LICENSING IN THE CLOUD CHRIS SHARP, BRIAN HOLDER, KATHRYN SADUCAS, ROSS DEMBECKI

Topics for Today What Is it? Why would I sell this? How is it licensed? CRM Online – update Questions

WHAT IS THE MICROSOFT CLOUD OFFERING? CHRIS SHARP

ON PREMISEHOSTED PUBLIC SaaS PaaS IaaS

ON PREMISEHOSTED PUBLIC SaaS PaaS IaaS Global Market Opportunity. The global market opportunity for cloud-based applications is US$17 billion in 2010, growing at 24% CAGR (IDC)

Recognising the Market Opportunity IDC: Worldwide Software As a Service Forecast: Software will Never Be the Same, June 2010IPED: Can You See Through The Clouds? The Evolution Of Technology Delivery, March 2010 IaaS PaaSSaaS % of partners offering workload thru cloud Web Conferencing 10%20%30%40%50% 10%20%30%40%50% HR and Workforce Management Collaborative Software SCM /Office and Personal Productivity Software Security Software Content Management/Document Management Business Intelligence Industry-specific Application B2B/B2C Services CRM Accounting Utilities/Software/ERP Web conferencing – 48% CRM and ERP – 37% and 26% Messaging and productivity – 35% Collaboration – 46% Content/document management – 39% 3X Growth! Customer demand Business consulting transformation Expansion of services Annuity revenue opportunity Acceptance of SaaS models Drivers

Web Apps Business Productivity Online Suite: Enterprise class software delivered via subscription services hosted by Microsoft and sold with partners

25GB Mailbox Sync-able, Searchable, Browse-able GAL Access via Outlook; OWA & ActiveSync Integrated Anti-Virus/Anti-Spam Shared Calendars, Contacts & Tasks Administer via Web and Active Directory Optional Archive, Encryption & BES support Over 200 other capabilities included Teams Sites & Document Libraries RSS Content Syndication Audience Targeting Group Tasks, Surveys and Calendars Content Retention and Auditing Policies Workflows & Business Process Forms Integrated Web Parts Platform Customization & Extensibility Web Conference with 2 to 250 participants VoIP Conference with 2 to 250 participants Preload content or share on-the-fly Share Single App or Complete Desktop Stream Flash and Windows Media files Virtual Breakout Rooms and Q&A kiosk Active Speaker Switched Video Streams Adaptive Codecs Optimize Bandwidth Enhanced Presence Instant Messaging Group IM AD-integrated Address Book Search Distribution List Expansion for Group IM Integrated peer-to-peer File Transfer 1:1 Audio and Video Escalation to Live Meeting Conferences What is in BPOS

WHY WOULD I SELL THIS TO MY CUSTOMERS? BRIAN HOLDER

Choice Customer Choice

Customer Value Proposition Faster deployment Better productivity through ‘anywhere access’ Simplified management Always upgraded an on the latest versions Providers users with latest productivity tools Enables IT staff to focus on adding business value Helps meet the challenges of workforce reduction Helps IT adapt to mergers and acquisitions quickly Business class availability backed by Financially backed SLAs Highly secure operations – geo redundant datacentres Assurance of world class operational standards % uptime Makes your costs even and predictable Reduces both capex and opex Priced simply: includes both software and hardware + management Finance Process Technology People

Partner and Customer Momentum (BPOS) Doubled the Microsoft Online Service customer base in the last 3 months 84% of Microsoft Online Services seats sold have partner attached 63% of all seats sold under an EA Over 85 partners received investment funds in Q4 to help close deals Over 500 partners growing each month

Australian Customer Wins

Microsoft Online Success in Australia Deskless Worker improves information to non IT users eg. policies, training, OH&S Provides & collabortion to remote employees Users: 4500 Deskless Sharepoint & BPOS Novell Groupwise Migration using Quest Migration tools Using Windows Mobiles to access on the road Users: 170 BPOS (CASA agreement) Migrate off Lotus Notes onto BPOS Migrate disparate systems to one platform (result of mergers and acquisitions) Provide Blackberry integration over 700 devices Users: 8000 BPOS Suite Reduce costs by 25% Decrease Cost & Rapid Deployment Simpler IT Management & Upgrade to new technology

Types of end-users Have PC and are office workers, collaborate regularly with others, access via mobile devices etc. Outlook connectivity with OWA Full Exchange Online, SharePoint Online 5GB Exchange mailbox 250MB SharePoint storage ActiveSync device support Information Worker Don’t have PC or Laptop assigned at work, Infrequent access to a PC, multiple users sharing one PC 500MB Exchange mailbox Mailbox accessed via OWA Light SharePoint capabilities (no storage) Lower cost Deskless Worker

18 Near Term Opportunity Has workforce with no dedicated PC Need to communicate to all employees Task-workers Needs to lower costs fast Needs more efficient IT (centralize or consolidate platform) Cost Wants strategy or evaluating cloud Outsourced or evaluating outsourcers Is unhappy with current outsourcer Cloud/Out- sourced Has Google created initial interest Last Novell strongholds Notes customer (http: //notescompete) Google, Groupwise or Notes

19 Near Term Opportunity Is not deployed on current technology (on Ex 2000, Ex 2003) Wants dynamic infrastructure. Greater standardization Challenges Staying Current Has security/ reliability concerns Has challenges with up-time Up-time Challenges Needs standardized infrastructure, fast addition of new users Is expanding Needs collaboration strategy to drive revenues Mergers & Acquisitions New CIO, CEO, CTO, TDM Change Agent

HOW IS IT LICENSED? KATHRYN SADUCAS

Online Services Program Comparison 21 Microsoft Online Subscription Program (MOSP) Enterprise Agreement (EA) or Campus School Agreement (CASA) Evergreen – Auto Renewal 1 Year Subscription Term Billing Starts Immediately (Monthly) Credit Card or on your Telstra Bill No Seat minimum Coterminous with EA (Up to 3 Years) No Seat minimum Attached to Current EA/CASA Enrolment Billing Starts Immediately (Annual) Billing Consistent with VL Agreement terms Suites and Component offerings (no Deskless or extra sharepoint storage) BPOS-S is an Additional Product in EA (no platform commitment) All qualified desktops must still have a CAL Suite licensed with active SA Flexibility to deploy staged rollout by counting actual users, not FTEs or devices Agreement Terms Available Offers Suites and Component offerings USL’s and Step-Up USLs (now available) Customer Type New customer looking for lowest cost option Existing FPP, OEM, Select & Open Value customers New or Existing Platform EA customers or CASA customers Existing EA Core CAL or ECAL customers

BPOS Dual Access License Rights 22 User Subscription License (USL) can be used with the service and with on-premises servers Exchange Example Customer purchases Exchange Online User Subscription License Licensed User can use the USL to access Exchange Online Customer purchases Exchange Server licenses for their on-premise servers Same Licensed User can use the USL as a Client Access License to access On-Premises Servers On-premise license rights are for the equivalent workload CAL Deskless Worker USLs do NOT allow for dual access rights; no on-premises equivalent

Partner Opportunity 23 Partner TypeActivityFY11 Incentive Model Online Services Advisor Partners ‘Partner of Record – POR’ (VAR/SI/ISV)  Assist customers in purchasing, migration, customisation and implementation  Provide continuous post- sales support, training and other managed services Partner Of Record (POR) Fees  12% Net Add on first year subscription revenue.  6% Ongoing on subscription monthly revenue. Large Account Resellers (LAR)/ Enterprise Software Advisors (ESA)  Assist EA customers in the process of subscribing to Online Services.  Drive attach of Online Services to new/renew/existing EA. ESA Fees  10% Fee on Online Services annual billed revenue (FY11) attached to EA. Note: ESA/LAR cannot claim both POR fees and ESA fees unless they are 2 x separate trading entities

Partner Revenue and Opportunity Analysis Analysis of 40 deals Average deal size: 141 seats Average deal revenue: $24,000 Migration & Integration $46/seat$46/seat Business Consulting & Customisation $66/seat$66/seat Partner of Record Fees $20/seat$20/seat Managed Services $35/seat$35/seat Total = $167 per seat

Assign as POR Attaching the “Partner of Record” Download OSA Attach Form from QuickStart Complete Form and Submit to Customer for Signature Submit Form via MOCP for processing Receive process completion Customer attaches POR in MOCP during purchase experience Active MPN Membership Review and Accept MOSPA (and TOSA for non EA) Complete Online Training BPOS Partner Receive Fee Statement Submit Invoice Receive Fees Note: For non-EA via Telstra T-Suite, POR is attached automatically through online ordering process. Attach POR to Volume License Enterprise Enrolment Agreement (EA) For non-EA POR attached automatically during ordering process via Telstra

EA Pricing