Exchange Online: Pricing & Licensing Overview

Agenda Overview of Office 365 suite offers Exchange Online standalone offers What’s new in Wave 14? Options for on-premises customers Licensing summary Go Do’s for the Field

Announcing Microsoft Office 365 BRINGING TOGETHER CLOUD VERSIONS OF OUR MOST TRUSTED COMMUNICATIONS AND COLLABORATION PRODUCTS WITH THE LATEST VERSION OF OUR DESKTOP SUITE FOR BUSINESSES OF ALL SIZES.  Microsoft® Office 365 delivers the power of cloud productivity to businesses of all sizes, helping to save time, money and free up valued resources. Office 365 combines the familiar Office desktop suite with cloud-based versions of Microsoft’s next-generation communications and collaboration services: Exchange Online, SharePoint Online and Lync Online. Office 365 is simple to use and easy to administer – all backed by the robust security and guaranteed reliability you expect from a world-class service provider. Microsoft Office 365 Includes: Microsoft® Office Professional Plus The world’s leading productivity tool now seamlessly connected and delivered with cloud services – for the best productivity experience across the PC, Phone and Browser. Exchange Online Cloud-based email, calendar and contacts with always-up-to-date protection from viruses and spam. SharePoint Online Cloud-based service for creating sites to connect colleagues, partners and customers. Lync Online Cloud-based instant messaging, presence, and online meeting experiences with PC-audio, video conferencing and screen sharing. Key Microsoft Office 365 Benefits: Anywhere-access to email, documents, contacts, and calendars on nearly any device Work seamlessly with Microsoft Office and the other programs your users already count on everyday Business-class features including IT-level phone support,  guaranteed 99.9% uptime, geo-redundancy, and disaster recovery Pay-as-you-go pricing options which give you predictability and flexibility for all or part of your organization Latest version of Business Productivity Online Suite (BPOS), which has millions of business users today Microsoft® Office 365 for small businesses offers an easy-to-use set of web-enabled tools for small businesses, independent consultants and professionals looking for business-class productivity services. Working with the tools people know and use today, Office 365 provides anywhere access to email, important documents, contacts, and calendars on nearly any device. It’s free for the first 30 days and then just $6 per user per month. Microsoft® Office 365 for enterprises brings together cloud versions of our trusted communications and collaboration software with our familiar Office Professional Plus desktop suite. It is designed to help meet your IT needs for robust security, 24/7 reliability, and user productivity. We have a variety of plans to meet the needs of businesses of all sizes and varying IT needs. Priced from $2 - $28 per month per user, each plan has the same 99.9% uptime guarantee and includes the security and support you expect from Microsoft. Office 365 offers great flexibility by allowing businesses to provide users access to only the services they need and pay-as-you-go pricing options. Microsoft® Office 365 for education provides your institution with the same great communication and collaboration experiences used in enterprises around the world while saving time and money. Microsoft Office 365 for education delivers all of this and more while training students on familiar software which employers depend upon.

Productivity Offers for All Customer Segments Live@edu + Office Professional Academic Academic Institutions For students, educators & staff Includes Windows Live tools for collaboration & communication Transitions to Office 365 for Education (Timing TBD) Office 365 for Small Businesses + Office Subscription Small Business Organizational Use No IT or IT Partner Low monthly subscription price Focus on simplicity Community help Windows Live + Office Home & Business Individual and Consumer Personal Use Ad funded/low cost Office 365 for Enterprises For Any Sized Organization: SMB, MM, Corp Acct, & EPG Internal IT or IT partner required Rich set of workloads and features Range of offers by user type 24x7 phone support

Office 365 for Enterprises User Segments: Right features for the right users Kiosk Worker Information Worker Low cost offering to users that do not have messaging and collaboration capabilities today Rich feature offering that meets a users full messaging and collaboration needs Office 365 E4 $27/mo Includes: Exchange Plan 2 SharePoint Plan 2 Lync Plan 2 Office ProPlus Office Web Apps Lync Plus Office 365 E3 $24/mo Includes: Exchange Plan 2 SharePoint Plan 2 Lync Plan 2 Office ProPlus Office Web Apps Office 365 E2 $16/mo Includes: Exchange Plan 1 SharePoint Plan 1 Lync Plan 2 Office Web Apps Office 365 K2 $10/mo Includes: Exchange Kiosk SharePoint Kiosk Office Web Apps Office 365 E1 $10/mo Includes: Exchange Plan 1 SharePoint Plan 1 Lync Plan 2 Office 365 K1 $4/mo Includes: Exchange Kiosk SharePoint Kiosk

Exchange Online for Enterprises Exchange Kiosk ($2/mo) Exchange Plan 1 ($5/mo) Exchange Plan 2 ($10/mo) Basic messaging and calendaring plan with Web email and POP access. Messaging, calendaring, and email archiving plan accessible from Outlook on PCs, the Web and mobile devices. Best messaging and calendaring plan accessible from PCs, the Web and mobile devices with advanced archiving, compliance and integrated voicemail capabilities Storage Email, calendar, tasks Forefront AV/AS E-Discovery & retention policies Premium OWA Mobile Experience Desktop experience On-premises rights Archive capabilities Hosted voicemail Standalone price 500 MB  Limited (POP-based) - $2/month 25 GB  Full (Activesync) Full (MAPI) Personal Archive - $5/month Unlimited  Full (Activesync) Full (MAPI) Advanced Archive capabilities $10/month

Office 365 for Small Businesses and Professionals Includes… 1-25 users (max of 50 allowed) No IT needed Easy to try out Simple and easy to use Works with Microsoft Office Financially-backed 99.9% uptime guarantee Self-Help and Community Support KEY CAPABILITIES Exchange Email, Calendar, Contacts & Personal Archive 25 GB Mailbox ActiveSync Mobile Support SharePoint Team Sites 1 Office Web Apps Simple Public Website 2 Online Access databases Lync Rich Client Online meetings 3 Desktop Sharing Multiparty IM & PC-to-PC Calling Self-Help and Community Support Office 365 (Plan P1) $6/user/month 1 One site collection, authenticated external user access enabled for up to 50 unique users/month. 2 Includes ready-to-use templates, option to add custom domain. 3 Online meetings limited to 50 participants.

What’s New in Exchange Online? Exchange Plan 1 $5/mo Exchange Online Standard Exchange Plan 2 $10/mo Exchange 2010 update Upgrade Option* Advanced archiving (Legal Hold) Hosted voicemail Unlimited storage Updates across all Exchange Online offers Personal Archive capability IM integration in OWA Updates across all Exchange Online offers New tools to manage information overload including a new conversation view, ignore conversation and MailTips Updated Outlook Web App offering a rich user experience Integrated archiving and compliance features including multi-mailbox search and retention policies Transport protection rules to enable great information protection and control Role-based access control to delegate administrative access to specialty users (like help desk, HR, compliance officers, etc)

What’s New in Exchange Online? Exchange Kiosk $2/mo Exchange Online Deskless Exchange 2010 update OWA premium instead of OWA Lite New POP-based access to desktop and mobile devices Updates across all Exchange Online offers Updates across all Exchange Online offers New tools to manage information overload including a new conversation view, ignore conversation and MailTips Updated Outlook Web App offering a rich user experience Integrated archiving and compliance features including multi-mailbox search and retention policies Transport protection rules to enable great information protection and control Role-based access control to delegate administrative access to specialty users (like help desk, HR, compliance officers, etc)

Existing Exchange On-premises Customers Plan 1 includes more functionality than Standard CAL On-premises CAL-based licensing Exchange Online Plans Forefront AV/AS included at no extra cost Low-priced offers to empower Kiosk workers Options for moving online EA customers Move to Updated EA* Single 3-year agreement across on-premises and online Transition to the cloud at your pace - no service cost in the year a user transitions (SA payments continue) Flexibility to move users back and forth between on- premises and online, and between offers User counts can be adjusted up or down Non-EA customers Sign up for online services through MOSP/MOSA Contract can be month-to-month or 1 year Full price USLs only (no SA credits available) Move users online at your own pace In on-premises licensing, features like custom retention policies, cross mailbox search, journaling, advanced Activesync Policies, information leakage protection were only available through Enterprise CAL (not in Standard CAL). Unlike this, all online plans include these features. These are deemed to be org-features applicable across all users. * Customers can get a subset of offers through existing EA, but will miss the increased flexibility provided by Updated EA

Exchange Online Licensing Summary OVERVIEW Per-user licensing (non perpetual subscription; no buy out rights) One primary mailbox and one archive mailbox per user (except Exchange Kiosk users who get one primary mailbox only) No cost for resource mailboxes (like conference rooms ) and shared mailboxes Licensing programs: Available through EA or MOSP/MOSA ( not through Open/Select) Step-up USLs for SA users will be discontinued PRICING POLICIES Term-based pricing 1 Year / Annual Month to Month 5% Premium 20% Premium 3 Years Exchange Plan 1 $5.25/mo $6/mo $5/mo New pricing waterfall for Office 365 Price Level Quantity Discount Exchange Plan 1 Equivalent VL 1 <250 0% $5.00 Open 2 250 to 2399 3% $4.85 Level A 3 2400 to 5,999 6% $4.70 Level B 4 6,000 to 14,999 9% $4.55 Level C 5 15,000+ 12% $4.40 Level D Term-based pricing ------------------------- Customers have the flexibility to receive shorter subscription terms Only 3 year terms offered through Enterprise Agreements (co-terminus) Annual option only in MOSA at GA, 3 year and M2M options to be offered in the future (post-GA) MOSA customers will receive “3 year” price until 3 year term is available; reverts to regular term pricing at next renewal Pricing waterfall -------------------- Same user tiers apply as EA Qualified Users/Desktop counts