1. Introduction of Online Services into Volume Licensing Microsoft Business Network & MSN Messenger Connect Worldwide Licensing and Pricing December, 2003

2. 1 Intro & Agenda Intro What are Online Services? Intro of Online Services on the Volume Licensing (VL) Jan. 2004 Price List –Microsoft Business Network (MS Business Network) –MSN Messenger Connect (MSN Connect) Agenda MS Business Network Product Intro (~10 min) MSN Connect Product Intro (~10 min) Online Services in VL Channel (~20 min) –Licensing Model –Program Impact Q&A (~10 min)

3. 2 Microsoft Business Network Product Introduction Marcus Schmidt Product Manager, MS Business Solutions

4. 3 Customer Example: Your Company Before MS Business Network E-mail or web service access through browser EDI VAN Fax Fax Automated Fax / e-mail E-mail Current Problems Customer forced to deal with partners in 1: Many way Customer forced to deal with partners in 1: Many way Only partial integration with ERP systems Only partial integration with ERP systems Many manual processes; possible lost or incorrect information Many manual processes; possible lost or incorrect information Large Retailer International Vendors & Service Providers TransportationManagement Domestic Vendors Mid-sized retailer using auto PO generation Retail Outlets & Specialty Retailers Retail Outlets & Specialty Retailers

5. 4 Customer Example: Your Company Using the Basic Service of MS Business Network ERP Solutions Orders to Cash Supplier Visibility Logistics PaymentSettlement Register Large Retailer International Vendors & Service Providers TransportationManagement Domestic Vendors Mid-sized retailer using auto PO generation Retail Outlets & Specialty Retailers Retail Outlets & Specialty Retailers

6. 5 Customer Example: Your Company Using the Optional Community Building Service in MS Business Network Large Retailer International Vendors & Service Providers TransportationManagement Domestic Vendors Mid-sized retailer using auto PO generation Retail Outlets & Specialty Retailers Retail Outlets & Specialty Retailers

7. 6 Customer Example: Your Company After MS Business Network EDI VAN Benefits Assistance in building up partner community Assistance in building up partner community Integrates communication methods Integrates communication methods Complete inter-business processes Complete inter-business processes Integration with GP at your company and your Trading Partner’s ERPs Integration with GP at your company and your Trading Partner’s ERPs Leverage of Office as a business process tool Leverage of Office as a business process tool Large Retailer International Vendors & Service Providers TransportationManagement Domestic Vendors Mid-sized retailer using auto PO generation Retail Outlets & Specialty Retailers Retail Outlets & Specialty Retailers

8. 7 All business documents sent via MBN are available in Microsoft Outlook MBN Integration – Microsoft Outlook

9. 8 Microsoft Excel is the MBN template client and is used to view, modify, create, and send MBN documents MBN Integration – Microsoft Excel

10. 9 MBN solutions documents are inserted directly into Great Plains software and are also always visible within Microsoft Outlook and Excel Screen Shot is needed MBN Integration – Microsoft Great Plains

11. 10 MS Business Network Business Process Templates Business document definitions (ex. Order, Order Change, Ship Notice, Invoice, etc…) Collaboration Definitions describing how these documents are related, viewed, and created between companies Application Integration Profiles that describe how the solution integrates with Microsoft Office, MBS applications, and other apps via BizTalk Server

12. 11 Product Introduction Todd Biggs Product Manager MSN

13. 12 MSN Messenger Connect Overview MSN Messenger Connect for Enterprises (MSN Connect), is an online subscription service enabled through and ISV solution that delivers a managed, audited, and logged instant messaging (IM) infrastructure for enterprise businesses connecting their employees to partners, vendors, and customers on the public MSN Messenger network. Establishes enterprise control over Instant Messaging (IM) identities Enabling logging, auditing, and IM policy management Enterprise IM control with anytime-anywhere and domain level control A companion service to Microsoft Office Live Communication Server 2003 Connectivity to the 100+ million people on the MSN Messenger network

14. 13 Situation for Instant Messaging (IM) Improved communication driving usage of IM Presence: timely answers from contacts Reduces telephone calls & e-mails 100 Million Workplace IM Users Internal employees, customers & partners 30% growth in users 100% growth in minutes Estimates range from 200M (GG) to 500M (Network provided) Fragmented IM market Many startups Proprietary technologies Consumer networks own users Security and manageability are top issues for IT departments 38% of information workers have at least one public IM client Public IM moves as clear text across the firewall Entry point for viruses and software conflicts Lack of authentication and namespace integration

15. 14 Microsoft Smart Connected Organization INFRASTRUCTURE SERVICES Windows SharePoint Services Windows Rights Management Services Windows Media Services REAL-TIME COLLABORATION BUSINESS PROCESS COLLABORATION ASYNCHRONOUS COLLABORATION

16. 15 MSN Connect: Identity Control IM Server & Service Platform IdentityMgmt Archiving Reporting Alerts 1.Corporate Ownership 2.Protecting Intellection Property 3.Naming Conventions 4.Managed Namespace

17. 16 MSN Connect: Archiving & Reporting IM Server & Service Platform IdentityMgmt Archiving Alerts Reporting 1.Log text conversations 2.Reconstruct conversations 3.Generate reports and audits

18. 17 Technical Overview

19. 18 Online Services in VL Channel - Licensing Model - Program Impact Mark Kuo Product Manager WWLP

20. 19 Online Services in Volume Licensing Goal - Create consistent licensing model to be applied to all online services entering VL Core Licensing Model: Services Subscription License (Services SL) ● Annual fee required for activation and maintenance of services for each company ● Each Service SL will have its distinct set of benefits derived from basic services User Subscription License (User SL) ● Annual fee required for each individual user that accesses the online services. ● The user may use the online services from multiple devices. Add-on Subscription License (Add-on SL) ● Required for access to add-on services or functionalities.

21. 20 Licensing for MSN Connect * Each Services SL grants one active domain and one blocked domain; additional Services SL can be acquired additional domains @DomainA @DomainB Services SL* - annual fee for activation & maintenance of basic service User SL – annual fee required for each user Add-on SL – (TBD) Server License – available from certified MS partners Company A Premises MSN Connect

22. 21 Licensing for Microsoft Business Network 1.0 MS Business Network 1.0 Company A Premises Company D Premises Company C Premises Company B Premises Services SL* - annual fee for activation & maintenance User SL – annual fee required for each user Add-on SL – annual fee for optional Community Builder functionality * Number of Services SLs required matches the number of Server Licenses required. Note, for MS Business 1.0, customers may be eligible to receive a free Services SL. Server License – required server license per server installation

23. 22 Special SL Grant for Microsoft Business Network 1.0 Services SL is granted for free with Microsoft Business Network version 1.0. For customers who acquire a Server License for Microsoft Business Network 1.0 prior to March 1, 2005, we make a one-time non-perpetual license grant of a Services SL until the end of the customer’s term of enrollment. –Customers who acquire a license and software assurance coverage for Microsoft Business Network 1.0 server will receive upgrades and still be able to use the Services SL until the end of their enrollment terms. –Upon renewal of the Volume Licensing enrollment, the one-time Services SL grant is no longer effective and such customers may acquire a Services SL.

24. 23 Summary of Licenses Required MSN ConnectMicrosoft Business Network 1.0 Services SL One active domain One block domain Free in v.1.0 User SL Add-on SLN/A Optional Community Builder functionality Server LicenseAvailable from certified MS Partners L&SA licensed on a Per Server basis

25. 24 New Agreement For Open License Value, Select Agreement and Enterprise Agreement (EA): At the beginning of the contract, the customer orders the quantity of desired subscription licenses Customer pays for 36 months of subscription Customer may spread payments on the anniversary dates of the contract Order subscription licenses Customer pays 36 months of subscription (can spread payments over 3 years) = payment

26. 25 New Agreement For Open Business and Open Volume Agreements: At the beginning of the contract, the customer orders the quantity of desired subscription licenses Customer pays for 2 years up front Order subscription licenses Customer pays for 2 years upfront = payment

27. 26 Existing Agreement For Enterprise Agreement (EA): Initial Order of SLs and Adding SLs after Initial Order –Customer makes initial order at any time and pays for the stub period (between order date and next anniversary), prorated monthly (i.e. 9 months) –At next anniversary, pay for the number of whole years remaining in the agreement after that anniversary date, spread over the remaining anniversary dates. Order subscription licenses At next anniversary, the customer pays for the number of whole years remaining in the contract as of the true-up anniversary (can spread payments over the remaining years) = payment Customer pays for the stub period (between order date and next anniversary), prorated monthly (i.e. 9 months)

28. 27 Existing Agreement For Open License Value and Select Agreement: Initial Order of SLs and Adding SL after Initial Order –Customer orders additional SLs at any time –Customer pays for the stub period, prorated monthly –Customer may spread payments on the anniversary dates of the agreement Order subscription licenses Customer pays for the number of months remaining in the contract (can spread payments over the remaining years) = payment

29. 28 Existing Agreement For Open Volume and Open Business Agreements Initial order of SLs and Adding SLs after Initial Order –Not possible –We recommend that customers start a new Open Authorization, as two full years of the subscription must be paid up front, due to operational structure of the Open Agreement Customer should not add to an existing Auth #, to avoid confusion with termination of existing agreement = payment

30. 29 Activating Online Services MSN Connect For activation, customer, using their valid license agreement details, must go to MVLS site to click on a link for registration and for Online Service Keys. The link in MVLS is: http://www.microsoft.com/net/services/msnmc/licensing For adding SLs, customer should place the order and return to the same site to edit the number of users and domains. Microsoft Business Network For activation, customers should contact the Microsoft Activation Center by going to http://www.microsoft.com/licensing/ and clicking on the Online Services Product Key link to get your local call center number. Customer will receive their Online Service Keys upon phoning the call center with their valid license agreement details. http://www.microsoft.com/licensing/ For support entitlement, customers should register at: http://www.microsoft.com/BusinessSolutions/MBSRegistration For adding SLs, customer should place the order and return to Support Entitlement site to edit the number of SLs.

31. 30 Other Licensing and Program Details Availability Microsoft Business Network version 1.0 –Open Volume and Open Business: Jan., 2004 –Open License Value, Select License, EA, and EA Subscription: Feb., 2004 MSN Connect –Not available in any Open programs –Select License, EA, EA Subscription: Jan., 2004 Software Assurance Availability Software Assurance is not available for SLs, as these license are already subscription services with unique benefits Enterprise Agreement Online services sold through the EA as Additional Products No true-down for User SLs Product Pool MS Business Network and MSN Connect licenses are included in the “Servers and Business Solutions” Pool

32. 31 Resources Microsoft Business Network http://www.microsoft.com/BusinessSolutions/mbn Marcus Schmidt marcussc@microsoft.com marcussc@microsoft.com MSN Connect http://www.microsoft.com/net/services/msnmc Todd Biggs toddb@microsoft.com toddb@microsoft.com Licensing & Pricing http://infoweb/licensing Mark Kuo mkuo@microsoft.com mkuo@microsoft.com

33. Appendix

34. 33 Estimated Retail Prices for Select A Level ComponentEstimated Retail price MS Business Network version 1.0 MBN Standard Server 1 YR L&SA $366 MBN Standard Server 1 YR SA $74 MBN Professional Server 1 YR L&SA $1,835 MBN Professional Server 1 YR SA $367 MBN Services Subscription 1 YR N/A MBN User Subscription 1 YR MBN Community Builder Add-On 1 YR MSN Connect MSN Messenger Connect Services Subscription 1 YR $2,377 MSN Messenger Connect User Subscription 1 YR $10

35. 34 License Point Values ComponentValues Microsoft Business Network version 1.0 MBN Standard Server 1 YR L&SA 2 MBN Standard Server 1 YR SA 1 MBN Professional Server 1 YR L&SA 8 MBN Professional Server 1 YR SA 3 MBN Services Subscription License 1 YR N/A MBN User Subscription License 1 YR 0 MBN Community Builder Add-On Subscription License 1 YR 0 MSN Connect MSN Messenger Connect Services Subscription 1 YR 38 MSN Messenger Connect User Subscription 1 YR 0