Commercial Licensing for Office 365

1. Commercial Licensing for Office 365 Partner Attendee Level: Beginner/Refresher Sales & Pre-sales Market: Mid-Market & Enterprise Speaker: Gabriela Gradden

2. Contents Introduction Evolutions of Office Objectives Understand the evolution of Office 365 Overview of products with the new Office & Office 365 Learn about how we will license Products Office 365 Exchange Online SharePoint Online Lync Online Project & Visio Online Licensing New Office 365 ProPlus Purchasing Paths Plans Opportunity Partner Programs Next Steps Q&As

3. Introduction

4. Evolution of Office Applications Services Clients and Servers • Full Office streamed to your PC on demand • Roaming documents, applications and settings Office as a Service • Delivered as a subscription to businesses

5. Business Value

6. Trends impacting the way we work Devices People Cloud 50% For the first time in modern history, workplace demographics now span 1 billion 3 generations of enterprise customers are “on the road” to cloud smartphones,4 years ahead of predictions

7. Microsoft’s productivity vision Hybrid On Premises Online Best experience across devices Cloud on your terms Messaging Voice & Video Content Management Enterprise Social Reporting & Analytics Integrated best-of-breed solutions

8. Microsoft enterprise-grade cloud Globally redundant data centers Massive network to minimize latency Continually advancing compliance Multi-level security Automation saves costs and energy $3bn+ investment in cloud infrastructure ISO27001, EU Model Clauses, HIPPA, FISMA, IL2 Benchmark setting Power Usage Effectiveness (PUE) Dark Fiber between hubs with multiple international edge points DC, physical, software

9. Business challenges for midsize businesses Our mobile workers need access to more than just email, and without using a VPN. Teams need to be able to collaborate on the same documents. WorkTogether AnywhereAccess We still need to get our work done when we are travelling. We have to make sure everything works on everyone’s mobile devices. In some cases, we want more control over what tools some of our employees have. If we have a problem, we need somebody who is going to be responsive. Best Value EasyIT Managing complex infrastructure takes our IT staff away from the important projects. We are cost conscious nowadays more than ever.

10. Products & Licensing 101

11. Office 365 At a Glance Always the latest version of Office and Office Web Apps Complete Office experience with services integration Familiar Office user experience Per-user licensing Online meeting with desktop sharing IM & Presence across firewalls GAL search with contact card Windows Live federation Access documents offline Document-level permissions My Sites to manage and share documents Share documents securely with Extranet Sites Free/busy coexistence Integrated personal archiving Retention policies and legal hold 25Gb mailbox with voicemail & unified messaging

12. Before I go on… Office 365 is the name for the suite of products *within rules Customer can buy Exchange Online Sharepoint Online Lync Online Office 365 Pro Plus Standalone Customer can buy bundles of these products 2 or more products=cheaper Plans Customer can mix and match plans and standalone products* Mix & Match

13. Customer Segments Today’s Focus Education Midsize Business Enterprise Government Consumer Small Business Office 365 Home Premium Office 365 Small Business Premium Office 365 Midsize Business Office 365 Enterprise Office 365 Enterprise Office 365 Education • Office client • Non commercial user rights • Available via FPP, Direct • University version available • Tailored offer • No IT required • Targeted up to 10 users • Hard cap of 25 users • Available via FPP, Direct, Syndication • Single tailored offer • Designed for generalist IT • Targeted up to 250 users • Hard cap of 300 users • Available via Open/OV/OVS, Direct, Syndication • Range of offers by user type • Advanced admin tools • Enterprise IT capabilities • No hard cap • Available in EA, Direct, Syndication • Same offering as Enterprise plans • IL2 accredited • G-Cloud • Available in EA, Direct, Open • Enterprise admin tools • Education-specific features • Available in CASA-EES, Direct, OVS-ES

14. Channel Availability Multiple ways to acquire Office 365 Government Enterprise Midsize Business

15. Office 365 Enterprise Enterprise offers provide the greatest range of flexibility and control for customers with sophisticated needs Enterprise CUSTOMER PROFILE Active Directory Push deployment of Office Client Enable hybrid deployments Advanced Admin Portal Sophisticated IT Enterprise-grade features Range of needs across users Typically 250+ users Office 365 Enterprise Archiving and Legal Hold Rights Management Enterprise Features • Range of offers by user type • Advanced admin tools • Enterprise IT capabilities Business intelligence Roaming and mobile access Office 365 ProPlus Email, Collaboration and Communication Range of offers to meet needs of different users Includes standalones, kiosk and Enterprise suites

16. Enterprise Suites Exchange, SharePoint and Lync work together to provide even more value in the Enterprise Suites E4 E3 K1 E1 Kiosk Enterprise

17. Enterprise Suites Exchange, SharePoint and Lync work together to provide even more value in the Enterprise Suites K1 E1 E3 E4 E4 E3 K1 E1

18. Office 365 Midsize Business Midsize Business A new offer designed specifically to address the end-user and IT needs of midmarket customers CUSTOMER PROFILE IT Generalists Enterprise quality Value Focused Typically 10-250 users Active Directory Push deployment of Office Client Full Admin Portal Always up to date Roaming and mobile access Office 365 ProPlus Full email with Exchange Online (Plan 1) Document sharing with SharePoint Online (Plan 1) IM and virtual meetings with Lync Online (Plan 2) Email, Collaboration and Communication

19. Targeted Offers Providing the productivity tools businesses need, including full Office client Midsize Business Enterprise Small Business Premium

20. Stand-Alones Existing SKU/Feature New SKUs/Features

21. New Services

22. Office 365 ProPlusDeploy Office fast without giving up control Office as a Service Personalized settings roam between devices 5 installs per user on PCs or Macs Manageable background updates Upgrades Included Familiar & full Office applications -locally installed, available offline Side-by-side installswith older versions Automated softwaredistribution support

23. Office deployment reimagined • Office apps are streamed from Office 365 or on premises tools Streaming installation allows Office apps to run almost instantly & features load based on usage Use Office 365 both online and offline Works with existing Office add-ins, customizations, macros and legacy Office file formats Unobtrusive background updates with IT control Support for update testing & push deployment • Office side-by-side means that you will not need to uninstall previous versions of Office in order to use the new Office

24. Get back to where you left • Sign-in to Office • Recently used document list roams with you Office roams with you Office knows your settings and preferences when logged-in Your documents available and in sync across all your devices, on-line or offline Resumes where you left off in docs and presentations • Save to cloud with SkyDrive Pro

25. Work across Office apps and Office Web Apps Extend Office with cloud apps Hosted in the cloud with minimum device footprint Roam with your data & settings Distribute & manage with IT app catalog (or Office Store) Develop apps for Office & SharePoint using web standards (HTML/CSS, JavaScript or PHP) • The Bing Maps app in Excel, maps the addresses highlighted • The Bing Maps app detects and address in the email and maps the location

26. Your Partner Opportunity

27. Opportunities across customer lifecycle

28. Two ways to sell Office 365 Open / FPP Advisor Exchange Online SharePoint Online Office 365 ProPlus Lync Online

29. Office 365 Advisor Model • Why sell this way? • - No credit risk • Simple and fast • Low cost • Monthly payments • Microsoft invoices the customer • Widest choice of what to sell 3. Microsoft pays Partner Rebate 2. Customer pays Microsoft directly. Partner is associated to the customer as the “Partner of Record” Partner 1. Partner sells to a customer Customer 4. Customer pays Partner for additional services

30. Office 365 via Open / FPP Channel / price list Distribution SKU • Why sell this way? • Topline revenue • Upfront margin • Integrate with your own services • Single invoice to the customer Open Open Value OV Subscription Midsize Business Digital via VLSC Small Business Premium Topline revenue Upfront margin Physical via FPP, POSA & ESD FPP

31. Extends sales to other workloads   Increased attach of partner services Customers will require end-user training, ongoing support, etc. Ability to upsell with related products Other software & hardware could be bundled as part of purchase    = Included in product 

32. Plan, Deploy, and Manage Office 365Average 1st year revenue range Based on 5,000 seat customer, total revenue and per seat calculations Business requirements change Customization LOB integration Up to $100K advisor fees Deployment Plan Manage £82K – £248K (£16 – £49 per seat) £53K – £119K (£10 – £24 per) £111K – £211K (£22 – £42 per) IT training Support Organizational changes UpdatesNew services End user education Acquisitions New hires *Source: Forrester Consulting, “The Partner Opportunity For Office 365 Hybrid Deployments,” July 2012 

33. Key Targets Old Server Growing Needs Old Office Hosted Email

34. Key Targets Old Server Growing Needs Running an old email server Worried about security and cost Budget is affecting upgrade decisions Reliability and availability issues Overtaxed IT staff is de-prioritizing strategic work Fast-growing with multiple offices Limited IT staff Want to deliver latest capabilities easily and quickly Lack of modern collaboration tools Limited IT budget Needs Old Office Hosted Email Using older versions of Office Traditional view of IT, only upgrade when needed Budget is affecting upgrade decisions Limited support for mobile workers Users frustrated with limited capabilities Using web-based email Self-service IT, prefer simpler solutions Concerned about data protection Issues with unplanned downtime Users frustrated with unfamiliar and multiple disconnected tools

35. Next steps Visit www.microsoftcloudpartner.com Join the Cloud Essentials / Cloud Accelerate programs Connect with your PAM or MPN/Office365.com to learn more

36. Cloud Program Benefits Overview Cloud Accelerate Build a profitable cloud business Cloud Deployment Build a profitable deployment practice Cloud Essentials Jumpstart your cloud business 250 seats of Office 365 and CRM Online, 100 seats of Windows Intune 25 seats of Office 365, Windows Intune, and CRM Online Internal Use Rights Training Access targeted cloud technical and sales training courses, including Ignite for Office 365, learning paths and Practice Accelerator to help you build your cloud expertise and deployment capabilities RG1 5HL RG1 5HL • Cloud Accelerate badge & press release, marketing kits, priority listings in the Microsoft Pinpoint online marketplace, and Microsoft Office 365 marketplace Marketing • Cloud Deployment Partner designation & • press release. • Marketing kits, priority listings in the Microsoft Pinpoint online marketplace and Microsoft Office 365 marketplace Access to online technical support communities • Access to online technical support communities and 5 advisory hours Support Partner Technology Consultant onboarding a and pre-deployment support plus break fix support Tools Delegated administration and partner dashboard to manage customer trials and customer accounts • Cloud deployment planning tools Channel Incentives Core advisor incentives available for qualified partners • Earn advisor accelerator incentive for both MOSA and Enterprise agreements Earn advisor accelerator incentive for EA plus opportunity to participate in deployment component of EA Customer Special Offer (effective: Oct 1, 2012 – March 31, 2013)