Hosting Service Provider Summit - Syd Nov Roland Leggat Partner Technical Specialist - Applications Microsoft Australia

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1 Hosting Service Provider Summit - Syd Nov 2013 Roland Leggat Partner Technical Specialist - Applications Microsoft Australia 1

2 The Cloud is Here Delivering IT as a Service 2

3 Why do partners want to leverage Lync? Because Customers want Lync 3

4 Why Lync? Customer demand for the product Fastest growing Microsoft productivity solution Gartner show Lync as the market leading solution Microsoft Global Program Big Bet High revenues and high margin solution Up-sell/pull through solution Gateway Product Moves conversation away from IT to the BDM 4

5 5 Applications Used Everyday

6 Microsoft Unified Communications Enterprise-ready Unified communications platform 6

7 What Is New In Lync? Be There Without Going There 7 Video gallery HD video or high resolution photos of attendees H.264 SVC support Presenter controls to optimize for meeting type Participant selected views Single unified client experience across workloads Lync Windows 8 immersive experience optimized for touch Mobile client experiences designed for the device Lync Web App for browser access to meetings Communicate directly from within Office Single identity Shared contact card OneNote Share Communicate with anyone on Skype Presence Instant Messaging Peer to peer voice

8 Lync Enterprise Benefits Enable and improve mobile productivity Communicate in real time with colleagues, customers and partners from virtually anywhere Enable new ways of collaboration with voice & video using a single unified client Share ideas and keep teams in sync Reduce costs related to video conferencing, telephony and travel Reduce costs through simplification and consolidation Manage with common and familiar tools Reduce total cost of ownership with integration and shared infrastructure Accelerate adoption of online services Reduce IT operations costs Enables a path to unified communications following a customer s blueprint 8

9 The Right Product Instant Messaging / Presence PC to PC Video PC to PC Voice Multi-party Chat Application / Desktop Sharing Online Conferencing Telephony 9

10 The Customer Journey to UC Services 10

11 The Service Provider Opportunity Instant Messaging / Presence $ / Unified Messaging Collaboration Conferencing Desktop Productivity Security and Compliance Network Connectivity Enterprise Voice Calls and Minutes Hosted Video $$$$ 11

12 ($) Trillion Services Rapidly Moving To The Cloud Minutes Are Moving To Megabytes $0.33T to $0.42T $0.25T to $0.54T $0.37T to $0.28T $0.64T to $0.61T Fixed and Mobile Voice Revenue declines in both Absolute and Relative terms WW Telecom Services Revenue (Gartner*) * Gartner, ID#: G , Market Trends: Global Telecommunications Market Take, Worldwide, 1Q11, May

13 Microsoft s Vision for UC Partnering with Service Providers to drive vision for UC for mutual customers Existing Exchange Hosters - Lync extends their offers to add UC Existing PBX Hosters - adds Microsoft Lync to portfolio New Hosters - Lync can be their lead offer and differentiator Extension of Minutes to Megabytes Monetization from the boardroom to the living room New Value Added Services Bundling, ARPU, Stickiness Any Device, Any Platform 13

14 Microsoft s Internal Case Study UC Generating Savings >$215 Million Annually Microsoft IT used Forrester s Business Value Framework to measure overall impact of UC deployment at Microsoft: o , instant messaging, presence and conferencing: 166,000 users o Voice: 80,000 users o Unified Messaging: 90,000 users Reduced Costs Improved Business Outcomes Reduced Audio Conf Costs 95% reduction ($8 million) Improved User Productivity 28 min saved/day/employee ($86 million) Reduced IT Infrastructure Costs $22 reduction/office move ($1 million) Shorten Sales Cycle 6.5% increase in proposals ($11 million) Reduced Travel Costs 10% reduction in trips/employee ($92 million) Reduced Carbon Emission 100 million miles in avoided air travel (17,000 metric tons) As of Nov 2010 Read more 14

15 New Growth Revenue Opportunity 16

16 Opportunity for Partners Addressable Market 100s of millions of endpoints ready for enhancement with Lync 150m business lines expected to move to VoIP in next 3 years (ripe for Lync) 30 million sold seats of Lync waiting to be deployed Ride the Wave 25% of medium and large US businesses say they plan to implement a UC solution in next 12 months Nearly one-third of small businesses plan to use UC now Services and Solutions $1B Global UC services market predicted to grow at about 40% YOY (IDC, Top 10 UC Predictions 2011) 17

17 Lync deployment model options comparison Target Customer Everyone Small Business Medium Business & Enterprise Medium Business & Enterprise Lync version Lync Online Lync Hosting Pack v2 Lync Server 1 Lync Server 1 Licensing vehicle Reseller/Advisor SPLA EA License Mobility or SPLA EA/VL Office 365 Multi-Tenant Public Cloud Single Tenant Private Cloud Customer s Premise Deployment Model Options 2 Unified Communications Unified Communications PBX Replacement PBX Replacement 1 Standard / Enterprise 18 2 Hybrid Model: Exchange through Lync Online (Office365) and Hosted Lync through Lync Server 2010 (Single Tenant Private Cloud)

18 IM & Presence Lync-toLync Voip / video Lync Meetings (PSTN in/out) Enterprise Voice & PBX (on-premises or via partner hosted single-tenant) (partner hosted multi-tenant) 19

19 Expand the portfolio toward UCaaS By adding greater functionality for your customers, you will better differentiate your offer + Communications Enabled Business Processes (3 rd party ISV) + Collaboration (SharePoint) $100 + Voice (Lync Enterprise Plus) + Web conferencing (Lync Enterprise) ARPU + Instant Messaging (Lync Standard) (Exchange) $7 20

20 Monetising Lync One-Time Revenue Recurring Revenue Upsell 21

21 Lync Hosting ROI Example: 10,000 Seat Hoster with 500 Seat Tenants with Hosted Lync + Exchange Service Description Virtual Dedicated Lync Enterprise Plus and Exchange Enterprise for 20 customers and users The plan Service includes Description Voice with 500 minutes of call time per user per month Virtual Dedicated Lync Enterprise Plus and Exchange Enterprise for 20 customers and users. The plan includes voice with 500 minutes of call time per user per Of these users, have telephone services as part of their plan month. Of these users, have telephone service as part of their plan. Startup Cost US$2.3M 488% 16 months US$438K 3-year Gross Margin 3-year ROI Payback 22

22 Skills Why Partner? 23

23 Focus On Your Core Business And Leverage The MSFT Partner Ecosystem Integration White Label Control Panel Value Added Component Network

24 Working With a White Label Partner Get from day one the full hosted Lync Voice service including infrastructure and provisioning on Opex per user per month Outsource the technical and pre sales complexity while focusing on your core competencies and customer base Typically expect a three months lead time to launch and deploy the service which is significantly less than the time it takes to build Support Leverage the technical and GTM expertise of the white label partner to help you sell UC Voice (sales readiness, bid support etc ) in addition to Microsoft support

25 Updated August 6, 2013 Office 365 and Partner Hosted Comparison 26

26 When Office 365 Does Not Meet Customer Needs

27 SharePoint Features Not Available in O365 Source: TechNet - Detailed Feature Comparison by O365 plan Developer Features BCS: Profile Pages BCS: Rich Client Integration Custom Site Definitions Custom Site Provisioning Full-Trust Solutions Content Features Office Web Apps Server integration PowerPoint Automation Services WCM: Analytics WCM: Catalog WCM: Cross-site publishing WCM: Faceted navigation WCM: Image Renditions WCM: Multiple Domains WCM: Topic Pages Word Automation Services 28 IT Professional Features Alternate Access Mapping (AAM) Analytics Platform Claims-Based Authentication Support Configuration Wizards Distributed Cache Host Header Site Collections Managed Accounts Patch Management Quota Templates Read-Only Database Support Remote Blog Storage Request Management Resource throttling SharePoint Health Analyzer Shredded Storage State Service Streamlined Central Administration System Status Notifications Unattached Content Database Recovery Usage Reporting and Logging Insights Features PerformancePoint Services PerformancePoint Services (PPS) Dashboard Migration Scorecards & Dashboards SQL Server Reporting Services (SSRS) Integrated Mode Search Features Content Search Web Part Custom entity extraction Extensible content processing On-premises search index Result sources Search connector framework Tunable Relevancy Site Features Custom Managed Paths Usage Analytics

28 Lync Features Not Available in O365 Source: Technet - Detailed Feature Comparison by deployment model Instant Messaging & Presence Features Persistent Group Chat Privacy Mode Conferencing Features Ad Hoc PSTN Audio (requires Partner) PSTN Dial Out (requires an ACP provider Interoperability with on premises video conferencing systems Telephony Features Ad Hoc PSTN dial out (requires Partner) Adv call controls ie transfer, forward, simul-ring need Prtner Call park Outgoing DID manipulation E-911 Dialplan and policies Resilient Branch Office Appliance Call Admissions Control (CAC) Support for Analog devices (ie Fax) Response Groups Private line Direct connectivity with PBX gateways Direct SIP for audio with on-premises IP-PBXs Click-to-call with on-premises PBX Malicious call trace Unassigned number Integration with call center solutions Federation Features IBM Sametime Federation IM/P federation with XMPP (Google Talk) Client Support CWA (2007 R2) OC 2007 R2 Other IM archiving Integration with Exchange on-premises Splitting workload (voice on-premise, IM in the cloud) Reporting (CDR, QoE) 3rd party support - Server side APIs Listed features are available in Lync Server 2013 Single Tenant Hosted deployment. For Multi-Tenant Hoster Pack.

29 Questions 30

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