2. | EMEA Channel Partner Conference 2014

5. Microsoft | EMEA Channel Partner Conference 2014 Services Channel Incentives Azure in EA – Drive for Simplification Categor y ChallengeChangeWhat this means for customers Pricing Commitment discount was the product of VL price level (A-D) and commitment volume(Tiered discount in portal) Removal of tiered discounts for Monetary Commitment CPS shows actual price and invoice confusion is eliminated PricingHigher usage rates in place for consumption of Azure in excess of monetary commitment Removal of Overage PricingCommit SKU Price = Overage SKU Price Adoption of Windows Azure without risk Sales 12 month order required at anniversary each year. Challenges in top-up coverage alignment Same service alignment Challenges Inconsistency with all other OLS offerings Removal of 12 month subscription term Reduced credit and rebills Eliminated confusion when topping up Increased flexibility with less manual touch Alignment with all other OLS offerings Sales No flexibility when ordering coterminous, risk of overcommitting and losing money Inconsistency with all other OLS offerings Added option to increase or decrease commitment at anniversary Minimize customer risk Alignment with all other OLS offerings Pricing Future Pricing table more than 50% of an Azure CPS Large manual effort to enter all future SKU’s Removal of Future Pricing Table on CPS, now optional Future pricing table only required now for discounting Portal records/manages prices, reducing risk of ops errors/corrections Operations (SSA) Same Service Alignment Bug generated large volumes of credit and rebills to correct Azure coverage periods SSA bug resolvedElimination of credit and rebills to fix incorrect coverage dates generated by system Reducing order complexity in Azure program ● Reducing order corrections for Azure customers ● Driving broad activation of Azure by EA customers ● Providing friction free access to Azure for EA customers ● Aligning Azure to EA purchasing motion ● Helping customers understand their Azure needs

6. | EMEA Channel Partner Conference 2014

7. Microsoft | EMEA Channel Partner Conference 2014 Services Channel Incentives Windows Azure Global Footprint 7 24 x 7 x 365 support. 90 markets worldwide. >$1bn invested in Azure expansion in 2014

8. | EMEA Channel Partner Conference 2014 The partner channel is the key to success Apps are going SaaS (both packaged & custom) We are going to the cloud (fast) 201 2 201 3 201 4 | EMEA Channel Partner Conference 2014

9. Partners are beginning to host solutions for customers Customers are relying more on Distributors for value-add Majority of revenue generated by channel

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12. Provide your feedback on the sessions through the Conference App and be eligible to win one of five Nokia Windows Phone 8 Visit the Conference App now at partnerconferenceapp.com. ALL Partners who provide feedback through the Conference App will receive a one year subscription to Office 365 Home Premium Let’s Break New Ground Together.

13. © 2014 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 presentations. 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 CONFIDENTIAL – FOR PARTNER USE ONLY. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.