Office 365 for Education through OVS-ES

1. Office 365 for Education through OVS-ES Training for Distributors and AER’s FY14 Name: Position:

2. Agenda Sales Guidance O365 for Academic Programs Overview O365 for Education Licensing through OVS-ES Provisioning Resources

3. Office 365 Education Overview

4. The Value of Microsoft Office 365 for Education • Works seamlessly with Microsoft Office programs* that users already count on • Provide sites for students and educators to work together in real time on assignments, group projects, and research • Communicate seamlessly from email to instant messaging to online classrooms • Helps students and educators become more productive with a 25GB mailbox that unifies email and voicemail (Unified Messaging) meet students and educator needs • Provides anywhere-access to email, assignments and calendar on most devices** • Works with devices that students and educators use most -- including PC, Mac, Windows Phone, iPhone, Android and BlackBerry*** • View and edit assignments with Office Web Apps across a broad range of browsers (Internet Explorer, Firefox, Safari, and Chrome) • Connect securely over Internet with HTTPS without the need for VPN enable learning from anywhere Plus… lower costs Enterprise class security, reliability, and privacy • * Requires Microsoft Office 2007 or higher for best experience • ** Access from mobile devices depends on carrier network quality and availability • *** Hosted Blackberry service is an add-on service Microsoft Confidential – For Partner Use Only

5. Office 365 at a glance Familiar and full Office user experienceFast deployment and broad management controls Works with your on premises email and storage 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

6. Office 365 for Education academic plans Exchange, SharePoint, Lync and Office working together to provide enterprise-level value *Office Pro Plus ( includes Full Lync Client with meeting recording capability) USD estimated prices per user/month

7. Stand Alones Available Through MOP Existing SKU/Feature New SKUs/Features Price Includes Plan Faculty Students *EOA and EOP standalones to be released in Spring 2013. Specific dates to be announced soon. Prices are US$ Net prices – Local pricing may vary

8. New Services Available Through MOP Price Includes Plan Faculty Students

9. Sales Guidance

10. 74% of customers want their trusted cloud service provider to also offer on premises expertise. Hybrid Cloud offers a great opportunity for Partners Projected growth rate for Public IT cloud services spending is five (5) times that of the IT industry overall. Experienced cloud partners estimate ramping up to the cloud would be much faster today – as fast as 6 to 12 months. A balance between on-premises and cloud spending is the reality – the opportunity is in integrating cloud and on premises systems together optimally. Source: “Successful Cloud Partners”, an IDC InfoDoc, 2013

11. Flexibility of the hybrid cloud Help our customers extendcommunication & collaboration features to the cloud for efficiencies and flexibility while maintaining more robust workloads on premises. Best productivity experience across PC, phone, and browser The cloud on your terms Online On-premises Windows Server & Client Exchange Online AND Unified Communications SharePoint Online SharePoint Enterprise Features Lync Online Management & Security Archiving, Storage, Voice Microsoft Confidential – For Partner Use Only

12. Helping our partners sell with the cloud Office 365 for Education can help our partners broaden their service offerings, boost operating margins, drive ongoing management business, and reinforce their trusted advisor role. Research* shows cloud-oriented partners outperform their peers in gross profit, revenue per employee, new customer acquisition, and growth. Sell in support, migration, and customization services to support customer’s move to the cloud. Managed Services (data protection, recovery, cloud backup, support, training, etc.) Drive ongoing annuity revenue with monitoring and management services Cloud Migration Services (data, email, contacts, 3rd party apps) Customized Solution Development (custom sites, applications, content management) Reinforce your trusted advisor role: help customers evaluate and plan for the cloud. Cloud/On-Prem Integration (AD, user account creation, testing) Boost operating margins and increase deal velocity by leading with the cloud. Free A2, A3, A3 Add-on, Office 365 ProPlus * IDC “Successful Cloud Partners” Sponsored by Microsoft Microsoft Confidential – For Partner Use Only

13. Office 365 for education - available channels • Microsoft Online Portal (MOP) (www.office365.com). • Offer the free Office 365 plan A2 alongside migration, integration, and management services. • Customer signs Microsoft Online Services Agreement (MOSA). • Designate Partner of Record on customer’s O365 account to receive advisory fees on paid services. • Customers may purchase Office 365 Plan A3 and other paid plans with credit card or purchase order. • Open Value Subscription–Education Solutions (OVS-ES). • Upsell the Office 365 Plan A3 along with on premises solutions. • Products available include: Office 365 Plan A3 and Office 365 ProPlus. • Customer should continue to get the free Office 365 Plan A2 through the Microsoft online portal. • Enrollment for Education Solutions (CASA+EES). • Upsell the Office 365 Plan A3 and Plan A4 along with on premises solutions • Products available include Office 365 Plans A2, A3, A4, Office 365 ProPlus and all Office 365 stand-alone plans. * A3 and Office Pro Plus Subscription are also available through the Open Academic program. ** Academic customer eligibility criteria applies

14. Recommendedsales approach Lead with the Education Desktop on-premises Position free A2 through www.office365.comas means to extend capabilities into the cloud and as a complement to on premise deployment Lead with Education Desktop Upsell to Office 365 A3 using the add-on SKU Fall back to free A2 Plan for faculty/staff Incorporate service offerings to boost revenue and margins. Sell inpackaged services, application customization, cloud migration, etc. Upsell to Office 365 Plan A3 Move students to the cloud with free A2 Plan Attach Exchange Online integration and other services to your sales offering Offer free* A2 for Students *No license fee; doesn’t include deployment or support costs associated with the service.

15. O365 Open for Education Licensing through OVS-ES

16. Academic volume licensing options • Committed Subscription Programs* • Commit to standardize all of organization’s desktop with Microsoft Enterprise Products and obtain better pricing. • Software Assurance is INCLUDED • 1 or 3 year contract term • Transactional Programs • Order when needed. Pay as you go • Software Assurance purchase is OPTIONAL • Open is 2 year, Select Plus contract does not expire Open Value Subscription – Education Solutions 5 FTE or more On-premises subscription and O365 A3 and O365 ProPlus Academic Open License 5 licenses or more (waived for O365) On-premises perpetual and O365 A3 and O365 ProPlus Small and Mid-sized Organizations Academic Select Plus ~250 desktops or more On-premises perpetual Enrollment for Education Solutions 1,000 FTE or more On-premises subscription, O365 for Education (all plans), and other online services Large Organizations Microsoft Online Subscription Agreement No minimums, direct channel (customer buys from Microsoft through MOP) – www.office365.com O365 for Education (all plans) * Committed Subscription Programs include School Agreement for primary/secondary institutions (where available)

17. Office 365 in Open Academic programs • Coming to OVS-ES and Academic Open • Available September 1, 2013 • Price lists preview August 1, 2013 for Partners

18. Why Office 365 Open • Giving Partners the opportunity to Sell Office 365 to our small and medium-sized Education customers. • Meet all customer licensing needs through a single agreement. • Provide flexibility to customers so they can move to the cloud at their own pace. • Increase partner value by providing new products to sell and the ability to attach professional services. Increased Value to Partners Scale through Reseller + Disti. Channel Software + Services via 1 Agreement Customers move the cloud at their own pace

19. Office 365 for Education in OVS-ES • Sell Customers OVS-ES, then add O365 plans • Meet Minimum Requirements: • Organization-wide Commitment • At least one Desktop Platform Product • 5 FTE or more • Add Office 365 Services for Faculty/Staff or Students: • A3 full USL • A3 Add-On • Office 365 ProPlus • Per user, in any quantity as Additional Products • In OVS-ES, Office 365 Plans are not platform online services and do not count toward the org-wide commitment.

20. Adding free and paid Office 365 plans to OVS-ES • Institutions can add the free Office A2 plan through MOP and A3 or Office 365 ProPlus through OVS-ES. • All O365 licenses are assigned per user and may be ordered in any quantity needed. The user count may exceed the FTE count for on premises ordering. MOP 260 Users in Organization OVS-ES 200 FTE Org-wide Count Defined “Organization” = 200 FTE / 260 Users OVS-ES 75 UsersOrder in any quantity Education Desktop Plan A2 (Free) Plan A3 Add-on Plan A3 Add-on – through OVS-ES License per user in any quantity needed after qualifying for OVS-ES Education Desktop Org-Wide License for 200 FTE All users and on-premises devices are covered Plan A2 – Free through MOP License for all 260 Users No on-premise license for related products

21. Office 365 for Education – “EES” Comparison

22. Ordering, Provisioning and Renewing

23. Office 365 through OVS-ES and Academic Open Partner Orders SKU from Open/OVS-ES Price List Retrieve Digital 5x5 Product Key from VLSC Input Product Key to Activate Service on Office365.com • Sold as 1 year subscription • Up-front payment • Available as “Additional Product” and may be ordered in any quantity • OVS-ES: No minimum threshold once program minimums are met • Academic Open: 5 License minimum order requirement waived. A new order starts a new contract. • Input 5x5 product keys on http://www.office.com/setup365to activate service • If customer has an O365 tenant already, then log in to the account to input the product keys • 1-year service subscription term begins the date the keys are redeemed • “Partner of Record” set up needed to ensure partners receive communications about renewal for customers and secure future Advisor Fees for any additional transactions processed at Office 365 Portal (if applicable). • Customer and partner receive order confirmation email, per existing process with link to Volume Licensing Service Center (VLSC) • 5x5 Product Keys stored in customer’s VLSC account • In Open License, customer signs VL contract that contains Cloud Terms post order submission

24. Ordering and provisioning process overview End Customer Order Order Order Invoice Invoice Invoice Microsoft Distributor AER Help activate O365 Order confirmation is sent to customer and reseller, per existing process O365 service related communications sent to administrator on record 24

25. Retrieving product keys Retrieve Digital 5x5 Product Key through VLSC • Once the partner places the order, an email is sent to Customer and Reseller within hours of order acceptance • 5x5 Product Key appears in VLSC at the same location as Product Keys for On-Premise Software OVS-ES Order Confirmation Academic Open Welcome Letter *Both End Customer and Reseller will receive the email. *Reseller is copied only if Reseller email address is captured on the PO

26. Redeeming product keys Redeem Product Key at Office 365 Redemption Site • Each SKU purchased will generate a key for the number of seats purchased • Keys are redeemed on http://www.office.com/setup365 • If customer has an O365 tenant already, then customer should log in to their account to input the product keys • Users are assigned an account from customer’s Office 365 tenant

27. OVS-ES Agreement vs. O365 subscription termOVS-ES contract and Office 365 subscription expiration are independent and not coterminous. Anniversary Order placed for on-premises products Anniversary Order placed for on-premises products Order Placed for O365 SKUs through OVS-ES A3 Renewed by reordering SKU through OVS-ES or from O365 Portal. A3 Starts… Keys Redeemed: A3 1 year subscription starts when Keys are redeemed. T&Cs are suppressed: OVS-ES customers will not be prompted to accept terms again in MOP. A3 Renewal Add A3 Seats Seats Added Mid-Term: A3 subscription expiration date needs to be the same for all seats. Any extra months of usage will be spread over all existing seats within the same subscription. 27

28. Academic Open vs. O365 subscription term Purchase from Open License starts Open Authorization Number for 2 years. A3 Renewed via Volume Licensing or from O365 Portal. A3 Starts… Keys Redeemed: A3 1 year subscription starts when Keys are redeemed. Renewal Add Seats Seats Added Mid-Term: A3 subscription expiration date needs to be the same for all seats. When adding seats mid-term, any extra months of usage will be spread over all existing seats within the same subscription. 28

29. Two ways to add A3 To remain fully licensed end-to-end for communication, collaboration, and productivity tools, customer is better off adding the A3 Add-On to on-premises Education Desktop Suite. • Customer Scenario: • 2,000 FTE • 1700 Full Time Employees • 900 Part Time Faculty A3 Add-On A3 Full USL A3 Add-On x 2600 Users = $62,400 A3 full USL x 2,600 Users = $127,608 Edu Desktop x 2000 FTE = $94,080 On Prem Components x 2000 FTE = $48,240 Total Spend: = $156,480 Total Spend: = $175,848 Based on Level A NET, GBP

30. additional resources Office 365 Resources for Partners https://mspartner.microsoft.com/en/us/pages/solutions/office-365.aspx EES program information, including: PPT overview, Partner FAQ, & Customer Ready PPT https://mspartner.microsoft.com/en/us/Pages/licensing/enrollment-for-education-solutions.aspx Microsoft® Enrollment for Education Solutions Microsoft Confidential – For Partner Use Only

31. Appendix

32. FAQ Q? Will Partners be notified of the upcoming expiration? The Partner of Record will receive Office 365 renewal reminder 60, 30, 7 and 1 day(s) prior to expiration. Underlying agreement expiration notice is independent since it is not coterminous with Office 365 Subscriptions. Q? What are the Partner requirements to sell Office 365 through OVS-ES and Academic Open? Partners must be authorized education resellers and establish a reseller relationship with one of our authorized distributors to be able to sell Office 365 subscriptions through the OVS-ES and Academic Open programs. please learn about Microsoft Volume Licensing from http://www.microsoft.com/licensing/Default.aspx Q? How do I add users of Office 365? There are three ways: (1) Customer buys new product key from OVS-ES or Academic Open programs and redeems online, (2) Advisor sends customer order via MOP, customer pays directly, and (3) Customer purchases seats directly on MOP. Q? How do I decrease users of Office 365 Subscriptions? Reducing the number of seats is possible during the renewal process directly from Office 365 Administrative Portal. Q? What are the options to renew Office 365? There are three options: (1) Customer buys new product key from OVS-ES or Academic Open programs & redeems online, (2) Advisor sends customer order via MOCP, customer pays directly, and (3) Customer purchases seats directly on MOCP.

33. Current international availability Available in 88 countries, 32 languages, and 19 currencies. Office 365 2013 version available 2/27 in Direct and 3/1 in VL for all countries except for Brazil, Bulgaria, Croatia, Czech Republic, Estonia, Greece, Hungary, Kenya, Latvia, Lithuania, Macedonia, Montenegro, Nigeria, Romania, Serbia, Slovakia, Slovenia, Turkey and Ukraine, which will have it on 4/16 in Direct and 5/1 in VL Office 365 available in all channels unless otherwise noted Where applicable, limited channel availability indicated as follows: Direct [D], EA [E], and Syndication [S]

34. Operational Processes

35. Reseller vs. Distributor Roles

36. Reseller vs. Distributor Roles • Distributor • Train Resellers about O365 Open • Validate Resellers’ Order • Reject: Invalid Countries, Invalid Order Size, etc. • Invoice to Reseller • Reseller • Sign up to Advisor Program (recommended) • Validate Customer’s Order (Country, Size, etc.) • Place Order to a Distributor • Receive Email from Microsoft • Access VLSC and retrieve Keys • Invoice to End Customer

37. Reseller vs. Distributor Roles • Reseller • Help End Customer activate O365 Subscription • Ensure Partner of Record is set up correctly • Receive Renewal reminder • Renew: Several options exist. Know the difference and implications. • Distributor • Ensure keys are redeemed and O365 is activated promptly after PO. • Know the escalation path and guide resellers • Ensure resellers are trained on renewal activities.

38. Closer Look at Agreement Terms Purchase of O365 SKU via Academic Open • Office 365 is sold as up-front purchase of a 12 months Subscription. • Volume License Agreement term and O365 subscription term are not coterminous. • Order can be placed regardless of remaining term of agreement. Renewal can be done via Volume Licensing or from O365 Portal. A3 A3 Renewal O365 1 year subscription starts when Keys are redeemed. Add A3 Seats O365 Subscription expiration date need to be the same for all seats. When adding seats mid-term, any extra months of usage will be spread over all existing seats within the same subscription. 38

39. Where in VLSC are keys stored? Path #1 • Keys organized per customer1 Licenses ▼ Relationship Summary ▼ License ID ▼ Product Keys 1Organized per License Number. In Open License, each order generates unique License Number. In Open Value Programs, each Agreement has one License Number. Multiple O365 orders in Open Value will result all keys to be displayed on the same screen.

40. Where in VLSC are keys stored? Path #1 Licenses ▼ Relationship Summary ▼ License ID ▼ Product Keys • This is the recommended path to retrieve multiple Online Service Activation (OSA) Keys from a given order Filter by ‘OSA’ key type to view O365 Keys Contoso Inc. 12345678 1234 Fifth Street Anytown, USA Link to redemption site inside FAQ Click here to export keys to Excel

41. Where in VLSC are keys stored? Path #2 Download and Keys ▼ Select Product ▼ Key • Keys are organized per Product Family • Each SKU is a different Product Family

42. Where in VLSC are keys stored? Path #2 Download and Keys ▼ Product ▼ Key • Keys can be redeemed at Office365.com/setup365 • Cut and Copy function will work For Partners managing key retrieval on behalf of many end customers, all of customer’s License ID and Organization Name shows up here. Key redemption status is not available for Office 365 during initial launch. Customers/Partners are urged to redeem all keys promptly after each purchase.

43. O365 for Education SKU pricing in OVS-ES USD estimated retail prices per user/month