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Global Operations Readiness

Program and tools overview

Managed Reseller Incentive Program

ObjectivesAt the end of this training, you will be able to:

• Outline the purpose, structure and main features of the Managed Reseller Incentive program

• Relate the eligibility criteria and rates for the program

• Access earnings and claims information

• Summarize how the Manager Reseller Incentives Estimator tool works and its purpose

ContentsManaged Reseller Incentive program—overview

Eligibility and rates

Program structure and components

Earning and claims

Managed Reseller Partner Incentives Estimator

Q&A

Appendix

Managed Reseller Incentive program—overview

Purpose of the incentiveThe Managed Reseller Incentives reward eligible reseller partners for driving revenue via Open licenses, particularly within the vast small and mid-sized business (SMB) market, as well as the public sector market.

Managed Reseller Incentives promote:

• Enhancing customer reach and sales frequency, especially for Cloud via Open offerings

• Growing sales of key strategic product workloads and cloud-based solutions that address critical customer requirements, and improve product attach to customer solutions

• Growth of revenue and profitability, and enhancing the value of partner’s sales and delivery practices

Reward structure and timingsThe program rewards Managed Resellers for selling Microsoft products and services and is refreshed annually.

Rewards are a mix of Rebate (Cash) and Co-op (a Fund against which expenses for eligible marketing activities can be claimed)

Rewards are earned over a 6-month period (semester). Rebates are paid automatically. Co-op related expenses are required to be claimed.

Further details are provided in this training.

FY H1

Incentive

Usage Period

FY H2

O NSAJ

Incentive Earning

Period

D F M JMAJ

FY18 focusIn FY18, the Managed Reseller Incentive focuses predominantly on Open Licensing, with strategic emphasis on Strategic On-Premise Products, Annuity Agreements, and transformation to the Cloud.

As Partners produce outcomes incented within the program, earnings accrue partially as rebates to be paid after the conclusion of each 6-month earning semester and partially as Co-operative marketing funds (Co-op) which can be claimed against expenses for approved activities in the period following the 6-month earning semester.

Incentive structure• The Managed Reseller Incentive consists of 2 structural

components – Global Levers and Local Accelerators.

• There are three global levers built around three distinct product groups: Core, Strategic, and Cloud.

• Rates for the global components are defined on a worldwide basis in alignment with Microsoft’s commercial strategy.

• Rates for local components are defined at the subsidiary level in accordance with local priorities and to address unique market conditions.

• See Earning section later in this slide deck for an example earning scenario across the various components of the incentive.

FY18 changes at a glance• Partners are no longer required to be listed on the Microsoft

Managed List (MPL) for eligibility.

• Cloud rates decreased to 6%

• Strategic product annuity rate decreased to 6%

• Expanded Local Accelerator menu

• Priorities focus on Cloud revenue

Eligibility and rates

Key eligibility criteria

Hold Active MPN

membership

Note

As a partner you must meet the eligibility criteria each year to benefit from the incentive. See next section and program guides for more information on eligibility. Further details are provided in this training.

Meet MPN

Competence

criteria

Meet Performance

criteria

Eligibility

Type

Eligibility

Requirement Program Specific Criteria

Mic

roso

ft P

art

ner

Netw

ork

(MP

N)

En

roll

men

t

Enrollment Status Active MPN ID

Competency

Application Development, Application Integration, Application

Lifecycle Management, Data Analytics, Data Platform, Datacenter,

Cloud Platform, Cloud Productivity, Cloud CRM, Collaboration &

Content, Communications, Customer Relationship Management,

Devices & Deployment, Identity & Access, Intelligent Systems,

Messaging, Small & Midmarket Cloud Solutions, Midmarket Solution

Provider, Project & Portfolio Management, Software Asset

Management, Volume Licensing, Windows & Devices

Membership Level Silver, Gold as of June 1, 2017

Competency StatusActive Earned, Active Pre-Approved, Active Non-Compliant, Active

Inherited as of June 1, 2017

Part

ner

Perf

orm

an

ce

Performance

Thresholds

Partner must have produced >$150K (mature markets) or $75K

(emerging markets) in TTM** Open license revenue + minimum of 1

Cloud via Open sale in TTM**

or

Have 15 or more Cloud Customer adds via Open License TTM**

Partner eligibility and incentive ratesEligibility Incentive rates

Local accelerator options

▪ Renew to Cloud via Open

▪ Cross Cloud Growth

▪ Hybrid Solution Accelerator

▪ Cloud Frequency

▪ Product Specific Accelerator

▪ Cloud via Open Accelerator

▪ Public Sector

▪ Anti-Piracy

▪ Cloud Open Customer Reach

Incentive Rate

Core ProductsAnnuity 1.25%

Non-Annuity .75%

Strategic ProductsAnnuity 6%

Non-Annuity 2%

Cloud via Open 6%

* TTM = Trailing Twelve Months thru May 31, 2017

Revenue and product eligibilityThe Managed Reseller Incentive pays on Open License and Academic revenue sold to customers in all market segments.

See aka.ms/partnerincentives for latest Eligible Product List.

See earnings section in this training for further information on eligible revenue.

Core products

Core Products are categorized as

high market share products like

Windows, Office, and Exchange.

Strategic products

Strategic products are categorized

as those with lower market share

that form the foundation of strategic

customer solutions. These include

products like SharePoint, SQL, and

Skype for Business

Cloud via Open

Cloud via Open products are cloud-

based offerings, including Office

365, Azure via Open, Dynamics 365

Customer Engagement via Open,

and others. Cloud ESD incentives are

paid on the revenue of all non-

managed retailers.

Program structure and components

3. Key Co-op Guidance

2. Earning and Usage Periods

Rebates and Co-op earnings

FY17H2 FY18H1 FY18H2 FY19H1

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Earning Earning 1 Earning 2

Usage Usage 1 Usage 2

Claiming (+45 days after Usage Period) Claiming 1 Claiming 2

1. Be a Managed Partner

Global Program & Local

Accelerators

50% Rebate/50% Co-op

a.

Align Co-op marketing

plans to Microsoft

strategy and program

launches.

b.

Focus activities on

Microsoft products and

offerings.

c.

Carefully balance Co-op

spending between Usage

Categories.

d.

Submit Co-op claims as

soon as activity is finished

and POE is available.

e.

Reference the Partner

Incentive Co-op

Guidebook for eligible

activities and program

details.

Products and accelerators

Core products

• Office

• Office for Mac

• Exchange Server & CAL

• Other MOD

• MOD CAL Suites – Core CAL

• CnE CAL Suites – Core CAL

• Windows Client

• Windows Legalization

• Windows Server Other

• Windows Server Standard

• Windows Server CAL

• Windows Remote Desktop

Strategic products

• BizTalk Server

• Developer Tools

• Dynamics CRM

• MOD CAL Suites – ECAL

• MS Learning and IT Pro

Subscriptions

(IT Academy)

• Project

• SharePoint Server and CAL

• SQL Server Standard and CAL

• SQL Server Premium

• CnE CAL Suites – ECAL

• Visio

• Windows Server Datacenter

• Skype for Business Server & CAL

• Skype for Business Plus CAL

• System Center Client

• System Center Server

• Identity and Access

• Windows MDOP

Cloud via Open

• Azure

• Dynamics 365 Customer

Engagement

• Enterprise Mobility

• Enterprise Mobility E5

• O365 Standalone Office

• O365 E5 Security/Analytics

• O365 Standalone Server

• O365 Suites with Office

• O365 E5 Suites

• O365 Suites without Office

• Biz SaaS

• Project Cloud

• O365 E5 Skype for Business Voice

Global Accelerators

• None currently, refer to Incentive

Guide and Eligible Product for any

updates.

Local Accelerators

For full details regarding available

local accelerators, please refer to the

local accelerator letter issued by your

Regional Operations Center.

Note

For the most current version of products and accelerators see the Managed Reseller Incentive Guide and Eligible Product list on MPN -aka.ms/partnerincentives.

FY18 Co-op funds guidance1. Funds guidance per category

a. Depth Partners

At least 30% towards Demand Gen/Digital Marketing activities to

generate leads for services (cloud) and devices.

60% towards Market Development activities to close leads.

100% Co-op Claim Rate to maximize business impact (ROI).

b. Breadth Partners:

At least 20% towards Demand Gen/Digital Marketing activities to

generate leads for services (cloud) and devices.

$20k to $5K Co-op Resellers: Strong focus on Market Development

activities to close leads.

$5K or less Breadth: Strong focus on Partner Readiness to develop

partner capabilities to promote, transact and deploy services and

devices.

2. Co-op Product Recommendation

a. Depth resellers:

Target at least 30% of overall funds towards Digital Marketing to

generate leads for services (cloud) and devices.

b. Breadth Resellers:

Target at least 20% of overall funds towards Digital Marketing to

generate leads for services (cloud) and devices.

Demand Generation/Digital Marketing Activities

• Partner Website and Search Engine Optimization

• Digital Advertising

• Email and SMS

• Microsoft Syndicated Content

CategoryDepth Partners Breadth Partners

>$20K Co-op $20K-$5K Co-op <$5K Co-op

Partner Readiness 10% 30% 50%

Demand Generation 30% 20% 20%

Market Development 60% 50% 30%

Main Products % Co-op

Windows 10%

Office 365 50%

Azure and CRM Online 40%

ba

3. Co-op for Digital Marketing

Earnings and claims

Earning and usage overview

FY H1

Earning Period

Usage Period

FY H2

O NSAJ

Earning Period

F M JMAD J

Latest claim dates:

For H1 - February 15 & For H2 – August 15

Note

You have a grace period of 45 days after the end of the Usage period to submit a Claim.

Claims have to include invoices and Proof of Execution which are sent to Microsoft for validation.

Payment on the 15th of every month.

1

You earn Rewards on your sales. Rewards are a combination of:

Cash Rebate

Co-op Marketing Funds

2

At the end of each Earning Period, the

Incentive Rewards for that Period are

finalized.

3

Rebate earnings are automatically paid to

your account. Co-op fund earnings are

available to use in the following 6 months

(Usage period).

4

Use your Co-op funds during the Usage period or else you forfeit them.

5

Submit your Claims for used Co-op funds.

6

If Claims are accepted, payment is included in the next payment run (on

the 15th of each month).

Where do I see my earnings and make a claim?There are two incentive platforms used by Partners in the Managed Resellers Incentive program to view their earnings, and make and track claims.

1. The Partner Incentives Experience is used in EMEA.

2. Channel Incentives Platform (CHIP) is used in North America, Latin America and Asia Pacific including Japan and Greater China.

2

1

What is the Partner Incentives ExperienceIt is the platform that enables partners manage their Co-op funds. Some of the functions it offers:

• multi-incentive portal

• view incentive earnings and Co-op claim

• integrated claim and Proof Of Execution (POE) process

• all submitted POE are visible

• view payments

• unique payment descriptors on bank statements

• integrated notifications process

• embedded support

Partner Incentives Experience -capabilities

Skyline

Skyline

Skyline Skyline

Skyline

1

2

Note

This is the Administrator View. Users will not see the Admin tiles or see Enrollment under the Programs tile.

Partner Incentives Experience -capabilities

Skyline

Skyline

Skyline Skyline

Skyline

3 4

Note

This is the Administrator View. Users will not see the Admin tiles or see Enrollment under the Programs tile.

What is CHIP?CHIP stands for Channel Incentive Platform.

Managed Reseller Partners use CHIP to view their incentive earnings, and to submit and track claims against these earnings.

CHIP interworks with a number of other tools – for example, the sales reporting tools - to calculate and report your incentive earnings.

Earnings are updated weekly on CHIP.

Once the tool is initially accessed, users can log-in at any time through https://channelincentives.microsoft.com

CHIP -capabilities

2

1

CHIP -capabilities

3. Export the data to Excel for further off-line analysis

2

Co-op earningsPartners participating in Managed Reseller Incentives will earn a portion of this incentive as Co-op funds. This allows Partners to perform specific marketing, demand generation, and readiness activities in accordance with the Partner Incentives Co-op Guidebook.

The global incentives are split between Rebate and Co-op as per table below:

Incentive Rebate Co-op

Core Products 50% 50%

Strategic Products 50% 50%

Cloud via Open 50% 50%

Local Accelerators 50% 50%

Co-op usage and claim periods• Co-op funds must be claimed during the six-month usage period that follows the six-month earning period.

• Co-op funds not used during the usage period will be forfeited after the end of the period.

• Partners have 45 days after the Co-op claiming deadline to close out any claims with a status of "Pending POE" or "Action Required."

• If any such claims are not closed out, the claim will be moved to a status of "Non-compliant" and payment will not be processed.

FY16H2 FY17H1 FY17H2 FY18H1

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Earning Earning 1 Earning 2

Usage Usage 1 Usage 2

Claiming (+45 days after Usage Period) Claiming 1 Claiming 2

Reminder: key rebate and Co-op schedule dates

Additional documentation Rebate sent to partner bank

account by:

Co-op deposited to partner

CHIP account by:

Co-op Usage Period (Co-op

activities must be

completed by last day of

usage period)

Latest date for submission

of Co-op claims

H1

July 1-December 31

February 15th (45 days after

closure of H1)

February 15th (45 days after

closure of H1)

H2

January 1-June 30

August 15th (45 days after

closure of H2)

H2

January 1-June 30

August 15th (45 days after

closure of H2)

August 15th (45 days after

closure of H2)

H1

July 1- December 31

February 15th (45 days after

closure of H1)

Note

Enter your claims in CHIP as soon as possible in order to have enough lead time to address any issues that may come up with claims.

Payment scheduleManaged Resllers receive payment of their incentive earnings as rebate and Co-op funds. Payment will be disbursed to the Partner along the following schedule:

Incentive How Often Payment

Rebate Semesterly 45 days after

calculated

Co-op Monthly, upon claim approval 45 days after monthly

calculation

Minimum threshold:

If Co-op earnings are below the threshold of $1,500 USD for the earning period, the partner will receive the incentive entirely as rebate

For earnings below $200 USD, no payment will be issued for the earning period

See next slide for additional payment policies

Payment reporting Detailed information on Partner earnings, claims, and payments related to the Managed Reseller Incentive are available within the CHIP/PIexp (depending on region) platform for eligible Partners.

Earnings data will start populating in the incentives platform in the first quarter of the semester. Payment reporting is available perpetually in accordance with the payment cycles for both co-op and rebate funds.

During the earning period, the Managed Reseller’s sales performance is posted to the Partner’s interim earnings statement within CHIP/PIexp . The earnings are refreshed weekly on Mondays.

Managed Reseller Partner Incentives Estimator tool

FY18 Managed Reseller Partner Incentives Estimator tool (1 of 2)The Managed Reseller Partner Incentives Estimator tool enables partners who are eligible for the Managed Reseller incentive to estimate incentive earnings based on sales forecasts and scenarios.

This tool is intended for illustrative and planning purposes only and is not a guarantee of payment. Results are developed based on high-level program models and rates and may vary from the actual incentive calculation developed by Microsoft at the end of each fiscal half earnings period.

Details for specific incentive rates and available accelerators applied in each Microsoft subsidiary are communicated to each eligible partner at the beginning of each fiscal semester.

Estimator Tool

2

1

Estimator Tool

3

4

Q&A

Q&A (1 of 2)Q: Do you notify partners on incentives changes via email?

A: Yes. Program notifications, updates, etc. are provided via email in the form of an Operations Communication or attached letter outlining the changes.

Q: How long does it take from order date to incentives being paid?

A: Managed Reseller operates in a semesterly cycle (H1: July – Dec / H2: Jan - Jun), therefore incentives for eligible transactions processed in one semester are calculated paid as rebate within 45 days following the close of the semester, and Co-op funds are available for claiming following a similar timeline. Payments for Co-op are made within 45 days after the claim has been completed and approved by Microsoft.

Q: Is there available a tool or excel based incentives calculator that we could use in order to calculate the estimated incentives prior to order placements?

A: Yes, the Managed Reseller Partner Incentive estimator tool enables partners who are eligible for the Managed Reseller incentive to estimate incentive earnings based on sales forecasts and scenarios. This tool is intended for illustrative and planning purposes only and is not a guarantee of payment. The tool is located on the Managed Reseller page via aka.ms/partnerincentives portal.

Q&A (1 of 2)Q: If our company has enrolled in Managed Reseller Incentive program. Do all our branches also enrol automatically or do they need to do this program registration process individually?

A: Program eligibility is measured at a Microsoft Subsidiary level, therefore all braches within the one subsidiary location will be enrolled as one entity. Partners who operate within more than one subsidiary need to satisfy each of the criteria within each of the subsidiaries independently in order to become eligible to earn Managed Reseller Incentives within each. A full list of Microsoft subsidiaries is provided in Appendix A of the Program Implementation guide which is published in the aka.ms/partnerincentives portal.

Q: Can we consolidate all our incentives to only one MPN ID without changing the MPN ID in our customer’s consoles? (we have twoMPN ID, one local and other global, but one location only.

A: Yes, we can consolidate all incentives to the one MPN ID, with that MPN ID being the HQ Location instead of the VOrg. Please note that Manged Reseller Program eligibility is measured at a Microsoft Subsidiary level, therefore all branches within the one subsidiary location cam be enrolled as one entity. Partners who operate within more than one subsidiary need to satisfy each of the criteria within each of the subsidiaries independently in order to become eligible to earn Managed Reseller Incentives within each. A full list of Microsoft subsidiaries is provided in Appendix A of the Program Implementation guide which is published in the aka.ms/partnerincentives portal.

Appendix

Payment profile related terminologyTerm Meaning

Partner user Tracks earnings, enters Co-op claims, tracks claims and payments related to the program.

Partner adminAll of the above plus performs company registration including entry of payment and tax details. Handles all user management (adding, editing and

deleting additional partner admins and partner users).

Rebate Monetary reward from the selling of Microsoft products and solutions.

Co-opMarketing funds designed to help qualified partners grow their businesses. Provides reimbursement for approved Demand Generation, Marketing

Development, and Partner Readiness activities. Full details on the program Co-op Guidebook available on MPN.

Fiscal year

The Microsoft Fiscal Year (FY) extends from July 1st to June 30th of the following calendar year. The Managed Reseller Incentive program aligns with the

Microsoft fiscal year. The 12 months of the incentive program is divided into H1 (the first 6 months: June 1st to Dec 31st) and H2 (the second 6

months: Jan 1st to June 30th)

Earning period The period in which you earn Incentives (Rebate and Co-op).

Usage period

The period immediately following the earning period. During the usage period partners conduct Co-op activities and submit claims for eligible

expenses related to these activities. All Co-op activities must be completed during the usage period, though partners have 45 days grace after the end

of the usage period to submit claims.

Proof of Execution

(POE)Evidence that a Co-op activity was executed is required to claim reimbursement of expense associated with the activity.

Earning Period

Usage Period

Earning Period

Program terminologyAcronym / Abbreviation Full Definition

MPN Microsoft Partner Network

PI Partner Incentive

V-Org MPN ID Virtual Organization MPN ID.

HQ or (Primary) Location MPN ID MPN ID of headquarters or (Primary) Location for a company.

Bank Identifiers Associated with bank accounts, such as IBAN or SWIFT/BIC

IBAN Internationally agreed system of identifying bank accounts across countries to facilitate the processing of cross country

transactions

SWIFT / BIC A unique identification code for a financial / banking institution.

The acronyms:

• SWIFT stands for the Society for Worldwide Interbank Financial Telecommunication

• BIC stands for Business Identifier Code

Tax ID Type This is the Tax type that is applicable for your Company, for example, VAT. This always refers to a Company.

Tax ID Tax ID corresponds to the Tax ID Type you selected. The ID must match the required format for that country/region.

Thank youFor completing this course on Managed Reseller Incentive Program –Program and tools overview