48% g HR and Workforce Management 46% Collaborative Software SCM E-mail/Office and Personal Productivity Software nt Management Security Software 39% Content Management Document Management oductivity 35%Industry-specific Business Intelligence Application B2B/B2C Services 37% CRM Accounting Utilities/ Software/ERP 26% IPED: Can You See Through The Clouds? The Evolution of Technology Delivery, March 2010 2009 2012

Cloud Services Opportunities – 50 Seats Typical 50 seat Office 365 / Windows Intune / CRM deal collected by poll of Microsoft partners selling Cloud services in FY 2011

Cloud Services Opportunities – 250 Seats ypical 250 seat Office 365 / Windows Intune / CRM deal collected by poll of Microsoft partners selling Cloud services in FY 2011

Cloud Positioning – Risk vs Value High Risk Cost prohibitive - Affordable (Realisation of existing ideas) 1 3 Impossible Possible (New business creativity) High Business Value Low Business Value 2 Custom/Complex - Commodity (Cost Sweet Spot Reduction) Low Risk 2011 NewLease Pty Ltd 12

Most Partners are NOT Creating New Delivery Teams BUT there are four major organizational considerations that need to be addressed at the beginning of your transition to Cloud Services Skills Building Considerations Assigned resources to online initiatives Pre-sales advice and consulting is critical to maintain trusted advisor role Business process applicability of the technology is important. Integration & management of the hybrid customer environment Invest in leadership resources, a Single Point of Online Service Delivery Packaged vs. Complex Implementation Teams Assign technical ownership of prepackaged offerings Develop experts in each Online Service offering to improve quality, reliability and repeatability Optimize deployment of highly skilled complex implementation resources Consider junior level resources for packaged offerings to improve gross margins Education and Training Train, Train, Train Customers are looking for expert advice and want knowledgeable resources This is not “new product training” but training on your new business direction. Invest in it.

Offering Definition Training (5) Easy to add Niche Customisation Network upgrade Your IP/Skills/Differentiator Telstra offerings Hard to add (5) (4) Persona Needs Fixed price Migration (3) Identified Segment Office 365, Intune (1) Existing Assets (2) Filters (Opportunity/Blocker) (6) Offer Attributes (7) Messaging 2011 NewLease Pty Ltd 14

TELSTRA’S CLOUD STRATEGY

Distributors Next IP, Hosted IP Telephony, IaaS, Business and Mobile Broadband (internet access) Next IP, Hosted IP Telephony, SIP Connect, Business Broadband Business and Mobile Broadband, PSTN & ISDN, mobiles

Visit the Telstra Stand Come and talk to us AND FIND OUT HOW YOU CAN TAKE HOME A BOTTLE OF WINE OR A TELSTRA ELITE WI-FI DEVICE! TELSTRA TEMPLATE 4X3 BLUE BETA TELPPTV4 BOTTLES & DEVICES ARE LIMITED & CONDITIONS APPLY

Summary Focused Cloud Transition Strategy Roadmap as a packaged consulting offering Included O365, Windows Intune, Telstra assets in your roadmap Rekindle past unfinanced project opportunities Deploy newly developed Packaged Services Apply to join the November Business Transformation Workshops Email - [email protected]

Contact Details Chris Sharp – General Manager, Cloud Services, APJ, Microsoft, [email protected] Mike Heald, Partner Cloud Manager, Microsoft, [email protected] Leonie Visser – T-Suite Channel Sales Specialist, QLD, Telstra, [email protected] Stephen Parker – Head of Cloud Strategy, NewLease, [email protected]

Appendix if appropriate/required

Small Customer Opportunities Services opportunities for Small Business Customers Extend and Customize Cloud Offerings Advisory services for evaluating Cloud solutions. Migrate and Integrate Solutions to the Cloud Support for migration of on-premises data to Cloud applications such as Exchange Online, SharePoint Online, and Microsoft Dynamics CRM Online. Implementation support such as admin and user accounts creation and application testing Migration from on-premises deployments of Exchange Server, SharePoint Server, and Microsoft Office Communications Server to Microsoft Online Services Migrate email, contacts, and calendars to Microsoft Online Services Packaged Solutions: Managed Services, Support and Training Migrate email, contacts, and calendars to Microsoft Online Services User adoption and training for new Cloud-based solutions for mobile workers, deskless workers, and branch/field solutions. Break-fix, phone, and on-site support, including end-user and desktop support

Medium to Large Customer Opportunities Services opportunities for Medium to Extend and Customize Cloud Offerings Large Business Customers Technology assessments and architecture planning for hybrid on-premises/Cloud-based environments. Network operations center planning with Windows Intune for remote desktop management. Deployment planning for Hybrid on-premises/Cloud-based environments. Security, control, and compliance policy, and vulnerability assessments. Cloud asset inventory management. Custom application deployment (such as workflow automation solutions built on SharePoint Online, mobility solutions through Office Communications Online, customer alert functionality with Microsoft Dynamics CRM Online, or supply chain solutions built on online services for Microsoft Dynamics ERP). Deployment of custom workflow automation applications based on SharePoint Online. Offer business intelligence solutions with extensions to social media applications Deployment and management of LOB applications such as financial reporting solutions built on the Windows Azure platform

Medium to Large Customer Opportunities Services opportunities for Medium to Migrate and Integrate Solutions to the Cloud Large Business Customers Integrated Active Directory services across Microsoft Online Services deployments and onpremises applications. Implementation support such as admin, user account creation, and application testing. Support for migration of on-premises data to Cloud applications such as Exchange Online, SharePoint Online, and Microsoft Dynamics CRM Online. Application migration from on-premises deployments of Exchange Server, SharePoint Server, and Office Communications Server to Microsoft Online Services. Migration of data from Salesforce.com to Microsoft Dynamics CRM Online. Extend and augment on-premises Microsoft Dynamics ERP with online services for Microsoft Dynamics ERP Connection/integration of on-premises applications to Cloud-based applications using Windows Azure platform AppFabric. Migration support for on-premises LOB applications such as manufacturing solutions to Cloud-based applications based on Windows Azure.

Medium to Large Customer Opportunities Services opportunities for Medium to Packaged Solutions: Managed Services, Support and Training Large Business Customers Training plans for internal IT support of hybrid on-premises/Cloud-based environments. User adoption and training for new Cloud-based solutions for mobile workers, deskless workers, and branch/field solutions. “Train the trainer” for Windows Intune and Microsoft Online Services. Intrusion protection, log management, and integrated performance and security monitoring based on Windows Intune. Data protection and recovery with on-demand performance via replicated data centers. Desktop optimization, desktop management, and remote management with Windows Intune. Enhanced managed services contracts with Microsoft Dynamics CRM Online, online services for Microsoft Dynamics ERP, mobility, and branch office solutions. Help-desk support, including end-user support for Microsoft Online Services. Extended managed services contracts with Cloud-based LOB solutions such as HR applications.