Microsoft Open Licensing & Software Assurance 6.0 Overview

1. Microsoft OpenLicensing & Software Assurance 6.0 Overview Mayra Ramos Commercial Licensing Manager Microsoft Caribbean and Central America

2. New Since Announce • Launch period extension until Feb. 28th. • UA availability extension until Feb. 28th. • SA eligible products • Proof of License

3. License Overview • Replaces multiple Licensing SKUs • Standard License, Version Upgrade, Competitive Upgrade, Product Upgrade, Language Upgrade, and ‘get current’ portion of Upgrade Advantage • Provides rights to current version • No pre-requisite to purchase • One-time purchase LUP VUP L CUP Std PUP UA Licensing offerings have been simplified

4. Open License 5.0 Term UPG ADV 2 year term License Offerings Std, PUP, VUP, CUP, UA Initial Order Minimums Business: 5 licenses Volume: 500 points Open License 6.0 Term SA(UPG ADV) 2 year term License Offerings We will have 3 part #: L, SA, L&SA Package L = License/Upgrade SA = Software Assurance Initial Order Minimums Business: 5 licenses Volume: 500 points Open License 5.0 versus 6.0 ***Only change is in License Offerings. All else remains the same.*** New OLD Program

5. Software AssuranceOverview • Provides upgrades and updates through enrollment term • Initial SA purchase MUST be purchased with License • License & Software Assurance • Available separately at time of renewal or for OEM/FPP • Price reflects remaining years of term • Annual payments Year 2 Year 1 SA ……….……………..Upgrades…….…………………… Software Assurance provides benefits to customer throughout enrollment term.

6. Software AssurancePricing Tiered Volume Price Levels • Applications • Software Assurance = 29% License per year • Systems • Software Assurance = 29% License per year • Servers • Software Assurance = 25% License per year Annual Software Assurance = % License

7. Open 6.0 OverviewFeatures & Benefits • Software Assurance:upgrades for enrolled licenses • Broad reseller base:purchasing options widely available • eOpen (electronic license tracking):easier to manage and administer a portfolio of licenses • Open Business: simplicity, flexibility and savings based on minimal volume purchase • Initial order requirement of only 5 licenses • No minimum requirement for additional orders • Single price level - no points, no pools • Open Volume: greater savings on larger volume purchases • Initial order minimum 500 points per pool* • Volume pricing level set for two years following initial purchase • No minimum requirement for additional orders * EMEA also offers 150 point option

8. What is Upgrade Advantage? • Upgrade Advantage gets you the most current version of a product and keeps you current for 2 years.

9. Academic Select & Open Same as Corporate except: • Select - single price level • 1,500 point minimum per pool • Open - single price level • Comparable to Open Business

10. Getting Current (May 10 – Feb28) May 10 – Sept 30 Oct 1 – Feb. 28 March1st- Forward Transition Period Launch Period Steady State UA or non-current Annuity Model UA VUP Annuity Model Software Assurance or License Do nothing License

11. Microsoft Open 6.0 SKUs • L = License/Upgrade • Replaces multiple Licensing SKUs(Standard license, V/U, C/U, P/U, and Language UPG) • Provides rights to the current version • No pre-requisites to purchase • One-time purchase • SA = Software Assurance • 2Yr term(like UPG ADV) • Provides upgrades and updates through enrollment term • L + SA = License & Software Assurance • After March 1, customers can not buy SA separately

12. Impact Changes of 6.0 Changes • Desktop OS • BO / Core CAL • OEM & Retail products. • Proof of Licenses

13. Desktop OS & L/SA • We will still sell an OS upgrade ONLY in the new 6.0 programs as the “L” for desktop OS. FPP in cases of AP • SA will be offered for OEM/Retail OS within 90 days of purchase of that OS • There is no SA for XP Home • Linux is NOT a qualifying upgrade OS • Refer to the Windows XP migration map for details.

14. Windows XP Technology Guarantee in Latam. Terms and conditions: i.  Dates: Licenses purchased between September 1st and October 31st, 2,001. ii. Geographic coverage: All countries in Latin America including the Caribbean islands (*) . TG will not be offered in the US. ii.  List of products covered: Windows 2000 Professional. Windows Millenium and Windows 98. iii. License type covered: Licenses bought through OEM, COEM, FPP and Academic FPP. iv. License type NOT covered: Volume Licensing sku´s such as Open and Select or any other type of license not specified in numeral 4 as shown above. v. Fulfillment: Will be handled via WW Operations and CRG teams. End Customers will have to contact local CRG centers, and be asked to pay approximately $15 + local taxes to cover S&H (same model used in previous TG).

15. OEM, Retail & SA • OEM & Retail licenses for ANY application products are NOT ELIGIBLE for Software Assurance • Key differences between Office XP in OEM & Retail, and volume licensing media: • Office media thru WWF & Select CDs will include features not in OEM & retail media • Office Resource Kit (also available on Web) • Pluggable UI for multi-language support • Office OEM & Retail media will not work with enterprise deployment tools • Setup /a, Setup /q • Custom Installation Wizard/Custom Maintenance Wizard

16. Retail – Full Packaged Product • Servers • Removing upgrades 10/1 (except SBS) • Systems • Keeping upgrades and also FPP in Latam • Developer Tools • Upgrades – MSDN Suscription

17. BackOffice to Core CALTransition • BackOffice Server and CAL replaced by individual server licenses and the new Core CAL, respectively.

18. Core CAL Overview • Client access license that provides the rights for “desktops” (ie, devices) to access the following servers: • Exchange 2000 • Windows Server (Whistler) • SharePoint Portal Server • SMS (2.0) • Servers must be licensed separately • Licensing package for clients – not available through retail • Positioning Statement • Core CAL provides a convenient way for enterprise customers to license their desktops for intranet, networking, and collaboration.

19. Sales Campaigns

20. Proof of License and Order Confirmations • Proof of license requires: • Agreement • Applicable enrollment • Order confirmation • Order confirmations will be online for the customer to download and print • We will not be sending out license confirmations • Proof of payment • Record of transfers • EA Subscription rights are temporary. If customer buys out perpetual rights, the above applies.

21. Other Programs, Retail, and OEM

22. Sales Opportunities $$$$$$$ • Changes make Upgrade Advantage very attractive option • Upgrade Advantage is Grandfathered into Software Assurance (Sell Upgrade Advantage and Win $$) • UA has same point value as the underlying product license • Less Cost than VUP plus SA. Best priced option • No purchase necessary in Launch Grace Period ending Feb. 28 because customer owns UA. • In steady state after March 1, UA customers eligible for Software Assurance renewals

23. Summary • Customer must buy License and Software Assurance after the October 1 program launch. • Current customers will only need to buy Software Assurance (Get Customers Current) • Upgrade Advantage customers will be grandfathered into Software Assurance (Sell Upgrade Advantage prior to October 1st)

24. Volume Licensing Programs Summary