1. Channel Training Content 1. Windows Vista Enterprise And Mid-Market User Scenarios 2. Customer Profiling And Segmentation Tools 3. Windows Vista Business Value And Infrastructure Optimization 4. Windows Vista Product Features 5. Windows Client Volume Licensing And Software Assurance Benefits With New Mid-Market Offerings 6. Sales Pitches 7. Resources

2. Windows Client Volume Licensing And Software Assurance Benefits With New Mid- Market Offerings Presenter Name 1/12/2016

3. Agenda Windows Client Volume Licensing Software Assurance Benefits SAB 3.0 & Windows Client Pitch Cash Manager Customer TCO Customer IT Customer Business Value Customer New Mid-Market Offerings

4. Capture renewed customer interest Drive incremental revenue Windows Vista launch in Aug/Sept 2006 SAB 3.0 launched in Nov 2005 Value of Software Assurance has never been greater Limited-time offers: Attach SA to PCs within 180 days of purchase Up-sell from U to U&SA with 30% discount on the U Unique Window of Opportunity To Sell Windows Client Volume Licensing

5. What Is Volume Licensing? Ability To Purchase Upgrade Licenses At A Steep Discount From Microsoft Via… Open Agreement Select Agreement Enterprise Agreement

6. Windows Client Volume Licensing Options And Software Assurance Benefits *Can be added to Open and Select agreements within 180 days of PC purchase in Q4; already included in the Enterprise Agreement Open Pay as you go No set coverage Select Enterprise Software Assurance* Pay as you go Specified volume over 3 years Annual payments for 3 years Entire enterprise Annual payments for 3 years Specified volume over 3 years Payment terms PCcoverage Upgrade licenses Future OS releases Windows Vista Enterprise Training and other benefits   

7. What Is Software Assurance For Windows Client? Differentiated technology Integrated solutions Future upgrade rights

8. The History Of Software Assurance March 2006 2006 Launched a competitive traditional maintenance offer including Spread Payments and New Version Rights with a vision for future value 2001 September 2003 Major enhancements focus on customer value with biggest software release on the horizon Announced new benefits to address value and satisfaction feedback and differentiate the maintenance offer (training, support, Home Use, EPP, eLearning, TechNet, WinPE, CER, Disaster Recovery, ESLP)

9. Partner Opportunities For Windows Client EA And SA Increased revenue for partners Enhanced customer relationships for partners

10. Benefit Activation And Usage = Renewal Customers who activate and use Software Assurance benefits renew at higher rates Renewal Rates by Segment Renewal Rates by Agreement 48%increase 77%increase 98%increase 38%increase 46%increase 72%increase

11. Software Assurance 3.0 Providing technology, services, support and financing to manage the software lifecycle New Version Rights Spread Payments Windows Vista Enterprise Virtual PC Express for SA Training – Extended Vouchers for Enterprise Customers eLearning Home Use Program Employee Purchase Program Enterprise Source License Program Desktop Deployment Planning Services Information Work Solution Services Windows Pre-Installation Environment Extended Hotfix Support Windows Fundamentals for Legacy PCs 24x7 Business Critical Support for Problem Resolution TechNet Plus Cold Backups for Disaster Recovery Corporate Error Reporting Items in white are new for 2006

12. Available exclusively to Windows Client Software Assurance customers, Windows Vista Enterprise is the OS solution optimized for medium and large sized organizations Windows Vista Enterprise includes features you expect from our standard professional OS version, plus additional new functionality to maximize your desktop investment Enhanced Data Protection Windows® BitLocker™ Drive Encryption Subsystem for Unix- Based Applications (SUA) Virtual PC Express for Windows Vista Multi-Lingual User Interface Packs (MUI) Windows Vista Enterprise Overview Data Protection Application Compatibility Worldwide Deployment

13. Enhanced data protection Helps protect sensitive data and intellectual property from being compromised on a lost, stolen or recycled machine Native hardware and software support for encryption of hard drives and file system help ensure that corporate and client data never falls into the wrong hands Easy to deploy and manage Trusted Platform Module (TPM) 1.2 chip, built into the PC hardware, is used by Windows Vista Enterprise to seal the keys that encrypt and decrypt sectors on the Windows hard drive Transparent to the end user Requires no additional user authentication other than standard logon procedure Setup will automatically escrow keys & passwords into AD for centralized key storage/management With BitlockerTM Drive Encryption, you will have the peace of mind that sensitive business and customer information will be more protected regardless where your mobile employees work BitLocker™ Drive Encryption Improves IT Security By Providing Enhanced Data Protection

14. Windows Vista Enterprise Can Extend The Life Of Legacy Applications & Can Reduce Customers’ Application Compatibility Costs Mitigates legacy applications barriers Virtualizes, with software, a complete hardware system directly integrated into Windows Vista Enterprise Supports Guest Eases integration between Windows and UNIX/Linux Helps with migration of UNIX-based applications Includes 64-bit support and database connectivity libraries With Virtual PC Express and SUA, your legacy applications can run longer and the need for costly rewrites is lessened Virtual PC Express Subsystem For Unix Applications (SUA)

15. A single, multi-lingual disk image can be deployed worldwide to all PC form factors (desktop, laptop, tablet) Helps provide significant cost savings by significantly reducing the number of images in your enterprise Helps enable the implementation of multiple languages on a single PC allowing a user to toggle between languages Windows Vista Enterprise Can Help Reduce The Cost To Maintain And Support Images In Customers’ Organizations MUI helps removes the hassle and cost of multiple images because of language and hardware configurations, simplifying your image management and reducing your support costs

16. Extended Hotfix Support Overview While security updates will be continue, Extended Hotfix will provide you with additional, non-security hotfixes to help ensure that the your legacy OS will continue to function Self-help online support Extended support phase Mainstream support phase Type of support Request to change Product design and features Security updates Other non-security hotfixes Complimentary Support 1 included with License, licensing Program 2, and other no-charge support programs Paid support (including Pay-per-incident Premier and Essential Support Product category applicability    Applies to all products Applies to business and developer software only Applies to all products Available  Not Available Available only with purchase of Extended Hotfix Support Agreement Free access to online content, Such as Knowledge Base Articles, online product Information, and online Support WebCasts

17. Windows Fundamentals For Legacy PCs Extends The Life Of Hardware And Provides A Smooth Migration Path To Windows XP/Windows Vista New! A limited OS exclusively available through SA/EA, WLPC extends the security of XP SP2 to legacy PCs Easy to manage Your IT staff can deploy easily, using either Windows Update, Automatic Update, or Systems Management Server (SMS) Secure environment Features like componentized architecture, lock-down capabilities, and session-specific changes in disposable partitions create a more secure environment for your users Proactive protection Built on the same code base as Windows XP SP2 and has the same high level of security with Windows Firewall, Data Execution Prevention, and Internet Explorer’s Pop-Up Blocker Smooth migration path Desktops are managed in the same way as Windows XP desktops, making the transition to Windows Vista much smoother than having to transition PCs with legacy operating systems directly to Windows Vista Window Fundamentals For Legacy PCs

18. What is corporate error reporting (CER)? An SA exclusive solution that monitors and reports crash and hang errors across all desktops in the enterprise Why is it important? Enables administrators to identify problems before they become a major issue across the enterprise Early identification and quick problem resolution Increases the stability of the environment Lowers the cost of management CER Monitors Your Desktop Environment, Increasing Stability, Reducing Error Resolution Time And Increasing End User Productivity

19. WinPE is powerful replacement for MS-DOS in your deployment, testing, and system recovery processes. WinPE is a minimal Win OS that provides limited services based on the Windows XP Pro and the Server 2003 kernels Reduce deployment hassle by automating the pre-installation of Windows to your servers and workstations by directly automating the hard disk preparation process and allowing boot ups from a variety of media, including networks, USB sticks, and CD-ROM Saves time and effort in troubleshooting with easier system restores by eliminating customized MS-DOS boot disks Windows PE allows you to test and deploy quickly and easily in a familiar Windows environment without the hassle and time associated with MS-DOS Windows Pre-installation Environment Can Help Customers Deploy With Fewer Resources

20. Cash Managers 3 Ways A Software Assurance Or An Enterprise Agreement Can Help Reduce The Customer’s Acquisitions Costs For Windows Client Windows Vista Enterprise can help extend the lifespan of your desktop hardware – reducing the number of PCs you need to replace this year with Windows Fundamentals for Legacy PC’s (WLPC). WLPC allows you to have the benefits of the latest security improvements on your older PCs while improving their performance SA/EA provides you with tools like Virtual PC Express and SAU that can save you time and money by allowing you to run legacy/non-compatible applications SA/EA provides you with Extended Hotfix Support for support for older versions of Win Client beyond the mainstream support cycle, allowing you to support legacy PCs in your enterprise Prolonging the lifespan of older PCs Delay investment in upgrading applications Delay upgrading from Windows 2000

21. TCO Managers 3 Ways A Software Assurance Or An Enterprise Agreement Can Reduce The Customer’s Ongoing Costs For a PC * Source: Gartner Group ** Only available in SA today; will be available as part of Windows Vista Professional in late 2006 An image can cost $100,000 to maintain each year*. MUI, available exclusively with Windows Vista Enterprise, will help you reduce the number of images in your organization by standardizing on one image worldwide Reduce ongoing PC maintenance Windows Vista Enterprise helps you overcome one of the biggest challenges in upgrading by providing the tools to ensure application compatibility. Virtual PC Express and SAU enable you to access applications on other operating systems without having to worry about the cost of rewriting most of your applications Reduce costs for application compatibility With SA, you will get access to the Windows Pre-installation environment today** which helps speed the installation, preparation and troubleshooting of desktop applications, helping you to deploy faster Deploy Windows Vista with fewer resources

22. IT Value Customers A Software Assurance Or An Enterprise Agreement Can Help Improve The Security And Stability Of The Customer’s Environment Windows Client Software Assurance and Enterprise Agreements provide exclusive tools to help ensure a high level of protection for your enterprise Windows® BitLocker™ Drive Encryption provides a more secure method of protecting data on lost of stolen hard-disks Legacy PCs pose a security risk– with WLPC and Virtual PC Express, you can run more securely without significant disruption to your IT State-of the-art IT security Windows Client Software Assurance and Enterprise Agreements provide exclusive tools to help ensure a more stable PC environment for your enterprise The Multilingual User Interface (MUI) allows you to deploy one image across multiple hardware and language configurations, making it easier to manage images and increase stability Cutting edge IT organizations can use Corporate Error Reporting which is the one of the most effective way for IT Administrators to identify how to dramatically improve OS stability with your suite of applications Highest level of desktop stability

23. Business Value Customers An Software Assurance Or An Enterprise Agreement Can Help Increase The Customer’s Business Productivity * Only available in SA today; will be available as part of Windows Vista Professional in late 2006 Windows Vista Enterprise includes tools like MUI, Virtual PC Express and WinPE* that will help speed up the deployment process of Windows Vista by reducing the number of image builds and faster application compatibility validation and resolution Faster, simpler path to deploying Windows Vista Windows Vista Enterprise can help your mobile workers be as protected as possible in the event of a lost or stolen laptop with Bitlocker TM Drive Encryption security that is integrated with Active Directory, making it easier to deploy, manage, and support Protected mobile workforce The Windows Vista Enterprise Edition available through SA extends the productivity enhancements of Windows Vista with exclusive tools like Corporate Error Reporting (CER) that help improve OS images and ensure that your users enjoy maximum uptime and error-free computing Improving end- user productivity

24. New Mid-Market Offerings Target Customer Midmarket Customers who purchased PCs or VL in the past 6 months Opportunity: Increase SA attach to OEM and VL purchases ~14 Mio PCs sold in last 6 months in MM Target Customer Midmarket Customers who want to take advantage of XP SP2’s improved security and management features in preparation for deploying Vista Opportunity: Increase VL penetration, SA attach, and mix shift to VL from OEM licenses 250K Open licenses sold per quarter L & SA Offer SA Attach Offer Customer profile Mid-Market TDMs who desire the newest version of Windows to help reduce their IT costs and improve the productivity of their businesses Primarily TCO, IT Value, or Business Value customers

25. Limited-Time Offer Overview Offer Attach SA to PCs purchased within last 180 days (90-day attach program remains in place) Pitch When you first purchased PCs, MS had not yet publicized the new benefits in SAB 3.0 and so we are running a limited-time offer to give you the opportunity to add SA to your PCs Until Jun 30, 2006, you will have the opportunity to attach SA to your PCs purchased within the last 180 days With SA, you get: The rights to Windows Vista for less than the cost of an upgrade license Exclusive access to SAB 3.0 benefits, including Vista Enterprise (a premium version of Vista for business customers)– you can’t buy Vista Enterprise any other way! Target segment Customers (with 250-500 PCs) who purchased PCs without SA between Oct 1, 2005 and Mar 31, 2006 SA-attach

26. Limited-Time Offer Overview OfferPitch Target segment Purchase U&SA, instead of U, with limited-time 30% discount on U You are thinking about buying just the upgrade to XP? If you add SA, it entitles you to upgrades to XP, Vista Business, and Vista Enterprise at a significant discount! Standardize your OS for more streamlined desktop management, saving money and increasing productivity With SA, you get: The rights to Windows Vista for less than the cost of an upgrade license Exclusive access to SAB 3.0 benefits, including Vista Enterprise (a premium version of Vista for business customers)– you can’t buy Vista Enterprise any other way! Potential U customers who can be effectively up- sold to U&SA DiscountedU&SA

27. Accelerated EA Program Overview Purchase new EA with platform discount Limited time BIF empowerment for deployment– 5% of the Windows Client Deal value can be used as a credit for deployment planning Offer MS telesales will generate leads for partners for customers with 250+ PCs that are up for renewal in their EA or Select agreements Target segment With the platform discount, it means that you get the Win Client EA at a yearly price of only $10-$15/PC EA has several new and exciting benefits, including Vista Enterprise, a premium version of Windows Vista optimized for businesses of all sizes Pitch

28. What This Means To You Emphasize the distinct technology and service benefits of Windows Client Software Assurance by customer type Leverage the new Mid-Market offerings and promotions to accelerate sales

29. Q&A