Donal Barry Channel Operations Manager

1. Donal Barry Channel Operations Manager Microsoft Partner Conference 2004

2. FY04 Customer Satisfaction Survey APOC Results Microsoft Partner Conference 2004

3. Agenda • Introduction • Survey Format • Key Findings • World Wide • APOC • Verbatim • Next Steps • Lessons Learned Microsoft Partner Conference 2004

4. Introduction • The efficiency and capabilities of Microsoft’s channel partners will have a significant impact on the company’s profitability and long-term success. • And the way Microsoft interacts with and supports its channel partners is essential to this success • Part of this ongoing process is measuring and understanding levels of satisfaction among channel partners at appropriate intervals, and providing a convenient route for channel partners to express their concerns and ideas which bypasses their normal routes of communication • This survey has been conducted among distributors and resellers worldwide • This survey is designed to profile the global business in terms of: • Pinpointing areas of relative strength for Microsoft • Identifying areas of relative dissatisfaction, and profiling these to enable Microsoft to take appropriate corrective actions Microsoft Partner Conference 2004

5. Survey Response • 1426 survey invitations were sent (worldwide) • An online methodology was employed • Partners invited to the survey via personal email • Both emails and the online survey were made available in English, Chinese (Mandarin / Cantonese), Korean and Japanese • Overall, the online survey was completed by 766 people, approximately 57% of those who received the invitation: • This compares well with 59% in 2003 • Response rates for this type of survey vary according to channel profile but NOP World Technology would consider 40% to be a very good response rate for a survey of this type • Response rates by ROC: • 48% in EOC (2003 = 46%) • 80% in NAOC (2003 = 88%)* • 64% in LOC (2003 = 66%) • 59% in APOC (2003 = 80%) Microsoft Partner Conference 2004

6. Key Findings - Worldwide • Overall satisfaction is at a comparative level across all regions • But a significant minority of partners are dissatisfied with specific aspects of their dealings with Microsoft • Key areas for improvement – in order of priority – are: • Ops query management • On-line tools and systems • Fulfilment / delivery • Credit / collections • Turnaround time on processing agreements • Some of the above will apply to all four regions, but it should be noted that each region has its own problems and areas of opportunity for Microsoft. Microsoft Partner Conference 2004

7. Key Findings - APOC • Overall position in APOC is close to worldwide scenario, but: • OEM Distributors significantly less satisfied on a range of parameters • Overall there a number of clear improvement opportunities for APOC where partner dissatisfaction is higher than average: • Tools & Systems (better understanding) • Monthly price list process • Returns process • Product launch information/communication • Driving partner business potential (particularly in terms of merchandising and marketing support) • ESA model (MsInvoice) • Fulfillment (better understanding) Microsoft Partner Conference 2004

8. A minority of partners expressing dissatisfaction What is driving dissatisfaction with On-Line Tools and Systems? “Contracts still have to be printed out and filled in by a manual means.”surely MS can become online??APOC LAR: “Why don’t we have access to the MVLS site as it currently does not allow LARS access to their customers site and it is our customers who rely on us for assistance with these areas, it has been a hindrance in our customers being able to take advantage of their SAE benefits to date.” Additional training on tools would be of great benefitAPOC LAR: “Allows us to search for relevant info as and when needed. However, we wish that Microsoft can streamline the number of partners-accessed websites so that partners can visit one site to perform everything that is in, Explore and MOET.” session on tool features would be greatAPOC LAR: ….However high satisfaction evident among most “All the tools are useful and provide us accurate information.”APOC Disti: “Convenient to use; fast and accurate; not too complicated.”“but we are probably not using all functionality”APOC LAR: “Operation of the system is smooth; timely notice of status; upgrading and updating is good.”APOC LAR & APOC Disti: “The system is perfect; almost everything can be done on-line; efficiency is vastly improved as there is no need for human adjustment and decision.”APOC LAR & APOC Disti: Microsoft Partner Conference 2004

9. What is driving dissatisfaction with Pricing? Difficulties downloading price lists and inconsistencies in price are key issues which need to be addressed “[There are] too many changes between when pricelist is announced (usually around the middle of the month) and when it's finalised.”APOC Disti: “The price list is hard to download. We always face the 'time out' problem.”APOC LAR: “There are cases when I fail to check the changes of some products after I have downloaded, and adjusted the price list each month.”APOC Disti: “There is often discrepancy between the pricelist we see and MOET; [we] haven't received notice regarding the end / beginning of the old / new SKU.”APOC LAR and APOC Disti: Microsoft Partner Conference 2004

10. Very Dissatisfied(1-2) Dissatisfied (3-4) Neither / Nor (5) Satisfied (6-7) Very Satisfied (8-9) APOC - Satisfaction with Pricing Mean The monthly price list’s timeliness 7.2 The effectiveness of the monthly change notifications 7.0 The overall monthly price list process 6.9 The timeliness / quality of our response to any pricing issues 7.0 The monthly price list accuracy 6.9 The ease of viewing / downloading the price list 6.8 The level of information you receive regarding new SKU offerings on the PL 6.8 QM1: Thinking about pricing, please rate your satisfaction with the the following….. Microsoft Partner Conference 2004

11. The vast majority of partners do not have a problem with the personal element of their relationship with Microsoft • many are extremely positive But there are still a minority of partners who remain dissatisfied What is driving satisfaction / dissatisfaction withChannel Operations Manager? “They are very professional, quick to reply to requests and in constant contact with our organisation.”APOC LAR: “The Channel Managers know what the LAR requires and understand the clients requirements. They work well with the LAR ensuring that quality and timeliness is fulfilled.”APOC LAR: “I find our Channel Ops Mgr always receptive, and always returns my calls or emails in a timely manner. He is easy to deal with and very responsive. He will work with me to resolve a matter, no matter how long it takes. He is also very receptive to receiving comments on improvement, and always takes on board my feed back.”APOC LAR: “The service level has dropped considerably, I have have reverted to using other resources….. Quick turnaround does not happen any more.” APOC LAR: Microsoft Partner Conference 2004

12. Effectiveness of communications: Receiving inappropriate answers to queries submitted Timeliness of communications: Response times are not satisfactory Language used: Terminology often leads to confusion / ambiguity for some to understand What is driving dissatisfaction with communication received from APOC?Much of the focus is on the current inadequacy of responses “Sometimes it may be for specific situations, and we need an answer usually faster than we receive it. MS need to be aware the market demands this fast response.”APOC OEM Disti: “I often find that responses to my emails seem like the person at the other end hasn't read the query APOC LAR: “'Most of the responses seem to be repeated and not tailored to the query sent through initially.”APOC LAR: “Sometimes emails are lost in translation. Not all questions are answered completely, and require a number of emails to get the full story. Emails that contain scenarios and a number of questions; sometimes only the first question is answered and the rest left. APOC Disti: Microsoft Partner Conference 2004

13. Some partners believe that the process is cumbersome, answers take too long to receive and are sometimes inaccurate What is driving dissatisfaction with the Query Management Process? “'In almost every instance where I have logged a query with APOC, the response has taken a couple of days, inaccurate information was provided and my level of confidence in the responses I receive is very far from acceptable.” APOC LAR: However high levels of satisfaction also associated with this area “The process for sending emails to APOC is very good. You are issued with a log number and response to confirm the query has been received. After you have received an answer to your questions (this is sometimes a bit slow), then you are sent the closing email to confirm the job is finished. The process is very good. Sometimes the responses are just slow, and unfortunately do not answer the question that we asked. This is not a problem with the process, just the way the process is executed..”APOC LAR: “The processes are well documented and supported by strong SLA's. Generally speaking the day to day stuff is managed well.” APOC Disti: Microsoft Partner Conference 2004

14. What is driving dissatisfaction with the Level of information received on new product launches? Lack of information prior to launch is a key source of dissatisfaction “I have found a new product will be released without any information from Microsoft that the product is due for release I have found it really difficult to get much information on the products. Would be nice to receive a spread sheet every month with all the products due for release as well as URLs to websites for additional information”APOC Disti: “'Information is provided too near the launch, and sometimes [is] rather inaccurate information with last minute changes.”APOC Disti: “'Microsoft's websites are extremely good at providing product white papers, comparison charts, licensing information etc. Whenever a new product is released, you can usually find everything you need on the website…….However there is only very limited information pushed through the partners when new products are released. It is rather uncommon to see demonstrations of new products in action, which is important to help us sell the product.”APOC LAR: “There is no forecast regarding launches of new products; no notice about replacement of old products with new; coding of new products is very confusing; and almost no training for relevant new products.”APOC LAR & APOC Distributor: Microsoft Partner Conference 2004

15. What is driving satisfaction / dissatisfaction with the Accuracy on Processing of Agreements? Generally, accuracy on processing of agreements is not a major cause of dissatisfaction “Prompt and accurate processing.”APOC LAR: “You guys really check through! A couple of times I've left out some fields accidentally and have been informed before being processed.”APOC LAR: “'Processing of Licensing Agreements is always on time. Every time our customer needs the licenses, we are always on time to [be able to] give them.”APOC Disti: “They are very good at picking up any errors and querying products that may not be eligible.”APOC Disti: Microsoft Partner Conference 2004

16. What is driving satisfaction with the Credit and Collections Dept? The vast majority of partners are very satisfied with this area of service “The Credit & Collections department is very easy to deal with and provide a very concise and easy to read monthly statement.”APOC LAR: “'Documentation in provided in a timely manner with little or no mistakes. Staff are pleasant and helpful.”APOC LAR: “'I get a very quick response with regards to adjustment requests which means I can advise my teams swiftly to adjust items out of our system. Queries relating to rebilling are answered quickly and understandably which is sufficiently acceptable from this end.”APOC LAR: “The replies come promptly and the requests are handled clearly.”APOC: OEM Distributor: Microsoft Partner Conference 2004

17. What is driving Satisfaction with Business Potential? Strength of relationship between MS and partners clearly evident “Microsoft has been very supportive of our company's potential and capability as a total solutions partner.”APOC LAR: “From an operational perspective the level of support and understanding of our global needs has resulted in operational improvements. Visibility and access to MS people has improved communication, and hence processes”APOC LAR: “Microsoft are great to partner with. The staff are great; [we] very rarely have issues and these are generally sorted out.”APOC Disti: “'Microsoft plays a large part in the success of our business, so support and good operations are imperative for success. MS offers both.”APOC LAR: “'Microsoft is a very important and supportive partner who understands our business well and effectively creates a win/win relationship with us.”APOC Disti: Microsoft Partner Conference 2004

18. Next Steps • Each "in country" Channel Operations Manager to complete a further analysis of their country. • Formalize, a plan, defining action items, ownership, and timelines for completion of partner feedback taking into consideration (external influences) i.e. that some actions will require us to work with areas external to Channel Operations, and the impact this will have in regards to committing to actions/timelines). • Part of goals & objectives to ensure follow up takes place. • Feedback to Senior Management with regards to actions taken & closure of issues or timelines that are raised to finalise the FY04 survey Microsoft Partner Conference 2004

19. Lessons Learned • Kick off the project earlier (localisation, timelines) • The APOC survey was too long. And the good news is………. It will be a cut down version for FY05 Microsoft Partner Conference 2004

20. Microsoft Partner Conference 2004