1. Enabling & Rewarding Your Cloud Transformation
4/17/2017
Enabling & Rewarding Your Cloud Transformation
September program update
© 2014 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.

2. Cloud Partners are Capitalizing
4/17/2017
Cloud Partners are Capitalizing
Partners generating more than 50% of their revenue from the Cloud have:
1.6X
the recurring revenue as a portion of total revenue vs. other partners
1.5X
1.3X
At the request of Microsoft, the IDC interviewed and surveyed partners who are leading the cloud industry. They’ve made investments. In some cases, they’ve shifted their business models and in other cases blended the old and new masterfully. They are good business people and have a track record of success.
It’s important to note that these partners still make up the minority of our partner ecosystem and as such are paving the way. Additionally, these partners are winning big deals from incumbent partners, they are succeeding, and they are more positioned for the future than most partners out there.
These partners make 1.6X more gross profit vs. non-cloud oriented partners. Roughly around 20% of the partners were in this group.
They gain 1.3X more revenue per employee.
They experience 2.4X faster growth (This stat comes from survey of over 500 MSFT partners of all business models)
So was it just cloud that made the difference? Did they just start selling Office 365 and all of sudden experience phenomenal growth? No.
What makes more sense is that the leading companies, the companies that were already successful, took on cloud first and are doing quite well with it.
Also what makes sense is that these partners are not delivering, in most cases, just pure cloud solutions. Much of the time, it is a mix and hybrid solution.
the gross profit % vs. their less cloud active peers
higher new customer ratio vs. other partners
*2014 IDC study commissioned by Microsoft
© 2014 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.

3. The Cloud Is Very Much Today
4/17/2017
The Cloud Is Very Much Today
And picking up speed
Public IT cloud services spending reached $47.4 billion in 2013, and will grow five times faster than the IT industry as a whole
Worldwide public IT Cloud
Services Revenue in 2017
$108B
1 % 1% 4% 5%
21%
44%
14%
Emerging markets will grow 1.8X faster than developed markets and by 2017 will account for 21.3% of the public cloud opportunity
29% 2%
*2014 IDC study commissioned by Microsoft
© 2014 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.

4. Seize the Market Momentum with Our Cloud
4/17/2017
Seize the Market Momentum with Our Cloud
60%
Fortune 500 companies using Office 365
Microsoft’s
Fastest growing product ever
57%+ Fortune 500 using Microsoft Azure
1,000 customers are signing up for Azure every day
Source: Microsoft
© 2014 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.

5. Offering Our Customers the Power of Choice
4/17/2017
Offering Our Customers the Power of Choice
PUBLIC
Cloud
Productivity
Database
platform
Business
applications
Infrastructure
COMMON TECHNOLOGIES:
Identity
Virtualization
Management
Development
PRIVATE
Cloud
HYBRID
Cloud
So why is Microsoft the right vendor?
It’s our cloud strategy…combining on-premise, private, and public cloud with a rich ecosystem of Microsoft partners to deliver the cloud on our mutual customers’ terms
We are the only vendor out there with the goods to deliver what customers have said they want
The scenarios are vast and the permeations of hybrid cloud solutions seem endless. There is no master playbook on this, but the bottom line is that we have the newly born stack to deliver whatever variation customers need and the partners with the capability and expertise to bring that to life….and at scale
You’ve got to be ready to help our customer build a cloud on their terms!
CRITICALLY IMPORTANT:
© 2014 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.

6. Introducing the New Cloud Performance Path

7. Your Success is the Key to Entry
4/17/2017
Your Success is the Key to Entry
Enter at the Silver level at no cost*
Enter at the Silver level at no cost
Enter at the Gold level at reduced fee
Enter at the Gold level at reduced fee
We are introducing three new competencies for Microsoft Office 365 and Microsoft Azure that you can qualify for through your proven cloud performance.
Unlock the benefits of partnership by simply growing your Cloud business
Proven cloud performance
Cloud Productivity
Grow your Cloud business
Pass technical exam
Unlimited cloud support
Additional internal use rights and Azure development and test environments
Partner incentives and access to special offers
Guaranteed account management at the Gold level
Priority placement in Pinpoint marketplace
Small and Midmarket Cloud Solutions
Customer references & satisfaction
We are introducing new competencies for Microsoft Office 365 and Microsoft Azure that you can qualify for through your proven cloud performance. Partners who attain the new Cloud Performance competencies will earn the silver level at no cost and will receive gold level at a reduced price. Partners who qualify will receive a host of benefits that include:
• Unlimited Cloud support
• Additional internal-use rights and development and test environments
• Partner incentives and access to special offers
• Guaranteed field or tele management at the gold level
Now that the cloud is being fully integrated into the Microsoft Partner Network, the Cloud Accelerate, Cloud Deployment Partners , and Azure Circle programs will be retired and partners will have a path to migrate into three new cloud performance competencies:
Small and Midmarket Cloud Solutions: For partners selling Microsoft Office 365 to small and mid-market customers.
Cloud Productivity: For partners deploying Microsoft Office 365 for enterprise customers.
Cloud Platform: For partners who specialize in delivering infrastructure and SaaS solutions on Microsoft Azure.
If you are a Cloud Accelerate or Cloud Deployment partner who meets the cloud performance thresholds for the Small and Midmarket Cloud Solutions or Cloud Productivity competencies, you will be granted the silver level of those competencies for one year. Partners will have to meet all additional competency requirements (such as customer references, customer satisfaction, and technical assessments) to renew at the end of the 12-month period. Partners will need to meet the new eligibility requirements to qualify for the gold level.
 If you are an Azure Circle partner who meets the cloud performance threshold for the Cloud Platform competency, you will be granted the silver level of that competency for one year. Partners will have to meet all additional competency requirements (such as customer references, customer satisfaction, and technical assessments) to renew at the end of that year. Partners will need to meet all the new eligibility requirements to qualify for the gold level.
Cloud Platform
*Silver entry fee promotional through June 30, 2015
© 2014 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.

8. Setting Partners Up for Success
4/17/2017
Setting Partners Up for Success
Enter at the Silver level at no cost*
Enter at the Gold level at reduced fee
Partners earn additional benefit and support by reaching these performance requirements.
Cloud Productivity
500 assigned seats (150 seats in developing markets) in last 12 months
1,500 assigned seats (500 seats in developing markets) in last 12 months
Small and Midmarket Cloud Solutions
150 seats with at least 10 new customers in last 12 months
300 seats with at least 30 new customers in last 12 months
**At launch we will measure assigned seats Office 365 and Azure Sales. Eventually we will move to Active Use and Azure Consumption
Cloud Platform
$25K ($15K in developing markets) customer and/or partner EA consumption and Open sales in last 12 months
$100K customer and/or partner EA consumption and Open sales in last 12 months
*Silver entry fee promotional through June 30, 2015
© 2014 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.

9. Leading with Cloud in Microsoft Partner Network
What is changing?
New cloud-focused competencies based on performance for Office 365 and Microsoft Azure
New benefits in On-Premises competencies to help partners transition to cloud and hybrid solutions
Retirement of existing cloud programs
New Cloud Performance Competencies
Cloud performance
1 person passing tech exams#
Cloud references
Silver
Gold
Cloud performance
2 people passing technical exam
CSAT
Cloud references
Small and Midmarket Cloud Solutions (Office 365)
Cloud Productivity (Office 365)
Cloud Platform (Azure)
We are introducing new competencies for Microsoft Office 365 and Microsoft Azure that you can qualify for through your proven cloud performance. Partners who attain the new Cloud Performance competencies will receive both the silver and gold level at a reduced price. Partners who qualify will receive a host of benefits that include:
• Unlimited Cloud support (break-fix cloud support)
• Additional internal-use rights and development and test environments
• Access to incentives and access to special offers
• Guaranteed account management (TPAM or field) at the gold level
Now that the cloud is being fully integrated into the Microsoft Partner Network, the Cloud Accelerate, Cloud Deployment Partners , and Azure Circle programs will be retired and partners will have a path to migrate into three new cloud performance competencies:
The Small and Midmarket Cloud Solutions competency is for partners selling Microsoft Office 365 to small and mid-market customers.
In order to qualify at the silver level, partners must have 150 seats of Office 365 sold with 10 customer add in the last 12 month. At the gold level, partners must have 300 seats sold with 30 customers adds.
There is no technical exams or assessments required at the silver level. Partners must have 3 unique Office 365 customer references to qualify.
At the gold level, two individuals must pass an exam and have 5 unique Office 365 customer references to qualify.
Cloud Productivity: For partners deploying Microsoft Office 365 for enterprise customers.
In order to qualify at the silver level, partners must have 500 seats of Office 365 deployed in the last 12 month. At the gold level, partners must have 1,500 seats deployed. However, at the September 29 launch, we will measure seats assigned, but will measure active use in the months ahead.
At the silver level, one individual must pass technical exams and must have 3 unique Office 365 customer references to qualify.
At the gold level, two individuals must pass technical exams and must have 5 unique Office 365 customer references to qualify.
Cloud Platform: For partners who specialize in delivering infrastructure and SaaS solutions on Microsoft Azure.
In order to qualify at the silver level, partners must have $25,000 in Azure consumption or Azure Partner EA purchased. At the gold level, partners must have $100,000 in Azure consumption or Azure revenue. At the September 29 launch, we will measure Azure sales, but eventually we will move to consumption in calendar year 2015.
At the silver level, one individual must pass technical exams and must have 3 unique Azure customer references to qualify.
At the gold level, two individuals must pass technical exams and must have 5 unique Azure customer references to qualify.
#No exam requirement for Small and Midmarket Cloud Solutions
On-Premises Competencies
Eligibility: No changes to existing competencies. Reduced competency fees*
Benefits: Cloud benefits to help enable partners to move their business to the cloud (including cloud internal use rights, cloud support and training)
*Silver entry fee promotional through June 30, 2015

10. Small and Midmarket Cloud Solutions
4/17/2017
Small and Midmarket Cloud Solutions
Silver
Gold
150 seats of Microsoft Office 365, at least 10 new customers*
300 seats of Microsoft Office 365, at least 30 new customers*
3 unique Microsoft Office 365 customer references*
5 unique Microsoft Office 365 customer references*
Requirements
Two certified individuals
Gold competency fee at reduced rate
Microsoft Office 365 Demo tenant
Unlimited Signature Cloud Support
The Small and Midmarket Cloud Solutions competency is for partners selling Microsoft Office 365 to small and mid-market customers.
In order to qualify at the silver level, partners must have 150 seats of Office 365 sold with 10 customer add in the last 12 month. At the gold level, partners must have 300 seats sold with 30 customers adds.
There is no entry fee or technical exams or assessments required at the silver level but partners must have 3 unique Office 365 customer references to qualify.
At the gold level, two individuals must pass a technical exam and have 5 unique Office 365 customer references to qualify. There is a fee at the gold level
All Small and Midmarket Cloud Solutions partners will receive unlimited Signature Cloud Support. Signature Cloud Support is our exclusive break-fix solution that supports cloud partners who are working in customer environments. You will also receive priority placement on the Pinpoint marketplace.
In addition to the core internal use software rights, silver partners will receive an additional 10 seats of Office 365.
Gold partners will earn an additional 25 seats, and will be eligible for dedicated account management.
Eligible for Microsoft Online Services Advisor Web-Direct Accelerator for Office 365
Benefits
Priority Placement on Pinpoint Marketplace
Additional 10 seats of Microsoft Office 365
Additional 25 seats of Microsoft Office 365
Guaranteed account management
* within the previous 12 months
*Silver entry fee promotional through June 30, 2015
© 2014 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.

11. Cloud Productivity Silver Gold Requirements Benefits
4/17/2017
Cloud Productivity
Silver
Gold
500 seats of Microsoft Office 365 Exchange Online* (150 seats in developing markets)
1,500 seats of Microsoft Office 365 Exchange Online* (500 seats in developing markets)
Requirements
3 unique Microsoft Office 365 customer references*
5 unique Microsoft Office 365 customer references*
One certified individual
Two certified individuals
Gold competency fee at reduced rate
Microsoft Office 365 Demo tenant
Unlimited Signature Cloud Support
Cloud Productivity: For partners deploying Microsoft Office 365 for enterprise customers.
In order to qualify at the silver level, partners must have 500 seats of Office 365 Exchange Online deployed in the last 12 month. At the gold level, partners must have 1,500 seats deployed. However, at the September 29 launch, we will measure seats assigned, but will measure active use in the months ahead.
At the silver level, one individual must pass technical exams and must have 3 unique Office 365 customer references to qualify. There is no entry fee at the silver level
At the gold level, two individuals must pass technical exams and must have 5 unique Office 365 customer references to qualify. There is a fee at the gold level
All Cloud Productivity partners will receive unlimited Signature Cloud Support. Signature Cloud Support is our exclusive break-fix solution that supports cloud partners who are working in customer environments. You will also receive priority placement on the Pinpoint marketplace.
In addition to the core internal use software rights, silver partners will receive an additional 25 seats of Office 365.
Gold partners will earn an additional 100 seats, and will be eligible for dedicated account management.
Eligible for Microsoft Online Services Advisor Web-Direct Accelerator Incentive
Benefits
Eligible for Microsoft Online Services Advisor Deploy Accelerator Incentive
Eligible to participate in Microsoft Office 365 Adoption Offers
Priority Placement on Pinpoint Marketplace
Additional 25 seats of Microsoft Office 365
Additional 100 seats of Microsoft Office 365
* within the previous 12 months
Guaranteed account management
*Silver entry fee promotional through June 30, 2015
© 2014 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.

12. Cloud Platform Silver Gold Requirements Benefits
4/17/2017
Cloud Platform
Silver
Gold
$25K ($15K in developing markets) customer and/or partner EA consumption and Open sales*
$100K customer and/or partner EA consumption and Open sales*
Requirements
3 unique Microsoft Azure customer references*
5 unique Microsoft Azure customer references*
One certified individual
Two certified individuals
Gold competency fee at reduced rate
Eligibility to participate in Azure Special Offers
Priority Placement in Pinpoint Marketplace
Cloud Platform: For partners who specialize in delivering infrastructure and SaaS solutions on Microsoft Azure.
In order to qualify at the silver level, partners must have $25,000 in Azure consumption or Azure Partner EA purchased and Open sales. At the gold level, partners must have $100,000 in Azure consumption and Open sales. At the September 29 launch, we will measure Azure sales, but eventually we will move to consumption in calendar year 2015.
At the silver level, one individual must pass technical exams and must have 3 unique Azure customer references to qualify. There is no entry fee at the silver level
At the gold level, two individuals must pass technical exams and must have 5 unique Azure customer references to qualify. There is a fee at the gold level
All Cloud Platform partners will receive priority placement on the Pinpoint marketplace.
In addition to the core $100 per month Azure consumption benefit, silver partners will receive an additional $250 per month Azure credit.
Gold partners will earn the $100 per month consumption benefit plus $500 per month Azure credit.
There will be some limitations on incentives for the Cloud Platform competency at launch. Partners who have made a valid claim for an Azure Circle incentive by September 29, 2014 will continue to be eligible for the customer consumption incentives, regardless of whether they have the Cloud Platform competency, until September 29, We are retiring the Azure Circle program on September 29,
Partners who have met the performance bar for the Cloud Platform competency by September 29, 2014 will be granted the competency, but have not submitted a claim for a valid incentive will not be eligible for Azure customer consumption incentives. The Managed Partner EA incentive will not be available at launch. It is still under review, however, once it is approved, Cloud Platform competency partners will be eligible.
Unlimited Signature Cloud Support
Benefits
Microsoft Azure IURs - $100/mo consumption plus $250/mo credit
Microsoft Azure IURs - $100/mo consumption plus $500/mo credit
Eligible for Azure Deployment Planning Services
Guaranteed account management
* within the previous 12 months
*Silver entry fee promotional through June 30, 2015
© 2014 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.

13. Partner Transition Summary
4/17/2017
Partner Transition Summary
Cloud Accelerate & Cloud Deployment partners
Azure Circle & Azure ISV partners
Small Business partners
Who meet the performance thresholds for Small and Midmarket Cloud Solutions or Cloud Productivity as of September 29
Who meet the performance thresholds for Cloud Platform as of September 29
Who meet the performance thresholds for Small and Midmarket Cloud Solutions as of September 29
Will be granted those competencies at the Silver level for one year.
Will have to meet all competency requirements (including customer references, customer satisfaction, and technical assessments) to renew at the end of the 12-month period.
Must meet all the new eligibility requirements to qualify for the Gold level.
Cloud Accelerate and Cloud Deployment renewal and enrollment will end on August 31. The programs will be retired on September 29.. 
Cloud Deployment partners with active status as of September 29 who do not meet the performance requirement for Cloud Productivity will continue to be eligible for Office 365 Deployment/Adoption offers until June 30, 2015.
Will be granted that competency at the Silver level for one year
Will have to meet all competency requirements (including customer references, customer satisfaction, and technical assessments) to renew at the end of 12-month period
Must meet all the new eligibility requirements to qualify for the Gold level.
The Azure Circle program will be retired on September 29.
Azure Circle partners who have submitted a claim for a valid incentive by September 29 will continue to be eligible for Azure customer consumption incentives until September 29, 2015.
Will be granted that competency at the silver level for one year.
Will have to meet all competency requirements (including customer references, customer satisfaction, and technical assessments) to renew at the end of that year.
If you do not meet the performance thresholds on September 29, you will retain your status in the Small Business competency until your anniversary date.
If you do not meet the performance thresholds at your anniversary date, you will have to earn another competency or purchase an Action Pack subscription to retain key benefits.
Here are the transition scenarios for our existing Cloud Program (Cloud Accelerate/Cloud Deployment/Azure Circle) and Small Business competency partners. The Cloud Programs are retiring as of Sept. 29, 2014, so we’ve laid out some specific pathways for those partners to move into our new Cloud Performance competencies.
For Cloud Accelerate and CDP partners who meet the performance thresholds for the Small and Midmarket Cloud Solutions or Cloud Productivity competencies as of September 29, 2014
They will be granted those competencies at the Silver level for one year.
They will have to meet all competency requirements (including customer references, customer satisfaction, and technical assessments) to renew at the end of the 12-month period.
If they have meet the threshold for the gold level, they will have to pay the fee and meet the additional requirements in order to move up to gold.
The transition for Azure Circle and Azure ISV partners is similar, with a few key distinctions. For Azure Circle partners who meet the performance threshold for the Cloud Platform competency by September 29, 2014:
They will be granted that competency at the Silver level for one year
They will have to meet all competency requirements (including customer references, customer satisfaction, and technical assessments) to renew at the end of 12-month period
They will need to meet all the new eligibility requirements to qualify for the Gold level
There will be some limitations on incentives for the Cloud Platform competency at launch. Partners who have made a valid claim for an Azure Circle incentive by 9/29/2014 will continue to be eligible for the customer consumption incentives, regardless of whether they have the Cloud Platform competency, until 9/29/2015. We are retiring the Azure Circle program on 9/29/2014.
Partners who have met the performance bar for the Cloud Platform competency by 9/29/2014 will be granted the competency, but have not submitted a claim for a valid incentive will not be eligible for Azure customer consumption incentives. The Managed Partner EA incentive will not be available at launch. It is still under review, however, once it is approved, Cloud Platform competency partners will be eligible.
Finally, since the Small Business competency is evolving to become the Small and Midmarket Cloud Solutions competency, our Small Business partners need to know that if they have met the performance thresholds for the Small and Midmarket Cloud Solutions competency as of September 29, 2014:
They will be granted that competency at the silver level for one year.
They will have to meet all competency requirements (including customer references, customer satisfaction, and technical assessments) to renew at the end of that year.
If they do not meet the performance thresholds on September 29, they will retain their status in the Small Business competency until their anniversary date.
Small Business partners will have until their anniversary date to meet the performance thresholds for the Small and Midmarket Cloud Solutions competency in order to remain in the competency. If they do not, they will have to earn another competency or purchase an Action Pack subscription to retain key benefits, most notably Internal Use software rights.
© 2014 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.

14. Microsoft is investing in your business
4/17/2017
Microsoft is investing in your business
Taking the first step into cloud and hybrid services is challenging. The skillset required to drive customers is different than traditional deployment work. Partners must review their business model and invest in resources to make the necessary changes.
Because this first step is the hardest, we’re changing our approach to integrating cloud into the Microsoft Partner Network in 4 ways to make it easier for partners to take this step with us.
Waiving your first year competency fee for Silver cloud competencies  #1
Enhancing your internal use rights for Office 365 and Azure   #2
Taking the first step into cloud and hybrid services takes investment. The skillset required to drive customers is different than traditional deployment work. You have to review your business model and invest in resources to make the necessary changes. In the first year, this first step on the road to recurring revenue is the hardest. In order to make it easier for you, the Microsoft Partner Network is changing our approach to integrating cloud into our competencies in 4 ways, which will free you up to invest in your business.
First, we are waiving your first year entry into the silver cloud competencies to help free up some resource for that investment and we are making the primary eligibility requirement your ability to drive assigned or active seats on Office 365 and Microsoft Azure consumption.  So while we will still provide you with exams and assessments to enable you to skill up, the primary measure of your eligibility will be your success with customers. 
And if you have already taken that first step, we are going to grant the new cloud performance competencies to partners who have already met the performance eligibility targets. 
Second, we want to enable you to use the cloud services and increase your personal credibility through your own experiences, so we are enhancing the internal use rights for Office 365 and Azure. 
Third, we are providing you with unlimited cloud support through our new Signature Cloud Support offering to help you take your first steps fully supported by us. In the months ahead, we will extend our new performance path to the cloud to CRM Online, giving you the ability to build Office 365, Azure and CRM Online cloud and hybrid practices. 
And the value is not just for cloud competency partners. The entry fee for all on-premises competencies will be cut by up to 10%. This is just a first step – we intend to continue looking for ways to lower the cost of doing business with us for EVERY partner.
Hopefully these 4 investments will help you take your first steps in building your cloud and hybrid practices and unlocking that year 2 recurring revenue stream.  
Providing you with unlimited cloud support to keep you and your partners up and running #3
Reducing the fees for on-premise competencies by up to 10%.  #4
© 2014 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.

15. Additional Program Changes
4/17/2017
Additional Program Changes
© 2014 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.

16. New benefits for hybrid competencies
4/17/2017
New benefits for hybrid competencies
To help our partners gain expertise in the cloud, we are offering Signature Cloud Support—our exclusive break-fix solution for cloud partners who are working in customer environments—in 10 competencies.
Advisory packages that provide partners more customized support options:
Office 365 Deployment Shadowing: 
Signature Cloud Support
Gold - 10 incidents for Office 365 and Azure
Silver – 5 incidents for Office 365 and Azure
Labs on Azure:
Application Development
Collaboration and Content
Communication
Datacenter
Small
Business
Messaging
Midmarket Solution Provider
Cloud is now at the core of the Microsoft Partner Network, and to help our partners gain expertise in the cloud, we are offering a new layer of support –
Signature Cloud Support -- for 10 hybrid competencies 
Signature Cloud Support is our exclusive break-fix solution that supports cloud partners who are working in customer environments. Beginning in September, partners who earn the gold level for one of these competencies, they will have access to 10 incidents of Signature Cloud Support for Office 365 and Azure. For those partners who earn the silver level, they will have access to 5 Signature Cloud Support incidents for Office 365 and Azure. This is an addition to the existing core technical benefits.
In addition, we are now offering Advisory packages that allow partners to choose the support option that meets the needs for their teams and customers. The packages are:
Office 365 Deployment Shadowing:  Office 365 Deployment Shadowing
Labs on Azure:
Modernize your Datacenter:
Data Platform
Modernize your Datacenter:
Devices and
Deployment
Project and
Portfolio Management
© 2014 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.

17. Important updates to Internal Use Rights benefit
4/17/2017
Important updates to Internal Use Rights benefit
Power BI for Office 365 allows you to model and analyze data from various sources and see your data with bold interactive presentations in Excel. In addition, you can create collaborate Power BI sites to quickly share live reports and custom data sets with your team.
For all competency partners (July)
Product
Silver
Gold
Power BI for Office 365 25
100
For Gold CRM competency partners (July)
Microsoft Social Listening can help you to facilitate amazing customer experiences, ensuring that messages resonate while highlighting trends that impact your brand. . Make use of these new licenses and see how it can help customers generate more leads through impactful marketing campaigns.
Product
Silver
Gold
Microsoft Social Listening
n/a 80
Microsoft Dynamics Marketing 15
Power BI for Office 365 added to core competency benefits
Large volumes of data, coming from many different source types, is at the highest velocity ever. In order to help partners harness that data, we are offering internal use software license for Power BI for Office 365 as a core benefit of the Microsoft Partner Network.
Power BI for Office 365 allows you to model and analyze data from various sources and see your data with bold interactive presentations in Excel. In addition, you can create collaborate Power BI sites to quickly share live reports and custom data sets with your team. You can learn more about Power BI for Office 365 here.
This Internal Use Right benefit is being added for all competency partners. Silver partners receive up to 25 licenses and 100 licenses for gold partners.
Microsoft Social Listening and Microsoft Dynamics Marketing licenses now available for Gold CRM competency partners
In today's social and mobile world, businesses need to move faster and share knowledge more broadly than ever before. They also need to connect to customers on their terms, which increasingly means getting on social. Microsoft Social Listening can help you to facilitate amazing customer experiences, ensuring that messages resonate while highlighting trends that impact your brand. You can find out more about this new cloud product from Microsoft Dynamics website. Beginning in July, Gold CRM competency partners will have receive 80 internal use licenses so they can try Microsoft Social Listening and see how it can help to transform your customers’ businesses.
In addition, Gold CRM competency partners will also receive 15 internal use licenses of Microsoft Dynamics Marketing. Make use of these new licenses and see how it can help customers generate more leads through impactful marketing campaigns. Find out more about it here.
For the Project and Portfolio Management competency (Sept)
Project and Visio online products allow partners to access these products anywhere, anytime and learn how that flexibility can bring impact to their customers.
Product
Silver
Gold
Microsoft Project Pro for Office 365 10 40
Microsoft Visio Pro for Office 365
Microsoft Project Online 5 20
Microsoft Project Lite 80
© 2014 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. New Datacenter competency
4/17/2017
New Datacenter competency
Microsoft infrastructure solutions are evolving into comprehensive architectures that deliver a robust, streamlined, and scalable platform that can run on the customer’s datacenter, as a partner-hosted service or in a hybrid environment.
To reflect this evolution, we are merging the Management and Virtualization and Server Platform competencies into a single competency called Datacenter.
The internal use rights (IUR) benefits for this new competency have been updated to reflect partners’ capabilities and continued investment in these areas.
What you need to know:
Management and Virtualization or Server Platform competency partners will be migrated into the new Datacenter competency at launch and will have a minimum of six months to meet the updated competency requirements, regardless of anniversary date. In addition, partners will be able to keep their IUR benefits for one year after the launch date for products that are not offered in the new Datacenter competency.
The requirements and benefits for Datacenter can be found in the appendix of this deck. They can also be found in the Disclosure Guide, and will be available on the MPN portal on September 29, 2014.
© 2014 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.

19. Incentives Benefits What is changing?
4/17/2017
Incentives Benefits
What is changing?
Starting October 1, 2014, partners will need to have competencies to earn Accelerators in the Online Services Advisor and Deploy Incentives.
Accelerator Requirements
Product
Competency
Silver performance requirements
Gold performance requirements
Office 365
Intune
Small and Midmarket
Cloud Solutions
Devices and Deployment
Cloud Productivity
500 seats assigned in the last 12 months (150 seats assigned in developing markets)*
150 seats sold and 15 customers adds in the last 12 months
1500 seats assigned in the last 12 months (500 seats assigned in developing markets)*
300 seats sold and 30 customer adds in the last 12 months
Meet Business + Technical Assessments – Please refer to MPN Disclosure Guide for details
Must earn gold
Online Services Advisor Web-Direct Accelerator Requirements
Product
Competency
Silver performance requirements
Gold performance requirements
Office 365
Cloud Productivity
500 seats assigned in the last 12 months (150 seats assigned in developing markets)*
1500 seats assigned in the last 12 months (500 seats assigned in developing markets)*
Intune
Devices and Deployment
EMS
Cloud
Productivity
1500 seats assigned in the last 12 months
(500 seats assigned in developing markets)*
Meet Business + Technical Assessments – Please refer to MPN Disclosure Guide for details
Must earn gold
Online Services Advisory Deploy Accelerator Requirements*
*Additional requirement of deploying 70% of seats within 6 mos
© 2014 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.

20. Get Ready for Your Cloud Future with Us
4/17/2017
Get Ready for Your Cloud Future with Us
Learn more about the Cloud Performance Path on the MPN portal
Get step-by-step guidance on building your Cloud business
Find out how to be profitable in the Cloud
View expert tips on how to prepare for new business models
© 2014 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.

21. Appendix

22. Retirement of Mobility competency
4/17/2017
Retirement of Mobility competency .
Existing partners will be transitioned into one of two existing competencies.
Service-oriented partners will be transitioned into Devices and Deployment, while ISVs who have completed the App qualification requirements will be transitioned to Application Development.
What you need to know:
Mobility partners will have a minimum of six months to meet the requirements for either Devices and Deployment or Application Development, regardless of anniversary date
© 2014 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.

23. A clear and differentiated vision for the future
4/17/2017
A clear and differentiated vision for the future
Whatever your business model, Microsoft is investing in you to grow your business today, providing partners with the richest incentives and benefits in the industry on their journey to the cloud.
Delivering world class products and licensing models that support your profitability
Creating Markets through global and local awareness and brand trust
Enabling your business through competencies, training, support, marketing
Local sales and marketing engagement that works with you
Microsoft Cloud Solutions Providers have the expanded capability to directly manage the entire lifecycle of their customers’ cloud subscription – sell, bill, manage and support.
Open licensing model to Microsoft Dynamics CRM Online makes it easier for partners to sell to SMB customers
Azure in Open licensing offers partners a new option to sell Azure services to customers.
FastTrack lets partners get their customers up and running on Office 365 quickly
Pinpoint helps partners take advantage of new cloud-based markets, making your applications and services available to a wider customer base. 
ModernBiz demand generation campaign features cross-product solutions for Small and Midsized Businesses (SMB) – a super high-growth area where we are seeing Cloud adoption growing faster than any other customer segment.
Microsoft Azure Certified empowers partners to grow their business through new opportunities to promote and sell their applications and services on Azure.
New competencies that partners can qualify for through proven cloud performance, unlocking additional benefits, support and incentives as your cloud business grows.
Signature Cloud Support to help partners gain expertise in the cloud
New benefits for on-premises competencies designed to help partners transition to cloud and hybrid services
Investing in our partners as they take the first step into cloud and hybrid services by cutting competency fees by up to 10%
Internal use software licenses to enable partners to learn and use cloud products in order to sell to customers
The Partner Seller enables Microsoft partner resources to help drive and accelerate pipeline velocity and customer deployment
Digital Stride helps partners increase online sales through effective digital marketing
This slide aligns to Phil Sorgen’s WPC keynote messaging, tying Microsoft’s partner vision and engagement to products and services that were announced or highlighted at WPC.
© 2014 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.

24. 4/17/2017
Ride the Wave of Cloud Disruption with Microsoft Microsoft’s Cloud performance path: your success buys you all the support you need to grow your Cloud business
“Our Office 365 business is growing faster than the rest of the business. We see that trend continuing this year. Anyone who’s still on Exchange Server 2003 will now want to upgrade, and Office 365 is the way to go. We’re getting leads and referrals for Office 365 every day.”
- Guy Baroan, Founder and President Baroan Technologies
1 in 7 people on the planet uses Office, and Office 365 is Microsoft’s fastest growing business ever
1,000 Microsoft Azure adds more than 1,000 customers every day
Enabling & Rewarding Your Cloud Transformation
The more cloud you sell, buy or drive in consumption, the more Microsoft will invest in you
Entry free of charge at the silver level#
Guaranteed Microsoft management at the gold level
Unlimited Signature Cloud Support
Priority placement on customer marketplace site
Internal-use software rights and access to development and test environments
Incentives and access to special offers, such as Office 365 Deployment offer
Hundreds of training options to help you optimize your business
Make Money in the Cloud
Cloud partners had 1.6 times the recurring revenue as a portion of total revenue versus other partners*.
Recurring revenue brings predictable cash flow, higher gross margins, and potentially higher valuation of your company*.
Cloud-orientated partners are winning deals from other partners, driving hybrid solutions
Successful partners are building an annuity stream for the future
Nearly 50% of large enterprises will likely have hybrid deployments by the end of 2017^
Hybrid services create new opportunities to differentiate
Market Leading Cloud Services
Modern productivity tools that are familiar and intuitive so that employees can easily use, share information and collaborate from anywhere.
A consistent, comprehensive solution with online/offline access to data across devices.
Enterprise-grade privacy, security, and compliance capabilities.
A true hybrid cloud solution that brings the cloud to customers in a flexible way that fits their business needs and roadmap.
The growing customer demand for cloud and hybrid services expected to reach $108 billion by 2017* offers partners various ways to create growing and predictable revenue streams through IP and managed services. The rewards are big for partners who make the move to the cloud – cloud partners had 1.6 times the recurring revenue as a portion of total revenue versus other partners, and recurring revenue brings predictable cash flow, higher gross margins and potentially a higher valuation of a partner’s business.
No company is better positioned to help partners make money building, hosting, managing or selling cloud solutions than Microsoft. Microsoft’s industry-leading cloud services offer:
Modern productivity tools that are familiar and intuitive, so customers can easily use and share information and collaborate from anywhere.
A consistent, comprehensive solution with online/offline access to data across devices
Enterprise-grade privacy, security and compliance capabilities
A true hybrid solution that brings the cloud to customers in a flexible way that fits their business needs and roadmap
And now, Microsoft’s Partner Network is investing in our partners’ success, giving you the support, benefits and incentives you need to grow your business, and increasing those benefits, incentives and support as your success grows.
*-2014 IDC study commissioned by Microsoft #-Silver entry fee promotional through June 30, ^ Gartner, Inc. 2013
© 2014 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.