1. 1 Michele Todd Microsoft Alliance Manager, Quest Member since 1996 Competencies including: Gold ISV competency Silver Virtualization competency Presenter Name New Partner Opportunity: Leveraging new laws that require customer license compliance Partner Readiness

2. 2 Outline Unfair Competition Act (UCA) - New legislation now helps level the playing field The Partner Opportunity Resources

3. 3 Background IT is Fundamental to Today’s Business –Many businesses rely on IT to improve efficiency and gain competitive advantage –IT costs can be a significant part of total capital expenditures Competitive Disadvantages Exist –Businesses who pay for IT are at a competitive disadvantage when forced to compete against companies who use illegal IT Growing Momentum to Even the Playing Field –Compliance with legal IT use can be a competitive differentiator in the global marketplace –New laws are being created to help regulate unfair business practices and improve competitive landscape

4. 4 Background New laws are external initiatives driven by government entities –Microsoft supports these initiatives but plays no role in creating the laws Opportunities to help customers are being created –Microsoft partners are in an excellent position to enhance relationships and provide value to their manufacturing customers by ensuring they are in compliance with these new laws

5. 5 Impacts manufacturers around the world that export goods to states with UCA laws in effect New laws in the United States How Unfair Competition Legislation WorksHow Unfair Competition Legislation Works 5

6. 6 UCA laws require full IT compliance from manufacturers, meaning full software license compliance. This creates opportunity for you. UCA Creates Opportunities for Microsoft PartnersUCA Creates Opportunities for Microsoft Partners 6

7. 7 These laws apply whether the goods are imported directly into a state, or through a retailer or distributor How Unfair Competition Legislation WorksHow Unfair Competition Legislation Works 7

8. 8 About Unfair Competition Act (UCA) LawsAbout Unfair Competition Act (UCA) Laws Law Overview UCA laws are designed to protect law-abiding manufacturers who are forced to compete against companies that use stolen IT to reduce production costs and gain a competitive advantage. They affect all manufacturers whose products or component parts are sold in states where the laws are in effect. They apply even if the manufacturer resides outside the U.S. and even if the unlicensed technology is only used for administrative tasks such as inventory, logistics or accounting. If a manufacturer is not IT compliant, they risk penalties that could include liability, monetary damages, or an injunction against further sales.

9. 9 Outline Unfair Competition Act (UCA) - New legislation now helps level the playing field The Partner Opportunity Resources

10. 10 Strengthen Relationships, Increase SatisfactionStrengthen Relationships, Increase Satisfaction Make customers aware of new laws and help them navigate licensing –Informing your customers about new UCA laws enhances your position as a key provider of timely information that is relevant to running a business. –Microsoft partners play an important role as Microsoft licensing experts and customer advocates. –Your manufacturing customers need and expect your licensing knowledge and guidance.

11. 11 Strengthen Relationships, Increase SatisfactionStrengthen Relationships, Increase Satisfaction Guide your customers into compliance so they can enjoy related benefits: –Enhanced Global Reputation - successful global companies are increasingly focused on doing business with their supply chains and other companies that are governed by high standards of legal and ethical compliance –Safeguard their Business – avoiding business disruption by being properly licensed –Increased Competitive Advantage – compliance with legal IT use can be a competitive differentiator in the global marketplace

12. 12 Partner OpportunityPartner Opportunity As your customers’ trusted advisor, you are in the perfect position to help them comply with the new laws by ensuring that their licensing is up-to-date. Assist your manufacturing customers and strengthen your customer relationships by doing the following: 1. Proactively inform them of the new laws 2. Verify their Microsoft software license compliance 3. Encourage them to implement a sound software asset management program to help them sustain legal compliance

13. 13 Partner OpportunityPartner Opportunity Ensure they are aware of these new UCA laws and how their manufacturing business is impacted. Point customers to [insert local 3 rd party link] for more information on the laws. Laws require manufacturers to be fully IT compliant, which means fully licensed for all software in use. Communicate that the laws apply to those manufacturers exporting directly into a state as well as those exporting through retailers or distributors. Penalties for those found non-compliant can include liability, monetary damages, or sales injunctions. Let them know that you can help them review and verify their software license compliance. 1. Proactively inform them of the new laws 2. Verify their Microsoft software license compliance 3. Encourage them to implement a sound software asset management program to help them sustain legal compliance

14. 14 Partner OpportunityPartner Opportunity As their licensing advocate, ensure they understand Microsoft licensing and the related rules and regulations. Help them gather up the information necessary to verify their license compliance, including software acquisitions and software in use. Perform a comparison of licenses in use to those purchased and account for any deficiencies. Help them acquire any licenses they need to achieve compliance. 1. Proactively inform them of the new laws 2. Verify their Microsoft software license compliance 3. Encourage them to implement a sound software asset management program to help them sustain legal compliance

15. 15 Partner OpportunityPartner Opportunity Explain that SAM can help reduce organizational risk. Provide education on the benefits of SAM: Control costs and business risks for a stronger, healthier financial position. Optimize existing investments, so that you can do more with what you already have. Grow with your company's expanding needs in size and maturity through increased flexibility and agility. Help customers implement SAM practices to ensure they remain appropriately licensed on an on-going basis. 1. Proactively inform them of the new laws 2. Verify their Microsoft software license compliance 3. Encourage them to implement a sound software asset management program to help them sustain legal compliance

16. 16 Outline Unfair Competition Act (UCA) - New legislation now helps level the playing field The Partner Opportunity Resources

17. 17 Resources For Customers Third-Party Site – www.tradelaw.mywww.tradelaw.my Unfair Competition Act – (link to local UCA landing page) Software Asset Management - Learn how Software Asset Management (SAM) helps manage and optimize an organization’s IT assets. www.microsoft.com/samwww.microsoft.com/sam For You Visit the Microsoft Partner Network for more information, including partner materials you can leverage with your manufacturing customers. http://LinkToLocalMPN-UCApage