An Evolving Channel in the CloudSteven MartinGM, Windows Azure Marketing & Operations

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Partner channel was primarily transactional

We were busy winning the hearts and minds of the IT professional (sold directly to IT)

Large transaction incentives for resale

A little about meI started out as a SQL Server VAR

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App services

Data services

Infrastructure services

SQL database HDInsight Table

Blob storage

Virtual machines

Virtual network VPN

Traffic manager CDN

A little about Azure

Mobile servicesCaching Identity

Integration

Service bus Media HPC AnalyticsWebsites

Cloud services

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Companies of all sizes

Small

Large

System IntegratorsDistributors ResellersISVs/CSVs

Alignment across all businesses

Microsoft | EMEA Channel Partner Conference 2014

Services

Channel Incentives

Azure in EA – Drive for SimplificationCatego

ryChallenge Change What this means for customers

Pricing• Commitment discount was the product

of VL price level (A-D) and commitment volume(Tiered discount in portal)

• Removal of tiered discounts for Monetary Commitment

• CPS shows actual price and invoice confusion is eliminated

Pricing • Higher usage rates in place for consumption of Azure in excess of monetary commitment

• Removal of Overage Pricing

• Commit SKU Price = Overage SKU Price• Adoption of Windows Azure without risk

Sales

• 12 month order required at anniversary each year.

• Challenges in top-up coverage alignment

• Same service alignment Challenges• Inconsistency with all other OLS

offerings

• Removal of 12 month subscription term

• Reduced credit and rebills• Eliminated confusion when topping up• Increased flexibility with less manual touch• Alignment with all other OLS offerings

Sales• No flexibility when ordering

coterminous, risk of overcommitting and losing money

• Inconsistency with all other OLS offerings

• Added option to increase or decrease commitment at anniversary

• Minimize customer risk • Alignment with all other OLS offerings

Pricing• Future Pricing table more than 50% of

an Azure CPS• Large manual effort to enter all future

SKU’s

• Removal of Future Pricing Table on CPS, now optional

• Future pricing table only required now for discounting• Portal records/manages prices, reducing risk of ops

errors/corrections

Operations• (SSA) Same Service Alignment Bug

generated large volumes of credit and rebills to correct Azure coverage periods

• SSA bug resolved • Elimination of credit and rebills to fix incorrect coverage dates generated by system

Reducing order complexity in Azure program ● Reducing order corrections for Azure customers ● Driving broad activation of Azure by EA customers ● Providing friction free access to Azure for EA customers ● Aligning Azure to EA purchasing motion ● Helping customers understand their Azure needs

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Business momentum

54%Fortune 500 companies signed up for Windows Azure

>1000New customers a day

35%Of all utilized revenue associated with Partners

2XGrowth of MSDN penetration since July 2013

2XCompute and Storage growth every 6 months

148%Windows Azure YoY

revenue growth

54%Fortune 500 companies signed up for Windows Azure

>1000New customers a day

35%Of all utilized revenue associated with partners

2XMSDN growth since July 2013

2XCompute and Storage growth every 6 months

148%Windows Azure YoY

revenue growth

Microsoft | EMEA Channel Partner Conference 2014

Services

Channel Incentives

Windows Azure Global Footprint

724 x 7 x 365 support. 90 markets worldwide. >$1bn invested in Azure expansion in 2014

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The partner channel is the key to success

Apps are going SaaS (both packaged & custom)

We are going to the cloud (fast)

2012

2013

2014

# of Azurecustomers

We know a few things about the future of compute:

1 2 3

LOB IT Mgmt Vertically Specific

Finance Marketing CRM

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We are committed to reducing operational and pricing

complexity, and maximizing agility for systems connected

to Microsoft.

This evolution is designed to enable success without

negatively impacting your bottom line

New realities — Evolving Channel

Partners are beginning to host solutions for customers

Customers are relying more on Distributors for value-add

Majority of revenue generated by channel

I have a new word for Partner…

Customer.

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Supporting LOB directly

Providing “first-call” support

Cloud capability as the “door opener”

Supporting IT’s “big picture” role

Continued annuities

Billable packaged services

SSAS— Solutions & Sales, As a Service

The partner of the future: Hosted solutions for customers

New relationships

New business model

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Provide your feedback on the sessions through the Conference App and be eligible to win one of five Nokia Windows Phone

8

Visit the Conference App now at partnerconferenceapp.com

.

ALL Partners who provide feedback through the Conference App will receive a one year subscription to Office 365 Home Premium

Let’s Break New Ground Together.

© 2014 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 presentations. 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 CONFIDENTIAL – FOR PARTNER USE ONLY. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Thank you.