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Open Licensing & Software Assurance 6.0 Training

Open Licensing & Software Assurance 6.0 Training. Training Objective. Vision Timeline Overview of License & Software Assurance Sales Opportunities. Licensing Vision. Annuity relationship with customers Evolution to non-perpetual licensing Single, scalable licensing program

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Open Licensing & Software Assurance 6.0 Training

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  1. OpenLicensing & Software Assurance 6.0 Training

  2. Training Objective • Vision • Timeline • Overview of License & Software Assurance • Sales Opportunities

  3. Licensing Vision • Annuity relationship with customers • Evolution to non-perpetual licensing • Single, scalable licensing program • Integration of licensing and services • Web-based licensing services

  4. Timeline • May 10th Announcement • May 10th Announcement Letter to all Open customers • June: Follow-up Call to Action Letter to all Open customers • September: Follow-up training on launch details • October 1st Launch Date for program changes • January 1st Last Chance call to action for Open Customers (to buy SA only for current licenses and to buy UA for non-current licenses)

  5. Change as of June 25 • Based on customer feedback Microsoft has responded made two changes: • Extended the launch grace period end date to 2/28/2002 • Extended the availability of Upgrade Advantage through 2/28/2002 • Why? • to give customers on a calendar year fiscal year more time to budget and purchase UA and SA before requiring the purchase of the license in order to get on the annuity program

  6. License & Software Assurance Timeline March 1 Forward May 10 – Sept 30 Oct 1 – Feb 28 Transition Period Launch Period Steady State Prepare customer for new model changes: Consult with customers to match license needs with purchase options • Discuss available options with customers • Sell Upgrade Advantage • (Sell VUPs) • Sell Software Assurance • Sell Upgrade Advantage

  7. “License” Overview • “License” SKU replaces multiple Licensing SKUs • Standard License, Version Upgrade, Competitive Upgrade, Product Upgrade, Language Upgrade, and ‘get current’ portion of Upgrade Advantage • Provides rights to current version • No pre-requisite to purchase • One-time purchase LUP VUP L CUP Std PUP UA Licensing offerings have been simplified

  8. Software Assurance Overview • Provides upgrades and updates through enrollment term • After 3/1 Initial SA purchase MUST be purchased with License • License & Software Assurance Package • Available separately at time of renewal or for OEM/FPP • Price reflects remaining years of term Year 2 Year 1 SA ……….….Upgrades…….……Feature enhancements…………. Software Assurance provides benefits to customer throughout enrollment term.

  9. Benefits of Software Assurance Model • Increased simplicity and ease of administration • License offerings simplified • Easy to determine upgrade eligibility • Licensing Web services for license management and tracking • Greater predictability and controllability • Fixed payments • Fair price to value • Software Assurance cost is 29% percent of new license price per year for Applications and OS, 25% for servers. • Assurance of latest technology from Microsoft • Access to all upgrades and feature enhancements

  10. Offering Availability = SKU available through program * Operating Systems only available as upgrade through licensing

  11. Volume Licensing Programs Summary

  12. Overview of Key Changes • Open Sku’s change from VUP, CUP, PUP, UA, etc to just a LICENSE sku • Server upgrades go away in shrink wrap • Retail product has product activation key whereas WWF media has licensing key-Office XP (& other products to come) • Retail product bytes are different-Office XP • Software Assurance becomes available to keep current

  13. Open 6.0 Features & Benefits • Software Assurance:upgrades and feature enhancements for enrolled licenses • Broad reseller base: purchasing options widely available • eOpen (electronic license tracking): easier to manage and administer a portfolio of licenses • Open Business: simplicity, flexibility and savings based on minimal volume purchase • Initial order requirement of only 5 licenses • No minimum requirement for additional orders • Single price level - no points, no pools • Open Volume: greater savings on larger volume purchases • Initial order minimum 500 points per pool* • Volume pricing level set for two years following initial purchase • No minimum requirement for additional orders • Academic, Charity and Gov’t: Single Price Level, comparable to Open Business

  14. Open License 5.0 Term 2 year term License Offerings Std, PUP, VUP, CUP, UA Initial Order Minimums Business: 5 licenses Volume: 500 points Payments Upfront only Open License 6.0 Term 2 year term License Offerings L, SA, L&SA Package Initial Order Minimums Business: 5 licenses Volume: 500 points Payments Upfront only Open License 5.0 versus 6.0 Only change is a SKU change. All else the same.

  15. Other Programs, Retail, and OEM

  16. Retail – Full Packaged Product • Option to enroll retail server and systems licenses in SA • 90 days from time of retail license purchase • SA only available through Open or Select • Does not apply to Office products • Applications • Keeping upgrades in retail • Office XP: different version in retail and licensing • Cannot enroll Applications in SA without Volume License (!) • Increasingly differentiating products in volume licensing and retail to better address unique customer needs • SA only delivers upgrades for versions sold through volume licensing • Servers • Removing upgrades 10/1 (except SBS) • Systems • Keeping upgrades – Windows Pro Upgrade is the License in Volume Licensing as well • Developer Tools • Keeping upgrades

  17. OEM • Option to enroll OEM licenses in SA • 90 days from time of purchase of Retail or OEM License • Does not apply to Applications Products

  18. Actions for Microsoft and Channel May 10 – Sept 30 Oct 1 – Feb 28 Mar 1 Forward Transition Period Launch Period Steady State Prepare customer for new model changes: Consult with customers to match license needs with purchase options • Discuss available options with customers • Sell Upgrade Advantage • (Sell VUPs) • Sell Software Assurance • Sell Upgrade Advantage

  19. Get “Current” Current = the most recent commercially available product as of Oct 1, 2001 Commercially available = on Oct 1 licensing price list * SA for servers can only be purchased at a component level – there will not be a BackOffice or Core CAL SA

  20. Sales Opportunities • Changes make Upgrade Advantage very attractive option • Grandfathered into Software Assurance • UA has same point value as the underlying product license • Less Cost than VUP plus SA. Best priced option • No purchase necessary in Launch Period • In steady state, eligible for Software Assurance renewals • Will benefit from starting new Authorization number

  21. UA Transition Open • Grandfathered into Software Assurance • UA has same point value as the underlying product license • Less Cost than VUP plus SA. Best priced option • No purchase necessary in Launch Period • In steady state, eligible for Software Assurance renewals • Will benefit from starting new Authorization number • Only Office XP purchased through Volume Licensing will be eligible to enroll in SA. Office OEM and FPP will not be eligible after Oct. 1. May 10 – Sept 30 Oct 1 – Feb 28 Mar 1 Forward Transition Period Launch Period Steady State Upgrade Advantage Renew Software Assurance Automatically enrolled in Software Assurance VUP Renew Software Assurance Purchase Software Assurance

  22. VUP TransitionOpen • In Steady State, only eligible for Software Assurance renewals IF • Purchase Software Assurance in Launch Period • Higher priced option to enroll in Software Assurance • Lower upfront cost • Short-term budget benefit • If Customer still not bought into annuity concept, sell VUP May 10 – Sept 30 Oct 1 – Feb 28 Mar 1 Forward Transition Period Launch Period Steady State Upgrade Advantage Renew Software Assurance Automatically enrolled in Software Assurance VUP Renew Software Assurance Purchase Software Assurance

  23. Sales Focus • Transition Period (May 10 – Sept 30) • Open: UA Push • Launch Period (Oct 1 – Feb 28) • Open: Software Assurance Push for those current • Open: Upgrade Advantage Push for those not current

  24. Summary • Customer must buy License and Software Assurance after the October 1 program launch. • Current customers will only need to buy Software Assurance (Get Customers Current) • Upgrade Advantage customers will be grandfathered into Software Assurance

  25. Resources • Volume Licensing Information • http://www.microsoft.com/business/licensing • Microsoft Sales & Information Center: General sales, product and price information, licensing information, and information on Microsoft marketing materials • 1-800-426-9400 • Microsoft Sales Fax Service: Self-service for whitepapers, product data sheets, technical notes • 1-800-727-3351 • Microsoft World Wide Fulfillment to purchase extra sets of media and books • 1-800-248-0655

  26. Questions?

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