SPLA Service Provider License Agreement

1. SPLAService Provider License Agreement Philip MeyerRegional Hosting Specialist

2. What We’ll Cover • Vision • Market Drivers • Proven • Emerging • Licensing Introduction • Hosting Solutions

3. Sharepoint Services Live Comm Server Exchange Server BizTalk Server Commerce Server Application Center ISA Server SQL Server Enterprise Servers Microsoft .NET Devices User experiences Visual Studio.NET .NET Framework Web services Notification Identity Storage Servers

4. Types of Licenses • Internal Use: End user is the license owner • OEM, FPP, Open, Select, EA • End User must own both Server and CAL licenses • End User CALs does not have right to access service providers’ servers • Commercial Services (licenses with hosting rights): end users of service do not own licenses, service providers own the licenses • Web/Internet Service Provider/Hoster • Application hosting (mail, LOB & office online) • Platform infrastructure provider • Streaming media provider • ISV providing hosted applications • IT Outsourcer providing software licenses

5. Licensing Choice • Customers Own Licenses(Server + CALs/IC) • Outsource to service provider • Customers retain license ownership • Types of licenses: OEM, FPP, Open, Select or EA • Service Provider provides all licenses(PL or SAL) • Monthly subscription based upon usage • Software Assurance included • Multi-tenancy (shared license) permitted • Combination

6. SPLA in a nutshell • Microsoft SPLA is a pay-as-you-go process, aligning your software investment with your monthly revenue streams • What does this mean for you? • Avoid upfront costs • Map your licensing costs to your business model • Pay only for what you use

7. Microsoft Licensing Large EA Select Medium Open SPLA Small Business FPP Home User

8. SPLA Licensing Model • SAL (Subscriber Access License) • Per User (Exchange, Live Comm Server, Office, SharePoint Portal Svr, Small Business Svr, MOM, SMS, Project Server & Project, Terminal Services) • Access any number of servers from any device • No additional Server fee • Minimize start-up cost • PL (Processor License) • Per Processor (Application Center, BizTalk, Commerce Server, Content Management Svr, Host Integration Svr, ISA Svr) • Simple to monitor and count (reducing admin cost) • Unlimited users and companies • SAL (Per User) – OR - PL (Per Processor) • Windows and SQL Server • Maximum Flexibility • Not locked in to either model

9. Internal Use External Use Remote Access On-site OEM, FPP ISV MBA Open SPLA External Connector Licensing mechanism EA/Select Enrollment Outsourcer Enrollment Service Provider providing Software Services to its customers ‘External User’: Any person who is not: an employee, temporary personnel, or your customer to whom you provide hosted services Customer and Customer’s Affiliates or appointed agents only (Excludes unauthorized, non-employees) Authorized User Outsourced scenarios (including Outsourcing, Hosting, Web Services) ‘You may not rent, lease, lend or host products…’ Authorized Usage Scenario Third-party licensing programs (ISV Royalty Licensing program, Service Provider Licensing Agreement) Microsoft Licensing Map

10. Internal & External Use Licensing: HOSTING Scenario A: Dedicated Hosting Scenario B: Shared Hosting Option 3 Option 2 Option 1 Hosting company’s server farm Hosting company’s server farm Customer A Customer C Customer B Customer A Customer C Customer B Same options available as under Scenario 1 Hosting Co. Owns & Acquires Licenses Hosting Co. Owns & Acquires Licenses Customer owns licenses; Hosting Co. acquires Licenses Customer Owns & Acquires Licenses Internal or External Use depending upon license Ownership External use: Hosting Co. must sign the SPLA (cannot use their own EA/Select) Internal Use: Customer is licensed via EA/Select; Hosting Co. signs Outsourcer Enrollment Internal Use: Customer is licensed via EA/Select External use: Hosting Co. must sign the SPLA (cannot use their own EA/Select)

11. SPLA and Web Hosting • SPLA is by far the most economic model for shared hosting • SPLA permits multi-tenancy (sharing of a single license held by the Service Provider) • OEM, Open, FPP, etc may only be used by the license holder (i.e. the END customer) therefore in a shared configuration every hosted customer would require a Windows Server license and potentially SQL license too • Service Provider may not use an OEM, Open, FPP license to provide hosting or commercial services

12. Internal & External Use Licensing:BP Outsourcing Scenario 1: In-house Scenario 3: Shared Outsourcing Scenario 2: Dedicated Outsourcing Customer A Customer A Customer A Billing Dept. Billing Dept. Billing Dept. Customer B External Use: Outsourcer has to sign SPLA, since using same set of licenses to provide Billing for multiple customers Internal Use: Even though Billing is outsourced, it is dedicated to Customer A, so Customer A can use EA/Select agreement Internal Use: Customer can license Billing dept under EA/Select agreement

13. Real-world examples External Use: Amazon External Use: Martha Stewart Amazon Martha Stewart Digex Customers Customers • Business: Sells stuff off website • Users: Employees, Customers • Ownership: Martha Stewart did not wish to own software assets; entered into hosting agreement with Digex • Information controlled by: Martha Stewart (SP’s customer) • Commercial X-ion between SP & User?: NO • Business: Hosts websites for small booksellers • Users: Small booksellers’ Customers • Ownership: Amazon wishes to own software assets • Information controlled by: Bookseller (SP’s customer) • Commercial X-ion between SP & User?: NO • Use Type: External • Licensee: Amazon • Licenses: SPLA (no External Connector) • Use Type: External • Licensee: Digex • Licenses: SPLA (no External Connector)

14. Real-world examples (cont’d) External Use: HP Helpdesk Services External Use: Accenture Billing Services BC Hydro Billing Dept Outsourced to Accenture Redmond Helpdesk Asia Helpdesk Helpdesk outsourced to HP Customer B EMEA Helpdesk • Business: HP provides Helpdesk services • Users: MS employees • Ownership: HP owns licenses • Information controlled by: Microsoft (SP’s customer) • Commercial X-ion between SP & User?: NO • Business: Accenture manages Billing depts • Users: Customers’ customers • Ownership: Accenture owns licenses • Information controlled by: Accenture’s customers • Commercial X-ion between SP & User?: NO • Use Type: External • Licensee: Accenture • Licenses: SPLA (no External Connector) • Use Type: External • Licensee: HP • Licenses: SPLA (no External Connector)

15. Real-world examples (cont’d) External Use: Reuters External Use: SCS Procurement Services HP DBS Bank Procurement Dept. Outsourced to SCS Broker SCS Customer B • Business: Reuters provides financial info and storage services • Users: Broker • Ownership: Reuters owns licenses • Information controlled by: Brokers • Commercial X-ion between SP & User:? NO • Business: SCS provides Procurement Services • Users: DBS, SCS’ other customers • Ownership: SCS owns licenses • Information controlled by: SCS’ customers • Commercial X-ion between SP & User?: NO • Use Type: External • Licensee: Reuters • Licenses: SPLA (no External Connector) • Use Type: External • Licensee: SCS • Licenses: SPLA (no External Connector)

16. video What SPLA means to a Service Provider and Customers www.microsoft.com/serviceproviders/licensing/compare.asp

17. Software As A ServiceMarket Drivers • Demand • IT skills shortage • Increased application complexity • Time to deployment • Technology refresh cycle • Supply • Bandwidth • Emergence of competent, well-funded Service Providers

18. Affordable access to technology Avoids capital investment Simplify budgeting Shorter implementation cycle Lower cost of entry for applications Improved total cost/performance One-stop shopping/support Focus more on primary business Scalability to meet business growth Avoidance of IT staff recruitment/retention Software As A Service Drivers Source: IDC

19. Customer Requirements from Microsoft Annual Customer Survey • Security / viruses • Update / upgrade infrastructure • Improve software / upgrade • Cut costs / budget • New technology • Server upgrade • Info / data management / storage • Improve Internet / web services • Improve hardware / upgrade • Compatibility / system integration • Email / spam • Reliability / stability

20. How Important are Proposed Campaigns? • Security • Connecting people to devices • Team Collaboration • BI • ERP • CRM • Upgrading Servers • Upgrade MS App SW • Upgrade MS Desktop OS

21. Australia SB Attitudes and Strategic Directions Overview Top strategic directions: • Data back-up and disaster recovery • Enhance data security and privacy via firewall, encryption, etc. • IT staff training and skills enhancement • Upgrading bandwidth for data networking • Interconnecting branch offices • Electronic linkages with suppliers and distributors • Using hosted applications via 3rd party service providers (ASPs) • Outsourcing IT & other business services • Customer Relationship Management (CRM) applications • Imaging & document management solutions Very Important Important Source: AMI SME Survey

22. Horizontal Opportunities • Empowering Employees • Building an extended organisation encompassing partners, suppliers and customers • Employee self-service and Online Training • Messaging and Collaboration • Any device, Any where, Any time • Integrating Business Partners • Collaboration with business partners • EDI, EAI, B2B • Connecting Customers • Extending the storefront to corporate procurement

23. Enterprise Opportunities • Avoid “sticker shock” • Content Management Server • $80,000 per Proc or $1,400 per month • Share big ticket items • BizTalk Server • Multiple businesses • “Peaks and Troughs” • Office and Project • Special Project with need for desktop licenses for a short time • Trials and Pilots • Test out software technology without committing to a perpetual license • Small offices in overseas locations • Leave the total solution provision to an SPLA Service Provider rather than invest in staff, resources and travel

24. Hosted Exchange Opportunity Segments  End users & Service Providers Outsourcers Enterprise Global, Strategic, Major, Corporate Mid Market Small business Hosting ServiceProviders ISPs / Webmail Consumer

25. Monitoring and Reporting • Server or service • failure • Data mining • Customer reporting • Server Purposing • Build a new server • Repurpose existing servers • Update Management • Security alerts • Apply security updates • Reconfigure existing servers • Centralized Management • Group policies • Improve and scale the administration of multiple servers The Windows-based Hosting Solutions • A collection of best practices, scripts, and tools that enables service providers to deploy a centralized management infrastructure • Provides these benefits: • Cost savings even as your data center complexities increase • Highly specialized tools that enable the service provider to roll-out managed services quickly

26. PXE FW Deployment Agent Pre-OS RAM Administration Agent Windows-Present Hard Disk DB ADS Secure, Hands-Off Imaging“Zero Touch Server Builds from Bare Metal” 1 4 Bare metal server PXE Boots and task sequence is initiated Agent authenticates/ requests image Target Server 2 5 Controller downloads DOS image for hardware configuration Encrypted image is downloaded and deployed 3 6 Image is personalized and boots to full OS with agent Controller transfers deployment agent to RAM disk Logs all activity SSL Possibly Multicast ADS Controller

27. Border Router Perimeter Firewall Services Packet and Port Filtering SSL Termination Stateful Inspection Application Filtering Perimeter/Net FrontNet Hosted Exchange Services Web and Data Hosting Platform Services • Exchange Front-End Servers • SMTP: • EXSMTP01 • EXSMTP02 • OWA/POP/IMAP and RPC Proxy: • EXFE01 • EXFE02 • EXFE03 • Web Hosting • WEB01 • External DNS • DNS01 • DNS02 • DNS03 • DNS04 • Update Management • SMS01 • Provisioning Front-End • PROV01 BackNet • Exchange Back-End Server Cluster (4+1) • EXBE01 • EXBE02 • EXBE03 • EXBE04 • EXBE05 • Data Hosting • Shared • SQL01 • Dedicated • SQL02 • Monitoring and Reporting • MOM01 • MOMSQL01 • Active Directory • AD01 • AD02 • Service Provisioning • MPS01 • Server Purposing • ADSC01 BackUp-Build-Net Backup and Restore Logical Diagram

28. MPS Request Flow • New Customer • Initial request Web Control Panel 1. HTTP Post via SSL 2. XML Provisioning Request Request Expansion 3. Request Expansion 4. Providers perform tasks MPF • Active Directory Provider • Create New OU • Create Groups • Set Security • Delegate Permissions • IIS Resource Manager • Find Available Resource • IIS Provider • Create Folder • Set Security on Folder • Create Site • Set Security on Site • FrontPage Provider • Enable SharePoint Team Services AD RM IIS FP Request Tasks 5. XML Response Active Directory IIS Resource Manager IIS FrontPage 6. HTML – Update Complete

29. More Hosting Solutions and Opportunites • Document Protection • Hosted Windows Rights Management • EAI Management • Hosted BizTalk Server farm • Media Company Content Portal • Content Management Server • EPM • Hosted Project Server + Project via Terminal Services • Remote Small Businesses • CPE SBS2003 and potentially even Office • CRM • Hosted CRM (under SPLA and a CS Solution Q3 CY05)

30. Resources • Directions on Microsoft • www.directionsonmicrosoft.com • Jumpstart Programs • Microsoft Partner Solutions Centre (MPSC) • www.microsoft.com/serviceproviders • Licensing • Windows Web Hosting Program • Service Provider Newsletter • Certification Programs • Third party Solution Directory • Deployment Guides • Shared Web Hosting Guide • Solution Technical Articles and Case Studies

31. Demand Generation for Hosting http://www.microsoft.com/smallbusiness/products/roadmap.mspx

32. Why a Service Provider? • Limited IT skills to manage services to employees and customers • Reduce TCO by sharing infrastructure with other businesses • Want to stay current with latest hardware and software • Need better integration between business applications • Messaging linked to CRM, Web site to ERP • Need access from anywhere, anytime and potential from any device • Mobile device integration, telecomputing • Outsource the license management burden • Move IT from asset based to expense based • Place security in the hands of professionals