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Selling Office 365 through Open Volume Licensing

Product and Operations OverviewApril 2014

Session Overview

Product Overview and Positioning

Ordering and Provisioning Office 365 through Open

Renewal Strategy

Session Overview

Product Overview and Positioning

Ordering and Provisioning Office 365 through Open

Renewal Strategy

Industry trends are driving cloud momentum

Source: Forrester Research Inc., Forrsights Software Survey, Q4 2011

95%WORKERS REPORTUSING AT LEAST ONE SELF-PURCHASED DEVICE FOR WORK.

Source: Forrester Research Inc., Welcome To The Multidevice, Multiconnection World, Jan. 2011 Base: 3,900 US online adults

71%SMBs REQUIRE TECHNOLOGY THAT ENABLES STAFF TO WORK ANYWHERE AT ANY TIME.

Source: Edge Strategies survey commissioned by Microsoft Corp., “SMB Business in the Cloud 2012,” Feb. 8, 2012

Agility Devices Mobility

74%COMPANIES LOOKING TO INCREASE AGILITY VIA THE CLOUD.

What is Office 365?

Business-class Email

HD Video Conferencing

FileSharing

Plus

Anywhere Access

Simple ITManagement

Financially-backed SLA

Technical Support

Office Desktop AppsOffice Web AppsOffice Mobile

o Microsoft manages the servers for you

o Keep the control you want

o All services work together

o No servers to set up

Why choose cloud?

HD Video Conferencing

Business-Class Email

FileSharing

Anywhere Access

Simple IT Management

Financially-Backed SLA

Technical Support

FullOffice

HD Video Conferencing

o Office is always up-to-date

o Use Office on 5 devices/user

o Everything you need in one place, across all devices

o Sync files to devices for offline viewing and editing

St

o All services work together

o No servers to set upo Office is always up-to-date

o Use Office on 5 devices/user

o Everything you need in one place, across all devices

o Sync files to devices for offline viewing and editing

Why choose Microsoft cloud?

Business-Class Email

HD Video Conferencing

FileSharing

Anywhere Access

Simple IT Management

Financially-Backed SLA

Technical Support

FullOffice

Work Better Together

Be More Productive Anywhere

Get More for

Your Investme

nt

o Microsoft manages the servers for you

o Keep the control you want

Simplify, But Stay in Control

Turnkey Capabilities

Midsize Business

Cloud-based Security for

On-Prem

Exchange Online

Protection

Office 365 OpenThe right Office for your customer

Flexible SKU configuration

Enterprise-grade

services

Enterprise E1

Standalone Office as a

Service

Office 365 ProPlus

Full Office with

Compliance &

Management

Enterprise E3

Standalone Business

Class Email

Exchange Online

Tailored Offerings for Government & Academic

E1+EOAA3

More plans for tailored selling

10

Advanced Standalone

EmailExchange Online Plan 2

Standalone Collaboration &

File Sharing

SharePoint Online Plan 1 with Yammer

SharePoint Online Plan 2 with Yammer

Standalone Communications

& HD Video Conferencing

Lync Online Plan 1

Lync Online Plan 2

Full Suite + Voice Enterprise E4

Advanced Diagrams and

Project Management

Visio Pro for Office 365

Standalone Online Storage

Project Pro with Project Online and Project Pro for

Office 365

OneDrive for Business

All my files in one place

25GB StorageAnywhere Access

Sync client

Get work done. Together.

Office client integrationCo-authoringEasy sharing

A trusted enterprise-grade

service

SecurityManagementAdmin Control

Secure online storage for employees

$5/user/month standardSpecial $2.50/month ($1.50/month for SA customers) promo pricing available through September 2014

Customer Paths to the Cloud

Client Document StorageEmail

Exchange Online Office 365 ProPlus OneDrive for Business with Office Online

Add workloads (e.g., E1) or move to full suite (E3)

The right choice for many SMBs

Business-Class Email

HD Video Conferencing

FileSharing

Anywhere Access

Simplified IT Management

Financially-Backed SLA

Technical Support

FullOffice

Office 365 Midsize Business

Full suite designed for 10-250 users with some IT

Turnkey needs for all users across the company

Supports Active Directory integration

24/7 technical phone support for critical issues

$15USD per user per month (ERP)

Hero offering for advanced needs

Business-Class Email

HD Video Conferencing

FileSharing

Anywhere Access

Simplified IT Management

Financially-Backed SLA

Technical Support

FullOffice

Office 365 Enterprise (E3)

Full suite designed for room to grow beyond 250 users

Supports different user types, access to your own servers

eDiscovery and advanced archiving

Access, Excel, Visio Services, InfoPath forms, Voicemail

24/7 technical phone support for all issues

Data Loss Prevention, Information Rights Management

$20USD per user per month (ERP)

Key SKU ComparisonOffice 365

Enterprise E1Office 365

Enterprise E3A

dvan

ced

Serv

ices

Sta

ndard

Serv

ices

Offi

ce

Office Web Apps

Seat targets unlimited unlimited

IRM, Archiving, Legal Hold (Unlimited Storage)

eDiscovery Center for Compliance

Office Desktop Applications

Price (per user/month in US Dollars) $8 $20

Expanded Full

Push

For all issues For all issues

Full Full

Push

Email, Web Conferencing, IM, File Sharing

Click to Run Office Deployment

On-Premises Servers Integration

24/7 Technical Phone Support

IT Administration Console

Excel, Access, Visio Services, InfoPath Forms

Office 365 Midsize Business

11–250

$15

Expanded

Pull

For critical issues

Expanded

Pull

Active Directory® Integration

Link to the Compare All Business Plans on Office.com

The Pivotal 5 QuestionsThe Pivotal 5

Small Business Premium

Midsize Business

Enterprise (E3)

1. How many users will you have? ≤10 10+ 10+2. Do you want to integrate to Active Directory or On-Prem Servers?

3. Will some only need access to e-mail (mixed environment)?

4. Do you need advanced e-mail capabilities such as IRM, Archiving?

5. Do you have compliance requirements?

Upsell Questions

Do you have mobile workers? Yes = the need for multi-device on Office and an upsell to one of the Suites

Are you running Office 2003?Yes = End of support upgrade needed > value of Office 2013 + Hosted Mail (and other workloads)

Session Overview

Product Overview and Positioning

Ordering and Provisioning Office 365 through Open

Renewal Strategy

Scale of Reseller + Disti. Channel

Software + Service via 1 Agreement

Migration to the Annuity Business

Increased Value of Partners

Why Office 365 Open

Office 365 Open Process

Purchase

Partner Purchases Product Keys from Distributor

Activate

Partner or Customer Redeems Product Key on office.com/setup365

Acquire

Partner or Customer Retrieves Digital Product Key through VLSC

Office 365 Open Process

Purchase

Partner Purchases Product Keys from Distributor

Activate

Partner or Customer Redeems Product Key on office.com/setup365

Acquire

Partner or Customer Retrieves Digital Product Key through VLSC

Ordering Process Overview

End Customer

Microsoft O365 portal

Reseller

End Customer

Ordering process

Service provisioning process (triggered post order process above)Welcome email with OLS activation instructions. Email also sent to reseller if identified as part of PO.

Step2: Activate OLS. Reseller has option to activate service.

Service provisioned.

End Customer Reseller Distributor Microsoft

MicrosoftMicrosoft

VLSC

Step1: Obtain key. Reseller has option to obtain key.

Reseller

End Customer

Partner Purchases SKU

from Open/OV/OVS/

OVS-ES Price List

Closer Look at Office 365 Open SKUs

• Office 365 SKUs; specific per audience1

• Available in Open, Open Value, OVS and OVS-ES

• Up-front payment only with 12 months subscription

• 5 License minimum order requirement waived for Open License

• 5 desktop minimum still applies to start OV/OVS/OVS-ES Organization-wide commitment

• No Volume discount available

1Plans available for Commercial, Academic, and Government customers.

Partner Purchases SKU

from Open/OV/OVS/

OVS-ES Price List

Closer Look at Office 365 Open SKUs

• Order allowed only where O365 is availableo O365 through Open is “Additional Product” rather than

“Enterprise Product”

• Product Type is Monthly Subscription Unit (MSU)o All MSU SKUs show up on Pricelist with Monthly Priceo When ordered, the billing price is Monthly Price x 12 months

(OV/OVS/OVS-ES)o For Open License, annual price shown on the price list

• No Automatic Renewal

• OV/OVS Organization wide customers may qualify for reduced price (Commercial Only)

• OVS-ES Organization wide customers may qualify for A3 Add-Ons (Academic Only)

Product Key activated on www.office.com/setup365

Open Agreement vs. Office 365 Dates

Year 1 Year 2 Year 3

Open LOV/OVS/OV-ES

Open Agreement

Begins

Order Office 365 through

Open

Office 365 term begins at activation

Office 365

Office 365

Renew Office 365 subscription by reordering SKU through Open/OV/OVS/OVS-ES

Added seats

Office 365 co-terminus policy: When seats are added midterm, the extra months of usage are spread over all seats within the subscription, such that they all have the same end date

Office 365 Add-ons for Open ValueDiscounted Office 365 SKU “Add-on” available on OV/OVS Pricelists for Org-wide customers

• Target existing OV/OVS Customers with organization-wide commitment on Office Pro and/or Client Access License (CAL) Suite

• Target customers interested in migrating to the Cloud before their agreement expires

• Customers can experience cloud services at their own pace

• Recognize ongoing organization-wide investments in SA benefit

• Maintain existing sales motions via distributors and resellers

• Microsoft provides discounts to the distributor

• Discounted price allows partners to pass on the discount to their customers

• Microsoft does not control the reseller’s price to customer

• The discount increases based on the amount of functionality the customer has already purchased through on-premises

Office 365 Add-ons Covered ScenariosFollowing is provided as a guidance purpose only. Refer to the program pricelist for exact pricing and per billing currencies.

Commercial Government Education

M E1 E3 E1 E1+Archiving E3 A3

Core CALN/A1

-14%N/A

-10% -7%N/A Faculty: -15%

Student: -12% E-CAL1

N/A N/A N/A Office Pro Plus -39% -25% -11% Faculty: -38%Student: -56%

Core CAL or E-CAL+ Office Pro Plus -66% -45% -36% Faculty: -51%

Student: -56%

1 CAL Suite to M SKU scenario, as well as E-CAL only customer scenario are no longer supported. This offer attempts to give price reduction for equivalent O365 functionality already purchased in the VL Program. There is no equivalent offer in O365.

Customer purchases

Current customer licensing position

Office 365 Open Process

Purchase

Partner Purchases Product Keys from Distributor

Activate

Partner or Customer Redeems Product Key on office.com/setup365

Acquire

Partner or Customer Retrieves Digital Product Key through VLSC

Acquiring the Product Keys• Email is sent to the End Customer and Reseller1

within a few hours of order acceptance

Retrieve Digital 5x5

Product Key through VLSC

Open LicenseWelcome Letter

Open Value/OVS/OVS-ES

Order Confirmation

*Reseller is copied only if Reseller email address is captured on the PO

*Both End Customer and Reseller will receive the email.

1Open Value, Open Value Subscription and OVS-ES Order Confirmation Email is also sent to Reseller.

Closer Look at the Product Keys• Product Key is 25 digit alpha numeric number

Example: GG9BT-989TR-637JY-6T6T2-QD7BN

• Key Type is Online Service Activation (OSA) Key

• 5x5 Product Key appears in VLSC at the same location as Product Keys for On-Premise Software

• Each SKU purchased will generate a key for the number of seats purchased

Retrieve Digital 5x5

Product Key through VLSC

Where in VLSC are keys stored? Path #1

• Keys organized per customer1

Licenses▼

Relationship Summary

▼License ID

▼Product Keys

1Organized per License Number. In Open License, each order generates unique License Number. In Open Value Programs, each Agreement has one License Number. Multiple O365 orders in Open Value will result all keys to be displayed on the same screen.

Where in VLSC are keys stored? Path #1

• This is the recommended path to retrieve multiple Online Service Activation (OSA) Keys from a given order

Licenses▼

Relationship Summary

▼License ID

▼Product Keys

Click here to export keys to Excel

Link to redemption site inside

FAQ

Contoso Inc.

1234 Fifth StreetAnytown, USA

Filter by ‘OSA’ key

type to view O365

Keys

12345678

Where in VLSC are keys stored? Path #2

• Keys are organized per Product Family• Each SKU is a different Product Family

Download and Keys

▼Select Product

▼Key

Where in VLSC are keys stored? Path #2 • Keys can be redeemed at Office365.com/setup365

• Cut and Copy function will work

Download and Keys

▼Product

▼Key

For Partners managing key retrieval on behalf of many end customers, all of customer’s License ID and

Organization Name shows up here.

Office 365 Open Process

Purchase

Partner Purchases Product Keys from Distributor

Activate

Partner or Customer Redeems Product Key on office.com/setup365

Acquire

Partner or Customer Retrieves Digital Product Key through VLSC

Adding Partner of Record (POR)

Adding Users

Session Overview

Product Overview and Positioning

Ordering and Provisioning Office 365 through Open

Renewal Strategy

Trial conversion emails

Getting started emails

Usage emails

New feature emails

Renewal and reactive churn in-product messaging, email, web and customer support

Upsell monthly to annual or across SKUs

Customer Lifecycle Marketing

TrialGet startedand deploy

Ongoing usage

Renewal andretention

Upsell and x-sell

Build a relationship with customers across the lifecycle

FY14 Cross-Channel Renewal Approach

Distributor Reseller/Advisor Customer

Email: “Here’s your expiring customers”

To Partner To Customer

Outbound: “Customers will be

expiring”

In product: “Your O365 is

expiring”

Email: “Your O365 is expiring”

Bootcamp:“How to drive renewals”

Partner Admin Center: “Service

your O365 customers”

SHOOT tool: “Your resellers’ expiring

customers”

Online Services Dashboard: “Your

expiring customers”

Online Help: “How do I renew?”

Bootcamp:“How to drive renewals”

Inbound: “Need help

renewing?”

Renewal Communicationsexpiration deprovision

E-0 E+30

E-60 E-30E-90 E+120

E+90

disable

E-120

E+60

Email In-product msging

Resellers

(P

OR

)

Dashboard

Partner opportunity to drive Microsoft opportunity to drive Co-opportunityOp

en

/FP

P

Cu

sto

mer

s

Customer Renewal Email ExamplesDriving partner attach (Expiration-120 days) Renew through your partner (Expiration-60 days)

FPO FPO

Partner Email and DashboardTo-Partner Renewal Email

MPN Dashboard

FPO

Renewing Office 365 subscriptions through Open

MPN Hosted - Online Services Dashboard Launched on MPN (Microsoft Partner Network) in February 2014 Partner Of Record dashboard Identified deployment and renewal opportunities Partner statement format

New SHOOT/MCOIT Excel Tool Version – MPATT (Microsoft Partner Account Targeting Tool)

Launched and available in Excel format Accessible via PAM/PSE for download in March. Disti & Top-VAR versions New Office 365 subscription data (includes active subscriptions and first end-date) Data Refreshed quarterly Includes Next-Logical Purchase & Upsell/Cross-sell potential by customer

Office 365 Renewal Dashboards & Reports

69

Partner Resources

Additional information and resources on Open programs and detailed licensing guidance is available.

Learn more at: Licensing on MPNhttps://mspartner.microsoft.com/en/us/Pages/Licensing/volume-licensing.aspxhttp://www.microsoft.com/licensing/licensing-programs/licensing-programs.aspx

Questions?

Appendix

Basic v. Advanced IT needs

Fitting the budget is most important

Basic IT needs Advanced IT needs

Having the right technology is most important

One size fits all - users have similar needs for technology Mix and match - different user types with different needs

Business intelligence tools in Excel, as well as Access, Excel and Visio Services, InfoPath forms

Legal compliance & archiving needs for email – preservation of mail (in-place hold), ability to search (eDiscovery) and journaling

Full IT administration and management features Simplified IT administration and wizard based setup

Other advanced email needs - voicemail and email protection (i.e. rights management, transport rules, data loss prevention)

Need for 3rd-level domains like marketing.fourthcoffee.com

Looking to enable hybrid cloud and on-premises setup

Deliver Office apps to PCs with existing software delivery systems (i.e. System Center 2012), and use Group Policy to manage them

Core needs for email, Office desktop applications, document storage & online meetings

Key differences between other top SMB plans Small

Business

Small Business Premium

MidsizeBusiness

Enterprise

Office 365

ProPlus

Exchange Online

E1 E3

Target

Customer

Price per user per month $USD (with annual commitment) $5 $12.5 $15 $12 $4 $8 $20

Target Customer Size 1-10 11-250 Any

Seat Cap 25 300 Unlimited

IT Profile Limited IT Some IT IT/partner

Phone support from Microsoft

Standard Services

Email - 50 GB email, contacts, shared calendars (Exchange)

Online meetings - Web conferencing, IM, video, presence (Lync)

Sites - team collaboration & internal portals, public website (SharePoint)

OneDrive for Business - 25GB personal online document storage (SharePoint)

Install Office desktop applications on up to 5 computers per user (Office)

Private social networking (Yammer)

AdvancedServices

On-premises Active Directory synchronization for single sign on

Supports hybrid deployment with on-premises servers ○1

Email management features: eDiscovery, transport rules and journaling

2

Email protection features: preservation of mail (legal hold), rights management & data loss prevention3, 4

Integrated voicemail capabilities (for local phone system)

Office 365 Open SKUs by SegmentDifferentiators across SKU categories include IT controls, support, Office deployment, and advanced services

OFFER / PRODUCTCOMMERCIAL GOVERNMENT ACADEMIC

OPEN OV OVS OPEN OV OVS OPEN OVS-ES

Office 365 E1 + Archiving

Office 365 A3 for Faculty

Office 365 A3 for Students

Office 365 ProPlus Open

Office 365 ProPlus Open for Faculty

Office 365 ProPlus Open for Students

Office 365 Plan E1 Open

Office 365 Plan E3 Open

Exchange Online Plan 1 Open

Exchange Online Protection Open

Office BEST: Single campaign for Office in SMBDemand gen, sales enablement, and readiness content, plus execution guidance

http://aka.ms/BEST

for M, SBP, Office, Exchange Online Tele Discussion Guides

link

Web Syndication

link each design comes with 3 different sizes

Digital Web Banners

link

generic SMB, plus 5 industries Webinar-in-a-box

link to generic

Direct Email Templates link

pitch decks, leave-behinds, demo scripts 1-to-1 Engagement

link toMM deck