Microsoft Services Provider License Program

Agenda Program Overview SPLA Benefits Product Availability What is a Services Provider? What are Software Services? What is SPLA? Is SPLA Right for Your Business? SPLA Benefits Product Availability Program Eligibility and Requirements Program Requirements SPLA Licensing Models Hosting with Microsoft Pricing Monthly Reporting Enrolling in the SPLA Program Additional Resources

What is a Services Provider? Services providers offer a variety of services to customers, including : Direct or indirect access to Microsoft licensed products such as hosted websites or line-of-business (LOB) applications through Microsoft server licensed products Software services that interact with Microsoft licensed products where you, not the end customer, are the licensee Facilitating your customer’s business, including business transactions with third parties, through software services that interact with Microsoft licensed products Access to and use of any application, Microsoft or otherwise, with the application running on a server and interacting with a Microsoft licensed product on that server

What are Software Services? Software services are services that you provide your customers that make licensed products available and that display, run, access, or otherwise interact with Microsoft licensed products, whether or not you receive a fee The SPLA reduces the complexity of offering software services because you, not the customer, are the licensee

Is the SPLA right for your business? What is a SPLA? The Services Provider License Agreement (SPLA) enables an organization to license Microsoft licensed products on a monthly basis, over a three-year agreement term, and use these products to provide software services to its customers Is the SPLA right for your business? The SPLA may be right for you if you have one of the following business models and scenarios: Web hosting providers Application services providers Messaging and/or collaboration service providers Platform infrastructure providers Streaming media providers Web or Internet services providers Independent software vendor s that provide hosted applications IT outsourcers that provide software licenses Business process outsourcers (BPO) Franchisees and franchises

SPLA Benefits (page 1 of 2) Flexible cost structure With a monthly use-based licensing payment structure, you pay for only what you authorized your customers to use the previous month. Plus, there are almost no start-up costs and no monthly commitment Ability to deliver a customized service You have greater flexibility when licensing Microsoft products to your customers in a dedicated or shared hosting environment Worldwide distribution You can use Microsoft licensed products to sell your services to customers in any part of the world Data center outsourcing You may install Microsoft licensed products on servers under the day-to-day management and control of an outsourcing company Wide selection of current product versions You have access to a wide range of Microsoft licensed products, including server and desktop PC applications

SPLA Benefits (page 2 of 2) Customer demonstrations Demonstrate your software services to prospective customers as long as you comply with the Services Provider Use Rights (SPUR) Customer evaluations You may use the licensed products to provide software services to prospective customers on a trial basis for up to 60 days Evaluation and testing of Licensed Products You may internally test and evaluate the Microsoft licensed products for up to 90 days before offering them to your customers as a service Rental rights Allows you the ability to rent desktop PCs with certain Microsoft licensed products installed Customer facility installations Install Microsoft licensed products on devices you own or lease and that are located on your customer’s premises

Sample* of Microsoft Products Available The Microsoft SPLA offers you access to a wide selection of Microsoft licensed products. The list of available products is available through the SPUR. The top SPLA-selling licensed products, ranging from IT solutions to office productivity, are listed below: Microsoft Dynamics business software Microsoft Exchange Hosted Services Microsoft Exchange Server 2007 Microsoft Forefront™ client security Microsoft Office System Microsoft SharePoint Server Microsoft SQL Server Microsoft System Center Microsoft Windows Server 2003 operating system *List is a sample only and current as of June 2007

Program Requirements The following are the requirements your organization must meet to participate in the SPLA program: Enroll in the Microsoft Partner Program as a Microsoft Certified Partner or a Registered Member enrolled in the Hosting Program Comply with the Services Provider Use Rights (SPUR). The SPUR specifies use rights and conditions applicable to a customer’s use of the licensed products Comply with export requirements Provide technical product support for the licensed products you deliver to your customers. Obtain a minimum of 10 pre-paid incidents Unless you have a direct agreement with Microsoft, designate a licensed products reseller (SPLA reseller) Submit monthly reporting on software licenses that you authorized your customer to use, even if no activity Microsoft ISV Royalty Licensing Program - Microsoft Confidential Information

Licensing Models Licenses acquired under the SPLA are monthly non-perpetual licenses that can be used during the term of the agreement. The Microsoft licensed products included in the program are available for licensing through two models: Subscriber Access License (SAL) Per Processor License Note: Not all products are available in both license models.

Subscriber Access License (SAL) A SAL is required for each unique individual user or device that is authorized to access or otherwise use the licensed products When using the SAL option, there is no need for a separate Server License Examples of products licensed with a SAL: Microsoft Windows Server®, Microsoft SQL Server™, Microsoft Exchange Server, Microsoft Office, and Microsoft Dynamics™ business software Benefits of the Per Subscriber model include: Subscribers can access any number of servers Services providers can "scale out“ by acquiring the number of licenses needed on a monthly basis Services providers have minimal start-up costs

Per Processor License (PL) Each Processor License allows an unlimited number of users to access the software that is installed on that processor for products licensed through a per processor model Examples of products licensed through a per processor model: Microsoft Windows Server, Microsoft SQL Server, Microsoft SharePoint® Server, and Microsoft Office Benefits of the PL model include: Processor licenses are easier to monitor and count Processor licenses replace Internet Connector licenses Processor licenses are economical across a variety of business scenarios

Sharing Risk/Reward Increasing Margin Reducing TCO Sharing knowledge Hosting Services Advantages of partnering with Microsoft for your hosting services include: Committed to hosting and delivering Software as a Service (SaaS) Building products optimized for hosting scenarios Hosting solutions Investments in products Providing technical and business assistance Business and marketing support Technical enablement Increasing Margin Building Markets Partners Solutions Licensing Technical Training Marketing Tools Reducing TCO Sharing Risk/Reward Sharing knowledge

Pricing Price List Indirect Agreement: Contact your SPLA reseller to find out the price you are charged for each Microsoft licensed product offered Direct Agreement: You can obtain the price list through www.explore.ms Price Changes Microsoft may decrease the price in the price list at any time Microsoft may increase the price in the price list only: Once each calendar year on January 1st and At any time to offset exchange rate fluctuations for prices other than U.S. dollars Microsoft ISV Royalty Licensing Program - Microsoft Confidential Information

Monthly Reporting Submit either a monthly use report or zero use report on all licenses that you, your affiliates, and software services resellers authorized your customers to use. If you did not use any of the licensed products to provide software services, submit a zero use report. Indirect Agreements If you have an indirect agreement through a SPLA reseller: Submit a report within 10 days after the last day of the month Submit to your SPLA reseller Direct Agreements If you have a direct agreement with Microsoft: Submit a report within 15 days after the last day of month Submit through Microsoft Order Entry Tool (MOET) Microsoft ISV Royalty Licensing Program - Microsoft Confidential Information

Enrolling in the SPLA Program To participate in the SPLA program, follow these steps: Enroll in the Microsoft Partner Program As a Microsoft Certified Partner or As a Registered Member enrolled in the Microsoft Hosting Program Sign Agreement Contact your SPLA reseller if you have an indirect agreement Contact your Microsoft Account Manager if you have a direct agreement

Additional Resources Microsoft Volume Licensing www.microsoft.com/licensing Services Provider Licensing Agreement Program www.microsoft.com/licensing/programs/spla Microsoft Partner Program www.microsoft.com/partner Microsoft Hosting Solutions www.microsoft.com/serviceproviders/hosters.mspx SPLA Training via the Microsoft Partner Learning Center https://training.partner.microsoft.com/plc/register.aspx?publisher=3&courseid=1166

Microsoft provides this material solely for informational and marketing purposes.  Customers should refer to their agreements for a full understanding of their rights and obligations under Microsoft’s Volume Licensing programs.  Microsoft software is licensed, not sold. The value and benefit gained through use of Microsoft software and services may vary by customer. Customers with questions about differences between this material and the agreements should contact their reseller or Microsoft account manager. © 2008 Microsoft Corporation.  All rights reserved.  Microsoft is a registered trademark of Microsoft Corporation in the United States and/or other countries.