A Reseller’s Guide to Microsoft Genuine Software

Legalization

Microsoft Genuine Software

Piracy costs everyone…

The BSA estimates the commercial value of total Software Piracy in 2009 at

over $51 Billion

And Worldwide 400,000 jobs could be created with just a 10% reduction in Piracy rates

What do you think it’s costing you?

Note: Each subsidiary should update with specific region or country information if available.

7th Annual BAS and IDC Global Software Piracy Study

3

Type Description Customer Scenarios

Under-licensed

• Procures through Microsoft resellers a few Office licenses, the Office bits and a VL activation key. Customer “overuses” the licenses on more PCs than permitted in the terms.

• Office is loaded on a computer network with a concurrent use agreement, and there are fewer licenses than the total number of workstations using it concurrently.

• Uses software on multiple PCs in excess of the numbers of copies allowed.

• Borrows license keys from a friend or co-worker and overuses them.

• Uses academic software for home or personal use beyond the terms of an academic license.

• Brings software home from work to install on a home computer.

• Uses a version that is not licensed for a specific geographic area.

Unlicensed (Pirated)

• Installs Office software using leaked or stolen Volume Licensing Keys (VLK).

• Uses stolen VLKs on counterfeit software that may contain malware, viruses, and Trojan horses.

• Downloads software from peer-to-peer network such as Kazaa or Morpheus.

• Purchases software from a street vendor or market stall (flea market).

• Buys software from a private party (friend, co-worker, garage sale).

• Leaked keys from VL customer are posted online and used to activate more copies of software.

Channel driven

• Reseller overuses a single license on multiple PCs (called hard disk loading).

• Customer may become victim of partner fraud.• Customer may not hold software license rights.• Customer may not comply to local or national

Intellectual Property laws.

Customer Legalization Scenarios

Customers find themselves in need of getting Genuine software for many reasons:

MARKET

Impact of Piracy

1The Surprising Risks of Counterfeit Software in Business (Microsoft, March 2009), http://www.microsoft.com/genuine/research.aspx Impact of Unlicensed Software on Mid-Market Companies, The Harrison Group, 2008.

• According to a Harrison Group study, companies using unlicensed software were 73% more likely to have loss/damage of sensitive/valuable data and 43% more likely to have critical system failures lasting 24 hours or more than those using fully licensed software.

• Genuine Microsoft software customers get access to all optional updates, automatically and free of charge, helping their PCs run smoothly.

• Genuine Microsoft users have access to the latest features, enhancements and innovations.

• Research shows that buying and using non-genuine software exposes users to security risks, including viruses and spyware. Without the support from Microsoft, your PC may be rendered ineffective and left exposed.

RISKS OF NON-GENUINE PRODUCT

Piracy impacts legitimate businesses, and particularly, our channel partners who must compete with those selling counterfeit and unlicensed software.1

1. Of the midsized businesses reviewed during our study, counterfeit software was discovered at a significant portion, 37%.

2. All of the counterfeit software found was high-quality, which also points to an increase in sophistication on the part of counterfeiters. Because the businesses had purchased the software in good faith, they were surprised to find that the software was not genuine.

3. Each midsize business found to have counterfeit software in the study spent an average of £7,185 GBP ($10,222 USD) on these purchases, which in turn provided them with software that was neither licensed nor genuine and put them at risk.

ECONOMIC IMPACT OF PIRACY

Office Genuine Advantage

Helping your Customers get Genuine

For those customers who have unknowingly purchased a counterfeit version of Office, Microsoft has created two genuine Office offers for those who qualify: Genuine Office Complimentary Offer: Microsoft will make a complimentary copy of Office 2007 Professional Edition available for those customers who have been sold counterfeit Office. To qualify, customers will be required to submit proof of purchase, a counterfeit report, and a high-quality counterfeit CD. Office Genuine Advantage Kit: For those customers who have failed Office validation and do not qualify for, or choose not to take advantage of, the complimentary offer, Microsoft will provide an Office Genuine Advantage Kit at special online prices. This kit will be available for the following Office editions:

Microsoft Office Professional 2007Microsoft Office Small Business 2007Microsoft Office Home and Student 2007

Note: Not all Office 2007 editions are available in all regions. The Office Genuine Advantage Kit is limited to one order per computer and up to five copies per shipping address. The Genuine Office Complimentary Offer is limited to one offer per shipping address.

Office 2010: Volume Licensing Benefits

RESELLER BENEFITS

1. Build profitable customer relationships• Offer more competitive pricing

• Leverage additional Volume Licensing benefits

2. Provide simpler deployment, upgrading, and patching• Volume License keys to perform

multiple installations easily

• Centralized deployment, disk imaging and software distribution

3. Ensure future revenue streams• Software Assurance helps drive

ongoing relationship*

• Customization and deployment project revenue through packaged services

1. Attractive & predictable pricing• Volume Licensing discount

• Multi year contract

2. Streamlined license acquisition & deployment• Physical media or Download

• No need for PC-by-PC activation

• Eligible for Software Assurance*

3. Ease of management & deployment• Reimaging and Downgrade rights*

• Platform-independent licenses

• Hardware license reassignment rights

CUSTOMER BENEFITS

Why Support Genuine Office

GROW YOUR VOLUME LICENSING BUSINESS

• Target the significant legalization revenue opportunity, mis-licensed, under-licensed and pirated all present a significant revenue opportunity with Genuine Microsoft software

BE A TRUSTED ADVISOR

• Educate customers on risks of using non-genuine software.

• Help your customers get more from their software investment with genuine Microsoft software.

• Protect your customers from the negative consequences that can happen with pirated software

UPGRADE CUSTOMERS TO OFFICE 2010

• Office 2010 helps SMBs to work better together, bring ideas to life, and use Office virtually anywhere.

• Empower them with tools that help them save costs, collaborate more easily and get more done with less – all things that address your SMB’s needs and pain points.

Why should you care?

Drive Office Legalization Revenue

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34 More information, visit http://www.microsoft.com/genuine

Educate yourself on the Office Genuine Advantage program

Target and contact small to medium sized organizations with installed Office to ensure they are properly licensed and running Genuine software Educate your customers on the true cost of Piracy

Why is it important to use genuine Microsoft software?Genuine Microsoft software is

published by Microsoft, properly licensed, and supported by Microsoft or a trusted partner. Genuine Microsoft software provides confidence that customers will receive the latest product features, updates, and ongoing improvements to keep their PCs performing their best.

What are the risks of not

using genuine software?

The risks of using non-genuine

software include:

• Unnecessary downtime and

reduced operational

efficiencies

• System failures from

malicious and unwanted

software

• Increased vulnerability to

malware

• Higher IT total cost of

ownership

• Employee discontent

© 2009 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 presentations. 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.