Licensing Microsoft 365 Business Today we will talk about licensing Microsoft 365 Business, comparing advantages of different plans, add-on capabilities and also giving an overview of customer targeting Name Title Date

How do I choose the right plan for my SMB customer? Microsoft 365 Business | Up to 300 Users Microsoft 365 E5| Unlimited Users Office 365 Business Premium + Advanced Security & Device Management Hero plan for SMB customers across industries and sizes Designed to serve technology needs for 90% of SMB customers Relevant for customers with productivity and security needs Office 365 Enterprise + Advanced Device & Threat Management Designed for SMB customers with advanced productivity and security needs < 5% of SMB customers should need functionality in E5 Specific examples: Customer needs enterprise cloud voice Customer needs on-prem CAL rights Customer needs advanced security such as Conditional Access Office 365 Business Premium Microsoft 365 Business is the Hero SKU for SMBs under 300 users. Partners should consider selling Microsoft 365 Business to customers they would have traditionally sold Office 365 E3 in the past Microsoft 365 Enterprise SKUs are fringe scenarios for SMB customers and apply when customers need advanced functionality such as: Customer needs enterprise cloud voice Customer needs on-prem CAL rights Customer needs advanced security such as Conditional Access Office 365 E5 Advanced offering for customers with sophisticated productivity needs, specifically: On premises CAL rights for Exchange, SharePoint & Skype for BusinessEnterprise Voice & PSTN conferencing Entry offer for SMB customers moving to MSFT cloud Enable customers to move from legacy client to cloud Move to Microsoft 365 Business with upsell Additional add-on services available (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

Comparison of Microsoft 365 Business and Office 365 Business Premium Features (new in blue) O365 Business Premium Microsoft 365 Business ERP (user/month) $12.50 $20 Get More Done + Work Better Together Collaboration Tools Email, Groups, Teams, Yammer  Online Meetings & HD Conferencing IM, Meetings, Audio & Video Conferencing Online Document Storage OneDrive for Business Content Creation Client Office apps on PC, Mac, Android & iOS Build Your Business Customer Management Lightweight CRM, Bookings, Listings, Connections Business and Expense Management Invoicing, MileIQ, Business Center Safeguard Your Business Simplified Device Setup Windows Auto-pilot, Automatic Office Install Device Management Intune MDM for Windows, MacOS, iOS & Android Windows Management and Advanced Device Security Enabling management of Win 10 Pro, BitLocker encryption, Upgrade rights to Windows 10 Pro for 7/8.1 Pro licenses Data Security and Policies Selective data wipe, Azure Information Protection P1+, Intune app protection Email and Document Security Data Loss Prevention*+, Office 365 ATP+, Exchange Online Archiving, Litigation Hold, eDiscovery The following features are being added to Microsoft 365 Business at no additional charge Office 365 Advanced Threat Protection Data Loss Prevention Exchange Online Archiving Azure Information Protection Plan 1 Full Intune availability Enhancements in the simplified management console Enforcing Bitlocker Encryption Enforcing Windows Exploit Guard (see the blog post for customer-friendly descriptions of these features) *Data Loss Prevention Features will be available Summer 2018 +Office client support for ATP, DLP, and Information Protection features will be available summer 2018

Comparison of Microsoft 365 Business and Office 365 E3 Features (new in blue) Office 365 E3 Microsoft 365 Business Estimated retail price per user per month $USD (with annual commitment) $20 Maximum number of users unlimited 300 Office Apps Install Office on up to 5 PCs/Macs + 5 tablets + 5 smartphones per user (Word, Excel, PowerPoint, OneNote, Access), Office Online ProPlus Business Email & Calendar Outlook, Exchange Online 100GB 50GB Chat-based Workspace, Meetings Microsoft Teams  File Storage OneDrive for Business, Unlimited 1 TB Social, Video, Sites Stream, Yammer, Planner, SharePoint Online1, Power Apps1, Flow1 Business Apps Scheduling Apps – Booking, StaffHub Business Apps – Outlook Customer Manager, MileIQ1 Business center2, Listings2, Connections2, Invoicing2 Threat Protection Office 365 Advanced Threat Protection Windows Exploit Guard Enforcement Identity & Access Management Azure Active Directory - SSPR Cloud Identities, MFA, SSO >10 Apps Device & App Management Office 365 MDM Microsoft Intune, Windows AutoPilot, Windows Pro Management Upgrade rights to Windows 10 Pro for Win 7/8/8.1 Pro licenses Information Protection 100 GB Exchange Archiving, Office 365 Data Loss Prevention4 Azure Information Protection Plan 1, BitLocker Enforcement On-Prem CAL Rights ECAL Suite (Exchange, SharePoint, Skype) Compliance Litigation Hold, eDiscovery, Compliance Manager, Data Subject Requests Significant value in Microsoft 365 Business vs E3 for same price Partners should consider selling M365 Business to E3 customers, unless customers require on-prem CAL rights [1] Indicates Office 365 has Plan 2 and Microsoft 365 Business has Plan 1 of the functionality [2] Available in US, UK, Canada [3] Currently in public preview in US, UK, Canada [4] Data Loss Prevention Features will be available summer 2018

Detailed comparison of plans Features (new in blue) Office 365 BP Microsoft 365 Business Microsoft 365 E3 Microsoft 365 E5 Estimated retail price per user per month $USD (with annual commitment) $12.50 $20 $32 $57 Maximum number of users 300 unlimited Office Apps Install Office on up to 5 PCs/Macs + 5 tablets + 5 smartphones per user (Word, Excel, PowerPoint, OneNote, Access), Office Online Business ProPlus Email & Calendar Outlook, Exchange Online 50GB Chat-based Workspace, Meetings Microsoft Teams  File Storage OneDrive for Business 1 TB Social, Video, Sites Yammer, SharePoint Online, Planner Stream Business Apps Scheduling Apps – Booking, StaffHub Business Apps – Outlook Customer Manager, MileIQ1 Business center2, Listings2, Connections2, Invoicing2 Threat Protection Microsoft Advanced Threat Analytics, Device Guard, Credential Guard, App Locker, Enterprise Data Protection, Office 365 Advanced Threat Protection Windows Defender Advanced Threat Protection Office 365 Threat Intelligence Identity & Access Management Azure Active Directory - SSPR Cloud Identities, MFA, SSO >10 Apps Azure Active Directory - Conditional Access, SSPR Hybrid Identities, Cloud App Discovery, AAD Connect Health Credential Guard and Direct Access Azure Active Directory Plan 2 Device & App Management Microsoft Intune, Windows AutoPilot Microsoft Desktop Optimization Package, VDA Information Protection Unlimited Exchange Archiving3, Office 365 Data Loss Prevention*, Azure Information Protection Plan 1 Azure Information Protection Plan 2, Microsoft Cloud App Security, O365 Cloud App Security On-Prem CAL Rights ECAL Suite (Exchange, SharePoint, Skype, Windows, SCCM, Win. Rights Management) Compliance Litigation Hold, eDiscovery, Compliance Manager, Data Subject Requests Advanced eDiscovery, Customer Lockbox, Advanced Data Governance Analytics Power BI Pro, MyAnalytics Voice PSTN Conferencing, Cloud PBX Detailed view of functionality across plans. For price point, M365 Business is best value plan for SMB customers [1] Available in US, UK, Canada; [2] Currently in public preview in US, UK, Canada; [3] Unlimited when auto-expanding turned on *Data Loss Prevention Features will be available summer 2018

Premium add-ons and their eligibility by plan 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** Overview of addons and their eligibility by plan Important to note that calling plans cannot be attached to Business plans Neither can workplace analytics 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.

Microsoft 365 Business customer targeting best practice 1 2 3 Target Medium SMB’s Chose a profile Use market moments Focus on 25-300 seat SMB customers Most success in financial services, legal, consulting, healthcare and manufacturing Office 365 Business Premium customers are ripe to move SMB customers considering Office 365 E3 should move to Microsoft 365 Business SMB customers currently using EM+S and/ or competitive security solutions can converge their technology investment into one solution Customers on legacy Office and Windows should have a roadmap to get to Microsoft 365 Business Security is top of mind for many SMB’s and is becoming a business issue vs technology issue GDPR and similar regulation across the world is forcing SMB customers to think carefully about compliance End of Support for Office 2010 and Windows 7 is a large moment for SMB with 50% of customers using one of these technologies 95% of SMB customers are right for Microsoft 365 Business Important to target high propensity customers first to gain momentum, focusing on medium size SMB’s in specific industries (listed on slide) Once you have identified target customers, chose a technology profile to further refine your targeting. Appropriate profiles are listed Win the pitch with these customers through associating your pitch with common market moments that are top of mind for the customer More information on the next slide

1 2 3 4 SMB customer scenario Move to… Pitch value Office 365 Business Premium Office 365 E3 Office 365 Business Office 365 Business Essentials Microsoft 365 Business Focus on advanced security and device management capabilities in Microsoft 365 Business 2 Pitch customers on ability to consolidate into one, integrated solution @ $20 price point. If the customer needs conditional access, consider attaching AAD P1 EM+S E3 customer Other security vendors Microsoft 365 Business 3 Pitch modern way to experience Office client and opportunity to transform Teamwork and Security scenarios within the organization Office 365 Business Premium then Microsoft 365 Business Exchange Online Plan 1 These scenarios are prioritized from 1-4 in terms of customers propensity to move Based on Microsoft sales data Important for scenarios 3-4 to build a roadmap to Microsoft 365 Business. Don’t overwhelm the customer by moving all at once Specific pitches will work for specific customers 4 Pitch opportunity to modernize their business using end of support for Office 2010 and Windows 7 as key moment. Attach move to Office 365 with new Windows 10 Pro device Office perpetual (eg Office 2010) Windows 7 Office 365 Business Premium then Microsoft 365 Business

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Detailed comparison of Office client commercial offerings Microsoft Office Detailed comparison of Office client commercial offerings 2/25/2019 Office 365 Business Office 365 ProPlus Word ● Excel PowerPoint OneNote Outlook Publisher Access Microsoft Teams Volume Activation Group Policy1 Shared Computer Activation App Telemetry Update Controls2 Apply Personal Retention Policies3 ●7 Access Site Mailboxes3 Access In-Place Archive Folder3,4 Spreadsheet Compare & Inquire Business Intelligence Create IRM3 Data Loss Prevention3 Groups Office Deployment Tool Roaming Documents & Settings 1 TB OneDrive for Business Licensing Model Per User License Type Subscription PC/Mac Installs8 5 iOS/Android Smartphone Installs8 Tablet Installs8 Office RT Commercial Rights Office Online/Web Apps Commercial Use Rights Applications Premium Value Microsoft 365 Business includes the Office 365 Business client which has some differences to Pro Plus Allows the organization to push certain configuration settings (security settings, app settings, Active Directory roaming, etc.) for Office to machines logging onto the corporate network.  With Office Standard 2016 and Office Professional Plus 2016, IT has full control of updates using the MSI model. With Office 365 ProPlus, installation and updates are managed via Click-to-Run. The suites provide different levels of integration with business productivity servers. Archive email from Outlook—no .pst files needed—and set retention policies that automatically archive or delete email. IT admins can centrally manage the In-Place Archive. Enterprise Voice includes several advanced calling features as well, such as delegation, team calling, Group Call Pickup, and Response Groups. Subscription licenses available through the Enterprise Agreement Subscription, Open Value Subscription, and Enrollment for Education Solutions programs. Requires additional online service(s) Permits local installation via click-to-run of the licensed Office 365 apps included with the service. Does not include rights to install Office 2016 on-premises versions. Office supports PCs and Windows tablets running Windows 7 or higher, and Macs running MAC OS X 10.6 or higher. Office for iPad can be installed on iPads running version 7 or higher. Includes rights to Office Online Server. Cloud Value Licensing See speaker notes section for footnotes: ● Support for Business Client will be available Summer 2018 © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.