1. Online Service Advisor – New Fee Calculation

2. Agenda Agenda  Overview  Online Services Advisor (OSA) Fee Definition  Program Rules:  MPN & MOSPA  90 days Rule  Public Sector Program  Fee Calculation  POR Change  Cross Region Partner Fee Payment  Fee calculation scenarios  FY13 Partner Fee Statement  Fee Payment Service level agreement  Online Service Advisor Attach Form(EA)  Resources

3. Join Microsoft Cloud Partner Program – Be a certified Online Service Advisor (Partner of Record)

4. http://www.microsoftcloudpartner.com/  Enroll as MPN member  Watch online training  Accept the Microsoft Online Service Partner Agreement  Take & Pass Assessment  Enroll as Cloud Essential Partner – enjoy benefit

5. Services Path To Revenue Customers that buy subscription software are more inclined to buy subscription partner services Resell/Host Managed Services Integrate Customize Migration and Integration Project Based Revenue Business Process consulting, SharePoint workflow design, Intranet customization Repeat Revenue Resell/HostResell/Host Transactional Revenue Desktop Management and Optimization, end user support Recurrent Revenue Consult 5 Services Path To Revenue

6. Online See Service Advisor Model – Partner of Record (POR) Online Service Advisor Model – Partner of Record (POR) Migration and Integration Project Based Revenue Business Consulting and Customization Repeat Revenue Microsoft Partner of Record Fees Transactional Revenue Managed Services Recurrent Revenue Billing FeesFeesSaleSale 18% year one 12% Net-add 6% Residual 12% Net-add 6% Residual Microsoft PartnerCustomer

7. Program Rules – MPN and MOSPA Program Rules – MPN and MOSPA Online Services Advisor (POR):  Must be an active member of MPN (Microsoft Partner Network) and  Have a valid signed MOSPA (Microsoft Online Services Partner Agreement)  Certified Software Advisor (CRM Online) must sign MOSPA agreement in order to be eligible for OSA Fee  Non Certified Software Advisor (CRM Online) are not eligible to collect OSA Fee If Partner’s MOSPA expires, eligibility will be align to the following renewal schedule: TimelineAgreement StatusFee Eligibility Through MOSPA expiration date Active, renewal requiredPartner is eligible for incentive fees 0 – 30 calendar days after MOSPA expiration date Expired with grace periodPartner is eligible for incentive fees 31 – 60 calendar days after MOSPA expiration date ExpiredPartner is no longer eligible for incentive fees, however fees continue to accrue and are eligible for payment upon MOSPA renewal 61+ calendar days after MOSPA expiration date ExpiredPartner is no longer eligible for incentive fees, and any accrued fees are irrevocably forfeited MOSPA expires on the same date as MPN agreement. MOSPA does not renew automatically when Partner renews the MPN membership. Partner must manually renewal their MOSPA via Partner Membership Center.

8. Definition – Sell Fee vs Manage Fee (POR) Definition – Sell Fee vs Manage Fee (POR)  Sell Fee (New Customer Fee/Hunter Fee) – 12%  To compensate Partner of Record (POR) for activities surrounding sales activities.  12% fees recognized and accrued to the Partner of Record (POR) at time Customer is invoiced by Microsoft.  Partner will received the full 12% fee applicable to the first year, regardless of whether the Customer elects to change POR later in the year.  Value of seats will be based on the price list value of the seats sold in the Customer Country  Manage Fee (Residual Fee/Farmer) – 6%  To compensate Partner of Record (POR) for activities surrounding maintenance and management of on-going Partner/Customer relationship.  6% fees paid to Partner for as long as:  The Customer remains active  Partner is the designated POR  Paid for the life of subscription to current POR  POR can be changed by Customer during life of subscription  Value of seats will be based on the price list value of the seats sold in the Customer Country

9. Online Services Advisor (OSA) Fee Overview Online Services Advisor (OSA) Fee Overview To incentivize Microsoft Cloud Partners (Online Services Advisors):  Pay 12% Sell Fee up front for projected 1 st year invoiced amount on all new subscriptions and net new seats adds.  Maximum seat count policy  Paid base on partner currency  Change in Sell fee and Manage Fee payment frequency  Allow Cross-Region payment – POR selling across regions  Cross-Region is where Partner location and Customer location are different (location = ROC)  New Fee Statement  Removal of 150 seat sold threshold The following services sold via MOSP (Direct Web) Program will be impacted:  Office365  Windows Intune The following services sold via VL will be impacted:  CRM Online  BPOS (customer that has not transition over to O365)

10. Program Rules – 90 day Rule Program Rules – 90 day Rule  Partner must be designated as Partner of Record (POR) within 90 days of subscription Start Date or Net Seat Add Date to be eligible for the following fees:  12% sell fee accrued and paid retroactive to the subscription start date or net seat add date  6% manage fee accrued and paid retroactive to the subscription start date or net seat add date  Partner designated as Partner of Record (POR) after 90 days of subscription Start Date:  No 12% sell fees are accrued or calculated for those seats  6% manage fees are calculated for those seats starting from the POR association date, but not retroactively  Public Sector  Public Sector entity includes Education, State or Local Government agency.  Partner are eligible to earn Online Services Advisor Fee upon approval by local subsidiary  For program details, please contact your local Partner Account Manager Eligibility for incentives for a given subscription ends if the subscription is cancelled, terminated or the Partner of Record (POR) no longer holds an active MPN membership or current signed MOSPA.

11. Sell Fee (12%) & Manage Fee (6%) Sell Fee (12%) & Manage Fee (6%) Introducing new Maximum Seat Count Policy for Sell Fee (12%):  Based on the latest maximum seats sold.  Maximum seat sold count is calculated by individual customer and SKU (over the customer subscription lifecycle (not by partner)  If seats are removed by a customer, no new Sell Fee will be paid until customer has exceeded their previous maximum seat count.  A snapshot of seat counts will be taken on the 25 th of each month  Maximum seat count persists for the life of the customer, across all countries in which that customer resides  The calculation applies to all seats purchase by customer regardless of whether those previously sold seats qualify for Sell Fee (eg, due to POR association > 90 days)  Paid for 1 st year anticipated invoice amount upfront based on price list value  6% Manage Fee calculation:  Based on Customer invoiced amount for all seats sold  If customer change POR, the manage fee will be paid to the new POR for the entire month where the change occurred.

12. Program Rules – POR Change Calculation Program Rules – POR Change Calculation Customer reserves the right to change POR any time within the subscription contract term via the Microsoft Online Portal (MOP)  When there is a change of POR:  12% incentive fees will be paid to the new POR for any new seats added following the Maximum seat count policy  The new POR will be paid the 6% for the entire month in which the POR changed occurred.

13. OSA Fee Payment Frequency OSA Fee Payment Frequency OSA (Sell Fee + Manage Fee) will be receiving their OSA fee monthy if the OSA fee earned exceed the default threshold set for the country. Should both the Sell Fee & Manage fee falls below the default threshold, fees will be accumulated until fee meets the threshold set above, and be paid the next month.

14. Program Rules – Cross-Region Partner Fee Payment Program Rules – Cross-Region Partner Fee Payment Online Services Advisor can collect Advisor Fee for Customers across regions  Example: Customer locate in US, POR located in Japan.  12%/6% fees will be paid to the POR located in Japan from APOC  POR will be paid in the Partner’s local currency. In the example above, the POR will be paid is Yen.  The same POR fee calculation rule will apply  Customer will enter the POR MPN ID in the Microsoft Online Portal (MOP)

15. Fee Calculation – Use Case Example

16. POR Compensation Scenarios POR Compensation Scenarios  Scenario 1 – Same customer, purchase 100 seats of SKU A  Sell Fee $1,440 = 100 seats * $10 * 12month * 12%  Manage Fee $60 = 100 seats * $10 * 6%  POR associated on subscription start date  No change in seats purchase  Full year 12% payment calculated at end of month  6% fee calculated at end of month  Payment threshold met > $100 paid monthly

17. POR Compensation Scenarios POR Compensation Scenarios  Scenario 2 – Same customer, purchase 100 seats of SKU A, add 50 seats of SKU A  Sell Fee $1,440 = 100 seats * $10 * 12months * 12%  Sell Fee $720 = 50 seats * $10 * 12months * 12%  POR associated on subscription start date, no change in POR association  Full year 12% payment calculated at end of month  6% fee calculated at end of month  Payment threshold met > $100 paid monthly

18. POR Compensation Scenarios POR Compensation Scenarios  Scenario 3 – Same customer, purchase 200 seats of SKU A - cancel 50 seats of SKU A – add 30 seats of SKU A  Max seat count 200 seats (historical max seat, by SKU)  POR associated on subscription start date, no change in POR association  Full year 12% payment calculated at end of month  6% fee calculated at end of month  Payment threshold met > $100 paid monthly

19. POR Compensation Scenarios POR Compensation Scenarios  Scenario 4 – Same customer,  purchase 100 seats of SKU A - cancel 50 seats of SKU A – add 30 seats of SKU A – add 40 seats of SKU A  Sell Fee $1440 = 100 seats * $10 *12months * 12%  Sell Fee $288 = 20 seats * $10 * 12months *12%  POR associated on subscription start date, no change in POR association

20. POR Compensation Scenarios POR Compensation Scenarios  Scenario 5 – Same customer, purchase 100 seats of SKU A - cancel 50 seats of SKU A – add 70 seats of SKU A (change POR)  Max seat count 120 seats (historical max seat, by SKU)  POR associated on subscription start date, change POR in month 8  New POR earn Sell fee for net new seat add – 20 seats  Sell Fee $288 = 20 seats * $10 *12months *12%  6% fee move from POR A to POR B for total seats sold to customer  Payment threshold met > $100 paid monthly

21. POR Compensation Scenarios POR Compensation Scenarios  Scenario 6 – Same customer, purchase 100 seats of SKU A  Max seat count 100 seats  POR associated after 90 days from subscription start date  No Sell fee (12%) will be paid  Manage fee 6% fee will be calculated on POR association date  Payment of manage fee is not retroactive  Payment threshold met > $100 paid monthly

22. Fee Payment Process – Direct/EA

23. Fee Payment - Services Level Agreement Fee Statement 3 weeks after month close – fee statement being generated Statement email Fee statement will be emailed to Primary Key Contact (as in MPN) Dispute Any dispute of fee calculation to be raised within 5 business day from receiving of fee statement To raise a dispute, click the following link: https://mocp.microsoftonline.com/Site/Support.aspx https://mocp.microsoftonline.com/Site/Support.aspx Change of payment method Any change of payment method, example from wire transfer to cheque, raise within 5 business day from receiving of fee statement Changes of bank information to raise within 5 business day from receiving of fee statement Fee received On the 10 th day after receiving fee statement, Partner will receive fee in his bank account(if there is no dispute or change in banking information

24. Partner Payment Profile Documentation To ensure timely release of partner earned fees, Microsoft requires the following information to be complete, current and accurate before fees can be released to Partners.  Bank Details:  Default method of payment for fees is a wire transfer. To avoid any delay in the release of earned fees, partners need to provide valid bank details. You may find Bank Details form at > along with the instructions on how/where to submit the form.  Tax Documentation (US, Latam and Canada based partners)  Collection of the appropriate tax documentation is a legal requirement imposed by the U.S. Internal Revenue Service (IRS) and must be complete before any fees can be released to a partner. Without these documents, partners will not be able to receive fee payments.  US Partners  W9 Form - Here is a guide to completing the information: http://www.irs.gov/pub/irs- pdf/iw9.pdfhttp://www.irs.gov/pub/irs- pdf/iw9.pdf  Latam and Canada Partners  W8 Substitution - Is a non-US vendor statement which acknowledges that all services provided will be performed outside of the US  OR/  W8-BEN - Is filed with the Internal Revenue Service (IRS) by foreign persons who are receiving "non service payments" and wish to claim exemption from tax because they are eligible for a tax treaty with their own country.  Here is a guide to completing the information: http://www.irs.gov/instructions/iw8ben/index.html, http://www.irs.gov/pub/irs- pdf/iw8ben.pdf http://www.irs.gov/instructions/iw8ben/index.htmlhttp://www.irs.gov/pub/irs- pdf/iw8ben.pdf

25. How Do Partner Claim the Fee This email will be send to Partner MPN contact Partner will receive email from Microsoft notify the fee earned attached with the fee statement The preferred method of payment will remain in MS database until partner request to change

26. FY13 Partner Fee Statement Sample - MOSP

27. FY13 Partner Fee Statement – Terminology FY13 Partner Fee Statement – Terminology

28. EA Customer – Online Services Advisor Attach Form:

29. EA Partner – Online Service Advisor Attach Form EA Partner – Online Service Advisor Attach Form Customer signature is required

30. References and Links References and Links  Microsoft Partner Network  https://partner.microsoft.com/global/productssolutions/productsonlineservices https://partner.microsoft.com/global/productssolutions/productsonlineservices  Microsoft Cloud Partner Program  http://www.microsoftcloudpartner.com http://www.microsoftcloudpartner.com  Online Services Advisor Form to be download from:  www.quickonlineservices.com or www.quickonlineservices.com  https://www.explore.ms/Navigation.aspx?Start=Programs.Enterprise.Forms https://www.explore.ms/Navigation.aspx?Start=Programs.Enterprise.Forms  Get Support  https://mocp-support.custhelp.com/cgi- bin/mocp_support.cfg/php/enduser/ask.php?p_sid=xddZoeFk https://mocp-support.custhelp.com/cgi- bin/mocp_support.cfg/php/enduser/ask.php?p_sid=xddZoeFk