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Licensing Software Assurance 6.0 LSA

Microsoft Confidential. 2. Cilj prezentacije. VizijaOsnovni pojmovi Pregled License

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Licensing Software Assurance 6.0 LSA

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    1. Microsoft Confidential 1 Licensing & Software Assurance 6.0 L&SA Tihomir aic Channel manager Microsoft Hrvatska 24.05.2001. Sarajevo

    2. Microsoft Confidential 2 Cilj prezentacije Vizija Osnovni pojmovi Pregled License & Software Assurance Pregled promjena u licencnom programu i prodajnom kanalu Vision licensing changes based on customer feedback Timeline what to sell now. When changes will take effect Vision licensing changes based on customer feedback Timeline what to sell now. When changes will take effect

    3. Microsoft Confidential 3 Vizija Pretplatnicki odnos sa korisnicima Evolucija prema non-perpetual licenciranju Jednostavan licencni program Integracija licenci i usluga Licencne usluge na Internetu Select and EA aligned more. Can go to Oracle write one check, why cant I do that with MS Cust confusion as to what their current install baseSelect and EA aligned more. Can go to Oracle write one check, why cant I do that with MS Cust confusion as to what their current install base

    4. Microsoft Confidential 4 Osnovni pojmovi License (L) Pravo da korisnik izvrava Microsoft softver prema pravilima navedenim u licencnom ugovoru Software Assurance (SA) Pravo na nadogradnju vezano uz Microsoft proizvod i uslugu L&SA Paket koji ukljucuje licencu i software assurance CUP,VUP,PUP Transition Period Period izmedu 10.svibnja i 1. listopada, 2001 Launch Grace period Period izmedu 1. listopada, 2001 i 31. sijecnja, 2002 Upgrade Advantage (UA) Vrsta licence koja se nudi unutar OPEN programa, a daje korisniku pravo na nadogradnju za Microsoft proizvod za koji se posjeduje licenca u periodu trajanja licencnog ugovora

    5. Microsoft Confidential 5 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 Key points: Reduced complexity of sku offerings License replaces Std, VUP, CUP, PUP, LUP and get current portion of UA The new licensing programs make purchasing simple. There is no longer a need to learn complicated qualifying rules, which differ across products, to ensure compliance. The base license replaces the standard license, version upgrade, competitive upgrade, product upgrade, and the get current portion of upgrade advantage. Common Question: Why are you taking upgrades away on October 1? In simplifying our licensing by introducing Software Assurance, we are providing customers with the ability to upgrade in one of 3 ways: Enroll in Software Assurance, through Open, Select or EA Enroll in an EA Subscription, providing non-perpetual rights Purchase standard Licenses to obtain the rights to new versions We believe we need to replace one-time upgrades with Software Assurance offerings because: One-time upgrades dont support the stronger relationship with Microsoft that our customers have asked for and are complicated Software will evolve towards software-as-a-service, which will include a more frequent upgrade cycle More and more customers are committing to using the latest Microsoft software on an ongoing basis, choosing subscription licensing as an alternative to our traditional perpetual licenses Software Assurance provides a smooth migration to software-as-a-service and protects customers investments in current software Key points: Reduced complexity of sku offerings License replaces Std, VUP, CUP, PUP, LUP and get current portion of UA The new licensing programs make purchasing simple. There is no longer a need to learn complicated qualifying rules, which differ across products, to ensure compliance. The base license replaces the standard license, version upgrade, competitive upgrade, product upgrade, and the get current portion of upgrade advantage. Common Question: Why are you taking upgrades away on October 1? In simplifying our licensing by introducing Software Assurance, we are providing customers with the ability to upgrade in one of 3 ways: Enroll in Software Assurance, through Open, Select or EA Enroll in an EA Subscription, providing non-perpetual rights Purchase standard Licenses to obtain the rights to new versions We believe we need to replace one-time upgrades with Software Assurance offerings because: One-time upgrades dont support the stronger relationship with Microsoft that our customers have asked for and are complicated Software will evolve towards software-as-a-service, which will include a more frequent upgrade cycle More and more customers are committing to using the latest Microsoft software on an ongoing basis, choosing subscription licensing as an alternative to our traditional perpetual licenses Software Assurance provides a smooth migration to software-as-a-service and protects customers investments in current software

    6. Microsoft Confidential 6 Software Assurance Overview Provides upgrades and updates through enrollment term After 1.02.2002 Initial SA purchase MUST be purchased with License License & Software Assurance Package Available separately at time of renewal or for OEM/FPP Price reflects remaining years of term Annual payments Key points: Software assurance is like maintenance provides software updates and upgrades through term Annuity model: License is the ticket into the annuity never have to re-buy license if you keep your SA active Only available at time of purchasing license (exceptions discussed later) Pro-rated pricing only pay for years remaining in term (specifics re: timing discussed later basic message: always reflects remaining years, but I can buy L&SA in year 1, year 2 or even year 3. If a customer wants the benefits of Software Assurance, they have to add it at the time of purchase of the license. In other words, a customer could not purchase the license, and a year later enroll it in Software Assurance. The benefits of software assurance will last for the remainder of their enrollment term, and is priced accordingly. Stay current Bus analogy you buy a ticket to get on the bus, you can ride all day long. If you get off the bus and want to get back on, you need to buy another ticket. Will be able to pay in annual payments or can choose to pay up front. We will talk about it more later, but Select is moving toward a 3 year program. Open is still 2 years. Key points: Software assurance is like maintenance provides software updates and upgrades through term Annuity model: License is the ticket into the annuity never have to re-buy license if you keep your SA active Only available at time of purchasing license (exceptions discussed later) Pro-rated pricing only pay for years remaining in term (specifics re: timing discussed later basic message: always reflects remaining years, but I can buy L&SA in year 1, year 2 or even year 3. If a customer wants the benefits of Software Assurance, they have to add it at the time of purchase of the license. In other words, a customer could not purchase the license, and a year later enroll it in Software Assurance. The benefits of software assurance will last for the remainder of their enrollment term, and is priced accordingly. Stay current Bus analogy you buy a ticket to get on the bus, you can ride all day long. If you get off the bus and want to get back on, you need to buy another ticket. Will be able to pay in annual payments or can choose to pay up front. We will talk about it more later, but Select is moving toward a 3 year program. Open is still 2 years.

    7. Microsoft Confidential 7 Benefits of Software Assurance Model Increased simplicity and ease of administration License offerings simplified Easy to determine upgrade eligibility Licensing Web services for license management and tracking Greater predictability and controllability Fixed annual payments Amortized License & Software Assurance Package Fair price to value Software Assurance cost is 29% percent of new license price for Applications and OS, 25% for servers. Choice Traditional (perpetual) or subscription (non-perpetual) rights; available on a per-PC, enterprise-wide or per-pool basis Assurance of latest technology from Microsoft Access to all upgrades and feature enhancements Key points: Removal of upgrades is obviously going to be a takeaway for some but it also has the benefit of being simpler. Not easy or simple but easier and simpler. Predictable payments and control over software expenditures Fair price, and a model thats easy to understand Why are we getting rid of upgrades? In simplifying our licensing by introducing Software Assurance, we are providing customers with the ability to upgrade in one of 3 ways: Enroll in Software Assurance, through Open, Select or EA Enroll in an EA Subscription, providing non-perpetual rights Purchase standard Licenses to obtain the rights to new versions We believe we need to replace one-time upgrades with Software Assurance offerings because: One-time upgrades dont support the stronger relationship with Microsoft that our customers have asked for and are complicated Software will evolve towards software-as-a-service, which will include a more frequent upgrade cycle More and more customers are committing to using the latest Microsoft software on an ongoing basis, choosing subscription licensing as an alternative to our traditional perpetual licenses Software Assurance provides a smooth migration to software-as-a-service and protects customers investments in current Key points: Removal of upgrades is obviously going to be a takeaway for some but it also has the benefit of being simpler. Not easy or simple but easier and simpler. Predictable payments and control over software expenditures Fair price, and a model thats easy to understand Why are we getting rid of upgrades? In simplifying our licensing by introducing Software Assurance, we are providing customers with the ability to upgrade in one of 3 ways: Enroll in Software Assurance, through Open, Select or EA Enroll in an EA Subscription, providing non-perpetual rights Purchase standard Licenses to obtain the rights to new versions We believe we need to replace one-time upgrades with Software Assurance offerings because: One-time upgrades dont support the stronger relationship with Microsoft that our customers have asked for and are complicated Software will evolve towards software-as-a-service, which will include a more frequent upgrade cycle More and more customers are committing to using the latest Microsoft software on an ongoing basis, choosing subscription licensing as an alternative to our traditional perpetual licenses Software Assurance provides a smooth migration to software-as-a-service and protects customers investments in current

    8. Microsoft Confidential 8 Software Assurance Upgrade Advantage Can purchase with any previous version of same product Grants upgrade to current version Rights to upgrades that come out during agreement term Software Assurance Must have current version product Rights to upgrades that come out during agreement term Must purchase with L Systems/servers: can purchase SA within 90 days of buying FPP or OEM license Office: FPP, OEM licenses not eligible for SA If lapse in SA coverage, must buy L or L&SA to upgrade

    9. Microsoft Confidential 9 Software Assurance Pricing 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 Key points: SA is based on percentage of license price. Annual annuity, so its presented as an annual price Apps & systems 29% L; Servers 25% L Different percentages: customers have a tendency to upgrade less frequently with servers, and we release upgrades for those servers less frequently as well. So the relative potential value of the maintenance for servers, in terms of number of upgrades, is lower. And we wanted to give our customers the benefit of that in our pricing model. Key points: SA is based on percentage of license price. Annual annuity, so its presented as an annual price Apps & systems 29% L; Servers 25% L Different percentages: customers have a tendency to upgrade less frequently with servers, and we release upgrades for those servers less frequently as well. So the relative potential value of the maintenance for servers, in terms of number of upgrades, is lower. And we wanted to give our customers the benefit of that in our pricing model.

    10. Microsoft Confidential 10 Software Assurance Points Open Volume SA points = of L per year enrolled Add up License & SA points for remaining years of term Round up, if needed Points earned at time of order Points Example: Office OPEN Volume License License = 2 point 1 year SA = License = 1 2-year term of Software Assurance = 2 points Total L & SA = 4 Rounded up = 4 Total L&SA Package Points = 4 points Key points: ? Relevant to Select & Open Volume Licenses have a point value SA has a point value its an annual benefit, so its calculate as an annual point value as well. SA points = L points. Sum all the points together Round up to nearest whole number Key points: ? Relevant to Select & Open Volume Licenses have a point value SA has a point value its an annual benefit, so its calculate as an annual point value as well. SA points = L points. Sum all the points together Round up to nearest whole number

    11. Microsoft Confidential 11 Offering Availability Key points: Reference slide Standalone license is offered in Open, Select, OEM, and FPP SA is available outside of the L&SA Package only for customers at the end of their L&SA Package term, or for customers enrolling an OEM or retail product in SA. SA and the L&SA package arent available in retail stores or from an OEM its a volume licensing purchase, providing benefits to volume licensing products. But you can take most OEM and Retail products, and purchase SA for those products through Select or Open again, provided you do so within 90 days of the OEM/FPP license purchase. Key points: Reference slide Standalone license is offered in Open, Select, OEM, and FPP SA is available outside of the L&SA Package only for customers at the end of their L&SA Package term, or for customers enrolling an OEM or retail product in SA. SA and the L&SA package arent available in retail stores or from an OEM its a volume licensing purchase, providing benefits to volume licensing products. But you can take most OEM and Retail products, and purchase SA for those products through Select or Open again, provided you do so within 90 days of the OEM/FPP license purchase.

    12. Microsoft Confidential 12 Volume Licensing Programs Summary

    13. Microsoft Confidential 13 Open License 5.0 versus 6.0 Open License 5.0 Term 2 year term License Offerings Std, PUP, VUP, CUP, UA Initial Order Minimums Business: 5 licenses Volume: 150 points Payments Upfront only Open License 6.0 Term 2 year term License Offerings L, SA, L&SA Package Initial Order Minimums Business: 5 licenses Volume: 150 points Payments Upfront only Key points: Primary change relative to 5.0 is the change to the SKUs associated with Software Assurance. As with Select, the License, Software Assurance, and License and Software Assurance Package replace the Standard, PUP, VUP, CUP, and UA SKUs. The next slide shows the detail of the pricing and payments associated with these purchases Academic, Charity, and Government Open Same as Corporate except: Price Level Single Level, comparable to Open Business Key points: Primary change relative to 5.0 is the change to the SKUs associated with Software Assurance. As with Select, the License, Software Assurance, and License and Software Assurance Package replace the Standard, PUP, VUP, CUP, and UA SKUs. The next slide shows the detail of the pricing and payments associated with these purchases Academic, Charity, and Government Open Same as Corporate except: Price Level Single Level, comparable to Open Business

    14. Microsoft Confidential 14 OSL: Core CAL replaces BO CAL 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 a retail box Positioning Statement Core CAL provides a convenient way for enterprise customers to license their desktops for intranet, networking, and collaboration. 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. Benefits of Core CAL Customer Benefits Convenience Easy way to license basic components across all desktops Reduces burden among IT to count the number of client licenses to access each individual server software. By removing SQL, HIS and ISA: not overpaying for access rights Pricing Package discount about 5% less than licensing individual CALs Volume Licensing offerings Enterprise Agreements Core CAL replaces BackOffice CAL SQL Server available as Additional Product (Server/CAL or per proc) Select and Open License Core CAL or Individual CALs (Exchange CAL, SMS CAL, Windows CAL, SharePoint Portal Server CAL) Key points: Primary benefit is a convenient way to buy only slight discount over the sum of the parts Replaces BO CAL in EA; SQL offered as additional product Also available in Select and Open Most customers were unhappy with SQL in BackOffice because they felt they were paying for it as a processor as well as a CAL. This eliminates any double paying. Other customers were unhappy because they were paying for SQL and they did not even use it. About 30% of all customers used SQL. 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. Benefits of Core CAL Customer Benefits Convenience Easy way to license basic components across all desktops Reduces burden among IT to count the number of client licenses to access each individual server software. By removing SQL, HIS and ISA: not overpaying for access rights Pricing Package discount about 5% less than licensing individual CALs Volume Licensing offerings Enterprise Agreements Core CAL replaces BackOffice CAL SQL Server available as Additional Product (Server/CAL or per proc) Select and Open License Core CAL or Individual CALs (Exchange CAL, SMS CAL, Windows CAL, SharePoint Portal Server CAL) Key points: Primary benefit is a convenient way to buy only slight discount over the sum of the parts Replaces BO CAL in EA; SQL offered as additional product Also available in Select and Open Most customers were unhappy with SQL in BackOffice because they felt they were paying for it as a processor as well as a CAL. This eliminates any double paying. Other customers were unhappy because they were paying for SQL and they did not even use it. About 30% of all customers used SQL.

    15. Microsoft Confidential 15 Knowledge Challenge License and Software Assurance replace what? Standard, VUP, CUP, PUP, LUP, UA SA is what % of License per year, for Servers? SA is 25% of Server License per year SA is what % of License per year, for Applications & Systems? SA is 29% of Application and System License per year How long do the SA benefits last? To the end of the enrollment term When can a customer purchase SA? At the time of purchasing the License or renewal of SA How are Software Assurance points calculated? Annual SA points are the License points

    16. Microsoft Confidential 16 Actions for Microsoft and Channel Key points: The focus of these slides is on mapping the appropriate sales opportunity to the customer scenario. The transition and launch grace periods provide opportunities for the customer, as well as for Microsoft and our channel partners. The basic message behind all of these slides is Sell UA and EAs now, sell Software Assurance beginning October 1. Key points: Transition period: May 10 Sept 30 time to get current Grace launch period: Oct 1 Jan 31 time to enroll installed base in SA Steady state: begins Feb 1 can only buy SA if renewing existing SA or as part of L&SA purchase There are 3 key time periods that are important to be aware of: The May through September Transition Period provides time for customers to be educated, make decisions, and execute on purchase actions necessary to transition to the new programs and annuity model. This is the final period of time for the availability of VUP,s CUP, PUP, and UA offerings . Actions taken during this period will help ensure the most cost effective transition to he annuity model. This is the time to get customers current on the latest versions of our software. The October through January Launch Grace Period is when the new programs are launched, the new SKUs are available, and the old SKUs (VUPs,PUPs,CUPs,UA) are not. This is the last time that a customer can purchase SA for their installed base of current products. February 1 begins the period of what we call steady state the grace launch period is over, so now the only time a licensing customer can purchase SA is as part of the License & Software Assurance Package or upon renewing existing SA. Key points: The focus of these slides is on mapping the appropriate sales opportunity to the customer scenario. The transition and launch grace periods provide opportunities for the customer, as well as for Microsoft and our channel partners. The basic message behind all of these slides is Sell UA and EAs now, sell Software Assurance beginning October 1. Key points: Transition period: May 10 Sept 30 time to get current Grace launch period: Oct 1 Jan 31 time to enroll installed base in SA Steady state: begins Feb 1 can only buy SA if renewing existing SA or as part of L&SA purchase There are 3 key time periods that are important to be aware of: The May through September Transition Period provides time for customers to be educated, make decisions, and execute on purchase actions necessary to transition to the new programs and annuity model. This is the final period of time for the availability of VUP,s CUP, PUP, and UA offerings . Actions taken during this period will help ensure the most cost effective transition to he annuity model. This is the time to get customers current on the latest versions of our software. The October through January Launch Grace Period is when the new programs are launched, the new SKUs are available, and the old SKUs (VUPs,PUPs,CUPs,UA) are not. This is the last time that a customer can purchase SA for their installed base of current products. February 1 begins the period of what we call steady state the grace launch period is over, so now the only time a licensing customer can purchase SA is as part of the License & Software Assurance Package or upon renewing existing SA.

    17. Microsoft Confidential 17 Get Current Key points: Current license is one that qualifies as the latest version of a product Its important to understand the definition of current vs. non-current as these concepts form the basis of the transition scenarios that move a customer from the old to new model. Current licenses refer to the latest version of the product listed on the 10/1 price list. For new products releasing between our announce and the end of the launch grace period, we will treat the new version and the previous one as current. So for example, if a new version of Exchange were to become available on the 11/1 price list, both the versions of Exchange listed on the 10/1 and 11/1 price lists would be considered current. A list of products to be considered current on the 10/1 price list is included at the end of the slide deck. We will also make a distinction between new purchases made after the launch of this program, and purchases made prior to that what we are calling the installed base. ON Feb 1st launch grace period ends. Oct 1 Feb 1 they can buy SA only or package L&SA On Feb 1 we will not sell SA alone. If they do not have it, after Feb 1, they will need to buy new license with their SA if they want it. Key points: Current license is one that qualifies as the latest version of a product Its important to understand the definition of current vs. non-current as these concepts form the basis of the transition scenarios that move a customer from the old to new model. Current licenses refer to the latest version of the product listed on the 10/1 price list. For new products releasing between our announce and the end of the launch grace period, we will treat the new version and the previous one as current. So for example, if a new version of Exchange were to become available on the 11/1 price list, both the versions of Exchange listed on the 10/1 and 11/1 price lists would be considered current. A list of products to be considered current on the 10/1 price list is included at the end of the slide deck. We will also make a distinction between new purchases made after the launch of this program, and purchases made prior to that what we are calling the installed base. ON Feb 1st launch grace period ends. Oct 1 Feb 1 they can buy SA only or package L&SA On Feb 1 we will not sell SA alone. If they do not have it, after Feb 1, they will need to buy new license with their SA if they want it.

    18. Microsoft Confidential 18 Sales Opportunities Changes make Upgrade Advantage very attractive option Grandfathers customer into SA Microsoft Office 97 customers BIG OPPORTUNITY Customer/Partner UA = VUP + 5%

    19. Microsoft Confidential 19 UA Transition Open Grandfathered into Software Assurance 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 In steady state, eligible for Software Assurance renewals Will benefit from starting new Agreement or Authorization number Office Pro UA pricing will be better than Office Pro VUP pricing for the period May 1 - June 30. Customers buying UA will get two years of coverage, plus they get grandfathered into L & SAall for less than a VUP. Only Office XP purchased through Volume Licensing will be eligible to enroll in SA. Office OEM and FPP will not be eligible after Oct. 1. Key points: Select and Open customers should purchase UA and/or VUPs now (transition period) Lets start by looking at the Select and Open customers with non-current licenses. These customers have the most decisions to make, and have the ability to stagger some of their purchase activity over the transition and Launch grace periods. They can decide to take the easy migration path by simply purchasing Upgrade Advantage during this transition period, and those licenses will automatically be enrolled in Software Assurance. They can also choose to purchase VUPs during the transition period, with the option to enroll those current licenses in Software Assurance during the Launch Grace Period. If they do nothing during these periods, then decide to go to the Software Assurance annuity model, theyll be required to purchase the License & Software Assurance Package. Depending on the remaining length of their agreement term, they may want to consider signing a new Select agreement or opening a new Open Auth number to get the maximum value from their Software Assurance term. So key things to note here: Although existing agreements are not impacted, purchase options have changed dramatically Non-current customers who choose the Software Assurance annuity model have a streamlined approach for future purchases Customers with Select agreements have the option to finance the cost of new License & Software Assurance packages Select customers have the option to get Software Assurance on 100% of their new licenses, and get the associated benefits, including eligibility for Gold and Platinum Premier Support. Office Retail & OEM will not be available to enroll in SA. This decision was made with the Office team, and based on feedback from LEs and VL champs who attended the training in April. Only Office purchased through VL will be eligibile to enroll in SA.In the SME Open space, again, we expect virtually no Open customers to purchase SA (legally) except to renew UA, as SApricing in Open is more expensive than ad hoc full License purchases for virtually allupgrade scenarios. Customers who have purchased Office OEM or Retail can enroll those in UA prior to October and then get have their UA grandfathered into SA. Key points: Select and Open customers should purchase UA and/or VUPs now (transition period) Lets start by looking at the Select and Open customers with non-current licenses. These customers have the most decisions to make, and have the ability to stagger some of their purchase activity over the transition and Launch grace periods. They can decide to take the easy migration path by simply purchasing Upgrade Advantage during this transition period, and those licenses will automatically be enrolled in Software Assurance. They can also choose to purchase VUPs during the transition period, with the option to enroll those current licenses in Software Assurance during the Launch Grace Period. If they do nothing during these periods, then decide to go to the Software Assurance annuity model, theyll be required to purchase the License & Software Assurance Package. Depending on the remaining length of their agreement term, they may want to consider signing a new Select agreement or opening a new Open Auth number to get the maximum value from their Software Assurance term. So key things to note here: Although existing agreements are not impacted, purchase options have changed dramatically Non-current customers who choose the Software Assurance annuity model have a streamlined approach for future purchases Customers with Select agreements have the option to finance the cost of new License & Software Assurance packages Select customers have the option to get Software Assurance on 100% of their new licenses, and get the associated benefits, including eligibility for Gold and Platinum Premier Support. Office Retail & OEM will not be available to enroll in SA. This decision was made with the Office team, and based on feedback from LEs and VL champs who attended the training in April. Only Office purchased through VL will be eligibile to enroll in SA.In the SME Open space, again, we expect virtually no Open customers to purchase SA (legally) except to renew UA, as SApricing in Open is more expensive than ad hoc full License purchases for virtually allupgrade scenarios. Customers who have purchased Office OEM or Retail can enroll those in UA prior to October and then get have their UA grandfathered into SA.

    20. Microsoft Confidential 20 VUP Transition Open In Steady State, only eligible for Software Assurance renewals IF Purchase Software Assurance in Launch Grace Period Higher priced option to enroll in Software Assurance Lower upfront cost Short-term budget benefit If Customer still not bought into annuity concept, sell VUP Key points: * Customers who are already current, but dont have UA, can purchase SA during the launch grace period. A Select or Open customer who already has the latest versions of our products, or chooses to get them during this transition period, but doesnt have or want UA, they should purchase software assurance during the launch grace period. Simple. Key points: * Customers who are already current, but dont have UA, can purchase SA during the launch grace period. A Select or Open customer who already has the latest versions of our products, or chooses to get them during this transition period, but doesnt have or want UA, they should purchase software assurance during the launch grace period. Simple.

    21. Microsoft Confidential 21 OSL Transition OSL 1.0/OSL pilot Grandfathered into Software Assurance No purchase necessary in Launch Period In steady state, eligible for License + Software Assurance renewals via buy-out

    22. Microsoft Confidential 22 Timing & Transition Key points: Transition period: May 10 Sept 30 time to get current Grace launch period: Oct 1 Jan 31 time to enroll installed base in SA Steady state: begins Feb 1 can only buy SA if renewing existing SA or as part of L&SA purchase There are 3 key time periods that are important to be aware of: The May through September Transition Period provides time for customers to be educated, make decisions, and execute on purchase actions necessary to transition to the new programs and annuity model. This is the final period of time for the availability of VUP,s CUP, PUP, and UA offerings . Actions taken during this period will help ensure the most cost effective transition to he annuity model. This is the time to get customers current on the latest versions of our software. The October through January Launch Grace Period is when the new programs are launched, the new SKUs are available, and the old SKUs (VUPs,PUPs,CUPs,UA) are not. This is the last time that a customer can purchase SA for their installed base of current products. February 1 begins the period of what we call steady state the grace launch period is over, so now the only time a licensing customer can purchase SA is as part of the License & Software Assurance Package or upon renewing existing SA. Key points: Transition period: May 10 Sept 30 time to get current Grace launch period: Oct 1 Jan 31 time to enroll installed base in SA Steady state: begins Feb 1 can only buy SA if renewing existing SA or as part of L&SA purchase There are 3 key time periods that are important to be aware of: The May through September Transition Period provides time for customers to be educated, make decisions, and execute on purchase actions necessary to transition to the new programs and annuity model. This is the final period of time for the availability of VUP,s CUP, PUP, and UA offerings . Actions taken during this period will help ensure the most cost effective transition to he annuity model. This is the time to get customers current on the latest versions of our software. The October through January Launch Grace Period is when the new programs are launched, the new SKUs are available, and the old SKUs (VUPs,PUPs,CUPs,UA) are not. This is the last time that a customer can purchase SA for their installed base of current products. February 1 begins the period of what we call steady state the grace launch period is over, so now the only time a licensing customer can purchase SA is as part of the License & Software Assurance Package or upon renewing existing SA.

    23. Microsoft Confidential 23 Zakljucak Korisnik mora kupiti Licencu i Software Assurance nakon 1. listopada, 2001 kada starta novi program. Current korisnicima omoguceno je da dokupe samo Software Assurance (uciniti korisnike Current) Upgrade Advantage korisnici automatski se nadograduju u Software Assurance Upgrade Advantage odlicna prilika za nadogradnju i utedu u tranzicijskom periodu

    24. Microsoft Confidential 24 OPEN Customer Example OfficeXP Pro

    25. Microsoft Confidential 25 Pitanja?

    26. Microsoft Confidential 26 OSL prva iskustva Kako naruciti OSL ugovor potpisuje samo korisnik orginal + elektronski oblik potpisanog ugovora dostaviti u ACORD ACORD alje ugovor u Irsku na proceduru, a MS Centar korisniku alje medije za instalaciju cca 7 dana nakon primitka ugovora MS Irska alje Acceptence u ACORD cca 14 dana nakon primitka ugovora od prodavaca ACORD ispisuje racun i isporucuje Acceptence So with that are there any questions and if not well, we want to thank you for coming here today and we do appreciate you visiting with us. So with that are there any questions and if not well, we want to thank you for coming here today and we do appreciate you visiting with us.

    27. Microsoft Confidential 27 Novosti novi OEM katalog produkata biti ce gotov krajem tjedna i spreman za isporuku od 01.06.2001 cijena Engleskog Officea biti ce 7% veca od lokalizirane verzije. Novi materijali za partnere: PARTNER GUIDE So with that are there any questions and if not well, we want to thank you for coming here today and we do appreciate you visiting with us. So with that are there any questions and if not well, we want to thank you for coming here today and we do appreciate you visiting with us.

    28. Microsoft Confidential 28 Novosti Retail Office XP je na lageru i spreman za isporuku. U OLP-u je Office Pro XP dobio dodatak ENTERPRISE u naziv MSDN kroz OLP za svakih 5 licenci mogucnost aktiviranja pretplate i dobivanja jednog kompleta medija So with that are there any questions and if not well, we want to thank you for coming here today and we do appreciate you visiting with us. So with that are there any questions and if not well, we want to thank you for coming here today and we do appreciate you visiting with us.

    29. Microsoft Confidential 29 Akcije Small business server 2000 u OEM-u i Retail-u cijena ista kao za Windows 2000 server od 01.06.2001 do 01.09.2001 Prelazni period prema novom licenciranju cijena UA 5% iznad cijena VUP naglasak na OSL i UA do 30.09.2001 So with that are there any questions and if not well, we want to thank you for coming here today and we do appreciate you visiting with us. So with that are there any questions and if not well, we want to thank you for coming here today and we do appreciate you visiting with us.

    30. Microsoft Confidential 30 Akcije Office XP jezicna garancija za kupce retail verzije od 01.06.2001 do 01.09.2001 So with that are there any questions and if not well, we want to thank you for coming here today and we do appreciate you visiting with us. So with that are there any questions and if not well, we want to thank you for coming here today and we do appreciate you visiting with us.

    31. Microsoft Confidential 31 kolovanja Za novi model licenciranja MSS tecaj gda. Sanja Grcic Sting informatika termini ce biti objavljeni naknadno So with that are there any questions and if not well, we want to thank you for coming here today and we do appreciate you visiting with us. So with that are there any questions and if not well, we want to thank you for coming here today and we do appreciate you visiting with us.

    32. Microsoft Confidential 32 Pitanja i odgovori So with that are there any questions and if not well, we want to thank you for coming here today and we do appreciate you visiting with us. So with that are there any questions and if not well, we want to thank you for coming here today and we do appreciate you visiting with us.

    33. Microsoft Confidential 33 Other programs Retail and OEM

    34. Microsoft Confidential 34 Retail Full Packaged Product Option to enroll retail server, systems and developer tools licenses in SA 90 days from time of retail license purchase SA only available through Open or Select Applications Keeping upgrades in retail Office XP: different version in retail and licensing Cannot enroll Applications in SA Increasingly differentiating products in volume licensing and retail to better address unique customer needs SA only delivers upgrades for versions sold through volume licensing Servers Removing upgrades October 1, 2001 (except Small Business Server) Systems Keeping upgrades higher price than in volume licensing Developer Tools Keeping upgrades higher price than in volume licensing Key points: can enroll server and system licenses purchased through retail in SA through Select or Open. Applications are more controversial: There will still be upgrades on most applications in retail. There are increasingly different product offerings in retail and licensing. Eg: Office XP (deployment tools; activation wizard) Cant enroll retail apps in SA Simultaneous retail channel changes 10/1: Office XP in retail is different product than in Licensing Cannot add SA to retail Office XP or Office SBE VUPs and PUPs for Servers (except for SBS) eliminatedKey points: can enroll server and system licenses purchased through retail in SA through Select or Open. Applications are more controversial: There will still be upgrades on most applications in retail. There are increasingly different product offerings in retail and licensing. Eg: Office XP (deployment tools; activation wizard) Cant enroll retail apps in SA Simultaneous retail channel changes 10/1: Office XP in retail is different product than in Licensing Cannot add SA to retail Office XP or Office SBE VUPs and PUPs for Servers (except for SBS) eliminated

    35. Microsoft Confidential 35 OEM Option to enroll OEM licenses in SA Available for servers & systems purchased through the OEM channel, that are offered through Volume Licensing Cannot enroll Application licenses purchased through the OEM channel in SA How? 90 days from purchase date of OEM License SA only available through Open or Select Key points: Can enroll OEM in SA through Select or Open 90 day SA Purchase Period Exceptions: no Application + only servers & systems that are offered through Volume Licensing (so no SBS for instance)Key points: Can enroll OEM in SA through Select or Open 90 day SA Purchase Period Exceptions: no Application + only servers & systems that are offered through Volume Licensing (so no SBS for instance)

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