Server and Cloud Enrollment (SCE)

Server and Cloud Enrollment (SCE)
4/19/2017 Server and Cloud Enrollment (SCE) Hello everyone, my name is __________ and I’m here to tell you about the Server & Cloud Enrollment. This exciting new enrollment will help us drive larger commitments with our customers. It will simplify their access to the cloud, and it will deliver strong customer value. © 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
Agenda Server & Tools Business 4/19/2017 Server and Cloud Enrollment (SCE) value proposition How Server and Cloud (SCE) Enrollment works Implications for EA, EAP and ECI 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 Using Microsoft Payment Solutions Next Steps © 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.

Transformational Trends
Server & Tools Business Transformational Trends 4/19/2017 New Social & App Patterns >1B 200M 10.4M 160M Cloud Computing 2011  x increase compute network storage There are trends occurring in the computing industry today that are drastically changing not only our customers’ approach to IT but also how Microsoft has to deliver products and services in the future. We expect to see a 500% increase in cloud-hosted workloads over the next few years. Applications are being developed faster and cloud-enabled from the start. The number of connected devices in the world is twice the number of PEOPLE. And by FY14, we expect there to be 3.3 devices per worker. Finally, more and more data is being collected with the expectation of real-time analysis. IDC estimates that the amount of data will increase by 44 times over the next decade. Even today, Microsoft Azure uses more server compute than the entire planet used in 1999. 3.3 devices per worker by 2014 Consumerization of IT x 90% of the data in the world today has been created in the last two years alone Data Explosion Total world data to date The last 2 years © 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 cloud OS Server & Tools Business 4/19/2017 Modern platform for the world’s apps Transforms the datacenter Customer Service provider Microsoft Azure Empowers people-centric IT 1 Consistent platform CONSISTENT PLATFORM Unlocks insights on any data So how do we respond to this changing environment? Microsoft’s vision is to provide a single, consistent platform for their infrastructure, applications and data that can span customers’ datacenters on-premises, hosting service providers and the Microsoft public cloud. We self-host some of the largest cloud services in the world, through which we have gained world- class experience deploying and managing global cloud services. Only Microsoft has the ability to provide this entire platform to our customers. As our product innovation continues toward the Cloud OS vision, Microsoft is also delivering a new licensing platform to support it. Enables modern apps Development Management Data Identity Virtualization 4 © 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.

Licensing Foundation for the Cloud OS
4/19/2017 We need to provide you a licensing program that is: Cloud Enabled Grow in the cloud organically, without losing the value built in existing technologies Standardized & Simplified Streamline deployment and license management with a single licensing vehicle License So what do our customers need through licensing to support the Cloud OS vision? First of all, they need it to be cloud-enabled. They need a vehicle that eases cloud adoption, provides unique cloud benefits, and makes managing cloud licensing and on-premises licensing simple through a single agreement. And for customers who are standardizing on our server and cloud technologies, we need to provide them simplified license management and deployment options, as well as our best pricing, discount and best benefits so they receive very high value. Cost Savings & Benefits Best pricing and additional benefits that support the Cloud OS platform © 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 & Cloud Enrollment (SCE) 4/19/2017 A new licensing program for highly committed customers Cloud enabled Standardized and simplified Consistent cloud OS platform Access to newest technologies Reduce license management Single enrollment for server and cloud technologies License Cost savings and benefits Easy onramp to cloud Application license mobility Cloud management benefits Subscription flexibility Best pricing and terms Unlimited support* Enterprise product rights predictability We’re delivering this to our customers through the new Server & Cloud Enrollment. This enrollment is cloud-enabled – it gives our customers easy on-ramp to begin using Microsoft Azure. It gives them our lowest Microsoft Azure pricing. It has new subscription options to offer customers more flexibility when migrating to the cloud And for System Center-committed customers, it provides a new benefit allowing them to manage their Azure resources with System Center at no additional cost. The Server & Cloud Enrollment also allows us to consolidate three existing enrollments – the Enrollment for Application Platform, the Enrollment for Core Infrastructure and the Enrollment for Microsoft Azure into this single enrollment for our Server & Cloud technologies. This, along with a standardized set of SKUs, terms, discounts and benefits, does help simplify licensing for customers. Customers will also have access to the newest technologies across all their deployments and a standardized management platform that can span on-premises and Azure. Lastly, we’re committed to delivering high value to our customers by giving them the best price and the best benefits on our Server & Cloud products that include discounts on new licenses, SA renewal and Azure. Customers also get enterprise product use right protections, And ELIGIBLE customers may also qualify for premium benefits like unlimited support. *For qualifying customers SCE is also available for Government customers through the Government Partner model. For education customers, we continue to offer the Education Server Platform through the EES for customers wishing to simplify their server licensing. © 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 Server & Cloud Enrollment (SCE) 4/19/2017 Choose 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 Microsoft Azure cloud services Available automatically Can also be licensed standalone Now let’s talk about how this works. The Server & Cloud Enrollment will offer four different components: Core Infrastructure Application Platform Developer Platform and Microsoft Azure. Customers can choose from any of these components individually or group them as needed. Microsoft Azure is: automatically available when enrolling in any of the other three components and it can also be licensed standalone. Now for those of you who are familiar with the Enrollment for Application Platform, you’ll notice that the Server & Cloud Enrollment has very similar requirements at signing. Each of the first three components will require 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 Microsoft 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.

Windows Server Management Marketing
SCE and Microsoft’s Enterprise Agreements (EA) Windows Server Management Marketing 4/19/2017 3 year commitment made under an EA Includes EA benefits such as volume discounts Provides renewal options for existing EAP & ECI customers* So now, how do customers get started? Well a key part of the creation of the Server & Cloud Enrollment is to drive consistency across our Enterprise Agreement. The Server & Cloud Enrollment lives under the EA, and has very similar terms to the Enterprise Enrollment where customers make commitments to Office, the CAL suites and the desktop. Customers can sign 3-year agreements and have access to EA benefits such as volume discounts. The most flexible and predictable terms available *ECI customers must make an installed base commitment to the Core Infrastructure Suite (CIS) with SA. © 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.

Moving to SCE 4/19/2017 EAP and ECI customers are not impacted during the term of your existing agreement Enrollment For Application Platform (EAP) customers EAP customers can renew their installed base commitments in the SCE Additionally, customers will now have more seamless access to Microsoft Azure, new more flexible subscription options and a standardized set of discounts with the Enterprise Agreement Enrollment For Core Infrastructure (ECI) customers With an installed base commitment to CIS in SCE, customers have access to our best pricing and terms, new subscription options and new Microsoft Azure benefits Customers not making installed base commitments to the Core Infrastructure Suite can license it through other volume licensing programs, with no dedicated contract or minimums 9 Now let’s talk briefly about what this means for our EAP & ECI customers. EAP For EAP customers, it means a couple of key changes. The first is related to discounts. While EAP today has no discount on Software Assurance, within the Server & Cloud Enrollment they’ll be able to receive a 5% discount on SA. On new units, as we standardize on a common 15% discount off L+SA, it does mean some slight changes. Premium products like SQL Server Enterprise Edition will go up a little bit in price and Standard products will go down a little bit in price. EAP has also traditionally offered the opportunity for customers making their installed-base-wide commitment to bring legacy licenses deployed in as “SA only.” We call these the SA Prior L SKUs that they include. These SKUs are no longer available in the SCE. Instead, we have the new, more flexible subscription option that we talked about earlier. This is a great option for customers to cover those legacy units and have the incremental flexibility moving forward to retire, consolidate or move those to the cloud as they need to. ECI ECI transitions, however, are more complex, because ECI customers may or may not have already made (or be interested in making) an installed-base-wide commitment to the Core Infrastructure Suite. Let’s talk about customers who have not made the installed-base-wide commitment. For those customers, they have the opportunity to renew into the Core Infrastructure Suite SKU in our other programs as we talked about earlier. That SKU is available in those programs with a 5% discount versus the standalone products. And, with the launch of R2, we’re providing a 5% discount off the SA for those SKUs as well. For those ECI customers who have made (or are interested in making) the installed-base-wide commitment within SCE, they will receive incremental discounts on the CIS SKU of 15% off new L+SA units and 5% off SA 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.

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 Manage payment timing & close budget gaps Manage cash flow more strategically Align payment with use 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 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. 10

Leverage Microsoft Payment Solutions 4/19/2017 Converting from ECI and EAP to SCE with flexible payment options Deferred payment option Ramped payment option You pay less in the near term and then increase payments in later periods when more funds are available There is limited budget and you want to map payment to the ROI of the SCE investment over time Monthly / quarterly payments You defer making any payments for up to six months when there is an immediate need but budget isn’t available till the next fiscal year You 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 You may not be aware that Microsoft offers a range of flexible payment options to help you structure your new SCE agreement or renewal payment on your own terms. Depending on your specific needs, you can take full advantage of Microsoft Payment Solutions in a number of ways to manage your cash flow more strategically and avoid making a large upfront annual investment. For example: If you would like to purchase SCE today but do not have enough funds left in this year’s budget – with Microsoft Payment Solutions you can defer making a payment for up to six months until the next fiscal year when more funds are available. This allows you to get the technology you need today even if you can’t full fund it in the current fiscal year. As with any EA enrollment, SCE requires that you make three equal payments each year. This may not always be well aligned to your organization’s investment and cash flow needs. With Microsoft Payment Solutions, you can ramp your payments over the term of SCE – 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. Alternatively, your organization may wish to avoid having to make an large upfront payment each year – and rather utilize cash as it becomes available each month. With Microsoft Payment Solutions, you can spread your annual payments into equal monthly payments over the term of SCE. Examples There is not enough budget in current fiscal year to cover the year 1 SCE payment You plan to renew into SCE but want to manage cash flow with spread payments 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 © 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.

Next Steps 4/19/2017 The SCE will be available in Q4 of CY2013 Learn more about SCE on microsoft.com © 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.

© 2013 Microsoft Corporation. All rights reserved
© 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.

Appendix

SCE is an evolution of the EAP 1 2 3 4 With four important additions
4/19/2017 With four important additions 1 Core Infrastructure Suite (CIS) is available (Windows Server + System Center) 2 Includes Microsoft Azure by default 3 Standardized discounts & terms 4 Subscription option added (no more deferred license) 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 changes to what was EAP. The first of those changes is the introduction of the opportunity for customers to make an installed-base- wide commitment to Windows Server plus System Center through the CIS SKUs. Now 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. The second change is we’re making Microsoft Azure available by default. We want every SCE customer to have the opportunity to go begin using Azure very easily. Third, as part of our simplification, we’re going to begin standardizing the discounts and terms in this contract versus the myriad of contracts we had previously. What this means is that we’re going to provide a consistent, 15% discount off of L+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. And lastly, we’ll have a new set of subscription options instead of the deferred L or Prior L model that EAP had. These subscription options are very exciting. This will be the first contract we’ve ever had where customers can mix perpetual and subscription licenses in the same vehicle. © 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.

Building your SCE 4/19/2017 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 All Microsoft Azure cloud services And here is a more detailed view of the available products and the enrollment minimum order requirements. 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 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.

Microsoft Azure in SCE 4/19/2017 Microsoft Azure can be licensed in two ways through SCE SCE Microsoft Azure Azure only SCE Customer’s EA level is defined by the initial customer commitment Core Infrastructure It is important to understand that Microsoft Azure can be licensed in one of two ways in SCE. A customer can choose to commit to Microsoft Azure in SCE. When a customer commits to Core Infrastructure, Application Platform and/or Developer Platform, they can start using Microsoft Azure automatically. Available automatically With commitment to any of the other components of SCE Application Platform Developer Platform 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.

Microsoft Azure for committed SCE customers 4/19/2017 SCE If you commit to another SCE component, you can just start using Microsoft Azure: Another 5% off EA level pricing (excluding Azure Storage) No overage penalties Billed quarterly* Automatically available Upfront commitment not required* Pay for what you use On-boarding help Microsoft Azure Core Infrastructure What does it mean to be able to start using Microsoft Azure automatically? It means that the customer is automatically provisioned for Microsoft Azure in the Enterprise Portal. You also gets another 5% off EA level pricing for Azure when you commit to another SCE component and only pay for what is used. Available automatically With commitment to any of the other components of SCE Application Platform Developer Platform *If no monetary commitment, quarterly billing is the default 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.

4/19/2017 Microsoft Azure only SCEs SCE Microsoft Azure Azure only SCE Customer’s EA level is defined by the initial customer commitment You can also sign a Microsoft Azure only SCE: Same great Azure benefits available to all EA customers Upfront commitment required No additional 5% SCE discount Core Infrastructure Customers also have the option of signing a Microsoft Azure only SCE – this means that the customer purchases Microsoft Azure only without a commitment to any of the other 3 SCE components. As you can see, in this case, the customer signs a 3 year contract but has the ability to increase and/or decrease their commitment annually. The guidance is that the customer should make a minimum commitment of $24,000 but the only real limitation is a quantity of 1 which equals $1,200 a year. Application Platform Developer Platform 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.

Additional products 4/19/2017 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 except for Online Services 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, however 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.

How to establish the customer footprint 4/19/2017 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.

Enrolling in the Core Infrastructure Component
4/19/2017 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 includes CIS licenses with SA, Windows Server licenses with SA and Windows Server licenses without SA. Licenses in use without SA 40 Windows Server SE © 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
4/19/2017 Step 2: Renew SA in SCE; Add L&SA or Subscription Existing Baseline SA*: 50 CIS Datacenter 100 CIS Standard L&SA*: 50 CIS SE w/out Windows Server L&SA**: 40 CIS SE Subscription**: SCE CPS OR CIS Licenses in use with SA 50 CIS Datacenter 100 CIS Standard Standalone Licenses in use with SA 50 Windows Server SE 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 Windows Server 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 40 Windows Server SE *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) **Customers can choose a combination of L&SA or Subscription © 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 4/19/2017 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 you to pay for each month deployed and will be priced at 35.5% of the license only price* You must commit to a minimum of 12 months You can reduce subscription units no longer being used for deployed workloads at each anniversary date If you 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 customers 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.

How Subscriptions Work
4/19/2017 Adding Subscription at signing Year 1 Year 2 Year 3 Adding MSUs at signing: 40 x MSU price x 12 months Automatic Annual Billing Automatic Annual Billing Year 1 + 40 CIS SE Subscriptions (via MSUs) Here is an example of a customer adding subscription units at signing. You can see that they add 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 © 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.

4/19/2017 License Reductions Year 1 Year 2 Year 3 Reducing subscription licenses: 40 x MSU price x 12 months Year 1 + 40 CIS SE Subscriptions (via MSUs) 35 (40-5) x MSU price x 12 months Automatic Annual Billing Year 2 - 5 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. -5 MSU Reduction: Pay for 35 MSUs moving forward* © 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.

4/19/2017 Adding Subscription Units at True Up in Years 1 & 2 Year 1 Year 2 Year 3 Adding MSUs at True Up: Year 1 True Up + 5 CIS SE Subscriptions (Deployed in month 9 of first year) 5 x MSU price x 15 Automatic Annual Billing 3 mo +12 months Now let’s look at another 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 they 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. You add 5 MSUs: Pay for 15 months at the end of Year 1 Pay for each month deployed in previous year Pay forward 12 months © 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.

4/19/2017 Adding Subscription Units at True Up in Year 3 Year 1 Year 2 Year 3 Adding MSUs at True Up: Year 3 True Up + 5 CIS SE Subscriptions (Deployed in month 6 of year 3) 5 x MSU price x 6 months 6 mo 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 6, so would pay for the 6 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. You add 5 MSUs: Pay for 6 months at the end of Year 3 End of Year 3 Options: Renew, Buy-out, Stop Using © 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.

Cloud Management Benefit
Server & Tools Business Cloud Management Benefit 4/19/2017 SCE customers enrolled in the Core Infrastructure component can use System Center to manage Microsoft Azure VOSEs: Eligible Microsoft Azure VOSEs instances:* Windows Virtual Machine instances Cloud Services instances (Web and Worker Role) Storage Accounts SQL Databases Websites 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 Microsoft 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 Microsoft 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 Microsoft Azure Virtual OSEs for each CIS license they have in their SCE. *Limited to 10 eligible Microsoft Azure VOSE instances for each CIS 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.

4/19/2017 Unlimited problem resolution support* Unlimited support when you 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 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.

Server and Cloud Enrollment (SCE)

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Server and Cloud Enrollment (SCE)

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