1. SAM Opportunities Suzanne Caldwell License Compliance Manager

2. Agenda Why SAM is good for Business Microsoft’s FY06 SAM Strategy Updated SAM Tools Mislicensing Strategy WGA Q&A

3. Why SAM is good for business Piracy Rate in Australia is 32% - Revenue Loss $409M USD SAM Revenue has grown by 112% YOY in Mid Market Microsoft conducted 700 SAM engagements in Mid Market last year and will engage with another 700 in FY06 Microsoft conducted numerous ACE reviews and SAM engagements in Enterprise in FY05 and will conduct in FY07 SAM Seminar Results – 23 held across Australia/269 attendees 95% of SAM Revenue is derived through Volume License Sales Top 3 SAM delivered products: Office Family39% Win Server & Win CAL’s21% Exchange Server & Exchange Server CAL’s11%

4. Research Results Microsoft Research* shows: −Only 47% have SAM policies for internal staff −Only 45% have reviewed the way they purchase, transfer or retire licenses BSAA Research** Shows −65% of companies and organisations do not know whether employees have downloaded or made illegal copies of software −46% do not have clear policies on Internet downloading and software use −66% of businesses surveyed do not conduct software audits or check what software workers are using −41% admitted that they do not know if they are correctly licensed for software used in their organisation. Source: *Leading Edge MB W8 FY05 **BSAA Press Release July 05

5. FY06 SAM Strategy SAM Telesales –Customer contact via dedicated SAM Telesales heads with strong licensing skills –Right person, right model, right message SAM Reviews –Direct customer engagement –License shortfall revenue –Help customers gain control of their software assets –Drive SAM Services Engagement through Partners SAM Ecosystem Development –Continue SAM Seminars –Promote long-term compliance through SAM standards –Partner development through Competency –Press/Analyst relations (AR)

6. Why SAM is good for business Andy Booth, Head of IT, United Business Media “SAM is easier to sell to the board than a threat. Any organisation that adopts SAM will measure, prove and demonstrate a significant ROI on their software asset base” Gartner Published, Jan 18, 2005 “Microsoft is changing for the better. It has seized on Software Asset Management (SAM) as the solution to relationship difficulties and its need to ensure that buyers pay the correct amounts for using its software. This is a radical change for Microsoft...”

7. Basic SAM SAM Needs Hierarchy ProActive SAM Strategic SAM

8. SAM Solution Lifecycle Maximize Software ROI Avoid compliancy issues Have centralized view of contracts and assetsHave centralized view of contracts and assets Better control over processesBetter control over processes Objective Critical Success Factors: Lessons Learned Approach Service solution as opposed to tool or internal developmentService solution as opposed to tool or internal development Enterprise wide SAM solution Centralized management of assets and procurementCentralized management of assets and procurement Establish standards Results Customer “25% IT savings” Gartner Full overview of installed base Fully auditable Closer relationship with Vendors Better license re-negotiation Partner Service Revenue Stream Deeper customer relations View of customers IT real-estateView of customers IT real-estate Problem – Maximizing the return of your “Software” Assets No centralized view of IT infrastructureNo centralized view of IT infrastructure No visibility of spend info Variety of suppliers and contractsVariety of suppliers and contracts Multiple standards No view of true TCO Service Solution Approach Senior management support Convincing local IT ManagementConvincing local IT Management

9. Problem – Maximizing the return of your “Software” Assets No centralized view of IT infrastructure No visibility of spend info Variety of suppliers and contracts Multiple standards No view of true TCO

10. Objective Maximize Software ROI Avoid compliancy issues Have centralized view of contracts and assets Better control over processes

11. Approach Service solution as opposed to tool or internal development Enterprise wide SAM solution Centralized management of assets & procurement Establish standards

12. Results Customer: “25% IT savings” - Gartner Full overview of installed base Smoother relationship with vendors Better license re-negotiation Partner: Service revenue stream Deeper customer relations View of customers IT Real Estate

13. Critical Success Factors: Lessons Learned Service solution approach Senior management support Local IT management support

14. Updated SAM tools

15. Launched New SAM Customer Website Improved Targeting SAM Advisor Extensive Content Offering: Quick explanatory videos Step-by-step instruction Dozens of downloadable documents –Policies –Templates –Testimonials Case Study Spotlight

16. SAM Website – Customer ROI Calculator

17. ISO\IEC 19770 status: Document released as draft ISO\IEC standard on 21 st May Normal review must follow, could take a year to approve but will be a viable working document for industry purposes (notwithstanding Process Acceptance Testing completion). Overall Structure: 3 parts to the standard will be developed. Only the first is currently mandated, but other two will be mandated as soon as practical. They can be used as unofficial guidance materials prior to formal status. –19770-1 Software Asset Management Requirements [a standard] –19770-2 Software Tag [a standard] –19770-3 Software Asset Management Requirements [guidance] ISO Standard Emerging Today

18. Licensing Competency

19. MSPP Licensing Solutions Competency Problem Statement: –Acquiring and managing software licenses can be complex and daunting to customers Purpose: –Microsoft created the Licensing Solutions Competency to help customers find and work with qualified solutions partners to assist with their license acquisition, software asset management, and planning Software Asset Management is one of the Competency scenarios Courseware and exam currently available. Launch October 05 Specializing in License Delivery Software Asset Management

20. Software Asset Management (SAM) Specialization SAM solutions partners have detailed knowledge of Microsoft licensing programs & provide SAM services to organizations of all sizes – 2 MCPs who have passed the SAM Exam: – 3 Verifiable Customer Reference Requirements focused on SAM License Delivery Specialization Designed for partners with proven expertise in design, recommendation, and acquisition of Microsoft Volume Licensing options – 2 MCPs who have passed one of the Licensing Exams – 3 verifiable Customer References focused on Licensing – Minimum Sales Bar - Rolling 12-month cycle Note: Passing one of the MCP exams earns an MCP accreditation Licensing Solutions Competency Requirements

21. Partners who have earned this Microsoft Competency are granted additional licenses (as detailed below) for internal use and training purposes. Licensing Solutions Competency - Software License Benefits

22. Licensing Solutions Competency - Training / Exam Resources Course: Volume Licensing Essentials (VLE)—Prerequisite for the following: http://members.microsoft.com/partner/profile/learningcenter.aspx?courseid=432 http://members.microsoft.com/partner/profile/learningcenter.aspx?courseid=432 Training for Licensing Solutions Competency: –1. Course: Volume Licensing for Small and Medium Businesses—Training at: http://members.microsoft.com/partner/profile/learningcenter.aspx?courseid=531 Exam: 70-121—Designing and Providing Microsoft Licensing Solutions to Small and Medium Organizations Exam prep guide at: http://www.microsoft.com/learning/exams/70-121.asphttp://www.microsoft.com/learning/exams/70-121.asp –2. Course: Volume Licensing for Large Organizations—Training at: http://members.microsoft.com/partner/profile/learningcenter.aspx?courseid=532 Exam: 70-122—Designing and Providing Microsoft Licensing Solutions to Large Organizations Exam prep guide at: http://www.microsoft.com/learning/exams/70-122.asphttp://www.microsoft.com/learning/exams/70-122.asp Training for SAM: –Course: Software Asset Management (SAM) Essentials—Training at: http://members.microsoft.com/partner/profile/learningcenter.aspx?courseid=527 Exam: 70-123—Planning, Implementing, and Maintaining a Software Asset Management (SAM) Program Exam prep guide at: http://www.microsoft.com/learning/exams/70-123.asp

23. Microsoft SAM Roadmap SAM as Customer and Partner best practise Skilled Partners Licensing Solutions Competency ISO/IEC 19770-1 Software Asset Management process standard Customer Reward and Recognition

24. Calls to Action…. Look at your SAM messaging consider the following: –SAM Solution positioning –ROI messages Review SAM seminar proposals when finalised Review Direct SAM engagement proposals when finalised Submit any potential customer SAM advocates to suzannec@microsoft.comsuzannec@microsoft.com Review new customer/partner tools and resources at www.microsoft.com/resources/sam www.microsoft.com/resources/sam/partnerjump.mspx Take the SAM Competency and the Licensing Competency exams at www.microsoft.com/learning/exams/70-123.asp Learn more about SAM ISO Standards at….. www.bsi-global.com/bsonline.www.bsi-global.com/bsonline

25. Mis-Licensing Strategy

26. –Enterprise Agreements, Open License, Select License, Academic Open, Academic Select, Campus Agreements, School Agreements, etc. These Volume License programs offer Windows upgrades only –Upgrades are designed to upgrade previously acquired full Windows licenses –You must first acquire the full Windows license from an OEM/System Builder or via the retail channel The initial full Windows Operating System is not available via any Microsoft Volume Licensing Program or through offers such as Software Assurance: NOT VL Agreements = Upgrade Licenses Only

27. Mis-Licensing Proposition To help customers; –better understand and follow licensing terms for Windows OS under Volume Licensing agreements, –help them avoid inadvertent non-compliance Late 2005, Microsoft will remove full Windows operating system software and provide upgrade version within the Volume Licensing Welcome and Comprehensive Kit CDs Full bits will still be available* to customers via 1.Download from MVLS or, 2.Special order a CD through their Reseller (*upon making a license acknowledgement statement.)

28. The license acknowledgement statement says: “By checking this box, I acknowledge that I may install this full version of Windows only on desktops for which my organization has acquired: □ A qualifying operating system license AND a Volume Licensing Windows XP Professional upgrade license, or □ A full license for Windows XP Professional through an OEM or from a retail source (Full Package Product) [See the Product List for details.] ANY OTHER INSTALLATION OF THIS SOFTWARE IS IN VIOLATION OF YOUR AGREEMENT AND APPLICABLE COPYRIGHT LAW.” Mis-Licensing Proposition

29. Mis-Licensing Marketing Communications Marketing communications clearly reflect Windows OS licensing rules

30. Microsoft Volume License Product Keys: A Volume License Agreement does not cover the Full Widows Operating System; a Volume License Agreement provides only an Upgrade license for Windows. Your Volume License Key may not be used to install a full version of the Windows Operating System. Volume License Keys may only be used to install Upgrades to licensed Operating Systems after the full version of Windows has been installed. Please be aware that, to qualify for standard benefits such as support and updates, you must be properly licensed. Mis-Licensing - Customer VL Letter Content

31. Mis-Licensing – Media Fulfillment

32. Mis-Licensing Proposition Launching Late 2005 WGA Launch

33. Windows Genuine Advantage (WGA) What is WGA? –A new program that lets your customers validate their Windows XP software as genuine Why WGA? –A simple and easy way for your customers to validate their Windows as genuine –Customers want to know if they received what they paid for –Customers want extra benefits for their investment in genuine Windows –Microsoft wants to reward genuine customers and help partners sell genuine

34. WGA Details Windows updates on Download Center and Microsoft Update Web site available only to genuine Windows users These downloads require validation A simple process – no product key entry required For customers who discover they have non-genuine Windows –Limited time offer to get a genuine copy of Windows XP directly from Microsoft Security updates will still be available to all users Additional offers available only to genuine Windows customers –Windows AntiSpyware –Photo Story 3 –Training Videos –Other discounts and promotions

35. Promoting Genuine Windows Microsoft Value of Genuine Go-to-Market Campaign: –Creates customer awareness of the differentiated value delivered from genuine Windows vs. counterfeit or pirated Windows –Drives demand for genuine Windows –Enables customers to validate their Windows software through Windows Genuine Advantage –Provide tools for you to use with your customers Global “Start Something” campaign –Genuine Windows message integrated Genuine message featured throughout Windows in FY06 Customers will be hearing about genuine Windows

36. Next Steps Visit the Windows Genuine Advantage To validate your own system and learn about the specific offers available –www.microsoft.com/genuine/www.microsoft.com/genuine/ Visit our partner web sites to learn more –www.microsoft.com/oemwww.microsoft.com/oem –www.microsoft.com/partnerwww.microsoft.com/partner Additional Resources –www.microsoft.com/howtotellwww.microsoft.com/howtotell –www.microsoft.com/smallbusiness/genuinewww.microsoft.com/smallbusiness/genuine

37. Questions