mercial services - executive review nzlrp商業(yè)服務(wù)執(zhí)行審查

LRPforChinaCommercialServices-preliminarySeptember,2013AgendaSectionTopicsOwnersTimeGeneralUpdateActionstatusandgeneralupdatessincelastreviewDoug5minutesScorecardUpdatedscorecard,Office365andAzurebetas,capacityplanTom,Nilesh,Dayne,Steven30minutesLeadtoCashGolivecriteria,MSITbudgetupdateTheresa,Jim10minutesLRPStrategyframework,herooffersRalph,Alex,Janet45minutesFY14HighGrowthScenariosforO365SMB:FY13actual:11partners,3deals/partner,100seats/dealBRICbenchmark:100partners1styear,5deals/partner,7seats/dealTier1partnerrecruitmentontrack,Tier2PartnerrecruitmentinprogressChannelDeveloperincentivetoencourageearlyinvestmentCA:Add1dedicatedSSP1winperquarterperAMPSG:ResettargetforFY14,inclusionine-city/HealthindustryEPG:Identifymarketmovingdeals(5k+)inkeyverticals,FSI,Retail,Manu.ExtenddeploymentfundafterEOPAlreadyinATUacctplanning/reviewSource:TeamanalysisFY14HighGrowthScenariosforO365ExistingbudgetStretchscenarioResourcesIncubationthemajorbusinessownerofdrivingsaleswithSMS&GcontributingandrampingupcapabilityduringtheprocessIncubationheadcountfillontime(currentplanendofOct)–CY/EricSMS&Gsalestodrive29%ofoptyreplicating~2scenarios1–LynnProvisioningresourcesforPOC/testingforallopportunities-George/TomFoundationProductionSLAsavailableandfeasibleMomentumin6keysectors(Retail/FMCG,hi-tech/device,Internetcompanies,auto,gaming,FSI),2winseach-PipelineinplaceNailingdownglobalandMNCaccounts(creditallocation)–BenoitRevenuerecognition(needcontingencyformanualworkaroundagreeduponbychina/subfinance/apoc)–CharleneLew?MCS/Premieralignment–Yen/WW?GAplannedinQ3-George/TomWhatisneededTarget:13.49MCurrentpipeline:10.2Mpipeline,generatedbyIncubation3MofwhichalreadysignedCSFAorMOUWhatdoesitmeanSalesmotionSM&SGsalesteamdrive50%ofopptyreplicating4scenarios(digitalmarketing,backup/DR,appdev&testing,DCextension)Hybridscenarioslighthousesbuiltin10-15largeSOEsLighthousesseeninGovernmentsStorSimpleinChinatohelpdriveCAM-E/SdealsSupportCapacity/capabilityformigrationandafter-salesservices(~140deals)Escalation/workaroundforlackofbiddingqualificationforcertainSOE~20MSuperCrazy~35MNotyetcompletedDoneorontimenoissueWWFY14MALpenetrationtarget:18%EstimatedARPC($):Top-500KMaj-200KCAM-E/S-100KPSG-1MWWFY14ARPC:$52KforMature$37KforEmergingFootnote1:2outofdigitalmarketing,backup/DR,appdev&testing,DCextensionSource:TeamanalysisChinamarketcontextsimpactingourstrategyChinamarketHardwareandmunicationinfrastructuredominatemonetization40%commercialITspendinginhardwareinChinavs.20%intheUSmunicationinfrastructurespendingrepresents50%softwareandserviceITspendingvs.30%inUSPerdevicesoftwareandservicespendingextremelylow,16%ofUSand72%ofIndiaTotalITspenddrivenbyLBswhileSMBremainasizablemarketforabove-InfraIT~6MnenterprisesinChina,~2Mn1withPCIB>5,largeenterpriseswith1,000+employeesconstitute38%oftotalITspendNon-infraITspendingisfragmentedacrosssegments(only38%inlargeenterprisevs.69%intheUS,sizablenumberofsmall-mediumcompanieswith100-500employees,constitutinganother35%ofITspending,restofthemarketsharedbyalong-tailofSMBspayingonlyforhardwareandinfrastructure)VeryfewplayershavesuccessfullybuiltsignificantreachtothebreadthSMBsotherthantelco,banks,selectedserviceproviders(e.g.Baidu,Ali,Tencent)andhardwareplayers(e.g.Lenovo)1.Numberofenterprisesextrapolatedfromcensusdata2.Officemonetizerate=4-year(3-yearforEPG)cumulativeOfficemonetizedPCIB(Officecal)/marketPCIBPublicCloudcompetitionisLocalwithBATaggressivelybuildingafull-stackCloudplayBATtakeupto

~65%ofpubliccloudmarketsharetoday,withtherestbysmallnewcomersandquasi-cloudhostingproviders;AWS/GooglenotinChinaAggressiveM&AbyBATintherecent2yearstofillthestackwithbusinessAPItomarketaccess(49publicallyknownacquisitionsinlast2years)BATcloudmonetizationmostlythroughbusiness-specificPaaSandrevenuesharingDemandinSaaSgraduallypickingupduetomobilityandexternalcollaborationbutsupplierlandscaperemainfragmentedSaaSmarketgrowthacceleratedinthepast2years(~40%CAGRvs.~15%3yearsback)toreach~$3BnTopSaaSsolutionsareCRM(31%ofwhichisSaaS),HRM(26%),automatedmgmt(19%)Top5playersonlytakeupto~50%ofmarketinCRM,~55%inHRM,~18%inautomatedmgmtBoomingInternetspacewithincreasingverticalizationandmobilityTotalInternetcompanyrevenuetopped$76Bnin2013,andisexpectedtogrowwith~25%CAGRinthenext3yearsLargestsectorsaremerce($14Bn),gaming($9Bn),O2O($7Bn),onlineadv/digitalmarketing($16Bn),wheregaming,verticalmerce,onlinead/digitalmarketingareprofitableBiggestmobilemarketworldwide(1.2Bnsubscribers)withincreasingsmartphonepenetration(34%today),disruptingonlineincumbents.E.g.surgingmobilegaming(~90%YoY),andlocationbasedO2O(~79%YoY)Enterpriseonlineservicestillsmall(~$200Mninproductivity)withmostlynicheplayersoffree-miummodelGoogleappnotreliableexceptonVPN;amixoflocalproducts(e.g.,QQ,WPS)nonethelessLowMSinstallbaseofpaidserviceacrossthesegmentsForCTM&above,6%

Officemonetizerate2inChinavs.30%inIndiaand62%inUS;forSMB,2%

inChinavs.5%Indiaand8%inUSSeriouspiracyissues,unlikelytodiminishsignificantlyinthenearfutureLowEApenetration,63%formajor,~40%forCAM-EandCAM-S,only20%forCTMLargeenterpriseITdemandstillLOB-drivenandwhite-spaceforpubliccloudITspendingprimarilydrivenbyhardwarepurchase,privatedatacenterconstructionandmission-criticalLOBappsbuiltbycustomdevLikelytoshiftgraduallytowardoptimization,andcustomerfacingcapabilitiestogainfasterspeedtomarketandcompetitivenessaseconomyslowsSignificantproportionofSoEs,notTCO-sensitive,long-standingcautiononsecurity,andincreasingsuspiciononforeignserviceBlurryboundarybetweenIT/infrastructureAverageinternetspeedforChinais1.7Mbps,farbehindtheworld’saverage(3.1Mbps),affectingcloudserviceperformanceMoreopentowardprivateinvestmentin.Firstbatchofvirtualoperatorlicenseexpectedtobeissuedthisyear;retailers(e.g.,360buy,DXT)andbusinessprocessmanagementserviceproviders(e.g.,Kingdee,Ufida)aresaidtobeactivelyparticipating12345678Source:TeamanalysisCustomervisitsshowlowITsophistication,significanthand-holdingneededtoincubatedemand,deployandprovisionservices9StrategicPlanningFrameworkforCommercialServicesStrategyframeworkSource:TeamanalysisTraditionalITservicesHardwareTelcoservicesITinfrastructureITsupportingmgmt.processITsupportinghorizontalbusinessprocessITsupportingindustry-specificappsStrategicPillarsChinaVision:transformourbusinessinChina,achievemulti-billiondollarrevenueandeglobal#2acrossallsubsidiaries,andhelpenableandaccelerateChinesecompaniestransformationthroughinnovationandreliabilityofenterpriseservicesGTMCapabilitiesrequiredRoadmap/asksFY14-15FY16-17FY18Ecosystem:Channel:Buildadedicated“cloudchannel”toscaleupmktreach,recruitinginternet-affiliatedplayersintochannelpartnersPartners(SI,migration,services):Handholdwillingandcapablepartners(currentAllianceiftheyarewilling,Born-incloudCSVs),recruitpltfmplayerstodevelopBusiness-PaaS,SupportforBigDatascenariosforMulti-clouds/cross-cloudsmanagement(TBD)Financialimpact($M/seats)HybridcloudAzure(publiccloud)On-Premise(incrementaltoexistingmotion)O365Considerradicalapproaches(e.g.,devicebundle,servicebundle,freemium)tocaptureandmonetizethenon-payingsegmentBuildhybridcloudvaluepropositiontargetingpriorityverticalsonmeetingtheirtrendofmobility,externalcollaboration,andsupplychainintegrationManuf&retail:SRM,retailpointmgmtBank&insurance:E-banking,instantclaimEnergy&utilities:multi-scenariosGov:e-governmentCross-verticalscenario:Backup&DisasterRecovery,Automatedmgmt(OA),CRM,HRM,BIPrioritizedpurepubliccloudoptys:Wave1:high-tech,retail,FMCG,auto,InternetLargedeals:banking,transportNewbreed:vertical,incumbentO2OLighthouse:govG2C,educationScenario:databackup,webhosting,dev&testing,connecteddevicemgmt,vertical-specificCapturethetoppayingsegmentofSMBs:Leadwithservicescustomerspayfor(e.g.,mail,communication,storage)DevelopSMBbasicservicebundlearoundkeypayingscenarioWinwithaTCOvalueprop.Moveupthestackplay:Azure:Ecosystembiz-PaaS:Mobile/webgamepltfm,Precisemktingmodules,enterprisemobility/securityPaaSStickyfuturegiants:DSP,Map/POI,userdata/accessLandglobalmotionswithChinatweaks:DriveEAmigration,focusonasetoflighthouseprojectsExpandaddressablemarketto>10mnkiosk/mobileworkersLeveragelegalizationasareinforcementmechanismO365:SaaSplatformsforbusinessprocessmanagement(CRM,OA,HR/workforceetc.)VASplatformsforIM/VOIP,conference,callcenterPay-as-you-gobillingplatformand3rdpartypaymenttools(TBD)Newbizmodel:RevenuesharingwithBusiness-PasspartnersDevicebundlesCustomerroyaltyprogramsCloudfinancingMSOwncapabilities:Offer:“Create“MSWrapper”integratedoffering,incl.Azure,on-premise(WS,SC,SQL),h/w(StorSimple),O365,userdevices,andinvestmentforsolutionbuildingservicesProduct:LandtoChina-StorSimple,BigdatafeaturesTechnical:DedicatedexpertiseinChinatosupportbuildingofecosystembusiness-PaaSBizDev:Buildstrategicallianceonvaluechain,developrevenuesharingdeals231456TBD200-300Mn100-200Mn200-300MnFY14:$13.5Mn(cloud)+$xxK(O365)FY18:~$1Bn(cloud),$500Mn+(O365)Expandalonguservaluechain(workinginprogress,tobefurtherinvestigated)Monitoringtoolsandevaluationservices(TBD)abcxxPotentialopportunity(FY18)~230MnTBD~300MnTBD~320MnLargeenterprisesegmentSMBsegmentAllsegmentsStrategies:opportunitiesandrequiredGTMcapabilitiesIImplementationRoadmapandasksIIRevenueforecast(workinginprogress)IIIOpportunitiesGTMcapabilitiesSource:PreviousprojectdonebyMcKinseyin2011;TeamanalysisLandglobalmotionwithChinaspecificitiestocaptureopportunitiesinpubliccloudPubliccloud1Financing&supportstart-upcompanieswithhigh-growthpotential15End-usercloud

devicebackbone16ManufacturingverticalSaaSadoptionofEDA,BI&CRMworkload12BidforcontractofSmartCityprograms&publiccloudbasedG2B/G2Ce-govprojects

12Strategicpartnerwith2ndtier&below,esp.B2Cvertical&go-onlinecompanies13Strategicpartnerwith2ndtier&belowSNS11Strategicpartnerwithglobalizationstreamingvideoplayers14Onlinestoragemarketpresence3SMBOnlineSaaSmarketplace&end-to-endCloudofferingenablementLifeScience–buildSaaSofGeneanalysis4SecuritiesanalysissoftwarebuiltonCloud5ChinapubliccloudopportunityB2BB2CSupport

largebanksonproductdev&testingwithHPCfeature610Movemarketing-heavingcompanies’

E-marketingmini-site&eventwebsitestocloud8Helpmunicipaleducationbureautoestablishcross-schoolsE-educationplatform7Helpmassofcity&ruralbankstoquicklyestablishITsystem9ProvidepubliccloudservicestoenabletelematicsservicecapabilitiesDatastorage,backup&DRGlobalscenariosModerndatacenterModernapplicationsAppdev&testingDatacenterextensionBIonAzure(HPC)Customapps/websiteIndustrysolutionsSupporttheeffortofinternet-basedO2Oincumbentsineachverticaltoexpandintomobility17Providepubliccloudserviceforpeer-to-peeronlineeducation18MakeMShybridcloudtheenablerofChinaenterprises’demandformobilityandcollaborationwithexternalpartiesBankingManufacturing&TechRetailGovernmentInsuranceResearchinstituteOthersDisasterRecovery(infra,app,businessprocess)DisasterRecovery(infra,app,businessprocess)Automatedmanagement(aka"OA"inChina)SRMHRMCRMInstantclaimRetailPointofsalemanagementR&DBI**Shortterm:gainanimmediatefootholdMiddleterm:conductintensiveclienteducationandbuildshowcasesLongterm:stayopportunistic,closelyfollowE-bankingE-gov’tEnergy&utility,mainlyadoptpopularenterpriseapplicationsoncloudHugeadoptionpotentialinlargeenterprisesintheverticalBankingandinsurance,withpotentialtoadoptcloudsolutiononverticalfeaturedscenariosInstantclaimofpropertyinsuranceandE-bankingaregoodusecaseforindustrypenetrationInsurancealwaysfollowlighthouseinbankingandinsuranceindustriesonITinnovations,soshowcasecaninfluencebothindustriesManufacturingandretail,whichhavemultipleusagescenarioswithadoptionpotentialCloselyengagewithenduserstounderstandtheirneedsPartnerwithtopITsolutionprovidersforcustomeraccessMarketsize*

14-18,$BnHybrid

cloud

adoption

readiness

DisasterrecoveryInstantclaimofpropertyinsuranceRetailpointofsalemanagementBI**R&DCRMAutomatedmgmtSRMHRME-bankingE-governmentLowreadinessinshorttermHighreadiness6123475891011KeymarketforcesMobilityandcollaborationwithexternalpartiesareemergingdemandsforChineseenterprisesLBrequireanewcloudsolutionratherthanpubliccloudtowelladdresstheirdataprivacyconcernOpportunityportfolioandimplicationHybridcloud–Opportunityoverview2Source:IDC;Enduserinterview;Literatureresearch;Teamanalysis*UsecorrespondingSW&servicerevenuesizeasproxytoestimatetheopportunityattractiveness**BIreferstointernalbusinessdecisionsupportSW,suchasSAPBIandOracleBIEnergy&

UtilitySource:TeamanalysisFirewallMSonpremisesolutionApplication–publicworkloadSQLWindowsServerHyper-VApplication–privateworkloadPubliccloudOn-premiseAzureEnterpriseplatformDatamgmtInfrastructureApplicationengine……HRMCRM……HRMCRMSystemcenterPartners’solutionMSsolutionSIsolutionHybridcloudstackarchitecturemappingwithpotentialtypesofITplayersObservationPartnerwithon-premisesolutionprovidersforhybridcloudsolutionco-developmentandsalesCloud-migratingISVManagedservicesprovider(wholeworkloadservicebuilder),e.g.IToutsourcingvendorsNeedtoconsiderwrappertypeofofferingtoepirateissue,buttheexecutionneedstobediscussedImplicationsFormstrategicalliancewithsolutionpartnersandSIMSdesignstheWrappersolutionandprovidestailoredofferstodifferentpartnersMSandsolutionpartnersco-developsolutionSIdeployandimplement2-phasestrategicapproach:Short-termlighthouse:MSleadsprojectsolutiondevelopmentworkingcloselywithcloud-migratingISV/managedserviceprovidersandselectswillingSIon-premiseintegrationandimplementationcapabilitiesLong-termscale-up:encourageSI,esp.whofocusonmanufacturing,retail,banking,insuranceandenergyverticals,toadviseWrappersolutiontotheirvastcustomerpoolHybridcloudGTMtakeawayHybridcloudwouldrequirewrappertypeofofferingandpartnerwithcloud-migratingplayersHybridcloud–GTMimplication2LandglobalO365motionsinthelargeenterprises–MS-ledsalesmotionO365–Globalmotions3TodayGoNoGo?VisionforProject?Need?Business&TechAlignment?BusinessCase?Fit?Gaps?Mitigation?MigrationDeploymentPlanFeasible?ProspectingFY14selectioncriteriaOwnership:MNCJVs(incl.“JapaneseModel”)andLocalPrivate5Verticals:Mfg,Retail/Hospitality,ProfServices,HiTech,Const/RealEstateGeo:BJ,SH,GD,JS,ZJSize:excl.TopAccountsIB:CurrentExchangeusersCAM-S:TeleprofilingofprospectsEvent-basedMarketingNeedbothBDMandITDMreachIndustryexpertevents:BDM:verticalexpert(e.g.MandarinHotelManager,Industryconsultant)ITDM:peerCIOpresentationCasestudies/reference–basedon40EarlyEngagementWinsCustomerinterviewsinprintedanddigitalmediaDemandgenerationABSalesprocess–currentcustomerdecisionframework(CDF)fordirectsalesENVISION(0%)ALIGN(10%)PREPARE/MIGRATE/DEPLOY(100%)EVALUATE(20%)CONFIRMFIT(40%)DUEDILIGENCE(60%)FINALIZE&SIGN(80%)1234567FunnelcustomerstoYellowstonevs.GallatinaccordinglyAddressdataprivacyissuesuniqueinChinaClarifyquestionsaroundservicesandlicensingissuesunder21VCreateChina-specificcontentforEnvision/AlignquestionsLicensingandlegalrelatedworkCoordinationof21VandMSFTfornon-standardcontractandpricingAM/ATS–relationshipownershipO365SSP–ownsO365solutionsalesresponsibilityO365TSP–ownstechnicalsalesresponsibilityLSS–ownslicensing/subscriptionresp.21V“LSS”–ownscontractPremierorPartner–ownsdeploymentandintegrationATUDir,SegmentLeadLSS,SEEA,LCA,LSS,SELCA,LEEAEAWhattodeliverO365briefing(ITDM,possiblyBDM)Solution/techbriefingJointeval.planCIE(asneeded)SolutionalignmentworkshopInitialproposalPOC(asneeded)DeploymentserviceSOWFinalproposalContractandSOWMigrationplanWhoisrespon-sibleAd-hocsupportEarlyengagementofO365TSPduetofrequenttechnicalquestionsPotentialITapprehension,reachBDMtodriveinternaldemandCCTargetCustomer

EPGCAM-SSKUs

E-SKUs“BPAOnline”LicensingOnline(advisor)VL(21V)EngagementplanfordirectsalesEPGCAValidatedbyAM2210ValidatedbyCustomer96Pendingcust.validation131NextroundnominationTBD13StageEPGCAM-SAddressablemarketinFY145751,695O365briefings151223MSFT-ledsolutionbriefing76112SolutionalignmentWS/POC3856PassthroughCDFtofinalpurchase3045Identifyhigh-potentialEPG/CAcustomerstorampupTarget40lighthousewinsforEPGandCAinFY14Source:TeamanalysisAggressivelyacquireborn-in-thecloud,technologysavvySMBswithavaluesellO365–SMBs4GuidingprincipleRulesAdvisorFeePerform.basedIncentiveBasedonselfrevenueSell150seatsand3dealstoqualifyforCATotalTier2New:21%-

28%(CE-CA)Recur:10%Tier1New:28%(CAreq'd)Recur:10%5%10-33%5%10-21%(CE)10-33%(CA)BasedoncumulativerevenueLeadwithservicesSMBsalreadypayfor(e.g.,mailbox,communication,storage)Focusheavilyon“greenfield”customeracquisitionSkipthelegalizationstepandgodirectlytosolutionsellingSalesmotionPartner-led:SellO365withopenlicenseandadvisormodelsIncubate30Tier1partnersinFY14anddevelopa2-tierchannelstructuretosellO365fromFY15onwardsWebdirect:Developend-to-enddigitalmarketingandwebsalesmotion;LandCRMprograminChinatocollectuserdata,toensuregooduserexperienceandcreateupsellopportunitiesGloballearning:needtobuilddirect/indirectcustomertouchthroughpartnerstoeducatecustomersandclosedealsPotentialpartnersTopVAR/SPwithcommitmenttocloudSCII(科藍(lán)軟件)YuchengTechnologiesLimited(宇信易誠)LangqingInformationandTechLimited(浪擎)Born-in-the-cloudresellersofcompetitorsNanjingRuijiaSoftwareCo.(南京瑞佳)ZhengzhouYundaoTechCo.(鄭州云淘)DongfangRuitingTechCo.(東方瑞庭)JiudaHulianTechCo(久大互聯(lián))PartnershipmodelTwo-Tierstructure30Tier1'sinFY14,300unmanagedTier2's50Tier1'sand1,500Tier2'sbyFY17TerritorialexclusivityforTier1partnersinexpansionprovinces2-yeartermwithsemiannualcheckpointstoreviewrevenue;revokeafterfailing2checkpointsSupportandmanagementTier1:largeVARs,supportedbycloudPAMs(1:10)Tier2:smallerSIsandlocalVARs,supportedbyTele-PAMs(1:40)BasedoncumulativerevenueTier1target:RMB1mnTier2target:RMB100kAdvisorfee(partner-led)Advisorfee(partner-assist)ReferraltoT1partnersforfollowup,w/loweradvisorfee@23%inYr1ValuePropositionCommunicationCollaboration&StorageExampleUsagescenario/salespitchbasedon9SMBvisitsUsagescenarioAprofessionalservicesproviderwith30employees50%oftotalITspending($28k/year)onSaaS,softwareandvoicecommunication–canbesubstitutedbyO365UnmetneedsofinternalandexternalvideoconferencesLowerTCOAlocalsmalladvertising/designcompanywithPCIBof7RisingdemandondocumentsharingandcollaborationoverproductionprocessesHighgrowthprospectrequiresbetterinternalcommunicationandcollaborationwithinabiggerteamIncreasingneedsonextraspaceofdatastorageLimitedITresourceandfinanciallyconstrainedforserverpurchaseandmaintenanceEnablehigherproductivityLowfirst-timepurchasecostandflexibletoexpandLowmaintenancecostLowerstoragecostSource:Nielsensurvey,litresearch,teamanalysisSource:Literatureresearch;Expertinterview;TeamanalysisAplain-vanillacloudplayisunlikelytosucceed;LocalcloudprovidersareaggressivelybuildingcontrolintheentirestackofIaas/PaaS/SaaSandevenmarketaccessMoveupstack–Marketlandscape5HaveclearstrategicfocusinoneortwosectorsorthemesBuildupbusinessAPIandprovidemarketaccesscapabilityforcompanies,inreturnaskingforrevenueshareAcquiredalargenumberof

companies

tobuildown-controlledecosystemDeployvariousmonetizationmodelsandgraduallyrealizesubstantialearningsTechnologyoffering26businessadvancedAPIMultipleprogramminglanguagesBusinessAPIforgamingcompaniesMultipleprogramminglanguagesAdvanceddataanalyticssupportMultipleprogramminglanguagesBusinessAPItoitssearchengineNo.ofcompanies~850,000~500,000~250,000~400,000Monetizationmodel&Revenue($Mn,2012)Freeformostcompanies<1(throughrevenuesharefromcompanies)Revenuesharefromgamecompanies650-800CSVpaysforAlicloudservices~5Freeformostcompanies1-3(throughrevenuesharefromcompanies)KeyobservationofleadinglocalCloudplayersVerticalfocus/themesGamingSWformerce&SMB

(e.g.CRM,inventorymanagement)Life-styleusagescenarioLife-styleusagescenarioStrategic

goalsDevelopcompetitiveadvantagesinmobileinternetmarketwithWeiboplatformReinforceitsdominanceinsearchenginemarketWorktowardsmobileinternetmarketAttractCSVtodevelopmoreappsforSMBonitsTaobaoplatformtostrengthenitsvaluepropositiontoSMBFocusonprofitableindustry,build100%controlledeco-systemforonlinegamingMarketaccessWeiboappstoreMultiplesalesplatformsforgamepublishersHugecustomerbaseformerceplayersSearchengineserviceandadspaceavailabilityPopularcustomeraccesstools,suchasBaiduMapandBaiduCloudStoreM&AMessaging:朗瑪U(kuò)CRootingtool&appstore:刷機(jī)精靈,樂蛙科技,杭州魔樂Game:游戲谷,深圳網(wǎng)域,EpicGamesO2O:愛生活,去哪網(wǎng),糯米網(wǎng)Rootingtool&appstore:91無線,卓大師,點(diǎn)訊公司,點(diǎn)心O2O:口碑網(wǎng),美團(tuán)網(wǎng),丁丁網(wǎng)Map/POI:易圖通,高德Precisemarketing:萬網(wǎng),CNZZMessaging:陌陌Source:TeamanalysisWeareproposingtomoveupthestacktoattainhighsustainability,amplificationandstickinessMoveupstack–Azurestrategy5Azuregrow-up-in-stackapproachBuildanecosystembusiness-PaaSlayerprovidingvalue-addedcomponentsofcommondemandBringinfuturewinnersearlyandco-growthemarketObjective:amplifyvaluepropositiontoattractmorecustomers;ConsolidatelongtailworkloadintoourownconsumptionTargetsegment:sectorsorscenarioswiththefollowingdynamicsFragmentedsupplierspacewithmasssmallplayersPlayershavestrongcommonneedsattheplatformlayertobringadditionalvalueonApproach:buildecosystembusiness-PaaSlayerbybringinginplatformfillerstypesofplayersandprovidethecommonmodulesasPaaS-servicesforothercustomerstoconsumeObjective:benefitfromthepotentialboomingofparticularcustomersegmentsTargetsegment:sectorsorscenarioswithburgeoningplayersofhighfutureupsidepotentialApproach:bringfuturemarketgiantstoAzureandbuildstickyrelationshipwithtailoredplatformandco-market/co-saleAzureIaaSAzurePaaSAzureEcosystembusiness-PaaSIaaSPaaSSaaSAzure-stickyfuturegiants1212Web&mobilegameBuildAzuregameecosystemPaaSthroughdevelopingbusinessAPIandprovidingTTMvalue-addedservicetomobile&webgamecompaniesOnlineadvertisingBuildAzureonlineadvertisingecosystemPaaSthroughbusinessAPIforprecisemarketingplayersSeizefuturegiantsinDSPmarkettoco-leadthismarketO2OMobilityBuildAzureO2OecosystemPaaSthroughprovidingbusinessAPIandTTMvalue-addedservicetoO2OcompaniesKeycustomersStickyfuturestarsEcosystembusiness-PaaSPure-salesplayMove-up-stackplayLargeandmediumgamingcompaniesinonlinegameandpagegamen/aMobilegamingdevelopmentplatformmodulesPaaS(e.g.socialconnect,in-game-IM,leaderboard,etc)4Aadagencies(fortheirownITload,theircustomers’andtheirpartners’ExistingleadersinDSP

PrecisemarketingplatformmodulesPaaS(e.g.datacapture,dataanalysis,etc)n/aExistingleadersinmap&POI,userdataandcustomeraccesstoolsMove-up-stackplayBusinessSaaSsolutionsuiteBringITsupport-inghorizontalbusinessprocessSaaSandindustry-specificappstoO365viaSharepointonlineOfferamarketplaceofbusinessSaaSTraditionalcustomerswithproductivityneedsLeadingISV/CSVinCRM,ERP,OA(e.g.,Kingdee,Ufida,Fenxiang,Mingdao,Zhibang,Renkehudong)n/aUniformcommunicationBuildVASontopofLynconlineAllowforuniformcommunicationscenarioscrossdevicesandcommunicationplatforms(e.g.,SMS,email,IM,etc)TraditionalcustomerswithproductivityneedsLeadingISV/CSVinuniformcommunication(e.g.,ECP)n/aUponAzureUponO365Source:TeamanalysisBrokerDescription-Whatarethecustomerneed?IdentifythescenariossuitabletoadoptcloudbasedsolutionSelectvendorsforidentifiedcloudscenariosEstablishlegalagreementbetweencustomerandserviceproviderIncludeServiceLevelAgreement(SLA)PaymenttoolsCreditcard3rdpartytools,Virtualcoin(self-development)PaymentmethodPay-as-you-goSubscriptionIntegrationNeedtointegratecloudservicewith