Introduction of Online Services into Volume Licensing Microsoft Business Network & MSN Messenger Connect

1. Introduction of Online Services into Volume LicensingMicrosoft Business Network &MSN Messenger Connect Worldwide Licensing and Pricing December, 2003

2. Intro & Agenda • Intro • What are Online Services? • Intro of Online Services on the Volume Licensing (VL) Jan. 2004 Price List • Microsoft Business Network (MS Business Network) • MSN Messenger Connect (MSN Connect) • Agenda • MS Business Network Product Intro (~10 min) • MSN Connect Product Intro (~10 min) • Online Services in VL Channel (~20 min) • Licensing Model • Program Impact • Q&A (~10 min)

3. Microsoft Business Network Product Introduction Marcus Schmidt Product Manager, MS Business Solutions

4. EDI VAN Large Retailer International Vendors & Service Providers Mid-sized retailer using auto PO generation Domestic Vendors Retail Outlets & Specialty Retailers Transportation Management Customer Example: Your Company Before MS Business Network Current Problems • Customer forced to deal with partners in 1: Many way • Only partial integration with ERP systems • Many manual processes; possible lost or incorrect information E-mail Automated Fax / e-mail E-mail or web service access through browser Fax Fax

5. Supplier Visibility ERPSolutions Orders to Cash Payment Settlement Logistics Register Large Retailer International Vendors & Service Providers Mid-sized retailer using auto PO generation Domestic Vendors Retail Outlets & Specialty Retailers Transportation Management Customer Example: Your Company Using the Basic Service of MS Business Network

6. Customer Example: Your Company Using the Optional Community Building Service in MS Business Network Large Retailer International Vendors & Service Providers Mid-sized retailer using auto PO generation Domestic Vendors Retail Outlets & Specialty Retailers Transportation Management

7. EDI VAN Large Retailer International Vendors & Service Providers Mid-sized retailer using auto PO generation Domestic Vendors Retail Outlets & Specialty Retailers Transportation Management Customer Example: Your Company After MS Business Network Benefits • Assistance in building up partner community • Integrates communication methods • Complete inter-business processes • Integration with GP at your company and your Trading Partner’s ERPs • Leverage of Office as a business process tool

8. MBN Integration – Microsoft Outlook All business documents sent via MBN are available in Microsoft Outlook

9. MBN Integration – Microsoft Excel Microsoft Excel is the MBN template client and is used to view, modify, create, and send MBN documents

10. MBN Integration – Microsoft Great Plains MBN solutions documents are inserted directly into Great Plains software and are also always visible within Microsoft Outlook and Excel Screen Shot is needed

11. MS Business Network Business Process Templates • Business document definitions (ex. Order, Order Change, Ship Notice, Invoice, etc…) • Collaboration Definitions describing how these documents are related, viewed, and created between companies • Application Integration Profiles that describe how the solution integrates with Microsoft Office, MBS applications, and other apps via BizTalk Server

12. Product Introduction Todd Biggs Product Manager MSN

13. MSN Messenger Connect Overview • MSN Messenger Connect for Enterprises (MSN Connect), is an online subscription service enabled through and ISV solution that delivers a managed, audited, and logged instant messaging (IM) infrastructure for enterprise businesses connecting their employees to partners, vendors, and customers on the public MSN Messenger network. • Establishes enterprise control over Instant Messaging (IM) identities • Enabling logging, auditing, and IM policy management • Enterprise IM control with anytime-anywhere and domain level control • A companion service to Microsoft Office Live Communication Server 2003 • Connectivity to the 100+ million people on the MSN Messenger network

14. Situation for Instant Messaging (IM) • Improved communication driving usage of IM • Presence: timely answers from contacts • Reduces telephone calls & e-mails • 100 Million Workplace IM Users • Internal employees, customers & partners • 30% growth in users • 100% growth in minutes • Estimates range from 200M (GG) to 500M (Network provided) • Fragmented IM market • Many startups • Proprietary technologies • Consumer networks own users • Security and manageability are top issues for IT departments • 38% of information workers have at least one public IM client • Public IM moves as clear text across the firewall • Entry point for viruses and software conflicts • Lack of authentication and namespace integration

15. REAL-TIMECOLLABORATION BUSINESS PROCESSCOLLABORATION ASYNCHRONOUSCOLLABORATION INFRASTRUCTURE SERVICES Windows SharePointServices Windows RightsManagement Services Windows MediaServices Microsoft Smart Connected Organization

16. MSN Connect: Identity Control • Corporate Ownership • Protecting Intellection Property • Naming Conventions • Managed Namespace Identity Mgmt Reporting Alerts Archiving IM Server & Service Platform

17. MSN Connect: Archiving & Reporting Archiving • Log text conversations • Reconstruct conversations • Generate reports and audits Reporting Identity Mgmt Alerts IM Server & Service Platform

18. Technical Overview

19. Online Services in VL Channel • Licensing Model • Program Impact Mark Kuo Product Manager WWLP

20. Online Services in Volume Licensing • Goal • Create consistent licensing model to be applied to all online services entering VL • Core Licensing Model: • Services Subscription License (Services SL) • ● Annual fee required for activation and maintenance of services for each company • ● Each Service SL will have its distinct set of benefits derived from basic services • User Subscription License (User SL) • ● Annual fee required for each individual user that accesses the online services. • ●The user may use the online services from multiple devices. • Add-on Subscription License (Add-on SL) • ● Required for access to add-on services or functionalities.

21. Licensing for MSN Connect Company A Premises MSN Connect Services SL* - annual fee for activation & maintenance of basic service User SL – annual fee required for each user Add-on SL – (TBD) Server License – available from certified MS partners @DomainA @DomainB * Each Services SL grants one active domain and one blocked domain; additional Services SL can be acquired additional domains

22. Licensing for Microsoft Business Network 1.0 Company B Premises Company A Premises Company C Premises MS Business Network 1.0 Company D Premises Services SL* - annual fee for activation & maintenance User SL – annual fee required for each user Add-on SL – annual fee for optional Community Builder functionality Server License – required server license per server installation * Number of Services SLs required matches the number of Server Licenses required. Note, for MS Business 1.0, customers may be eligible to receive a free Services SL.

23. Special SL Grant for Microsoft Business Network 1.0 • Services SL is granted for free with Microsoft Business Network version 1.0. • For customers who acquire a Server License for Microsoft Business Network 1.0 prior to March 1, 2005, we make a one-time non-perpetual license grant of a Services SL until the end of the customer’s term of enrollment.  • Customers who acquire a license and software assurance coverage for Microsoft Business Network 1.0 server will receive upgrades and still be able to use the Services SL until the end of their enrollment terms.  • Upon renewal of the Volume Licensing enrollment, the one-time Services SL grant is no longer effective and such customers may acquire a Services SL.

24. Summary of Licenses Required

25. New Agreement • For Open License Value, Select Agreement and Enterprise Agreement (EA): • At the beginning of the contract, the customer orders the quantity of desired subscription licenses • Customer pays for 36 months of subscription • Customer may spread payments on the anniversary dates of the contract Order subscription licenses = payment Customer pays 36 months of subscription (can spread payments over 3 years)

26. New Agreement • For Open Business and Open Volume Agreements: • At the beginning of the contract, the customer orders the quantity of desired subscription licenses • Customer pays for 2 years up front Order subscription licenses = payment Customer pays for 2 years upfront

27. Existing Agreement • For Enterprise Agreement (EA): • Initial Order of SLs and Adding SLs after Initial Order • Customer makes initial order at any time and pays for the stub period (between order date and next anniversary), prorated monthly (i.e. 9 months) • At next anniversary, pay for the number of whole years remaining in the agreement after that anniversary date, spread over the remaining anniversary dates. Order subscription licenses = payment At next anniversary, the customer pays for the number of whole years remaining in the contract as of the true-up anniversary (can spread payments over the remaining years) Customer pays for the stub period (between order date and next anniversary), prorated monthly (i.e. 9 months)

28. Existing Agreement • For Open License Value and Select Agreement: • Initial Order of SLs and Adding SL after Initial Order • Customer orders additional SLs at any time • Customer pays for the stub period, prorated monthly • Customer may spread payments on the anniversary dates of the agreement Order subscription licenses = payment Customer pays for the number of months remaining in the contract (can spread payments over the remaining years)

29. Existing Agreement • For Open Volume and Open Business Agreements • Initial order of SLs and Adding SLs after Initial Order • Not possible • We recommend that customers start a new Open Authorization, as two full years of the subscription must be paid up front, due to operational structure of the Open Agreement = payment Customer should not add to an existing Auth #, to avoid confusion with termination of existing agreement

30. Activating Online Services • MSN Connect • For activation, customer, using their valid license agreement details, must go to MVLS site to click on a link for registration and for Online Service Keys. The link in MVLS is: http://www.microsoft.com/net/services/msnmc/licensing • For adding SLs, customer should place the order and return to the same site to edit the number of users and domains. • Microsoft Business Network • For activation, customers should contact the Microsoft Activation Center by going to http://www.microsoft.com/licensing/ and clicking on the Online Services Product Key link to get your local call center number. Customer will receive their Online Service Keys upon phoning the call center with their valid license agreement details. • For support entitlement, customers should register at:   http://www.microsoft.com/BusinessSolutions/MBSRegistration • For adding SLs, customer should place the order and return to Support Entitlement site to edit the number of SLs.

31. Other Licensing and Program Details • Availability • Microsoft Business Network version 1.0 • Open Volume and Open Business: Jan., 2004 • Open License Value, Select License, EA, and EA Subscription: Feb., 2004 • MSN Connect • Not available in any Open programs • Select License, EA, EA Subscription: Jan., 2004 • Software Assurance Availability • Software Assurance is not available for SLs, as these license are already subscription services with unique benefits • Enterprise Agreement • Online services sold through the EA as Additional Products • No true-down for User SLs • Product Pool • MS Business Network and MSN Connect licenses are included in the “Servers and Business Solutions” Pool

32. Resources Microsoft Business Network • http://www.microsoft.com/BusinessSolutions/mbn • Marcus Schmidt marcussc@microsoft.com MSN Connect • http://www.microsoft.com/net/services/msnmc • Todd Biggs toddb@microsoft.com Licensing & Pricing • http://infoweb/licensing • Mark Kuo mkuo@microsoft.com

33. Appendix

34. Estimated Retail Prices for Select A Level

35. License Point Values