CSP Indirect Provider FY 20 Q 3 Partner

CSP Indirect Provider FY 20 Q 3 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 Indirect Provider Incentive 1 Purpose Effective July 1, 2019 through June 30, 2020 2 Eligibility Reward CSP Indirect Providers for supporting CSP Indirect Resellers and developing strong practices around strategic solutions. 3 Need to know § Microsoft Authorization – authorized § Active MPN membership as a CSP Indirect Provider § Valid Cloud Distributor Agreement 4 Incentive rates Q 1 Incentive Rates Rate Core (Rebate/Co-op) – O 365 § Strategic products accelerator offered § Core program and strategic product accelerator rates will adjust in Q 2 § Azure incentives for new Commerce Platform transactions begin in Q 2 (1 st November) § Global incentive introduced for sales of eligible 3 rd party offers on the marketplace 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 Core = Windows Server | Strategic = SQL Server 8% Core (Rebate/Co-op) – M 365, D 365, Azure Strategic Product Accelerator (Rebate/Co-op) 10% 1 Global Incentive for Eligible 3 rd Party Offers 10% Software in CSP (Subscription) 2 Core – 2. 5% / Strategic – 6% Q 2 – Q 4 Incentive Rates Rate Core (Rebate/Co-op) – Azure billed revenue on existing platform* 4% Core (Rebate/Co-op) – O 365/M 365 5% Core (Rebate/Co-op) – D 365 6% Strategic Product Accelerator (Rebate/Co-op) 1 Global Incentive for Eligible 3 rd Party Offers • • • 3 rd All global incentives are split 60/40 into rebate and co-op with the exception of Party Offers incentive Rebate and co-op are both paid monthly Incentive guide and other resources available on MPN at aka. ms/partnerincentives 2% Software in CSP (Subscription) 2 5% 10% Core – 2. 5% / Strategic – 6% *NOTE: Azure through existing platform will receive an incremental 2% from November 2019 – February 2020 Azure Reserved Instance (RI) Incentive Azure RI (Paid on consumed Azure RI revenue) Rate 5%

Microsoft Commerce Incentives - Azure Partner-led Indirect Provider Purpose Reward and support Partners for driving the activation and enablement of customers with Microsoft Azure Services. Eligibility § Active MPN membership § Enroll through Partner Center § Valid Cloud Reseller or Distributor Agreement (as applicable) § Microsoft Authorization – authorized as a CSP Indirect Provider as applicable Need to know § Global incentive introduced for sales of eligible 3 rd party offers on the marketplace § Incentive guide and other resources available on MPN at aka. ms/partnerincentives Effective Nov. 1, 2019 through Sep. 30, 2020 Incentive rates Incentive Indirect Provider Rates Core Incentive – Azure billed revenue derived from new commerce platform 4% Early Adoption incentive* 2% *Early Adoption incentive to reward partners for migrating customers from CSP legacy platform to the new commerce platform Azure Reserved Instance (RI) Incentive Azure RI (paid on consumed Azure RI revenue) Indirect Provider Rates 5%

CSP Indirect Reseller Incentive 1 Purpose Reward and support CSP Indirect Resellers for driving the activation and enablement of customers with Microsoft based Online Services. 3 Need to know § Co-op component now introduced effective 1 st January 2020 § Azure incentives for new Commerce Platform transactions began in Q 2 § New Customer Add accelerators began in Q 2 however: • Azure Customer Adds only implemented in late December • D 365 and M 365 yet to be implemented in the systems • Impact is that during Q 2 there will have been no reported earnings and associated payments but when they are applied they will retrospectively apply to customer adds post 1 st October 1 2 3 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 Core = Windows Server Std | Strategic = SQL Server Incentive guide and other resources available on MPN at aka. ms/partnerincentives Effective July 1, 2019 through June 30, 2020 2 Eligibility § Active MPN membership § Attain defined MPN competency at Gold or Silver level § Onboard to the CSP incentive tool 4 Incentive rates Q 1 Incentive Rate Core Incentive (Rebate only) – O 365 6% Core Incentive (Rebate only) – M 365, D 365, Azure 8% CSP Customer Add Accelerator (continued from FY 19) Global Strategic Product Accelerator 1 2 Global PSTN Calling and Conferencing Accelerator Software in CSP – Subscription 3 Q 2 – Q 4 Incentive 2% 2% 20% Core – 1. 25%, Strategic 6% Rate Core Incentive – Azure billed revenue on existing platform; O 365, M 365 (rebate/co-op) 4% Core Incentive – D 365 (rebate/co-op) 6% CSP Customer Add Accelerators for 3 Clouds (rebate/co-op) 1 Global Strategic Product Accelerator 2 (rebate/co-op) Global PSTN Calling and Conferencing Accelerator (rebate/co-op) Software in CSP – Subscription 3 (rebate only) Varies 5% 20% Core – 1. 25%, Strategic 6% Azure Reserved Instance (RI) Incentive Rate Azure RI (Paid on consumed Azure RI revenue) (rebate/co-op) 10%

Microsoft Commerce Incentives - Azure Partner-led Indirect Reseller Purpose Reward and support Partners for driving the activation and enablement of customers with Microsoft Azure Services. Eligibility § Active MPN membership Effective Nov. 1, 2019 through Sep. 30, 2020 Incentive rates Incentive Core Incentive – Azure billed revenue derived from new commerce platform CSP Customer Add Accelerators for Azure Indirect Reseller Rates 4% up to $4, 000 § Enroll through Partner Center Need to know § Incentive guide and other resources available on MPN at aka. ms/partnerincentives Azure Reserved Instance (RI) Incentive Azure RI (Paid on consumed Azure RI revenue) Indirect Reseller Rates 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 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 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 (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

Co-op Objective

Co-op eligible activities Definition Demand Generation Market Development Partner Readiness Qualifying activities Traditional advertising with broad reach that furthers the marketing and promotion of Microsoft offerings. Results and audience size are measurable. • Print advertising • Digital advertising • Direct mail/email/mobile SMS • Partner website and SEO Marketing activities designed for a specific customer audience that support the sale of Microsoftware licenses. • Telemarketing • • Customer seminars and • bootcamps • Tradeshows and expositions • • • Customer offers • GTM Services Expenses related to Microsoft training, technical certification, and program fees for internal partner personnel that promote the development of Microsoft technology expertise. • MPN participation conferences • Microsoft exams and tuition • Product seeding and demo units • Internal training and floor days • Microsoft hosted • Microsoft syndicated content • Multi-touch digital campaign • Social media marketing Internal incentives and SPIFFs On-site champs Proof of concept Employee purchase web set -up for customers

Co-op earning and usage periods Co-op programs run on a 6 -month program period. Accrued funds are calculated based on eligible revenue from previous fiscal half and are calculated per the rates and terms of the program agreement. Earn Per program calculation against eligible revenue Rebate + Co-op H 1 Program Period H 2 Program Period (1 Jul – 31 Dec) JUL AUG SEP OCT Q 1 NOV (1 Jan – 30 Jun) DEC Q 2 JAN FEB MAR Q 3 APR MAY JUN Q 4 August 15 February 15 Funds Available = Rebate Payment and Co -op available for previous Fiscal Year’s H 2 earnings Funds Available = Rebate Payment and Co -op available for previous Fiscal Half earnings Extends to next fiscal year H 1 program period Partner is eligible to earn rebates and co-op funds through sales of eligible licenses and products during the earning period (6 month) When partner meets all requirements, rebate and co-op funds are then awarded for payment and usage. Rebates are paid automatically, co-op funds are paid against eligible activities Partner claims earned co-op funds after an eligible market development, demand generation, or readiness activity is performed during the 6 -month usage period

Impacts of Association (as of 1 st January 2020) Association Method Does it help towards competency? Does it add Incentives? And if so what programs/licenses do they come under? Licensing Agreement Solution Area/s PAL (Manual) How to attach PAL No Yes MCI Field led MCA Intelligent Cloud DPOR (Manual) How to attach DPOR Yes Azure EA (SCE) and MOSA Intelligent Cloud CPOR (Manual) How to claim Via CPOR Yes OSA, OSU-Dyn OSU MW OSA & OSU-Dyn EA Only OSU MW EA & CSP Modern Workplace & Business Applications CSP (Automatic) Yes CSP Direct / Indirect Reseller / MCI CSP Intelligent Cloud, Modern Workplace & Business Applications

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 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

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