1. Brief Purpose –Communicate the pricing & licensing model of Visual Studio 2005 and the new MSDN Subscriptions, focusing primarily on Visual Studio Team System –Explain the transition model for existing MSDN subscribers Audience –Existing MSDN Subscribers, license administrators and purchasing decision makers in Enterprises with MSDN Subscriptions licences, primarily through EA or Select Agreements –Prospective customers of MSDN Subscriptions or Visual Studio 2003/5 Delivery –This deck is intended for presentation by a Microsoft field representative to Customers (EA/Select) or Channel Partners (LARs). It is not intended to be viewed independently and will not be published online. –It is advised that the presentation is customized based on the current status of the customer (i.e. if the customer only owns MSDN Universal, make the message specific to the transition for that level). This deck is not intended for MSDN subscribers through the Certified Partner program who will have a different transition plan TBA.

2. Microsoft ® Visual Studio ® 2005 and MSDN ® Subscriptions Licensing, Pricing & Customer Transition Katrina Sheeran, Business Development Manager katrinas@microsoft.com Finula Crowe, Developer Tools Product Manager finulac@microsoft.com

3. Contents Introduction to Visual Studio 2005 Introduction to Visual Studio 2005 Changes to MSDN subscription levels Changes to MSDN subscription levels Software Assurance Software Assurance Product availability by program Product availability by program Pricing Pricing Transition model for existing customers Transition model for existing customers

4. Tenets  Compared to other tools in the market, Microsoft’s new lifecycle management tools:  Are more affordable,  More accessible, and  Feature a simplified pricing and licensing model  With the launch of new subscription offerings, existing subscribers will:  Receive a subscription of equivalent or higher value for the remainder of their existing Volume Licensing agreement;  Have the opportunity to change or upgrade their existing subscription level; and  Upon renewal, have the opportunity to renew at the new subscription level at comparable rates to today

5. Visual Studio 2005 “Personalized productivity” Novices, enthusiasts, and students “My first program” Web developers VB6 developers Web apps/services Smart client apps Device apps All languages Pro developers in a small team Office-based apps Server-based apps Database apps Development organizations Team collaboration Process-driven orgs

6. Visual Studio Team System Expanding the product line Version 2003

7. Visual Studio Team Foundation Visual Studio Team System Change ManagementWork Item TrackingReportingProject SiteIntegration ServicesProject Management Process and Architecture Guidance Visual Studio Industry Partners Big Build Visual Studio 2005 Team Suite Visual Studio 2005 Team Edition for Developers Visual Studio 2005 Team Edition for Architects Visual Studio 2005 Team Edition for Testers Visual Studio 2005 Team Edition for Testers Visual Studio 2005 Team Edition for Architects Visual Studio 2005 Team Edition for Developers Dynamic Code AnalyzerStatic Code AnalyzerCode ProfilerUnit TestingCode CoverageVisio and UML ModelingTeam Foundation Client (includes CAL)Visual Studio Professional EditionLoad TestingManual TestingTest Case ManagementApplication DesignerLogical Infra. DesignerDeployment DesignerClass Designer

8. Visual Studio Team Suite Visual Studio Team Suite makes it affordable to design quality, security, and cost reduction into the development process  Addresses needs of multifunctional roles in organization  Introduce testing “early and often”  Help improve the overall quality of the development process  Help decrease the likelihood that an application will be designed and developed without meeting basic security and performance targets  Facilitates product standardization across development team roles  Ease of purchase  Help reduce cost of license management  Full suite of products and functionality available at a fraction of cost of leading competitors

9. Subscription Benefits - Today Microsoft Office 2003Operating SystemsMSDN LibraryTechnical Phone SupportMSDN Managed NewsgroupsMSDN Online ConciergeEarly Access to Betas and CTPsWindows Server System Universal Secure Download Area

10. Subscription Benefits Continue Operating SystemsMSDN LibraryTechnical Phone SupportManaged NewsgroupsMSDN Online ConciergeEarly Access to Betas/CTPsMicrosoft SQL ServerSecure Download AreaMicrosoft Office 2003*Operating SystemsMSDN LibraryTechnical Phone SupportManaged NewsgroupsMSDN Online ConciergeEarly Access to Betas/CTPsWindows Server SystemSecure Download Area MSDN Premium MSDN Professional * Premium includes productivity Use Rights for Office 2003 Available with: Visual Studio 2005 Team Edition for Software Developers Visual Studio 2005 Team Edition for Software Architects Visual Studio 2005 Team Edition for Software Testers Visual Studio 2005 Team Suite

11. Pricing and Licensing

12. MSDN Transition “License” “Software Assurance” Visual Studio Team Edition for Software Architects Visual Studio Team Edition for Software Developers Visual Studio Team Edition for Software Testers Visual Studio Team Suite with MSDN Premium Subscription with MSDN Premium Subscription with MSDN Premium Subscription with MSDN Premium Subscription Visual Studio Professional Edition with MSDN Premium Subscription with MSDN Professional Subscription

13. Licensing Model Active MSDN Universal subscribers will receive a no-cost upgrade to their choice of: Visual Studio Team Edition for Software Architects Visual Studio Team Edition for Software Architects Visual Studio Team Edition for Software Developers Visual Studio Team Edition for Software Developers Visual Studio Team Edition for Software Testers Visual Studio Team Edition for Software Testers Visual Studio Team Suite “Step Up” pricing Architect N/C Upgrade Developer N/C Upgrade Tester N/C Upgrade MSDN Universal oror Visual Studio Team Foundation Server Server/CAL Team Foundation Server available separately on a Server/CAL pricing model Team Foundation Server available separately on a Server/CAL pricing model Each Team System client product includes one CAL for Team Foundation with MSDN Premium Subscription with MSDN Premium Subscription with MSDN Premium Subscription with MSDN Premium Subscription

14. Product Comparison MSDN Universal vs. new VSTS-based subscriptions MSDN Universal VS Team Architect w/ MSDN Premium VS Team Test w/ MSDN Premium VS Team Developer w/ MSDN Premium VS Team Suite w/ MSDN Premium Products / Benefits Visual Studio 2005 Team Architect N/A Visual Studio 2005 Team TestN/A Visual Studio 2005 Team DeveloperN/A Visual Studio Professional 2005N/A Visual Studio.NET 2003 Enterprise Architect Visual Studio 6.0 – 2003 Enterprise Visual Studio 6.0 – 2003 Professional Visual FoxPro 9.0 Team Foundation ServerN/A Team Foundation Server 2005 CALN/A Visual Source Safe 2005N/A Operating Systems Servers Office Productivity Applications MSDN Library Technical Phone Support Incidents44444 MSDN Online Concierge MSDN Managed Newsgroups

15. Transition for existing MSDN subscribers

16. Promotional Opportunity Visual Studio customers should purchase MSDN Universal now Visual Studio customers should purchase MSDN Universal now Promotional opportunities to acquire MSDN Universal are now available for new and existing Visual Studio customers Promotional opportunities to acquire MSDN Universal are now available for new and existing Visual Studio customers MSDN Universal subscribers will get a no-cost upgrade to the role-based Team Edition products MSDN Universal subscribers will get a no-cost upgrade to the role-based Team Edition products Special upgrade pricing will be available to move up to the Team Suite Special upgrade pricing will be available to move up to the Team Suite

17. Questions ©2005 Microsoft Corporation. All rights reserved. Microsoft, Windows, MSDN, SharePoint, Visual Basic, Visual C++, Visual C#, Visual J#, Visual Studio, the Visual Studio logo, Win32, Windows Server, Windows logo, and the Windows Start logo are either registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries. The names of actual companies and products mentioned herein may be the trademarks of their respective owners. The example companies, organizations, products, domain names, e-mail addresses, logos, people, places, and events depicted herein are fictitious. No association with any real company, organization, product, domain name, email address, logo, person, places, or events is intended or should be inferred.

18. Visual Studio Team Test with MSDN Premium Subscription Visual Studio Team Architect with MSDN Premium Subscription Visual Studio Team Developer with MSDN Premium Subscription MSDN Enterprise Subscription MSDN Professional Subscription MSDN Universal Subscription oror Transition for existing MSDN subscribers Opportunity for subscribers receive a subscription of equivalent or higher value Choice of Team Developer Team Architect or Team Test Default to Professional Subscription Default to Team Developer Default to Team Developer Visual Studio 2005 Professional with MSDN Professional Subscription Visual Studio Team Developer with MSDN Premium Subscription If you have*… You will be eligible to receive*… * Must have an active subscription at time of Visual Studio 2005 product availability.

19. Visual Studio 2005 Pricing & Licensing * Preliminary pricing model and prices may be subject to change. Comparison of Software Assurance Net Prices Open NLSelect D Enterprise Agreement D MSDN Universal Subscription 1 Yr SA (Net Price) $1,035.70 (a)$832.80$756.72 VSTS Role Subscription 1 Yr SA (Net Price) $995.64 (a)$756.72 Net Difference (VSTS- Role less MSDN-U) 1 Yr SA (Net Price) -$40.06 (a)-$76.08$0.00 (a) Represents annualized value of the 2 year Open NL agreement SA price Designed to simplify licensing and minimize impact on existing customers Key Facts for MSDN Subscription Customers: No change in Software Assurance (SA) prices on committed licenses during the term of a customer’s current agreement Most customers will see no change in SA pricing at renewal -- option to “drop down” subscription level at renewal Visual Studio Team System products with MSDN subscriptions will snap to the standard Microsoft client Volume License SA pricing New Visual Studio Team System License plus Software Assurance (L&SA) prices will be higher than current MSDN Subscription L&SA

20. Today Similar price New name No change MSDN Enterprise Subscription MSDN Operating Systems Subscription MSDN Library Subscription MSDN Professional Subscription MSDN Universal Subscription Visual Studio 2005 Professional with MSDN Premium Subscription Visual Studio 2005 Professional with MSDN Professional Subscription MSDN Operating Systems Subscription MSDN Library Subscription 2005 NEW MSDN Premium includes the same subscription benefits that exist in MSDN Universal today MSDN Professional contains the same subscription benefits as MSDN Professional today Introducing… Visual Studio with MSDN Subscriptions

21. New Visual Studio Team System-based subscriptions Four new subscription offerings provide similar benefits as MSDN Universal today, only now for team roles Four new subscription offerings provide similar benefits as MSDN Universal today, only now for team roles Licensing consistent with other subscriptions Licensing consistent with other subscriptions  Design, development, test and demonstration use rights  Each subscription licensed per person basis Visual Studio 2005 Team Suite with MSDN Premium Subscription Visual Studio 2005 Team Edition for Software Architects with MSDN Premium Subscription Visual Studio 2005 Team Edition for Software Testers with MSDN Premium Subscription Visual Studio 2005 Team Edition for Software Developers with MSDN Premium Subscription 4 New Visual Studio Team System Subscription Offerings

22. Select ERP Pricing* For actual pricing, please contact your Microsoft Reseller

23. Enterprise Agreement ERP Pricing* For actual pricing, please contact your Microsoft Reseller

24. Additional Pricing Details The following pricing is the estimated Full Package Product (FPP) Estimated Retail Pricing. Volume Licensing specific pricing has not been released yet for these products.

25. Calls To Action! Distributors: Come see Fin re FPP and Open Customers (finulac@microsoft.com) Distributors: Come see Fin re FPP and Open Customers (finulac@microsoft.com) READ The Partner Newsletter for Updates READ The Partner Newsletter for Updates Get your customers to sign up to MSDN Flash Get your customers to sign up to MSDN Flash Ongoing Communication through LAR Monthly Communication Ongoing Communication through LAR Monthly Communication Talk to your customers about transitioning prior to launch Talk to your customers about transitioning prior to launch Start looking for opportunities for Visual Studio Team System!!! Start looking for opportunities for Visual Studio Team System!!!