1. Webinar: Microsoft Office 365
Mark Bartrick, Senior Analyst
May 17, Call in at 10:55 a.m. Eastern time

2. Hey! You! Get on to my cloud!

3. Agenda Sympathy for the devil Start me up You got the silver
Microsoft succumbs to market forces
Start me up
What is Office 365?
You got the silver
What does it cost?
I can’t get no satisfaction
Is it right for your organization?
Under my thumb
Contracts, paperwork, and the new Enterprise Agreement
Tumbling dice
Office 365 versus Google Apps for Business

4. Agenda Sympathy for the devil Start me up You got the silver
Microsoft succumbs to market forces
Start me up
What is Office 365?
You got the silver
What does it cost?
I can’t get no satisfaction
Is it right for your organization?
Under my thumb
Contracts, paperwork, and the new Enterprise Agreement
Tumbling dice
Office 365 versus Google Apps for Business

5. Market forces and user demand
RISE OF THE CLOUD
Consumerization of IT
Infrastructure cost and complexity
Consumption billing; pay as you use
Dynamic workforce

6. Office 365: launched June 2011, prices cut by 20% in March 2012!
What does that tell you?!
Microsoft says ‘growing economies of skill’ means they can pass savings to clients.
We think:
Office 365 sales are slower than Microsoft had hoped.
Competitive products are gaining ground.
Google Enterprise Edition
Open Office
IBM Lotus Symphony

7. Agenda Sympathy for the devil Start me up You got the silver
Microsoft succumbs to market forces
Start me up
What is Office 365?
You got the silver
What does it cost?
I can’t get no satisfaction
Is it right for your organization?
Under my thumb
Contracts, paperwork, and the new Enterprise Agreement
Tumbling dice
Office 365 versus Google Apps for Business

8. Microsoft Office 365 is . . .
Source: Microsoft

9. Office 365 is subscription-only
Subscription service (you are not buying a perpetual license)
“User” license (not device)
For instance, access on any device you want
Cell phone, desktop, laptop, friends house, etc.

10. Microsoft Office 365 for enterprise
User types
Kiosk worker
Enterprise information worker
Lower cost offering to users that do not have messaging and collaboration capabilities today
Rich feature offering that meets a users full messaging and collaboration needs
User segment offers: Plan K Family
500 MB mailbox
Full Outlook Web Access only
POP support
Messaging, calendar, contacts
Antivirus/antispam
SharePoint Access (0MB storage)
Site search capabilities
Office Web Apps
User segment offers: Plan E Family
25GB mailbox
250MB SharePoint storage
Client connectivity
Mobility
Lync capabilities
Exchange & SharePoint Enterprise
Office Professional Plus
On-premises access rights
Key
differences
Source: Microsoft

11. Kiosk workers — Plan K Family
Office 365 K1:
Addresses most kiosk worker scenarios, where customers want to provide light and access to company portal.
Provides view only capabilities of the Office Web Apps.
Office 365 K2
Addresses small population of kiosk workers that require information access and simple data input and editing.
Office 365 K1
Includes:
Exchange Kiosk
SharePoint Kiosk
Office Web Apps
Not offered standalone
SharePoint Online Kiosk
Exchange Online Kiosk
Office 365 K2

12. Enterprise users - Plan E Family
Suites
Components
Office 365 E1
Includes:
Exchange Plan 1
SharePoint Plan 1
Lync Plan 2
Office Web Apps
Conferencing
IM and presence
Collaboration portal
, calendar, AV/AS
Office Professional Plus
Voic and archive
Forms, Access/ Excel/Visio Services
Office 365 E3
Exchange Plan 2
SharePoint Plan 2
Office ProPlus
Office 365 E4
Lync Plus
Voice
Office 365 E2

13. Agenda Sympathy for the devil Start me up You got the silver
Microsoft succumbs to market forces
Start me up
What is Office 365?
You got the silver
What does it cost?
I can’t get no satisfaction
Is it right for your organization?
Under my thumb
Contracts, paperwork, and the new Enterprise Agreement
Tumbling dice
Office 365 versus Google Apps for Business

14. Office 365 is priced by role
Plan E4
$22
Plan E1 $8
Plan E2
$14
Enterprise information worker
Plan E3
$20
Plan K1 $4
Plan K2
Office Web Apps
SharePoint online
kiosk
Exchange online
Kiosk worker
Office Web Apps
, calendar
Collaboration portal
Conferencing
IM and presence
Forms, Access,
Excel, & Visio Services
Voic and archive
Voice

15. Microsoft’s price tiers reduce its need to offer discretionary discounts
Enterprise Agreement (EA) pricing applies the same volume discount Levels A to D:
Level A: 250 to 2,399
Level B: 2,400 to 5,999
Level C: 6,000 to 14,999
Level D: 15,000+
Microsoft Online Subscription Agreement (MOSA) prices its volume licensing programs via tiers 1 to 5:
Level 1: 0 to 249
Level 2: 250 to 2,399
Level 3: 2,400 to 5,999
Level 4: 6,000 to 14,999
Level 5: 15,000+

16. Don’t just think about licensing costs
Total cost of ownership
Power and air
Backup
Included
Server hardware
Newest version
Operations staff

17. Agenda Sympathy for the devil Start me up You got the silver
Microsoft succumbs to market forces
Start me up
What is Office 365?
You got the silver
What does it cost?
I can’t get no satisfaction
Is it right for your organization?
Under my thumb
Contracts, paperwork, and the new Enterprise Agreement
Tumbling dice
Office 365 versus Google Apps for Business

18. Is it right for your organization?
Evaluate the pros/cons of cloud versus on-premises.
Cost comparison
Licensing
Other costs/savings:
Cloud reduces management/support/infrastructure costs.
Ask your MS account manager for access to their TCO tool.
But you should also factor in your own transition costs and effort
Due diligence
Security
Availability
Performance
Do a competitive comparison.
Try before you buy.

19. Will you have issues with migration and transition?
Assessing your readiness to transition:
Download Microsoft tools.
Office 365 Deployment Readiness Tool
Assessment and Planning Toolkit
Test for products compatibility.
Minimum requirements: IE 7, Windows XP SP3, Vista SP2, Windows 7
Can’t migrate Office 2003 or IE6: You will need to upgrade on-premises first, then transition to cloud.

20. Transition to the cloud
On-premises
In the cloud E4 E3 E2 K2 K1
Office Pro Plus
Windows OS
CAL Suite E1
Lync
Exchange
SharePoint
Forefront Endpoint Protection
System Cnt Config Mgr ML
Transition
Windows CAL

21. Transition to the cloud
On-premises
In the cloud E3
Office Pro Plus
Windows OS
CORE CAL BRIDGE
Lync CAL
Exchange CAL
SharePoint CAL
Forefront Endpoint Protection
Windows CAL
System Cnt Config Mgr ML

22. 500 Pro Desktop SA (1000 Windows)
500 users move to e3 midyear 2
1000 Professional Desktop SA
At signing
1st anniversary
2nd anniversary
Renewal 3 1
500 E3
Transition grant 2 4
500 E3/CORE CAL Bridge
500 Pro Desktop SA (1000 Windows)
1 — Customer has renewed a 1,000-device Professional Desktop Enterprise Agreement
2 — Year 1 anniversary — nothing’s changed
3 — Year 2 midyear, move 500 users to E3 (no incremental cost)
4 — Year 2 anniversary
* Report true up
* E3 and CORE CAL Bridge invoice for next 12 months 500 units
* Pro Desktop invoices for next 12 months 500 units (1000 Windows)
* Desktop Pro count gets reduced by 500 devices that transitioned

23. Agenda Sympathy for the devil Start me up You got the silver
Microsoft succumbs to market forces
Start me up
What is Office 365?
You got the silver
What does it cost?
I can’t get no satisfaction
Is it right for your organization?
Under my thumb
Contracts, paperwork, and the new Enterprise Agreement
Tumbling dice
Office 365 versus Google Apps for Business

24. Two ways to buy 365 Microsoft Enterprise Agreement (EA)
Microsoft Online Subscription Agreement (MOSA)
Best overall pricing and on-premises license discounts
Sales and support through Microsoft and partner 1:1 team and systems
Single companywide agreement for cloud services, on-premises, enrollments, and additional products
Integrated invoicing
Requires 250 or more users or devices
Three-year agreement with flexible payment options
Standard, non-negotiable monthly subscription price with monthly payments via credit card or invoice
Purchase transaction completed online
Phone and online support (varies by selected service plan)
Suitable for one or more users
Subscription term length varies depending upon cloud services chosen (month-to-month or one year)

25. Updated EA for online services
Source: Microsoft

26. Do you need to change your paperwork?
Question 1: What version of the Master Business Services Agreement do I have?
Pre-2010
Online services terms and conditions addendum required
Question 2: What version of the Enterprise Agreement do you have?
2011
2011 product selection form required
Pre-2011
9B3 or 9B4 amendment required

27. How to negotiate Microsoft’s Office 365 paperwork
Negotiate it like a hosting contract — because that’s what it is!
Look for guarantees and SLAs:
Performance
Availability
Scalability
Security
Beware of legal restrictions that may affect your business or your industry.
Protection: what’s in the contract if it all goes wrong?

28. Agenda Sympathy for the devil Start me up You got the silver
Microsoft succumbs to market forces
Start me up
What is Office 365?
You got the silver
What does it cost?
I can’t get no satisfaction
Is it right for your organization?
Under my thumb
Contracts, paperwork, and the new Enterprise Agreement
Tumbling dice
Office 365 versus Google Apps for Business

29. Microsoft Office 365 versus Google Apps for Business
Google Apps launched 2006
, calendars, word processor, presentation, document collaboration, integrated chat and video
$5 per month (or free for educational establishments and charities)
4 million business users
Less rich in feature/functions than Office 365
Microsoft Office 365 launched 2011
, calendars, Word, Excel, PowerPoint, SharePoint & Lync
$8 to $20 per month
???? users so far (Microsoft is not willing to reveal the number)
Familiar look and feel and features makes transition easier for users.

30. Recommendations

31. What can you do now? If you’re just starting out . . .
If you’re further along . . .
Consider all, or some (hybrid), or none.
Try it for a subset of users (try before you buy).
Compare 365 versus competition.
Features/functions
Performance/availability/security
Price
Monitor outages and issues against your agreed SLAs.
Have a fallback plan.
Demand that any Office 365 price drops be immediately reflected in your costs.

32. Q&A

33. Thank you Mark Bartrick +44 207 323 7656 mbartrick@forrester.com

34. Recommended Forrester research
Upcoming Forrester report, “Microsoft Office 365: What You Need To Know”