Getting Ready for MPN

Anders Spatzek – Director, Partner Capacity & ReadinessJeff Edwards – Director, Partner StrategyMicrosoft Corporation

DYN02

Current Environment

Customer Demands

• Prospects value vertically specific solutions provided by trusted, capable experts

Partner NeedsMarket Forces

• A large, untapped market exists for integrated ERP and CRM solutions

• Horizontal solutions have become a commodity

• Partners need training, guidance, and systems in order to achieve growth

• They need an ability to differentiate their capabilities to customers

Microsoft Dynamics Partner Strategy

Partner Focus

Partner Size & Number

Triple the average customer adds of Dynamics VARs

Triple the number of ISVs/VARs gaining >50% of their revenue from packaged, repeatable vertical solutions

• Increase scale & profitability of current Partners

• Recruit where current Partners unable or unwilling to expand

• MBS proactively aligns focused ISVs and VARs by vertical

• Drive vertical demand• Build vertical references

and credibility

HorizontalVertical

Many small Partners Larger Partners

Microsoft Dynamics Partner Strategy

Readiness

Partner Business Consulting

Dynamics Partner Academy

Partner Business Systems

Engagement

Enhanced Support And Services

Integrated Engagement Model

New Systems & Tools

New Industry Focused Resources

Aligned to Microsoft Partner Networkbenefits, requirements, and branding

Marketing

Marketing Service Bureau

Industry Focused Investments

Referral Model

“With Partner” Vertical Marketing

Industry Strategy

Dynamics Lead Referral ProgramLeveraging the Microsoft Eco-system

Referral Partner

Implementation

Partner

Customer

Lead management

system

Microsoft

Referral system

Customer

Order is placed by transaction partner and matched with referral

1 32

Partner enrolls and refers lead to Microsoft

Microsoft qualifies lead; Implementation

Partners recommended to customer

Referral entered into Microsoft systems

4

5

• Available August 14th

• 5% fee sent to Referring Partner

• Capped at $20k

• Paid by Microsoft… does not come out of partner margin)

Microsoft Dynamics Partner Strategy

Readiness

Partner Business Consulting

Dynamics Partner Academy

Partner Business Systems

Engagement

Enhanced Support And Services

Integrated Engagement Model

New Systems & Tools

New Industry Focused Resources

Aligned to Microsoft Partner Networkbenefits, requirements, and branding

Marketing

Marketing Service Bureau

Industry Focused Investments

Referral Model

“With Partner” Vertical Marketing

Industry Strategy

Microsoft Dynamics Partner Academy

Competencies, curriculum and learning plans now available for all 7 roles.

Launched in Feb for all non-technical roles.

Launched in Jun for technical roles

Partner Business ConsultingCollection of tools, processes and services:• Business diagnostic

tool

• “Cloud” readiness assessment tool

• MSSP and sales tools

• Sure Step methodology and tools

• Catalogue of business management consultants

Microsoft Dynamics Partner Strategy

Readiness

Partner Business Consulting

Dynamics Partner Academy

Partner Business Systems

Engagement

Enhanced Support And Services

Integrated Engagement Model

New Systems & Tools

New Industry Focused Resources

Aligned to Microsoft Partner Networkbenefits, requirements, and branding

Marketing

Marketing Service Bureau

Industry Focused Investments

Referral Model

“With Partner” Vertical Marketing

Industry Strategy

What Relationship is Best for Me Tomorrow?

“I am committed to the Microsoft

Partner Network.”

“I offer ‘best-in-class’

solutions.”

“I offer validated vertical

solutions.”

Starting October 2010…

Community and Quick Starts“I have access to industry information, and through the peer

network, I connect with Microsoft and other business Partners.”

ERP/CRM

Competency

AdvancedERP/CRM

Competency

Microsoft

PartnerSPA/CSA

OptionalINDUSTRY

BADGE

70% of Microsoft Dynamics Partners

30% of Microsoft Dynamics Partners

Increased requirements

to ensure success

Enterprise Resource PlanningCustomer Relationship Management

ADVANCED Enterprise Resource PlanningADVANCED Customer Relationship Management

ADVANCED Enterprise Resource Planning GOVERNMENT AND EDUCATIONCustomer Relationship Management PROCESS MANUFACTURING

MPN RequirementsMust achieve Competency OR

Advanced Competency

General Requirements Membership in MPN Membership fee TBD Membership fee TBD• Annual Renewal• Achieve AMR industry

validation

Minimum Seat / Revenue Requirement

$20,000 direct annual total revenue

(enforced 12 months after signing)

Direct annual license revenue: Direct annual license revenue:

Mature:$50,000

Emerging:$25,000

Mature:$100,000

Emerging:$50,000

Mature: 65% Emerging: 40%

Mature: 85% Emerging: 60%

yes

3 ERP 5 ERP 7 that are industry-specific

yes

At least 2 different people required

At least 3 different people required

At least 6 different people required

1 person 2 people 2 industry-specific people

1 person 1 person

2 people 3 people 6 people 4 people

1 person 2 people 3 people

Authorized reseller of a Microsoft industry solution(s)

(either CfMD or AX certified)

2 3

Includes 10 customer references

Tested SolutionList solution

Minimum Seat or Revenue Requirements:

ERP Microsoft Partner(SPA)• $20K Direct

Annual Total Revenue (enforced 12 months after signing)

ERP Competency• Annual License

Revenue:• Mature Market -

$50K (or $250K influenced)

• Emerging Market - $25K (or $125K influenced)

Advanced ERP Competency• Annual License

Revenue:• Mature Market -

$100K (or $500K influenced)

• Emerging Market - $50K (or $250K influenced)

CRM Microsoft Partner (CSA)• 20 Annual Seats

or $10K Annual Total Revenue

CRM Competency• Mature Market:

150 Annual Seats or $100K Annual Total Revenue (or $250K influenced)

• Emerging Market: 75 Annual Seats or $50K Annual Total Revenue (or $125K influenced)

Advanced CRM Competency

• Mature Market: 300 Annual Seats or $200K Annual Total Revenue (or $500K influenced)

• Emerging Market: 150 Annual Seats or $100K Annual Total Revenue (or $250K influenced)

MPN Requirements

General Requirements Membership in MPN Membership fee TBD Membership fee TBD

$20,000 direct annual total revenue

(enforced 12 months after signing)

Direct annual license revenue: Direct annual license revenue:

Mature:$50,000

Emerging:$25,000

Mature:$100,000

Emerging:$50,000

BREP Revenue Recapture Mature: 65% Emerging: 40%

Mature: 85% Emerging: 60%

yes

3 ERP 5 ERP 7 that are industry-specific

yes

At least 2 different people required

At least 3 different people required

At least 6 different people required

1 person 2 people 2 industry-specific people

1 person 1 person

2 people 3 people 6 people 4 people

1 person 2 people 3 people

Authorized reseller of a Microsoft industry solution(s)

(either CfMD or AX certified)

2 3Tested SolutionList solution

BREP Revenue Recapture Requirements (Selling VARs only):

ERP Microsoft Partner(SPA)• N/A

ERP Competency• Mature: 65%• Emerging: 40%

Advanced ERP Competency• Mature: 85%• Emerging: 60%

CRM Microsoft Partner (CSA)• N/A

CRM Competency• N/A

Advanced CRM Competency• N/A

MPN Requirements

General Requirements Membership in MPN Membership fee TBD Membership fee TBD• Annual Renewal• Achieve AMR industry

validation

$20,000 direct annual total revenue

(enforced 12 months after signing)

Direct annual license revenue: Direct annual license revenue:

Mature:$50,000

Emerging:$25,000

Mature:$100,000

Emerging:$50,000

Mature: 65% Emerging: 40%

Mature: 85% Emerging: 60%

Participate in Satisfaction Survey

yes

Customer Business References

3 ERP 5 ERP 7 that are industry-specific

yes

At least 2 different people required

At least 3 different people required

At least 6 different people required

1 person 2 people 2 industry-specific people

1 person 1 person

2 people 3 people 6 people 4 people

1 person 2 people 3 people

Authorized reseller of a Microsoft industry solution(s)

(either CfMD or AX certified)

2 3

Tested SolutionList solution

Satisfaction Survey Participation and Customer Business References:

ERP/CRM

Microsoft Partner(SPA/CSA)• N/A

ERP/CRM Competency• Participate in

Satisfaction Survey: N/A

• Customer Business References: 3 (N/A if non-selling ISV)

Advanced ERP/CRM Competency• Participate in

Satisfaction Survey: Yes• Customer Business

References: 5 (N/A if non-selling ISV)

MPN Requirements

General Requirements

Membership in MPN Membership fee TBD Membership fee TBD

direct annual total revenue(enforced 12 months after signing)

Direct annual license revenue: Direct annual license revenue:

Mature:$50,000

Emerging:$25,000

Mature:$100,000

Emerging:$50,000

Mature: 65% Emerging: 40%

Mature: 85% Emerging: 60%

yes

3 ERP 5 ERP 7 that are industry-specific

Partner Service Plan Requirement

yes

At least 2 different people required

At least 3 different people required

At least 6 different people required

1 person 2 people 2 industry-specific people

1 person 1 person

2 people 3 people 6 people 4 people

1 person 2 people 3 peopleTested SolutionList solution

Service Plan Requirement

ERP / CRM

Microsoft SPA and CSA Partners• N/A

ERP and CRM Competency• N/A

Advanced ERP and CRM Competency• Required (Foundation

Plan is the minimum)

MPN Requirements

General Requirements

Membership in MPN Membership fee TBD Membership fee TBD

$12 months after signing)

Direct annual license revenue: Direct annual license revenue:

Mature:$50,000

Emerging:$25,000

Mature:$100,000

Emerging:$50,000

Mature: 65% Emerging: 40%

Mature: 85% Emerging: 60%

yes

3 ERP 5 ERP 7 that are industry-specific

yes

Personnel Certification/Accreditat

ion Requirements

At least 2 different people required

At least 3 different people required

At least 6 different people required

1 person 2 people 2 industry-specific people

1 person 1 person

2 people 3 people 6 people 4 peopleTested SolutionList solution

Personnel Certification/Accreditation Requirements

ERP / CRM

Microsoft SPA & CSA• 2 Application

consultants or developers

• 1 Implementation methodology person

ERP and CRM Competency• 1 Sales

Specialist (N/A if non-selling ISV)

• 1 Pre-Sales Specialist (N/A if non-selling ISV)

• 3 Application consultants or developers

• 2 Implementation methodology people (1 if non-selling ISV)

Advanced ERP and CRM Competency• 2 Sales Specialists

(N/A if non-selling ISV)• 1 Pre-Sales Specialist

(N/A if non-selling ISV)• 6 Application

consultants or developers

• 3 Implementation methodology people (1 if non-selling ISV)

MPN Requirements

General Requirements

Membership in MPN Membership fee TBD Membership fee TBD

Direct annual license revenue: Direct annual license revenue:

Mature:$100,000

Emerging:$50,000

Mature: 85% Emerging: 60%

yes

5 ERP 7 that are industry-specific

yes

At least 6 different people required

2 people 2 industry-specific people

1 person

6 people 4 people

CfMD Solution Level3 people

CfMD Solution Level:

Non-Selling ERP /

CRM ISV

Microsoft Partner• List solution

(includes 2 customer references)

ERP and CRM Competency• Tested Solution

(includes 3 customer references)

Advanced ERP and CRM Competency• Certified for

Microsoft Dynamics (includes 10 customer references)

Building Your Brand Value

Validation of Dynamics Solutions Capability and Success

Validation of Ability to Sell and Implement Repeatable, Vertical Solutions

ADVANCED Customer Relationship Management Discrete Manufacturing

Validation of Industry-specific Expertise and Customer

Satisfaction

Partner Ready

Summary

Great Opportunity

Betting On Existing Partners

Success Is Shared

Key Actions

Start Now!! October will arrive quickly

Build a 3 Year Growth Plan with your PAM

Take advantage of all our investments

Explore the AMR Industry Certification, get ready for the MPN Industry Badge

Benefit from the turnaround

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© 2010 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to

be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.