Best Of Times Or Worst Of Times?

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Best Of Times Or Worst Of Times? Emerging trends Turbulence abounds Out of difficult times come rare opportunities Entrepreneurs need nurturing more than ever Economic woes wreaking havoc on IPOs, M&As; Industry on pace for worst IPO year ever; M&As also behind as prices fall Venture Source September 30, 2008

Challenges For Startups Extending runway Cash crunch Technology lock in Licensing provisions Installation/Configuration Business model Market exposure Funding Customer credibility Professional support Technical guidance Architectural guidance

Microsoft BizSpark Microsoft BizSpark is a program designed to provide software startups all the resources they need to build successful companies and connect them with a community of experts. Over 30k startups have joined BizSpark. BizSpark is available in 112 countries, 9 languages Software Software Full featured development tools and production for 3 years. Free Windows Azure computing time for 16 months. Visibility Support Support Professional technical support from Microsoft: Email support, Managed newsgroups, invitation to BizSpark Camps. 2 Free MSDN Support incidents. Visibility Profile on BizSpark Connect. Promotion on BizSpark.com. Offers and Events on BizSpark Connect.

Software Costs Total Business Costs DataCenter Costs Hardware Software R&D General/Admin (G&A) Staffing Other Software Training Sales & Marketing Software licenses represent a small percentage, less than 10%*, of overall hosting costs *Source: IDC, 2007, Three Year Server TCO Study and estimated by hosters, OpSource and GoGrid, October 2008. 5

Microsoft BizSpark Early Wins Best of show: Two of the top five pick from TC50 6

How BizSpark Works University incubators, government agencies Investors Entrepreneur and industry associations Hosters Network Partners sponsor Startups Startups join BizSpark

After 3 years Three Years And Beyond Get software, support, and visibility when they are most valuable and least affordable. BizSpark Graduation Offer Keep the software you have & optionally purchase subscriptions to keep it updated Tools and platform technologies Startups keep the perpetual licenses for the development and design tools Startups have the opportunity to renew the MSDN subscription to review updates Get all the program components for three years. Production licenses Upon exit transition to appropriate commercial license offer Once in production, software licenses typically represent a small percentage, less than 10%*, of the overall hosting costs. Scalability and manageability will be the major cost drivers Partner programs Startups can join one of our partner programs, e.g. Microsoft Partner Program *Source: IDC, 2007, Three Year Server TCO Study and estimated by hosters, OpSource and GoGrid, October 2008.

Eligibility To qualify for BizSpark, your Startup must be: There is no fee to enroll in Microsoft BizSpark Developing Software Privately held Less than 3 years old Making Less than US $1 million in annual revenue

BizSpark Transition Offer General approach: keep the software you have & optionally purchase subscriptions to keep it updated DEV/TEST Keep your MSDN Ultimate software; optionally renew your subscription(s) at any level Keep all the Windows and SQL Servers you are using in production PRODUCTION optionally purchase Software Assurance for two years at a 50% discount Azure Offer included in MSDN Renewal (more to come)

New in BizSpark Software Support BizSpark Camps Visibility BizSpark.com = Startup of Day + Mashable.com BizSpark Connect

New in BizSpark Software Support Free 16-month Azure introductory offer - NEW BizSpark Camps Visibility Startup of Day + Mashable BizSpark Connect

BizSpark Camps BizSpark Camps are designed to enable the accelerated success of early stage Startups by providing a hands-on experience for Startups, driving engagement with technology and provide proving prototyping opportunities to accelerate solution development and deployment. It also allows Startups to engage with other Startups in their network to raise awareness around their software solutions.

BizSpark Connect BizSpark Connect offers Startups the opportunity to achieve global visibly to an audience of potential investors, clients and partners by profiling their company and posting offers and events in the BizSpark virtual networking hub.

Summary Visit www.bizspark.com to learn more

Additional Slides

BizSpark Camps - Example

On-Line Training Channel On-line content for startups 45 business related sessions Multiple technical sessions Content updated every quarter www.bizspark.com www.msdev.com/bizspark

Microsoft Innovation Centers An environment for innovation Founded and operated with government, universities, and/or industry organizations On the way to 200 MICs in 85 countries. Doubling this year in Middle East and Africa A place for entrepreneurs, students, academics, and partners to Learn Innovate Connect Build Achieve Show