Licensing Microsoft 365 Business Matt Hall SMB Partner Lead Microsoft Dave Padget Senior Product Marketing Manager Microsoft

8/7/2019 11:38 AM Microsoft 365 SMB Webinar Series Sign up today for our bi-weekly webinar series on all things SMB! Understanding the Microsoft 365 Business Technology Stack on January 30th Compelling Moments for Discussing Microsoft 365 Business on February 13th Basics of Microsoft 365 Business on February 19th Deploying Microsoft 365 Business on February 26th © Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Quick SMB updates Laplink offer: free profile migration for Microsoft 365 Business aka.ms/profilemig Launchpad updates adding Why Cloud aka.ms/partner launchpad Microsoft 365 Business Scholarship program going quickly aka.ms/microsoft365b scholarship2019 Digital readiness launched for sales and technical aka.ms/m365bpa rtners

Licensing Microsoft 365 Business Capabilities M365 B vs O365 BP M365 B vs O365 E3 Add-ons

A single integrated solution to securely run an SMB Device management Cloud identity management Data archiving Advanced threat protection Microsoft 365 Business A single, integrated solution Data loss prevention Device antivirus Email filtering Chat-based teamwork USD20 Online meetings File storage Productivity software ~USD100 3rd party solutions

What is Microsoft 365 Business Microsoft Office 8/7/2019 What is Microsoft 365 Business Productivity Advanced Security Device management Office Applications Word, Excel, PowerPoint, Outlook, and more Online Services Exchange, OneDrive (1TB), Teams, and more Advanced Services Exchange Online Archiving External Threat Protection Office 365 Advanced Threat Protection Multi-Factor Authentication Enforce Windows Defender to be on Enforce Bitlocker to be turned on Internal data leak prevention Data Loss Prevention Azure Information Protection Device management Microsoft Intune SSO > 10 apps Deployment assistance Windows AutoPilot Auto-installation of Office apps AAD Auto-enroll + + Additional Benefits Consistent security configuration across Windows 10, macOS, Android, and iOS devices Upgrade from Windows 7 Pro or Windows 8.1 Pro to Windows 10 Pro ad no additional cost 99.9% financially-backed uptime guarantee; 24x7 online and phone support © 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.

Licensing Microsoft 365 Business Capabilities M365 B vs O365 BP M365 B vs O365 E3 Add-ons

Comparison of Microsoft 365 Business and Office 365 Business Premium Features 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 Outlook Customer Manager, Bookings Business and Expense Management Invoicing, MileIQ Safeguard Your Business Email and Document Security Data Loss Prevention., Office 365 ATP, Exchange Online Archiving, Litigation Hold, eDiscovery Data Security and Policies Selective data wipe, Azure Information Protection P1+, Intune app protection 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 Simplified Device Setup Windows Auto-pilot, Automatic Office Install

Microsoft 365 Business and Windows 10 Pro 8/7/2019 11:38 AM Microsoft 365 Business and Windows 10 Pro Microsoft 365 Business does not include a Win 10 license Customers who have Windows 7 Pro or 8.1 Pro can upgrade to Windows 10 Pro for free with an M365B subscription Customers with Windows Home need to purchase an upgrade. This can be done in select geographies through CSP Eligible Indirect providers currently authorized for Software on CSP can sell Home to Pro upgrade SKU 50% discount vs Windows store purchase + ability to bulk purchase © Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Licensing Microsoft 365 Business Capabilities M365 B vs O365 BP M365 B vs O365 E3 Add-ons

Why Microsoft 365 Business? Partners have traditionally sold Office 365 E3 to SMB customers, but now Microsoft 365 Business offers a more complete security solution Data Loss Prevention Does content analysis to easily identify, monitor, and protect sensitive information (eg SSN) from leaving org Exchange Online Archiving 100GB Archiving & preservation policies such as eDiscovery to remain complaint Office Message Encryption Encrypt email messages, including adding do not forward and encryption properties Additional security only available in Microsoft 365 Business Office 365 Advanced Threat Protection Attachment scanning & ML detection to catch suspicious attachments +link Scanning/Checking to prevent users from clicking suspicious links Azure Information Protection Controls & Manages how sensitive content is accessed by providing classification labels on documents and email Intune Manages devices and apps from the cloud, enabling device security and protecting company information on employee devices Security features available in Office 365 E3 and Microsoft 365 Business

Data Loss Prevention (DLP) This feature is included in both O365E3 and M365B What is it? Data Loss Prevention (DLP) policy help you prevent sensitive information such as credit card numbers, social security numbers, or health records from inadvertently leaking outside your organization. Locations to apply the policy Rule 1 Conditions Actions Rule 2 Data loss prevention policy What you need to know A DLP policy contains a few basic things: Where to protect the content – locations such as Exchange Online, SharePoint Online, and OneDrive for Business sites. When and how to protect the content by enforcing rules comprised of: Conditions the content must match before the rule is enforced – for example, look only for content containing Social Security numbers that's been shared with people outside your organization. Actions that you want the rule to take automatically when content matching the conditions is found – for example, block access to the document and send both the user and compliance officer an email notification.

Office Message Encryption This feature is included in both O365E3 and M365B What is it? Office Message Encryption helps protect information from leaking outside the organization through enabling email encryption What you need to know Two default Office Message Encryption options: Do Not Forward Encrypt Microsoft 365 Business also includes AIP for additional labels: Confidential / All Employees Highly Confidential / All Employees Recipient experience Office 365 recipients see restricted alert in reading pane and open email normally Gmail / Yahoo recipients see a link and must sign in to view Other recipients must request a one-time passcode to view the message in a web browser

Exchange Online Archiving This feature is included in both O365E3 and M365B What is it? Cloud-based archiving solution for compliance Helps solve archiving and eDiscovery challenges 100GB Archives created automatically as users fill them up What you need to know Compliance features Retention policies In-place hold and litigation hold In-place eDiscovery Security features Encryption between on-premises servers and Exchange Online Archiving Encrypting between clients and Exchange Online Archiving Auditing features Administrator and audit logging

Advanced Threat Protection (ATP) Included in Microsoft 365 Business only Not included in Office 365 E3 Advanced Threat Protection (ATP) What is it? Office 365 Advanced Threat Protection (ATP) helps to protect organizations from malicious attacks and malware What you need to know Scanning email attachments with ATP Safe Attachments Scanning web addresses (URLs) in email messages and Office documents with ATP Safe Links Identifying and blocking malicious files in online libraries with ATP for SharePoint, OneDrive, and Microsoft Teams Checking email messages for unauthorized spoofing with spoof intelligence Detecting when someone attempts to impersonate users and an organization's custom domains with ATP anti- phishing capabilities in Office 365

Azure Information Protection (AIP) Included in Microsoft 365 Business only Not included in Office 365 E3 Azure Information Protection (AIP) What is it? Azure Information Protection (AIP) is a cloud-based solution that helps an organization to classify, label, and protect its documents and emails. What you need to know AIP works by classifying data based on sensitivity. You configure policies to classify, label, and protect data based on its sensitivity. Classification and protection information follows the data—ensuring it remains protected regardless of where it’s stored or who it’s shared with. Define who can access data and what they can do with it— such as allowing to view and edit files, but not print or forward. AIP is turned on with a default set of labels in Microsoft 365 Business

Intune What is it? What you need to know Included in Microsoft 365 Business only Not included in Office 365 E3 Intune What is it? Manages mobile devices and apps from the cloud Enables device security and ensures it’s on and configured Protects company data on employee devices What you need to know Baseline policies created by Microsoft 365 Business configuration wizard Custom policies created by Microsoft 365 Business tiles such as Device Actions Advanced customization available in Intune portal

Scenarios where Office 365 E3 makes sense for SMB Customer is over 300 users Customer needs enterprise cloud voice (PSTN conferencing and calling) Customer needs on-prem CAL rights Customer needs shared computer activation (SCA) Group policy support & Excel BI Tools (Power Map, Power Pivot, Power Query, Power View)

Comparison of Microsoft 365 Business and Office 365 E3 Features 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 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 Prevention 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 [1] Indicates Office 365 has Plan 2 and Microsoft 365 Business has Plan 1 of the functionality [2] Available in US, UK, Canada

Partner Value Prop: Microsoft 365 Business vs Office 365 E3 NEW Customer Example: 50 seat new customer in the US Partner can earn additional year 1 incentives of $1,190 when selling Microsoft 365 Business Office 365 E3 Incentive Microsoft 365 Business Incentive 8% across rebate and accelerators, plus margin 24% across rebate and accelerators, plus margin $768 in Y1 incentives, plus margin $1,958 in Y1 incentives, plus margin $653 Rebate – 8% 1 $163 Cust Adds Accelerator – 2% WW Strategic Product Accelerator – 2% $979 US Strategic Product Accelerator – 12% 2 $576 Rebate – 6% 1 $192 Cust Adds Accelerator – 2% Starting Jan 1, 2019: Base rebate will be reduced from 8% to 6% for Office 365 SKUs. Microsoft 365 SKUs will remain at 8% M365B accelerator increases to 14% and begins paying on both new & existing customers

Partner Value Prop: Microsoft 365 Business vs Office 365 E3 Existing Customer Example: 50 seat existing Office 365 Business Premium customer in the US Partner can earn additional year 1 incentives of $1,219 when selling Microsoft 365 Business. Office 365 E3 Incentive Microsoft 365 Business Incentive 6% across rebate and accelerators, plus margin 22% across rebate and accelerators, plus margin $576 in Y1 incentives, plus margin $1,795 in Y1 incentives, plus margin $576 Rebate – 6% 1 $653 Rebate – 8% 1 $163 WW Strategic Product Accelerator – 2% $979 US Strategic Product Accelerator – 12% 2 Starting Jan 1, 2019: Base rebate will be reduced from 8% to 6% for Office 365 SKUs. Microsoft 365 SKUs will remain at 8%. M365B accelerator increases to 14% and begins paying on both new & existing customers

Licensing Microsoft 365 Business Capabilities M365 B vs O365 BP M365 B vs O365 E3 Add-ons

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 Office ATP P1 Add-on Included $2 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** Dial-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. 5,000 Seat Minimum. $6pupm for E1/E3, $2pupm for E5 *Exchange Online Protection required for on-premises mailboxes.

Next steps Sell Microsoft 365 Business vs Office 365 E3 Lead with security value and understand what customers can get from the features! If customers aren’t willing to pay $20 start by attaching Office 365 ATP to existing Office 365 deals Get more information at aka.ms/m365bpartners

Resources Microsoft 365 Business Licensing Deck: aka.ms/m365bld Microsoft 365 Business Service Description: aka.ms/m365bsd Microsoft 365 Business Partner Tools: aka.ms/m365bpartners SMB Tech Community: aka.ms/smbtc

Questions Please submit your questions via the chat window 8/7/2019 11:38 AM Questions Please submit your questions via the chat window If we don’t answer your question as part of this webinar, please submit it through our Yammer group: www.yammer.com/office365partners © Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

8/7/2019 11:38 AM Thank you © Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.