Microsoft | EMEA Channel Partner Conference 2014 Services Channel Incentives Services Microsoft | EMEA Channel Partner Conference 2014 Let’s Break New Ground Together. Glauco Ferrari Director Hosting Services Providers Microsoft Corp.

Microsoft | EMEA Channel Partner Conference 2014 Services Channel Incentives Cloud Services Route to Market Hosting opportunity (including 1 st party apps) Source AMI

Microsoft | EMEA Channel Partner Conference 2014 Services Channel Incentives Cloud Services Route to Market View by areaSplit by customer size

Microsoft | EMEA Channel Partner Conference 2014 Services Channel Incentives Hosters Telco/Operators Who are our Hosting Service Providers partners? SIs/Outsourcers SaaS ISVs New Players 22,000+ HSPs 5,000+ new in FY13

Microsoft | EMEA Channel Partner Conference 2014 Services Channel Incentives Your customers are considering a hosting business model

Microsoft | EMEA Channel Partner Conference 2014 Services Channel Incentives Hosting Service Providers Business Model What HSP Sell Dedicated Servers Web Hosting Virtual Machine Hosting Database Hosting Desktop Hosting Applications Hosting How HSPs differentiate vs Public Cloud Customized SLA Data Sovereignty Underserved markets Additional capabilities

Microsoft | EMEA Channel Partner Conference 2014 Services Channel Incentives Hosting SPLA-R Priorities for FY15 1.Reach: Keep growing Reach by recruiting new partners: VAR, SI, ISV 2.Yield: Win with Cloud OS: Host-Guest model (CPS), Windows Server Datacenter Win the application workloads: Exchange, Lync, SharePoint Leverage Consumerization of IT: Remote Desktop Services, Office Accelerate SQL Premium 3.Operation Excellence: Reporting quality and timing: 30% of SPLA do not report every month Improve compliance: 60% of SPLA agreement show some compliance issues All Combined: ~$400m of incremental SPLA revenues

Microsoft | EMEA Channel Partner Conference 2014 Services Channel Incentives SPLA Channel Incentive Directions Reporting Business Development Time Partner acquisition (Reach) Accelerate new workloads (Yield) Tele and SAM engines (O.E.) Reduce cost of reporting to free resources for business development

Microsoft | EMEA Channel Partner Conference 2014 Services Channel Incentives eAgreements in SPLA – Simplifying your life & Growing your business What we heard Manual Agreement submission inefficient. Demand for eAgreements What we delivered eAgreements launched Dec 2013 Automated electronic creation, assembly, signature, and execution of Volume Licensing agreements. What we still need to do Work together to increase adoption rates Work together to take advantage of increased Ops efficiency Continue to develop functionality to include SPLA Amendments IMPACT -Confusion -Frustration -Time Consuming IMPACT -Reduction in input errors -Reduction in cycle times -Increased time for sales activities. IMPACT -Exponential growth for our Hosting business… TOGETHER! Fast Fact: eAgreements together with our Global Validation Matrix redefined, has SPLA valids % consistently at 97% since Nov2013

Microsoft | EMEA Channel Partner Conference 2014 Services Channel Incentives SPLA Reseller Incentives FY13 Manual ed Statements Non-standard Program Rules FY14 SPLA Reseller Program on boarded to CHIP Standardized Global Program FY15 (and beyond….) Further enhancement of Incentive structure to enable Reach and Yield growth opportunity Targeting of Accelerators to leverage growth product suites IMPACT -Sub-optimal Partner experience IMPACT -Partner Earnings Dashboard -Globally consistent Program Rules IMPACT -Exponential growth for our Hosting business… TOGETHER! Fast Fact: Over 98% of SPLA Reseller incentive queries received by EOC to date in FY14, have been resolved in <72 hours