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CHANNEL INCENTIVES UPDATE LAR INCENTIVES SESSION:AP093 David Kinch Channel Incentives Manager Microsoft Corporation Lisa Slim Microsoft Alliance Business Manager Hewlett-Packard MPN partner since 1989 HP Enterprise Business Ro Kolakowski Company Partner 6th Street Consulting MPN partner since 2006 SharePoint Agenda Background Opportunity Next Steps Historical Perspective Distribution Volume Licensing Online Services & Solutions

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

En ab an Pl Retain Customers Se ll Se rv s ic e Desktop Deployment Planning Services and Accelerate Channel Activation Create Demand Re-selling le Technical Support Software Asset Management Incentives addressing partner activities

1 throughout the entire sales lifecycle Proof of Concepts and Pilots 2 Structuring incentives to evolve with market needs and advancing technologies The Opportunity for Partners Budget Grows with Revenue Corporate Accounts Major Accounts SAM Services Growing from 30% to 80% EA Penetration Drive for Operational Efficiency and quality in serving customer licensing needs Providing customers with value-added Software Asset Management Activities Online Services Driving Online Services Growth and Deployment Solutions Selling solutions - Lync, Application Platform, Management and Virtualization, and Windows 7 Small and Medium

Business Top-Line Growth through funding of Marketing Activities Enterprise Incentives Corporate Accounts Rewarding partners for selling new EAs, Incentives renewing existing Enterprise Agreements, and selling specific Solution areas rewarded through Accelerators Corporate Accounts Core Elements Sell Transact Manage Deploy Major Accounts Drive for Operational Efficiency Incentives and quality in serving customer licensing needs Major Accounts Incentives SELL Help Desk Contract Management Corporate Accounts Accelerators Global Base True-Up Service

True-Up CA/SA Agreements, EES sold through LAR Software Assurance Benefit (SAB) Consumption, per unit consumed: Packaged Services Training Vouchers Select Plus MANAGE DEPLOY Corporate Accounts Local Accelerators SAM Service Incentives SAM Baseline Credit & Collections Renewal Q3, Q4 Jan 2- June 30, 2012 Rewarding partners for SAM Services engagements with customers TRANSACT Credit and Collections Renewal Q2 Oct 3 Dec 30, 2011 SAM Services Incentives

SAM Assessment SAM Deployment Planning Great Opportunities announcement RENEWAL NEW Oct 2011 CA EA Deal Registration Opens Dec 2010 Partners earn Sell fees without CA EA Deal Registration Jan 2012 Partners earn Sell fees with CA EA Deal Registration Partners earn DOUBLE On-Time Renewal Accelerator in CA Sept 30 On-Time Renewal Bonus across all CA & Major July 2012 Partners earn normal On-Time Renewal Accelerator in CA Operational Excellence Bonus

Operational Excellence Bonus 10% on CA Transact, Major Account Help Desk and Contract Management fees Reward highest levels of operational performance Top 5% of Ops performance Based on: Valid Agreements Help Desk Activity Log (Major) Microsoft Partner Receivables Order Accuracy Operational Performance Review Operational Excellence Bonus Solution Incentives INCREASED NEW RATES Management & Virtualization Windows 7

Suites Windows 7 Enterprise + MDOP Example: ECI 30% Virtualizati on 20% Manageme nt 5% Identity and Security 5% Rates after Oct 1, 2011 10% Windows 7 7% MDOP 3%

GLOBAL NEW! App Plat/SQL Lync Enterprise 20% Enterprise 20% Standard 10% Standard 10% Online Services Incentives EA Deployment of Online Services Incentives Online Advisor Windows Intune, Office 365 Year 1 All Years 12% 6%

Windows Azure Incentives Windows Intune Deployment (New, Add-On) New WC EA 50 % Windows Intune Deployment (New, Add-On) on Existing WC EA 12% Office 365 Deployment 12% Windows Azure 25% SMB Incentives Managed Reseller Incentives Global Incentives ry sidia Sub ction Sele Local Accelerators

Introducing CoOp for Managed Resellers Worldwide Open VL Core Growth & Incubation OVS Growth Anti-Piracy Renewals Public Sector Partner Readiness Market Development Demand Generation Summary Selling Solutions Partner Marketing En ab an Pl Retain Customers Se ll

Se rv s ic e Desktop Deployment Planning Services and Accelerate Channel Activation Create Demand Re-selling le Technical Support Software Asset Management Incentives addressing partner activities 1 throughout the entire sales lifecycle Proof of Concepts and Pilots 2 Structuring incentives to evolve with market needs and advancing technologies Channel Incentives

Roadmap WPC 2010 Announcement of new incentives for 2011, and Solutions Incentives Sept 2010 WPC 2011 Oct 2011 Incentives Guides Provided through PAMs Incentive Guides Accelerator Rates Launch Launch Solutions Corporate Accounts Online Services Managed Reseller Major Accounts SAM Services Grandfather ESA Sunset LAR Rebates Partner and Field Feedback Internal Governance Next Steps for Partners Corporate Accounts Major

Accounts SAM Services Online Services Understand the local CA Opportunity and prepare for EA Deal Registration and T-36 activities and operational excellence Drive for Operational Efficiency and quality in serving customer licensing needs Earn Microsoft Partner Network Gold Competency in SAM, to grow SAM prospects and business Drive purchasing and deployment of Office 365, Intune, and CRM Online on the EA to grow revenue and earn incentives Solutions Earn Microsoft Partner Network Gold Competencies and build solution practices Small and Medium Business Grow Open revenue and develop marketing plans to take advantage of Co-Op funds 2011 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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