Tony MadiganDirector, Dynamics Pricing & Licensingtmadigan@microsoft.com

Dynamics Pricing & Licensing: Review of FY07

• Q1:– Business Ready Licensing– Software License Terms– Product Line and Edition Transitions

• Q2:– Business Ready Licensing (Adjustments)– Dynamics CRM on Dynamics ERP pricelists

• Q3:– Multi-Site Agreement– License Model Transitions

• Q4:– Dynamics Client for Office– Global Volume Agreement (Pilot)

Pricelists to Programs: BRL to MA to GVA

What does Business Ready Licensing offer to customers?

Value for Customers• Providing customers with more solution value at a lower

entry point • Addressing "11th user" and multi-site barriers • Concurrent user structure extends value to more

employees

Simplicity• Simplified packaging, pricing and enhancement terms and

conditions • No user count restrictions • Greater transparency

Expanded Deployment Options• More competitive for multi-site and divisional

implementations

BusinessEssentialsBusinessEssentials

Advanced ManagementAdvanced

Management

Advanced Management

Enterprise

Advanced Management

Enterprise

MA User Tiers * Qualifying Points BRL Tier

D From 51 to 75 25%

E From 76 to 160 35%

F From 161 to 500 40%

G From 501+ 45%

Multi-Site Agreement (MA) will Multi-Site Agreement (MA) will enable our customers the enable our customers the ability to purchase and deploy ability to purchase and deploy Dynamics BRL solutions across Dynamics BRL solutions across multiple sites.multiple sites.

*- Tier D available in emerging markets (APAC, GCR & LATAM)

MA Contract is signed with MSMA Contract is signed with MS

Multiple partners leverage Multiple partners leverage over term of MA Contractover term of MA Contract

Partner BPartner A

Customer

SSP-MBS

MA Contract

MA is based on points which MA is based on points which accumulate across customer accumulate across customer sitessites

1 foundation pack = 1 1 foundation pack = 1 pointpoint

1 user = 1 point 1 user = 1 point Points determine MA tier and Points determine MA tier and tiers E, F, G map to BRL tiers E, F, G map to BRL discountsdiscounts

Foundation Pack Foundation Pack discounteddiscounted

Term is 2yr + 1yr optionTerm is 2yr + 1yr option

GVA User Tiers Qualifying Points BRL Tier

F From 161 to 500 40%

G From 501 to 1000 45%

H From 1001 to 1500 50%

I From 1501+ 55%

Global Volume Agreement Global Volume Agreement (GVA) will enable our customers (GVA) will enable our customers the ability to purchase and the ability to purchase and deploy Dynamics BRL solutions deploy Dynamics BRL solutions across multiple sites.across multiple sites.

GVA Contract is signed with MBS GVA Contract is signed with MBS Lighthouse teamsLighthouse teams

Partner BPartner A

CustomerLighthouse

GVA Contract

GVA is based on GVA is based on forecastedforecasted points which accumulate across points which accumulate across customer sitescustomer sites

1 foundation pack = 1 point1 foundation pack = 1 point

1 user = 1 point 1 user = 1 point

25% upfront commitment25% upfront commitment

Annual Purchase Annual Purchase CommitmentsCommitments

Points determine GVA tier and Points determine GVA tier and tiers F to I map to BRL discountstiers F to I map to BRL discounts

Foundation Pack discountedFoundation Pack discounted

Term is 3 YearsTerm is 3 Years

How MA & GVA works

Global Volume Agreement (GVA)

• Same as BRL with the following adjustments:

• 161 point minimum forecast commitment

• 25% upfront purchase commitment

• Annual purchase commitments

• BRL Tier discount applicable to AME purchases

• Allows aggregation across sites (customers can thus obtain a higher user break tier)

• Three year contract

• Foundation Pack gets same discount as BRL users

• Tier discount & AME discount reflected in BREP

Note: the country of customer site location = country price list used for both BRL & MBL

Multi-site Agreement (MA)

• Same as BRL with the following adjustments:

• 76 point minimum on first batch of orders (ordered simultaneously)

• Allows aggregation across sites (customers can thus obtain a higher user break tier)

• Two year contract

• Foundation Pack gets same discount as BRL users

• Tier discount reflected in BREP

© 2006 Microsoft Corporation. All rights reserved.This presentation is for informational purposes only. Microsoft makes no warranties, express or

implied, in this summary.