1. Microsoft Office 365 Partner Overview

2. Agenda
What does Office 365 means to partners?
What is Microsoft Office 365
Partner Opportunity
Start Today
Resources

3. Announcing Microsoft Office 365
BRINGING TOGETHER CLOUD VERSIONS OF OUR MOST TRUSTED COMMUNICATIONS AND COLLABORATION PRODUCTS WITH THE LATEST VERSION OF OUR DESKTOP SUITE FOR BUSINESSES OF ALL SIZES. 
Microsoft® Office 365 delivers the power of cloud productivity to businesses of all sizes, helping to save time, money and free up valued resources. Office 365 combines the familiar Office desktop suite with cloud-based versions of Microsoft’s next-generation communications and collaboration services: Exchange Online, SharePoint Online and Lync Online. Office 365 is simple to use and easy to administer – all backed by the robust security and guaranteed reliability you expect from a world-class service provider.
Microsoft Office 365 Includes:
Microsoft® Office Professional Plus
The world’s leading productivity tool now seamlessly connected and delivered with cloud services – for the best productivity experience across the PC, Phone and Browser.
Exchange Online
Cloud-based , calendar and contacts with always-up-to-date protection from viruses and spam.
SharePoint Online
Cloud-based service for creating sites to connect colleagues, partners and customers.
Lync Online
Cloud-based instant messaging, presence, and online meeting experiences with PC-audio, video conferencing and screen sharing.
Key Microsoft Office 365 Benefits:
Anywhere-access to , documents, contacts, and calendars on nearly any device
Work seamlessly with Microsoft Office and the other programs your users already count on everyday
Business-class features including IT-level phone support,  guaranteed 99.9% uptime, geo-redundancy, and disaster recovery
Pay-as-you-go pricing options which give you predictability and flexibility for all or part of your organization
Latest version of Business Productivity Online Suite (BPOS), which has millions of business users today
Microsoft® Office 365 for small businesses offers an easy-to-use set of web-enabled tools for small businesses, independent consultants and professionals looking for business-class productivity services. Working with the tools people know and use today, Office 365 provides anywhere access to , important documents, contacts, and calendars on nearly any device. It’s free for the first 30 days and then just $6 per user per month.
Microsoft® Office 365 for enterprises brings together cloud versions of our trusted communications and collaboration software with our familiar Office Professional Plus desktop suite. It is designed to help meet your IT needs for robust security, 24/7 reliability, and user productivity.
We have a variety of plans to meet the needs of businesses of all sizes and varying IT needs. Priced from $2 - $28 per month per user, each plan has the same 99.9% uptime guarantee and includes the security and support you expect from Microsoft. Office 365 offers great flexibility by allowing businesses to provide users access to only the services they need and pay-as-you-go pricing options.
Microsoft® Office 365 for education provides your institution with the same great communication and collaboration experiences used in enterprises around the world while saving time and money. Microsoft Office 365 for education delivers all of this and more while training students on familiar software which employers depend upon.

4. Microsoft Office 365 Value
DELIVERING THE POWER OF CLOUD PRODUCTIVITY TO BUSINESSES OF ALL SIZES, HELPING TO SAVE TIME, MONEY AND FREE UP VALUED RESOURCES
BEST PRODUCTIVITY EXPERIENCE
Work together, smarter
ACCESS ANYWHERE*
Solve problems from more places
WORKS WITH WHAT YOU KNOW
Familiar tools
ROBUST SECURITY AND RELIABILITY
99.9% uptime. Guaranteed.
IT CONTROL AND EFFICIENCY
Keeps you in control
Includes:
* Access from mobile devices depends on carrier network quality and availability
** “Connect Securely” is not a guarantee of 100% connection security.”

5. The Next Generation of BPOS
Simplified web access with streamlined user interface
New role based user access
New end-user access without a sign-on client
Federation with on-premises Active Directory enables single sign-on
New command line PowerShell access to manage Exchange Online services
New flexible billing options
New Office Professional Plus 2010 available as a subscription service, including Office Web Apps
New Lync Online combines instant communications and online meetings in a single service
Improved SharePoint Online and Exchange Online with new 2010 versions
Richer browser experience
Improved management
and control
Improved management
and control
New productivity features and capabilities*
The release of Microsoft Office 365 bring a wide range of improvements and enhancements over the current BPOS service
A streamlined user experience across the entire service
New flexible billing options enables monthly or annual billing options. For Monthly, you can add/remove users as needed and only pay for what you need.
New role based access enables more control and management within an organization. End Users, IT managers, Service procurement, user administration, help desk, etc.
With the role based access comes a much simpler web interface and a single access portal for all users, weather they are end users or IT managers. each role.
Microsoft Office 365 also brings true single sign on experience across all services. No more need for a Sign-in client to access the service, just run the Services Connector once on each PC for single sign on configuration.
For more experienced users and more advanced IT control needs, a new Remote Power Shell access is available to manage the Exchange service with the goal of expanding this in the future to other services
New Active Directory Federation enables IT managers to manage users from their existing local AD system.
For the individual productivity services, there are several changes and improvements as well:
Microsoft Office 365 includes the Office Professional Plus suite as a new component to the service. This is the most up to date version of Office applications delivered as a subscription service, on a per person basis. It also comes with the Office Web Apps for viewing and light editing of documents via the web browser
The new Lync Online service combines the previous Office Communications Online with the Live Meeting service for a single integrated service and application. Easily escalate 1:1 conversations into an online sharing session or schedule a multiparty online meeting with Outlook integration
SharePoint Online and Exchange Online have been greatly improved with expanded features and new user interface.
* Not all features are available in all subscription plans

6. Productivity Feature Improvements
Flexible service offering with pay-as-you-go, per-user licensing
The complete Office experience with services integration in Microsoft Office 365
Simplified user set-up to preconfigure services
Always the latest version of the Office apps, including Office Web Apps
Familiar Office user experience to access services
Rich browser experience with new Outlook Web App
Improved inbox management with conversation view
Integrated multi-mailbox search and retention policies
New personal archiving and compliance capabilities
Greater IT control with new GUI and Remote Power Shell
New personal My Sites to store important documents, and share expertise
Greatly improved Team and Project sites
New Extranet Sites to share information securely with customers and partners
New Intranet sites to publish news and information to all employees
Create simple public-facing web sites
Expanded storage - 10GB/tenant MB/user
Combines 1:1 text/voice/video chat with multiparty online meetings in a single application and service
Escalate conversations into ad-hoc online meetings with audio, video, PPT upload, and desktop sharing
Simplified access for external meeting participants
Contact photos and activity feeds
Federation with Windows Live Messenger
Streamlined user experience
All services have been improved across the board with new services, features, capabilities, and user experience. For specific detailed information about each major service, please see the specific service and technical information documentation and presentations.
Office Professional Plus is the latest 2010 version of the applications and will always be up to date, along with Office Web Apps, companion applications to Office client apps.
Exchange Online, SharePoint Online, and Lync Online are all based on the 2010 server technologies.
Note: Not all features are available in all subscription plans

7. Office 365 for Small Businesses and Professionals
Includes…
1-25 users (max of 50 allowed)
No IT needed
Easy to try out
Simple and easy to use
Works with Microsoft Office
Financially-backed 99.9% uptime guarantee
Self-Help and Community Support
KEY CAPABILITIES
Exchange , Calendar, Contacts & Personal Archive
25 GB Mailbox
ActiveSync Mobile Support
SharePoint Team Sites 1
Office Web Apps
Simple Public Website 2
Online Access databases
Lync Rich Client
Online meetings 3
Desktop Sharing
Multiparty IM & PC-to-PC Calling
Self-Help and Community Support
Office 365
(Plan P1)
$6/user/month
1 One site collection, authenticated external user access enabled for up to 50 unique users/month. 2 Includes ready-to-use templates, option to add custom domain.
3 Online meetings limited to 50 participants.

8. When Is Microsoft Office 365 for Small Businesses Not Enough?
There are several scenarios where Microsoft Office 365 for enterprises better meets the needs of small organizations
Need Active Directory Sync
Ability to sync/manage user groups 1
Need Archiving
archiving for legal compliance 2
Office 365
for
Enterprises
Need BES
Blackberry Enterprise Server 3
Growing to >50 users
More than 50 PC org today or tomorrow 4
24x7 Phone support
Higher touch vs. community support 5

9. Microsoft Office 365 for Enterprises User Segments: Right features for the right users
Kiosk Worker
Information Worker
Low cost offering to users that do not have messaging and collaboration capabilities today
Rich feature offering that meets a users full messaging and collaboration needs
User Segment Offers: Plan K Family
500 MB mailbox
No SharePoint storage allocation
Outlook Web Access (full OWA, not Lite)
POP Support
Messaging, calendar, contacts
Anti-Virus / Anti-Spam
Site search capabilities
Office Web Apps
User Segment Offers: Plan E Family
25GB mailbox
500MB SharePoint storage
Full Client Connectivity (MAPI/IMAP)
Mobility
Lync (real time communications)
Advanced Exchange & SharePoint capabilities
Office Professional Plus
On-premises access rights
Key
Differentiators

10. For Information Workers – Plan E Family
Components
Suites
Voice
Office 365 E4
$27/mo
Includes:
Exchange Plan 2
SharePoint Plan 2
Lync Plan 2
Office ProPlus
Office Web Apps
Lync Plus (Voice)
Office Pro Plus
Office 365 E3
$24/mo
Includes:
Exchange Plan 2
SharePoint Plan 2
Lync Plan 2
Office ProPlus
Office Web Apps
Voic & advanced archive capabilities
Forms, Access/Excel/
Visio Services
Office Web Apps
Office 365 E2
$16/mo
Includes:
Exchange Plan 1
SharePoint Plan 1
Lync Plan 2
Office Web Apps
, calendar, AV/AS, Personal Archive
Office 365 E1*
$10/mo
Includes:
Exchange Plan 1
SharePoint Plan 1
Lync Plan 2
Collaboration Portal
Conferencing
IM & presence
Add-Ons:
SP Online Storage (1GB) – $2.50
Extranet (PAL) – $2.00
Blackberry Support (BES) – $10.00
Add-Ons:
SP Online Storage (1GB) – $2.50
Extranet (PAL) – $2.00
Blackberry Support (BES) – $10.00
Offer Details:
Plan 2 include Plan 1 features
Office Web Apps requires SharePoint Online
Voice requires on-premises servers
Prices shown at ERP
Offer Details:
Plan 2 include Plan 1 features
Office Web Apps requires SharePoint Online
Voice requires on-premises servers
Prices shown at ERP
*Service Plan that maps to current BPOS
*Service Plan that maps to current BPOS

11. For Kiosk Workers – Plan K Family
Profile of a typical Kiosk Worker:
Spends 5-10% or less of their time on a PC
Shares a terminal with other kiosk workers
Hasn’t had access to a corporate mailbox in the past
Examples: manufacturing line worker, retail clerk, mail couriers
Plan K Suites built to address different Kiosk worker needs:
Microsoft Office 365 K1: high volume offer for this segment
Addresses most kiosk worker scenarios, where customers want to provide light and access to a company portal
Provides capability to view Office documents
Microsoft Office 365 K2:
Addresses kiosk workers that require information access & simple data input
Includes Office Web Apps editing capabilities for an additional cost
Components
Suites
Office Web Apps
$6.00
Microsoft Office 365 K2
$10/mo
Includes:
Exchange Kiosk
SharePoint Kiosk
Office Web Apps
SharePoint Online Kiosk
Not offered standalone
Microsoft Office 365 K1
$4/mo
Includes:
Exchange Kiosk
SharePoint Kiosk
Exchange Online Kiosk
$2.00

12. Enterprise Agreement Evolution
The updated EA provides new flexibility to transition users online in a single agreement
Updated Enterprise Agreement
Transition to Online Services at your own pace
No service cost in the year a user transitions
Move users back and forth between on-premise and Online Services
Match and adjust service plans to meet user needs
Respond to changes in your workforce size
Single Agreement for on Premise & Online Services
Click here for detail Microsoft Office 365 Pricing & Licensing information

13. Transitioning From BPOS to Microsoft Office 365
Designed for simplicity, control, and trust
What to Expect
Migrations to Microsoft Office 365 will begin shortly after Microsoft Office 365 is available
Customer remains in control for migration planning and scheduling
Uninterrupted messaging flow
Data safeguards and protection
24 x 7 IT level phone support
Planning
Desktop deployment – one-time setup required per PC (via Services Connector)
Operating System requirements - Windows 7, Windows Vista SP2, Windows XP SP3, Mac OS X 10.4
Productivity services requirements:
Web Based Access – IE7 on Vista, IE8 on XP, Firefox 3.x, Safari 4.x on Mac
Office Client Access – Office 2010, Office 2007 SP2, Office Mac 2008
BPOS customers will all be moved to Microsoft Office 365 over time, starting shortly after Microsoft Office 365 is released.
Transitioning to Microsoft Office 365 is designed to be as easy as possible, with the customer deciding when to move.
With all the improvements and enhancements with Microsoft Office 365, there are new minimum requirements to prepare for. Most customers should not any trouble preparing in advance for these requirements and since Office 2010 is delivered as part of the service upgrading is simple.

14. Partner Opportunity Expanded Offering, New Opportunities
New customers
New segments
New scenarios
Expand Reach
Advisor fees
Manage services
Annuity revenues
Grow Revenue
Increase Velocity
Increase capacity
Expand Scale
Increase margins
Expanded Offering Portfolio
New Hybrid Solution
Higher Advisor Fee
New SharePoint capabilities
Office Opportunities
Complete productivity sales
Marketing opportunity with Microsoft Office
Partner Example:
A Germany partner (meetyoo is the name not sure we can use the name) who focuses on Communication and web conferencing in the SMB Space. In the past they were very limited to their own hosting infrastructure. It was very difficult to expand their business. When Microsoft Online Service became available they decided to leverage MSFT infrastructure and focus their business on providing manage services. Their customers would purchase BPOS, Communicator, LiveMeeting License, the partner attach a monthly service to manage customer experience and account. The partner was able to sell over 40 deals in the last 10 months.
A another partner in the UK was able to increase their margin by over 40%, because they are able to bring in business consulting their business services offering. In the past it was very IT focus in solving an IT need of a customer, now the partner is able to identified customer business needs and provide IT solution to resolve the need.
Talk Track:
Microsoft Online Services provides Partners the opportunity to build long-term trusted relationships with their customers and be their trusted advisors for Online services. Partners will be able to see benefits in three core areas: expanded reach, revenue growth, and increased velocity.
We conducted a survey of more than 700 partners and talked to 40 VARs/SIs on a 1-1 basis. We also met with more than 250 partners of various types during our Partner Advisory Councils
Partners think 70% of the opportunity is incremental
One the most interesting findings is that partners are telling that an estimated 70 percent of Microsoft Online Services sales will be to new customers that Partners would not otherwise have had access to. And sales to existing customers are expected to increase annually as well.
This means new upgrades such as older version of Exchange, or (like Eddie Bauer) competitive upgrades like Notes, that they would not have been able without an Online delivery.
It also means new scenarios such as selling the deskless SKU in specific verticals like retail, manufacturing or public sector
Expansion to SMB - the ability to reach new customers who previously could not afford enterprise-class messaging and collaboration solutions
Recurring revenues
Partner-added Managed Services that are built around Microsoft Online Services are expected to yield up to 50 percent recurring revenues.
Manage Service opportunity rises with Microsoft Online Services. Partner can become customer IT support for , desktop and SharePoint management. MOS enable end user support.
Increase Capacity
Partner believe Online will reduce sales cycles but also delivery cycles as well as save on the cost of managing customer environments by taking advantage of the infrastructure we provide and the Online Administration Console. For instance I talked ABC Systemes in France and they are eager to use BPOS to enhance their SMB offering – now they feel they can scale to multiple customers with their existing sales force and delivery team. 14

15. Business Productivity Online Suite Partner Model
12% Net-add
6% Residual
18% year one
Microsoft
Partner
Customer
Fees
Sale
Illustrative Examples
Number of seats sold
500
Customer Cost Per Seat/month
$10
Total Cost per year
$60,000
Net-Add fees paid to 12%
$7,200
Annual recurring 6%
$3,600
Total Partner Fee Year 1
$10,800 15

16. What Does This Mean Lead with the Future
Office 365 is ready for customer of all sizes
Office 365 brand drives market awareness and demand
What does this mean to you as a partner?
Lead with the Future
“Now is time to get on the Online train”
Office 365 is a major step forward in productivity online service delivery. Now is the time for partners to accelerate their investment in online services and drive customer engagement.
Office 365 is ready for customers of all sizes
“Office 365 is a viable option for all of my customers”
The new features and functionality of Office 365 will be able to satisfy the needs of all customer sizes.
Office 365 brand drives market awareness and demand
“Market demand will decrease my sales cycle”
Office 365 brand will bring the market awareness and demand that was missing with BPOS. Customers will be asking for Office 365.
Expanded Offering New Opportunity
“I can make more money with Office 365 than ever”
Office 365 brings new offering with additional bundles and pricing offers that will help drive new revenue opportunity. With new capabilities around SharePoint and Lync, partners can build additional services revenue.
Expanded offering new opportunity

17. Start Today
Signup to become a Microsoft Online Services Partner (
Visit QuickStartOnlineServices.com
Learn and train on Microsoft Office 365
Stay connect through our Newsletter
Start your customer on BPOS and educate with Microsoft Office 365
Connect with Microsoft Account Manager