CSP – the Road to Success 11/8/2018 2:43 PM CSP – the Road to Success October 31st webinar Kateryna Tetyanenko, Partner Marketing Advisor Team, Western Europe © Microsoft Corporation. All rights reserved.

CSP – The Road to Success: Webinar Overview 11/8/2018 2:43 PM CSP – The Road to Success: Webinar Overview Week Theme Date Duration Title Description 1 All 10/17/2017 60' CSP Road to Success - Program  Intro, Microsoft Strategy and how CSP fits in there. Welcome session to CSP - The Road to Success…. Continues; Overview about CSP and why CSP is so important to Microsoft and its Partner Ecosystem 2 MWP 10/24/2017 Introducing Microsoft 365 Microsoft 365 brings together Office 365, Windows 10 and Enterprise Mobility + Security, delivering a complete, intelligent and secure solution to empower employees. 3 Apps&Infra and Data/AI 10/31/2017 Azure in CSP – Offers, incentives and service update Learn about the latest updates for Azure in CSP. 4 MWP, Apps & Infra 11/7/2017 GDPR and Azure Confidential computing How to leverage the GDPR Opportunity with CSP Resellers; Intro into Azure Security w/ a deep dive into Azure Confidential Computing 5 11/14/2017 Surface Devices and Windows 10 Fall Creators update for Commercial Customers Post Surface Announcement Updates; also speak about the Windows 10 Commercial Oppty; why roll-out W10 in Commercial customers and how resellers can benefit from reselling Windows thru CSP 6 11/21/2017 Training and Marketing with and for Resellers: Microsoft Offers Training overview - Laura GoTo Market Overview - Christian Explain how Resellers can e.g. drive CIE and Hands-On Labs sessions together w/ Microsoft for their customers Offers for SMB customers (e.g. ECIF???) - Maja? 7 Business Apps 11/28/2017 Dynamics 365 Ideally don't only talk about Opportunity - but also how resellers today are making business w/ it. How to get started. 8 Apps & Infra 12/5/2017 Azure OSS and the Developer Opportunity What are the oppties to get going w/ OSS Partners on Azure. Why move to these workloads to Azure. 9 12/12/2017 Office 365 - Building Modern Workplace solutions w/ Teams, Project, Visio Updates on Project, Visio, Teams, Sway,… Explain how resellers could leverage these often "forgotten" offers to build great customers solutions. Really give examples how partners are making money w/ that! 10 Data & AI 12/19/2017 Data and AI - examples of Partner solutions, and how to find the right partners for these solutions Provide targetting guidance which solution partners could be great CSP Resellers - and what support offers are available for them, to build solutions on top of our Data & AI platform; Closing, potentially outlook to Q3 SPIFF program Microsoft ran weekly 1h webinars Invitations will be sent to all participants of previous webinars One Landing Page where all webinars to be posted Feel free to share internally! Previous calls: http://aka.ms/roadtosuccess p Support: roadtosuccess@microsoft.com © Microsoft Corporation. All rights reserved.

Azure CSP Investments to help you win customers and to earn more. Latest update: October 13, 2017 October, 2017 Anders Wendt Product Marketing Lead - Azure Partner Solutions Cloud Solution Provider

CSP enables Partners to… Create solutions and directly bill customers 1 Directly provision and manage subscriptions First point of contact for customer support CSP is more than a licensing model -- It is a platform for partners to create their own managed services practice and offerings, including billing and support, to offer a consistent customer experience. It is a business model that provides Azure services in pay-as-you-go model, so partners can build and package their solutions as they wish. It is a partner program that offers competitiveness in the marketplace and rich incentives. Build an ongoing customer relationship 2 Learn more about Azure CSP at aka.ms/AzureCSP

Azure CSP Services & Roadmap All Azure services are available in CSP, except: Cloud Services1 Azure Active Directory Domain Services Azure Active Directory B2C Mobile Engagement IoT Time Series Insights SAP large instances PAYG solutions in Azure Marketplace Power BI Embedded Now Available: Azure Partner Shared Services Allows resellers and managed service providers to create a unique tenant within Partner Center where they can purchase and deploy Azure subscriptions for their own use2 This will enable partners in the CSP program to Track usage under a single invoice Build development and test environments Deploy internal workloads Build shared or multi-tenant applications 1 3 2 4 See the full list of Azure services available in CSP Learn more about Azure Partner Shared Services 1Azure Resource Manager-based VMs, App Service, and virtual machine scale sets are recommended alternatives to Cloud Services. 2Azure Partner Shared Services does not qualify for any discounts, reseller margins or partner incentives.

Azure CSP Incentives Overview FY18 only Multi-year Coming soon 1 MARGIN 15% AZURE CONSUMPTION-BASED INCENTIVES CSP Global Incentives 8% rebate for Direct Partners & Indirect Resellers 10% rebate + co-op for Indirect Providers Cloud Disti Solution Accelerator (CDSA) 10% Indirect Providers only Local Accelerator (H1) 5% rebate for Direct Partners & Indirect Resellers 5% rebate + co-op for Indirect Providers Azure VM Incentive 10% Azure Customer Adds $1,000 rebate per new customer add driving $3,000 of Azure consumption in a Microsoft fiscal quarter. CUSTOMER DISCOUNT Azure Hybrid Benefit Azure Reserved VM Instances OFFERS Customer Migration Campaign 30% Hoster Datacenter Migration Program Up to 39% Azure CSP POC Credits CSP RI Pilot Multi-year price predictability RESOURCES & TOOLS Assessment Tool Cloudamize Azure Cost Management by Cloudyn CSP Helpdesk 2 3 4 5 6

Azure CSP Incentives Calendar FY18 only Multi-year FY18 FY19 FY20 Margin Global Incentives CDSA Local Accelerator Azure VM Incentive Azure Hybrid Benefit Azure Reserved VM Instances* CSP RI Pilot Customer Migration Campaign Hoster Datacenter Migration Program Azure CSP POC Credits Multi-year price predictability Assessment Tool Cloudamize Azure Cost Management by Cloudyn CSP Helpdesk 1 2 3 *Azure Reserved VM Instance in CSP is coming on H1 CY2018.

FY18 Incentives

CSP Margin & Azure Consumption-Based Incentives DETAILS QUALIFICATIONS Margin Margin: 15% for all CSP partners Applied by default in the CSP pricelist Partners must have an active Microsoft Partner Network (MPN) membership, meet the min. Cloud Competency, be onboarded onto PIEx and be eligible for the FY18 CSP Indirect Provider or CSP Direct Partner global incentive. CSP Global Incentives Direct Partners & Indirect Resellers: 8% rebate Indirect Providers: 10% paid as 50% rebate and 50% co-op Partners must have an active Microsoft Partner Network (MPN) membership, meet the min. Cloud Competency, be onboarded onto PIEx and be eligible for the FY18 CSP Indirect Provider, Indirect Reseller or CSP Direct Partner global incentive. Cloud Disti Solution Accelerator (CDSA) Local Accelerator Incentives paid over net new Azure Consumption: CDSA: 10% Local Accelerator: 5%, (varies by region) Partners must have an active Microsoft Partner Network (MPN) membership, meet the min. Cloud Competency, be onboarded onto PIEx and be eligible for the FY18 CSP global incentive and meet minimum requirements and eligibility criteria for each program. Learn more about Partner Incentives EXAMPLE 1 Margin & CSP Global Incentives explained EXAMPLE 2 Incentive Accelerators explained CSP Pricelist Azure.com Pricelist Price to Partner Azure VM $100/mo.. $78.20/mo. $85/mo. 15% Margin 8% CSP Global Incentive 10% CDSA Accelerator Azure CSP Total Consumption $3,500 Incentive 10% * $2,500 $250 Azure CSP Total Consumption $1,000 Quarter 1 Quarter 2 Partner Incentive

Azure VM Incentive & CSP RI Pilot DETAILS QUALIFICATIONS Azure VM Incentive 10% incentive for all eligible Azure VMs (except A and G-series) Temporary incentive until Azure Reserved VM Instances are available (H1 CY2018) Partners must have an active Microsoft Partner Network (MPN) membership, meet the min. Cloud Competency, be onboarded onto PIEx and be eligible for the FY18 CSP Direct Partner or CSP Indirect Reseller global incentive. Learn more here (MSFT-internal) CSP RI Pilot Temporary customer discount to provide Azure Reserved VM Instances prices until they are available in CSP (H1 CY2018) Applies to all eligible Azure VMs (except A and G-series). Discount is given as credit line on partner’s monthly invoice PAYG with no pre-commit during pilot, will transition to the default RI commitments after general availability in CSP Minimum $30,000/month of Compute/VM consumption and long term contract (3 years) between Partner and Customer Partner (on behalf of customer) must transition to 3-year commitment once Azure Reserved VM Instances are available in CSP Learn more here (MSFT-internal) and work with your Microsoft PDM to submit your opportunity EXAMPLE 1 Azure VM Incentive after Margin & Global Incentives EXAMPLE 2 Combining Azure VM Incentive & CSP RI Pilot Azure VM $100/mo. $69.70/mo. $85/mo. 15% Margin 10% Azure VM Incentive CSP Pricelist Azure.com Pricelist Price to Partner 8% CSP Global Incentive Azure VM $85/mo. $44.20/mo. 30% CSP RI Pilot Will be replaced by Azure Reserved VM Instances in CSP CSP Pricelist Price to Partner 10% Azure VM Incentive 8% CSP Global Incentive Azure Reserved VM Instances will be available soon in CSP, providing a great opportunity to build stronger and long-term commitment with customers while providing very attractive prices and incomparable flexibility. In the meantime, Microsoft is providing incentives for CSP partners to leverage the offer and drive momentum: 10% incentive for partners on top of VM prices of current CSP pricelist, which combined with other incentives can provide up to 30% discount over the retail pricelist (Azure VM incentive) OR Up to 30% discount on VM prices of current CSP pricelist for a minimum opportunity of $30K/mo. and/or 3-year commitment, approximately 40% discount over the retail pricelist (CSP RI Pilot) Once Azure Reserved VM Instances are available in CSP, the incentives will no longer apply as the discount will be built-in the CSP pricelist.

Multi-year Offers

Windows VM discounts will be available in pricelist Customer Discount INCENTIVE DETAILS QUALIFICATIONS Azure Hybrid Benefit (AHB) Up to 40% cost savings over Azure.com prices when customers use their on-premises Windows Server licenses with Software Assurance on Azure Enables the hybrid cloud model maximizing value over current customer investments Azure Hybrid Benefit for SQL Server coming soon Windows Server licenses with Software Assurance Each Windows Server license allows up to 2 VMs or 16 cores in Azure Windows VMs will be charged at equivalent Linux VMs rates according to the CSP pricelist Learn more here Azure Reserved VM Instances Coming soon: available in CSP in H1 CY2018, prices will be accessible in the CSP pricelist Up to 72% cost savings when committing to VMs in one-year or three-year terms Up to 82% cost savings when combined with Azure Hybrid Benefit Minimum one-year or three-year upfront commitment, specifying VM type, region and term Flexibility to exchange RI region or series, and to cancel at any time for an adjusted refund EXAMPLE 1 Azure Hybrid Benefit in CSP EXAMPLE 2 Combining Azure Reserved VM Instance & AHB Windows VM $100/mo. Azure Hybrid Benefit Azure Reserved VM Instance Windows VM discounts will be available in pricelist $50/mo. Windows VM at Linux Rate $60/mo. 15% Margin 8% CSP Global Incentive Azure Hybrid Benefit VM $46.20/mo. Windows VM at Linux Rate $30/mo. Azure.com Pricelist CSP Pricelist Price to Partner Future CSP Pricelist Price to Customer

Azure CSP Incentives Overview FY18 only Multi-year Coming soon 1 MARGIN 15% AZURE CONSUMPTION-BASED INCENTIVES CSP Global Incentives 8% rebate for Direct Partners & Indirect Resellers 10% rebate + co-op for Indirect Providers Cloud Disti Solution Accelerator (CDSA) 10% Indirect Providers only Local Accelerator (H1) 5% rebate for Direct Partners & Indirect Resellers 5% rebate + co-op for Indirect Providers Azure VM Incentive 10% Azure Customer Adds $1,000 rebate per new customer add driving $3,000 of Azure consumption in a Microsoft fiscal quarter. CUSTOMER DISCOUNT Azure Hybrid Benefit Azure Reserved VM Instances OFFERS Customer Migration Campaign 30% Hoster Datacenter Migration Program Up to 39% Azure CSP POC Credits CSP RI Pilot Multi-year price predictability RESOURCES & TOOLS Assessment Tool Cloudamize Azure Cost Management by Cloudyn CSP Helpdesk 2 3 4 5 6

Customer Migration Campaign INCENTIVE DETAILS QUALIFICATIONS Customer Migration Campaign Acceleration Incentive Up to $1M USD or 30% of deal size in incentives, based on incremental Azure Consumption New Azure consumption > $250,000/year Partner must opt-in by March 30, 2018 and hit 30% migration consumption by June 30, 2018 to be eligible for incentive payments Partner has total 12 months to execute after MSFT’s deal approval (payout will be available in FY19) Learn more here (MSFT-internal) and work with your Microsoft PDM to nominate customer migration opportunities 1 3 2 EXAMPLE Partner Incentives & Milestones explained 1/3 Incentive Eligibility $200K 30% of total deal up to $1M Azure CSP consumption $2M 1/3 Incentive Eligibility $200K Azure Deal Size $2M/yr. Partner Incentive Eligibility $600K 1/3 Incentive Eligibility $200K Azure CSP consumption $1M Migration starts Azure CSP consumption $600K Current Azure CSP consumption $0 Baseline New Azure CSP Revenue Committed Total Incentive Eligibility Milestone 1 Reach 30% of deal size by Jun 30, 2018 Milestone 2 Reach 50% of deal size within 12 months Milestone 3 Reach 100% of deal size within 12 months

Hoster Datacenter Migration Program INCENTIVE DETAILS QUALIFICATIONS Hoster DC Migration Program Acceleration Incentive Designed for Service Providers that want to switch from traditional hosted services to managed cloud services, wish to unify multiple environments that are managed separately using Azure as the single platform or reporting SPLA >$40K/month of Windows Server Premium Tier: up to 39% of deal size in incentives, with additional accelerators for early milestone completion and Linux VMs Light Tier: up to 10% of deal size in incentives, no additional accelerators Incentives based on incremental Azure Consumption Premium Tier: New Azure consumption > $500,000/year Light Tier: New Azure consumption $250,000-$500,000/year Partner opt-in by October 31, 2017 and agreement must be signed by May 31, 2018 Partner has total 13 months to execute after MSFT’s agreement signature (payout will be available in FY19) Learn more here (MSFT-internal) and work with your Microsoft PDM to submit your nomination 1 2 3 EXAMPLE Partner Incentives & Milestones explained if 50% of VMs are Linux +$30K if reached before Jun 30, 2018 +$42K +5% +7% New Azure CSP consumption $600K/yr. Total Azure CSP consumption $730K/yr. +7% if reached before Mar 31, 2018 +$42K 7% Incentive $42K Current Azure CSP consumption $130K/yr. 7% Migration starts Incentive $42K 6% Incentive $36K Baseline New Azure CSP Revenue Committed Total Azure CSP Revenue Committed Milestone 1 Agreement signature Milestone 2 Reach 50% of Total Azure CSP Revenue Committed Milestone 3 Reach 100% of Total Azure CSP Revenue Committed

Hoster DC Migration for SPLAR’s - Program incentives and benefits Program Criteria Benefit Partner Commitment $500K+ new Azure CSP revenue, $100K+ for every selected reseller. Partner Incentives 33% Milestone 1: 7% CSP Bill Credit for reaching 50% Milestone 2: 7% CSP Bill Credit for reaching 100% Linux accelerator: 5% of top of Milestone 2 if 50%+ of VMs run Linux Early bird accelerator: 7% if reseller reached 50% before the end of March 7% if reseller reached 100% before the end of June. Agreement Duration 13 months Viability Study Support SI + MCS Migration Planning Support SI + Azure CAT Team 3rd party tools for migrations Available Training Technical Support Dedicated line using SI

Microsoft act as partner during POC and pays for Azure Consumption Azure CSP POC Credits INCENTIVE DETAILS QUALIFICATIONS Azure CSP POC Credits Up to $10,000 in Azure credits for 2 months, to execute customer POCs Neither customer nor partner see a POC invoice: Microsoft will pay for customer’s Azure consumption during the POC period No need for redeployment: After end of POC period, Azure services charges will automatically transitioned to customer and partner will start receiving invoices New Azure consumption > $100,000/year per customer Partner can request unlimited POC credits for other customers as long as they meet minimum Azure criteria of $100,000/year Learn more here (MSFT-internal) and work with your Microsoft PDM to request Azure CSP POC Credits 1 2 3 EXAMPLE Azure CSP Credits & Billing for POC Partner starts to receive invoice after POC if subscription has Azure Consumption No invoice after POC if subscription is turned off and has no Azure Consumption Microsoft act as partner during POC and pays for Azure Consumption Azure CSP Consumption $8K Azure CSP Consumption $0 Azure CSP Consumption $6K POC starts Azure CSP Consumption $2K Month 1 Month 2 Month 3 Scenario A Month 3 Scenario B

Resources & Tools INCENTIVES DETAILS QUALIFICATIONS Assessment Tool Cloudamize Cloudamize accelerates discovery and assessment, usually time consuming and critical tasks in any cloud migration project, by evaluating existing infrastructure, analyzing which workloads can move seamlessly to the cloud, and estimating the overall cost of running the applications and workloads in the cloud Cloudamize supports managed customers migration to Azure and it is a powerful tool when combined with Azure Site Recovery Free Cloudamize licenses for migration opportunities with 50+ Azure VMs Cloudamize provides 50% discount off pricelist (approx. $30 per VM) for Microsoft partners with deals that don’t qualify for the free offer Watch the Cloudamize video demo More details to come soon. In the meantime, lean more about Cloudamize here (MSFT- internal) Azure Cost Management by Cloudyn Azure Cost Management by Cloudyn offers enterprise- grade management capabilities with detailed visibility into their Azure consumption, cost and performance in order to stay within budget and ensure business success Supports multi-cloud cost tracking and optimization including Microsoft Azure, Amazon Web Services, and Google Cloud Platform Free Azure Cost Management by Cloudyn for CSP Partners during FY18 Watch the Azure Cost Management by Cloudyn video demo Learn how to activate Azure Cost Management by Cloudyn in Partner Center CSP Helpdesk Free technical support provided by Sysgain covering CSP APIs, billing, partner center, automation etc. Migration best practices and architecture references to accelerate cloud migration projects Partner must be engaged in either Customer Migration Campaign or Hoster Datacenter Migration Program

Combining Azure CSP offers

Partner Engagement Flow & Incentives Example Scenario Customer is looking to migrate ~50 VMs from on-premises datacenter to Azure Customer has mostly predictable demand for IaaS/VMs Customer has Windows Server licenses with Software Assurance Customer location: United States Deal size/potential incremental CSP consumption is $480K/year ($360K VMs + $120K other Azure services) Partner is a System Integrator enrolled in FY18 CSP Direct Partner program Partner current Azure CSP consumption baseline is $1M/year Partner Engagement Flow & Incentives Partner submits deal to Customer Migration Campaign Partner makes migration assessment with Cloudamize Partner proposes a POC using Azure CSP POC Credits After POC, partner presents the migration plan and costs to customer Customer agrees in pre-commit VM capacity leveraging CSP RI Pilot discounts and Azure Hybrid Benefit Migration starts, incremental consumption is generated and partner hits all Customer Migration Campaign milestones Migration journey Free Cloudamize license $10K Azure CSP POC Credits Azure Hybrid Benefit 10% Azure VM Incentive 10% US Local Accelerator 8% CSP Global Incentive Partner Benefits CSP RI Pilot 30% Customer Migration Campaign CSP Helpdesk 15% Margin In this example, partner can earn up to 40% of Azure CSP Consumption in incentives + offer price predictability to the customer.

Call to Action 15 Familiarize yourself with offers, set priorities and share with others Opt-in on migration programs and earn more rebates Contact you PDM. 1 2 3 Segment and target accounts with offers. “Discounts” for breadth. PoCs and/or migrations for depth

How to opt-in to the Program? Work with your Microsoft PDM to identify enterprise customer migration from on-premises or non-Microsoft public clouds to Azure Microsoft PDM 1 Complete the Terms and Conditions including Azure deal size details, customer ID and Azure subscription ID to custdcmg@microsoft.com Partner 2 Approve/Decline the request Track partner migration progress via Azure consumption in customer’s subscriptions 3 4 Microsoft CORP

How to opt-in to the Program? Work with your Microsoft PDM to identify enterprise customer migration from on-premises or non-Microsoft public clouds to Azure Microsoft PDM 1 Complete the Terms and Conditions including Azure deal size details, customer ID and Azure subscription ID to custdcmg@microsoft.com Partner 2 Approve/Decline the request Track partner migration progress via Azure consumption in customer’s subscriptions 3 4 Microsoft CORP Azure deal size details

Questions? Please contact us CSPIncentivesQ@microsoft.com