What is CSP & how does it apply in EDU?

Microsoft Cloud Solution Provider Enable YOU to grow, attach, and share Microsoft Azure What are we trying to accomplish? Own and control the billing Provision, manage and support Sell integrated offers and Services Reducing costs and complexity for our customers Supporting you as the center of the customer relationship Increase your opportunity to solution sell and easily integrate your own tools, products and services Office 365 Dynamics CRM Online Enterprise Mobility Suite Create cloud subscription + partner offer Cloud Solution Provider Program is both a licensing model and also a partner engagement program that puts partners at the center of the customer relationship by enabling partners to sell and service the complete customer lifecycle. It’s also a platform for maximizing partner profitability in the Cloud economics. Place order for Microsoft Cloud Services 1 3 Set package price and sell to customers 2 Enabling YOU to offer a single packaged solution

EDU offers in CSP Office 365 Intune for Education *April 4/13/2018 4:50 AM Office 365 Intune for Education *April Dynamics CRM Online Power BI Minecraft: Education Edition Azure metered services *No incremental EDU discounting …..and more EDU offers in CSP Qualified EDU offers with Academic Pricing are available to Authorized Education Partners (AEP) in CSP Most current EDU offers and Academic Pricelist can be found on the CSP Portal on MPN in the “For Partners Onboarded in the CSP Program” page. © Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

CSP & Partner Economics 4/13/2018 4:50 AM CSP & Partner Economics Potential business models enabled through CSP & partner profitability © Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

I am a SI / Reseller Capture the customer lifetime value Traditional model New model YEAR 1 YEAR 2 YEAR X YEAR 3 UPGRADE TO NEW VERSION LAND EXPAND I am a SI / Reseller Capture the customer lifetime value If you are a SI or Reseller, deliver & capture Customer Lifetime Value through CSP: Schools are looking for ways to optimize operations in order to stay competitive. Become the trusted advisor of your education customers and guide them through the digital transformation journey. Leverage every customer touch points enabled through CSP, to look for opportunities to improve a system or add a tool and services to better serve customers. In return, capture the recurring revenues in perpetuity enabled through the relationship and trust you’ve built with your customers. © Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

I am an ISV Own the customer relationship & Increase customer reach If you are an ISV, CSP will enable you to Embed and resell Microsoft services directly to your end customer as part of the total application or service offering you provide. Power your solution with Azure and provide management services as part of the application or services you offer and charge customers on a subscription basis. (provide the operations of the app – involving user provisioning, policy management, delivery and maintenance of the SaaS solution) Along with your unique solution, resell & support MSFT solutions – expand product portfolio Also, think about leveraging CSP partners to expand your customer reach Application lifecycle mgmt. & support : provisioning, policy mgmt., delivery & maintenance Other MSFT Cloud stacks + mgmt. services Tap into the CSP partner ecosystem © Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

I am new to reselling Cloud If you are new in reselling Cloud… CSP is a great place to start as you can start developing direct customer relationship. If you do not have infrastructure to support customer billing, provisioning, and support, you can always participate through the Indirect CSP model (+100 CSP Indirect Providers WW) CSP is an easy to place to start. Get started & grow. © Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Partner Average gross margins 4/13/2018 4:50 AM How do I make money? Partner Average gross margins (aka.ms/cloudprofit) CSP margins & incentives Direct CSP partner margins Azure = 15% Office 365 (paid SKUs), Intune = 20% Dynamics = 25% Incentives requirements & details Active MPN ID and signed agreement Managed partner list Onboard to Incentive Payment Tool 8% for direct partners & indirect resellers (FY17 rate) Local incentives may be available Partner Margin & Incentive information on the left hand side. However, the ultimate profit of successful CSP partners should really be coming from the price of the total solution that you provide to the customers. Find out more at aka.ms/cloudprofit © Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Financials - Example 4/13/2018 4:50 AM Partner services Ongoing management Services/ app Lifecycle mgmt X$ / Month Partner Productize IP Avg. 35% ~ 75% margin Deployment/ Customization Consulting Services Analytics & Operational biz intelligence Microsoft EDU services stack O365 Add-ons $/user/mo Minecraft Education Azure & Cloud IT Mgmt $X/mo CRMOL Product margin (15%~25%) 8% CSP incentive Microsoft EDU core offerings Microsoft is committed to create more customer demand & help you deliver more MSFT offerings – the left and middle. With CSP, we make it easier for partners to build & deliver Partner Services to your customers. New Windows 10 device & O365 $249 / device (example) Intune for Education $30 / device Device margin 20% margin 8% CSP incentive © Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

How do I get started? 4/13/2018 4:50 AM © Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Qualification 1 2 Cloud Solution Provider Authorized Education Partner Partners will need to be authorized as both a Cloud Solution Provider (CSP) and an Authorized Education Partner (AEP) to access Education SKUs through CSP. All partners in this program must offer Academic Licenses only to Qualified Educational Users (QEUs). 1 2 Cloud Solution Provider Authorized Education Partner CSP allows partners to sell Microsoft Cloud Services along with their own offerings and services to the customer. AEP is the program that authorizes partners to purchase and re-sell academic priced products to Qualified Educational Users -these authorizations must be renewed annually. MPN CSP Resource Portal: https://partner.microsoft.com/en-US/Solutions/cloud-reseller-overview Microsoft Education Partner Network Portal: www.mepn.com

Cloud Solution Provider Selecting the CSP model Direct CSP Model Indirect CSP Model The Direct model is for partners that already have support and billing capabilities, or are willing to invest in building out their infrastructure. Indirect CSP model is for partners that want to invest gradually in developing support and billing capabilities. MSFT is partnering with key Indirect CSP Providers through the world which can assist to transact as an indirect reseller by proving help on support and billing. Cloud Solution Provider Microsoft Customer Office 365, Microsoft Intune, Enterprise Mobility Suite 20% discount from EDU Pricing + promo incentives Azure 15% discount (from Commercial Pricing) + promo incentives CRMOL 25% discount from EDU Pricing+ promo incentives Indirect CSP Provider Discount + promo incentives Indirect Reseller Microsoft Customer Discount passed down from Indirect CSP Provider + promo incentives

Contractual Structure Microsoft CSP Partner Cloud Reseller Agreement Customer Microsoft Cloud Agreement Payment Relationship Microsoft Cloud Reseller Agreement Payment Relationship Partner-Customer Agreement Microsoft Customer Agreement, Online Service Terms, SLA

Onboarding 1. Cloud Solution Provider (Select between Direct and Indirect) 2. Authorized Education Partner There are two models in CSP (Direct and Indirect) and partners can choose whichever model aligns with their business model the best CSP Direct program requires partners to provide 1) direct customer billing and 2) direct customer support. Direct CSP Partners who do not provide direct billing and customer support can participate as an Indirect reseller. Indirect CSP Reseller All resellers who wish to offer Microsoft academic volume licensing to Qualified Educational Users must be authorized through the AEP program, and must renew their authorization annually. If you meet the requirement (direct billing and support w/ more guidance here ), submit the inquiry form on MPN. Get connected with a local Indirect CSP Provider in your region. Find the Indirect CSP Provider here. Visit Microsoft Education Partner Network Portal (www.mepn.com) Submissions are routed to the central agent for review The local Indirect CSP provider will review and approve the partner (including the AEP authorization status) Partner must be a member of MPN Once approved, partners will receive a link to begin the CSP onboarding process. Once approved, partner signs Microsoft Cloud Reseller Agreement. At least one person in the partner organization must pass the Academic Volume Licensing test. Partner will receive Single OrgID account credentials to access Partner Center. Partner ready to generate quote and submit customer orders to their Indirect CSP Provider Partners must complete the AEP application form and accept the terms and conditions Partner signs the Microsoft Cloud Reseller Agreement and partner is now ready to generate quote and orders

Indirect CSP Provider – additional requirements in EDU Indirect CSP Providers do not need to be Authorized Education Partners themselves in order to transact Education SKUs through Indirect CSP Resellers. However, Indirect CSP Providers are responsible to verify the Indirect Resellers as Authorized Education Partners (AEPs). * Any partner that can transact Education SKUs directly to the end customer needs to be an AEP. On behalf of Indirect CSP Providers that are transacting Education SKUs, Indirect CSP Provider needs to create the customer tenant on the Partner Center and tag the qualified customers as EDU once AEP verifies (more information available on the CSP EDU FAQs)

Let’s get started CSP & Partner Profitability Resources 4/13/2018 4:50 AM Let’s get started Successful cloud partners are far more profitable, but it isn’t easy CSP & Partner Profitability Resources Aka.ms/Cloudsolutionprovider Aka.ms/Cloudprofit Aka.ms/Modernpartner Monthly CSP Partner Calls CSP On-boarded Partner Yammer Community MEPN.com Define your core customer offering Develop an approach to support your customers Your cash flow will change over time so need to plan for it Your marketing and sales approach may need to change dramatically Pick an approach – let us help you to help our customers and grow! © Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.