1. Steven Clark Smile Business Products  Network Services Manager  Managed IT Clients vCIO  MCITP: Server Administrator  MCITP: Support Tech & Virtualization  MCSA: 2008 & 2012  sclark@smilebpi.com - 916-481-7695 sclark@smilebpi.com

2. Audited by Microsoft? WHAT TO EXPECT – GOOD, BAD, AND RELIEF

3. You are Not Alone  30,000 Customers Expected to be audited each year  Number is rising  Last 6 Years – 1 Audit  Last 6 Months – 4 Audits  Small purchases are not Exempt  Non Profits are not Exempt  Volume License constitutes a general minimum of 4+ licenses through OEM Hardware Provider, or 5+ licenses through Software Reseller.

4. Why Me? How did my Information get obtained by Microsoft?  Registered a Volume License Agreement to customer address  Purchased Volume license through authorized reseller – CDW, Ingram Micro, Tech Data, etc.  Purchased Volume license through authorized Hardware reseller – Dell, Lenovo, etc.  CDW Customers direct registration to MS Database.  Non Profit Organizations purchase directly through Tech Soup or Authorized Charity Reseller, Volume License Agreements are generated using Customer 501C3 information.

5. Types of Audits  Microsoft Assisted or Governed:  Self Certification  Software Asset Management Review  MS Lawsuit or Piracy Report  Customer or IT Provider Assisted:  IT provider Compliance Scan  Customer Request  Quarterly/Reoccurring Business Review

6. Self Certification Steps Phase 1  Meet with Customer and explain Audit and Requirements  Review Software Purchased and Identify Vendors who supplied Software  Obtain Volume Purchase Authorization/Agreement Numbers  Audit or output Retail License Keys summary  Purchase software licensing to meet compliance requirements  Prepare Response  Send Response

7. Self Certification Phase 2  Currently within compliance or  Ordered sufficient licenses to get within compliance.  Signed by Corporate Officer on Company Letterhead and returned via Email.  (Example)

8. Software Asset Management Review Phase 1  Meet with Customer and explain Audit and Requirements  Fill out Deployment Summary for all software deployed on customer network (depending on how license documentation, process can take a couple hours to multiple days)  Response to MS via Email with Attached XLS file  MS will respond with Estimated License Ownership Position and request further details and proof of licenses.  (Example Summary Deployment)

9. Acceptable Proof of Licenses Phase 2  Volume License Agreement/Authorization Numbers  Online Subscription proof of Invoice or Product Key  Supplier/Vendor Invoice with Detailed License Purchase  Tracking ID – Used for User CALs  Product Keys on Certificate of Authenticity  OEM/Retail Keys for QTY 5 or Higher, only 5 keys need to be supplied  Volume Agreements note License Quantity  Supplier invoice must show Product Quantity  Return LOP XLS with responses  (Example LOP Summary)

10. Estimated Ownership Position Phase 3  MS follow up questions  Return of EOP document stating what Microsoft Agrees the customer owns and is entitled to use.  Compliancy requirements outlined as to what the customer is required to purchase to correct deficiencies.  Volume license quote from authorized vendor – CDW, Tech Soup, Dell, etc.  Return of proof of purchase to MS to add to customer EOP document.

11. Tips  Do not blow off or ignore the emails or phone calls  Cooperate and be friendly - do not hesitate to ask clarifying questions or reach out to your rep for answers  When communicating ensure it is in writing  Understand your rep is forwarding your responses to a Licensing Rep to do lookups  Do not supply false information or lie about details  If you are not compliant, agree to the shortfall and get working on at least a quote for your customer, sending the quote will show good faith and generally the MS rep will extend response deadlines out but they do not honor quotes as valid proof of ownership.

12. More Tips  If you need more time, ask and make sure you communicate to your rep about needing an extension.  The more proof the faster you get done.  Product Keys and Volume Agreement Numbers are King  Showing that you are working with customer to become compliant will avoid fines.  Failure to acknowledge or provide proof will result in potential fines from Microsoft.

13. Learn from the Audits  Brush up on your MS licensing requirements for active deployments (until they change them, again !)  Get Organized!!!  Increase level of documentation  Digital records of licensing and purchases  Take pictures and add them to client profile  Scan CALs, Downgrades, OEM Sheets into client profile  Talk to your customers about the need for trusted partner to help with licensing purchasing and audits

14. Questions & Answers