1. SMSE Licensing Change: Customer Transition Overview Grant / Promo Customer Scenario Impact of licensing changes on scenarioGrant / Promo Terms Net Benefit to Customers Grant for existing licenses Existing customer with existing SMSE licenses as of July 1, 2009. Customers that deploy new versions of the SMSE component products will only have the right to manage up to 4 OSEs + the Parent OSE. For each SMSE license held as of July 1 st, 2009 customers will receive a set of 4 granted SMSD licenses in place of their existing SMSE license. The set of 4 granted SMSD licenses must be kept together and assigned to the same server device, although they may be reassigned as a set to another server device per normal VL rules. The ‘System Center Server Management Suite Enterprise (SMSE) License Grant’ can be found on page 123 (note 85) of the July 2009 Product list located here.here The grant to SMSD ensures customers continue to have unlimited virtualization rights. Promo for new SMSD licenses Any new or existing customer purchasing SMSD licenses as of July 1, 2009. Customers licensing SMSD on servers with 4 or more processors will experience a price increase vs. the original Per Device SMSE price. For the period July 1, 2009 through February 28, 2010 customers will be able to license SMSD servers with 4 or more processors at an effective 50% discount by receiving one complimentary SMSD for each SMSD they purchase. The ‘System Center Server Management Suite Datacenter (SMSD) Promo Grant’ can be found on page 33 of the July 2009 Product list located here.here Customers may license servers with 4 processors at the original SMSE price for a limited period of time, and get a discount for more than 4 processors

2. SMSE Licensing Change: Customer Transition Detail Grant / Promo Customer Scenario Impact of licensing changes on scenarioGrant / Promo Terms Net Benefit to Customers Grant for existing licenses Existing customer with existing SMSE licenses as of July 1, 2009. Customers that deploy new versions of the SMSE component products will only have the right to manage up to 4 OSEs + the Parent OSE. Additional Information: Use rights for the SMSE component products will be updated as they release R2 or full versions to indicate SMSE includes the right to 4 OSEs and SMSD includes the right to unlimited OSEs. For example, SCOM 2007 R2 released in July 2009. Any customer who purchased the original SMSE with unlimited virtualization rights and deploys SCOM 2007 R2 would then be limited to 4 OSEs. EA customers are not affected by the changes immediately as one of the EA program benefits is the ability to purchase products with use rights, and at prices, in effect when the EA was signed. Upon renewal of the EA new use rights and pricing become effective. For each SMSE license held as of July 1 st, 2009 customers will receive a set of 4 granted SMSD licenses in place of their existing SMSE license. The set of 4 granted SMSD licenses must be kept together and assigned to the same server device, although they may be reassigned as a set to another server device per normal VL rules. Additional Information: To further mitigate the impact to existing customers we put in place two provisions wit the SMSE Grant to allow customers to keep their SA costs unchanged from their original SMSE purchase through July 2011 and allow them to license incremental servers via the grant: Customers receiving the grant whose agreements are up for renewal before July 2011 may renew 2 of the SMSDs in the granted set of 4 and maintain rights to all 4 SMSDs in the set of 4 granted SMSDs. This allows customers to keep their SA costs unchanged vs. their original SMSE purchase. The grant specifies that the ‘set of 4 SMSDs’ must be kept together and assigned to the same server device, preventing them from licensing incremental servers via the grant if they have servers with fewer than 4 processors. Customers may remove this restriction by purchasing SA for 2 of the 4 granted SMSD licenses either at, or before, renewal. The ‘System Center Server Management Suite Enterprise (SMSE) License Grant’ can be found on page 123 (note 85) of the July 2009 Product list located here.here The grant to SMSD ensures customers continue to have unlimited virtualization rights. Promo for new SMSD licenses Any new or existing customer purchasing SMSD licenses as of July 1, 2009. Customers licensing SMSD on servers with 4 or more processors will experience a price increase vs. the original Per Device SMSE price. Additional Information: The SMSD Per Proc license is priced at ½ of the original SMSE Per Device Price. Therefore, 2- proc servers licensed with SMSD will cost the same as the original SMSE, 4-proc servers licensed with SMSD will cost twice as much as the original SMSE. For the period July 1, 2009 through February 28, 2010 customers will be able to license SMSD on servers with 4 or more processors at an effective 50% discount by receiving one complimentary SMSD for each SMSD they purchase. Additional Information: Customers purchasing licenses via the SMSD promotion whose agreements are up for renewal before July 2011 may renew the paid SMSD and retain rights to the complimentary SMSD allowing customers to keep their SA costs unchanged vs. the original SMSE pricing. The ‘System Center Server Management Suite Datacenter (SMSD) Promo Grant’ can be found on page 33 of the July 2009 Product list located here.here Customers may license SMSD on servers with 4 processors at the original SMSE price for a limited period of time, and get a discount on servers with more than 4 processors

3. FAQ: SMSD 2:1 Promo Grant Through February 2010 Q. What is the promo grant offer? A.For each SMSD purchased from July 1 st, 2009 through February 28 th, 2010 for servers with 4 or more processors the customer will receive one SMSD at no charge. The granted SMSD license includes SA coverage equal to the purchased SMSD license (i.e. if the paid SMSD license is L&SA for 3 years the granted SMSD will also be L&SA for 3 years). Q. Why is this promotion being offered? A.This promotion is designed to mitigate the CPE impact of the SMSD price increase on servers with 4 or more processors to ensure customers make the right license selection (SMSE or SMSD) that is consistent with their long-term license needs. Q. How do I transact the promotion? What do customers need to do to receive the promo? A.This is not a standard world-wide promotion with promotion sku’s. The 2:1 promo grant is being handled via the price list. Customers purchasing the SMSD through the promo for qualified servers (i.e. those with 4 or more processors) will receive a grant of 1 free SMSD for each paid SMSD. The grant will not be tracked in the system but will be documented on the product list which will give the customer rights to renew the grated licenses upon renewal. For a complete SMSE 4:1 Grant and SMSD Promotion FAQ please visit http://www.microsoft.com/systemcenter/en/us/management-suites-faq.aspx. http://www.microsoft.com/systemcenter/en/us/management-suites-faq.aspx