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Market Opportunity

Who begins too much accomplishes little

German Proverb

Market Opportunity

After this session, you will:

1. Understand the ‘universe’ for hosted messaging and collaboration.

2. Understand the opportunity drivers for new customers and follow-on sales.

Messaging and Collaboration

SMB CompaniesHosting

Session Objectives

During this session, we will:

1. Discuss whether the research data is aligned with your own market data and understanding

2. Discuss ways in which your market is evolving

3. Discuss the opportunity drivers as they related to your marketplace

Discussion Topics

Trends & Opportunities

• Hosting• SaaS• Overall messaging/collaboration market

– MAPI– Mobility and Voice over IP– SharePoint

• HMC overlap and integration opportunities– Live Communication Server & Windows-based Web and SQL

Server

4

5

6

7

SME Customer Needs

Existing Applications New Applications

Beat the Competition

Advanced Collaboration &

Workforce AutomationProject management

CRM and SFAIssue management

Document managementDepartmental portals

Real-Time Communications& Collaboration

Secure IMVoIP

Web meetingsWAP enablement

Peace Of MindHands-Off Operations

No distractionsOn-demand storage

Archival

SecurityVirus protectionPhysical security

Data security

Reliability & Availability

SLAs High availability

infrastructureSolid 24x7 Tech

SupportOff-site Backup

Get More DoneCollaboration

Shared contactsShared resourcesTask assignment

Task TrackingFile sharing

SchedulingMeeting Management

InvitationsShared calendar

Free/Busy SchedulingResponse Tracking

Anywhere AccessMobile Devices

Always Up-to-date access to Email,

Calendar, Contacts, & Tasks from Windows

Mobile Devices

Remote AccessSecure Access to

Email/Calendar/Contacts/Tasks from Laptops while

travelingFile access while

travelingAccess from any PC using Outlook Web

AccessOffline access when

not connected

SMB Customer Needs

Existing Applications

New Applications

Beat the Competition

Advanced Collaboration &

Workforce AutomationProject management

CRM and SFAIssue management

Document managementDepartmental portals

Real-Time Communications& Collaboration

Secure IMVoIP

Web meetingsWAP enablement

Peace Of MindHands-Off Operations

No distractionsOn-demand storage

Archival

SecurityVirus protectionPhysical security

Data security

Reliability & Availability

SLAs High availability

infrastructureSolid 24x7 Tech

SupportOff-site Backup

Get More DoneCollaboration

Shared contactsShared resourcesTask assignment

Task TrackingFile sharing

SchedulingMeeting Management

InvitationsShared calendar

Free/Busy SchedulingResponse Tracking

Anywhere AccessMobile DevicesAlways Up-to-date access to Email, Calendar, Contacts, & Tasks from Windows Mobile Devices

Remote AccessSecure Access to Email/Calendar/Contacts/Tasks from Laptops while travelingFile access while travelingAccess from any PC using Outlook Web AccessOffline access when not connected

Microsoft Solution for

Windows-Based Hosting

Microsoft Windows SharePoint Services

Microsoft Exchange Server Microsoft Live Communications ServerMicrosoft LiveMeeting

New Applications

Hosted Exchange Drivers• Peace of Mind Operational freedom

– Off-site back-up– Threat protection– Tech support– High availability

• Anywhere Access Mobility and remote access– Employees in home or branch office– Mobile device synchronization– E-mail while traveling

• Get More Done Collaboration– Better ways to share and track files– Check and share calendars– Share information

Source: Edge Research

• 50% have high needs in at least one of these areas

• 16% have high needs in at least two of these areas

• There are 217k “Best Candidate” Companies

in the UK

Hosted Exchange Drivers – Size and Industry

• By Size– Companies with <50 employees

• By Industry/Vertical Market– Professional Services– Manufacturing– Wholesale and Retail– Construction– IT Services– Non-profit– Finance

0% 5% 10% 15% 20% 25% 30% 35%

Natural Resources

Gov t

Utilities

Ins uranc e

Es tate A gency

A griculture

Other

Healthcare

Consumer Serv ic es

Transportation

Financ e

Wholesale

Charity /Non-prof it

Cons truc tion

IT Serv ic es

Manuf ac turing

Retail

Prof es s ional Serv ices

Best CandidatesOther Companies

Hosted Exchange Drivers – Pricing and Timing

Acceptable Price Point

Purchasing Time Frame

Other

Best Opportunity

18%

20 € 12 months Predisposed to outsourcing; early adopters

Short-Term Opportunity 7% 10 € 12 months

Mid-Term Opportunity

9%

10 € 12-24 months

Long-Term Opportunity

3%

10 € 24+ months

52% of UK SMB Companies expressed an interest in adopting Hosted

Messaging and Collaboration at some price.

Source: Edge Research

SharePoint Opportunity Drivers – Key SMB Business Needs

• Project Management– 39% stated need to coordinate schedules, tasks, document

sharing and progress reports both internally and externally. • Problem Resolution

– 35% stated need to assign responsibility, track progress and resolve problems.

• Centralized Document Management– 26% stated need to coordinate updating and distributing of

important company documents, contact lists, procedures and policies.

• Departmental Portals– 22% stated need for direct link access to current company

information, regardless of location in office or remote.• CRM

– 28% stated need to share and update information on contacts with customers and business partners.

Source: Edge Research

What is SaaS?

One-Time License Fee & Annual Maintenance

Complex Upgrade Process

Multiple Versions in Marketplace

Need to Support Multiple Environments

Dedicated Infrastructure Per Customer

What’s Driving SaaS Viability?• Increasing broadband penetration• Improvements in remote access technologies• General increases in computing capacity and corresponding cost reductions• Virtualization technologies• Improvements in technologies for development of web-based applications

Software as a Service

Software onDemand

HostedApplication

Management(ASP)

Source: Amy Konary, IDC Directions, 2006

Private Infrastructure Public Infrastructure

One-to-One One-To-Many

Perpetual License Subscription

ASP Model

SaaS Model

$

$

$

$

$

$

Why is SaaS Important?

REVENUE OPPORTUNITY

•30% of all software sales by 2010

•78% of businesses either have SaaS or are considering SaaS

SP/ISV Drivers

End Customer Drivers

SaaS Strategy Phase II

MARKET CHALLENGES

Lack of providers with application and integration experience

Lack of integrationbetween applications

No certification process

Finding the right SaaS applicationschallenging for customers

Lack of quality distributionchannels for ISVs

Customer Confusion

SaaS: The Opportunity

• 79% of IT managers responding to a recent IDC survey have already purchased or are currently reviewing SaaS offerings.

• Over 50% of ISVs now receiving funding are SaaS based

• SMB, Mid-market, Enterprise• Opening for service providers to partner with ISVs

Challenges in SaaS Hosting

• Traditional processes for development, delivery, and support of applications are not well suited for SaaS

• Application architectures must change to address requirements such as multi-tenancy, security, scalability, and operational supportability

• A complete lack of standards for the deployment of SaaS applications for things such as ordering, provisioning, metering, and billing

• The challenge of the go-to-market approach – to sell direct, or to sell through an indirect channel of resellers, service providers, or outsourcers

Background Materials