Server and Cloud Enrollment (SCE) L200 licensing overview

Server and Cloud Enrollment (SCE) L200 licensing overview
Server & Tools Business 4/15/2017 Volume Licensing Server and Cloud Enrollment (SCE) L200 licensing overview Hello, my name is __________ and on November 1, 2013 Microsoft will launch the new Server and Cloud Enrollment (SCE) which replaces the EAP and ECI enrollments. © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Server & Tools Business
4/15/2017 What you will learn Server and Cloud Enrollment (SCE) value proposition How Server and Cloud (SCE) Enrollment works Implications for EAP customers During this session, we’re going to take a deeper look at: The Server and Cloud Enrollment value proposition How the SCE works What it means for customers of our existing enrollments, And how it how customers can take advantage of flexible payment options Microsoft Payment Solutions Implications for ECI customers Using Microsoft Payment Solutions © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

4/15/2017 Server and Cloud Enrollment (SCE) value proposition Now let’s take a moment to recap what the Server and Cloud enrollment is and how it benefits customers © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

4/15/2017 SCE recap A new licensing program for highly committed customers Cloud enabled Standardized and simplified Cost savings and benefits License Easy onramp to cloud Application license mobility Cloud management benefits Subscription flexibility Consistent cloud OS platform Access to newest technologies Reduce license management Single enrollment for server and cloud technologies Best pricing and terms Unlimited support* Enterprise product rights predictability To recap: The Server and Cloud Enrollment (SCE) is a new enrollment under the Microsoft Enterprise Agreement that allows highly committed customers to standardize broadly on one or more key Server and Cloud technologies from Microsoft In essence, SCE is: A fully cloud enabled licensing vehicle A licensing enrollment that gives customers the best license management and most flexibility as they manage their own datacenters and move to the cloud A licensing vehicle for standardization on MSFT platform technologies The licensing enrollment that provides customers our best pricing, terms and benefits Fully Cloud Enabled Licensing Enrollment Best pricing & terms for Windows Azure and best licensing options for cloud scenarios Best pricing & terms for Windows Azure New System Center Benefits for managing Azure resources Application License Mobility for cloud deployments Standardization through a simplified licensing vehicle Single Licensing vehicle to standardize on the Cloud OS Platform and simplify deployment and license management One enrollment for Server & Cloud Technologies Full SA coverage eases compliance Flexible subscription based licensing options Full System Center Coverage for Windows & Azure deployments Best Value & Benefits Best pricing, terms & benefits to support the Cloud OS platform Best pricing for SCE committed Products Best terms & Enterprise product predictably Unlimited problem resolution support for qualifying customers *For qualifying customers © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

SCE is an evolution of the EAP 1 2 3 4 With four important additions
4/15/2017 With four important additions 1 2 Core Infrastructure Suite (CIS) is available (Windows Server + System Center) Includes Windows Azure by default 3 4 The easiest way to think about the Server & Cloud Enrollment is to think about it as an evolution of EAP. The Enrollment for Application Platform has already been a very successful committed vehicle for our server business, built on SQL Server and on Developer Tools. With the launch of SCE, we’re really only making four fundamental additions to what was EAP.: 1. Microsoft is introducing the opportunity for customers to make an installed-base-wide commitment to Windows Server plus System Center through the CIS SKUs. What this means is that customers that make an installed-base-wide commitment must commit to CIS SKU coverage of all the Windows Servers they have deployed. So it’s an opportunity for customers to standardize, not only on the benefits of annuity, but on access to our management technologies broadly throughout their organization. 2. Microsoft is making Windows Azure available by default. Microsoft wants every SCE customer to have the opportunity to start using Windows Azure very easily. 3. Microsoft is standardizing the discounts and terms in this contract versus the myriad of contracts previously required. What this means is that Microsoft is going to provide a consistent, 15% discount off of License+SA SKUs and a 5% discount off of SA SKUs within the SCE. For the CIS SKU in particular, these discounts will be incremental to how that SKU is priced outside of SCE. 4. Microsoft will have a new set of subscription options instead of the deferred License or Prior License model that EAP had. These subscription options are very exciting. This will be the first contract Microsoft have ever had where customers can mix perpetual and subscription licenses in the same vehicle. Why is this important? When approaching a customer to have a dialogue with them about making an installed-base-wide commitment to Windows Server plus System Center, or to SQL Server, they may have some units in their environment that are not currently covered. And when you ask them to commit to Software Assurance for three years, they may say, “Look, I plan to decommission these old systems. I also have systems that I am consolidating or I am moving to the cloud.” Subscription provides our customers with incremental flexibility, so as they actually do retire workloads or consolidate workloads, they can true them down annually. Standardized discounts & terms Subscription option added (no more deferred license) © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

4/15/2017 How Server and Cloud Enrollment (SCE) works Now that we have refreshed our memories about what SCE is, let’s take some time to understand how it works. 6 © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

4/15/2017 How SCE works Customer makes an installed base commitment to one or more of the available components Core Infrastructure Application Platform Developer Platform Windows Azure Products CIS SKUs (Windows Server + System Center) Requirements CIS coverage for all Windows Servers Products SQL Server, SharePoint Server & BizTalk Server* Requirements Full SA coverage Products Visual Studio Ultimate and Premium Requirements Full SA coverage Products All Windows Azure Cloud Services Available automatically Can also be licensed standalone The Server & Cloud Enrollment spans four different components: Core Infrastructure Application Platform Developer Platform Windows Azure. Customers can choose from any of these components individually or group them as needed. Windows Azure is: automatically available when enrolling in any of the other three components and it can also be licensed standalone. And for the other three components, as we’ve discussed things work very much like the EAP does today. Each of the first three components requires that customers have full SA coverage on all of the licenses they have deployed. Additionally, in the Core Infrastructure component, customers will need System Center coverage across all the Windows Servers deployed in their environment. This is accomplished by assigning the Core Infrastructure Suite licenses as appropriate to all existing Windows Servers. And once customers enroll in one or more components, they can begin to enjoy the benefits that Server & Cloud Enrollment has to offer. + Access to Windows Azure *BizTalk Server and SharePoint Server can also be enrolled as part of the application platform component © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

4/15/2017 Building your SCE Options and minimum requirements for covering your SCE commitment Core Infrastructure Application Platform Developer Platform Windows Azure CIS Datacenter CIS Standard CIS Datacenter w/o Windows Server CIS Datacenter w/o System Center CIS Standard w/o Windows Server CIS Standard w/o System Center All licensed Windows Server deployments must be covered with one of the above SKUs. SQL Server CAL SQL Server Enterprise per core SQL Server Business Intelligence Server SQL Server Standard per core SQL Server Standard Server SQL Server Parallel Data Warehouse per core BizTalk Server Enterprise per core BizTalk Server Standard per core BizTalk Server Branch per core SharePoint Server Visual Studio Ultimate Visual Studio Premium Visual Studio Test Professional Visual Studio Team Foundation Server CAL MSDN Platforms Visual Studio Deployment Standard Visual Studio Deployment Datacenter All Windows Azure cloud services Minimum quantities apply for CIS SKUs for entire Windows install base; Existing deployments without Software Assurance are added as subscription or L&SA at signing Minimum order requirements Minimum order requirements Minimum order requirements Minimum order requirements 50 processors via 25 licenses (each license covers up to 2 physical processors) or more of one or a combination of Core Infrastructure Server Suites Standard or Datacenter SQL Server: 50 SQL Server per core or 5 SQL Server per server with 250 CALs SQL Server PDW: 32 cores BizTalk: 24 cores of any edition SharePoint Server: 5 servers 20 licenses of any combination of Visual Studio Ultimate and Visual Studio Premium Or can be licensed standalone © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Additional products 4/15/2017 All products on the EA additional products list can be added, except for products available in SCE components The following are available as additional products: Visual Studio Pro SQL Server Enterprise Edition Server (non-core) SA only System Center Datacenter and Standard Edition (for managing non-Windows Server deployments) Subscription is not available for any additional products Just like in an EAP or EA Agreement today, customers can also purchase additional products in their SCE. Additional products receive standard volume licensing waterfall discounts, but do not receive the additional discounts that the SCE provides, and none of those products are eligible for any SCE benefits. A couple of products that you might expect to find in an SCE component product set, are actually only available as additional products for various reasons. These products are Visual Studio Pro edition, SQL Server Enterprise Edition Server licenses (non-core licenses) and System Center DC and SE, which can be purchased and used to manage non-Windows Server deployments. Additionally, there are a few stipulations regarding additional products being purchased in the SCE: Any product that is available in an SCE component cannot be purchased as an additional product. This is regardless of if a customer has enrolled in that component. So regardless of which components a customer enrolls in, SCE products can never be purchased as additional products (examples are the CIS SKUs, SQL Server SKUs, Visual Studio, etc) Additional products cannot be purchased as subscription units. © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

4/15/2017 How to establish the customer footprint Baseline licenses must be identified for all affiliates being included in the SCE Identify installed base Ensure full SA coverage Cover server licenses with CIS Any existing licenses deployed with continuous SA (across all enrollments) Any existing licenses deployed without continuous SA New licenses that are being purchased Renew SA for existing license current with SA For existing licenses without SA: Add subscription SKUs Or Add L&SA at signing All baseline licenses for Windows Server must be covered with System Center Coverage achieved through adding CIS SKUs “CIS without” SKUs are available when Windows Server or System Center SA is current So how do customers actually enroll in the SCE? First, they will need to identify their installed base for the SCE component that they wish to enroll in. This means they will need to identify: All existing licenses deployed with Software Assurance across all the customers licensing agreements and enrollments All licenses deployed (in use) without Software Assurance And any licenses a customers wishes to add at the signing of their SCE Second, they will need to ensure they have full SA coverage on all these licenses. Licenses with SA simply renew as SA only in the SCE. For deployments that are currently licensed with licenses without SA, customers have 2 options. They can add subscription SKUs to license these workloads They can add new L&SA SKUs at signing for these workloads And finally, for customers enrolling in the Core Infrastructure Component, they will need to ensure that all their Windows Server deployments are also licensed with System Center. This means ensuring all WS deployments are licensed with a CIS SKU. Customers can do this with subscription licenses, or by adding new L&SA. In scenarios where they have current SA on either Windows Server or System Center, but not both, they can purchase the “CIS without” SKUs which include SA for both products, but only a license for the product they do not own. © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

SCE enrollment scenario
4/15/2017 SCE enrollment scenario Enrolling in the core infrastructure component Step 1: Identify the installed base Existing baseline CIS licenses in use with SA 50 CIS Datacenter 100 CIS Standard Standalone licenses in use with SA 50 Windows Server SE Lets now look at an example of a customer who is enrolling in the Core Infrastructure component of the SCE. First, they have identified their Existing baseline which include CIS licenses with SA, Windows Server licenses with SA and Windows Server licenses without SA. Licenses in use without SA 10 Windows Server DC 40 Windows Server SE 11 © 2006 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Enrolling in the core infrastructure component
4/15/2017 SCE enrollment scenario Enrolling in the core infrastructure component Step 2: Renew SA in SCE; add license & Software Assurance (L&SA) or subscription Existing baseline CPS CIS licenses in use with SA SA 50 CIS Datacenter 100 CIS Standard 50 CIS Datacenter 100 CIS Standard Standalone licenses in use with SA L&SA* 50 Windows Server SE 50 CIS SE without Windows Server Next, to enroll in the SCE, they would do the following: Renew their existing CIS licenses with SA as SA in the SCE Cover their existing 50 Windows Server licenses with SA with the CIS w/out SKUs, L&SA added at signing. This converts the WS SE license into a CIS SKU. Customers could also elect to bring these in under subscription as well Cover their Windows Server licenses without SA by either adding CIS SE L&SA at signing, or adding CIS SE subscription SKUs. Customers can elect to subscribe to some units, and to own others. Licenses in use without SA L&SA Or subscription 10 Windows Server DC 40 Windows Server SE 10 CIS DC 40 CIS SE 10 CIS DC 40 CIS SE 12 *Customers can elect to subscribe to units if they want the flexibility to true down (if they plan to retire workloads or move to the cloud for example) © 2006 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Subscription in SCE 4/15/2017 Customers can purchase subscriptions to cover licenses without continuous Software Assurance at signing or for new deployments Subscription provides flexibility through: Lower upfront costs when signing a SCE More purchasing options for new units Ability to reduce licenses annually when retiring workloads, consolidating or migrating to the cloud Subscription SKUs will be sold via Monthly Subscription Units (MSUs) Subscription is a new option within the SCE that provides customers with flexibility in both meeting the coverage requirements of an SCE, as well as when deploying new licenses. Subscription licenses also have the flexibility of being able to be reduced at each annual order period. So if a customer has a workload licensed with subscription that is either turned off or no longer needs a license, they can reduce their payments on an annual basis. Subscription units will be sold through the Monthly Subscription Unit SKUs. © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Subscription overview
Pricing Minimums Reductions Buyouts MSUs allow customers to pay for each month deployed and will be priced at 35.5% of the license only price* Customers must commit to a minimum of 12 months Customers can reduce subscription units no longer being used for deployed workloads at each anniversary date If customers do not renew or wish to own, buyout pricing will be set at year 3 true up pricing Pricing for subscription SKUs is based on a customer’s non-SCE license price. This means that the subscription price is based on their license price prior to the additional SCE discounts. The MSU SKUs are then calculated based on 35.5% of that license cost per year, then divided by 12. So, an easy example is comparing this to Software Assurance. For SQL Server, Software Assurance is 25% of a license per year. Subscription is 35.5% of a license per year. At each annual order period, customers must pay for at least an entire year forward of subscription, but also need to pay for each month deployed in the previous year. License reductions can be done at each annual order period following the minimum 12 month commitment. If customers do not renew their SCE or wish to own a license, buyout pricing will be available and will be the same price as Year 3 True up pricing. *Subscription pricing percentages are set based on non-SCE discounted licenses (standard waterfall discounts apply). Visual Studio will be priced at 46% of a license.

4/15/2017 Subscription scenario How subscriptions work Adding subscription at signing to meet installed base coverage requirements Year 1 Year 2 Year 3 Customer adding MSUs at signing: + 10 CIS DC subscriptions (via MSUs) + 25 CIS SE subscriptions (via MSUs) 10 x MSU price x 12 months 25 x MSU price x 12 months Year 1 Automatic annual billing Automatic annual billing Automatic annual billing Here is an example of a customer adding subscription units at signing. You can see that they at the appropriate number of MSU SKUs, and then pay forward for 12 months. The systems will be set up to automatically bill for these at each annual order period. End of year 3 options: Renew Buy-out Stop using 15 © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

4/15/2017 Subscription scenario How subscriptions work License reductions Year 1 Year 2 Year 3 Customer reduces subscription licenses: Automatic annual billing 10 x MSU price x 12 months + 10 CIS DC subscriptions (via MSUs) Year 1 Automatic annual billing 25 x MSU price x 12 months + 25 CIS SE subscriptions (via MSUs) Now let’s look at an example where a customer wants to reduce licenses. In this case, at the end of the first year, the customer has consolidated and wants to turn off 5 servers licensed with CIS SE licenses. They would submit this reduction via the METEAOP form and reduce their payment from 25 to 20 MSUs going forward. 20 (25-5) x MSU price x 12 months Automatic annual billing Year 2 - 5 CIS SE subscriptions (via MSUs) License reduction process: Submit via METEAOP form Submitted during annual order period 16 © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

4/15/2017 Subscription scenario How subscriptions work Adding subscription units at true up in years 1 & 2 Year 1 Year 2 Year 3 Customer adding MSUs at true up: 5 x MSU price x 15 (3 + 12) months Automatic annual billing Year 1 true up + 5 CIS SE subscriptions (Deployed in month 9 of first year via MSUs) Month 9X Automatic annual billing Now lets look at an example where a customer wants to add subscription licenses at True Up. In this scenario, the customer wants to ADD 5 CIS SE subscription SKUs. They deployed these CIS SE workloads in the 9th month of the previous year, so would add 5 CIS SE Subscription SKUs and pay for the previous 3 months, plus 12 months forward, so a total of 15 months. Year 3 would be set up to automatically bill. True ups in years 1 & 2: Customers pay for each month deployed in previous year Customers pay forward 1 year 17 © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

4/15/2017 Subscription scenario How subscriptions work Adding subscription units at true up in year 3 Year 1 Year 2 Year 3 Customer adding MSUs at true up: 5 x MSU price x 15 (3 + 12) months Automatic annual billing Year 1 true up + 5 CIS SE subscriptions (Deployed in month 9 of first year via MSUs) Month 9X Automatic annual billing And finally, if customers want to add subscription licenses in year 3, they would need to pay for them at their year 3 true up period. In this case, the customer deployed in month 3, so would pay for the 9 months deployed in the previous year. If they renew their SCE, they then renew these subscription units and pay for 12 more months. If they choose not to renew, they need to either turn those deployments off or use the buyout SKUs. 5 x MSU price x 3 months Year 3 true up + 5 CIS SE subscriptions (via MSUs) Month 9X Year 3 true ups: Customers pay for each month deployed in previous year End of year 3 options: Renew Buy-out Stop using 18 © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

4/15/2017 Cloud management benefit SCE Customers who enroll in the core infrastructure component can install System Center and manage Windows Azure Virtual Operating System Environments (VOSEs). Eligible Windows Azure VOSEs instances includes:* Windows virtual machine instances Cloud service instances (web and worker role) Storage accounts SQL databases Website instances SCE will offer customers, who enroll in the Core Infrastructure Component, an incredible new benefit. They will be able to use System Center and manage Windows Azure deployments without needing to acquire an additional license. Customers can of course use license mobility to move existing licenses to the cloud when they are moving workloads the Azure, but this benefit will also allow customers to manage new deployments as well, without buying additional licenses. Customers can use System Center to manage Windows Azure Virtual Operating System (VOSE) instances including: Windows Virtual Machines Cloud Services instances (web and worker roles) Storage Accounts SQL Databases Websites instances Customers are eligible to manage 10 eligible Windows Azure Virtual OSEs for each CIS license they have in their SCE. *Limited to 10 eligible Windows Azure VOSE instances for each CIS license 19 © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

The benefits of Software Assurance
Reduce risk and maximize the value of your investment Plan Build & deploy Use & support New version rights Spread payments Step-up availability Training TechNet Deployment Planning Services (DPS) 24x7 problem resolution Extended hotfix Cold back-up for disaster recovery Software Assurance can help you maximize your investment by providing you with benefits that will help you address your needs at each of these product lifecycle phases, whether it is gaining access to the latest versions to assistance in training your staff and deploying the solution to problem resolution support, Software Assurance has a benefit to help you.

Moving IT workloads to the cloud
Plan Build & deploy Use & support Envision solutions, plan on-premises, hybrid, or cloud deployments with planning services License mobility through SA allows you to deploy certain application software on premises or in the cloud without additional licensing Support hybrid environments, enable cloud services with new products versions Microsoft is committed to be with customers on their journey to the cloud - on their own terms. Microsoft recognizes the “hybrid” reality – we understand that customers will likely want to invest in physical, virtual, private and public cloud computing models. With Software Assurance, customers get planning services, deployment options and upgrade rights to support their on-premises and hybrid environments, and as they adopt cloud services to suite their business needs. One of the goals of Software Assurance is to support the customer’s deployment choices as they re-envision the role of IT in cloud computing by helping them to deploy Microsoft products on-premises, via the cloud, or in hybrid environments that combine cloud services with on-premises software solutions. With SA customers get benefits they can use to support a hybrid environment that may be built on Microsoft platform products and Window Azure platform services, or productivity tools whether those are delivered on-premises or via the cloud as with Office 365. Customers can use New Product Versions which give them access to new software versions, to: Update core server products such as Windows Server and System Center to better support hybrid environments Reduce the costs of updating desktops to optimize both traditional on-premises deployment of Office Professional or Office 365. Use Planning Services to help envision solutions and optimize investments in traditional, virtual, private and public cloud computing models. Planning Services provide on-site, expert assistance with deployment planning on areas the customer can choose, from updating on-premises software, to optimizing virtual environments, to moving workloads to the cloud. Customers have a choice of several on-site consulting engagements to help plan deployments of Microsoft System Center, Windows Server, Windows Azure, SQL Server, and Visual Studio Team Foundation Server and Test Tools. For more user-centric workloads, hybrid and cloud deployment planning is available through existing Desktop, SharePoint, and Lync and Exchange Deployment Planning Services. Customers can also use License Mobility which lets them deploy certain server application licenses on-premises or hosted in a shared data center, to help lower cloud infrastructure costs. The benefits currently support cloud deployments of Exchange Server, Microsoft SharePoint Server, and Microsoft SQL Server, Exchange Server, Microsoft SharePoint Server, and Microsoft SQL Server, Exchange Server, SharePoint Server, and SQL Server products. © 2012 Microsoft Corporation. Microsoft provides this material solely for informational purposes. MICROSOFT MAKES NO WARRANTIES, EXPRESSED OR IMPLIED, IN THIS DOCUMENT. Eligibility for Software Assurance benefits varies by offering and region and is subject to change. Customers should refer to the Terms and Conditions of their Volume License Agreement for a full understanding of their rights and obligations under Microsoft Volume Licensing programs. (Publication )

4/15/2017 Unlimited problem resolution support* Unlimited support for customers as they deploy on Microsoft’s server & cloud technologies How to enroll Benefit Requirements Opt-in SA benefit only available through the SCE* Unlimited premier reactive support incidents for core infrastructure and application platform components Available to our largest customers with premier services agreements (minimum SA spend of $250,000 per year**) Unlimited Problem Resolution Support is a benefit only found in the SCE. This allows customers to receive an unlimited number of premier reactive phone services support hours. A few things to consider: This is an opt in benefit that customers must opt into at signing to receive This is only available for the Core Infrastructure and Application Platform components in the SCE. The minimum SA spend to qualify is $250k per year, per component (for example, if your customer spends $250k in SQL, they do not automatically qualify to use this benefit for Windows Server. They must qualify by hitting $250k in each component. Customers must have an active Premier Services Agreement Customers who opt into the agreement lose the ability to convert incidents (earned through SA on SCE products) to premier hours for qualifying products. *Customers who opt in to unlimited support lose the ability to convert incidents (earned through SA on SCE products) to premier hours **Minimum is for each component enrolled and the actual dollar amount varies by geography © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

4/15/2017 SCE recap A new licensing program for highly committed customers Cloud enabled Standardized and simplified Cost savings and benefits License Easy onramp to cloud Application license mobility Cloud management benefits Subscription flexibility Consistent cloud OS platform Access to newest technologies Reduce license management Single enrollment for server and cloud technologies Best pricing and terms Unlimited support* Enterprise product rights predictability To recap: The Server and Cloud Enrollment (SCE) is a new enrollment under the Microsoft Enterprise Agreement that allows highly committed customers to standardize broadly on one or more key Server and Cloud technologies from Microsoft In essence, SCE is: A fully cloud enabled licensing vehicle A licensing enrollment that gives customers the best license management and most flexibility as they manage their own datacenters and move to the cloud A licensing vehicle for standardization on MSFT platform technologies The licensing enrollment that provides customers our best pricing, terms and benefits Fully Cloud Enabled Licensing Enrollment Best pricing & terms for Windows Azure and best licensing options for cloud scenarios Best pricing & terms for Windows Azure New System Center Benefits for managing Azure resources Application License Mobility for cloud deployments Standardization through a simplified licensing vehicle Single Licensing vehicle to standardize on the Cloud OS Platform and simplify deployment and license management One enrollment for Server & Cloud Technologies Full SA coverage eases compliance Flexible subscription based licensing options Full System Center Coverage for Windows & Azure deployments Best Value & Benefits Best pricing, terms & benefits to support the Cloud OS platform Best pricing for SCE committed Products Best terms & Enterprise product predictably Unlimited problem resolution support for qualifying customers *For qualifying customers © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Implications for EAP customers 4/15/2017
Now that we understand the fundamentals of how SCE works, lets focus on the impact that moving to SCE has on existing EAP customers. 24 © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Impact for EAP customers 4/15/2017 Potential areas of impact Discount changes Product edition availability Subscription replaces deferred license As the SCE is an evolution of the EAP, impacts to existing EAP customers is minimal. However, there is impact that should be considered including discount changes, product edition availability, and the impact of introducing subscription SKUs. 25 © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

4/15/2017 SCE discount changes for EAP customers EAP pricing SCE pricing Net change New purchases 40% premium edition license discount (license portion of L&SA only, not SA) 15% standard edition license discount No discount Non-current licenses deferred at SA only pricing 15% discount on license & SA Slightly lower discounts on premium editions Slightly higher discounts on standard editions 5% discount Incremental 5% renewal discount Subscription pricing Subscription pricing will be 42% higher than SA only SA renewals The first item is discount changes. For new purchases, the EAP offered License only discounts, meaning Software Assurance was never discounted. This resulted in the advertised discounts of 40% and 15% never being an actual discount amount for a full L&SA purchase. For instance, if you only discount the license portion of an L&SA purchase at signing by 40%, the discount ends up being about 23% overall. In the SCE, discounts have been simplified and streamlined within the Enterprise Agreement, so any new L&SA purchase will always be discount by 15%. This results in slightly lower discount levels for premium products, and slightly higher discount levels for standard editions For Software Assurance renewals, customers in an EAP never received a discount. The SCE adds a new, 5% discount for SA renewals. And finally, at signing, customers in an EAP had the option to bring in licenses without Software Assurance coverage as “SA only.” This was referred to as “deferred licenses” in the EAP. This is not available in an SCE as customers have the option to add subscription for those units. Subscription will be priced higher than SA, but includes the additional flexibility of license reductions. Licenses without SA 26 © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

EAP product edition availability changes
4/15/2017 EAP product edition availability changes SQL Server Enterprise Edition Server (non-core) and Visual Studio Pro licenses are not available within the SCE components SQL Server Enterprise Edition Server is no longer available for new purchases These are not required in baseline requirements Customers can renew SA on perpetual licenses in additional products Not available under subscription Secondly, there are 2 product editions no longer available in the SCE that were available in the EAP. These are SQL Server Enterprise Edition Server licenses (non-core) and Visual Studio Pro licenses. This is because SQL Server EE Server was retired at the launch of SQL Server 2012 and is not longer available for new purchase in any agreement. Visual Studio Pro is still available for new purchase, but only the premium editions can be bought in the SCE. These product editions are not required to be included when calculating the baseline requirements of the SCE and they can renew SA on both of these product editions in Additional Products. They are not, however, available as subscription. 27 © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Each product has unique Software Assurance value
4/15/2017 Each product has unique Software Assurance value SQL Server Enterprise Edition Server (non-core) Visual Studio Pro This edition was retired with the launch of SQL Server 2012, however, customers should renew SA to: Access future releases of SQL Server & other SA benefits Maintain license mobility for virtual environments If SA is not renewed, it cannot be attached later New licenses available through additional products Maintaining SA ensures customers can consume MSDN benefits; access latest versions of VS, TFS and MSDN software There is still tremendous value in renewing SA on both of these products. Renewing SA on SQL Server Enterprise Server gives customers access to future releases and maintains their license mobility benefits. And SA on Visual Studio Pro ensures customers can consume MSDN benefits and access the latest versions. If SA is not renewed on either of these editions, it cannot be added later. 28 © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

customers with deferred licenses
Options for customers with deferred licenses 4/15/2017 Buyout licenses in their EAP; renew SA in SCE (at 5% discount) – Why buyout? Buyout provides lowest cost for ownership Highly discounted license; SA at 5% discount in SCE SQL Processor buyouts get core grants SQL Server Enterprise Edition (non-core) Buyout and renew SA (in add’l products) Or subscribe to core licenses Add subscription units for those deployments – Why subscribe? Customers who brought licensees into their EAP that did not have current SA coverage (deferred L’s), have 2 options when renewing into an SCE. They can buyout these licenses in their EAP agreement through their buyout pricing; then renew SA in their SCE (at a 5% discount) Or they can add subscription units at signing. Both of these may be good options for the customer. Buyout offers the lowest cost if customers wish to own these licenses. Buyout SKUs were heavily discounted in an EAP and for certain SKUs, such as SQL Server Processors, customers will get the core license grants when renewing into the SCE. Customers must either buyout SQL Server Enterprise Server (non-core) licenses; or subscribe to core licenses moving forward Customers can also subscribe which reduces short term costs when signing an SCE and also provides the flexibility to reduce those licenses annually. Reduce short term costs by avoiding the EAP buyout Flexibility to reduce these licenses annually 29 © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

4/15/2017 EAP renewal scenario Customers with deferred licenses EAP license position CPS Perpetual licenses under SA SA 50 SQL Server EE procs 100 SQL Server SE procs 250 EE cores 500 SE cores Deferred licenses brought in as SA only Buyout & SA Or subscription 10 SQL Server EE procs Buyout 10 EE procs Renew SA on 50 EE cores 10 SQL Server EE procs Let’s look at an example of a customer with Deferred Licenses in their EAP. This customer has an EAP with mostly perpetually owned licenses, but is also deferring 10 SQL Server Processor licenses. The first step, as with any SQL Server processor renewal, is to renew into core licenses. This is accomplished by the customer providing (and maintaining) an inventory report identifying the hardware in which SQL is installed. For this example, this customer has an average of 5 cores for each processor deployed (this is the IDC average per proc in the FY14 SQL Installed base). This customer simply renews their perpetually owned licenses into the amount of cores they need, which you see on the right. Next, the customer needs to address their deferred license estate. They have 2 options. Option 1 is that they can buyout the processor licenses in their EAP. Buyouts are an L only discount and for SQL EE, are discounted 40%, so may be a great option for the customer. Then, they would get the core grants and renew as SA only in their SCE Option 2 is to simply subscribe to the amount of cores they need for those deployments. Any future buyout would now be in cores. *Renewal costs assume 5 cores per proc average shown through inventory report maintained by the customer 30 © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

4/15/2017 EAP renewal scenario Customers with deferred licenses EAP license position CPS Perpetual licenses under SA SA 50 SQL Server EE procs 100 SQL Server SE procs 250 EE cores 500 SE cores Deferred licenses brought in as SA only Buyout & SA Or subscription 10 SQL Server EE procs Buyout 10 EE procs Renew SA on 50 EE cores Renewal cost comparison 10 SQL Server EE procs Let’s next compare the costs of these two options, to what they WOULD HAVE paid if the SCE didn’t exist. So, renewal pricing on cores would total to approx. $1.43m over 3 years for these licenses. Renewal costs in EAP if SCE didn’t exist SQL EE cores SA: $275k/yr SQL SE cores SA: $145k/yr SQL EE cores SAPriorL: $55k/yr Total 3yr cost: $1.43m** *Renewal costs assume 5 cores per proc average shown through inventory report maintained by the customer ** Pricing estimates based on US Open NL ERP 31 © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

4/15/2017 EAP renewal scenario Customers with deferred licenses EAP license position CPS Perpetual licenses under SA SA 50 SQL Server EE procs 100 SQL Server SE procs 250 EE cores 500 SE cores Deferred licenses brought in as SA only Buyout & SA Or subscription 10 SQL Server EE procs Buyout 10 EE procs Renew SA on 50 EE cores Renewal cost comparison 10 SQL Server EE procs Next, we can see what it would cost with an SCE, where a customer needs to buyout deferred L’s vs subscribing to them. The key take away is that for most EAP customers this will be a minimal cost comparing it to the overall agreement and may be offset by the new 5% discount. Renewal costs in EAP if SCE didn’t exist SCE cost with buyout SCE cost with subs SQL EE cores SA: $275k/yr SQL SE cores SA: $145k/yr SQL EE cores SAPriorL: $55k/yr Total 3yr cost: $1.43m** SQL EE cores SA: $314k/yr SQL SE cores SA: $137k/yr Buyout: $107k Total 3yr cost: $1.46m SQL EE cores SA: $261k/yr SQL SE cores SA: $137k/yr SQL EE cores subs.: $78k/yr Total 3yr cost: $1.42m *Renewal costs assume 5 cores per proc average shown through inventory report maintained by the customer ** Pricing estimates based on US Open NL ERP 32 © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Implications for ECI customers 4/15/2017
Now let’s focus on the impact that moving to SCE has on existing ECI customers. 33 © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Impact for ECI customers 4/15/2017 Two main areas of impact Discount changes Installed base coverage commitment to CIS For ECI customers the impact goes beyond discount changes because of the installed based-wide coverage requirement for CIS. 34 © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

4/15/2017 Discount changes ECI comparison ECI pricing SCE pricing 20% discount on CIS license & SA 20% discount on CIS SA renewals 25 license minimum No installed base coverage requirement ~20% off CIS license & SA (15% SCE + 5% CIS) ~10% off CIS SA renewals (5% SCE + 5% CIS) 25 license minimum All licensed Windows Server deployments must be licensed with an appropriate Core Infrastructure Suite SKU These changes do not impact customers during the term of their ECI Enrollment. With an installed base-wide commitment to the Core Infrastructure Suites (CIS) through SCE, the customer will retain access to our best pricing, new subscription options, new Azure benefits, and access to the latest technologies. Also included are new benefits like System Center Azure management rights and the ability to qualify for unlimited support. The discounts SCE provides for CIS Standard and Datacenter (SE and DC) include 15% off L+SA and 5% off SA. These discounts are in addition to the discounts already provided for CIS SKUs in non-SCE programs. If the customer only wants to partially cover their environment with CIS, they can very easily do so through other volume licensing programs, with no dedicated contracts or unit minimums. 35 © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

4/15/2017 ECI transition implications The SCE is not for all ECI customers Existing ECI ECI Window Server + System Center Customer licensing preference Partial coverage Customers who have only partial coverage Good coverage Customers trending towards full coverage For customers with ECI’s, it’s important to consider that the SCE adds additional coverage requirements that may be prohibitive for some customers. When considering transitions from ECI’s, its important to think about customers in 2 different ways. Customers that only have partial CIS coverage of their Windows Server installed base And customers that are trending towards having full System Center coverage of their installed base. 36 © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

4/15/2017 ECI transition implications The SCE is not for all ECI customers Existing ECI ECI Window Server + System Center Customer licensing preference Partial coverage Customers who have only partial coverage Good coverage Customers trending towards full coverage For customers with partial coverage, a more cost effective offer would be to renew their CIS licenses in Select or EA additional products. They will still receive 5% L&SA discounts and 5% renewal discounts vs the standalone product SKUs Microsoft renewal offer Renew CIS SKUs in Select/EA Effective discount levels 5% L&SA discount 5% SA renewal discount 37 © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Partial coverage ECI renewal scenario
4/15/2017 ECI renewal scenario Partial coverage Customer with 335 Windows Servers: 45% SC coverage, 70% SA coverage Existing ECI customer license footprint CIS licenses in use with SA 50 CIS Datacenter 100 CIS Standard Standalone licenses in use with SA 10 WS Datacenter 75 WS Standard Here is an example of a customer with partial coverage. Licenses in use without SA 100 Windows Server SE 38 © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

4/15/2017 ECI renewal scenario Partial coverage Customer with 335 Windows Servers: 45% SC coverage, 70% SA coverage Existing ECI customer license footprint Option 1: Renew into EA additional products/Select CIS licenses in use with SA 50 CIS Datacenter 100 CIS Standard Software Assurance renewal 50 CIS Datacenter 10 WS DC 100 CIS Standard 75 WS SE Standalone licenses in use with SA 10 WS Datacenter 75 WS Standard If they were to renew into the SCE, it would be 61% more expensive than renewing into Select or EA additional products, due to needing to incrementally add L&SA and subscription SKUs to meet the coverage requirements of the SCE. Licenses in use without SA 100 Windows Server SE 39 © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

4/15/2017 ECI renewal scenario Partial coverage Customer with 335 Windows Servers: 45% SC coverage, 70% SA coverage Existing ECI customer license footprint Option 1: Renew into EA additional products/Select CIS licenses in use with SA 50 CIS Datacenter 100 CIS Standard Software Assurance renewal 50 CIS Datacenter 10 WS DC 100 CIS Standard 75 WS SE Standalone licenses in use with SA 10 WS Datacenter 75 WS Standard Option 2: Sign SCE, incrementally add New L&SA purchase 10 CIS DC w/o WS 75 CIS SE w/o WS Subscription 100 CIS SE The customers second option would be to renew into the SCE. If they were to renew into the SCE, it would be 61% more expensive than renewing into Select or EA additional products, due to needing to incrementally add L&SA and subscription SKUs to meet the coverage requirements of the SCE. Our guidance in this scenario is not to force a customer into an SCE where its not a good fit, but instead to explain the SCE and it’s role in the Cloud OS vision, but position a renewal elsewhere. Licenses in use without SA 100 Windows Server SE Estimated SCE renewal is 61% higher than renewing CIS SKUs in Select Plus* * Pricing estimates based on US Open NL ERP Guidance: Explain SCEs role in the cloud OS vision; don’t force a deal where customers won’t commit 40 © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

4/15/2017 ECI transition implications The SCE is not for all ECI customers Existing ECI ECI Window Server + System Center Customer licensing preference Partial coverage Customers who have only partial coverage Good coverage Customers trending towards full coverage For customers that have good System Center and Windows Server annuity coverage, the SCE should be a great option for them, not only at renewal, but also moving forward as the SCE provides higher discounts than Select and many additional benefits. Microsoft renewal offer Renew CIS SKUs in Select/EA Renew into SCE Effective discount levels 5% new unit discount 5% SA renewal discount 15% incremental new unit discount 5% incremental SA renewal discount 41 © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Good coverage ECI renewal example
4/15/2017 ECI renewal example Good coverage Customer with 175 Windows Servers: 85% SC coverage, 94% SA coverage Existing ECI customer license footprint Option 1: Sign SCE CIS licenses in use with SA 50 CIS Datacenter 100 CIS Standard SA renewal 50 CIS Datacenter 100 CIS Standard Subscription 10 CIS SE Standalone licenses in use with SA 5 WS Datacenter 10 WS Standard New L&SA purchase 5 CIS DC w/o WS 10 CIS SE w/o WS Here is a renewal example of a customer with good coverage. For this customer to renew into the SCE, it will only cost about 3% more than renewing in Select or Additional products AND they will get all the great SCE pricing and other benefits going forward. Licenses in use without SA 10 WS SE Estimated SCE renewal is 3% higher than renewing CIS SKUs in Select Plus* * Pricing estimates based on US Open NL ERP Guidance: Renew into SCE 42 © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Dropping SA on System Center components could save 20%*
4/15/2017 ECI renewal scenario Coverage through components Customer with 365 Windows Servers: 96% SC coverage, 97% SA coverage Existing ECI customer license footprint Option 1: Renew into SCE CIS licenses in use with SA 50 CIS Datacenter 100 CIS Standard SA renewal 50 CIS Datacenter 300 CIS Standard Subscription 10 CIS SE Standalone licenses in use with SA 200 WS Standard 200 SC OpsMan Option 2: Renew CIS in Select; drop SA on SC Comp SA renewal 50 CIS Datacenter 200 WS Standard 100 CIS Standard Let’s look at one final example; which is a customer who has good coverage, but that is achieved through System Center component licenses. The key here is that the component renewal is a vital part of the process. If the customer does not want to renew from components into Suites, the entire renewal will be at risk, as a Suite renewal has to occur for the SCE to be possible. SCE will be a great option for this customer, but only once the components are renewed into Suites. Licenses in use without SA 10 WS SE Dropping SA on System Center components could save 20%* * Pricing estimates based on US Open NL ERP Guidance: Lead with SCE, but prioritize System Center component renewal 43 © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Excess license grants 4/15/2017 As customers renew into the SCE, excess license grants may help them meet SCE requirements Renewing SA on these licenses may result in excess grants: Windows Server Enterprise Edition System Center Enterprise Edition System Center components CIS Standard Edition & Enterprise Edition Customers with these licenses will need extra consideration at renewal For many customers renewing their agreements in FY14, they will be renewing into the Windows Server 2012 and System Center 2012 licensing models. Those SA renewals result in different license grant editions and licensing models changes. Some of these license grants may actually result in excess licenses that customers may not need. In that scenario, the SCE may be a great place for a customer to apply these excess licenses to meet the coverage requirements. And regardless, customers with license grants will need extra consideration at renewal 44 © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

4/15/2017 Excess license grants License grants when renewing into Windows Server and System Center 2012 Current license w/SA License grant at renewal SCE implications Windows Server Enterprise Edition 2 Windows Server Standard (2:1) Customers running 2 VMs or less and/or licensing servers with 1-2 procs have an excess WS SE license Excess WS SE grants can be used to meet 100% WS SA requirement System Center coverage requirements still apply System Center Enterprise Edition 2 System Center Standard (2:1) Customers running 2 VMs or less and/or licensing servers with 1-2 procs have an excess SC SE license Excess SC SE grants can be used to meet 100% SC coverage System Center components System Center Suite (1:1) Customers with multiple components on a server have an excess license Here is a list of the different license grants and the implications for the SCE if customers have these. CIS Enterprise Edition (1 proc) CIS Standard Edition (1 proc) CIS Standard Edition (2 proc) (1:1) Customers who needed 2 CIS EE/SE licenses for a 2 proc server, now may only need 1 CIS SE license for that server, resulting in an excess CIS SE license Excess CIS SE grants can be used to meet SCE coverage requirements 45 © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Pricing changes for ECI customers
4/15/2017 Pricing changes for ECI customers L+SA annualized Current pricing Window Server SE $437 -5% EA/Select CIS SE $830 System Center SE $437 ECI CIS SE $699 -20% Finally, for ECI customers, let’s look at how their pricing will change. First, we can see the pricing available before the launch of the SCE. We are going to look at an example of the CIS SE Suite. This suite is built by combining Windows Server SE and System Center SE into a single SKU, the CIS Suite. For new L&SA purchases, that SKU is discounted 5% in EA/Select. And it’s discount 20% in the ECI. 46 © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

4/15/2017 Pricing changes for ECI customers L+SA annualized Current pricing Window Server SE $437 -5% EA/Select CIS SE $830 System Center SE $437 ECI CIS SE $699 -20% New pricing Window Server SE $437 EA/Select CIS SE $830 -5% System Center SE $437 SCE CIS SE $706 -15% ~20% Discount Moving forward, the discount levels will remain very similar. The 5% discount doesn’t change in EA/Select and the SCE discount will still be roughly 20%. SCE will work slightly different in that instead of discounting the standalone Windows and System Center SKUs, it will add the standardized 15% discount onto the already 5% discounted CIS SKU (in EA/Select). So it’s a 15% discount on top of a 5% discounted SKU, resulting in roughly a 20% discount. Very similar to the ECI. 47 © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

4/15/2017 Pricing changes for ECI customers L+SA annualized Current pricing Window Server SE $437 -5% EA/Select CIS SE $830 System Center SE $437 ECI CIS SE $699 -20% New pricing Window Server SE $437 EA/Select CIS SE $830 -5% System Center SE $437 SCE CIS SE $706 -15% One year SA SA only will work in the same way. Today, customers do not get a discount for SA only in EA/Select, and they get a 20% discount in ECI. Current pricing Window Server SE $188 0% EA/Select CIS SE $375 System Center SE $188 ECI CIS SE $300 -20% 48 © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

4/15/2017 Pricing changes for ECI customers L+SA annualized Current pricing Window Server SE $437 -5% EA/Select CIS SE $830 System Center SE $437 ECI CIS SE $699 -20% New pricing Window Server SE $437 EA/Select CIS SE $830 -5% System Center SE $437 SCE CIS SE $706 -15% One year SA When SCE launces, a new 5% discount will be added to EA/Select for customers renewing CIS licenses there. Customers in an SCE will get their CIS SKU discounted an additional 5% (on the already 5% discount SKU in EA/Select) for a total of approximately a 10% discount. This 5% discount is consistent with the component discount across the EA. This will however, be a lower discount than customers were receiving in their ECI agreement. Current pricing Window Server SE $188 0% EA/Select CIS SE $375 System Center SE $188 ECI CIS SE $300 -20% New pricing Window Server SE $188 -5% EA/Select CIS SE $357 System Center SE $188 SCE CIS SE $339 -5% ~10% Discount 49 © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

How will this impact pricing for customers?
4/15/2017 How will this impact pricing for customers? Program Current Pricing Discount on Standalone New Pricing EA/Select CIS SE $830 5% ECI CIS SE $699 20% $706 ~20% Program Current Pricing Discount on Standalone New Pricing EA/Select CIS SE $375 n/a $357 5% ECI CIS SE $300 20% $339 ~10% Here is a summary view of the pricing discount changes in the SCE for the CIS SKUs. In the ECI, the 20% discounts were calculated off of the standalone Windows Server and System Center SKUs. In the SCE, the 15% and 5% discounts (L&SA and SA respectively) will be calculated off of the already 5% discounted CIS SKUs available in Select and EA additional products 50 © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

4/15/2017 Using Microsoft Payment Solutions Let’s focus now on how customers can use Microsoft Payment Solutions to pay for SCE on their own terms – whatever their current financial situation is. 51 © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Microsoft Payment Solutions
Easing the transition from ECI and EAP to SCE Microsoft Payment Solutions helps customers expand their IT purchasing power and improve cash flow with an easy, flexible and affordable payment plan aligned to their budget Deferred payment option: Customer can defer making SCE payments for up to six months when there is an immediate need but budget isn’t available till the next fiscal year $0 Ramped payment option: Customer can pay less in the near term and then increases payments in later periods to match to their return of SCE investment or when more funds are available Monthly/quarterly payment option: Customer can spread the annual SCE expense including any true-ups over the rest of the contract term with equal, predictable payments Note; Microsoft Payment Solutions Specialists available in these countries/regions: United States, Canada, United Kingdom, Germany, Spain, Belgium, France, Italy, Switzerland, Netherlands, Australia, New Zealand, Japan and Brazil Microsoft Payment Solutions offers convenient, flexible options that can be customized and/or combined to allow you to structure your technology spend to meet your business and financial needs Designed for Microsoft licensing customers Our agreements are an easy addendum to your Enterprise Agreement that this allows us to create a customized payment plan that meets your immediate cash flow needs and provides you the flexibility to add new software purchases, true-ups or additional services to the agreement at any time. Key Scenarios Bridge budget gaps: You can defer making a payment for up to six months until the next fiscal year when new budget is available. Use payment solutions to manage true-up and renewal payment needs. Solve payment timing issues: Spread the annual payment into quarterly or monthly payment. Ease your cash flow with flexible payments over EA agreement duration. Match deployment payment to the ROI: Ramp the deployment investment cost over the life of the technology lifecycle. Engaging with Microsoft Payment Solutions is a great way to pay for your investment when you need to: Conserve or reallocate cash Mange your capital and expense budgets Fund projects and upgrades out of budget cycles Align payments to deployment to improve project economics Manage payment timing Manage cash flow strategically Close budget gaps Align payment with use Microsoft Payment Solutions is available in United States, Canada, United Kingdom, Germany, Spain, Belgium, France, Italy, Switzerland, The Netherlands, Australia, New Zealand, Japan and Brazil For informational purposes only. This does not constitute an offer of credit by Microsoft or any affiliate of Microsoft. To receive financing, a customer must be credit-approved by the applicable third-party financing provider. The financing agreement sets forth the terms and conditions on which financing is offered. 52

4/15/2017 Flexible options manage payment challenges Problem For some customer scenarios, signing a SCE will increase costs due to the installed base coverage requirements Scenarios Installed base coverage: Customer faces an incremental upfront cost to meet SCE installed base requirements for Software Assurance Cover Windows Server with System Center: Customer must purchase additional System Center licenses to cover the entire Windows Server deployment Deferred licenses in EAP Renewals: Customer has a large amount of deferred Licenses in their EAP and will need to buyout or renew into subscription Subscription in the SCE: Customer must pay the annual subscription cost upfront each year In addition to solving budget and cash flow issues, Microsoft Payment Solutions is also a great option for SCE customer who are facing higher pricing as a result of: Installed Base Coverage requirement: Customer faces an incremental upfront cost to meet SCE installed base requirements for Software Assurance Cover Windows Server with System Center requirement: Customer must purchase additional System Center licenses to cover the entire Windows Server deployment Deferred L in EAP Renewals: Customer has a large amount of “Deferred Licenses” in their EAP and will need to buyout or renew into subscription Subscription in the SCE: Customer must pay the annual subscription cost upfront each year With Microsoft Payment Solutions, customers have a toolbox of flexible payment options that allow then to off-set a higher price point and structure payment to coincide with when budget is available. For example, a customer who does not have enough budget in the current fiscal year to make the first SCE payment can defer making any payments for up to six months and/or then make small equal payments monthly or quarterly. Customers who want to map investment with the deployment schedule or who are expecting to have larger IT budgets in years 2 and 3 may choose to ramp their payments – this would mean paying, for example 10% of the entire 3-year SCE investment in year 1 when funds are needed for other projects, 30% in year two and 60% in year 3 when more funds are available. Flexible payment solutions Option 1: Customers with budget constraints can defer making payments until their next fiscal year starts Option 2: Customers with budget constraints can ramp their payments over time, instead of making three equal payments each year Option 3: Customers who want to manage their cash flow can make equal monthly or quarterly payments over the term or arrange monthly payment for subscriptions. (annual subscription commitment is still required) 53 © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

4/15/2017 Planning for FY14 In closing, let’s see what the schedule of activity is for SCE 54 © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Windows Server Management Marketing
4/15/2017 Program availability & launch July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June SCE: Launch November 10th ECI Available EAP Available SCE CIS DC Promotion: Additional 15% off CIS (WS/SC) DC SCE SKUs on Preview Pricelists SCE SKUs Available: November 1st Windows Server 2012 R2 SKUs available: November 1st 90 day grace period until 31st Jan 2014 SCE Only How should we think about Sales execution in FY14. For a number of reasons, guidance is that EAP and ECI should be the primary focus in H1. SCE won’t be available in our systems until November 10th, which means getting a customer committed and signed in H1 will be very difficult. In H2, however, SCE is our main motion for EAP and ECI renewals. And of course for ECI customers not willing to commit to an SCE, they can just renew CIS SKUs in EA/Select. To support the SCE motion in H2, we will also have a on price list promotion for SCE customers, specifically for CIS DC. This promotion will apply and additional 15% off both L&SA and SA SKUs in the SCE. 55 © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

4/15/2017 © 2013 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION. 56 © 2010 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Server and Cloud Enrollment (SCE) L200 licensing overview

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Server and Cloud Enrollment (SCE) L200 licensing overview

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