Server and Cloud Enrollment (SCE)

Agenda

2

Using Microsoft Payment Solutions

Implications for EA, EAP and ECI customers

How Server and Cloud (SCE) Enrollment works

Server and Cloud Enrollment (SCE) value proposition

Next Steps

3

Transformational Trends

Cloud Computing2011

2016 5x increase

compute

networkstorage

New Social &App Patterns

>1B

200M

10.4M160M

3.3 devicesper worker

by 2014

Consumerization of ITx 90% of the

data in the world today has been created in the last two years alone

Data ExplosionTotal world data to date

The last 2 years

1CONSISTENTPLATFORM

The cloud OSModern platform for the world’s apps

Enables modern apps

Unlocks insights on any data

Empowers people-centric IT

Transforms the datacenter

Consistent platform

4

5

We need to provide you a licensing program that is:

Cloud EnabledGrow in the cloud organically, without losing the value built in existing technologies

Standardized & SimplifiedStreamline deployment and license management with a single licensing vehicle

Cost Savings & BenefitsBest pricing and additional benefits that support the Cloud OS platform

Licensing Foundation for the Cloud OS

Server & Cloud Enrollment (SCE)A new licensing program for highly committed customers

*For qualifying customers

Easy onramp to cloud

Application license mobility

Cloud management benefits

Subscription flexibility

Best pricing and terms

Unlimited support*

Enterprise product rights predictability

Consistent cloud OS platform

Access to newest technologies

Reduce license management

Single enrollment for server and cloud technologies

License

6SCE is also available for Government customers through the Government Partner model. For education customers, we continue to offer the Education Server Platform through the EES for customers wishing to simplify their server licensing.

*BizTalk Server and SharePoint Server can also be enrolled as part of the application platform component

Core InfrastructureProducts

CIS SKUs (Windows Server + System Center)

RequirementsCIS coverage for all Windows Servers

ApplicationPlatformProducts

SQL Server, SharePoint Server & BizTalk Server*

RequirementsFull SA coverage

DeveloperPlatform

ProductsVisual Studio Ultimate and Premium

RequirementsFull SA coverage

WindowsAzure

ProductsAll Microsoft Azure cloud services

Available automaticallyCan also be licensed standalone

+ Access to Microsoft Azure

The Server & Cloud Enrollment (SCE)Choose one or more of the available components

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8

SCE and Microsoft’s Enterprise Agreements (EA)

*ECI customers must make an installed base commitment to the Core Infrastructure Suite (CIS) with SA.

The most flexible and predictable terms available

Provides renewal options for existing EAP & ECI customers*

Includes EA benefits such as volume discounts

3 year commitment made under an EA

Moving to SCEEAP and ECI customers are not impacted during the term of your existing agreement

With an installed base commitment to CIS in SCE, customers have access to our best pricing and terms, new subscription options and new Microsoft Azure benefits

Customers not making installed base commitments to the Core Infrastructure Suite can license it through other volume licensing programs, with no dedicated contract or minimums

9

EAP customers can renew their installed base commitments in the SCE

Additionally, customers will now have more seamless access to Microsoft Azure, new more flexible subscription options and a standardized set of discounts with the Enterprise Agreement

Microsoft Payment

Solutions helps customers

expand their IT purchasing

power and improve cash

flow with an easy, flexible

and affordable payment

plan aligned to their budget

Microsoft Payment Solutions is available in United States, Canada, United Kingdom, Germany, Spain, Belgium, France, Italy, Switzerland, The Netherlands, Australia, New Zealand, Japan and Brazil For informational purposes only. This does not constitute an offer of credit by Microsoft or any affiliate of Microsoft. To receive financing, a customer must be credit-approved by the applicable third-party financing provider. The financing agreement sets forth the terms and conditions on which financing is offered.

Microsoft Payment SolutionsEasing the transition from ECI and EAP to SCE

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Manage payment timing & close budget gaps

Align payment with use

Manage cash flow more strategically

Leverage Microsoft Payment SolutionsConverting from ECI and EAP to SCE with flexible payment options

You defer making any payments for up to six months when there is an immediate need but budget isn’t available till the next fiscal year

You can spread the annual SCE expense including any true-ups over the rest of the contract term with equal, predictable payments

11Microsoft Payment Solutions specialists available in these countries/regions:United States, Canada, United Kingdom, Germany, Spain, Belgium, France, Italy, Switzerland, Netherlands, Australia, New Zealand, Japan and Brazil

There is not enough budget in current fiscal year to cover the year 1 SCE payment

You pay less in the near term and then increase payments in later periods when more funds are available

There is limited budget and you want to map payment to the ROI of the SCE investment over time

You plan to renew into SCE but want to manage cash flow with spread payments

Examples

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The SCE will be available in Q4 of CY2013

Learn more about SCE on microsoft.comhttp://www.microsoft.com/licensing/licensing-options/enterprise.aspx

Next Steps

© 2013 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

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Appendix

1Core Infrastructure Suite (CIS) is available (Windows Server + System Center)

2Includes Microsoft Azure by default

3Standardized discounts & terms

4Subscription option added (no more deferred license)

With four important additions

SCE is an evolution of the EAP

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Building your SCEOptions and minimum requirements for covering your SCE commitment

Core InfrastructureCIS Datacenter

CIS StandardCIS Datacenter w/o Windows ServerCIS Datacenter w/o System CenterCIS Standard w/o Windows ServerCIS Standard w/o System Center

All licensed Windows Server deployments must be covered with one of the above SKUs.

ApplicationPlatformSQL Server CAL

SQL Server Enterprise per coreSQL Server Business Intelligence ServerSQL Server Standard per coreSQL Server Standard ServerSQL Server Parallel Data Warehouse per coreBizTalk Server Enterprise per coreBizTalk Server Standard per coreBizTalk Server Branch per coreSharePoint Server

DeveloperPlatform

Visual Studio UltimateVisual Studio PremiumVisual Studio Test ProfessionalVisual Studio Team Foundation Server CALMSDN Platforms

WindowsAzure

All Microsoft Azure cloud services

Minimum order requirements

Minimum order requirements

Minimum order requirements Minimum order requirements

50 processors via 25 licenses (each license covers up to 2 physical processors) or more of one or a combination of Core Infrastructure Server Suites Standard or Datacenter

SQL Server: 50 SQL Server per core or 5 SQL Server per server with 250 CALsBizTalk: 24 cores of any editionSharePoint Server: 5 servers

20 licenses of any combination of Visual Studio Ultimate and Visual Studio Premium

Or can be licensed standalone

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Microsoft Azure in SCEMicrosoft Azure can be licensed in two ways through SCE

Microsoft Azure

Core Infrastructure

Application Platform

Developer Platform

SCEAzure only SCECustomer’s EA level is defined by the initial customer commitment

Available automaticallyWith commitment to any of the other components of SCE

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Microsoft Azure for committed SCE customers

SCEIf you commit to another SCE component, you can just start using Microsoft Azure:

• Another 5% off EA level pricing (excluding Azure Storage)o No overage penaltieso Billed quarterly*

• Automatically availableo Upfront commitment

not required*o Pay for what you use

• On-boarding help

Microsoft Azure

Core Infrastructure

Application Platform

Developer Platform

Available automaticallyWith commitment to any of the other components of SCE

18*If no monetary commitment, quarterly billing is the default

Microsoft Azure only SCEs

SCEYou can also sign a Microsoft Azure only SCE:• Same great Azure benefits

available to all EA customers

• Upfront commitment required

• No additional 5% SCE discount

Microsoft Azure

Core Infrastructure

Application Platform

Developer Platform

Azure only SCECustomer’s EA level is defined by the initial customer commitment

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All products on the EA additional products list can be added, except for products available in SCE components

The following are available as additional products:

• Visual Studio Pro • SQL Server Enterprise Edition Server

(non-core) SA only• System Center Datacenter and

Standard Edition (for managing non-Windows Server deployments)

Subscription is not available for any additional products except for Online Services

Additional products

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How to establish the customer footprintBaseline licenses must be identified for all affiliates being included in the SCE

1. 3.2.

• Any existing licenses deployed with continuous SA (across all enrollments)

• Any existing licenses deployed without continuous SA

• New licenses that are being purchased

• Renew SA for existing license current with SA

• For existing licenses without SA:

o Add subscription SKUs

Oro Add L&SA at

signing

• All baseline licenses for Windows Server must be covered with System Center

• Coverage achieved through adding CIS SKUs

• “CIS without” SKUs are available when Windows Server or System Center SA is current

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Enrolling in the Core Infrastructure Component

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CIS Licenses in use with SA

50 CIS Datacenter 100 CIS Standard

Standalone Licenses in use with SA

50 Windows Server SE

Step 1: Identify the Installed Base

Existing Baseline

Licenses in use without SA

40 Windows Server SE

Enrolling in the Core Infrastructure Component

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CIS Licenses in use with SA

50 CIS Datacenter 100 CIS Standard

Standalone Licenses in use with SA

50 Windows Server SE

Licenses in use without SA

40 Windows Server SE

Step 2: Renew SA in SCE; Add L&SA or Subscription

Existing Baseline

*Customers can elect to subscribe to units if they want the flexibility to true down (if they plan to retire workloads or move to the cloud for example)**Customers can choose a combination of L&SA or Subscription

SA*: 50 CIS Datacenter 100 CIS Standard

L&SA*: 50 CIS SE w/out Windows Server

L&SA**: 40 CIS SE

Subscription**: 40 CIS SE

SCE CPS

OR

Customers can purchase subscriptions to cover licenses without continuous Software Assurance at signing or for new deployments

Subscription provides flexibility through:

• Lower upfront costs when signing a SCE

• More purchasing options for new units

• Ability to reduce licenses annually when retiring workloads, consolidating or migrating to the cloud

Subscription SKUs will be sold via Monthly Subscription Units (MSUs)

Subscription in SCE

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*Subscription pricing percentages are set based on non-SCE discounted licenses (standard waterfall discounts apply). Visual Studio will be priced at 46% of a license.

Pricing

MSUs allow you to pay for each month deployed and will be priced at 35.5% of the license only price*

Minimums

You must commit to a minimum of 12 months

Reductions

You can reduce subscription units no longer being used for deployed workloads at each anniversary date

Buyouts

If you do not renew or wish to own, buyout pricing will be set at year 3 true up pricing

Subscription overview

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26

Automatic Annual Billing Automatic Annual Billing

Adding MSUs at signing:

Year 1 + 40 CIS SE Subscriptions (via MSUs)

40 x MSU price x 12 months

How Subscriptions WorkAdding Subscription at signing

End of Year 3 options:• Renew • Buy-out• Stop using

Year 1 Year 2 Year 3

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-5 MSU Reduction: Pay for 35 MSUs moving forward*

Reducing subscription licenses:

+ 40 CIS SE Subscriptions (via MSUs)

40 x MSU price x 12 monthsYear 1

- 5 CIS SE Subscriptions (via MSUs)

Year 2

35 (40-5) x MSUprice x 12 months

How Subscriptions WorkLicense Reductions

Automatic Annual Billing

Year 1 Year 2 Year 3

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3 mo +12 months

Adding MSUs at True Up:

Year 1True Up

+ 5 CIS SE Subscriptions (Deployed in month 9 of first year)

Automatic Annual Billing

How Subscriptions WorkAdding Subscription Units at True Up in Years 1 & 2

5 x MSU price x 15

You add 5 MSUs: Pay for 15 months at the end of Year 1• Pay for each month deployed in previous year• Pay forward 12 months

Year 1 Year 2 Year 3

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You add 5 MSUs: Pay for 6 months at the end of Year 3• End of Year 3 Options: Renew, Buy-out, Stop Using

5 x MSU price x 6 months

How Subscriptions WorkAdding Subscription Units at True Up in Year 3

Adding MSUs at True Up:

Year 3True Up

+ 5 CIS SE Subscriptions (Deployed in month 6 of year 3)

6 mo

Year 1 Year 2 Year 3

Cloud Management Benefit

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*Limited to 10 eligible Microsoft Azure VOSE instances for each CIS license

SCE customers enrolled in the Core Infrastructure component can use System Center to manage Microsoft Azure VOSEs:

Eligible Microsoft Azure VOSEs instances:* Windows Virtual Machine instances Cloud Services instances (Web and

Worker Role) Storage Accounts SQL Databases Websites instances

*Customers who opt in to unlimited support lose the ability to convert incidents (earned through SA on SCE products) to premier hours**Minimum is for each component enrolled and the actual dollar amount varies by geography

Unlimited problem resolution support*Unlimited support when you deploy on Microsoft’s server & cloud technologies

Opt-in SA benefit only available through the SCE*

Unlimited premier reactive support incidents for core infrastructure and application platform components

Available to customers with premier services agreements (minimum SA spend of $250,000 per year**)

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