1. Webinar Office 365 Should Trigger A Rethink Of Your Microsoft Licensing Strategy
Duncan Jones, Vice President, Principal Analyst
April 3, Call in at 10:55 a.m. Eastern time.

2. Microsoft’s transformation gives you new opportunities to reduce software costs.

3. Agenda
Understanding Microsoft
The changing value of Software Assurance
Office 365 migration options
Summary recommendations

4. Agenda
Understanding Microsoft
The changing value of Software Assurance
Office 365 migration options
Summary recommendations

5. Microsoft’s challenges
Microsoft needs to keep new revenues flowing in.
Its main products are fully mature.
How can it keep persuading customers to purchase a new version of Office every three or four years?
Many customers skip product releases.
SA’s price assumes triennial upgrades.
It faces increasing competition from non- Windows devices and from cloud providers.

6. Microsoft uses discounts to encourage you to buy all its products
Office
MUI
365
Sharepoint
SCCM
VDA
Exchange
Lync
Windows Server $

7. Agenda
Understanding Microsoft
The changing value of Software Assurance
Office 365 migration options
Summary recommendations

8. Office 2013’s biggest competitor is Office 2010
Source: Forrester Desktop Trends Survey 2013

9. Customers without SA are less likely to upgrade
Source: Forrester Desktop Trends Survey 2013

10. Microsoft’s response: Services
Office 365 hosted and file storage
Office 365 ProPlus per user subscription
Windows Enterprise version
Virtual desktop access
Companion subscription license
MDOP
Azure

11. SA is now about use rights and premium features
Office roaming use rights
VDI on RT devices
Unlimited virtualization of SQL server
Source: Forrester estimates

12. Companion device licensing
Corporate- owned device
Employee- owned device
Device type ↓
Companion PCs SA
(no change)
Companion Windows RT tablets
Windows RT Companion VDA Rights (free)
Windows CSL (four devices)
Companion non-x86 devices (iPad, Android, etc.)
Source: Microsoft

13. Agenda
Understanding Microsoft
The changing value of Software Assurance
Office 365 migration options
Summary recommendations

14. Microsoft will push you to Office 365
Source: July 12, 2012, “How To Negotiate A Better Microsoft Office 365 Deal” Forrester report

15. Per-device licensing is an obsolete model
Office 365 is a per-user subscription

16. There are three ways to buy Office
Select+, no SA EA
Office 365
License type
Perpetual
Perpetual + SA
Subscription
License metric
Per device
Per user
Deployment
Local
Additional company devices
Each device needs a license
Local install on up to five devices
Roaming use
Streamed is allowed by RUR
Streamed or temporary install
New versions No
Triennial
More frequent
Downgrade rights
Yes
Office for iPad

17. *Office 365 Exclusive Value
EA Duration
Microsoft Office365
5/30/2018
The Office 365 Cadence Continuous Feature Innovation. Exclusive Value to Cloud.
Office 365
On-Prem
Office 2010
Lync Mobile Clients
Multi-Mailbox Search
OneDrive for Business Apps
Office Online Refresh
Office 2013
iOS and Android Mobile Office Apps*
50 GB Mailbox
Office Online Co-authoring
PowerMap for Excel
Office for iPad*
2010
2011
2012
2013
2014
Futures Roadmap
*Office 365 Exclusive Value
2015
Source: Microsoft
© 2013 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

18. Prepare for transition or take a vacation
Move to O365
EA renewal

19. Agenda
Understanding Microsoft
The changing value of Software Assurance
Office 365 migration options
Summary recommendations

20. Use Forrester’s strategic software sourcing model
Optimized commercial approach
Price, flexibility, risk
Supplier tiering
Do we want to buy more, or reduce our dependence?
Category strategies
Sole or multisource?
Standardization versus autonomy?
Supplier’s portfolio
Opportunities and threats
Commitment versus uncertainty
Source: Forrester’s Strategic Software Sourcing Playbook

21. Next steps
Educate stakeholders about the licensing implications of various deployment options.
Link the EA discussion with later product choices.
E.g., databases, server management.
Either secure a cost effective migration path to Office 365, or take a payment vacation

22. We use research-based knowledge to help you get a better deal
Structured best-practice process
Vendors’ policies
Strategic insight
Latest deals
Decision support

23. Selected Forrester research
April 8, 2013, “Evaluating Microsoft’s Software Assurance”
January 7, 2013, “Product Spotlight: Microsoft System Center Configuration Manager 2012”
August 29, 2012, “Microsoft SQL Server 2012 Licensing Changes — What You Need To Know”
August 24, 2012, “The Future Of Microsoft .NET: New Options, New Choices, New Risks”
July 12, 2012, “How To Negotiate A Better Microsoft Office Deal”
November 29, 2011, “Microsoft’s Shrinking Window For Tablets”
May 26, 2011, “Top Barriers To Replacing Microsoft Office”
May 24, 2011, “Consider These Five Criteria When Choosing A Microsoft Volume Licensing Program”

24. Duncan Jones
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