LICENSING IN THE CLOUD

2. LICENSING IN THE CLOUD CHRIS SHARP, BRIAN HOLDER, KATHRYN SADUCAS, ROSS DEMBECKI

3. Topics for Today • What Is it? • Why would I sell this? • How is it licensed? • CRM Online – update • Questions

4. CHRIS SHARP WHAT IS the microsoft cloud offering?

5. Commercial Cloud Services CLOUD SERVICES • PRODUCTIVITY • COMMUNICATIONS • COLLABORATION • BUSINESS APPS • IDENTITY • STORAGE • PLATFORM ON-PREMISES LeadingCommercial Cloud Services!

6. SaaS PaaS IaaS PUBLIC ON PREMISE HOSTED

7. SaaS Global Market Opportunity. The global market opportunity for cloud-based applications is US$17 billion in 2010, growing at 24% CAGR (IDC) PaaS IaaS PUBLIC ON PREMISE HOSTED

8. Recognising the Market Opportunity Cloud Market Value Forecast Key workloads predicted to have high cloud offerings Drivers 3X Growth! % of partners offering workload thru cloud Web conferencing – 48% Customer demand 10% 20% 30% 40% 50% Web Conferencing HR and Workforce Management $44 $55 Collaboration –46% Annuity revenue opportunity $36 Collaborative Software SCM $29 E-mail/Office and Personal Productivity Software Acceptance of SaaS models Content/document management – 39% $22 Security Software Content Management/Document Management $17 Business Intelligence Messaging and productivity – 35% Expansion of services Industry-specific Application B2B/B2C Services Business consulting transformation CRM CRM and ERP – 37% and 26% Accounting Utilities/Software/ERP 10% 20% 30% 40% 50% 2009 IaaS PaaS SaaS 2012 IPED: Can You See Through The Clouds? The Evolution Of Technology Delivery, March 2010 IDC: Worldwide Software As a Service 2010-2014 Forecast: Software will Never Be the Same, June 2010

9. Enterprise class software delivered via subscription services hosted by Microsoft and sold with partners Business Productivity Online Suite: Web Apps

10. What is in BPOS • 25GB Mailbox • Sync-able, Searchable, Browse-able GAL • Access via Outlook; OWA & ActiveSync • Integrated Anti-Virus/Anti-Spam • Shared Calendars, Contacts & Tasks • Administer via Web and Active Directory • Optional Archive, Encryption & BES support • Over 200 other capabilities included • Teams Sites & Document Libraries • RSS Content Syndication • Audience Targeting • Group Tasks, Surveysand Calendars • Content Retention and Auditing Policies • Workflows & Business Process Forms • Integrated Web Parts • Platform Customization & Extensibility • Web Conference with 2 to 250 participants • VoIP Conference with 2 to 250 participants • Preload content or share on-the-fly • Share Single App or Complete Desktop • Stream Flash and Windows Media files • Virtual Breakout Rooms and Q&A kiosk • Active Speaker Switched Video Streams • Adaptive Codecs Optimize Bandwidth • Enhanced Presence • Instant Messaging • Group IM • AD-integrated Address Book Search • Distribution List Expansion for Group IM • Integrated peer-to-peer File Transfer • 1:1 Audio and Video • Escalation to Live Meeting Conferences

11. BRIAN HOLDER Why would I sell this to my customers?

12. Customer Choice Deploy communications and collaboration solutions that suits your customers Choice Seamless User Experience Cloud Services On-Premises

13. Customer Value Proposition Finance Process Technology People • Makes your costs even and predictable • Reduces both capex and opex • Priced simply: includes both software and hardware + management • Business class availability backed by Financially backed SLAs • Highly secure operations – geo redundant datacentres • Assurance of world class operational standards • 99.999% uptime • Faster deployment • Better productivity through ‘anywhere access’ • Simplified management • Always upgraded an on the latest versions • Providers users with latest productivity tools • Enables IT staff to focus on adding business value • Helps meet the challenges of workforce reduction • Helps IT adapt to mergers and acquisitions quickly

14. Partner and Customer Momentum (BPOS) 84% of Microsoft Online Services seats sold have partner attached Doubledthe Microsoft Online Service customer base in the last 3 months Over 500 partners growing each month 63% of all seats sold under an EA 20% of Partners transacting & earning ongoing annuity Over 85 partners received investment funds in Q4 to help close deals

15. Australian Customer Wins

16. Microsoft Online Success in Australia ENABLE BUSINESS AGILITY INCREASE IT EFFICIENCY DRIVE COSTS DOWN Decrease Cost & Rapid Deployment Simpler IT Management & Upgrade to new technology Reduce costs by 25% • Migrate off Lotus Notes onto BPOS • Migrate disparate systems to one platform (result of mergers and acquisitions) • Provide Blackberry integration over 700 devices • Users: 8000 BPOS Suite • Novell Groupwise Migration using Quest Migration tools • Using Windows Mobiles to access email on the road • Users: 170 BPOS (CASA agreement) • Deskless Worker improves information to non IT users eg. policies, training, OH&S • Provides email & collabortion to remote employees • Users: 4500 Deskless Sharepoint & BPOS

17. Types of end-users Information Worker • Have PC and are office workers, collaborate regularly with others, access via mobile devices etc. • Outlook connectivity with OWA • Full Exchange Online, SharePoint Online • 5GB Exchange mailbox • 250MB SharePoint storage • ActiveSync device support Deskless Worker • Don’t have PC or Laptop assigned at work, Infrequent access to a PC, multiple users sharing one PC • 500MB Exchange mailbox • Mailbox accessed via OWA Light • SharePoint capabilities (no storage) • Lower cost

18. Near Term Opportunity • Has workforce with no dedicated PC • Need to communicate to all employees Task-workers • Needs to lower costs fast • Needs more efficient IT (centralize or consolidate platform) Cost • Wants strategy or evaluating cloud • Outsourced or evaluating outsourcers • Is unhappy with current outsourcer Cloud/Out-sourced • Has Google created initial interest • Last Novell strongholds • Notes customer (http: • //notescompete) Google, Groupwise or Notes

19. Near Term Opportunity • Is not deployed on current technology (on Ex 2000, Ex 2003) • Wants dynamic infrastructure. Greater standardization Challenges Staying Current • Has security/ reliability concerns • Has challenges with up-time Up-time Challenges • Needs standardized infrastructure, fast addition of new users • Is expanding • Needs collaboration strategy to drive revenues Mergers & Acquisitions New CIO, CEO, CTO, TDM Change Agent

20. KATHRYN SADUCAS HOW IS IT LICENSED?

21. Online Services Program Comparison Microsoft Online Subscription Program (MOSP) Enterprise Agreement (EA) or Campus School Agreement (CASA) • New customer looking for lowest cost option • Existing FPP, OEM, Select & Open Value customers Customer Type New or Existing Platform EA customers or CASA customers Existing EA Core CAL or ECAL customers Coterminous with EA (Up to 3 Years) No Seat minimum Attached to Current EA/CASA Enrolment Billing Starts Immediately (Annual) Billing Consistent with VL Agreement terms Agreement Terms • Evergreen – Auto Renewal • 1 Year Subscription Term • Billing Starts Immediately (Monthly) • Credit Card or on your Telstra Bill • No Seat minimum Available Offers • Suites and Component offerings • USL’s and Step-Up USLs (now available) • Suites and Component offerings (no Deskless or extra sharepoint storage) • BPOS-S is an Additional Product in EA (no platform commitment) • All qualified desktops must still have a CAL Suite licensed with active SA • Flexibility to deploy staged rollout by counting actual users, not FTEs or devices

22. BPOS Dual Access License Rights User Subscription License (USL) can be used with the service and with on-premises servers On-premise license rights are for the equivalent workload CAL Deskless Worker USLs do NOT allow for dual access rights; no on-premises equivalent Exchange Example Customer purchases Exchange Online User Subscription License Licensed User can use the USL to access Exchange Online Customer purchases Exchange Server licenses for their on-premise servers Same Licensed User can use the USL as a Client Access License to access On-Premises Servers

23. Partner Opportunity Note: ESA/LAR cannot claim both POR fees and ESA fees unless they are 2 x separate trading entities

24. Partner Revenue and Opportunity Analysis • Analysis of 40 deals • Average deal size: 141 seats • Average deal revenue: $24,000 Managed Services $35/seat Business Consulting & Customisation $66/seat Migration & Integration $46/seat Total = $167 per seat Partner of Record Fees $20/seat

25. Attaching the “Partner of Record” • Active MPN Membership • Review and Accept MOSPA (and TOSA for non EA) • Download OSA Attach Form from QuickStart • Receive Fee Statement • Complete Form and Submit to Customer for Signature • Submit Invoice • Complete Online Training • Submit Form via MOCP for processing • Receive Fees • BPOS Partner • Assign as POR • Customer attaches POR in MOCP during purchase experience • Receive process completion email For non-EA POR attached automatically during ordering process via Telstra Attach POR to Volume License Enterprise Enrolment Agreement (EA) Note: For non-EA via Telstra T-Suite, POR is attached automatically through online ordering process.

26. EA Pricing