Reinventing Productivity: Our Shared Opportunity Need to think about the title. It’s long but on-target. <Insert name> <Insert title> <Insert organization>

PRISM FY16 4/19/2018 7:25 AM Microsoft’s mission Empower every person and every organization on the planet to achieve more This mission is at the core of how we hire and enable our own employees, how we design and create our products and services, how we go to market, including our partnerships with you, and how we compete. It’s a mandate for every one of our employees to do their jobs in way which is accretive to this goal every day. It’s not easy, and we have our share of “learning moments”, but we keep at it relentlessly. So today I hope you find the information and ideas we share to be useful and helpful in empowering you to be even more successful in running your businesses. © 2014 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Microsoft Worldwide Partner Conference 2016 4/19/2018 7:25 AM Create more personal computing Digital Transformation Build the intelligent cloud platform Reinvent productivity & business processes © 2016 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Microsoft Worldwide Partner Conference 2016 4/19/2018 7:25 AM Reinvent productivity & business processes © 2016 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Digital trends are changing the way people work

Microsoft Worldwide Partner Conference 2016 4/19/2018 7:25 AM Employees work on nearly 2x the number of teams, compared to 5 years ago © 2016 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Microsoft Worldwide Partner Conference 2016 4/19/2018 7:25 AM People working remotely has increased 2015 4x 1995 © 2016 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Microsoft Worldwide Partner Conference 2016 4/19/2018 7:25 AM Information is more widely available… 90 % of the world’s data was generated over the last 2 years © 2016 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Microsoft Worldwide Partner Conference 2016 4/19/2018 7:25 AM and it’s being shared more freely… 87 % of senior managers admit to uploading work files to a personal account © 2016 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Office 365 The most complete, secure cloud productivity service 4/19/2018 7:25 AM Office 365 The most complete, secure cloud productivity service Authoring Word Excel PowerPoint OneNote Sites & Content Management OneDrive SharePoint Delve Mail & Social Outlook Exchange Yammer Chat, Meetings & Voice Skype Analytics Power BI MyAnalytics Secure and Compliant Manageable Extensible Always up to date © Microsoft Corporation. All rights reserved.

Microsoft Worldwide Partner Conference 2016 4/19/2018 7:25 AM Built for hyper-scale 265 petabytes of data stored 300B user authentications handled 200B emails analyzed for malware 110M Skype meetings © 2016 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

70M + Office 365 commercial monthly active users 4/19/2018 7:25 AM © 2014 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Microsoft…has more than 80% share of companies using cloud email with revenue above $10 billion” “ February 2016 Gartner Press Release, “Gartner Says Cloud Email Is Gaining Traction Among Enterprises Worldwide”, February 1, 2016 Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

New advanced value for enterprise customers PRISM FY17 4/19/2018 7:25 AM New advanced value for enterprise customers SECURITY Built-in enterprise protection ANALYTICS Extending advanced analytics to all VOICE Complete cloud communication © 2016 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

PRISM FY17 4/19/2018 7:25 AM © 2016 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Traditional opportunity WW IT spend ($T) 8% CAGR (’80–’15) Today 5% of WW GDP Worldwide IT growth has had a consistently amazing rate of around 8% and the opportunity looks as bright as ever, representing 5% of Worldwide GDP. Sources: IMF, Gartner, IDC, CSI Market, Microsoft analysis

Digitally connected places and things Exec Retreat 2016 4/19/2018 7:25 AM New opportunity GLOBAL GDP % of GDP SURPLUS ~15% COGS ~60% Digitally connected places and things NON-IT OPEX (PEOPLE) ~20% Efficiency Decision making Productivity IT ~5% © 2015 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Combined total addressable market MGX FY17 4/19/2018 7:25 AM Addressable market ANALYTICS $30B PRODUCTIVITY $49B $160B+ Combined total addressable market Slide Objective: Discuss addressable market opportunities The combined addressable market opportunity of the workloads underlying our SPE offering is estimated at about $160B, consisting of: $49B Productivity market, our bread and butter business $35B Security market, where we can think of ourselves as the “largest security company, nobody has ever heard of” (Julia White) $47B Voice market, which we are conquering with our new Skype for Business offerings $30B Analytics market, where we are gaining market share with offerings like Power BI VOICE $47B SECURITY $35B Source: IDC Worldwide Semiannual Software Tracker, 2015H1, Real-Time Communications & Meetings data from Wainhouse © 2016 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

A vibrant Office 365 partner community Microsoft Worldwide Partner Conference 2016 4/19/2018 7:25 AM A vibrant Office 365 partner community YoY growth in partners driving Office 365 active usage 50% 100% increase in usage of 3rd party Office apps in the last 6 months 19% higher margins earned by Microsoft partners than key competitors* Phenomenal growth 50% YoY growth in partners driving active usage of Office 365 Very active community In Q3 we announced that Office 365 had exceeded 70M Monthly Active Users -- The vibrancy of our Partner community has been fueled by customer interest and momentum Seen 100% increase in usage of 3rd party Office apps in the last 6 months. AMI-PARTNERS research shows Microsoft cloud partners 19% more profitable than with key competitors. You are the community Each one of you in the room has helped build this community. Thank you for all your work. * SOURCE: AMI-PARTNERS 2016 © 2016 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Partner paths to growth Build first-party apps Bundle with hardware and third-party apps ENHANCE WITH SOLUTIONS Manage on behalf and extend support Drive continuous user training and adoption DELIVER MANAGED SERVICES BUILD NEW PRACTICES Content & Collaboration Security Analytics Voice This is what we at MS believe it takes to drive growth in the new model… Each of you has an existing foundation. For many this is email and Office apps. Grow by building new practices, delivering managed services and enhancing the platform with solutions.   Build new practices: Branch out by building new practices around the 4 major innovation areas. Managed Services: Delivering managed services for Office 365 is different to the traditional on-prem model. It means: Managing the tenant and infrastructure on behalf of the customer vs. operating the Exchange server 24 x 7. Driving continuous user training and adoption vs. once off change management. Example: Partners that are leading are offering QoS for voice. Solutions: Differentiate yourself by building and packaging solutions that enhance the platform. Examples: Skype Certified Hardware like phones, devices like tablets, ISV solutions like DocuSign, etc. If you can deliver these elements in a repeatable way, you can get to a long and thin model. EMAIL OFFICE FOUNDATION

4/19/2018 7:25 AM © Microsoft Corporation. All rights reserved.