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    The ISV Advantage:Partnering With Microsoft

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    The Market Is Changing

    Global opportunities and

    Global competition

    Regulatory compliance,

    with a demand for world-

    class security

    The rise of the always-

    on, always connected

    network

    Web-based applications

    will change the way you

    do business

    Microsoft understands that people are atthe center of all business success

    Amplifying the impact of yourcustomers people is the key toimproving their business results.And yours.

    Market change impacts the wayyour customers:

    Improve operations and reduce costs

    Create innovative productsand services

    Develop profitablecustomer relationships

    Build connections to partnersand supplier

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    The largest MarketOpportunity for software developersin the industry

    The most innovative, robust and integrated Platform forpartners to build upon

    A comprehensive set of investments in the partnerchannel through a Partnership that provides you with the

    technical, development, marketing and sales tools youneed to increase your business potential

    The combination of these three elements helps ISVs deliverprofitable solutions for the People-Ready Business

    No matter how the market changes, Microsoft is dedicated tohelping our partners be the most profitablein the industry

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    No matter how the market changes, Microsoft is dedicated to helping our

    partners be the most profitablein the industry

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    The Market Opportunity

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    Through the People-Ready Business initiative, Microsoft is

    developing products designed specifically to address the businessneeds of people within an organization. Products that give our

    partners new opportunities to deliver compelling solutions based on

    the roles that their customers people play.

    Whether its the CTO responsible for driving down costs within his IT

    infrastructure, the Sales Manager who needs to enable a mobile

    sales force, or the HR director who wants to provision new

    employees using only one system, people are at the center of all

    business success. And amplifying their impact is the key to

    improving your customers business results. And your own.

    By moving from a product/feature discussion to holistically

    addressing customer pain points, Microsoft is delivering on a

    compelling vision that provides you with a new opportunity to talk to

    your customers about their specific business challenges. And as we

    do, your market opportunities continue to grow.

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    Better Products, Bigger Markets

    With the launch of Windows Vista and Office 2007, partners canleverage the biggest product introductions in Microsofts history todevelop new, improved solutions that take full advantage of the latesttechnical innovations and the largest installed customer base inthe industry

    Industry forecasts estimate more than 300 million Windows Vistaequipped PCs will ship within the first 24 months

    The installed-base upgrade forecast is approximately 200million PCs

    The introduction of the new operating system and productivity suitewill spark an Enterprise investment cycle

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    Winning the Web

    Our partners have achieved unprecedented momentum in developing forthe Web. From developer education to hardware adoption, recent gainsrepresent the success of our products, our services and our partners.

    Globally, the number of .NET developers has increased 7% in just

    the past year. In the same timeframe, the number of Javadevelopers has decreased 3% - Source: Global Developer Tracking Pulse Study (2006)

    Microsofts Server market share has consistently increased over thepast five years, by a total of 10% - Source: IDC Server Tracker, April 2006

    In the database market, Microsoft is outselling both IBM and Oraclecombined. Enterprise market share also leads the competition, withSQL Server capturing 34% of the market - Source:

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    And The Market Continues To Grow

    Based on our analysis over the past several years, working on theMicrosoft platform has been the most financially beneficial optionfor ISVs

    Microsoft Partners saw a 14% average increase in revenue between2003 and 2005, compared to only a 6% increase for those

    developing for mainframes, or 10% for Unix developers

    .NET-only developers saw an average revenue increase of 10%, ascompared to only 4% for J2EE developers

    And the opportunities dont stop there

    IDC forecasts Windows Vista adoption at 56% of all PCs by the endof 2009, which when combined with a 9.9% growth rate in PCsales year over year makes for a lot of users looking to take fulladvantage of their new systems by buying your new software

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    The Platform

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    Enabling An Incredible User Experience

    Unequaled Platform Integration

    A Rich Development Framework

    Superior Platform

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    Increase your productivity and reduce your time-to-market by takingadvantage of the improved, streamlined programming capabilities within.NET Framework 3.0

    With Windows Presentation Foundation, you can create a single userinterface that can be accessed from either the client or the Web

    Utilizing Office 2007 as the natural, robust interface for independentsoftware solutions will free ISVs to focus their efforts on improvedfunctionality and customer value while providing a much broaderopportunity for license sales

    Windows Communication Foundation enables you to build secure,

    reliable service-oriented applications that integrate across platforms andinteroperate with existing investments, allowing for easier connectionbetween disparate systems.

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    Embrace the power of true enterprise readiness with the industries onlytechnology platform capable of delivering the scalability, data integration,security and information access your customers demand.

    Based on a uniform XML format, users can now work with severalcomponents of the Office 2007 suite, in combination with MicrosoftDynamics modules, SQL Server and Windows Server to provide

    unprecedented data access, analysis, reporting and distribution.

    New interoperability capabilities between programs such as WindowsSharepoint Services, Windows Workflow Foundation and Groove 2007allow for extensive content management, protocol application, andteam collaboration.

    Improved search functionality built into Windows Vista and ExchangeServer 2007, such as allowing administrators to search multiple emailboxes, increases the visibility an organization can have into the data thatresides within their network.

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    Take advantage of the latest presentation and functionality enhancementswithin Microsoft software to improve your customers access to, andinteraction with, your own solutions

    Create unbelievable user interface experiences with the WinFX WindowsPresentation Foundation.

    Through the improved user interface of the Office 2007 suite, customerswill have a much easier time creating and editing dynamic, informationrich reports and presentations.

    Security has been improved in all facets of the Microsoft platform,from User Account Protection build into Windows Vista, to the security

    configuration and identity management capabilities of Windows Server,to the improved password and identity protection offered byWinFX InfoCard

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    Developing software solutions based on the Microsoft Platform is

    a profitable opportunity -

    RevenueGrowth (%)

    25%

    11%

    CustomerGrowth (%)

    24%

    13%

    Deal Growth (%)

    12% 0.7%

    Sales Cycle(month)

    6.1

    9.1

    ImplementationTime (month)

    3.6

    7.1

    Microsoft OS ISV Partners achieved:

    Revenue and Customer Growth

    Substantially Bigger Deal Potential

    Shorter Sales Cycles

    Faster Implementation Times Benchmark Companies withoutISV/Software Solutions Competency

    Microsoft Partners with ISV/SoftwareSolutions Competency

    IDC ISV Partner Business Performance Study, June 2006 US & UK Companies with 10+ Employees

    Company

    PerformanceBusiness

    VelocityDeal

    Execution

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    The Value of theMicrosoft Partnership

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    The Value of The Microsoft Partnership

    Why Partner with Microsoft? Because were committed to helping yourealize your business potential.

    From the very beginning, well work with you to help you adopt andincorporate our technology with your own, so youre sure to realize all of

    its benefits.

    Well also work with you during all stages of development, testing, launchand product marketing. Well be there to support your customers, and wellhelp you drive the next generation of your business, making sure our

    partnership is a long and profitable one.

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    The Microsoft Partner Program (MSPP) is the best way to engage withMicrosoft for a wide range of tools, benefits and services. It can help you

    move your business forward by helping you:

    Set yourself apart from the

    competition

    Pursue more deals and

    bigger opportunities

    Lower your cost of doing

    business

    Improve your customer

    satisfaction

    The Value of The Microsoft Partner Program

    INCREASEMY OPPORTUNITIES

    SUPPORTMY CUSTOMERS

    CLOSEMORE SALES

    DEVELOPINNOVATIVESOLUTIONS

    PLAN MY BUSINESS

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    MSPP Logo Program

    Technical Demonstration Tool

    Kit

    Channel Builder/Solution

    Profiler

    International ISV Assistance

    Microsoft Partner Program for ISVs

    ISV Advisory Service

    Technical Briefings

    MSDN Subscription

    Readiness Training

    ISV Telesales Service

    Pre-Sales Tech & Competitive

    Hotline

    ISV ROI Calculator

    Solution SellingCustomer Satisfaction Index

    Business Critical Support

    Windows Reporting Tool

    Technical Service Coordinator

    Reduce costs and increase your

    revenue potential by accessing

    Microsofts comprehensive marketing

    and lead generation tools

    Convert more leads into sales

    with the help of Microsofts

    sales support initiatives

    Improve employee productivity

    and revenue potential by

    expanding their understanding

    of Microsoft technologies

    Continue to support your

    customers and grow your

    business with customer insight

    tools and technical

    support for critical issues

    The ISV/Software Solutions Competency offers powerful resourcesdesigned to have an immediate impact on your business, helping you make

    the most of every business day.

    The Power of The ISV/Software Solution Competency

    INCREASEMY OPPORTUNITIES

    SUPPORTMY CUSTOMERS

    CLOSEMORE SALES

    DEVELOPINNOVATIVESOLUTIONS

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    Partners who become certified within the ISV/Software SolutionsCompetency have been proven to achieve:

    Higher revenue

    Stronger customer growth

    Shorter sales cycle

    Increased per-employeerevenue generation

    ISV Competency Partner Profitability

    Company

    Performance

    Revenue Growth(%)

    25%

    16%

    Benchmark Companies without

    ISV/Software Solutions Competency

    Microsoft Partners with ISV/Software

    Solutions Competency

    Customer Growth(%)

    24%

    13%

    Sales Cycle(Months)

    6.1

    7.4

    Revenue perEmployee

    $139,100

    $116,300

    Business

    Velocity

    Deal

    ExecutionProfitability

    IDC ISV Partner Business Performance Study, June 2006 US & UK Companies with 10+ Employees

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    Microsoft is committed to helping our Partners deliver profitable solutionsthat meet the demands of todays business customer.

    Combining our market potential, partnership opportunities andtechnology leadership with your products and services allows you to

    create profitable solutions for the people-ready business, enabling yourcustomers and their employees to easily work together to makeinformed, timely decisions that quicken the pace of innovation and openthe door to new opportunities.

    The Value of The Microsoft Partnership