Partner business model FY13 Office 365 Advisor program Office 365 Open & FPP program

Partner business model FY13 Office 365 Advisor program Office 365 Open & FPP program

Reseller Services Provider Business Advisor TrustedTransactional Relationship High Margin Low Products & Services FPP Open L Open Annuity Office 365

Managed Services $12,000 Year One $12,000 Managed Services $12,000

Year One $12,000 Managed Services $12,000 Business Advisor IT infrastructure design IT planning Solutions Provider Expansion Customization LOB integration Services Provider IT training End-user training Upgrades & desktop remediation

Partner business model FY13 Office 365 Advisor program Office 365 Open & FPP program

Cloud Essentials 16% 4% Manage (recurring) 12% Sell 1–149 seats Cloud Essentials Sign Microsoft Partner Network (MPN) and Microsoft Online Services Partner Agreement (MOSPA) Enroll in Cloud Essentials Receive training, marketing tools, Internal Use Rights (IUR) Earn 16% on all seats sold within the fiscal year when you sell up to 150 seats

Cloud Essentials 16% 4% Manage (recurring) 12% Sell 1–149 seats Cloud Accelerate 4% Manage (recurring) 12% Sell 150–499 seats 20% Accelerator Sell 3 deals Sell cumulative 150 seats Earn 4% accelerator on all seats sold within the fiscal year 150+ seats

Cloud Essentials 16% 4% Manage (recurring) 12% Sell 1–149 seats Tier A/B Cloud Accelerate 4% Manage (recurring) 12% Sell 150–499 seats 20% Accelerator 500 – 2,499 seats 2,500+ seats 4% Manage (recurring) 12% Sell 500-2,499 seats 22% Accelerator 4% Manage (recurring) 12% Sell 2,500+ seats 23% Accelerator

Cloud Essential Partner - Sell & Manage New seats $10 per seat per month Incentive formulas Sell= $10/seat*(12/9) months * (100/40) seats *12% Manage= $10/seat *(12/9) months* (100/ 40) seats * 4% TOTAL Annual Incentive $2,496 Manage Sell

Cloud Accelerate Partner - Sell & Manage New seats TOTAL Annual Incentive $5,768 $10 per seat per month Incentive formulas Sell =$10/seat * (12/9/5) months * (100/40) seats *12% Manage=$10/seat *(12/9/5) months* (100/40) seats * 4% Accelerator: $10/seat * (12/9/5) months* (100/40) seat *4% Manage Sell Accelerato r

FY13 Office 365 Advisor Program Revenue per seat Cloud Essentials Cloud Accelerate Not to scale Cloud Essentials Cloud Accelerate

FY13 Accelerator seat count FY13 statements & true up Jul – Dec Accelerators 2/15 Adjusted payments FY13 rates take effect October 10, 2012

Partner business model FY13 Office 365 Advisor program Office 365 Open & FPP program

No startup or infrastructure costs No inventory costs More predictable revenue stream Own the customer billing Sell as you do today Expand your revenue opportunity Advisor Office 365 Open & FPP

Open renewal revenue 22% more revenue Year 1Year 2 Year 3 Year 4 Year 5

Open renewal revenue 44% more revenue Year 1Year 2 Year 3 Year 4 Year 6 Year 5 Year 7 44% more revenue

Year 1 Year 2Year 3Year 4 Year 5

Year 1Year 2Year 3Year 4Year 5Year 6

14% likely to buy when not recommended 78% likely to buy Office when recommended Dare to Ask Double attach Office 2003 Windows XP End of Support

Join Cloud Essentials/Cloud Accelerate Advisor program Prepare for Office 365 Open and FPP Live the new Office