Enterprise Software Advisor (ESA) 2.1 Release

1. Enterprise Software Advisor (ESA)2.1 Release Channel Partner Operations Training May 2007

2. Overview of the ESA Program • Align ESA fee payment with Microsoft Licensing Strategy • ESA 2.0 launched in July 2006 • Clearly define ESA roles and responsibilities • Increased value to customers • Accurately measure fee payment according to ESA performance • ESA 2.1 – Enhancements to ESA 2.0 model • Launch in August 2007

3. ESA 2.1 Updates • SAB Fee measurement changes • SAM Fee measurement changes • Updates to Fee Statement • Reports available on Explore.MS • Retirement of Customer Satisfaction fee type • All invoices generated Aug 1, 2007 and after for enrollments with a start date on or after July 1, 2006 will be subject to the ESA 2.1 fee structure.

4. SA Benefits Fee Payment Changes • Enrolments must have 3 or more entitlements activated to be included in fee calculation • SAB fee is only paid on PO Type BEC (Basic Enterprise Commitment) • SAB fee will no longer be paid on PO Type TUP & NE (True Up & New Order) • Fees are calculated by benefits activation percentage by fee level • Activation percentage is calculated at each individual fee level, as opposed to an aggregation of all enrolments and fee levels • Activation threshold has increased

5. Benefits Activation Percentage Average Benefits Activation Percentage is calculated by dividing: Total number of enrolments with 3 or more SA benefits activated ------------------------------------------------------------------------------------- Total number of enrolments with 3 or more SAB entitlements/eligible benefits As-is SAB Fee To-be SAB Fee

6. SA Benefits Services Fee Matrix Fees are measured at fee level rather than an aggregation.

7. SA Benefits Activation Example • An ESA has the following: • 20 level A2 enrolments with more than 3 entitlements • 15 have 3 or more activations • Fee Level = A2 • Level A2 new EA: Invoice amount (BEC) = $250,000 • SAB fee calculations: • SAB Activation Percentage = 75% (15/20 * 100) • SAB Ratio is >= 70%, SAB fee is 1.0% • Fee Payable is 1% of $250,000 • SAB Fee = $2500

8. SAM Fee Changes Changes to Software Asset Management (SAM) fee payment: • Only payable on invoices with a PO type of BEC. • Two sections of SAM Fee: • SAM Requirement Fee • This is a requirement for all fee levels • However, only fee level A1, A2 & B are eligible for SAM Requirement Fee • SAM Report Deliverable Fee • Only fee level C & D only are eligible for SAM Report Deliverable Fee • Customer Satisfaction Fee is now integrated into the SAM fee

9. SAM Fee Changes (cont.) As-is SAM Fee Structure To-be SAM Fee Structure

10. SAM Requirement Fee • SAM Requirement applies to all fee levels • Only fee level A1, A2 & B are eligible for SAM Requirement Fee • Fee is only paidon BEC (Basic Enterprise Commitment) PO Type • Minimum 2 MCPs • Exam 70-123 (Planning, implementing, and maintaining a Software Asset Management program) • 1 MCP certification per 50 EA enrollments (guideline) • Minimum of 3 published customer references on ESA website • SAM services to be referenced on ESA website • Validation of requirement met: • Currently all partners meet the requirement of 2 MCPs & APOC records reflect this . Partners must notify their PAM if their certification status changes. • Partners to provide the website URL to their PAM showing the listing of SAM Services & 3 X customer references posted.

11. SAM Report Deliverable – Level C,D • Fee is paid on BEC invoices for years 2 and 3 only • Defaults to 0 in year 1 and is not paid on year 1 invoice • Payment of fee is dependent on MS Subsidiary assessment and review of partner compliance with actual provided SAM services for level C or D customers. • Partners have two options: • Perform a License Reconciliation Analysis of Microsoft products for the customer,including: • Volume License Position • Customer’s current usage • Proof of licensing on Retail and OEM products • Reconciliation exercise to establish customer’s entitlements vs. usage • Qualitative Assessment of top reasons for discrepancy (if discrepancy is significant) • Perform a SAM Current State Assessment (CSA) based on ISO 19770-1 of customer processes, including an assessment of: • Organizational Management processes for SAM • Core SAM processes • Primary Process Interfaces • For more information on the above options, refer to Malcolm or Julanne

12. SAM Report Deliverable Fee Notification to APOC • ESAs to notify APOC of SAM Report Deliverable fee qualification via APLQuest with MS Account Manager and PAM copied • SAM Report Deliverable notification must be sent to APLQuest 30 days prior to anniversary date for year 2 and year 3 to allow time for verification • Notification must include the following: • Enrollment number, year and customer name • Description of SAM Service delivered • Email from ESA to MS Account Manager and PAM • Email approval from MS Account Manager or PAM to ESA • Verification by MS Account Manager • Fee escalations to the PAM

13. SAM Report Deliverable Fee Notification to APOC (cont.) • Electronic notification to be sent to ESAs 60 days prior to anniversary date • Reminder to ESA to submit SAM Report Deliverable Fee notification to APOC within 30 days prior to anniversary date of EA Enrollment • MS Account Manager will be copied if their name and email address is completed on the EA Enrollment • PAMs will not be copied

14. ESA 2.1 Fee Model Refer to chart below

15. Operational Changes Fee Statement Enhancement ESA Reports available on Explore.MS

16. ESA Fee Statement Enhancement • Fee Statements are available in Explore.MS (mid-August) • Out of scope for ESA 1.0 Fee Statements • New fields for End Customer PO # and Ramped (Yes/No) • SAB Activation field shows achieved activation percentage instead of level of activation • New Revenue column in fee description section shows revenue amount per fee type that fee % is calculated against

17. Fee Statement Enhancement Example • New Fee Statement shows: • SAB Services Ratio Percentage • Customer PO Number • Ramped Payment • Revenue Column

18. Reports in Explore.MS • Two new reports are available in Explore.MS\ESA Reports: • ESA SA Benefits Detail Report • ESA Fee Statements

19. ESA Fee Statements in Explore.MS Definition of Payment Status: Awaiting Credit Invoice – Invoices pending for credits to be applied Awaiting ESA Invoice – Waiting for ESA to submit ESA invoice to MS Invoice Awaiting Fee Payment – ESA invoice has been approved by MS in MS Invoice, pending for fee to be paid Completed – Fee Statements where fees are paid by MS Hold – not applicable to APOC Rejected – not applicable to APOC

20. ESA Fee Statements in Explore.MS (cont.) This is a sample screenshot that shows the list of invoices with Payment Status = Completed

21. ESA Fee Statements in Explore.MS (cont.) • Note: • APLQuest will continue to send fee statements to ESAs until ESA 1.0 cease to exist • Long term plan is to enable ESAs to download ESA 2.x fee statements from Explore.MS • - ESAs to submit ESA invoice within 30 days of Fee Created Date

22. SA Benefits Detail Report New ESA SA Benefits Detail Report Report available in Explore.MS New fields (from existing SA Benefits report): Enrolment Customer Name Enrolment Start Date Enrolment End Date Fee Level

23. SA Benefit Details Report (cont.) From Explore.MS, navigate to ESA Reports\ESA SA Benefits Detail

24. SA Benefit Details Report (cont.) New fields added to the SAB report

25. Escalations and Queries • Contact the ROC for information on: • Where to find information pertaining to SAB activation • How to read the partner fee statement • Status of partner actual fee payment • Queries on invalid contact categorization