Trevor Hudson
Agenda
Overview
What & How
Benefits for LARS
Benefits for Microsoft Customers
LAR 101 Promotion
Further information
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
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
Microsoft Financing – What we’ll finance
Total Solution Financing
•
– Software
• Microsoft software
• ISV software
• Third party software
License Financing (software only)
– Enterprise Agreements
– Select L or L&SA
– Open License Agreements
– Software Assurance
– Microsoft Dynamics Products
– Partner Services
• Implementation or migration
• Ongoing services
– Hardware
•
Must have a Microsoft component
•
Any combination
•
No minimum % hardware
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
Microsoft Financing – Documents & KPI’s
Easy Application Process
•
Fast credit decisions*
– 24 hours for <$100k
– 48 hours for <$500k
•
Aggressive approval policy
– >95% approval rates (ANZ)
– >90% globally
– “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
* Conditional on correctly executed documentation
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
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
Microsoft Financing – Customer Benefits
You wouldn’t dream of paying cash upfront
for your office space. Why would you for
your IT solutions?
Competitive cost of funds
Simple & easy application process.
We understand solution financing
No residuals or balloon payments
Match payments with usage.
Improve ROI – Free up cash & other credit
facilities for core business.
Customers can budget confidently over time
– predictable cash flow.
Purchase decisions made based on
requirements, not upfront cost.
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)
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 (EA’s for example) will
receive the 1% referral fee on the first year’s 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.
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
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@microsoft.com
– Trevor Hudson (Enterprise customers)
• P: +61 2 9870 2898
• M: +61 409 910 328
• E: v-thuds@microsoft.com
– Katrinia Braund (SMS&P Sales &
Program Manager)
• P: +61 2 9870 2415
• M: +61 404 827 913
• E: katbrau@microsoft.com