Microsoft SAM Managed Service Program Overview Presenter

The need for ongoing SAM services is growing PRISM FY16 11/21/2018 12:53 AM The need for ongoing SAM services is growing The cloud is necessary… but a disruption 2017 Gartner predicts that, by 2017, 75% of cloud acquisition will be unapproved and untracked.1 “By 2019, cloud computing and the new digital economy will cause subscription pricing to overtake perpetual licensing and maintenance.” 2 2019 “By 2019, annual spending on enterprise software licenses will decrease by 30% in those organizations that automate entitlement optimization using software asset management (SAM) tools.”3 2019 160M $400B 140+ Criminals are becoming more sophisticated Data records compromised from top 8 breaches in 20154 Is the cost of cyberattacks to companies each year5 Median # of days between infiltration and detection6 The cloud is necessary but a disruption. While spending on SaaS is growing faster than spending on traditional software, Gartner predicts that, by 2017, 75% of cloud acquisition will be unapproved and untracked. http://www.gartner.com/reprints/?id=1-3GFZPY2&ct=160830&st=sb Gartner also states that by 2019, cloud computing and the new digital economy will cause subscription pricing to overtake perpetual licensing and maintenance. http://www.gartner.com/reprints/?id=1-3GFZPY2&ct=160830&st=sb Also, according to Gartner, by 2019, annual spending on enterprise software licenses will decrease by 30% as a result of software license optimization. https://www.gartner.com/doc/3425617/competitive-landscape-software-asset-management Criminals are becoming more sophisticated. They follow where the business is. Be ready for them. It is a game of cat and mouse. We make changes, they make changes. They find new holes to exploit, we find new ways to conduct our investigations. Be ready for them. 160M data point: http://www.idtheftcenter.org/images/breach/DataBreachReports_2015.pdf It’s estimated by Lloyds of London that cybercrime costs businesses over $400 billion each year Lloyds of London (Sept 8 2015) http://www.inc.com/will-yakowicz/cyberattacks-cost-companies-400-billion-each- year.html . 140+ data point: FireEye report published February 26, 2016: The time it takes organizations to discover compromises continues to drop. The median number of days attackers were present on a victim's network before being discovered dropped to 146 days in 2015 from 205 days in 2014; however, breaches can go undetected for years. https://www.fireeye.com/company/press-releases/2016/fireeye-releases-mandiant-m- trends-report-with-insights-from-adv.html When it comes to protecting your IT environment, strong policies and processes are critical, in addition to investing in your people, your instrumentation, and your platform. 1,2Gartner, Software Asset Management Is Now a C-Level Imperative, 3 March 2016 3Gartner, Competitive Landscape: Software Asset Management Tools, 26 August 2016 4IDRC Data Breach Report, 29 December 2015 5Lloyds of London, Companies Lose $400 Billion to Hackers Each Year, 8 September 2015 6MarketWatch, Press Release: FireEye Releases Mandiant M-Trends Report With Insights From Advanced Attack Investigations, 26 February 2016 © 2014 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Microsoft SAM Managed Service Program Introducing… The Microsoft SAM Managed Service Program is designed to provide customers with a continual, governance-based service to help them more effectively manage their IT assets and processes. The Program, delivered through accredited SAM providers, offers customers unique benefits from Microsoft, including a fresh start with their Microsoft licensing, flexible solutions for technology and licensing optimization, a reduced risk of audit, and more. Microsoft SAM Managed Service Program

Why we’re doing this Digital transformation More than a vendor: a trusted advisor The fourth Industrial Revolution - Every organization is a digital organization “More than ever before, customers are looking to a single trusted advisor to provide transformation-oriented managed services...” Melanie Posey, Vice President, 451 Research Optimized Dynamic SAM “..organizations will increasingly look toward mature SAM practices in order to reduce cybersecurity, financial, reputation, and compliance risks”. The Business Value of Software Asset Management, IDC Enable partner success Profitability Customer acquisition & retention 60% of customers look for MSP and would pay 2x for sole supplier** Sell once, good for multiple years 90 – 100% Customer retention* Up to 40% margin* 3x ROI* 15% added revenue from add-on services* * Microsoft poll of top SAM partners ** Digital Transformation, partner for success, 451 Research

Predictable, ongoing SAM services Accredited Providers in the Microsoft SAM Managed Service Program introduce customers to SAM best practices, tools, and resources to help them maintain long- term license optimization and compliance. The Program is designed to bring customers high quality, predictable, and ongoing SAM services through participating accredited providers. Predictable, ongoing SAM services

Bird’s eye view Microsoft SAM Managed Service The Microsoft SAM Managed Service Program offers a unique set of SAM services and benefits Offered only through accredited Microsoft partners with deep SAM expertise Provides deep data insights that allow for rich optimization, cybersecurity, and cloud discussions Microsoft SAM Managed Service Provides exclusive customer benefits, such as flexible licensing solutions and reduced risk of audit Gives milestone based, ongoing SAM analysis centered on SAM industry standards

Microsoft SAM Managed Service Program Customer and Partner Benefits Examples of customer benefits include: Fresh Start with Microsoft licensing Reduced risk of audit Examples of partner benefits include: Level of exclusivity, stamp of approval Lead generation, exposure, marketing resources Customer and Partner Terms & Conditions Terms & Conditions include: Minimum partner-to-customer service offerings Data sharing with Microsoft Use of IAM Partner accreditation Initial Eligibility Criteria + Assessment Process + Annual Re-Assessments Predictable, ongoing SAM service Continuous, governance-based, outsourced service: Help customers manage their software assets, and achieve software and license optimization and compliance. Provide complete view of customer’s infrastructure to drive better IT decisions.

Microsoft SAM Managed Service program benefits Partner benefits Customer benefits Offers level of exclusivity for Partners to use in sales & marketing Gives “stamp of approval” for ISO based SAM expertise from an Independent Evaluator Promotes business through lead generation and exposure Provides the opportunity to potentially reduce sales cycle time and drive new business Helps to potentially increase sales through add-on opportunities Provides marketing material templates from Microsoft Offers a “Fresh start” with Microsoft licensing Includes flexible licensing solutions and optimization Offers a reduced risk of audit (license compliance verification) Provides special offers and training opportunities Gives ongoing Microsoft product end-of-life guidance, SOM maturity tracking, and value-based consultations

Becoming an Accredited Provider To participate in this Program, partners must meet initial eligibility criteria and pass a rigorous assessment, based on SAM industry standards, administered by a third party Independent Evaluator. Once in the Program, partners will be able to utilize their exclusive status to set themselves apart in the marketplace, drive new business opportunities, and gain more exposure. Accredited Providers will become trusted advisors, providing this continual service to help customers manage their software assets and processes. Becoming an Accredited Provider

Accredited Providers Microsoft Envision 2016 11/21/2018 12:53 AM Only Accredited Providers can offer services through the program Assessment results Microsoft reviews results based on scoring methodology and delivers approval status Initial eligibility Partner meets initial global and local eligibility criteria and agrees to terms & conditions before being assessed Assessment process Partners are assessed by Independent Evaluator (PwC or EY) Reassessment Accredited Providers are reassessed annually © 2016 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Accredited Provider process Microsoft Envision 2016 11/21/2018 12:53 AM Accredited Provider process Initial eligibility criteria Partners must first meet specific global and local eligibility criteria to be considered for the Program and to then be assessed by third party Independent Evaluators, currently EY and PwC. Eligibility criteria is outlined in the Program Guide and in the Partner Agreement. Assessment process At their own expense, partners will be required to go through an assessment of their SAM expertise and consultation, providing detailed documentation and deliverables, based on actual customer SAM managed services or engagements, to the Independent Evaluator. The Independent Evaluator will review the partner’s abilities against the processes and sub-processes within the ISO and Microsoft SOM framework, identify gaps, make recommendations for improvement, and provide a final assessment of the Partner’s qualifications. The assessment process is outlined in the Program Guide. Final approval The local Microsoft SAM & Compliance (SAM&C) team will review the final Assessment, apply any additional locally specified closing criteria, and make the final determination for entry into the Program as an Accredited Provider within their geography. © 2016 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

High Level Process Overview 1 2 3 Partner notifies local Microsoft SAM&C team of their interest in the Program Partner and local Microsoft SAM&C team determine if all initial and additional local criteria are met Partner agrees to the Program Terms & Conditions Initial Partner Qualification 4 5 6 Partner Assessment Process Partner selects Independent Evaluator and pays Microsoft for the assessment process Partner goes through assessment process Partner passes assessment process Provider and Customer Onboarding Process 7 8 9 Provider receives welcome emails, certificate, and access to SharePoint site Provider sells service to customer and executes customer agreement, including all required Flow-Down Terms Customer receives welcome email with link to Customer Program Terms and Conditions SAM Managed Service Delivery and Maintenance 10 11 12 Provider delivers SAM Managed Services to customer and provides required deliverables to Microsoft at specified milestones Microsoft provides Program benefits throughout the term of the customer agreement Provider undergoes re-assessment process annually

Customer obligations and eligibility For customers to participate in the program and receive program benefits the following criteria must be met* A signed agreement with an Accredited Provider that covers: The minimum services and deliverables required for the program One year commitment with the intent to renew Share inventory / deployment data with Microsoft and the provider every 6 months, at a minimum Customer is not in breach of an agreement with Microsoft  Any audit just beginning or in process must be completed before participating in the program Minimum ongoing services: SOM consultation End of life guidance At least one value added service using the data such as cybersecurity or cloud readiness consultation License optimization and SAM maturity roadmap comparing data over time to show variances Inventory data must be complete and accurate, without any modification before providing to Microsoft Program Terms and Conditions *Details on these commitments are located in the Microsoft SAM Managed Service Customer Terms and Conditions

Resources Please see links below for program resources Microsoft Envision 2016 11/21/2018 12:53 AM Resources Please see links below for program resources https://aka.ms/sammanagedserviceresources https://aka.ms/sammanagedservice MPN program page where you will find the Program Guide, Customer and Partner Terms and Conditions, Independent Evaluator information, and much more. Customer facing program page which includes program details and a list of accredited providers. © 2016 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.