AEP Retirement and updates in reselling Academic licensing 10/21/2019 7:27 PM AEP Retirement and updates in reselling Academic licensing September 2019 Prepared for Microsoft Partners © Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Agenda This deck is an overview of: 10/21/2019 7:27 PM Agenda This deck is an overview of: Announcing the AEP program retirement What the AEP retirement means to partners Partner responsibilities for selling in Education Education licensing programs & Sales guidance CSP / Partner Center experience changes Education resources Q&A © Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Announcement – AEP program retiring in October 2019 Impacted Audience: All Microsoft channel partners Summary: As communicated in September 2019, we will retire the Authorized Education Partner (AEP) program Oct 1, 2019. As a result: Partners will no longer be required to have an AEP partner certification to transact with Education customers Distributors will no longer need to check reseller AEP credentials but will still need to ensure academic licenses are being sold to accredited academic customer

What the AEP retirement means to the channel 10/21/2019 7:27 PM What the AEP retirement means to the channel What changes Why What does NOT change – partner responsibilities Indirect reseller Yearly AEP certification no longer required to transact Education products; All partners can resell academic licensing Simplification of the transaction process Education Customer eligibility – Academic Licensing is available to all Qualified Education Users (QEU). See QEU definition.  Education Customer verification – it is the responsibility of the distributor and reseller to verify that the customer is a QEU prior to selling academic licenses. Compliance – Partners should be ready to provide documentation in the event of an audit by Microsoft. Direct reseller Yearly AEP certification no longer required to transact Education products Education Customer eligibility – Academic Licensing is available to all Qualified Education Users (QEU). See QEU definition.  Education Customer verification – it is the responsibility of the distributor and reseller to verify that the customer is a QEU prior to selling academic licenses. Distributor Validation of reseller AEP certification no longer required before transacting Education products with resellers Education Customer eligibility – Academic  Licensing is available to all Qualified Education Users (QEU). See QEU definition.  Education Customer verification – it is the responsibility of the distributor and reseller to verify that the customer is a QEU prior to selling academic licenses. © Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Selling in Education - Partner responsibility Academic licensing is available to all Qualified Education Users (QEU), including educational institutions, administrative offices, and boards of education, Libraries and Museums. Note: L&M are not eligible yet for academic pricing in CSP. For geography-specific definition of QEUs eligibility, visit the Microsoft Volume Licensing site. It is the responsibility of Partners to verify that the customer is a QEU prior to selling academic licenses. Partners should be ready to provide documentation in the event of an audit by Microsoft.

Microsoft Education licensing programs Microsoft Open Value Subscription for Education Solutions (OVS-ES) A commitment-based Microsoft licensing agreement for academic organizations with 5 to 999 or more full-time users that license one or more desktop platform product or platform cloud service organization-wide. Software Assurance is included, and student use benefits are available. Microsoft Enrollment for Education Solutions (EES) ** A transactional Microsoft licensing agreement for organizations with 5 to 499 or more users/devices that want to license on-premises software only with no organization-wide commitment and improved asset management for affiliates and departments. Software Assurance is optional. Microsoft Open License for Academic A commitment-based Microsoft Licensing agreement for academic organizations with 1,000 or more users that license one or more Education Platform Products* organization-wide. Student use benefits are available, and Software Assurance is included for some on-premises products. Microsoft Cloud Agreement (CSP) * A transactional licensing agreement for institutions with one or more users/ devices seeking to license cloud services through a cloud solution provider (CSP). Student use benefits are available when covering all users. On-premises software and Software Assurance aren’t available. CSPs offer an easy way to license the cloud services in combination with the value-added services offered by your systems integrator, hosting partner, or born-in-the-cloud reseller. Microsoft Online Subscription Agreement (MOSP) A transactional licensing agreement for academic organizations with one or more users/devices that want to subscribe to, activate, provision, and maintain cloud services seamlessly and directly via the web, through the Microsoft Online Subscription Program. On-premises software and Software Assurance aren’t available through the Microsoft Online Subscription Agreement. * Resellers are strongly encouraged to move customers to CSP licensing for cloud offers. ** EES is the optimal licensing for customers with more than 1,000 users. EES licenses can only be sold by, or through, LSPs.

Sales Guidance Summary for Partners SELL CORE OFFERING UPSELL & GROW ALWAYS INCLUDE STUDENT USE BENEFIT Move customer to the cloud: Sell, or upgrade to the Microsoft 365 Education suite Lead with org-wide offering: With EES for large institutions with more than 1,000 faculty/staff With CSP for smaller organizations with 1 or more faculty/staff Upsell your solutions, paid services and devices: Sell your solutions, packaged services, cloud migration Paid Office 365 add-ons Microsoft Azure, servers Include Windows 10 education devices If needed, partner to provide holistic solutions Deploy Student Use Benefit at no cost: Help customers deploy student use benefit at no-cost when covering entire organization on qualifying products Monitor usage and provide guidance/support to fully leverage power of available services

Customer and Partner education resources Microsoft Education products and programs – with offers, promotions Education licensing programs - program guides, comparisons, FAQs Qualified Education User criteria - customer eligibility definition Product Terms - usage terms for Microsoft products and Student Use Benefits ratios (Appendix H) MPN/Education resources – training material and partner readiness kit OnRamp Modern Classroom resources – partner assets to license and sell Microsoft 365 Find a Microsoft partner – directory for all profiled Microsoft partners MPN Contact Us – for any help partners need

Q & A Q:  Why is Microsoft retiring the AEP program? How does it impact the Education strategy? A: Our goal is to enable our partners to more easily transact academic licenses by removing a step in the process, while continuing to ensure compliance with Microsoft terms and conditions. The removal of the AEP certificate step does not impact the Education strategy. Q: I am currently an AEP; how do I differentiate my business Education practice after the program retires? A: Continue to promote your Education services by leveraging the Microsoft Partner brand, badging and tools Q: Is there a replacement to the AEP program or to the AEP directory where education customers can find how to contact my company? A: No. Start or continue to advertise your services and receive referrals by creating a marketing profile in Partner Center to display in the Microsoft Solution Provider list. Q: Will the Yammer Education partner community be also retired? A: No. Continue leveraging this forum to connect with other Education partners and with Microsoft teams to stay up to date on Education-specific announcements Q: What if I have a question or need support? I used the AEP support alias in the past, and they were very responsive! A: If you need support please contact Partner Support; or if you are a CSP open a service request via the Partner Center dashboard Q: Where can I report compliance issues? A: As indicated in the Partner University Compliance training, report any issue related to improper licensing selling, or refer questions to buscond@microsoft.com