INCENTIVES UPDATE David Kinch Channel Incentives Manager Microsoft

INCENTIVES UPDATE David Kinch Channel Incentives Manager Microsoft Corporation

Historical Perspective 1975 1990 2007

Microsoft Incentives Strategy Software Asset Management En an l P ab Retain Partner Marketing Customers ll v Se r Technical Support Selling Solutions Se i c e s Desktop Deployment Planning Services and Accelerate le Create Demand Re-selling Channel Activation Proof of Concepts and Pilots

What’s New by Incentive Type Enterprise Incentives Solutions Incentives Online Services Incentives SMB Program Incentives

The Opportunity for Partners Budget Grows with Revenue Corporate Accounts Major Accounts Top-Line Growth Selling -through Lync, Driving Online Services Providing customers value. Drive forsolutions Operational Efficiency Growing from 40% EAwith Penetration funding of Marketing Activities Application Platform, Growth andin Deployment added Software and quality serving customer Management Asset Management Activities licensing needsand Virtualization, and Windows 7 SAM Services Online Services Solutions Small and Medium Business

Solution Incentives INCREASED NEW RATES Management & Virtualization Windows 7 Suites 30% Windows 7 Enterprise + MDOP Virtualization 20% Management 5% Identity and Security 5% Example: ECI GLOBAL NEW! App Plat/SQL Lync 10% Enterprise 20% Windows 7 7% Standard 10% MDOP 3% Rates after Oct 1, 2011

Application Platform / SQL Solution Incentives Earn Solution Incentives Eligible Gold Competencies Application Platform / SQL EXAMPLE Year 1 Revenue Incentives SQL Premium $50, 000 $10, 000 SQL Standard $50, 000 $5, 000 Total $15, 000

Lync Solution Incentives Earn Solution Incentives Lync Standard (Standard Server Standalone Standard CAL) Eligible Gold or Silver Competencies Lync EXAMPLE Year 1 Revenue Incentives Lync Enterprise $50, 000 $10, 000 Lync Standard $50, 000 $5, 000 Total $15, 000

Management and Virtualization Solution Incentives Earn Solution Incentives Management and Virtualization EXAMPLE Eligible Gold Competencies First Yr Revenue Incentives Enrollment for Core Infrastructure (ECI) $50, 000 $15, 000 Forefront $30, 000 $1, 500 $80, 000 $16, 500 Total

Windows 7 Solution Incentives Earn Solution Incentives Windows 7 $5/ Desktop through Oct 31, 2011 $3/ Desktop through Oct 31, 2011 EXAMPLE after October 31, 2011 Windows 7 Enterprise with MDOP Qty $50, 000 Total Eligible Gold Competencies $5, 000 EXAMPLE before Nov 1, 2011 Qty Windows 7 Enterprise with MDOP 1, 000 desktops $5/ Desktop Total Incentives $5, 000

Online Services Incentives Online Advisor EA Deployment of Online Services Incentives Windows Azure Incentives Windows Intune and Office 365 Year 1 Windows Intune Deployment (New, Add-On) on New WC EA 50% Windows Azure Windows Intune Deployment (New, Add-On) on Existing WC EA 12% Office 365 Deployment 12% All Years 12% 6% 25%

Online Services Advisor Promote and Selling Activities ONLINE SERVICES ADVISOR Portfolio Full Year Value Office 365, Windows Intune Billed Revenue for Year 1 $40, 000 $4, 800 All Billed Revenue ($40 K Year 1, $20 K Year 2+) $60, 000 $3, 600 Total $100, 000 $8, 400 Incentives

EA Deployment for Online Services Deploy Online Services DEPLOYMENT 500 seat customer With Net New WC EA Price List, Full Year One Value Incentives Deploy Windows Intune Add-On $24, 000 $12, 000 Deploy Office 365 E 1 $60, 000 $7, 200 $84, 000 $19, 200 with net new WC EA With existing WC EA Total

Windows Azure Incentives Grow your Azure Business EXAMPLE Year 1 Revenue * Incentives Windows Azure $5, 000 $1, 250 Total $9, 000 $2, 250

Microsoft Dynamics Lead Referral Program Opportunity for all members of the Microsoft Partner Network to earn 5% up to $20, 000 by submitting Dynamics leads to Microsoft Next Steps • Become a member of the Microsoft Partner Network • Agree to the terms of the Microsoft Dynamics lead Referral Agreement • Submit leads to the Microsoft Dynamics Referral Program • For more information talk to your Partner Account Manager or any of the Dynamics team at APC

Small & Medium Bunsinesss Incentives Managed Resellers Global Incentives Open VL Growth & Core Incubatio n 70% ary sidi Sub ction Sele Globally Defined Accelerators Selected At Area Level Partner Readiness Market Development Demand Generation OVS Growth Anti-Piracy Renewals Public Sector 30% • Double incentives for Annuity • Up to 3% for Core • Up to 6% for Growth • Up to 15% for Incubation • Up to 3% for OVS Growth • Up to 5% for Renewals Up to 23% for some products

Potential Scenario 12, 000 10, 000 24, 000 21, 000 9, 000 2, 000 3, 000 0 Services engagement deploying SQL Enterprise to a SMB organisation (4 weeks, 3 resources, $1, 200 avg daily rate, 20% profit) $14, 400 Potential Extra profit • MPN Practise Development • Market Development Fund • Proof of Concept • App Plat Solution Incentive • MPN Technical Support • Managed Reseller Incentive Total $10, 000+ $2, 000+ $9, 000+ $3, 000+ $24, 000 Subject to program terms and conditions

The Opportunity for Partners Budget Grows with Revenue Corporate Accounts Major Accounts Grow Open revenue and Registration MPN Gold Competencies & build Driving Online Services Earn MPN SAM Gold Operational CA Opportunity Efficiency / EA Deal develop marketing plans to take solution practices Growth and Deployment Competency operational excellence advantage of Co-Op funds Services opportunities Grow SAM prospects and business SAM Services Online Services Solutions Small and Medium Business

Thank You! Questions: ausincentives@microsoft. com

INCENTIVES UPDATE David Kinch Channel Incentives Manager Microsoft Corporation

Historical Perspective Distribution Volume Licensing Online Services & Solutions Windows / Office / Servers OEM / FPP Software Assurance Enterprise Agreements / Select / Open Solutions / Online Services No direct sales Retail partners 1975 Sales force enabled New Licensing Offerings Multiple go-to-market models Transactional partners Partners grow solutions and online 1990 s, 2000 s 2007+

Microsoft Incentives Strategy Software Asset Management En an l P ab Retain Partner Marketing Customers ll v Se r Technical Support Selling Solutions Se i c e s Desktop Deployment Planning Services and Accelerate le Create Demand Re-selling Channel Activation Proof of Concepts and Pilots

What’s New by Incentive Type Enterprise Incentives Solutions Incentives Online Services Incentives SMB Program Incentives

The Opportunity for Partners Budget Grows with Revenue 1% EA Penetration = $600 K in additional incentives Corporate Accounts Growing from 40% EA Penetration Major Accounts Drive for Operational Efficiency and quality in serving customer licensing needs SAM Services Funding SAM Providing customers with value-added Software engagements Asset Management Activities for customers 1% Market Share = Deployment $30 K incentives Online Services Driving Online Services Growth and Solutions Selling solutions - Lync, Application Platform, Paying up Management and Virtualization, and Windowsto 730% Small and Medium Business Top-Line Growth through funding of Marketing Activities

Solution Incentives INCREASED NEW RATES Management & Virtualization Windows 7 Suites 30% Windows 7 Enterprise + MDOP Virtualization 20% Management 5% Identity and Security 5% Example: ECI GLOBAL NEW! App Plat/SQL Lync 10% Enterprise 20% Windows 7 7% Standard 10% MDOP 3% Rates after Oct 1, 2011

Application Platform / SQL Solution Incentives Earn Solution Incentives Eligible Gold Competencies Application Platform / SQL EXAMPLE Year 1 Revenue Incentives SQL Premium $50, 000 $10, 000 SQL Standard $50, 000 $5, 000 Total $15, 000

Lync Solution Incentives Earn Solution Incentives Lync Standard (Standard Server Standalone Standard CAL) Eligible Gold or Silver Competencies Lync EXAMPLE Year 1 Revenue Incentives Lync Enterprise $50, 000 $10, 000 Lync Standard $50, 000 $5, 000 Total $15, 000

Management and Virtualization Solution Incentives Earn Solution Incentives Management and Virtualization EXAMPLE Eligible Gold Competencies First Yr Revenue Incentives Enrollment for Core Infrastructure (ECI) $50, 000 $15, 000 Forefront $30, 000 $1, 500 $80, 000 $16, 500 Total

Windows 7 Solution Incentives Earn Solution Incentives Windows 7 $5/ Desktop through Oct 31, 2011 $3/ Desktop through Oct 31, 2011 EXAMPLE after October 31, 2011 Windows 7 Enterprise with MDOP Qty $50, 000 Total Eligible Gold Competencies $5, 000 EXAMPLE before Nov 1, 2011 Qty Windows 7 Enterprise with MDOP 1, 000 desktops $5/ Desktop Total Incentives $5, 000

Online Services Incentives Online Advisor EA Deployment of Online Services Incentives Windows Azure Incentives Windows Intune and Office 365 Year 1 Windows Intune Deployment (New, Add-On) on New WC EA 50% Windows Azure Windows Intune Deployment (New, Add-On) on Existing WC EA 12% Office 365 Deployment 12% All Years 12% 6% 25%

Online Services Advisor Promote and Selling Activities ONLINE SERVICES ADVISOR Portfolio Full Year Value Office 365, Windows Intune Billed Revenue for Year 1 $40, 000 $4, 800 All Billed Revenue ($40 K Year 1, $20 K Year 2+) $60, 000 $3, 600 Total $100, 000 $8, 400 Incentives

EA Deployment for Online Services Deploy Online Services DEPLOYMENT 500 seat customer With Net New WC EA Price List, Full Year One Value Incentives Deploy Windows Intune Add-On $24, 000 $12, 000 Deploy Office 365 E 1 $60, 000 $7, 200 $84, 000 $19, 200 with net new WC EA With existing WC EA Total

Windows Azure Incentives Grow your Azure Business EXAMPLE Year 1 Revenue * Incentives Windows Azure $5, 000 $1, 250 Total $9, 000 $2, 250

Microsoft Dynamics Lead Referral Program Opportunity for all members of the Microsoft Partner Network to earn 5% up to $20, 000 by submitting Dynamics leads to Microsoft Next Steps • Become a member of the Microsoft Partner Network • Agree to the terms of the Microsoft Dynamics lead Referral Agreement • Submit leads to the Microsoft Dynamics Referral Program • For more information talk to your Partner Account Manager or any of the Dynamics team at APC

Small & Medium Business's Incentives Managed Resellers Global Incentives Open VL Growth & Core Incubatio n 70% OVS Growth ary sidi Sub ction Sele Globally Defined Accelerators Selected At Area Level Anti-Piracy Renewals Public Sector 30% Market Opportunity Products Annuity Non-annuity Core High Market Share Stable Growth Office, Windows Client, Windows server 1. 25% . 75% Growth Medium Market Share Fast Growth Exchange, Sharepoint, SQL, MDOP, Project, Visio, Dev Tools, Biztalk 6% 3% Incubation Low Market Share Fast Growth OCS, Lync, Security & Identity, Server Management 15% 7. 5% Renewal rates All 5% 5% OVS Growth Open Value Growth All 2% 2% Acellerator

The Opportunity for Partners Budget Grows with Revenue Corporate Accounts CA Opportunity / EA Deal Registration / T-36 / operational excellence Major Accounts Operational Efficiency SAM Services Earn MPN SAM Gold Competency Grow SAM prospects and business Online Services Sell & deploy Office 365, Intune, and CRM Online on the EA Solutions MPN Gold Competencies & build solution practices Services opportunities Small and Medium Business Grow Open revenue and develop marketing plans to take advantage of Co-Op funds

Thank You! Questions: ausincentives@microsoft. com