Partner Guide for Microsoft Channel Incentives:

Microsoft Fiscal Year 2012 (July 2011 to June 2012)

Worldwide Channel Incentives Team

Dear Microsoft Partner:

Thank you for your support. At the Worldwide Partner Conference in July 2011, Microsoft announced a set of incentives that will help you grow and pursue opportunities in new and competitive markets. This book contains channel incentives summaries for Microsofts Fiscal Year 2010 (FY12). We are providing you with this guide as a way to help you learn more about them. You can direct questions to your Regional Service Center.

Sincerely,

Allen Boone General Manager, Worldwide Channel Incentives Team

INCREASED
Rates after Oct 1, 2011

NEW RATES

GLOBAL

NEW!

Suites
Example: ECI

30% 20% Windows 7 MDOP 5% 5%

Windows 7 Enterprise + MDOP

10% 7% 5%

Enterprise Standard

20% 10%

Enterprise

20%

Virtualization Management Identity & Security

Standard

10%

 Application Integration Business Intelligence CRM Data Platform ERP Identity & Security ISV / Software Portals & Collaboration Server Platform System Management Virtualization

Application Integration Business Intelligence Data Platform Identity & Security Server Platform Systems Management Virtualization Desktop Identity & Security Server Platform Systems Management Virtualization

Unified Communications Gold Unified Communications Silver Communications Gold Communications Silver

Management & Virtualization

SOLUTION INCENTIVES | OCTOBER 2011
Objective
The Solution Incentives reward partners for driving sales of specific Microsoft solutions, chosen for their growth and market potential. The program creates opportunities for partners to build new sustainable revenue streams and increase their value to customers.

Microsoft Partner Use Only

Summary: Management and Virtualization Incentives

Microsoft Partner Network Competencies Active-Earned Gold status required for all partners Virtualization Systems Management Identity & Security Server Platform Data Platform Business Intelligence Application Integration

Why does Microsoft invest in Solution Incentives?

Microsoft utilizes incentives to reward partners for success in markets where we see the greatest potential for revenue and long-term growth, and activities that create customer value. Microsoft has developed Solution Incentives to align with customer priorities and give partners the opportunity to build new sustainable revenue streams. Microsoft believes our investments in these incentives, along with the current wave of product launches, drive positive business results for partners, Microsoft, and our mutual customers.
Systems Partner must have access to the following systems Term

Partner Sales Exchange (PSX) for Pipeline Mgmt & Deal Registration Channel Incentive Platform (CHIP) for Enrollment & Payment July 1, 2011 to June 30, 2012

Partner Benefits
Microsoft is offering a rich set of financial rewards that: Give partners more growth opportunities across our product offerings and customer base, Recognize partner choice in their business model, and supports profitability goals of a diverse mix of partners, Reward activities that drive revenue and customer value across the sales cycle, Are competitive with those offered by other vendors, Simplify the incentive structure for our partners, with a stronger link between incentives, MPN competencies and customer needs.

Management & Virtualization Solution Incentives

The Management & Virtualization incentives reward partners for driving sales of specific solutions. Partners create opportunities and request incentives on these opportunities. Solution incentives are customer segment and partner-type agnostic. Partners need to meet eligibility requirements and each opportunity for which incentives are requested needs to meet the criteria described in the Program Guide, to be eligible for incentives.

Customer Benefits
The introduction of solution incentives has increased partner focus on providing Microsoft solutions to critical customer challenges and greater alignment between customer needs and partner competencies and activities.

How do partners enroll for the Solution Incentives Program?

Eligible partners automatically receive an invitation from the Channel Incentives Program (CHIP), after which they can able to enroll in the program.

Products Eligible for Solution Incentives

Partners can enter opportunities that include the following products, and request incentives for the opportunities: Sales Priority
Suites

Products
SMSE SMSD ECI (allocation System Center & Forefront)* SCE SCVMM VDI SCOM SCCM SCDPM WEDM Forefront UAG

Incentives
30%

What is Partner Sales Exchange (PSX)?

PSX is the interface for partners to share and manage their Microsoft sales opportunities with their Partner Account Managers. PSX opportunity creation and related incentive requests are required for a partner to earn an incentive. PSX is globally implemented and available to partners. Contact your Partner Account Manager for further information regarding training and registration.

Virtualization

20%

What is the Channel Incentives Platform (CHIP)?

CHIP is the vehicle for partners to enroll in the Solution Incentive Program. It also provides partners with a dashboard view of their incentives and is the means to calculate and disperse incentive payments.

Management (incl. Win Embedded Device Mgmt) Identity & Security

5%

5%

*ECI Microsoft only incents for the allocated Management & Security product value Note: Microsoft reserves the right to change Incentive rates after 1/1/2012

Can partners earn incentives on Government Customer deals?

Partners in many subsidiaries may earn incentives for Government Customers, provided that they confirm in writing (through PSX), that they have advised the customer they may receive Incentive payments for Advisory Services. Details and a list of countries may be found through the Program Guide.

The minimum deal size is $5K. Partners can receive up to $50K in incentives for one deal. Incentives are based on first-year billed revenue of New and Add-On license deals. For specific eligible product SKU eligibility information, please check the Program Guide.

How do partners earn incentives?

All opportunities that are approved by the Partner Account Manager, and meet the eligibility requirements as defined in the program guide, are processed for payment. Partners can view earned and paid incentives in CHIP.

What if the Solution Partner also transacts the order?

Whether the Partner is only advising the customer, or advising and transacting, there is no difference in the solution incentives earned and paid.

How are partners paid?

Partners earn incentives on eligible transactions, and are paid 45 days after the end of month in which the incentives were earned. Payment is completed by means of electronic funds transfers (EFT).

SOLUTION INCENTIVES | OCTOBER 2011

Objective
The Solution Incentives reward partners for driving sales of specific Microsoft solutions, chosen for their growth and market potential. The program creates opportunities for partners to build new sustainable revenue streams and increase their value to customers.

Windows 7
Desktop Virtualization Systems Management Identity & Security Server Platform

Microsoft Partner Use Only

Summary: Windows 7 Incentives

Microsoft Partner Network Competencies Active-Earned Gold status required for all partners Systems Partner must have access to the following systems Term

Why does Microsoft invest in Solution Incentives?

Microsoft utilizes incentives to reward partners for success in markets where we see the greatest potential for revenue and long-term growth, and activities that create customer value. Microsoft has developed Solution Incentives to align with customer priorities and give partners the opportunity to build new sustainable revenue streams. Microsoft believes our investments in these incentives, along with the current wave of product launches, drive positive business results for partners, Microsoft, and our mutual customers.

Partner Sales Exchange (PSX) for Pipeline Mgmt & Deal Registration Channel Incentive Platform (CHIP) for Enrollment & Payment July 1, 2011 to June 30, 2012

Partner Benefits
Microsoft is offering a rich set of financial rewards that: Give partners more growth opportunities across our product offerings and customer base, Recognize partner choice in their business model, and supports profitability goals of a diverse mix of partners, Reward activities that drive revenue and customer value across the sales cycle, Are competitive with those offered by other vendors, Simplify the incentive structure for our partners, with a stronger link between incentives, MPN competencies and customer needs.

Windows 7 Solution Incentives

The Windows 7 incentives reward partners for driving sales of specific solutions. Partners create opportunities and request incentives on these opportunities. Solution incentives are customer segment and partner-type agnostic. Partners need to meet eligibility requirements and each opportunity for which incentives are requested needs to meet the criteria described in the Program Guide, to be eligible for incentives.

Customer Benefits
The introduction of solution incentives has increased partner focus on providing Microsoft solutions to critical customer challenges and greater alignment between customer needs and partner competencies and activities.

How do partners enroll for the Solution Incentives Program?

Eligible partners automatically receive an invitation from the Channel Incentives Program (CHIP), after which they can able to enroll in the program.

Products eligible for Solution Incentives

Partners can start to register opportunities that include products in the following table:

Products
Windows 7 Enterprise (requires SA) With MDOP Windows 7 Enterprise (requires SA) MDOP Standalone

What is Partner Sales Exchange (PSX)?

PSX is the interface for partners to share and manage their Microsoft sales opportunities with their Partner Account Managers. PSX opportunity creation and related incentive requests are required for a partner to earn an incentive. PSX is globally implemented and available to partners. Contact your Partner Account Manager for further information regarding training and registration.

Rate (Current)
$5/license

Rate (Nov 11)

10%

$3/license $2/license

7% 5%

What is the Channel Incentives Platform (CHIP)?

CHIP is the vehicle for partners to enroll in the Solution Incentive Program. It also provides partners with a dashboard view of their incentives and is the means to calculate and disperse incentive payments.

The minimum deal size is $10K. Partners can receive up to $50K in incentives for one deal. Incentives are based on first-year billed revenue of New and Add-On license deals with MDOP Attach licenses eligibility. SA (Windows 7 Enterprise rights) is required for eligibility for all VL Pricing Levels For specific eligible product SKU eligibility information, please check the Program Guide.

Can partners earn incentives on Government Customer deals?

Partners in many subsidiaries may earn incentives for Government Customers, provided that they confirm in writing (through PSX), that they have advised the customer they may receive Incentive payments for Advisory Services. Details and a list of countries may be found through the Program Guide.

How do partners earn incentives?

All opportunities that are approved by the Partner Account Manager, and meet the eligibility requirements as defined in the program guide, are processed for payment. Partners can view earned and paid incentives in CHIP.

What if the Solution Partner also transacts the order?

Whether the Partner is only advising the customer, or advising and transacting, there is no difference in the solution incentives earned and paid.

How are partners paid?

Partners earn incentives on eligible transactions, and are paid 45 days after the end of month in which the incentives were earned. Payment is completed by means of electronic funds transfers (EFT).

Application Platform
SOLUTION INCENTIVES | OCTOBER 2011
Objective
Solution Incentives reward partners for driving sales of specific Microsoft solutions, chosen for their growth and market potential. The program creates opportunities for partners to build new sustainable revenue streams and increase their value to customers.

Microsoft Partner Use Only

Summary: Application Platform Incentives

Microsoft Partner Network Competencies Active-Earned Gold status required for all partners
Data Platform Business Intelligence ISV/Software Application Integration Server Platform Virtualization Systems Management Identity & Security CRM ERP Portals & Collaboration

Why does Microsoft invest in Solution Incentives?

Microsoft utilizes incentives to reward partners for success in markets where we see the greatest potential for revenue and long-term growth, and activities that create customer value. Microsoft has developed Solution Incentives to align with customer priorities and give partners the opportunity to build new sustainable revenue streams. Microsoft believes our investments in these incentives, along with the current wave of product launches, drive positive business results for partners, Microsoft, and our mutual customers.

Systems Partner must have access to the following systems Term

Partner Sales Exchange (PSX) for Pipeline Mgmt & Deal Registration Channel Incentive Platform (CHIP) for Enrollment & Payment July 1, 2011 to June 30, 2012

Partner Benefits
Microsoft is offering a rich set of financial rewards that: Give partners more growth opportunities across our product offerings and customer base, Recognize partner choice in their business model, and supports profitability goals of a diverse mix of partners, Reward activities that drive revenue and customer value across the sales cycle, Are competitive with those offered by other vendors, Simplify the incentive structure for our partners, with a stronger link between incentives, MPN competencies and customer needs.

Application Platform Solution Incentives

The Application Platform incentives reward partners for driving sales of specific solutions. Partners create opportunities and request incentives on these opportunities. Solution incentives are customer segment and partner-type agnostic. Partners need to meet eligibility requirements and each opportunity for which incentives are requested needs to meet the criteria described in the Program Guide, to be eligible for incentives.

Customer Benefits
The introduction of solution incentives has increased partner focus on providing Microsoft solutions to critical customer challenges and greater alignment between customer needs and partner competencies and activities.

How do partners enroll for the Solution Incentives Program?

Eligible partners automatically receive an invitation from the Channel Incentives Program (CHIP), after which they can able to enroll in the program.

Products eligible for Solution Incentives

Partners can start to register opportunities that include products in the following table: Sales Priority
SQL Premium SQL Standard

Products
Enterprise Edition Datacenter Standard Workgroup

Incentives
20% 10%

What is Partner Sales Exchange (PSX)?

PSX is the interface for partners to share and manage their Microsoft sales opportunities with their Partner Account Managers. PSX opportunity creation and related incentive requests are required for a partner to earn an incentive. PSX is globally implemented and available to partners. Contact your Partner Account Manager for further information regarding training and registration.

The minimum deal size is $25K. Partners can receive up to $50K in incentives for one deal. Incentives are based on first-year billed revenue of New and Add-On license deals. For specific eligible product SKU eligibility information, please check the Program Guide.

What is the Channel Incentives Platform (CHIP)?

CHIP is the vehicle for partners to enroll in the Solution Incentive Program. It also provides partners with a dashboard view of their incentives and is the means to calculate and disperse incentive payments.

How do partners earn incentives?

All opportunities that are approved by the Partner Account Manager, and meet the eligibility requirements as defined in the program guide, are processed for payment. Partners can view earned and paid incentives in CHIP.

Can partners earn incentives on Government Customer deals?

Partners in many subsidiaries may earn incentives for Government Customers, provided that they confirm in writing (through PSX), that they have advised the customer they may receive Incentive payments for Advisory Services. Details and a list of countries may be found through the Program Guide.

What if the Solution Partner also transacts the order?

Whether the Partner is only advising the customer, or advising and transacting, there is no difference in the solution incentives earned and paid.

How are partners paid?

Partners earn incentives on eligible transactions, and are paid 45 days after the end of month in which the incentives were earned. Payment is completed by means of electronic funds transfers (EFT).

Microsoft Partner Use Only

SOLUTION INCENTIVES | OCTOBER 2011

Objective
The Solution Incentives reward partners for driving sales of specific Microsoft solutions, chosen for their growth and market potential. The program creates opportunities for partners to build new sustainable revenue streams and increase their value to customers.

Lync

Summary: Lync Incentives

Microsoft Partner Network Competencies
Active-Earned Gold or Silver status required for all partners Unified Communications Communications (new October 2011)

Why does Microsoft invest in Solution Incentives?

Microsoft utilizes incentives to reward partners for success in markets where we see the greatest potential for revenue and long-term growth, and activities that create customer value. Microsoft has developed Solution Incentives to align with customer priorities and give partners the opportunity to build new sustainable revenue streams. Microsoft believes our investments in these incentives, along with the current wave of product launches, drive positive business results for partners, Microsoft, and our mutual customers.

Microsoft Partner Network Gold Competencies

Require Silver or Gold in FY12; Gold required from July 1, 2012

Systems
Partner must have access to the following systems

Partner Sales Exchange (PSX) for Pipeline Mgmt & Deal Registration Channel Incentive Platform (CHIP) for Enrollment & Payment July 1, 2011 to June 30, 2012

Term

Partner Benefits
Microsoft is offering a rich set of financial rewards that: Give partners more growth opportunities across our product offerings and customer base, Recognize partner choice in their business model, and supports profitability goals of a diverse mix of partners, Reward activities that drive revenue and customer value across the sales cycle, Are competitive with those offered by other vendors, Simplify the incentive structure for our partners, with a stronger link between incentives, MPN competencies and customer needs.

Lync Solution Incentives

The Lync incentives reward partners for driving sales of specific solutions. Partners create opportunities and request incentives on these opportunities. Solution incentives are customer segment and partner-type agnostic. Partners need to meet eligibility requirements and each opportunity for which incentives are requested needs to meet the criteria described in the Program Guide, to be eligible for incentives.

Customer Benefits
The introduction of solution incentives has increased partner focus on providing Microsoft solutions to critical customer challenges and greater alignment between customer needs and partner competencies and activities.

How do partners enroll for the Solution Incentives Program?

Eligible partners automatically receive an invitation from the Channel Incentives Program (CHIP), after which they can able to enroll in the program.

Products eligible for Solution Incentives

Partners can start to register opportunities that include products in the following table: Sales Priority
Lync Enterprise

Products
Enterprise Server Standalone Enterprise CAL Plus CAL Standard Server Standalone Standard CAL

Incentives
20%

What is Partner Sales Exchange (PSX)?

PSX is the interface for partners to share and manage their Microsoft sales opportunities with their Partner Account Managers. PSX opportunity creation and related incentive requests are required for a partner to earn an incentive. PSX is globally implemented and available to partners. Contact your Partner Account Manager for further information regarding training and registration.

Lync Standard

10%

The minimum deal size is $5K. Partners can receive up to $50K in incentives for one deal. Incentives are based on first-year billed revenue of New and Add-On license deals. For specific eligible product SKU eligibility information, please check the Program Guide.

What is the Channel Incentives Platform (CHIP)?

CHIP is the vehicle for partners to enroll in the Solution Incentive Program. It also provides partners with a dashboard view of their incentives and is the means to calculate and disperse incentive payments.

How do partners earn incentives?

All opportunities that are approved by the Partner Account Manager, and meet the eligibility requirements as defined in the program guide, are processed for payment. Partners can view earned and paid incentives in CHIP.

Can partners earn incentives on Government Customer deals?

Partners in many subsidiaries may earn incentives for Government Customers, provided that they confirm in writing (through PSX), that they have advised the customer they may receive Incentive payments for Advisory Services. Details and a list of countries may be found through the Program Guide.

What if the Solution Partner also transacts the order?

Whether the Partner is only advising the customer, or advising and transacting, there is no difference in the solution incentives earned and paid.

How are partners paid?

Partners earn incentives on eligible transactions, and are paid 45 days after the end of month in which the incentives were earned. Payment is completed by means of electronic funds transfers (EFT).

Windows Intune and Office 365 Year 1 12%

6% All Years

Windows Intune Deployment (New, Add-On) New WC EA

Windows Intune Deployment (New, Add-On) on Existing WC EA Office 365 Deployment

Windows Azure 50%

12% 12%

Includes SQL Azure and App Fabric

25%

Windows Intune and Office 365 Promotional Incentive on Year 1 Year 1 Years 2+

5% 2% 0.5%

Sign Microsoft Online Services Partner Agreement Sign Microsoft Online Services Partner Agreement

Windows Azure Circle Membership

Online Advisor Incentives

ONLINE INCENTIVES | JULY 2011
Objective
The Online Advisor incentives reward partners for driving sales and managing the end customer relationship of Office 365 and Windows Intune sold under the MOSA agreement. The program creates opportunities for partners to build new sustainable revenue streams and increase their value to customers.

Microsoft Partner Use Only

Summary: Online Advisor Incentives

Eligible Revenue Licensed Through MOSA Rates Office365 Windows Intune 12% on net new year one billed revenue Additional 6% on revenue in quarter for every year including year one Earning and Payment of 12% Sell Incentive Partners earn incentives when customers subscribe. Earned up-front for the full year value Paid quarterly against first year billed revenue, or monthly when Partner is identified as POR for 150+ net new users Earning and Payment of 6% annually Partners earn incentives when customers continue paying for services. Paid quarterly against quarterly billed revenue Paid monthly when partner has $1,000+ in monthly earned incentives Terms These incentives will be in place, as defined, between July 1, 2011 and June 30, 2012

Partner Benefits
These incentives provide partners with a rich set of financial rewards that: Give partners more growth opportunities across our product offerings and customer base, Recognize partner choice in their business model, and supports profitability goals of a diverse mix of partners, Reward activities that drive revenue and customer value across the sales cycle, Simplify the incentive structure for our partners, with a stronger link between incentives, MPN competencies, and customer needs.

Partner Eligibility Criteria

Online Advisor incentives are customer segment and partner-type agnostic. Partners must sign the Microsoft Online Service Partner Agreement (MOSPA) to earn these incentives. The guide can be found on www.quickstartonlineservices.com

Improvements in Partner Payment Terms

As a Partner of Record, each partner earns the full 12% of the calculated Year 1 value of a user subscription within the Quarter that the customer subscribes.

Earning Incentives
A partner must be associated with a customer Microsoft Online Services Agreement as a Partner of Record to automatically start earning incentives.

Is there a claim process required? No, the partner of record

for each deal receives the incentives without any claim process.

How are partners paid? Incentives will be calculated for all eligible revenue within the fiscal quarter, and paid out to partners either monthly (for partners with more than 150 active seats), or quarterly (for partners with less than 150 active seats. How are incentives for Government Customer deals being handled? In certain geographies, partners earn incentives for Public Sector customers. Please ask your Partner Account Manager for more details. How will Microsoft incent partners that purchase Office365 and Windows Intune subscriptions purchased through the EA? Office365 and Windows Intune subscriptions transacted within the Enterprise Agreement will be incented through the EA deployment incentive, not this Online Advisor incentive. How are Advisor Incentives for CRM Online paid? The Advisor Incentives for CRM Online are paid through the CRM Solution Advisor incentives program.

EA Deployment of Online Services

Objective
The EA Deployment for Online Services Incentives rewards partners for driving deployment of specific Office 365 and Windows Intune seats within the updated EA (uEA). Deployment is defined as creating assigned seats (for example, going from having a reserved seat for Exchange Online, to an assigned seat, with an actual user name) or a downloaded Windows Intune agent within the updated EA. The program creates opportunities for partners to build new sustainable revenue streams and increase their value to customers as partners of choice in the migration to the cloud. Updated EA is defined either as a traditional EA with an updated EA amendment, or a post-July 1, 2011 updated EA.
Payment

Microsoft Partner Use Only

ONLINE INCENTIVES | OCTOBER 2011

Summary: EA Deployment of Online Services

Eligible Activities Rates Deployment of Office 365 and Windows Intune Windows Intune Add-On Deployment with new Windows Client EA: 50% Windows Intune EA or Add-On Deployment with existing Windows Client EA: 12% Office 365 Deployment: 12% All Rates paid against full year value of the transacted license. Paid quarterly. If Partner is identified as Partner of Record for 150+ net new users, paid monthly. Microsoft will start to process payments January 2012. Availability Payments and Partner Attach process begins October 2011, and incentives will be paid on all eligible deployments within the term of the incentive. July 1, 2011 to June 30, 2012 Office 365 defined as creating assigned seats Windows Intune defined as downloaded agents on individual devices

Partner Benefits
Online incentives provide partners with a rich set of financial rewards that: Give partners more growth opportunities across our product offerings and customer base, Recognize partner choice in their business model, and supports profitability goals of a diverse mix of partners, and Reward activities that drive revenue and customer value across the sales and deployment cycle.

Term Deployment definition

Partner Eligibility Criteria

Partners must sign the Microsoft Online Service Partner Agreement (MOSPA) to earn these incentives, which can be found on www.quickstartonlineservices.com

Program Highlights
The EA Deployment incentive will be paid starting with the January 2012 payment processing. At that time, payments will be processed against all eligible assigned seats deployed since July 1, 2011 for Windows Intune and any seats deployed from Office 365 General Availability. Transacting LARs will be eligible for this incentive as long as they have an eligible solution practice and are validated and associated with an updated EA as the MOS Partner of Record. Specific details on this program are available on www.quickstartonlineservices.com Individual partner attach forms must be filled out to be identified as Office 365 and/or Windows Intune partner of record and earn fees against these individual offers.

What is the Partner of Record attach validation process?

Each request to be attached as a Partner of Record on an Updated EA must be validated. The partner must have provided the service associated with assigning users to O365 or downloading the Windows Intune agent within the uEA. 1. Validation of any EPG uEA Partner of Record attach with greater than 1,000 licenses must be approved by a Microsoft Enterprise Partner Group (EPG) customer Account Manager. 2. The validation process is managed by Microsoft Operations and may require a customer consent & signature in order to complete the attach process. 3. Partner must be able to validate their engagement with the End Customer on the deployment and use of Microsoft Online Services. Additional information on the validation and attach process is available in the Program Guide, which is on www.quickstartonlineservices.com and explore.ms.

Earning Incentives
A partner must be associated with a customer updated EA to be the Partner of Record for the deployment, and automatically earn incentives. To establish this relationship between the partner and customer for deployment, a form must be sent into the local Regional Operations Center. Attach forms are available now, and payments will be made retroactively for all activity since July 1, 2011, starting January 2012. The partner will earn the fee for every net-new deployed seat. If a customer requests a change of partner, the new partner will earn the fee on additional net-new deployed seats. Seats migrated from BPOS to O365, where Microsoft has already made an incentive payment, are not eligible for this incentive.

Is there a claim process required?

No. Once a partner is validated as the Partner of Record they will earn incentives on each assigned license within the updated EA.

How does a partner earn incentives?

Once the partner is attached to the updated EA for a customer, they will earn the incentive as defined in the Program Guide. Some examples:

Office 365 E1 Level A 300 Seats

Office 365 E1 ERP ($10) x 12 months x Assigned Seats (300) x 12% incentive for the 12-month term = $4,320 incentive for the year

What partner types can participate?

EA Deployment for Online Services incentives are customersegment and partner-type agnostic. Partners need to sign the MOSPA (agreement), and the MOSP (partner) must be assigned and validated as the Partner of Record through the process described above. Given that many of the customers will have acquired the Online Services through the updated EA, many partners participating in these incentives will be Large Account Resellers who provide a deployment service as well as a licensing service.

Office 365 E3 Level D 3,000 Seats

Office 365 E3 ERP ($24) x 12 months x Assigned Seats (3,000) x 12% incentive for 12-month term = $103,680 incentive for the year

How are incentives for Government Customer deals being handled?

In certain geographies, partners earn incentives for Public Sector customers. Please ask your Partner Account Manager for more details.

Can a partner be the deployment incentives-earning partner, without being the EA Partner of Record? No.

Windows Azure
Objective
The Windows Azure Incentives reward partners for selling Windows Azure, creating opportunities for partners to build new sustainable revenue streams and increase their value to customers as partners of choice in the migration to the cloud.

Microsoft Partner Use Only

ONLINE INCENTIVES | JULY 2011

Summary: Windows Azure Incentives

Eligible Partners Rates Minimum Deal Size Eligibility of Revenue Azure Circle partners with signed PSP (with Azure) Windows Azure: 25% Includes SQL Azure and AppFabric $1,000 per quarter, $4,000 annualized revenue Billing must be to customer

Partner Benefits
Online incentives provide partners with a rich set of financial rewards that: Give partners more growth opportunities across our product offerings and customer base, Recognize partner choice in their business model, and supports profitability goals of a diverse mix of partners, and Reward activities that drive revenue and customer value across the sales and deployment cycle.

Only revenue from July 1, 2011 to June

30, 2012 - no rollover of payment between Fiscal Years

Payment Maximum Payout Term

Payment is quarterly. Maximum payout of $50,000 per opportunity. July 1, 2011 to June 30, 2012

Process
Eligible partners will sign agreements with Microsoft Eligible partners are invited to Partner Sales Exchange to register opportunities After opportunity is at 100% MS Win and approved by the Partner Account Manager (PAM), opportunity is validated by incentives team. Incentives are paid on a quarterly basis

Channel Developer for Online Services

ONLINE INCENTIVES | JULY 2011
Objective
Starting July 1, 2011, the Channel Developer for Online Services Incentives will reward partners for selling specific Microsoft Online solutions through resellers. The program creates opportunities for partners to build new sustainable revenue streams and increase their value to customers.

Microsoft Partner Use Only

Channel Developer for Online Services Incentives

Eligible Products Rates Office 365 and Intune sales through affiliated MOSP partners 7% on Year One: 5% Promotional incentive to June 30, 2012 2% base rate for Year One 0.5% for Year Two and beyond Earned as customers subscribe, and paid quarterly July 1, 2011 to June 30, 2012

Partner Benefits
Channel Developer Online Incentives provide partners with a rich set of financial rewards that: Give partners more growth opportunities across our product offerings and customer base, Recognize partner choice in their business model, and supports profitability goals of a diverse mix of partners, and Reward activities that drive revenue and customer value across the sales and deployment cycle.

Earning and Payment Term

Eligible Revenue
MOSCD partner can earn incentives on all eligible revenue for their Online Advisor partners (Office 365 and Intune). These channel partners must have a MOSP agreement, and must be selling to customers who are purchasing Microsoft Online Services through MOSA.

Incentives Promotion launching July 1, 2011

Microsoft will offer a promotion between July 1, 2011 and June 30, 2012, to all MOSCD partners, providing an additional 5% incentive to Year 1 billed revenue driven through MOSCD-recruited partners.

Partner Eligibility Criteria

Distribution partners selected to participate by their local subsidiary must sign the MOSCD agreement to earn these incentives. These partners are recruited by subsidiary leadership for their strengths in training, enabling, and recruiting Online Advisors (Microsoft Online Service Partners). The MOSCD Agreement is made available to partners from the Worldwide Partner Group, to the Partner Account Manager of each partner selected to participate.

Earning Incentives
A Channel Developer partner must be associated with the partners described as the customers Partner of Record, to automatically earn incentives. To establish this relationship between the Channel Developer partner and the Online Advisor partners, the MOSP partner must identify their Online Distributor or record when they sign the MOSPA. Please contact your Partner Account Manager for more information. The partner will earn the fee for every net-new seat. If a customer requests a change of partner, the new partner will earn the fee on additional net-new seats.

How do partners view their earned incentives?

The MOSCD Partner Dashboard is located at http://partnerdashboard.microsoft.com. To ask any questions about the Commerce Dashboard, please contact your Regional Service Center.

What partner types can participate? Channel Developer for

Online Services incentives are customer-segment and partnertype agnostic. Partners need to meet eligibility requirements, and be selected by SMBD subsidiary leadership, and each participating channel partner needs to meet the eligibility criteria.

Microsoft Online Channel Developer Process

1. Microsoft Online Channel Developer recruits, trains, and enables partner to sell Microsoft Online Services. 2. Transaction occurs: a. MOSPA partner designates Channel Developer Partner of Record b. Microsoft Online Services Partner advises end customer on the purchase of Microsoft Office 365 or InTune Online Services. 3. End customer purchases subscription service and identifies MOSPA as the partner of Record. 4. MOSP partner earns incentives against billed revenue. 5. MOSCD partner earns incentives against billed revenue.

Is there a claim process required? No. Once the relationship between a Channel Developer partner and the channel partners is established, earning and payment is automatic. How are incentives for Government Customer deals being handled? In certain geographies, partners earn incentives

for Public Sector customers. Please ask your Partner Account Manager for more details.

SAM Services Incentives

SAM Baseline SAM Assessment SAM Deployment Planning

SAM Services Incentives

SAM Services Incentive Program

Objective
SAM Services engagements were designed to increase the number of enterprise customers who can properly and proactively manage their licenses by: helping our customers understand how to reconcile their software use to their entitlements outlining ways they can improve their SAM policies and practices to lower costs and reduce risk creating a plan to deploy and adopt the necessary software tools to track and manage their software use on an ongoing basis.

Microsoft Partner Use Only

Overview | July 2011

Partner Requirements
In order to participate in this incentive program, partners must meet the following criteria: Partners must meet the Gold SAM competency requirements in the Microsoft Partner Network (once worldwide) A Partner Solution Plan must be in place for the SAM Services Workload in each country in which the partner plans to request incentive approval for work under this program The consultant delivering the engagement must be an employee and have passed the 70-673 SAM MCP

These engagements will also increase opportunities for qualified partners to engage new customers to demonstrate the value of SAM solutions, or to engage existing customers in new ways in order to develop deeper relationships and new revenue opportunities.

Eligible Engagements
A set of uniform SAM engagement descriptions which cover three strategic engagement scenarios are eligible for this incentive, as follows: SAM Baseline: inventory of deployed Microsoft assets, review of corresponding customer license documentation, virtual, hosted, or cloud-based solutions, and identification of any opportunities for improvement. SAM Assessment: review of customers existing processes against SAM Optimization Model framework, identifying improvement opportunities and associated ROI. SAM Deployment Planning: provides deployment planning for SAM capabilities relating to deployment, metering, inventory and control through a proof of concept using System Center, MDOP AIS, Windows Intune or MAP.

Why does Microsoft invest in SAM Services?

The SAM Services Incentive Program is one of our key strategic initiatives to reduce the long-term unlicensed use of our software through proactive customer outreach, education, awareness and engagement by qualified SAM partner consultants. By funding selected engagements, we will introduce customers to software asset management best practices, tools, resources and partners who can help them maintain long-term license compliance, including timely and accurate reporting of true-ups and other volume license purchases. Through these engagements we will provide customers with support to improve the tools, process, and understanding needed to support more timely and accurate reporting of their license use, and ultimately enable enduring compliance.

To ensure full transparency of the engagement details for all parties, the defined deliverables must be provided to Microsoft in order for an engagement to be eligible for incentives under this program.

What type of partners do you expect to participate in this program?

Partners with a strong background in process consulting, deep licensing expertise, and a focus on core IO, deployment or systems management will most likely want to participate in this program to deepen customer relationships in these areas to increase broader, long-term business opportunities with these customers.

Will the partner need to disclose to the customer that they are getting compensated from Microsoft?
Yes. Partners must also disclose to customers that they will be sharing the required deliverables with Microsoft as part of the incentive program.

Partners may request a SAM Services incentive for eligible engagements with customers with at least 250 desktops and one or more of the following volume licensing contract types: Enterprise Agreement Enterprise Agreement Subscription Select License Select Plus Academic Select

Which customers are eligible to have SAM Services engagements funded through this incentive program?

PSX is the interface for partners to share and manage their SAM engagement opportunities with the Microsoft SAM Engagement Managers. PSX opportunity creation and related incentive requests are required for a partner to earn an incentive. PSX is globally implemented and available to partners. Contact your Partner Account Manager for further information regarding training and registration.

What is Partner Sales Exchange (PSX)?

Open License, Open Value, GSA Select, Campus Agreement, School Agreement, and all other licensing programs not explicitly called out in the above list as being eligible are excluded from this program. Customers who are eligible for SAM Service Delivery under ESA are also excluded from eligibility.

CHIP is the vehicle for partners to enroll in the SAM Services Incentive Program. It also provides partners with a dashboard view of their incentives and is the means to calculate and disperse incentive payments. CHIP enrollment for SAM Services is planned for September 2011.

What is the Channel Incentives Platform (CHIP)?

What if a customer doesnt want to share the engagement results with Microsoft?

Under this program we will only pay incentives for those engagements where the required documentation is shared with Microsoft. Partners will need to discuss the disclosure requirements with customers before applying for the incentive, and should work directly with customers to pay for work delivered outside the approved incentives.

Enrollment is automated through CHIP. Partners who meet the eligibility requirements can receive training from their PAM. They will automatically receive an invitation after which they will be able to enroll in the program.

How do partners enroll for the Solution Incentives Program?

How does a partner receive incentive payments?

Partners will be paid through CHIP on eligible incentive opportunities. All opportunities that are approved and meet the eligibility requirements as defined in the program guide will be managed by CHIP and processed for payment. CHIP will accrue payments and pay partners 45 days after end of month in which the engagement was completed and the required deliverables were provided.

Partners can charge for any additional services beyond what is required in the predefined SOW from Microsoft. This additional work would need to be paid directly by the customer at the rate negotiated between the partner and customer.

What if the customer wants more assistance than what is provided through the Microsoft-defined SOW and incentives?

Partner Resources
SAM Services on Microsoft Partner Network: https://partner.microsoft.com/samservices SAM Engagement Resources: https://partner.microsoft.com/global/licensing/40092820 General SAM Questions: sampartners@microsoft.com

What are the available incentive amounts?

Incentive rates have been determined based on fixed fee schedule aligned with local market rates. Complete rate schedules are available in the SAM Services Incentive Program Guide.

Global Incentives 70%

Open VL - Core - Growth & Incubation Global Incentives 70% Local Accelerators 30% Selected At Area Level (or EU/EFTA)

Open VL, FPP, PKC Core Growth & Incubation Office Professional Office Windows Server Windows 7 InstallBased Upgrade Open Renewal Annuity Open SMB Attach

Aggressive Rates

Standard Distribution Rates

Unified Communications Security and Identity Server Management (Virt)

Local Accelerators 30% Selected At Area Level (or EU/EFTA) OVS Growth Anti-Piracy Renewals Public Sector

Windows Server SQL Server Exchange Server SharePoint Server Development Tools

Different programs for Emerging and Mature Markets

Different programs for Emerging and Mature Markets

Managed Resellers
Overview
Managed Resellers are strategic partners for Microsoft because they leverage their various strengths and strategic focus to help extend Microsofts reach into the market for Open Licenses. For some, these strengths include nationwide or multi-country coverage, focus primarily on direct marketing activities such as selling online and through outbound telesales teams, sell in high volumes, and differentiate themselves through their licensing expertise. For others, these strengths include local and regional brands, established solutions practices, and sales and marketing engines. In most markets, a relatively small number of Managed Resellers transact a significant portion of the Open revenue. This group of Managed Partners are also critical to Microsofts compete plans and will be a significant sales engine for Cloud offerings. The Managed Reseller incentives provide rewards for those partners who help Microsoft increase its Open License customer reach through marketing and sales activities. Incentives will include both marketing (coop) and cash rebates to help expand the Open License market opportunity and support marketing investments that benefit both Microsoft and its Managed Reseller partners. Managed Reseller status does not automatically qualify the partner for incentive eligibility. Eligibility requirements include: Have a MS Sales ID; MPN Large Account Resellers (LARs) Silver in Midmarket Solution Provider or SIP-related Competencies for other Managed Resellers Resell Open revenue (TTM) above $75K/year in Mature Markets or $50K/year in Emerging Markets. These market maturity markets are defined by Microsoft with local input; The Microsoft Partner Account Manager (PAM) or Tele-PAM (TPAM) will notify partners of their selection into the program. The eligible partner is required to sign a program letter each year.

Microsoft Partner Use Only

FY12 PARTNER INCENTIVES | JULY 2011

Product Revenue Eligibility

Incentives are earned for the sale of Core, Growth, and Incubation products via Open licensing vehicles, as shown in the table below. Partners will have a rate table that can be provided by the PAM/TPAM.
Product Categories Core Growth Growth/Market Share High Market Share Stable Growth Medium/high Market Share Fast Growth Growth Initiative Market Introduction Low Market Share Fast Growth Potential Products Office , Windows Client, Windows Server Exchange, SharePoint, SQL Server, Project, Visio, Development Tools, Biztalk, Microsoft Desktop Optimization Pack (MDOP) OCS , Lync, Security & Identity, Server Management

Partner Benefits
By leveraging the Managed Reseller incentives, partners can: Grow and extend customer base with enhanced rebates; Use Coop investments to extend marketing reach and accelerate sales; Increase profitability by broadening product/solution offerings into high-growth market segments

Partner Eligibility
Managed Resellers are selected by Microsoft based on their sales history, Microsoft Partner Network (MPN) certifications, local management status, and market coverage on behalf of Microsoft.

Incubation

How do the Incentives work?

The Managed Reseller incentive has two elements globally defined components and locally selected accelerators. In each Microsoft subsidiary 1-2 local accelerators will be incorporated.

Eligible Coop Activities

Resources
More information on the Managed Reseller incentives can be found through Microsoft Partner Network - https://partner.microsoft.com Regional Service Center

Managed Reseller incentives are based on 6-month earnings and claim business cycles, and are split between rebates and coop funds (guidance is for a 50-50 split). Earnings are based on the calculation of the sum of all eligible products multiplied by the published rate for both rebates and coop.

When is a Partner paid?

Rebates are paid during the month following the earning period, once the calculations have been conducted and verified. The usage period is the six-month timeframe following the earning period. Coop funds are paid during the usage period once the activity has been conducted and approved for eligibility by Microsoft.

What are Co-op funds?

The Cooperative Marketing Funds (Coop) reward the partner on its Marketing Development, Demand Generation, and internal Readiness activities. These activities need to meet the value-added activity criteria and must be approved by the subsidiary and /or program audit /support team and must be used to drive incremental Microsoft Open revenue.

Commercial Distribution
FY12 PARTNER INCENTIVES | JULY 2011
Overview
Commercial Distributors are strategically important partners that make significant contributions to Microsofts success, especially in the Small and Mid-sized market segments. Microsoft offers a set of incentives to its qualified Commercial Distributors as a reward for the value these partners deliver and the work they perform in helping Microsoft achieve its business objectives. The Incentives incorporate slightly different versions in mature and emerging markets. The Microsoft FY12 Channel Incentives for Commercial Distributors include both cash rebates and Cooperative Marketing Funds (Coop). The Coop program provides funds to participating Distributors to help differentiate and build channel preference and awareness for Microsoft products through increased demand generation, market development, and readiness activities.

Microsoft Partner Use Only

Partner Eligibility
To be eligible for Commercial Distribution incentives, a partner is required to have the following: A Distribution agreement with Microsoft and authorization specifying entitlement to sell finished goods products Authorization agreements detailing the licenses for products (Open Licenses, FPP, or PKC) it is allowed to sell.

Microsoft Partner Network Gold Competencies for Authorized Distributor and Volume Licensing
Once a partner has been designated by Microsoft as a Commercial Distributor, they automatically become eligible to earn incentives (once the program letter is signed by the partner).

Partner Benefits
By leveraging the Distribution incentives, Partners can: Grow and extend their partner ecosystem with enhanced rebates; Use Coop funds to enable and accelerate channel readiness, marketing and support; Increase profitability by broadening product/solution offerings into high-growth market segments.

Licensing Program and Product Revenue Eligibility

Product revenue is based on three categories: Core, Growth and Incubation.
Product Categories Growth/Market Share Products

Core Growth

High Market Share Stable Growth Medium or High Market Share, Fast Growth Market Introduction: Low Market Share, Fast Growth Potential

Office (VL), Windows Client, Windows Server Exchange, SharePoint, SQL Server, Project, Visio, Development Tools, BizTalk, MDOP Office Communications Server (OCS), Lync, Security & Identity, Server Management

Incubation

Commercial Distribution incentives are paid on the licenses and pricing types below.
Pricing Level FPP and PKC (Office) Open Open Value, Open Value Subscription Commercial/Government New, Upgrade, PKC Open L, Open SA Renewal, Open L&SA OV (New, Recurring, Renewal), OVS New, Recurring, Renewal) Academic FPP Academic Open Academic, Open Gov School (New, Recurring, Renewal), OVS-ES

How is a Partner measured and paid?

Commercial Distributors earn incentives on eligible revenue, based on both globally-defined objectives and locally-defined accelerators according to the percentage of revenue they perform in each category based on their purchases from Microsoft. Earned incentives are paid to partners as Cash Rebates and Coop Marketing Funds. At the end of a six-month Accrual Period, Partners are credited with rebates, and start to claim Coop Funds.

Resources
Please refer to the FY12 Commercial Distribution Incentives Guide for more information. For more information on Commercial Distribution Coop, and eligible coop activities: http://partner.microsoft.com/distributionkit Microsoft Partner Network - https://partner.microsoft.com

How does Co-op Funding work?

Coop funds can be used to pay for eligible Demand Generation, Market Development, and Partner Readiness activities. Most activities require pre-approval by the local subsidiary and/or program audit/support team. The Distributor will need to provide required information for each of marketing activity to allow the tracking of the necessary metrics to provide ROI calculation.

Value Added Distribution

Overview
Value-Added Distributor (VAD) partners continue to be strategically important partners that make significant contributions to Microsofts success. These partners provide deep solution expertise around strategic products and develop the partner ecosystems that are needed to effectively sell and implement solutions that pull these products into customer engagements. Microsoft offers a set of incentives to its eligible VADs as compensation for the value they deliver and the work they perform in helping Microsoft achieve its business objectives. The Value Added Distribution incentive program includes two types of rewards Cash Rebates, and Coop Funds. Its goal is to accelerate the sales of strategic product solutions into the market place.

Microsoft Partner Use Only

FY12 PARTNER INCENTIVES | JULY 2011

Partner Eligibility
To be eligible for VAD incentives, a partner needs to Maintain an annual VAD channel agreement and an Open License Authorization; Have a channel authorization that specifies the entitlement to sell finished goods products, and authorization agreements that detail the product licenses (Open) it is allowed to sell; Earn Microsoft Partner Network Gold Competencies that align to the solutions for which it is being authorized as a VAD; Provide a 12-month Business engagement strategy plan (after initial three-year plan for first year).

Licensing Program and Product Revenue Eligibility

Incentives paid under this program are for the licenses and pricing types below.
Pricing Level Commercial/Government

Partner Benefits
By leveraging the incentives, VAD Partners can: Enhance profitability and fund innovation; Foster improved longterm planning; Drive growth for strategically targeted solutions in the Small and Mid-market business segments; Better target competitive products and growth markets.

Open Open Value, Open Value Subscription

Open L, Open SA Renewal, Open L&SA OV (New, Recurring, Renewal), OVS New, Recurring, Renewal), OVS-ES

The products listed in the table below are classified as incubation products with high growth potential. VADs can be certified for one or more of these product categories.
Products Lync and Office Communications Server Commercial/Government OCS Standard, OCS Enterprise, OCS CAL, Office Live Meeting Services, Office Communicator and Connectors, Lync Enterprise CAL, Lync Enterprise Server, Lync Standard CAL, Lync Standard Server, Lync Plus CAL, Hosted Lync, Lync Other ForeFront Server, ForeFront Identity Manager, ForeFront Security Suite, ForeFront Client Security, ForeFront TMG and UAG System Center Client ML, System Center Servers

How does the Coop funding work?

Marketing Coop funds are earned at the same time as rebates, and cover the costs for eligible Demand Generation, Market Development, and Partner Readiness activities. Most coop marketing activities require pre-approval by the program support team, and all activity claims require submission of required information.

Eligible Coop Activities

Security and Identity Server Management (Virtualization)

In addition, VADs earn incentives for Windows Server, SQL Server, Exchange Server, SharePoint Server, and Developer Tools sales, when sold as part of the solution. VADs can also attain eligibility to earn Solution Incentives.

How are Incentives Earned?

Once partners have been designated by Microsoft as a VAD, they automatically become eligible to earn incentives once the program letter is signed by the partner. The VAD incentive includes four sets of performance metrics, based on individually-set targets for Revenue Attainment, Partner Reach, Partner Readiness, and Pipeline/Forecast accuracy. For each target, a VAD must reach a minimum of 75% achievement, and partners receive extra incentives for exceeding their targets.

Resources
Please refer to the following resources: Microsoft Partner Network - https://partner.microsoft.com Coop Eligible Activities must be submitted for approval by email at preapproval@microsoftcoop.com before they are performed and must otherwise meet the requirements as further defined in the Coop Guide. Contact your Regional Support Center

How is a Partner paid?

Value Added Distributors perform against a performance levers and earn incentives according to the percentage of revenue they earn, which is based on their purchases from Microsoft. Incentives are earned over a six-month accrual period. Partners receive incentives on what they have achieved after the earning period. Cash rebates are paid via a credit memo. After the accrual period, VAD partners complete eligible coop marketing activities, and then claims on the associated costs. Claims are paid once Microsoft reviews the activity outcomes.