Sales Readiness Series Ford EBC 7/19/2018 3:32 AM Microsoft 365 Business Sales Readiness Series Hi and welcome to the Microsoft 365 Business Sales Readiness series. In this video I’m going to cover licensing and how to make sure you’ve got the right solution for your customer. Licensing

What plan do I choose for my customer? Business Core needs Enterprise Advanced needs One single, scalable admin experience Office 365 Business Premium Office 365 Enterprise E3/E5 Office apps + Cloud services Office apps + Cloud services Business Office apps + OneDrive Business Essentials Cloud services ProPlus Office apps + OneDrive Enterprise E1 Cloud services 1 Additional add-on services (e.g. Project, Visio, Dynamics 365, Office 365 premium add-ons, EMS, etc.) I’m going to take a couple of minutes to talk you through the core plan line-up, then I will take you through a couple of different ways on how to think about Microsoft 365 Business fit for your customer…. And if you need to fall back to an Office 365 plan to get started with your customer, we will talk about how to set them up for Microsoft 365 in the future. Ultimately this video is about licensing…so grab some coffee, tea, soda or whatever you need to stay away and buckle up cuz here we go. Now let’s start with our core plan layout. On the left we have plans that are targeted to businesses with less complex, core needs and on the right those with more advanced needs. I’ll get into some more specifics in a bit but I wanted to show you how you should think about each of these plans. First let’s start with the Office desktop apps which are available in our Office 365 Business ProPlus plans. So why do we have so many plans? Well that has a lot to do with what our customers want and need. For example, customers may want to deploy Office to PCs using MSI and some prefer click-to-run, they may want to access Office via terminal services or they may have rigid compliance requirements. Any one of the needs may lead you to recommend a different plan. At the most basic level, we provide cloud services only as in the Office 365 Business Essentials and Office 365 E1 subscription plans. The more popular plans are, of course, the ones that provide the most value for customers. These are the plans that combine Office apps with cloud services such as OneDrive for Business, Teams and Skype for Business and they are available with the Office 365 Business Premium and enterprise subscriptions. When considering your customer’s solution, be aware that you that you can mix and match most any subscription and even add-on to them with offerings such as Project, Visio, EMS, Azure Active Directory Premium, and many more. Combine ANY of these plans in a single Office 365 account Business plans have 300 seat cap, per plan Enterprise plans have no seat cap Only top plans for SMB listed

How do I choose the right plan for my SMB customer? Business Core needs Enterprise Advanced needs Microsoft 365 Business Everything in Office 365 Business Premium, plus A simple way to manage and help protect company data across devices Consistent configuration and enforcement of policies on Windows 10 PCs Suitable for customers who can move identity to the cloud Microsoft 365 Enterprise Everything in Office 365 Enterprise, plus Advanced device and data security capabilities Modern voice experience with cloud PBX Flexible on-premises or cloud identity options Office 365 Business Premium Office 365 Enterprise E3/E5 Best-in-class productivity and collaboration tools Tools to help growing businesses Now how you should think about Office 365 vs Microsoft 365? Let’s start with on the bottom left with Business Premium. <click> If your customers are considering hybrid Exchange, deployment of Office via MSI instead of Click-to-Run, or they need Legal Hold or eDiscovery… that’s when you should look to the enterprise plans. <click> But here’s where we want to drive a more holistic solution and shorten the sales cycle by selling a single product. Microsoft 365 Business brings that promise of protecting company data across devices, ensuring you’ve got the same configuration on your PCs to ease deployment pains, and enables you to bring your customer’s entire organization to the cloud. <click> Now if your customers have more advanced needs such as hybrid identity, Cloud Voice or they simply need more than 300 licenses of a subscription plan then Microsoft 365 Enterprise would be the solution I would recommend. Support for hybrid deployment Remote deployment of Office and support for terminal services Additional security controls Additional add-on services (e.g. Project, Visio, Dynamics 365, Office 365 premium add-ons, EMS, etc.) Only top plans for SMB listed Business plans have 300 seat cap, per plan

Office 365 Premium add-ons Add-ons are SKUs that can be added to an existing suite or service Business Essentials or Business Premium Microsoft 365 Business Office 365 Enterprise E3 Microsoft 365 Enterprise E3 Office 365 Enterprise E5 Microsoft 365 Enterprise E5 Price (USD) Security Advanced Threat Protection Add-on Included $2 Office 365 Cloud App Security $3 Advanced Compliance $8 Threat Intelligence Analytics Workplace Analytics N/A $6/$2 MyAnalytics $4 Power BI Pro $10 Voice Audio Conferencing Phone System Calling Plan (Select countries) Add-on Phone System Required $12/$24** You’ll want to choose very, very carefully, but if you mess up… no worries! It’s possible to change plans later on. It’s also possible to add a la carte services to a given plan. One of the common things that many small and mid-size customers purchase are some advanced security capabilities like Advanced Threat Protection in Exchange Online. This and many of the capabilities that come standard with Office 365 E5 but are also available as paid add-ons to Microsoft 365. 1There are no technical blockers for customers to purchase Office 365 Cloud App Security, but usage can only be achieved if an Office 365 workload is deployed. 2Dial-out conferencing capabilities may incur additional per minute Communications Credits charges. Customers can disable these features to avoid additional billing. $24 includes both International and Domestic calling plans. Domestic only calling plans are available for $12. Tax is included in price in the US. Service usage limits exist to manage fraud, abuse, excessive use, and maintain service performance. Further details about these services can be found in our recently published Skype for Business Online Service Use Terms. 35,000 Seat Minimum. $6pupm for E1/E3, $2pupm for E5 *Exchange Online Protection required for on-premises mailboxes.

Office 365 Business Premium Before I go on… Office 365 is the name for the product suites Customer can buy standalone offerings… More value with Business Premium Skype for Business Online $5.50 user/month $5.00 user/month $4.00 user/month $8.25 user/month Skype for Business Online SharePoint Online Exchange Online Office 365 Business $5.50 user/month Office 365 Business Premium SharePoint Online $5.00 user/month $12.50 user/month (USD) $22.75 user/month (USD) When thinking about add-ons to existing plans it’s a good idea to keep in mind that there may be less costly options for your customers with a higher-level plan that includes the add-ons they want. Exchange Online $4.00 user/month $12.25 user/month (USD) Office 365 Business $8.25 user/month

Plan comparison Business Plans Enterprise Plans Office 365 Business Premium Microsoft 365 Business Office 365 Enterprise E3 Microsoft 365 Enterprise E3 Office 365 Enterprise E5 Microsoft 365 Enterprise E5 Estimated retail price per user per month $USD (with annual commitment) $12.50 $20 $32 $35 $57 Maximum number of users 300 unlimited Standard services Install Office on up to 5 PCs/Macs + 5 tablets + 5 smartphones per user Business ProPlus Exchange, OneDrive, SharePoint, Skype, Microsoft Teams  Business Apps – Outlook Customer Manager, Bookings, MileIQ1 Business center1, Listings1, Connections1, Invoicing1 Advanced services Legal compliance & archiving needs for email – archiving, eDiscovery, mailbox hold Information protection – message encryption, rights management, data loss prevention Advanced Threat Protection, Office 365 Cloud App Security, Threat Intelligence, Advanced Compliance Add-on End User and Organizational Analytics (MyAnalytics), PowerBI Pro Audio Conferencing Phone System, Calling Plan3 Windows: Windows 10 Business (Windows Information Protection, Windows Defender, Store, Cortana Mgmt Controls, Auto-Install Office apps, Upgrade rights to Windows 10 Pro for 7/8.1 Pro licenses) Windows: Windows AutoPilot EMS: Microsoft Intune, Azure Active Directory Premium P1 2 Windows: Microsoft Desktop Optimization Package, VDA Windows: Windows Information Protection, Windows Hello, Credential Guard, Device Guard, App Locker EMS: Microsoft Advanced Threat Analytics, Azure Information Protection P1 Windows: Windows Defender Advanced Threat Protection EMS: Azure Active Directory Premium P2, Microsoft Cloud App Security, Azure Information Protection P2 Plan comparison The same logic holds true across all our plans and you can see from this slide what comes with each plan at a high level. [1] Available in US, UK, Canada [2] Only selected features: App protection for Office mobile apps, MDM for Windows 10 PCs, Selective wipe of company data, AAD Auto-Enroll [3] Phone System Required

Customer targeting guidance for small to midsize businesses Office 365 Microsoft 365 Business Microsoft 365 Enterprise Desired environment Mixed OS (Windows, Apple, etc.) Some on-premises IT Hybrid identity Compelling events Office 2007 EOS Multiple locations Need to support mobile. Desired environment Windows 10 Pro (Creator’s Update) Cloud identity for users and devices Protection of company data across personal & company owned devices Compelling events Small Business Server replacement Windows 7 EOS Hardware refresh Multiple locations Desired environment Mixed OS (Windows, Apple, etc.) Hybrid identity Advanced security controls Modern voice experience Compelling events Windows Server replacement Windows 7 EOS Hardware refresh Multiple locations Ok getting back to Microsoft 365 Business, let’s talk through some of the customer needs that will help with targeting. The best way to think about what plan to offer is by determining the customer’s desired state. If your customer is ready to abandon on-premises solutions and they want always up-to-date Windows and Office and need to have control over their company data on devices then Microsoft 365 Business is right for them. If they aren’t quite ready to fully move to the cloud, then you can look at Office 365 Business Premium because they support some of the capabilities that might be considered a blocker to moving to Microsoft 365 Business such as the need for hybrid identity, on premises file shares, and domain controllers. If the customer has more advanced needs like cloud voice or advanced security and data protection, then Microsoft 365 Enterprise might be the right solution to help them. You can also use some compelling customer events to help facilitate a new plan conversation. The Office 2007 end of support is a great opportunity to re-engage your customer and get them onto Office 365. If customers have legacy on premises components like Small Business Server or Windows Servers then start the conversation holistic solutions like Microsoft 365 to serve their needs.

Microsoft 365 | Guidance on when to sell what to who in SMB Microsoft Envision 2016 7/19/2018 3:32 AM Microsoft 365 | Guidance on when to sell what to who in SMB Desired environment Always up-to-date Office & Windows Mixed OS Hybrid identity Advanced security controls Modern voice experience Windows 10 Pro (CU) Cloud identity for users and devices Protection of company data across personal & company owned devices Always up-to-date Office Some on-premises IT Considerations This is not an exact science, every customer is different Selection of plan is determined by IT complexity and organization size Customer’s desired environment drive the decision to purchase Choice, value, flexibility give customers options Customers can mix and match plans Windows 10 Enterprise Microsoft 365 Enterprise Office 365 Business Premium or Microsoft 365 Business + Add-ons Office 365 E3 Microsoft 365 Business IT complexity There is another pivot on this with a lot of the same data points and I will just orient you to some of the considerations. First, definitely take this as guidance. There is no hard and fast rule on the right plan for ALL SMB customers. We have to listen to their needs and pick a plan based on the size and complexity of the organization’s IT Infrastructure. You should really rely on the customer’s desired environment to pick the right plan. Since we are talking to a Business Decision Maker and not an IT pro over 80% of the time we should have a broader conversation about their business needs and the customer will let us take care of the IT decisions on their behalf. Office 365 Business Premium Windows 10 Pro Size of organization © 2016 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Is Microsoft 365 Business right for my organization? 1-300 300+ How many employees? Do you need any of the following features from Office 365? eDiscovery, Legal Hold, Office apps delivered via Terminal Services (Remote Desktop Services [RDS]), Phone System, or Calling Plan. YES NO Do you require an on-premises Active Directory for one of the following technologies? Group Policy Objects, on-premises file shares, or Azure AD Connect (DirSync). Note: If you can discontinue use of Active Directory for all of these capabilities for your users, select No. YES NO Now to help you think about Microsoft 365 for your customers, we’ve created a simple decision tree. The first consideration is how many users do you want on Microsoft 365 Business? All SMB plans are capped at 300 seats. Customers that need more can choose another SMB SKU or consider Microsoft 365 Enterprise. Next, ask whether the customer needs eDiscovery, legal hold, remote desktop, terminal services or advanced voice capabilities. If they respond in the affirmative it is likely that either an Office 365 or Microsoft 365 Enterprise solution is best. Third, and this is important, if the customer uses Group Policy to manage their desktop experience or syncs identities from on-premise to the cloud via ADConnect or what was called DirSync, then they too should consider moving to our enterprise offerings. YES Do you require full mobile device management (MDM) for iOS/Android devices? Note: Microsoft 365 Business only provides app protection for Office mobile apps on iOS and Android. Customers who require full MDM for mobile devices should move to Microsoft 365 Enterprise. NO Microsoft 365 Business Microsoft 365 Enterprise

Why choose Windows 10 Intelligent security, built in Enables creativity and teamwork Integrated for simplicity Now before we wrap-up, I want to cover Windows 10 Pro. It’s a requirement for Microsoft 365 Business and a key objection we will handle in the next video so it’s important we cover off the licensing here. Businesses need Windows 10… and it’s time to say goodbye to Windows 7 Windows 10 Pro has the security and management functionality…. BUT it has to be turned on AND managed! Enterprise customers invest in in-house IT or work with a partner to get it implemented and managed and it comes from EMS. For small businesses though, Microsoft 365 Business is right for most of their needs You can keep business devices and identities secure with BitLocker and Windows Hello*. Ensure business files don’t leak with Windows Information Protection**. And be confident that file systems and apps are protected via the Windows Defender. Every business needs a strong foundation to build upon and Windows 10 Pro provides that base, with options to step up to enterprise-grade functionality for businesses with enterprise-grade needs. With your customers managed via Azure Active Directory and Microsoft 365 Business, Windows 10 Pro ensures that our customers have the functionality necessary to keep devices safe, secure and always up to date.

Windows editions for every business + Windows 10 Pro The foundation for all business devices Windows 10 Enterprise E5 For businesses that also require real-time threat monitoring and response + Windows 10 Enterprise E3 For businesses with enterprise grade security needs and complex IT + Windows 10 Business (as part of Microsoft 365 Business) For businesses with typical device management and security needs If you do want to look at the full range of Windows offerings, I’ve got it here. We haven’t included Windows 10 Home because, let’s face it—that’s great for you and your family for personal use, but it doesn’t have the security, productivity and management capabilities of Windows 10 Pro...and it is not supported with Microsoft 365 Business. I’ve already talked about why you should consider Windows 10 Pro—it’s the bedrock and must-have for your business. Windows 10 Pro can come pre-installed by an OEM on commercial devices and is also available, if you already have a Windows Pro device (Windows 7 or 8.1), through Volume Licensing. And Windows 10 Enterprise takes the security and management capabilities even further for businesses that have elevated security needs and more IT complexity. Again, you should consider the needs of your customer and their desired environment when choosing the operating system to support their business. Windows Home For consumer and education devices only Windows Home is the edition of Windows built for consumers and preinstalled on consumer devices. Windows Home does not include essential business capabilities. However, Windows Home devices can be upgraded to Windows 10 Pro for $99 per device via the Microsoft Store

Next steps     Review the scenarios Download the deck Perfect your pitch  Practice handling objections

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