Slide deck from March Economic Forum event hosted by Janalent & Microsoft.

1. Dr. Bernard Malamud, Department of Economics, UNLV
Anne Chahal, President & CEO, Janalent
Rocky Griggs, Marketing Manager-Southwest, Microsoft
Joe Honan, Vice President-Solutions, Janalent

2. Where we are &
how we got here Dr. Bernard Malamud, UNLV
Southern Nevada
& SW US Outlook Anne Chahal, Janalent
What our
customers are Rocky Griggs, Microsoft
doing
What every
company needs Joe Honan, Janalent
to consider

3. Dr. Bernard Malamud
Professor of Economics

4. A “Global Saving Glut”
The best
of times
Capital Inflows
Easy Escalating
Money House Prices
Policy
Eager Home
Ambitious Buyers
Mortgage Brokers
Developer Clout
Innovative
Banks
Securitization Rating
Gov’t Sponsored MBSs Agencies
Bank Regulators
Enterprises

5. The Boom Years: High Real GDP Growth  Declining
Unemployment
1997 – 2000
2003/4 - 2006
Growth > ~ 2.5 %  Unemployment

6. The best
of times
Capital
Inflows
Easy Escalating
Money House Prices
Policy
Eager Home
Ambitious Buyers
Mortgage Brokers
Developer Clout
Innovative
Banks
Securitization Rating
Gov’t Sponsored
Bank Regulators Enterprises MBSs Agencies

7. The Downturn: Slowing GDP Growth  Rising Unemployment
Growth < ~ 2.5%  Unemployment

8. Employment in Las Vegas Metro Area
January 2009 vs. January 2008
January January
2009 2008 % Change
Total All Industries 880.9 919.5 -4.2%
Basic Industries
Accommodation 164.7 176.7 -6.8%
Casino Hotels and Gaming 158.9 171.2 -7.2%
Construction 82.6 95.0 -13.1%
Manufacturing 24.3 25.9 -6.2%
Other Industries
Financial Activities (FIRE) 45.9 48.0 -4.4%
Retail & Wholesale Trade 120.8 125.6 -3.8%
Trans, Warehousing & Utilities 37.2 37.6 -1.1%
Professional & Business Services 106.9 115.9 -7.8%
Employment Services 10.7 15.7 -31.8%
Education and Health Services 67.1 64.6 +3.9%
Government 100.9 98.6 +2.3%
Federal 11.5 11.3 +1.2%
State 15.4 14.9 +3.4%
Local 74.0 72.4 +2.2%
Unemployment Rate 10.0% 5.6%

9. Financial System Meltdown
At home
Interventions/
Nationalizations/
Gov’t Supported Takeovers Pre-privatizations Bankruptcies
•Countrywide  BofA •IndyMac •New Century Financial
•Bear Stearns  JPMorgan Chase •Fannie Mae/ •Lehman Brothers
•Silver State Bank Nevada State Freddie Mac •Washington Mutual Inc.
•AIG
•Merrill Lynch  BofA
•Washington Mutual  JPM Chase
•Wachovia  Wells Fargo
•Security Saving  Bank of Nevada
Abroad
•HBOS  Lloyds Bank •Northern Rock
•Fortis  PNB Paribus •Royal Bank of Scotland
•Dexia
•Glitnir/Kaupthing/
Landsbanki

10. Baa-AAA Interest Differential
The Good News: 1932 was worse
The Bad News: This downturn isn’t over until 2010
6.00
May 32
5.64%
5.00
4.00 Dec 08
3.38
Apr 38 Sep 82
3.00
3.17% 2.69%
2.00
1.00
0.00

11. Responses Lender of Last Resort / Spender of Last Resort
• Tax Rebate $124 bil.
• Fed Fund Rate Cuts
• Fannie/Freddie $200 bil.
• Bear-Stearns $29 bil.
• AIG $174 bil.
Fed “Facilities”
• Primary Dealer Credit Facility (PDCF) $58 bil.
• Treasury Security Loan Facility (TSLF) $133 bil.
• Term Auction Facility (TAF) $416 bil.
• Asset- Backed Commercial Paper Funding Facility (CPFF) $1,777 bil.
• Money Market Investor Funding Facility (MMIFF) $540 bil.
• More Fed Fund Rate Cuts … Hold At ~0%
• Fed Purchases of Long-Term Securities: GSEs & MBSs $600 bil.
• Term Asset-Backed Securities Loan Facility (TALF) $200 bil.
• Emergency Economic Stabilization Act/TARP $700 bil.
Government Loans
Government Equity
• Stimulus Package $787 bil.
aka The American Recovery and Reinvestment Act
• TARP II
• Stress Tests

12. • Total funds to State of Nevada ~$ 1,710 mil.
• Education Stabilization & Construction 610 mil.
• Medicaid Assistance 419 mil.
• General Budget & Other 249 mil.
• Highways & Bridges 218 mil.
• State energy & Weatherization 80 mil.
• Clean Water Programs 48 mil.
• Transit capital 45 mil.
• Unemployment & Worker Training 22 mil.
• Child Care/ Foster Care/adoption 19 mil.

14. Anne Chahal
CEO & President

15. • “Las Vegas 1st Place” in Bizjournal’s analysis of the
nation’s current growth centers. Metros with most
momentum entering the recession
– Nov 2008
• “Nevada Ranked Number Two” in the Small Business &
Entrepreneurship Council's "Small Business Survival Index
2008"
– Dec 2008
• US LEI (leading economic indicators) have trended
positive in the last two months.
– Feb 2009
• US New Housing Starts up 22% in February 2009
according to the Commerce Department
– March 17, 2009

16. • Fastest growing region over the next 25 years
• 5 of the top 10 fastest growing states (Nevada,
Arizona, Utah in top 5)
• Predicted to be the hub for renewable energy
and “green collar” research, jobs, & industry
• ~Possibly $7.35 B in energy investments or
borrowing authority for Nevada -Feb 2009
estimates
• 70% of all goods from pacific rim will go
through SouthWest

17. • Well positioned as leader for solar, geo-thermal, wind, and
other green collar industries
• Hoover Dam bypass bridge evolving “western-slope” Hwy 93
NAFTA trade route
• High-speed rail between SoCal & Las Vegas becoming a
reality and partially funded
• Affordable and available commercial & residential property
• Business friendly regulatory and tax climate
• Unmatched ability to transform
• Well established base community & industries
• Fantastic retirement community
• Technology and infrastructure (i.e. supernap datacenter)
• World’s center for hospitality and entertainment
• Film production industries
• Gaming/resort industry administration

18. • Increased funding for education, healthcare &
energy
• Possibly $3.25 B in borrowing authority for
upgrading NV regional power grid
• $15 B in Small Business assistance
• $250 M in local NV transportation projects
• Ability to write down 5 years of losses
• Reduction of estimated tax payments by 10%
• Accelerated asset depreciation
• Increased SBA loan guarantees (from 50 to 95%)

19. + Climate & Weather
+ Positioning as renewable resource hub
+ Leadership in national “clean energy”
+ Business friendly
+ Supply & demand
+ Population migration trends
+ Increased industry expansion / diversification
+ Stability & ease of access
+ World class hospitality and tourism

20. • Don’t just sit and watch it happen or watch other
companies make money off of it.
• Change happens. Technology happens. Embrace it!
• No one plans to fail, but too many companies fail to
plan or make necessary adjustments
• If small businesses do some effective planning,
manage their cash flow, keep on selling and accept
change, they will be well-positioned in the SW
marketplace as we move into the future.

21. Rocky Griggs
Partner Marketing Manager

22. • It’s not that bad, you got a free meal
• Words of wisdom
• Industry Insights from Microsoft customers large
and small

23. • 50 million = 38/13/5
• Who was Federal Expresses largest customer?
• We always overestimate the change that will occur in the
next 2 years and underestimate the change that will occur
in the next 10. Don't let yourself be lulled into inaction.
• If GM had kept up with technology like the computer
industry has, we would all be driving $25 cars that got
1000 MPG.
• You don’t have to be great to start, but you have to start to
be great

24. 10%
100% 19% 21%
80% 11%
46% Increase
60%
75% Decrease
40% No Change
20%
68%
35%
15%
0%
10-200 200-500 500+

25. 85%
64% 64%
57% 44%
37% 35%
25% 10-200
23% 32%
11% 16% 200-500
500+

27. • Help our customers identify ways to take unnecessary cost
out of doing IT
• Enable customers to focus on their core business
• Raise the stacks in Research and Development by
increasing investment from $8 to $9 billion this year
• Continue focus on key strategic partnerships that have a
ripple effect in the economy

28. Joe Honan
Vice President-Solutions

29. Reassess strategic plan often, control spending, drive costs out
of IT, strengthen core systems, operations, and processes.
Key Ways to Get Fit, Get Strong
Analyze current burn
Identify & eliminate duplicated expenses
Rationalize & renegotiate maintenance contracts
Virtualize as a strategy, not a project
Consider on-line services where appropriate
“Leading regional healthcare provider is on track to save
over $500,000 annually in facilities and maintenance cost
by virtualizing and moving off of legacy platform to a
Microsoft infrastructure. (Novell to Microsoft)”

30. Smart companies are increasing their bets and investments in
strategic areas while their competitors “re-trench”
Key Ways to Spend more… Wisely
Spend to Save!
Analyze & provide business case to support plans
Identify & rank spending opportunities / priorities
Use the opportunity to spend on value to customer
Take advantage of stimulus & incentives
“By focusing on business intelligence (CRM) and increased
marketing budget, regional services firm has been able to
drive over $300,000 in new revenue and 10 net-new
customers so far in Q1”

31. Increased focus rather than “shot-gun” diversification is a key
differentiator between leaders & laggards in turbulent times…
Key Ways to Increase Focus & Take Advantage
“Double down” on strengths, cull non-performers
Identify & dump non-profitable relationships
Create 5 new ways to increase value-proposition
Invest in business analytics & customer mgmt.
Find ways to save your customers money
“By replacing legacy systems, regional photography
organization has been able to spend more time on
generating revenue & enhancing online presence, rather
than managing ailing systems ”

32. Expanding customer base by thinking and acting in new ways is
the what is separating the up-starts from the start-ups…
Key Ways to Expand Base & Embrace Technology
It’s not your father’s internet…it’s your kids…
Viral marketing has had a HUGE impact
Get your “out there message” out there
Build a community of customers for customers
PROVE technology is strategic to your organization
“By implementing our business intelligence system and
enabling community site links, we now have 10 times more
visibility into the contacts and details of our prospects with
10 times less expense”

33. Rely upon key vendors, deepen relationships with key partners,
strengthen networks of friendly competitors
Key Ways to Deepen / Strengthen Relationships
Open up to key vendors, they’ll find ways to save
Focus partnerships and execute on a plan
Build bridges rather than moats w/ competitors
Collaborate & Communicate… with everyone
Develop an organizational “Elephant Memory”
“By focusing on how we can help customers better
exercise their existing Enterprise Agreements, we have
become THE trusted advisor for several organizations by
proactively finding ways to save by working with us”

34. Steps to Survive & Thrive in this recession
Get in Shape Virtualize as a strategy, not a project
Control spending, shed excess expenses, Virtualize, Continually assess &
strengthen core systems & processes Move email & collaboration on-line
Spend more…Wisely Increase investments in getting your message out
Replace bad with good (e.g. legacy systems, storage)
Increase investments in strategic areas, take
advantage of competitors “retrenching” Track & evaluate your spend (eg CRM)
Increase focus & Take Advantage Hyper-focus your message, utilize CRM
Only 2 things - Support revenue generation or save $$
Increase focus rather than diversification, leverage
business intelligence to better understand customers Create new value, everyone is listening
Expand Base & Embrace Technology Embrace and leverage the power of communities
Find new customers through using new methods of Build communities for your customers
reaching them (e.g. Twitter, Social Networks) Prove the value of technology to your organization
Deepen / Strengthen Relationships Ask key vendors to find way to save you money
Rely upon key vendors, invest into key partnerships, Use technology to prevent “slipping through the cracks”
find ways to work with competitors Use trusted advisors to exercise existing agreements