Trevor Hudson

1
Trevor Hudson
2
Agenda

• Overview
• What How
• Benefits for LARS
• Benefits for Microsoft Customers
• LAR 101 Promotion
• Further information

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Overview - Rationale for Microsoft Financing

• Launched
• U.S. 2003 (US 420m)
• Aust April 2006
• N.Z. August 2006
• Microsoft Financing is a financing program
  offered and administered by
• De Lage Landen (DLL)
• DLL is a subsidiary of Rabobank
• DLL provide back office support in 11 countries,
  including US, UK, Canada, Australia NZ
• Microsoft policy direction
• Pricing
• Credit assessment

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Value Proposition

• Microsoft Brand
• Support the sale of Microsoft products
• Break even Philosophy
• Industry knowledge
• Simple, Easy Affordable
• Simple - financing agreement
• Easy - fast approval process
• Affordable low rates no fees

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Microsoft Financing What well finance

• Total Solution Financing
• Software
• Microsoft software
• ISV software
• Third party software
• Partner Services
• Implementation or migration
• Ongoing services
• Hardware

• License Financing (software only)
• Enterprise Agreements
• Select L or LSA
• Open License Agreements
• Software Assurance
• Microsoft Dynamics Products

• Must have a Microsoft component
• Any combination
• No minimum hardware

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Microsoft Financing How we finance

• Simple Principal Interest Loan Finance
• Minimum deal size - 15,000 3,000
• Repayment terms from 2 to 5 years
• Flexible repayment structures
• Monthly in arrears
• Deferred payments
• Structured payments
• Cater to annuity licenses or milestone
  implementation
• Line of credit facilities/Progress Payments
• Competitive rates
• Competitive against asset finance rates
• No application fees or management fees

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Microsoft Financing Documents KPIs

• Easy Application Process
• One shot application
• up to 500,000
• 2 page application
• over 500,000 or line of credit
• Fast Supplier payments
• 48 hours on receipt of original documentation

• Fast credit decisions
• 24 hours for lt100k
• 48 hours for lt500k
• Aggressive approval policy
• gt95 approval rates (ANZ)
• gt90 globally

Conditional on correctly executed documentation
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Benefits To Our Partners

• Increased dollar value of customer contracts
• Financed sales are, on average, 15 to 40 larger
  than traditional deals.
• Create Up selling cross selling opportunities
• Less discounting focus on payments, not upfront
  price
• Shorter sales cycle
• Less client decision time
• Define future sales opportunities
• Clearly defined payment cycles
• Provide additional opportunities to discuss
  upgrade strategy

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Benefits To Our Partners (cont)

• Stronger Client Relationships
• Become a Total Solution Provider
• Develop multi-level relationships within customer
  management
• Protect your customers
• Microsoft Financing is very competitive
• Aim is to support sales of Microsoft products
• Revenue recognition remains the same
• Direct sales (eg, EA no change)
• Indirect sales receive payment from DLL

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Microsoft Financing Customer Benefits

• Competitive cost of funds
• We understand solution financing
• Match payments with usage.
• Customers can budget confidently over time
  predictable cash flow.

• Simple easy application process.
• No residuals or balloon payments
• Improve ROI Free up cash other credit
  facilities for core business.
• Purchase decisions made based on requirements,
  not upfront cost.

You wouldnt dream of paying cash upfront for
your office space. Why would you for your IT
solutions?
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Microsoft Financing Customer Benefits
Microsoft Office Professional (55,000) Microsoft
Windows XP (22,000) Microsoft Windows ServerTM
(4,000) Microsoft Exchange Server
(8,000) Services or other Microsoft Products
(11,000)
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LAR/ESA 101 Promotion for ANZ

• Microsoft ANZ LAR and ESAs only.
• Valid 13 December 2006 till COB 30 June 2007.
• Payment of a 1 referral fee for Microsoft
  Financing transactions.
• Maximum of AUD/NZD 10,000 per transaction.
• Financing that is structured with annual billing
  (EAs for example) will receive the 1 referral
  fee on the first years loan amount.
• Transaction containing Microsoft Licensing
  including FPP, Academic, Open, Open Value,
  Select, and EA level A1, A2, and B transactions
  DO qualify for the 101 promotion.
• Transactions containing EA level C and D
  transactions DO NOT qualify for the 101
  promotion.

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LAR/ESA 101 Promotion for ANZ

• Completion of base MSF training for staff at
  LARs/ESAs IS REQUIRED to be eligible to
  participate in the 101 promotion.
• Payment for the 101 Promotion will be made by De
  Lage Landen at time of loan funding. APOC have
  NO involvement and payment is NOT related to the
  ESA fee payment.
• Engagement for this promotion is with MSF BDMs.
• Steve Kerr
• Trevor Hudson

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Microsoft Financing Resources

• Web customer site
• www.microsoft.co.nz/financing
• Brochures
• Hard copy (available on request)
• Soft copy (pdf available)
• Phone support
• Pre sales
• 0800 876 432
• Post Sales (applications documentation)
• 0800 000 229
• 0800 000 304 (fax)

• In person support
• Steve Kerr (partner support mid market)
• P 61 2 9870 2919
• M 61 448 864 168
• E v-steke_at_microsoft.com
• Trevor Hudson (Enterprise customers)
• P 61 2 9870 2898
• M 61 409 910 328
• E v-thuds_at_microsoft.com
• Katrinia Braund (SMSP Sales Program Manager)
• P 61 2 9870 2415
• M 61 404 827 913
• E katbrau_at_microsoft.com

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