The ISV Advantage:

Partnering With Microsoft

The Market Is Changing… Microsoft understands that people are at
the center of all business success…
• Global opportunities and • Amplifying the impact of your
Global competition customer’s people is the key to
improving their business results.
• Regulatory compliance, And yours.
with a demand for world-
• Market change impacts the way
class security your customers:
• Improve operations and reduce costs
• The rise of the “always-
on, always connected” • Create innovative products
and services
network
• Develop profitable
• Web-based applications customer relationships
will change the way you • Build connections to partners
do business and supplier
No matter how the market changes, Microsoft is dedicated to
helping our partners be the most profitable in the industry –

• The largest Market Opportunity for software developers

in the industry

• The most innovative, robust and integrated Platform for

partners to build upon

• A comprehensive set of investments in the partner

channel through a Partnership that provides you with the
technical, development, marketing and sales tools you
need to increase your business potential

The combination of these three elements helps ISVs deliver

profitable solutions for the People-Ready Business
No matter how the market changes, Microsoft is dedicated to helping our
partners be the most profitable in the industry –
The Market Opportunity
Through the People-Ready Business initiative, Microsoft is
developing products designed specifically to address the business
needs of people within an organization. Products that give our
partners new opportunities to deliver compelling solutions based on
the roles that their customer’s people play.

Whether it’s 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 customer’s 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.
Better Products, Bigger Markets –
With the launch of Windows Vista and Office 2007, partners can
leverage the biggest product introductions in Microsoft’s history to
develop new, improved solutions that take full advantage of the latest
technical innovations and the largest installed customer base in
the industry

• Industry forecasts estimate more than 300 million Windows Vista

equipped PCs will ship within the first 24 months

• The installed-base upgrade forecast is approximately 200

million PCs

• The introduction of the new operating system and productivity suite

will spark an Enterprise investment cycle
Winning the Web –
Our partners have achieved unprecedented momentum in developing for
the Web. From developer education to hardware adoption, recent gains
represent 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 Java
developers has decreased 3% - Source: Global Developer Tracking Pulse Study (2006)

• Microsoft’s Server market share has consistently increased over the

past five years, by a total of 10% - Source: IDC Server Tracker, April 2006

• In the database market, Microsoft is outselling both IBM and Oracle

combined. Enterprise market share also leads the competition, with
SQL Server capturing 34% of the market - Source:
And The Market Continues To Grow –
Based on our analysis over the past several years, working on the
Microsoft platform has been the most financially beneficial option
for ISVs
• Microsoft Partners saw a 14% average increase in revenue between
2003 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%, as

compared to only 4% for J2EE developers

And the opportunities don’t stop there…

• IDC forecasts Windows Vista adoption at 56% of all PCs by the end
of 2009, which – when combined with a 9.9% growth rate in PC
sales year over year – makes for a lot of users looking to take full
advantage of their new systems by buying your new software
The Platform
 Superior Platform

Enabling An Incredible User Experience

Unequaled Platform Integration

A Rich Development Framework

Increase your productivity and reduce your time-to-market by taking
advantage of the improved, streamlined programming capabilities within
.NET Framework 3.0
• With Windows Presentation Foundation, you can create a single user
interface that can be accessed from either the client or the Web

• Utilizing Office 2007 as the natural, robust interface for independent

software solutions will free ISVs to focus their efforts on improved
functionality and customer value while providing a much broader
opportunity for license sales

• Windows Communication Foundation enables you to build secure,

reliable service-oriented applications that integrate across platforms and
interoperate with existing investments, allowing for easier connection
between disparate systems.
Embrace the power of true enterprise readiness with the industries only
technology 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 several
components of the Office 2007 suite, in combination with Microsoft
Dynamics modules, SQL Server and Windows Server to provide
unprecedented data access, analysis, reporting and distribution.

• New interoperability capabilities between programs such as Windows

Sharepoint Services, Windows Workflow Foundation and Groove 2007
allow for extensive content management, protocol application, and
team collaboration.

• Improved search functionality built into Windows Vista and Exchange

Server 2007, such as allowing administrators to search multiple email
boxes, increases the visibility an organization can have into the data that
resides within their network.
Take advantage of the latest presentation and functionality enhancements
within Microsoft software to improve your customers access to, and
interaction with, your own solutions
• Create unbelievable user interface experiences with the WinFX Windows
Presentation Foundation.

• Through the improved user interface of the Office 2007 suite, customers
will have a much easier time creating and editing dynamic, information
rich 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 by
WinFX InfoCard
 Developing software solutions based on the Microsoft Platform is
a profitable opportunity -
Microsoft OS ISV Partners achieved:
• Revenue and Customer Growth
• Substantially Bigger Deal Potential
Microsoft Partners with ISV/Software
• Shorter Sales Cycles Solutions Competency
• Faster Implementation Times Benchmark Companies without
ISV/Software Solutions Competency

Revenue Customer Deal Growth (%) Sales Cycle Implementation

Growth (%) Growth (%) (month) Time (month)

Company
Business
Deal
25% 9.1
Performance 7.1
Velocity
Execution 24% 12% 0.7%
6.1
11% 3.6
13%

IDC ISV Partner Business Performance Study, June 2006 US & UK Companies with 10+ Employees
 The Value of the
Microsoft Partnership
The Value of The Microsoft Partnership
Why Partner with Microsoft? Because we’re committed to helping you
realize your business potential.

From the very beginning, we’ll work with you to help you adopt and
incorporate our technology with your own, so you’re sure to realize all of
its benefits.

We’ll also work with you during all stages of development, testing, launch
and product marketing. We’ll be there to support your customers, and we’ll
help you drive the next generation of your business, making sure our
partnership is a long and profitable one.
The Value of The Microsoft Partner Program
The Microsoft Partner Program (MSPP) is the best way to engage with
Microsoft for a wide range of tools, benefits and services. It can help you
move your business forward by helping you:

DEVELOP
• Set yourself apart from the INNOVATIVE
SOLUTIONS

competition
• Pursue more deals and
bigger opportunities
SUPPORT PLAN MY BUSINESS INCREASE
MY CUSTOMERS MY OPPORTUNITIES

• Lower your cost of doing

business
• Improve your customer
satisfaction CLOSE
MORE SALES
Microsoft Partner Program for ISVs

The Power of The ISV/Software Solution Competency

The ISV/Software Solutions Competency offers powerful resources
designed to have an immediate impact on your business, helping you make
the most of every business day.
ISV Advisory Service • Improve employee productivity
DEVELOP Technical Briefings and revenue potential by
INNOVATIVE
SOLUTIONS MSDN Subscription expanding their understanding
of Microsoft technologies
Readiness Training
MSPP Logo Program • Reduce costs and increase your
Technical Demonstration Tool revenue potential by accessing
INCREASE
MY OPPORTUNITIES Kit Microsoft’s comprehensive marketing
Channel Builder/Solution and lead generation tools
Profiler
ISV Telesales Service
International ISV Assistance • Convert more leads into sales
Pre-Sales Tech & Competitive with the help of Microsoft’s
CLOSE Hotline sales support initiatives
MORE SALES

ISV ROI Calculator

Solution Selling
Customer Satisfaction Index • Continue to support your
Business Critical Support customers and grow your
SUPPORT business with customer insight
MY CUSTOMERS Windows Reporting Tool
tools and technical
Technical Service Coordinator support for critical issues
 ISV Competency Partner Profitability
• Partners who become certified within the ISV/Software Solutions
Competency have been proven to achieve:
– Higher revenue
Microsoft Partners with ISV/Software
– Stronger customer growth Solutions Competency
– Shorter sales cycle Benchmark Companies without
– Increased per-employee ISV/Software Solutions Competency
revenue generation

Revenue Growth Customer Growth Sales Cycle Revenue per

(%) (%) (Months) Employee

25% 24% $139,100

Company
Business
Deal
Profitability
Performance
Velocity
Execution 16% $116,300
13%
7.4
6.1

IDC ISV Partner Business Performance Study, June 2006 US & UK Companies with 10+ Employees
The Value of The Microsoft Partnership
Microsoft is committed to helping our Partners deliver profitable solutions
that meet the demands of today’s business customer.

Combining our market potential, partnership opportunities and

technology leadership with your products and services allows you to
create profitable solutions for the people-ready business, enabling your
customers and their employees to easily work together to make
informed, timely decisions that quicken the pace of innovation and open
the door to new opportunities.