Selling the value!

Craig Martyn

Licensing Specialist

Agenda

Which agreement is the right agreement?

Pricing waterfall & Platform discounts.

Enhanced Enterprise Desktop.

Microsoft’s Product Lifecycle.

SA Benefits.

Post wave 12 EA Renewals.

Questions & Wrap up

Which agreement is best? Ask the customer!

Start

Use Rather Than

Own?

EA Subscription

SelectEA

Perpetual

Get CurrentStay Current?

EnterpriseWide?

Yes

No

No – “L” only

No – “L/SA”

Yes

Yes

Which Agreement is best? Ask the customer!

• Ask Business questions, not licensing questions.• How does your Customer like to do business. • Try to understand the customer’s pain points.• Explain how your proposed licensing solution best

meets the customer’s needs.

Remember:

“Prescription without diagnosis is mal-practice”!

5

TransactionalIncorporates program and volume discounts – Open NL to Select A 3.8%, to Select B 10.4%, to Select C 18%, and to Select D 24%

CommittedProvides 15% (10% in OV) programmatic discount for further company-wide volume purchases in EA

Committed Platform15% to share the cost savings related to standardization

Pricing Waterfall - Example

Enterprise Discount on LSA = 15%

Enterprise Discount on SA = 5%

Platform Discount on LSA = 15%

Platform Discount on SA = 5%

Select Level A (assume 10% LAR margin)

EA Level A (Direct Corporate)

250 Seats (OS shouldn’t be at Select level A)

Pro Desktop Value

Pro Desktop Components Ent Plat Select EWD Plat DiscOffice Std 249.55 211.61 299.013 17% 29%

Office Pro 323.29 274.86 387.97 17% 29%OS 99.56 84.63 138.09 28% 39%Core CAL 124.62 105.87 149.6 17% 29%

547.47 465.36 675.66 19% 31%

Desktop Pro 465.22Office Pro + Core CAL 447.91

17.31 (Cost to add the OS)

What does it cost to take out the OS?

250 x $17.31 x 3 = $12,982.50

Less loss of SA Benefits;• 10 Day Training Vouchers ($10,000)

• eLearning for Windows ($15,000)

• Extended Hot Fix Support ($150,000)

• Windows Fundamentals (Priceless!)

• Win PE for XP (Priceless!)

• Windows Vista Enterprise (Priceless!)

(BitLocker, MUI, SUA, 4 Virtual OS, Ultimate)

• Eligibility for MDOP

(SoftGrid, Assetmetrix, Group Policy, Recovery)

Loss of Platform Discount!!!!!

Core CAL Value

Core CAL Components Ent Plat Select EWD Plat DiscWindows CAL 18.22 14.81 19.88 8% 26%Exchange Std CAL 42.19 34.94 45.97 8% 24%SMS CML 26.06 20.93 28.00 7% 25%SharePoint Std CAL 59.06 35.94 64.35 8% 44%

145.53 106.62 158.2 8% 33%

Core CAL 124.62 105.87 149.6 17% 29%

eCAL Suite Value

eCAL Suite Components Addtnl Plat SelectOffice Comm Server Std CAL 22.31 6.45 23.21Office Comm Server Ent CAL 68.25 19.72 ?Exchange Ent CAL 45.56 17.51 46.74SharePoint Ent CAL 55.31 15.98 56.63OML 28.69 8.29 ?Windows RMS CAL 27.00 7.80 27.54Forefront Security Suite 59.40 34.33 ?

306.52 110.0864.09%

eCAL Suite Step Up Ent PlateCAL Suite Step Up 126.68 107.87Core CAL 124.62 105.87

251.30 213.74

Ent Wide Plat Select EWD Plat DisceCAL Suite 251.30 213.74 272.52 8% 22%

Office SA Step Up Value

Office Pro+ SA Step Up SelectAccess na na 170.46Communicator na na 24.49Publisher na na 118.61InfoPath na na 150.33RMS & ECM Support inc inc inc

463.89

Ent Wide Plat Select EWD Plat DiscOffice Pro+ SA Step Up 71.62 60.87 80.87 11% 25%

Office Ent SA Step Up Addtnl Plat SelectGroove 109.12 na 111.34 2%OneNote 58.87 na 54.78 -7%

167.99 166.122

Ent Pro Plat Select Ent Plat DiscOffice Ent SA Step Up 71.62 60.87 166.122 57% 63%

Enhanced Enterprise Desktop

Windows Server CAL

Office Exchange Server Std CAL

Office SharePoint Server Std CAL

Systems Management Server CAL

Core CAL Suite

Office Communications Server Std CAL

Office SharePoint Enterprise CAL

Office Exchange Enterprise CAL

Windows Rights Mgmt Services CAL

Microsoft Operations Mgr Client OML

Office Communications Server Ent CAL

Forefront Security Suite

OutlookWord ExcelPowerPoint

Integrated Enterprise Content Mgmt

Integrated Electronic Forms

Information Rights & Policy

Access

Publisher

Communicator

OneNote

Groove

Office Professional Plus 2007

Four Virtual Operating Systems

Windows BitLocker Drive Encryption

Multi-lingual User Interface (MUI)

Subsystem for Unix-Based Apps (SUA)

Windows Vista Business

Application Virtualization & Streaming

Recovery & Diagnostic Toolset

Advanced Group Policy Management

SW Asset Inventory Services

Windows Vista Enterprise

MS Desktop Optimization Pack for SA

Opti

miz

ed W

indo

ws

Clie

nt S

A

+

SQL Server CAL (Option)

Microsoft’s Product Support Lifecycle

Length of Support Guarantee: Microsoft guarantees a minimum of 10 years of support for Business & Developer Software

Mainstream Support: Incident Support (no-charge incident support, paid incident support, support charged on an hourly basis, support for warranty claims) Security update support The ability to request non-security hotfixes

Extended Support: All paid incident support options Security update support at no additional cost Non-security related hotfix support requires a separate Extended Hotfix Support contract to be purchased. Per-fix fees also apply. Microsoft will not accept requests for warranty support, design changes, or new features during the Extended support phase.

Evolving To Meet Customer NeedsEvolving To Meet Customer Needs

March 2006March 2006

Launched a competitive traditional maintenance Launched a competitive traditional maintenance offer including Spread Payments and New Version offer including Spread Payments and New Version Rights with a vision for future valueRights with a vision for future value

20012001

Announcing new benefits to address value and Announcing new benefits to address value and satisfactionsatisfactionfeedback and differentiate the maintenance offer. feedback and differentiate the maintenance offer. Training, Support, Home Use, EPP, eLearning, Training, Support, Home Use, EPP, eLearning, TechNet, WinPE, CER, Disaster Recovery, ESLP...TechNet, WinPE, CER, Disaster Recovery, ESLP...

SeptemberSeptember20032003

BenefitBenefitFlexibilityFlexibility

Major enhancements focus Major enhancements focus on customer value with biggeston customer value with biggestsoftware release on horizon.software release on horizon.

SA Benefits

New Version New Version RightsRights

Spread PaymentsSpread Payments

Windows Vista Windows Vista Enterprise Enterprise

4 x Virtual OS 4 x Virtual OS

Training – Enhanced Training – Enhanced for Enterprise for Enterprise Customers in 2006Customers in 2006

eLearningeLearning

Home Use ProgramHome Use Program

Employee Purchase Employee Purchase ProgramProgram

Enterprise Source Enterprise Source License ProgramLicense Program

Desktop Deployment Desktop Deployment Planning ServicesPlanning Services

Information Work Information Work Solution ServicesSolution Services

Windows Pre-Windows Pre-Installation Installation EnvironmentEnvironment

Extended Hotfix Extended Hotfix Support 2006Support 2006

Windows Windows Fundamentals for Fundamentals for Legacy PCsLegacy PCs

24x7 Problem 24x7 Problem Resolution SupportResolution Support

TechNet PlusTechNet Plus

Cold Back Up for Disaster Cold Back Up for Disaster RecoveryRecovery

Corporate Error ReportingCorporate Error Reporting

What do the analysts say about SA?

•Gartner Report (In your bag)•IDC•Yankee Group Report•Forrester RIO Tool (MS Website)•Case studies (CSR)

•Make sure you get SA Benefits activated.

•Research shows that renewal rates for Customers who have deployed and used at least one SA Benefit are greater than 90%

Why should I renew my EA?

Post launch renewals.• The Future is bright!

• The Future starts today!

• Economics favour renewal!

More to come in the next few months

Thank You

Microsoft provides this material solely for informational and marketing purposes.  Customers should refer to their agreements for a full understanding of their rights and obligations under Microsoft’s Volume Licensing programs. Microsoft software is licensed, not sold.  The value and benefit gained through use of Microsoft software and services may vary by customer.  Customers with questions about differences between this material and the agreements should contact their reseller or Microsoft account manager.

© 2006 Microsoft Corporation.  All rights reserved.  Microsoft is a registered trademark of Microsoft Corporation in the United

States and/or other countries.