CSP Direct Bill Partner FY 20 Q 2

CSP Direct Bill Partner FY 20 Q 2 Partner Incentives Update Programs Enterprise SMB SPLA Local Campaigns M 365 OSA Global Campaigns CSA Azure D 365 Surface Hosting OSU Commercial Distributor CSP

CSP Direct Bill Partner Incentive Purpose Reward and support CSP Direct Bill Partners for driving the activation and enablement of customers with Microsoft-based Online Services. Need to know Effective July 1, 2019 through June 30, 2020 Eligibility § Onboard to incentives tool § Active MPN membership § Attain defined MPN competency at Gold or Silver level § Valid Cloud Reseller Agreement Incentive rates Q 1 Incentive Rate Core Incentive (Rebate only) – O 365 6% § Co-op component will be introduced in H 2 Core Incentive (Rebate only) – M 365, D 365, Azure 8% § Core program and strategic product accelerator rates CSP Customer Add Accelerator (continued from FY 19) § Azure incentives for new Commerce Platform transactions Global Strategic Product Accelerator begin in Q 2 – delayed from 1 st October planned 1 st November § New Customer Add accelerators effective 1 st October § Global incentive introduced for sales of eligible 3 rd party offers on the marketplace 1 2 2 3 4 Unique accelerators for the 3 Microsoft Clouds (Azure, Dynamics, Modern Workplace), each with defined earning opportunity, launch Oct. 1 Global Strategic Product Accelerator includes M 365 E 3, M 365 E 5, M 365 Business, O 365 Biz Premium, the 2 E 5 Mini Suites, D 365 Business Central 2% Global Incentive for Eligible 3 rd Party Offers 10% Global PSTN Calling and Conferencing Accelerator 20% Software in CSP – Subscription 3 Core – 1. 25%, Strategic 6% Q 2 – Q 4 Incentive 1 2% Rate Core Incentive – Azure billed revenue on existing platform; O 365, M 365 4% Core Incentive – Azure billed revenue derived from new commerce platform 4; D 365 6% CSP Customer Add Accelerators for 3 Clouds Global Strategic Product Accelerator 2 Varies 5% Global Incentive for Eligible 3 rd Party Offers 10% Core = Windows Server Std | Strategic = SQL Server Global PSTN Calling and Conferencing Accelerator 20% Incentives for Azure billed on the commerce platform will be paid in the Modern Commerce Experience Partner Led incentive tool. Software in CSP – Subscription 3 Incentive guide and other resources available on MPN at aka. ms/partnerincentives Core – 1. 25%, Strategic 6% Azure Reserved Instance (RI) Incentive Rate Azure RI (Paid on consumed Azure RI revenue) 10%

Microsoft Commerce Incentives - Azure Partner-led Direct Bill partner Effective Nov. 1, 2019 through Sep. 30, 2020 Incentive rates Purpose Reward and support partners for driving the activation and enablement of customers with Microsoft Azure Services. Incentive Direct Partner Rates Core Incentive – Azure billed revenue derived from new commerce platform 4% § Enroll through Partner Center Early Adoption incentive* 2% § Valid Cloud Reseller or Distributor Agreement (as CSP Customer Add Accelerators for Azure Eligibility § Active MPN membership applicable) § Microsoft Authorization – authorized as a CSP Indirect Provider as applicable * Early Adoption incentive to reward partners for migrating customers from CSP legacy platform to the new commerce platform Need to know § Local accelerators may be available § Global incentive introduced for sales of eligible up to $4, 000 3 rd party offers on the marketplace § Incentive guide and other resources available on MPN at aka. ms/partnerincentives Azure Reserved Instance (RI) Incentive Direct Partner Rates Azure RI (paid on consumed Azure RI revenue) 10%

CSP Customer Acquisition Accelerators for 3 Clouds Unique new customer add accelerators to drive results for each Microsoft Cloud - Launching October 1, 2019 Intelligent Cloud Business Applications Modern Workplace Reward for Azure new customer sales and growth Reward for D 365 new customer sales and growth Reward for O 365/M 365 new customer sales and growth Two earning thresholds with fixed payout amounts • New customer = customer TPID which achieves, for the first time in a month, $1, 000 USD or more in billed revenue Threshold (monthly billed revenue) One-time Earning $1, 000 USD $5, 000 USD $3, 500 USD Note: For new customer TPIDs with initial transactions greater than $5, 000 USD of revenue in a month, the partner will earn a one-time incentive of $4, 000 USD Two-part accelerator: 1. Achieving new customer eligibility 2. Continued growth of that new customer Threshold (monthly billed revenue) New Customer TPID achieves $1, 000 USD Growth of New Customer* Customer TPID achieves growth over the fiscal year *Launches January 1, 2020 Earnings 20% of Annual Contract Value (ACV) 20% of ACV on growth portion of monthly billing above previous high revenue watermark Cap accelerator at $100, 000 USD per customer NOTE – Customer must be net new to Microsoft (measured at the TPID level) to qualify for these accelerators New customer = customer TPID that reaches, for the first time in the previous 12 months, $250 USD in monthly revenue (or $3, 000 USD for annual subscriptions) Threshold (monthly billed revenue) $250 USD Monthly Earning 5% of monthly billed revenue for 12 months (where revenue exceeds the threshold) Note: Includes additional seat adds for first 12 months

Support Partner Incentives – Support Path All Programs Excluding CSA Support including self-help and support tickets can be accessed through the Microsoft Partner Network on https: //partner. microsoft. com Logon Required. Under the “Support” tab, select “Contact Support. ” When the portal opens, select the “Partner Incentives” category. You may then choose your topic and related issue CSA (Certified Software Advisor in Dynamics) For operational support regarding channel incentives processes and CSA Incentive payments, please contact your CSA Support Team by navigating to Partner. Source >> Pricing & Ordering >> New Operations Request. https: //mbs 2. microsoft. com/support/operationsincidents. aspx? mode=create SUBMIT AN ESCALATION (All Programs) Where a standard query ticket has already been raised (per the processes above) and the case is out of SLA or has been closed but solution is not satisfactory, please contact eocciesc@microsoft. com