Partner Incentives for Profitability and Growth in a Cloud-First, Mobile-First World

1. “Whether you are doing business in the cloud, on premises, or somewhere in between, Partner Incentives support profitability and growth in a cloud-first, mobile-first world” CSP Direct Bill Partner FY20 Q2 Partner Incentives Update Azure D365 Enterprise Programs CSA Local Campaigns Hosting Surface OSU SPLA SMB Commercial Distributor Global Campaigns OSA CSP M365 Richard Wills & Tom Balchin Microsoft UK Partner Incentives Thursday 3rd October 2019

2. CSP Direct Bill Partner Incentive • Eligibility • Purpose • Incentive rates • Need to know Reward and support CSP Direct Bill Partners for driving the activation and enablement of customers with Microsoft-based Online Services. • Active MPN membership • Attain defined MPN competency at Gold or Silver level • Co-op component will be introduced in H2 • Core program and strategic product accelerator rates • Azure incentives for new Commerce Platform transactions begin in Q2 – delayed from 1st October planned 1st November • New Customer Add accelerators effective 1st October • Global incentive introduced for sales of eligible 3rd party offers on the marketplace • Onboard to incentives tool • Valid Cloud Reseller Agreement 1 Unique accelerators for the 3 Microsoft Clouds (Azure, Dynamics, Modern Workplace), each with defined earning opportunity, launch Oct. 1 2 Global Strategic Product Accelerator includes M365 E3, M365 E5, M365 Business, O365 Biz Premium, the 2 E5 Mini Suites, D365 Business Central 3 Core = Windows Server Std | Strategic = SQL Server 4 Incentives for Azure billed on the commerce platform will be paid in the Modern Commerce Experience Partner Led incentive tool. Incentive guide and other resources available on MPN at aka.ms/partnerincentives

3. Microsoft Commerce Incentives - Azure Partner-led Direct Bill partner Effective Nov. 1, 2019 through Sep. 30, 2020 • Eligibility • Purpose • Incentive rates • Need to know Reward and support partners for driving the activation and enablement of customers with Microsoft Azure Services. • Active MPN membership • Enroll through Partner Center • Valid Cloud Reseller or Distributor Agreement (as applicable) • Microsoft Authorization – authorized as a CSP Indirect Provider as applicable • Local accelerators may be available • Global incentive introduced for sales of eligible 3rd party offers on the marketplace • Incentive guide and other resources available on MPN at aka.ms/partnerincentives * Early Adoption incentive to reward partners for migrating customers from CSP legacy platform to the new commerce platform

4. CSP Customer Acquisition Accelerators for 3 CloudsUnique new customer add accelerators to drive results for each Microsoft Cloud - Launching October 1, 2019 Business Applications Modern Workplace Intelligent Cloud Reward for O365/M365 new customer sales and growth Reward for Azure new customer sales and growth Reward for D365 new customer sales and growth • Two earning thresholds with fixed payout amounts • New customer = customer TPID which achieves, for the first time in a month, $1,000 USD or more in billed revenue • Note: For new customer TPIDs with initial transactions greater than $5,000 USD of revenue in a month, the partner will earn a one-time incentive of $4,000 USD Two-part accelerator: Achieving new customer eligibility Continuedgrowth of that new customer Cap accelerator at $100,000 USD per customer New customer = customer TPID that reaches, for the first time in the previous 12 months, $250 USD in monthly revenue (or $3,000 USD for annual subscriptions) NOTE – Customer must be net new to Microsoft (measured at the TPID level) to qualify for these accelerators

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