Are you selling Office 365 Voice Capabilities? Steve Deming East Region SMB&D Technology Solutions Professional

Are you selling Office 365 Voice Capabilities? Steve Deming East Region SMB&D Technology Solutions Professional

The Office 365 Ecosystem Project Pro Visio Pro Sway Delve Groups Teams Planner Bookings Enterprise Voice OneDrive Yammer PowerBI Customer Manger Intune Azure AD EMS Rights Mgmt CRM Dynamics 365 Finance

Value of Office 365 E5 VOICE Complete Cloud Communication Skype Meeting Broadcast: Very large meetings, anywhere PSTN Conferencing: Worldwide dial-in for your online meetings Cloud PBX: Business phone system in the cloud PSTN Calling: Cost effective cloud based dial tone (this is an add-on) SECURITY Advanced Enterprise Protection Advanced Threat Protection: Zero-day threat and malware protection Advanced Security Management: Enhanced visibility and control Customer Lockbox: Enhanced customer data access controls Advanced ediscovery: Identifying the relevant data quickly ANALYTICS Insights for Everyone Power BI Pro: Live business analytics and visualization Delve Analytics: Individual and team effectiveness

WHAT IS A PUBLIC SWITCHED TELEPHONE NETWORK? Businesses Mobile Networks T H E D I A L T O N E O N T H E T E L E P H O N E Call Centers Home Phones

WHAT IS A PRIVATE BRANCH EXCHANGE? Updated! *New notes* T H E O F F I C E P H O N E S Y S T E M ( D I A L 9 F O R E X T E R N A L C A L L ) PBX PBX

WHAT IS A PSTN GATEWAY? C O N N E C T I N S I D E T O O U T S I D E PSTN Gateway

CONFERENCING SERVICE PROVIDER WEB CONFERENCING T Y P E S O F C O N F E R E N C I N G P R O V I D E R S VIDEO BRIDGE AUDIO BRIDGE Audio Conferencing Conferencing Provider Video Conferencing Web Conferencing

MODERN MEETINGS SKYPE MEETING BROADCAST

MODERN VOICE

Cloud PBX: Overview Private Branch Exchange Hardware within an organization that connects company telephone calls between employees locally and external contacts through the PSTN network. Function Benefits Calling Features Routes incoming calls to appropriate call extension in the organization Routes outgoing calls through a set of share phone lines Complete call control in Office 365 Provides control for IT to increase agility and consolidate management Cloud-based call control for end-users Automated Attendant Call answer / initiate (by name & number) Business Hours Call hold / retrieve Call History Call Delegation Call On-behalf Call Queuing & Routing Call Transfer (Blind, Consult & Mobile) Camp-on Caller ID Call Waiting Call forwarding & simultaneous ring Clients for PC, Mac & Mobile Device switching Distinctive ringing Do-not-disturb routing & call blocking Enterprise calendar call routing Financially backed SLA Integrated dial-pad Music on Hold Qualified IP Desk Phones Skype & Federated calling Team calling Video call monitor Voice Mail with Transcription

Auto Attendants Updated! *New notes* Intelligent Virtual Receptionist Productivity and cost savings Reduce time on hold for the callers

Business Hours & After Hours

Menu Options & Call Handling

Call Queues Updated! *New notes* Call Queueing and Distribution Scalability and Coverage Improved Service Levels for Callers

Call Queues *New!* Automated call distribution for Cloud PBX Simple agent configuration Timeout & overflow options

Call Queues Serial Routing *New!* Available Available Busy Available Alice Bob Cody Available

Call Queues Parallel Routing *New!* Available Available Busy Available Alice Bob Cody Available

Call Queues Attendant Routing *New!* Do not Disturb Alice Bob Cody Do not Disturb Offline

PSTN Calling: Overview PSTN Calling requires Cloud PBX. 2 options to acquire: 1. Add PSTN Calling Plan license to E5 licensed users (includes Cloud PBX) 2. Add PSTN Calling Plan license + Cloud PBX to E3 or E1 licensed user Calling Plans Domestic: Calling covers country only. Area codes available in all 50 states. +$12 Domestic + International: Calling supports 196 countries including landline & mobile. +$24 Minutes included, (pooled by Tenant) Limits only for abuse, fraud and to protect service performance 3K minutes for Domestic per user* 600 minutes for Intl. calling (Inbound and Outbound) per user Add new numbers simply Search by state/area code for the numbers you want. Add them to your organization s inventory. You can acquire more numbers than licenses to have some head room for changes. Bring existing numbers over FCC requires that current carrier allows & provides a centralized body (NPAC) to transact moves. There are different requirements to approve a move from various carrier. Integrated 911 Calling Links with E911 service provider and public safety access point (PSAP) Location must be defined when users are assigned a phone number

Voice Complete Cloud Communication Provide one platform for meetings and voice Reduce voice and conferencing costs Connect to meetings and each other from virtually anywhere, on any device COST SAVINGS We estimate that we will save about [US]$100,000 a year by standardizing on Skype for Business Online. This savings results from reducing the use of third-party conferencing providers, long-distance and toll calling contracts, and PBX and phone systems. - Niv Dolgin, Director of Enterprise Infrastructure, Ixia 100 million meetings conducted each month using Skype services

OFFICE 365 ENTERPRISE SUITES Features Office 365 Services $8 $20 $35 Business Class Email and Calendars Exchange Online 50 GB Unlimited Unlimited Social, Video, Sites, Task Management Yammer, O365 Video, SharePoint Online, Planner IM, Online Meetings, Meeting Broadcast Skype for Business File Storage, Sharing, Information Discovery OneDrive for Business, Delve Office Online Office Client Apps Office 365 ProPlus Archiving, Rights Management, Data Loss Prevention, Encryption Equivio Analytics for ediscovery, Secure Attachments and URLs, Access Control End User and Organizational Analytics Power BI Pro, Delve Analytics Cloud PBX Skype for Business PSTN Conferencing* Skype for Business Enterprise Plan Add-ons PSTN Calling** Skype for Business +$12 / $24

SKYPE FOR BUSINESS Features Massive Meeting Size (up to 10,000 participants) VoIP Only Tolled Dial-in for Skype Meetings Meeting Dial-out to PBX/PSTN users* Toll Free Dial-in Conferencing* Default join from PBX/PSTN phones End-user call handling: (answer, hold, transfer, sim ring) Setup and use call designation Team Calling Use IP Desk Phone Set and enforce calling policies Emergency calling Skype for Business Plus CAL Phone number assignment Inbound calling Outbound calling (domestic/int l) Included with Enterprise Plans $4 $8 $12 Domestic $24 International

PRICING AN SMB TELECOM SOLUTION E3 $20 E5 $35 Included $4 $8 OR $0* $12 $24 $0* $12 $24 * Requires local instance of the Cloud Connector, PSTN Gateway, and carrier calling plan

Security Advanced Enterprise Protection Help protect your organization against unknown malware and viruses (Protect) Gain enhanced visibility and control into Office 365 usage and security incidents (Detect) Maintain explicit control over your data in the cloud (Respond) REDUCED RISK Maintain compliance while streamlining the ediscovery process to save time and money Safe Attachments in Exchange Online Advanced Threat Protection is going to reduce zero-day threats from malware and viruses. This will help prevent malicious attachments from impacting our environment. - Brian Ivie, Chief Security Officer, SunGard 317 Million New pieces of malware created in past year* *Symantec Internet Security Threat Report, 2015

Security Advanced Threat Protection Help protect against unknown malware and viruses Provide real-time, time-of-click protection against malicious URLs Deliver rich reporting and URL trace capabilities with Click Tracing Advanced Security Management Identify high-risk and abnormal usage, security incidents, and threats Gain enhanced visibility and context into Office 365 usage and shadow IT Reduce the possibility of attacks with granular controls that monitor access Customer Lockbox Control all access to data; Microsoft must be granted permission Grant just-in-time access to limit data access Maximize data security and privacy by logging access control activities Advanced Threat Protection Advanced Security Management Customer Lockbox Advanced ediscovery Focus on what is unique and relevant by training the system to identify emails and documents through predictive coding Reduce document volume with Near Duplicates and Email Threading Advanced ediscovery

Analytics Insights for Everyone Transform your company s data into rich visuals and analytics for better decision making Be more effective, make better decisions, and save hours every week with time and relationship insights for individuals and teams BETTER DECISIONS Focus on what matters to you, so you can make better business strategy decisions as well as personal and team productivity decisions. Office 365 has made Henkel faster and more agile. -Joachim Jaeckle, Senior CVP, Henkel Leader In Gartner s Magic Quadrant for Business Intelligence & Analytics Platforms for the ninth consecutive year and placed furthest in vision *Gartner s Magic Quadrant for Business Intelligence and Analytics Platforms, February 20

Analytics Power BI Pro Gain fast, easy access to the data you need with a simple intuitive experience Access a live, 360º view of your business through a single dashboard Discover new insights by exploring your data with rich visualizations Delve Analytics Leverage personal analytics to improve individual effectiveness Use the Outlook add-in to understand email reach and impact Identify top collaborators and understand collaboration trends Power BI Pro Delve Analytics

NEW OFFICE 365 PREMIUM ADD-ON PRICING Build on E3 with Add-Ons E3 $20 $2 $2 $4 $10 Available Standalone $8 $8 $4 $12/$24*

E5 HELPS CUSTOMERS SAVE ON COSTS ~$90 PER USER FROM COMPETITORS PBX Solution PSTN Conferencing Solution ediscovery Solution $38 PER USER STANDALONE Advanced Security Data Access Control Organizational Analytics End User Analytics Cloud PBX PSTN Conferencing Analytics for ediscovery $8 Advanced Threat Protection Customer LockBox Delve Org Analytics $4 Power BI $8 $4 $2 $2 $10 $15 PER USER E5 SUITE E5

UPSELL TO EXISTING HOSTED EXCHANGE and EXCHANGE ONLINE BASE (PLAN 1 and PLAN 2) OFFER COMPONENTS 1. Skype for Business Online Plan 2 2. Cloud PBX 3. PSTN Calling Plan $25.5 ~ $37.5 Additional Revenue, Per User Per Month UPSELL TO EXISTING OFFICE 365 BASE: E1, E3 NEW CUSTOMER ACQUISITION OFFER COMPONENTS 1. Cloud PBX 2. PSTN Calling Plan OFFER COMPONENTS 1. E1/E3/E5 2. Cloud PBX 3. PSTN Calling Plan $20 ~ $32 Additional Revenue, Per User Per Month $28 ~ $59 Revenue, Per User Per Month DEVICE SALES & MARGINS NETWORK ASSESSMENT, END CUSTOMER ADOPTION & SUPPORT SERVICES

$36 18% $24 $22 $27 Average 6 to 50 51 to 100 101 to 150 51% SHARED INDIVIDUAL OTHERS 38% 26% 12% GO-TO MEETINGS WEBEX SKYPE FOR BUSINESS AND FREEMIUM SKYPE

WILL SWITCH IN 6 MONTHS WHY? WHO? 6-10 12% 44% 35% 65% 60% '11-50 23% 51-100 35% 100-500 18% 60% 1.1M 3.4M SAVINGS ACCOUNTS USERS

Modern meetings: TCO value proposition

New Meetings Solution: 35 People Organization Number of individuals able to initiate PSTN-enabled web conferences: 4 2 additional employees sharing access/use per license.) GoToMeeting (Citrix) WebEx (Cisco) Skype for Business Monthly Cost (for 4 User) $ 160.00 $ 276.00 $ 38.00 Per User Per Month (PUPM) $ 40.00 $ 69.00 $ 9.50 What SMBs pay today for their existing Meetings Solutions Modern Meeting US Web Conferencing Cost Per Initiator $ 23.50 Conversion Rate 1 Total Cost $ 23.50 Modern Meeting ($9.50) Savings 60%

No PBX, Internal Key 4% Mobile Devices Only 6% 45% $42 $37 $45 Cloud Based PBX 8% Landlines Only On-Prem IP PBX 13% 14% 21% 16% 20% 0.4 USA UK EU Hosted PBX 18% Traditional On-Prem PBX 37% Less than 2 Years 2-5 years 6-8 years More than 8 years 55% LIKELY TO CHANGE THEIR PBX SOLUTION IN THE NEXT COUPLE OF YEARS

Voice opportunity WILL SWITCH IN 6 MONTHS WHAT? WHO? 6-10 15% 37% 29% 65% 61% 11-50 27% 51-100 27% 100-500 33% 16.1M VOICE USERS OPPORTUNITY

Modern Meetings Modern Voice Hybrid Voice CUSTOMER VALUE PROPOSITION: 1. 1 SOLUTION FOR ANY KIND OF MEETINGS. 2. SAVE $$ ON AUDIO CONFERENCING 1. SAVE $$$ ON VOICE and PBX. 2. COMPLETE UC&C SOLUTION 1. LEVERAGE EXISTING COMMUNICATION INFRASTRUCTURE WITH OFFICE 365. MINIMUM CONSTRUCT: $9.5 USER/MONTH MINIMUM CONSTRUCT: $25.5 USER/MONTH MINIMUM CONSTRUCT: $13.5 USER/MONTH ANATOMY OF A DEAL 1. PRE-REQUISITE: SKYPE FOR BUSINESS PLAN 2: $5.5 2. PSTN CONFERENCING ADD-ON: $4 RECOMMENDATION: BUSINESS PREMIUM + PSTN CONFERENCING 1. PRE-REQUISITE: SKYPE FOR BUSINESS PLAN 2: $5.5 2. PRE-REQUISITE : CLOUD PBX: $8 3. PSTN DOMESTIC CALLING PLAN: $12 RECOMMENDATION: SUITE + CLOUD PBX + PSTN CALLING 1. PRE-REQUISITE: SKYPE FOR BUSINESS PLAN 2: $5.5 2. PRE-REQUISITE : CLOUD PBX: $8 3. CLOUD CONNECTOR EDITION: FREE DOWNLOAD RECOMMENDATION: SUITE + CLOUD PBX + CLOUD CONNECTOR EDITION GO TO MARKET MOTIONS: EXISTING BASE: 1. OFFICE 365 EXISTING BASE: UPSELL 2. HOSTED EXCHANGE BASE: UPSELL 3. HOSTED LYNC: UPGRADE TO OFFICE 365 4. COMPETE SOLUTIONS: REPLACE NEW CUSTOMER ACQUISITIONS: 5. COMPETE CONVERSION: LEAD with CONFERENCING SPEND TCO DEVICES AND SERVICES OPPORTUNITY: 6. SKYPE CERTIFIED HEADSETS: DAAS (Jabra, Plantronics) 7. CONFERENCE ROOM DEVICES 8. PAID ON-BOARDING AND SUPPORT EXISTING BASE: 1. OFFICE 365 EXISTING BASE: UPSELL 2. HOSTED EXCHANGE BASE: UPSELL OPPORTUNITY 3. HOSTED LYNC: UPGRADE TO OFFICE 365 4. LEGACY PBX: REPLACE NEW CUSTOMER ACQUISITIONS: 5. COMPETE CONVERSION: PBX + CALLING SPEND DEVICES AND SERVICES OPPORTUNITY: 6. SKYPE CERTIFIED HEADSETS: : DAAS (Jabra, Plantronics) 7. SKYPE CERTIFIED PHONES 8. PAID ON-BOARDING AND SUPPORT 9. FASTTRACK: PBX MIGRATION EXISTING BASE: 1. OFFICE 365 EXISTING BASE: UPSELL 2. HOSTED EXCHANGE BASE: ADD-ON CAPABILITY 3. HOSTED LYNC: UPGRADE TO OFFICE 365 NEW CUSTOMER ACQUISITIONS: 4. MODERN WORKPLACE: LEVERAGING INVESTMENTS DEVICES AND SERVICES OPPORTUNITY: 5. MANAGED SERVICE: CCE 6. PAID ON-BOARDING AND SUPPORT 7. FASTTRACK: PBX MIGRATION AVAILABILITY: 45 COUNTRIES, RAPID EXPANSION H1 FY17 US WORLDWIDE

Typical SMB Upsell Path to E5 Help your customers enhance their Office 365 experience with a secure and integrated solution that elevates collaboration and productivity while keeping company data secure. This step-by-step journey is structured to help guide you and your customers towards the best managed services solution. 1) Do you want autoupdates and the latest features of your familiar Office applications? 2) Need a more efficient way to communicate securely with your team, no matter where they are located? 3) Need an easy & inexpensive way to call coworkers, customers & partners? 4) Want an easy way to safeguard your companies data without intruding on your employees personal life? 5) Need a better way to manage devices accessing corporate data and publish easy-to-read data? Workload Office 365 E3 Suite PSTN Conferencing Cloud PBX, PSTN Calling Lockbox, Advance Threat Protection, edicscovery Delve Analytics, Power BI Solution: Office applications now offered as a cloud solution. Always up to date Each user can install Office on up to 5 devices Save to the cloud for backup/access anywhere Hold scheduled or ad hoc online meetings for up to 250 participants, with: Audio and Video Screen Sharing Virtual Whiteboards Polls Shared notes Our new Modern Collaboration pillar gives customers a truly real time communications platform. The cloud enables all forms of meetings, calls & interactive collaboration to work (and be managed) together. Protect your organization against unknown malware/viruses while gaining enhanced visibility and control into O365 usage/security incidents by maintaining explicit control over your data in the cloud. Become more effective & efficient with time & relationship insights for employees & teams with Delve Analytics. Transform your company s data into rich visuals & analytics for better decision making with Power BI. Office365 E5 Suite ($35) Price: E3 Suite: $20 PSTN Conferencing: $4 Cloud PBX: $8 Add-On: Local PSTN Calling: $12 Add-On: Intl. PSTN Calling: $24 Lockbox: $2 Advanced Threat Protection: $2 Ediscovery: $8 Delve Analytics: $4 Power BI: $10 Compete: Office on-prem, Google Apps Citrix GoToMeeting, Cisco WebEx Shoretel, Ring Central, 8x8 Relativity, Proofpoint Metalab Peak, Tableau

The Path to E5 Success 4 hr. session 1.5 hr/session 1.5 hr./session Per Partner Request Get Started Preview and IUR Grow your Business Meeting & Voice Optimize your Business Technical Training Webcast Sign up for: 1. Skype for Business(SfB) preview: Get a sneak peek at new features Sign up for Skype Preview 2. Full E5 Trial: Sign up for E5 Trial here Skype for Business Academy Training for anyone planning a business practice around SfB Online. Sign up for Skype for Business Academy here Skype for Technical Series Training for anyone planning a voice practice that may include hybrid scenarios. Sign up for Skype for Technical Series here Ask the Experts Continuing education for an O365 partner. Topics change on a quarterly basis. An O365 expert presents a brief technical presentation followed by a Q&A session. Deployment Service For partners who have taken the SfB Tech Series & want to dive deeper into deployment scenarios. Sign up here for Skype Operations Framework 3. Internal Use Rights (IUR) Discover the tools to implement specific O365 workloads to grow & manage your business by leveraging the O365 IUR. Cloud Productivity or Communications Competency Silver = 25 E5 Licenses Gold = 100 E5 licenses Click here for IUR Support Learn: Prepare your technical delivery team with information needed to be successful Modules: 1. Cloud PBX, PSTN Calling 2. PSTN Conferencing & Meeting Broadcast 3. Cloud Connector Edition Setup & Troubleshooting 4. Cloud PBX On-Prem PSTN Connectivity Modules: 1. Skype for Business - What's New? 2. Reference Architectures & Design 3. Telecommunications Concepts *NEW* 4. Upgrade to Skype for Business - What should I know? 5. Skype for Business Meeting & Video 6. Skype for Business Server Core & Voice Improvements 7. Skype for Business Hybrid Deep Dive 8. Skype for Business Edge Architectures & Configuration Click here to Ask the Experts More resources: Cloud Enablement Desk Assists MPL and non-mpl partners in obtaining a Cloud Competency (Silver and Gold Competencies) with the help of a Cloud Program Specialist for up to 6 months. Nominate yourself for CED today Benefit: Pre Sale Support Advisory Hours MCP Readiness IUR Benefits Marketing (SEO/SEM) Social Local Events Scenarios via ModernBiz Cross Sell / Upsell Demos All modules contain extensive demos & are developed in such a way that they leverage the Skype Operations Framework. SMB Relevant Modules 1. Defining Requirements for a SfB Deployment 6. Configure Cloud PBX/On- Prem PSTN Connectivity 7. Deploying Conferencing & SfB Meeting Broadcast Other Modules 2. Designing a SfB Deployment & Defining Network Requirements 3. Upgrading a Lync Infrastructure to SfB 4. Migrating SfB BackEnd Database from SQL Mirroring to AlwaysOn 5. Configure SfB Hybrid & User Migration

READINESS MARKETING SALES PRE-SALES POST SALE SUPPORT Configuring PSTN Conferencing in Office 365 Making Amazing happen with Skype for Business Skype for Business Meetings- Customer Ready Tech considerations: Hex Modern Meetings Conferencing deep dive Skype Meetings Broadcast - Technical Readiness Video Skype for Business: Vision for the future Skype for Business PSTN Conferencing Demo Video Conferencing deep dive video Skype for Business: How-To- Series IUR: Cloud Productivity or Communications Competency Silver = 25 E5 Licenses Gold = 100 E5 licenses Auto Attendant training Call queues training What is E5 Skype for Business drives digital transformation Cloud PBX FAQ Quick Start guides Skype Meetings Broadcast - Demo Click Thru Skype for Business preview: Get a sneak peek at new features http://skypepreview.com Full E5 Trial: http://aka.ms/e5trial Skype Meetings Broadcast - Demo Video Skype for Business Webcast Series

SKYPE FOR BUSINESS COMPLETE MEETING SOLUTION WEB CONFERENCING M O D E R N M E E T I N G S W I T H S K Y P E F O R B U S I N E S S AUDIO BRIDGE VIDEO BRIDGE Skype for Business Skype Meetings Conferencing Provider Conferencing PSTN Skype Meeting Broadcast

SKYPE FOR BUSINESS PSTN CONFERENCING Included in E5 or as Add-On PSTN Conferencing E X T E N D I N G S K Y P E M E E T I N G W I T H P S T N Skype for Business PSTN Conferencing Available on E3 Skype Meeting on Office 365

PSTN Conferencing Toll Free Calling Payment for E5 PSTN CONFERENCING: TOLL FREE RATE* PSTN Conferencing Rates: PSTN Calling Rates: E5 FAQ

PSTN Conferencing International Rates PSTN CONFERENCING: INTL DIAL-OUT RATE Rates per minute

PSTN Conferencing Add-On Options to Office 365 skus $5.50 Add-on $5.00 Add-on $12.50 Add-on $8.00 Add-on $20.00 Add-on $35.00 Included

Cloud PBX SLAs Financially accountable for availability & quality Skype covered under 99.9% Office 365 SLA Skype for Business Quality SLA Ensuring every call has great quality Monthly uptime % < 99.9% 25% Service credit < 99% 50% Now Available: Additional SLA for Call Quality < 95% 100% 56

PSTN TAXES AND TELECOM REGULATION (United States) *New!* Channel Partner Impact In the United States the price billed to Partners and paid by Partners to Microsoft for the PSTN services includes applicable taxes and fees. In the United States, if a Partner marks up the price of a Microsoft PSTN Service (PSTN Conferencing or PSTN Calling), the Partner will likely be responsible for calculating and remitting PSTN taxes and fees. Partners should contact their tax and legal counsel to understand their specific situation with regard to PSTN services regulation, taxes and fees, and their potential liabilities. PSTN Taxes For indirect sales to Partners for sales that they will then make in the United States, pricing for PSTN Services that Microsoft sells, on behalf of Skype Communications US Corporation, includes all applicable taxes and fees that must be collected and paid by Skype Communications on its original sales to any government agency, commission or quasi-governmental body. These taxes are disclosed on the Volume Licensing site. Partner Agreements All Partners will be required to sign an amendment to their Channel Agreement in order to sell Microsoft s PSTN Services All Partners should have received the amendment by now this amendment could take the form of a contract addendum or an update to the Channel Agreement. If you have not received this update, contact your Partner Sales Executive. The amendment, among other things, updates the tax section of the Channel Agreement.

PSTN CONSUMPTION OVERVIEW PSTN Consumption enables PSTN Conferencing international dial-out and calling beyond any minute limits included in the base PSTN Calling or PSTN Conferencing subscriptions. Office 365 and Skype for Business will use a Pre-paid Billing Model for PSTN services. PSTN Consumption billing can be enabled on any tenant licensed for PSTN Conferencing or PSTN Calling. PSTN Consumption billing available in all PSTN Conferencing Sell-To countries except Brazil, Croatia, South Korea, Taiwan** License Type Base Subscription Provides: PSTN Consumption Adds: PSTN Conferencing Inbound conference calling Domestic dial-out from a conference to a number in the same country as the organizer Dial out from a conference to PSTN numbers in countries other than the organizer s assigned country* (International Dial-out Conferencing) Toll Free Dial In PSTN Domestic Calling Inbound calling 3000 minutes of outbound domestic calling (United States and Puerto Rico) Dial out to international numbers Ability to overrun subscription plan minutes per month and pay per minute over the monthly allotment PSTN Domestic & International Calling Inbound calling 3000 minutes of outbound domestic calling (United States and Puerto Rico) 600 minutes of outbound international calling to the 196 PSTN countries Dial out to any international numbers beyond the 196 countries included in the base calling plan Ability to overrun subscription plan minutes per month and pay per minute over the monthly allotment

MICROSOF T PSTN SERVICES: TAX TRE ATMENT U N I T E D S T A T E S T A X T R E A T M E N T Taxes imposed on PSTN services are considerably more complex in the United States than sales/use tax. Taxes that need to be calculated and remitted include: 911 fees Public Utility Commission Fees License Taxes Telecom Excise Taxes Several other taxes and fees based on customer location To simplify the partner experience in the United States, Microsoft chose to price PSTN services on a tax inclusive basis. Therefore, in the United States, a charge for PSTN services includes all applicable taxes that apply to the sale. These taxes are not separately charged as a line item on the applicable invoice to customers or partners. To indicate the tax inclusive nature of the PSTN services on the partner invoice, an asterisk is added to the invoice line items that include PSTN services. The asterisk references a footnote at the bottom of the invoice indicating that the line item is tax inclusive and includes reference to a website where particular state by state tax rate information can be found.

EXAMPLE: PSTN CONFERENCING IN UNITED STATES 1 1 When a partner selling to a United States customer marks up PSTN Services, they will likely be required to calculate and remit PSTN-related taxes and fees in the United States. 2 Non-PSTN Services should not be subject to these taxes and fees E3 + PSTN Conferencing E3 + E5 Step Up + PSTN Conferencing E5 + PSTN Conferencing 1 $2 PSTN Conferencing 1 $2 PSTN Conferencing 1 $4 PSTN Conferencing 2 $13 E3-E5 Step Up: Non-PSTN Services ($2.60 @ 20% margin) 2 E3 Non-PSTN Services 2 E3 Non-PSTN Services 2 ($4 @ 20% margin) ($4 @ 20% margin) E5 Non-PSTN Services ($6.60 @ 20% margin) $20 In the case of E3, the full $20 of the price are non- PSTN Services and should not be subject to US PSTN taxes and fees. $20 In the case of E3 and the E5 Step up, the full $20 and $13 of the price are non-pstn Services and should not be subject to US PSTN taxes and fees. $33 In the case of E5, $33 of the price are non-pstn Services and should not be subject to US PSTN taxes and fees. 1 Partners should contact their tax and legal counsel to understand their specific situation with regard to PSTN services regulation, taxes and fees, and their potential liabilities.

PARTNER KEY TAKE AWAYS Office 365 E5 Value Proposition PSTN Sell-To Country Availability PSTN Taxes and Telecom Regulation - Channel Partner Impact Position Office 365 Enterprise E5 Suite as the most comprehensive, most secure cloud for productivity and communications. Office 365 E5 gives customers Cloud PBX, Skype Meeting Broadcast, and PSTN Conferencing, End User and Organizational Analytics while getting unprecedented control over their data with Access Control, and Advanced Threat Protection. PSTN Conferencing and PSTN Calling MUST ONLY be marketed to and sold to customers with billing addresses in the 34 sell-to countries where PSTN Conferencing and in the United States for PSTN Calling In the United States the price billed to Partners and paid by Partners to Microsoft for the PSTN services includes applicable taxes and fees. In the United States, if a Partner marks up the price of a Microsoft PSTN Service (PSTN Conferencing or PSTN Calling), the Partner will likely be responsible for calculating and remitting PSTN-related taxes and fees. Contact your tax and legal counsel to understand their specific situation with regard to PSTN services regulation, taxes and fees, and their potential liabilities. Get Ready Visit http://drumbeat.office.com for partner ready Office 365 E5 resources

Cloud PBX *New!* Complete call control in Office 365. Azure ExpressRoute** or Public Internet Customer Premises Office 365 Two core parts always in the cloud: - Cloud-based call control for end-users - Tenant admin user experience for IT Pros ** Azure ExpressRoute for Office 365 strongly recommended for optimal experience

Cloud PBX: PSTN Options *New!* PSTN Calling plans delivered by Microsoft (1) On-Premises PSTN Connectivity (2) ExpressRoute Office 365 Customer Premises Public Internet (2) (1)

Cloud PBX with On-premises PSTN Connectivity *New!* Skype for Business software deployed on-premises Cloud Connector Edition delivered as Packaged VMs for rapid deployment. Current customers can use their existing topology / pool and reduce size of footprint. Hybrid Offering Deployment integrated with Office 365 using split domain. Users log into Office 365, services delivered from cloud. Media Path PSTN calls connect through on-premises hardware. Standard Direct SIP Connectivity to Next Hop SIP Peer (Gateway/SBC/PBX).

Cloud PBX with On-premises PSTN Connectivity *New!* Skype for Business Software Split Domain Existing Telephony Infrastructure Customer Premises PSTN Calls

On-premises PSTN Connectivity: Benefits *New!* Take advantage of existing comms infrastructure. Retain your carrier contract. Simply migrate users from on-premises to cloud. Preserve customization in Server deployment. Significantly smaller HW footprint onsite.

On-premises PSTN Connectivity Multiple ways to implement this topology *New!* Existing Customer Server Pool New Customer Server Pool Cloud Connector Edition Partner Appliance Connect existing topology to Office 365 using Split Domain & migrate users to Cloud PBX. Cloud PBX user s PSTN Traffic transits pool. Deploy Skype for Business Server and connect it with Office 365. Customers can operate additional services onprem (VIS, etc.) Packaged VMs on Customer Hardware provides PSTN connectivity components with Office 365. Cloud PBX users PSTN Traffic transits VMs Partner offering where required Skype for Business Server software or VMs packaged with SBC/Gateway.

On-premises PSTN Connectivity Comparing New Server Pool vs. Cloud Connector Edition *New!* New Customer Server Pool Cloud Connector Edition Update Process Completely Manual Automated & Delivered from cloud Maximum Simultaneous Calls 1 150 500 Users Supported (worst case) 2 750 2,500 Physical Servers Required 3 Two; Dual proc, Hex core One; Dual Proc, Hex Core Server Licenses 4 2x WS Standard Edition 1x WS Datacenter Edition Other Resources Required AD Schema Modifications, Reverse Proxy, File Share None Install Time (est.) Three days Half-Day Cloud Config Time 5 PSTN / PBX Integration 5 Additional Scenarios Supported 6 Users homed on-premises Video Interoperability Enterprise Voice On-Prem Dial-in Conferencing Equivalent Equivalent None (** Much simpler to scale out)

Pre-requisites: Server Pool *New!* Pool: Lync Server 2013 or Skype for Business 2015 Server Standard or Enterprise Edition Edge: Lync Server 2013 or Skype for Business Server 2015 Mediation: Lync Server 2013 or Skype for Business Server 2015 Co-located or in a separate pool Tested On-premises PSTN infrastructure Active directory synchronization Skype for Business Hybrid Organization configured

Pre-requisites: Cloud Connector Edition Requirements No on-premises Skype For Business Deployment Qualified next-hop SIP Peer: IP-PBX, SIP Trunk, SBC or Gateway Hosts located in the DMZ CPU 500 Simultaneous Calls 50 Simultaneous Calls 64-bit dual processor, six core, Intel i7 4790 quad core 2.50 gigahertz (GHz) or higher RAM 64 GB ECC RAM 32 GB DDR3-1600 non-ecc Disk Network Four 600 GB 10K RPM 128M Cache SAS 6Gbps disks, RAID 5 Three 1 Gbps Ethernet High throughput network adapters Two 1TB 7200RPM SATA III (6 Gbps) in RAID 0 Two 1 Gbps Ethernet Capacity Stand-alone capacity estimated with 70% Internal Users, 30% External users Multiple Packaged VM sets can be stacked for greater scale. *New!*

On premises PSTN Connectivity: Cloud Connector Edition *New!* Mediation, Edge CMS & Domain Controller VMs

Call Routing Summary *New!* Inbound call flow User s Direct Inward Dial (DID) number terminates at PSTN gateway or PBX. Call is routed to on-premises Skype For Business deployment. User s Active Directory object indicates a different deployment locator. Request is proxied through on-premises Edge proxy to Skype For Business Online. Invite is routed to end user s logged-in endpoints. If accepted, media is routed either locally or through the company s Edge Server or firewall. If rejected, media is routed to Cloud PBX Voice Mail. Outbound call flow User instantiates a PSTN call. Client normalizes number and sends invite to home server. Voice policy enforcement and call authorization is performed on-premises. Call is routed to PSTN via Mediation Server.

On premises PSTN Connectivity: Multi-site *New!* Mediation, Edge CMS & Domain Controller VMs Mediation, Edge CMS & Domain Controller VMs Call to +1 408 555 1212 US +1 via San Jose GW Media Signaling

Manageability *New!* Configuration Firewall requirements identical to Skype for Business Server Access Edge & A/V Edge On-premises settings are managed through Skype For Business Server Control Panel and PowerShell. Cloud settings are managed through remote PowerShell cmdlets. User management The on premises Skype for Business Control Panel and Management shell enables configuration relevant to user with synchronization of the settings online Monitoring CDR are collected on premises. QoE is reported online and exposed through Call Quality Dashboard

Auto Attendants in Cloud PBX

Phone Numbers Can I assign Toll-Free phone numbers to Auto Attendants? Can I assign local service numbers to Auto Attendants? What if I want to keep using my current phone numbers? Can I have Auto Attendants with no phone numbers assigned?

Language Support What languages can I choose? How will it work with Speech Recognition?

Greetings and Menus Are there default Greetings and Menu Prompts? Can I use my own audio files? Can I create Greetings and Menu Prompts with Text to Speech?

Dial by Name To reach your party by name, enter it now, followed by the pound sign. How do callers give their input? Is there Speech Recognition? What happens when there are multiple matches found? Can callers reach my premises Skype for Business users with Dial by Name?

Operator Option For Operator, press zero. Who can be set Operator? Is it a required field? What key Operator is mapped to? What else Operator is used for in Auto Attendant?

Save and Test How can I quickly test my Auto Attendant?

Auto Attendant - Language Support English (US) Dutch (NL) Chinese (ZH) English (CA) Swedish (SV) Chinese (HK) English (GB) Finnish (FI) Chinese (TW) English (AU) Danish (DA) English (NZ) Norwegian (NO) English (IN) Portuguese (PT) French (FR) Portuguese (BR) French (CA) Russian (RU) Italian (IT) Polish (PL) German (DE) Arabic (EG) Spanish (ES) Japanese (JP) Spanish (MX) Korean (KO) English (US) English (CA) English (GB) English (AU) English (IN) French (FR) French (CA) Italian (IT) German (DE) Spanish (ES) Spanish (MX) Portuguese (BR) Japanese (JP) Chinese (ZH)

Auto Attendant PowerShell cmdlets

Call Queues in Cloud PBX Port existing or acquire new numbers

Phone Numbers Can I assign Toll-Free phone numbers to my Call Queue? Can I assign local service numbers to my Call Queue? What if I want to keep my current phone numbers? Can I have Call Queues with no phone numbers assigned to them?

Greetings and Music on Hold Can I use my audio files as a Greeting? It is a required field? Can I set a custom Music on Hold for every Queue? Is there a default Music on Hold audio?

Call Agents Who can be set as a Call Agent for the Call Queue? Can my on premises Skype for Business users be Call Agents? How many people can be added as Call Agents? Will my Call Agents be anonymous to the callers?

Call Queue Agents Supported Clients BRK3055: Plan and deploy Skype for Business Voice Devices Thursday, September 29, 10:45am 12:00pm

Attendant Console Partner Solution Call Queue Client Desktop Client

Call Control Settings Can I control the size of the Queue? What happens when my Call Queue is full? What if the call has been waiting in the Queue for too long?

Call Queue PowerShell cmdlets

SCENARIO: MINIMUM COST FOR: 100 Phone Users 40 Concurrent Calls capacity 3,000 minutes per person 1. ON- PREM SOLUTION OPTIONS 1A. LOCAL PRI CIRCUITS FOR DIAL TONE 2 PRI CIRCUITS: $1,100 UNLIMITED LOCAL CALLING: $120 10,000 MINUTES LONG DISTANCE CALLING @ $0.04: $400 TOTAL MONTHLY COST: $1,620 2. PBX/EQUIPMENT/MAINTENANCE OVERHEADS AVERAGE ANNUAL COSTS PER USER (SETUP/DEVICE COSTS EXCLUDED) PBX COST (60 month term) $ 132.20 PBX SYSTEM MAINTENANCE: $57.89 PERSONNEL COSTS TO RUN SYSTEM: $48.00 POWER COSTS: $2.44 RACKSPACE COSTS: $2.21 TOTAL ANNUAL COST: $242.74 TOTAL MONTHY COST PER USER: $20.23 1B. SIP TRUNKS- G.711 COMPRESSION 4.5 MEGS MPLS: $700 40 CALL PATHS @ $16: $640 10,000 MINUTES LONG DISTANCE CALLING @ $0.02: $200 TOTAL MONTHLY COST: $1,540 1C. SIP TRUNKS- G.729 COMPRESSION T1 MPLS CIRCUIT: $280 40 CALL PATHS @ $16: $640 10,000 MINUTES LONG DISTANCE CALLING @ $0.02: $200 TOTAL MONTHLY COST: $1,120 3. PER USER PER MONTH COST FOR ON-PREM PBX SOLUTION SUMMARY VIEW, PUPM with 1,000 minutes of calling LOCAL PRI CIRCUITS: $36.43 SIP TRUNK-G.711 COMPRESSION: $35.63 SIP TRUNK-G.729 COMPRESSION: $31.43 4. PUPM with 3,000 minutes per person LOCAL PRI CIRCUITS: $44.43 SIP TRUNK-G.711 COMPRESSION: $39.63 SIP TRUNK-G.729 COMPRESSION: $35.43 MIN: $29.78 MAX: $55.88 MIN: $30.78 MAX: $45.68 MIN: $26.58 MAX: $41.48 MIN: $37.78 MAX: $63.88 MIN: $34.78 MAX: $49.68 MIN: $30.58 MAX: $45.48

SCENARIO: MINIMUM COST FOR 100 Phone Users 40 Concurrent Calls capacity 3,000 minutes per person 1. HOSTED PBX SOLUTION OPTIONS 2. PUPM STANDARD PACKAGE 1A. HIGH SPEED INTERNET (OTT NETWORK) ACCESS 100 HOSTED IP TEL USERS @ $28: $2,800 HIGH SPEED INTERNET CIRCUIT: $500 10,000 MINUTES INCLUDED @ $0: $0 TOTAL MONTHLY COST: $3,300 OTT NETWORK OPTION: $33.00 MPLS ACCESS OPTION: $33.50 3. PUPM with 3,000 minutes per person OTT NETWORK OPTION: $37.00 MPLS ACCESS OPTION: $37.50 MIN: $27.50 MAX: $40.33 MIN: $30.53 MAX: $38.83 MIN: $31.50 MAX: $40.33 MIN: $34.53 MAX: $38.83 1B. MPLS ACCESS 100 HOSTED IP TEL USERS @ $28: $2,800 3 MEGS MPLS CIRCUIT: $550 10,000 MINUTES INCLUDED @ $0: $0 TOTAL MONTHLY COST: $3,350

With PSTN Calling Service Users homed online, PSTN service provided by Microsoft No on premises Skype For Business infrastructure required Available in the US only With On Premises PSTN Connectivity via Cloud Connector Edition Users homed online, PSTN service provided by 3 rd party Deployment of Cloud Connector on premises required, cannot coexist with on premises deployment of Skype For Business/Lync Servers Available worldwide With On Premises PSTN Connectivity with an existing deployment Some users homed online, some users can be homed on premises, PSTN service provided by 3 rd party Maintaining of Skype For Business or Lync 2013 deployment required Available worldwide

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PATHS TO FULLY HOSTED E5 SOLUTION Full IT & End User Value E5 $35 Cloud PBX and PSTN Conferencing Advanced Security and Compliance End User and Organizational Analytics Step-Up +$15 E3 $20 Step-Up +$13 E4 $22