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 suites to grow its reach
Office
MUI
VDA
SharePoint $
SCCM
Windows Server
Exchange
Lync

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. 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

16. Upgrade rights are key to SA’s value
EA duration
O365
2013 upgrade starts?
Next upgrade?
2017
2012
2013
2015
2016
2014
2018
Wave 15
Wave 16
Wave 17
SQL Server 2012
2012 R2
Windows 8
Before Office 365, assessment was:
Will Microsoft release the next version within three years?
Can I wait until I know I want it before I buy it?
Can I skip a release?

17. Value of upgrade rights depends on the next but one upgrade
Payment holiday
O365
2013 upgrade starts?
2012
2013
2015
2017
2016
2014
2018
Wave 15
Wave 16
Wave 17
SQL Server 2012
2012 R2
Windows 8
Before Office 365, assessment was:
Will Microsoft release the next version within three years?
Can I wait until I know I want it before I buy it?
Can I skip a release?

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

19. 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

20. 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.
Secure a cost-effective migration path to Office

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

22. 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”

23. Duncan Jones
Blog: