SAM OpportunitiesSAM OpportunitiesSuzanne CaldwellSuzanne CaldwellLicense Compliance ManagerLicense Compliance Manager

Agenda

•Why SAM is good for Business

•Microsoft’s FY06 SAM Strategy

•Updated SAM Tools

•Mislicensing Strategy

•WGA

•Q&A

Why SAM is good for business

•Piracy Rate in Australia is 32% - Revenue Loss $409M USD

•SAM Revenue has grown by 112% YOY in Mid Market•Microsoft conducted 700 SAM engagements in Mid Market

last year and will engage with another 700 in FY06•Microsoft conducted numerous ACE reviews and SAM

engagements in Enterprise in FY05 and will conduct in FY07•SAM Seminar Results – 23 held across Australia/269

attendees•95% of SAM Revenue is derived through Volume License

Sales•Top 3 SAM delivered products:

Office Family 39%

Win Server & Win CAL’s 21%

Exchange Server & Exchange Server CAL’s 11%

Research Results

•Microsoft Research* shows:− Only 47% have SAM policies for internal staff− Only 45% have reviewed the way they purchase,

transfer or retire licenses

•BSAA Research** Shows− 65% of companies and organisations do not know

whether employees have downloaded or made illegal copies of software

− 46% do not have clear policies on Internet downloading and software use

− 66% of businesses surveyed do not conduct software audits or check what software workers are using

− 41% admitted that they do not know if they are correctly licensed for software used in their organisation.  Source:

*Leading Edge MB W8 FY05**BSAA Press Release July 05

FY06 SAM Strategy• SAM Telesales

– Customer contact via dedicated SAM Telesales heads with strong licensing skills

– Right person, right model, right message• SAM Reviews

– Direct customer engagement – License shortfall revenue– Help customers gain control of their software assets– Drive SAM Services Engagement through Partners

• SAM Ecosystem Development – Continue SAM Seminars– Promote long-term compliance through SAM

standards – Partner development through Competency– Press/Analyst relations (AR)

Why SAM is good for business

Andy Booth, Head of IT, Andy Booth, Head of IT, United Business MediaUnited Business Media

““SAM is easier to sell to the board than a threatSAM is easier to sell to the board than a threat. Any . Any organisation that adopts SAM will measure, prove and organisation that adopts SAM will measure, prove and demonstrate a significant ROI on their software asset basedemonstrate a significant ROI on their software asset base””

GartnerGartner Published, Jan 18, Published, Jan 18, 20052005

““Microsoft is changing for the betterMicrosoft is changing for the better. It has seized on Software . It has seized on Software Asset Management (SAM) as Asset Management (SAM) as thethe solution to relationship difficulties solution to relationship difficulties and its need to ensure that buyers pay the correct amounts for using and its need to ensure that buyers pay the correct amounts for using its software. This is a radical change for Microsoft . . .”its software. This is a radical change for Microsoft . . .”

Bas

ic S

AM

SAM Needs Hierarchy

Strategic Needs•Asset optimization•Maximizing IT ROI

Secondary Needs•Protecting data from viruses

•Ensuring security of information•Proactively managing/forecasting costs

•Ensuring software standardization •Unlocking benefits of SA

Primary Needs•Purchasing software licenses

•Managing and installing licenses and upgrades•Responding to employee requests for new software

•Tracking inventory

Pro

Act

ive

SA

MS

trat

egic

SA

M

SAM Solution Lifecycle

• Maximize Software ROI• Avoid compliancy issues• Have centralized view of

contracts and assets• Better control over

processes

Obje

ctiveCrit

ical S

uccess

Facto

rs: Le

ssons

Learn

ed

Approach

• Service solution asopposed to tool or internal development

• Enterprise wide SAM solution • Centralized management of

assets and procurement• Establish standards

Res

ults

Customer• “25% IT savings” Gartner• Full overview of installed base• Fully auditable• Closer relationship with Vendors• Better license re-negotiation Partner• Service Revenue Stream• Deeper customer relations• View of customers

IT real-estate

Problem – Maximizing the return of your

“Software” Assets

• No centralized view of IT infrastructure

• No visibility of spend info• Variety of suppliers and

contracts• Multiple standards• No view of true TCO

• Service Solution Approach• Senior management

support• Convincing local IT

Management

Problem – Maximizing the return of your “Software” Assets

• No centralized view of IT infrastructure

• No visibility of spend info• Variety of suppliers and contracts• Multiple standards• No view of true TCO

Objective

• Maximize Software ROI• Avoid compliancy issues• Have centralized view of

contracts and assets• Better control over

processes

Approach

• Service solution asopposed to tool or internal development

• Enterprise wide SAM solution • Centralized management of

assets & procurement• Establish standards

Results

Customer:• “25% IT savings” - Gartner• Full overview of installed base• Smoother relationship with vendors• Better license re-negotiationPartner:• Service revenue stream• Deeper customer relations• View of customers

IT Real Estate

Critical Success Factors: Lessons Learned

• Service solution approach• Senior management support• Local IT management support

Updated SAM toolsUpdated SAM tools

Launched New SAM Customer Website

•Improved Targeting

SAM Advisor

• Extensive Content Offering:• Quick explanatory videos• Step-by-step instruction• Dozens of downloadable documents

– Policies– Templates– Testimonials

Case Study Spotlight

SAM Website – Customer ROI Calculator

•

ISO\IEC 19770 status: • Document released as draft ISO\IEC standard on 21st May• Normal review must follow, could take a year to approve but will be

a viable working document for industry purposes (notwithstanding Process Acceptance Testing completion).

Overall Structure: • 3 parts to the standard will be developed. Only the first is currently

mandated, but other two will be mandated as soon as practical. • They can be used as unofficial guidance materials prior to formal

status.– 19770-1 Software Asset Management Requirements [a standard]– 19770-2 Software Tag [a standard]– 19770-3 Software Asset Management Requirements [guidance]

ISO Standard Emerging Today

Licensing CompetencyLicensing Competency

MSPP Licensing Solutions Competency• Problem Statement:

– Acquiring and managing software licenses can be complex and daunting to customers

• Purpose: – Microsoft created the Licensing Solutions Competency to help

customers find and work with qualified solutions partners to assist with their license acquisition, software asset management, and planning

• Software Asset Management is one of the Competency scenarios

Courseware and exam currently available. Launch October 05

Specializing in License Delivery

Software AssetManagement

• Software Asset Management (SAM) SpecializationSAM solutions partners have detailed knowledge of Microsoft licensing programs & provide SAM services to organizations of all sizes

– 2 MCPs who have passed the SAM Exam:– 3 Verifiable Customer Reference Requirements

focused on SAM• License Delivery Specialization

Designed for partners with proven expertise in design, recommendation, and acquisition of Microsoft Volume Licensing options

– 2 MCPs who have passed one of the Licensing Exams– 3 verifiable Customer References focused on Licensing– Minimum Sales Bar - Rolling 12-month cycle

Note: Passing one of the MCP exams earns an MCP accreditation

Licensing Solutions Competency Requirements

•Partners who have earned this Microsoft Competency are granted additional licenses (as detailed below) for internal use and training purposes.

Licensing Solutions Competency - Software License Benefits

Gold Certified Gold Certified PartnerPartner

Certified Certified PartnerPartner

252555Microsoft Small Business Server 2003 Microsoft Small Business Server 2003 CALsCALs

252555Microsoft Project 2003 Client Access Microsoft Project 2003 Client Access Licenses (Licenses (CALsCALs) )

252555Microsoft Project 2003 Professional Microsoft Project 2003 Professional

252555Microsoft Visio 2003 Professional Microsoft Visio 2003 Professional

252555Microsoft Office Professional Edition 2003 Microsoft Office Professional Edition 2003

License Grants License Grants Licensing SolutionsLicensing Solutions

Gold Certified Gold Certified PartnerPartner

Certified Certified PartnerPartner

252555Microsoft Small Business Server 2003 Microsoft Small Business Server 2003 CALsCALs

252555Microsoft Project 2003 Client Access Microsoft Project 2003 Client Access Licenses (Licenses (CALsCALs) )

252555Microsoft Project 2003 Professional Microsoft Project 2003 Professional

252555Microsoft Visio 2003 Professional Microsoft Visio 2003 Professional

252555Microsoft Office Professional Edition 2003 Microsoft Office Professional Edition 2003

License Grants License Grants Licensing SolutionsLicensing Solutions

Licensing Solutions Competency- Training / Exam Resources

• Course: Volume Licensing Essentials (VLE)—Prerequisite for the following: http://members.microsoft.com/partner/profile/learningcenter.aspx?courseid=432

• Training for Licensing Solutions Competency:– 1. Course: Volume Licensing for Small and Medium Businesses—Training at:

http://members.microsoft.com/partner/profile/learningcenter.aspx?courseid=531Exam: 70-121—Designing and Providing Microsoft Licensing Solutions to Small and Medium OrganizationsExam prep guide at: http://www.microsoft.com/learning/exams/70-121.asp

– 2. Course: Volume Licensing for Large Organizations—Training at: http://members.microsoft.com/partner/profile/learningcenter.aspx?courseid=532

Exam: 70-122—Designing and Providing Microsoft Licensing Solutions to Large OrganizationsExam prep guide at: http://www.microsoft.com/learning/exams/70-122.asp

• Training for SAM:– Course: Software Asset Management (SAM) Essentials—Training at:

http://members.microsoft.com/partner/profile/learningcenter.aspx?courseid=527 Exam: 70-123—Planning, Implementing, and Maintaining a Software Asset Management (SAM) ProgramExam prep guide at: http://www.microsoft.com/learning/exams/70-123.asp

Microsoft SAM Roadmap

•SAM as Customer and Partner best practise

•Skilled Partners• Licensing Solutions Competency

•ISO/IEC 19770-1 Software Asset Management process standard

•Customer Reward and Recognition

Calls to Action….

• Look at your SAM messaging consider the following:– SAM Solution positioning– ROI messages

• Review SAM seminar proposals when finalised

• Review Direct SAM engagement proposals when finalised

• Submit any potential customer SAM advocates to suzannec@microsoft.com

• Review new customer/partner tools and resources at• www.microsoft.com/resources/sam• www.microsoft.com/resources/sam/partnerjump.mspx

• Take the SAM Competency and the Licensing Competency exams at• www.microsoft.com/learning/exams/70-123.asp

• Learn more about SAM ISO Standards at…..• www.bsi-global.com/bsonline.

Mis-Licensing StrategyMis-Licensing Strategy

– Enterprise Agreements, Open License, Select License, Academic Open, Academic Select, Campus Agreements, School Agreements, etc.

•These Volume License programs offer Windows upgrades only

– Upgrades are designed to upgrade previously acquired full Windows licenses

– You must first acquire the full Windows license from an OEM/System Builder or via the retail channel

•The initial full Windows Operating System is not available via any Microsoft Volume Licensing Program or through offers such as Software Assurance:

NOT

VL Agreements = Upgrade Licenses Only

Mis-Licensing Proposition

• To help customers;– better understand and follow licensing terms for

Windows OS under Volume Licensing agreements,– help them avoid inadvertent non-compliance

• Late 2005, Microsoft will remove full Windows operating system software and provide upgrade version within the Volume Licensing Welcome and Comprehensive Kit CDs

• Full bits will still be available* to customers via1. Download from MVLS or,2. Special order a CD through their Reseller

(*upon making a license acknowledgement statement.)

The license acknowledgement statement says:

“By checking this box, I acknowledge that I may install this full version of Windows only on desktops for which my organization has acquired:□ A qualifying operating system license AND a Volume Licensing Windows XP Professional upgrade license, or□ A full license for Windows XP Professional through an OEM or from a retail source (Full Package Product)[See the Product List for details.]

ANY OTHER INSTALLATION OF THIS SOFTWARE IS IN VIOLATION OF YOUR AGREEMENT AND APPLICABLE

COPYRIGHT LAW.”

Mis-Licensing Proposition

Mis-Licensing Marketing Communications

• Marketing communications clearly reflect Windows OS licensing rules

Microsoft Volume License Product Keys: A Volume License Agreement does not cover the Full Widows Operating System; a Volume License Agreement provides only an Upgrade license for Windows.

Your Volume License Key may not be used to install a full version of the Windows Operating System. Volume License Keys may only be used to install Upgrades to licensed Operating Systems after the full version of Windows has been installed. Please be aware that, to qualify for standard benefits such as support and updates, you must be properly licensed.

Mis-Licensing - Customer VL Letter Content

Mis-Licensing – Media Fulfillment

Mis-Licensing Proposition

• Launching Late 2005

WGA LaunchWGA Launch

Windows Genuine Advantage (WGA)• What is WGA?

– A new program that lets your customers validate their Windows XP software as genuine

• Why WGA?– A simple and easy way for your

customers to validate their Windows as genuine

– Customers want to know if they received what they paid for

– Customers want extra benefits for their investment in genuine Windows

– Microsoft wants to reward genuine customers and help partners sell genuine

WGA Details

• Windows updates on Download Center and Microsoft Update Web site available only to genuine Windows users

• These downloads require validation• A simple process – no product key entry required• For customers who discover they have non-genuine Windows

– Limited time offer to get a genuine copy of Windows XP directly from Microsoft

Security updates will still be available to all users

• Additional offers available only to genuine Windows customers

– Windows AntiSpyware– Photo Story 3– Training Videos– Other discounts and promotions

Promoting Genuine Windows

• Microsoft Value of Genuine Go-to-Market Campaign:– Creates customer awareness of the differentiated value

delivered from genuine Windows vs. counterfeit or pirated Windows

– Drives demand for genuine Windows– Enables customers to validate their

Windows software through Windows Genuine Advantage

– Provide tools for you to use with your customers

• Global “Start Something” campaign– Genuine Windows message integrated

• Genuine message featured throughout Windows in FY06

Customers will be hearing about genuine Windows

Next Steps

• Visit the Windows Genuine Advantage To validate your own system and learn about the specific offers available– www.microsoft.com/genuine/

• Visit our partner web sites to learn more– www.microsoft.com/oem – www.microsoft.com/partner

• Additional Resources– www.microsoft.com/howtotell– www.microsoft.com/smallbusiness/genuine

QuestionsQuestions