Migration from On-Premise to Cloud

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4 Economies of Cloud Migration from On-Premise to Cloud Hybrid Environments Changing the Value Proposition

5 Hosting is growing 4x faster than Enterprise Cloud Instances are growing at 45% CAGR 19% of new private cloud instances will be at Hoster Datacenters by 2014 Cloud SPs will account for >20% of combined server and storage spending by 2014

6 200+ Dynamic Data Center Deployments 7500 Service Providers reporting SQL, up 36% from last year 3.5M Exchange Seats served by Service Providers 30+ Operators signed up for O365 Syndication

7 Microsoft Business Cloud Services PC slate phone browser Rich Communications Cloud Productivity Cloud Infrastructure Microsoft Public Cloud Resell Partner Private/Public Cloud Partner Hosted

8 A new offer designed specifically to address the end-user and IT needs of midmarket customers Admin Portal Office 365 ProPlus Simplified Admin console Active Directory Pull deployment of Office Client Always up to date 5 PCs/Macs + select mobile devices when available 1 , Collaboration and Communication Full business with Exchange Online Document sharing/collaboration with SharePoint Online IM and virtual meetings with Lync Online 1 Smartphones and tablets added regularly. Availability of Office 365 apps varies by device.

9 Standard Services Office Advanced Services Midsize Business comparison Differentiators across SKU categories include IT controls, support, Office deployment, and advanced services Office 365 Small Business Premium Office 365 Midsize Business Office 365 Enterprise (E1/2) Office 365 Enterprise (E3) Voic , Archiving, Data Loss Prevention Rights Management, Excel/Visio/Access svcs Active Directory Full Office Click to Run Deployment Pull Pull Push Office Web Applications Support Basic Expanded Full Full IT Administration Console Basic Expanded Full Full IM, Collaboration, Storage, Seat targets 1 10 (25 max) (300 Max) NA NA Commitment Monthly, Annual Annual Price (annual) $149 $180 $96 $240

10 Line of Business Applications Large Customers

11 Future of Productivity Best productivity experience across pc, phone, and browser Cloud on your terms ONLINE ON-PREMISES UNIFIED COMMUNICATIONS COLLABORATION ENTERPRISE CONTENT MANAGEMENT BUSINESS INTELLIGENCE ENTERPRISE SEARCH

12 Incentive Name Description How To Win Napa Trip Win an all-expense-paid trip for two to Buy or renew qualifying products including cloud Napa. services to get entered to win. $10k Rebate Earn up to $10,000 in the form of a rebate. Buy or renew qualifying products including cloud services and get a percentage back. Get2Modern Offer Get up to 15% back on purchases to upgrade the desktop. Big Easy Offer 10 Customer subsidy check direct from Microsoft for up to 20% on qualifying purchases. Cloud Easy Offer Customer subsidy check direct from Microsoft for up to 15% for online subscriptions. Move to the Modern Office Windows Intune 20% Discount Offer VAR Rebate Win an all-expense-paid trip for two either Australia, Spain, or the U.S. Virgin Islands, plus get a $10,000 shopping spree at the Microsoft store. Customers get 20% back on purchases of Windows Intune. Partners get up to 20% back on qualifying sales of Open Value annuity agreements. Buy Windows 8 Pro + Office Standard 2013 together to get a rebate. Submit redemption claim at Register your company as the POR when you sell your customers qualifying products & Submit redemption claim at Enroll in the sweepstakes, then sell a minimum of $1,500 in Office or Office 365 solutions and get entered to win. Customers that buy qualifying devices from you receive the rebate for up to 100 users. Register to participate and sell OV/OVC/OVS for qualifying products. Expiration Date 6/30/2013 6/30/2013 6/30/2013 5/31/2013 5/31/2013 6/30/2013 6/28/2013 6/30/2013

13 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.