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Partner Profitability Modeler: User GuideA tool for Microsoft partners to estimate their business opportunities using P&L calculations, including: Revenues, Costs, Margins, Net Income, Cash-Flow, ROI

Partner P&L financial assumptions: based on partner company revenue size from ~$5M-$75M; but can scale to any partner company size, estimated calculations, or deals metrics

Available to any partner in the Microsoft Partner Program (MSPP)

Tool version 1 (US English only) includes: - BPO Suite: Exchange Online, Sharepoint Online - CRM Online: Standard, Professional

Contact: Don Hiebert (dhiebert@microsoft.com)

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Contents- Tool Access & Logon- Step 1: Company Overview- Step 2: Scenario Building- Step 3: Business Impact- Step 4: Next Steps- Additional Resources & Functionalities

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Tool Access & LogonModeler tool access is accessed via Microsoft Partner Program portal: Sales & Marketing – Business Planning: https://partner.microsoft.com/partnerprofit

Partner Self-Assessment Survey

Partner Profitability Modeler Tool & Guide

Industry Research and Case Studies

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Tool Access & Logon - continued

Logon. Only Microsoft Partners can use Tool, by using their MSPP ID to logon.1. Enter unique Email address2. Enter unique Password

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Tool Access & Logon - continued

Launch tool. Modeler tool entry launch page for first time users and returning users.1. Read a Sample Report or the FAQ (see slide # 12 for actual documents) 2. First time users do NOT need logon ID. Returning users who have Saved a file need to create a unique ID

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Step 1: Company OverviewProvides baseline of partners’ company overall business #’s - used as a reference baseline for Scenario estimations that will be created. Step 1 data are optional inputs, and are not required to complete Steps 2-4.1. Select business headquarters location2. Input current Total Annual Sales and Net Income, and estimate for Annual Revenue Growth Rate

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Provides new opportunity P&L calculations based on deal estimates.1. Select the scenario Microsoft based solution(s):- BPO Suite (Exchange Online only, Sharepoint Online only, combined Business Productivity Online Suite)- CRM Online (Standard, Professional)

2. Select the scenario deal metrics:- Input estimated Average # of Deals per Quarter and Average Deal Size by Number of Seats

3. Input estimated Average Annual Growth Rate

Step 2: Scenario Builder

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Step 2: Scenario Builder (continued)

Provides estimated 3-year details for business impact analysis.1. Evaluate ROI Summary of Revenue, Margin, ROI, Monthly Annuity Cash-flow 2. Evaluate 3-year and Totals for Revenue, Incremental Sales, Gross Profit, Operating Profit, Net Income3. Review and Edit Scenario Input Details (see next page for details)

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Provides way for partner to adjust scenario details to match their business P&L.1. Adjust Cost of Sale, Licensing Rates and %, Churn-rate, Hourly Services and Costs, Managed Services Costs 2. Adjust General & Administrative (G&A) and Tax Rate3. Adjust new business Investment Expenses like Marketing & Business Development, Staff Training, Other

Step 2: Scenario Builder (continued)

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Step 3: Business ImpactProvides estimated 3-year summary of business impact P&L.1. Evaluate 3-year summary of Revenue Increase, Net Income Growth, and Subscription Revenue (Online

Solutions) 2. Evaluate year 1-3 and total P&L projections as measured against current revenue and growth estimates

entered in Step 1

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Step 4: Next StepsProvides executive business guidance on planning and implementing modeled scenarios.1. Evaluate modeled scenario by Business Model Phases: Assess & Plan, Analyze and Adjust, and Execution

and Measurement2. Access additional Microsoft resources for selection solutions – including BPO Suite, CRM Online, and

Software plus Services websites

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Additional Resources & FunctionalitiesAdditional resources:1. Tool FAQ, see actual FAQ file2. Scenario sample Report, see actual Sample report file

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Partner Profitability Tool FAQ Partner

Profitability Tool - Sample Repor

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Additional Resources & FunctionalitiesAdditional resources and functionality.1. Change Currency – list has 63 currency options, includes a Currency Exchange Rate calculator tool2. User must Register by creating a unique ID with email and password3. User can Save multiple Scenario files, can created custom Reports, and Excel P&L files; can email a Saved

document

Microsoft does NOT collect or view any user ID information per Microsoft Privacy Policy

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