3. “This company was built on enabling broad ecosystems and broad partner opportunity. We now need to redefine what it means to build an ecosystem in a mobile-first, cloud- first world. That is what we will continue to push for.” —Satya Nadella, CEO, Microsoft Agenda

4. Customer Direct CSP Direct Partner Microsoft Office 365, Microsoft Intune, Enterprise Mobility Suite 20% discount (off MOSP)+ 8% incentives Azure 15% discount + 8% incentives CRMOL 25% discount + 8% incentives Dynamics AX 30% discount + 8% incentives Customer Indirect Reseller CSP Indirect Partner Microsoft Indirect partner Direct partner discount + % incentives Reseller Margin from distributor + % incentives (managed partner)

5. Price & Payment Relationship Partner-Customer Agreement Microsoft Cloud Agreement (Online Service Terms, SLA) Direct Partner Responsible for Customer Acceptance OST is a reference document, incorporated into the MCA, available online Price & Payment Relationship Microsoft Cloud Reseller Agreement MCRA Program Guide

6. Price & Payment Relationship Partner-Partner Agreement Microsoft Cloud Agreement (Online Service Terms, SLA) Indirect Partner Responsible for Customer Acceptance OST is a reference document, incorporated into the MCA, available online Price & Payment Relationship Microsoft Cloud Distributor Agreement MCDA Program Guide Price & Payment Relationship Partner-Customer Agreement

7. Per User Fixed Term Subscriptions O365, Intune, EMS, CRMOL, Dynamics AX, Windows, Secure Productive Enterprise Consumption (PayGo) Azure LicensingPricing 12 month per user subscription Add seats during subscription Currently NO ETF for removing seats or cancelling subscription 20% margin – O365, Intune, EMS 25% margin – CRM OL 30% margin – Dynamics AX No waterfall Extremely limited empowerment Billed in arrears for actual usage in previous month 15% margin No waterfall No empowerment

8. MPSA GROWTH CSP 3 mins Enable foundation for Managed Services Providers to sell O365 Enable foundation to sell all Microsoft Cloud Services Continue addressing key gaps for Cloud in CSP

9. CSPMPSAEA Outsource purchase, provision, mgmt Support and billing from partner No software “Per user” subscriptions - < 500 seats* Azure – any customer segment 3 year, company wide commitment Price waterfall and concessions <500 seat customers for “per user” But… any customer for Azure Customers with existing EAs will be challenging Focus on new customers, not migrating existing Managed Services – Partner Led Annuity – 500+Software and Cloud – 250+ One non-expiring agreement Multiple purchase accounts Short and long term OLS subscriptions Perpetual software and SA Company wide option CY17 Software assurance required Complex software and cloud scenarios

10. CSPOpenAdvisor Transactional & Annuity Company wide options Software & Cloud – Cloud suboptimal 2 Tier Channel - Disti/Reseller Web Direct motion Minimum partner requirement No margins – incentives only For cloud in SMB breadth – CSP is the hero motion However, software requires Open Consider requirements & experience across programs Do the math Outsource purchase, provision, mgmt Support and billing from partner No hybrid capabilities (use term before) For “per user” cloud - < 500 seats For Azure – any customer segment Managed Services – Partner LedSoftware – SMB < 250Cloud – Web Direct

11. CSPSPLA Monthly subscriptions Procs, Cores, User SALs No waterfall or pricing concessions Datacenter provider License Mobility, Azure Hub, O365 SCA Consider your customer’s needs Do the math Evaluate Microsoft’s Cloud roadmap Consider Azure as Datacenter Provider Outsource purchase, provision, mgmt Support and billing from partner No hybrid capabilities For “per user” cloud - < 500 seats For Azure – any customer segment Managed Services Partner Led Hosting Microsoft Software

12. PRICE $100 $50 $60 $90 $80 $70 MOSP Open CSP (Direct) EA AEA D PRICE $20 $10 $12 $18 $16 $14 MOSP Open CSP (Direct) EA A (from SA) EA D (from SA)

13. Software Only HybridPer User Cloud Lead with EA MPSA if transactional Lead with EA MPSA secondary Lead with EA MPSA secondary Lead with EA or CSP (partner managed) MPSA secondary Lead with MPSA EA secondary Lead with MPSA EA secondary Lead with MPSA EA secondary Lead with MPSA or CSP (partner managed) EA secondary Azure EPG (Major/CAM-E) SMS&P (CAM-S/CTM) SMB Top Partners SMB Breadth Lead with MPSA Open secondary Lead with MPSA Or Open + CSP Lead with CSP MPSA secondary Lead with CSP MPSA secondary Lead with Open/OV Lead with CSP + OpenLead with CSP

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15. LEARN MORE Visit us at the MPN booth Attend CSP sessions at WPC Visit MPN, Partner Center, and Yammer