Partner Introduction to Open Value

1. Partner Introduction to Open Value Marilyn Ng 22 March, 2006

2. Agenda • Open License program overview • Introduction • Agreement model • Program comparison • Partner opportunity/value • Customer benefits • Sales resources

3. Purpose – Top of mind • Why Sell Open Value? • Why Open Value is better for you (partners), the customer, and Microsoft? • What is the Opportunity and Return on effort? • How do I sell?

4. Open Value is the “Big Bet” to grow Midmarket • Open Value generates more revenue because • Up sell to company-wide licensing • Up sell to platform licenses (Office + Core CAL + Windows Upgrade) • Reduced first-year cost makes larger order sizes possible • Recurring revenue builds strong repeat revenue

5. Microsoft Licensing Programs • Full Packaged Product (FPP or Retail) • Original Equipment Manufacturer (OEM) • Microsoft Volume Licensing – Open License program • Open Business • Open Volume • Open Value • Open Value – subscription • Open Value with companywide option • Open Value with non-companywide option Open Value is Microsoft’s strategic licensing programfor small and mid-sized organizations

6. Open License Channel Model • Buy/sell model • Microsoft sells licenses to a distributor • The distributor sells the licenses to the reseller • Customers buy from the reseller Microsoft Distributor Reseller Find a local distributor at http://www.microsoft.com/thailand/ps/distributor.asp Customer

7. Open Business Program • Simple program to acquire software licenses • Software Assurance is optional • Two-year agreement • Up-front payment at time of order required • No additional savings available

8. Open Value Program

9. Open Value – Purchase Options • Program options • Companywide platform option • Companywide option • Non-companywide option • Subscription • Spread license acquisition costover three years • Update agreement with newdeployments monthly

10. Open Value – Subscription • Annual subscription payment • 50% first-year discount availablefor current software (N or N-1) • Deploy additional desktops duringthe year • No need to track new deploymentsof Windows, Office, or core/SBS CALs • Count desktops and update agreement annually • Annual cost based on count of qualified desktops companywide • Fewer desktops = lower total desktop licensing costs • Discount offered for companywide platform option • Renew agreement every three years or convert to perpetual license • Buyout option converts subscription licenses to perpetual licenses • Continue Software Assurance through new Open Value agreement

11. Core Cal Core Cal Open Value Customer Examples Open Value subscription option Open Value companywide option Open Value non-companywide option

12. Open Business (with Software Assurance) Up-front payment required Open Value AdvantagesBetter for resellers and customers Open Value • Ability to spread payments over three years • More Software Assurance benefits • Limited Software Assurance benefits • Two-year agreement that drives multiple agreement management challenges • OEM licenses tracked separately • Three-year agreement that is renewed • More likely to renew agreement • Easier to manage through a single agreement • Add OEM licenses to agreement by purchasing Software Assurance • No Software Assurance prorating • Software Assurance prorated • Automated purchase history and easy benefits administration Open Value Gives the Customer the Better Value

13. Why is Open Value Better for You? • Reseller owns the customer relationship • Helps drive services and license revenue • Accelerated/larger deployments • Larger orders • Reduces price barriers to selling with lower up-front costs • Delivers more customer value with Software Assurance • Easy to deliver with simplified order process

14. Customer challenges Multiple purchasers for multiple departments or locations Each purchase results in a new licensing agreement Difficulty tracking license acquisition history Multiple licensing agreements are hard to track and can lead to under- or over-licensing Open Value solution All licenses tracked on a single agreement Can include affiliates in other countries within the region Any version can be installed on any computer OEM* & FPP* licenses can be transitioned to volume licenses by purchasing Software Assurance A single Open Value agreement makes it easy to purchase and track licenses Customer benefitsSimplified License Tracking Agreement 100230 Xxxxxxxxxx …. 00 Xxxxxxxxxx… l 00 Xxxxxxxxxx.. 0090 Agreement 100231 Xxxxxxxxxx …. 00 Xxxxxxxxxx… l 00 Xxxxxxxxxx.. 0090 Agreement 100234 Xxxxxxxxxx …. 00 Xxxxxxxxxx… l 00 Xxxxxxxxxx.. 0090 Agreement 100232 Xxxxxxxxxx …. 00 Xxxxxxxxxx… l 00 Xxxxxxxxxx.. 0090 Agreement 100233 Xxxxxxxxxx …. 00 Xxxxxxxxxx… l 00 Xxxxxxxxxx.. 0090 *Qualifying OEM and FPP software licenses

15. Customer challenge No long-term technology plan causes upgrades to happen on a project-by-project basis Can be difficult and time consuming to secure budget for license upgrades New hardware often results in multiple versions of software Customers can find themselves falling behind with technology, which can lead to security and compatibility issues Open Value solution New version rights included Predictable annual payments ensure available budget Minimized up-front costs enable customers to upgrade more today Open Value helps to improve productivity, ease support and maintenance, and improve security Customer benefitsControl of the Software Upgrade Cycle

16. Customer challenge Need more Microsoft software than current budget allows Need to control and predict annual costs Customers purchase only some of the software licenses that they need because of budget limitations Open Value solution Spread payments over three years Easy to plan and budget for with predictable annual payments Acquire or subscribe to licenses More attractive pricing for companywide purchasing Open Value enables customers to acquire all the licenses they need and spread costs over three years Customer benefitsBetter Cost Management

17. Program Enhancements in 2006 New Version Rights Spread Payments Information Work Solution Services Windows Pre-Installation Environment Extended Hotfix Support Windows Vista for Enterprise Edition Virtual PC Express for SA Training – Extended Vouchers for Enterprise Customers eLearning Home Use Program Employee Purchase Program Enterprise Source License Program 24x7 Business Critical Support for Problem Resolution TechNet Plus Cold Backups for Disaster Recovery Corporate Error Reporting

18. Open Value Sales Strategy • Show the customer Software Assurance value • Tailored technology roadmap helps promote value of new version rights • Identifying key productivity, training, and support challenges helps build a custom value proposition • Software Assurance is a maintenance strategy that can be mapped to reseller support and service agreements • Open Value is the best way to acquire Software Assurance • More benefits than available through Open Business • Open Value should be positioned as a long-term strategy with many immediate benefits • Six-year period effectively shows cost benefits • Platform option maximizes benefits

19. Open Value Sales Process 1 Identify prospective customers • Needs to simplify license tracking • Wants to run the latest software versions • Up-front costs are a significant concern Qualify customers • Identify key business issues • Use qualifying questions Analyze needs • Tailored technology roadmap completed • Determine appropriate Open Value program options 2 3

20. Qualifying Questions • How many license agreements do you have right now? Which types? • Is it important to maintain a standard desktop? • Do you want to minimize up-front costs by spreading payments over three years? • How do you think your company size will change over three years? • Is it important for your business to keep up with new technology? • Is your license purchasing centralized? • How do you budget for new software releases? • Do you typically lease or purchase new computers? • Do your users request training on desktop software?

21. Next Steps • Review partner case studies • Build Open Value into your sales engagement strategy: Short-term and Long-term Opportunity • Train sales representatives • Open Value and Microsoft licensing training • Open Value sales guide and sales quick reference • Open Value customer resources – how to use • Utilize Demand Generating Resources to Tap Open Value Opportunity • SA Technology Roadmaps • Open Value Offers (Software Assurance, Windows Server System for Midsized Business) • Value Proposition: Simplify license tracking, Control Upgrade Cycle/Standardize, Manage Costs Sales Resources • Open Value sales quick reference guide and FAQ • Open Value customer resources • Microsoft Licensing Reseller Handbook • Volume licensing sales training • Microsoft License Configurator • Microsoft Partner Marketing Center • Microsoft Partner Learning Center • MVLS https://licensing.microsoft.com http://www.microsoft.com/thailand/openvalue/

22. Next Steps • Continue your Open Value sales training • Develop your sales plan • Start selling Open Value http://www.microsoft.com/thailand/openvalue/

23. End of Presentation - Quiz Time!

24. Quiz 1 Which of the following customers is most likely to be interested in Open Value companywide? • Buying Office Professional edition, wants to standardize • Buying Office Standard edition, wants to standardize • Buying Office Small Business Edition, doesn’t want to standardize • Buying Exchange Server, doesn’t want to standardize

25. Quiz 2 What is not a benefit to the reselling partner with Open Value? • Ability to sell customers an agreement so they can manage their licenses better • Ability to sell customers a company-wide or platform agreement • Ability to have a longer-term sales relationship with the customer • Ability to sell transactional licenses

26. Quiz 3 Which is not true about Open Value - subscription agreement? • I can have full Desktop Professional or Small Business platform on some desktops and one component on the rest in my Open Value • Desktop Professional and Small Business platform component products must be ordered for all desktops • Additional products can be ordered for agreements initiated with an Enterprise product for all desktops • Microsoft offers cost savings for the entire platform

27. Quiz 4 Which is not true about Open Value companywide? • I must order all platform products for all desktops • I can order one platform component and ad hoc platform component license & Software Assurance as needed • I can order all platform products for all desktops

28. Quiz 5 In Open Value - subscription, what are the license purchase options for the Core CAL and its components? The customer may purchase: • Only the core CAL • Exchange CAL & Windows Server CAL • Windows Server CAL, Exchange CAL & SharePoint CAL • Windows Server CAL, Exchange CAL, SMS CAL, & SharePoint CAL

29. Quiz 6 Which is the not a minimum requirement needed to initiate an Open Value agreement? • 5 license & Software Assurance (or Software Assurance) for Open Value non-companywide • 5 Desktops for Open Value companywide • 5 desktops for Open Value Subscription • 5 licenses without Software Assurance

30. Quiz 7 Which is true? • Software Assurance is optional in Open Value • Software Assurance is not offered in Open Value • Software Assurance is built in all Open Value agreements • Software Assurance is built in only for Open Value companywide • Software Assurance is not included in Open Value - Subscription

31. Thank you for your attention – Questions?