Introduction of Online Services into Volume Licensing

Microsoft Business Network &MSN Messenger Connect

Worldwide Licensing and PricingDecember, 2003

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Intro & Agenda

Intro • What are Online Services?

• Intro of Online Services on the Volume Licensing (VL) Jan. 2004 Price List

– Microsoft Business Network (MS Business Network)– MSN Messenger Connect (MSN Connect)

Agenda

• MS Business Network Product Intro (~10 min)

• MSN Connect Product Intro (~10 min)

• Online Services in VL Channel (~20 min)– Licensing Model– Program Impact

• Q&A (~10 min)

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Microsoft Business Network Product Introduction

Marcus Schmidt Product Manager,

MS Business Solutions

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Customer Example: Your Company Before MS Business Network

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EDI VAN

FaxFax

FaxFax

Automated Fax / e-m

ail

Automated Fax / e-m

ail

E-mailE-mail

Current ProblemsCurrent Problems Customer forced to deal with Customer forced to deal with

partners in 1: Many waypartners in 1: Many way Only partial integration with Only partial integration with

ERP systemsERP systems Many manual processes; possible Many manual processes; possible

lost or incorrect informationlost or incorrect information

Large RetailerLarge RetailerInternational Vendors & International Vendors & Service ProvidersService Providers

Transportation Transportation ManagementManagement

Domestic VendorsDomestic VendorsMid-sized retailer Mid-sized retailer

using auto PO using auto PO generationgeneration Retail Outlets & Retail Outlets &

Specialty RetailersSpecialty Retailers

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Customer Example: Your Company Using the Basic Service of MS Business Network

ERPSolutions

Orders Orders to Cashto Cash

Supplier Supplier VisibilityVisibility

LogisticsLogistics

Payment Payment SettlementSettlement

RegisterRegister

Large RetailerLarge RetailerInternational Vendors & International Vendors & Service ProvidersService Providers

Transportation Transportation ManagementManagement

Domestic VendorsDomestic VendorsMid-sized retailer Mid-sized retailer

using auto PO using auto PO generationgeneration Retail Outlets & Retail Outlets &

Specialty RetailersSpecialty Retailers

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Customer Example: Your Company Using the Optional Community Building Service in MS Business Network

Large RetailerLarge RetailerInternational Vendors & International Vendors & Service ProvidersService Providers

Transportation Transportation ManagementManagement

Domestic VendorsDomestic VendorsMid-sized retailer Mid-sized retailer

using auto PO using auto PO generationgeneration Retail Outlets & Retail Outlets &

Specialty RetailersSpecialty Retailers

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Customer Example: Your Company After MS Business Network

EDI VAN

BenefitsBenefits Assistance in building up Assistance in building up

partner communitypartner community Integrates communication methods Integrates communication methods Complete inter-business processesComplete inter-business processes Integration with GP at your company Integration with GP at your company

and your Trading Partner’s ERPsand your Trading Partner’s ERPs Leverage of Office as a business Leverage of Office as a business

process toolprocess tool

Large RetailerLarge RetailerInternational Vendors & International Vendors & Service ProvidersService Providers

Transportation Transportation ManagementManagement

Domestic VendorsDomestic VendorsMid-sized retailer Mid-sized retailer

using auto PO using auto PO generationgeneration Retail Outlets & Retail Outlets &

Specialty RetailersSpecialty Retailers

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All business documents sent via MBN are available in Microsoft Outlook All business documents sent via MBN are available in Microsoft Outlook

MBN Integration – Microsoft Outlook

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Microsoft Excel is the MBN template client and is used to Microsoft Excel is the MBN template client and is used to view, modify, create, and send MBN documentsview, modify, create, and send MBN documents

MBN Integration – Microsoft Excel

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MBN solutions documents are inserted directly into Great Plains software and are also MBN solutions documents are inserted directly into Great Plains software and are also always visible within Microsoft Outlook and Excel always visible within Microsoft Outlook and Excel

Screen Shot is needed

MBN Integration – Microsoft Great Plains

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MS Business Network Business Process Templates

Business document definitions (ex. Order, Order Change, Ship Notice, Invoice, etc…)Collaboration Definitions describing how these documents are related, viewed, and

created between companiesApplication Integration Profiles that describe how the solution integrates with

Microsoft Office, MBS applications, and other apps via BizTalk Server

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Product Introduction

Todd BiggsProduct Manager

MSN

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MSN Messenger Connect Overview

MSN Messenger Connect for Enterprises (MSN Connect), is an online subscription service enabled through and ISV solution that delivers a managed, audited, and logged instant messaging (IM) infrastructure for enterprise businesses connecting their employees to partners, vendors, and customers on the public MSN Messenger network.

• Establishes enterprise control over Instant Messaging (IM) identities• Enabling logging, auditing, and IM policy management• Enterprise IM control with anytime-anywhere and domain level control• A companion service to Microsoft Office Live Communication Server 2003• Connectivity to the 100+ million people on the MSN Messenger network

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Situation for Instant Messaging (IM)

Improved communication driving usage of IM• Presence: timely answers from contacts • Reduces telephone calls & e-mails

100 Million Workplace IM Users• Internal employees, customers & partners• 30% growth in users• 100% growth in minutes• Estimates range from 200M (GG) to 500M (Network provided)

Fragmented IM market• Many startups• Proprietary technologies• Consumer networks own users

Security and manageability are top issues for IT departments• 38% of information workers have at least one public IM client • Public IM moves as clear text across the firewall• Entry point for viruses and software conflicts• Lack of authentication and namespace integration

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Microsoft Smart Connected Organization

INFRASTRUCTURE SERVICES

Windows SharePointServices

Windows RightsManagement Services

Windows MediaServices

REAL-TIMECOLLABORATION

BUSINESS PROCESSCOLLABORATION

ASYNCHRONOUSCOLLABORATION

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MSN Connect: Identity Control

IM Server & Service PlatformIM Server & Service Platform

IdentityIdentityMgmtMgmt

ArchivingArchiving ReportingReporting AlertsAlerts

1.1. Corporate OwnershipCorporate Ownership2.2. Protecting Intellection Property Protecting Intellection Property 3.3. Naming ConventionsNaming Conventions4.4. Managed NamespaceManaged Namespace

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MSN Connect: Archiving & Reporting

IM Server & Service PlatformIM Server & Service Platform

IdentityIdentityMgmtMgmt

ArchivingArchiving

AlertsAlerts

ReportingReporting

1.1. Log text conversations Log text conversations 2.2. Reconstruct conversations Reconstruct conversations 3.3. Generate reports and auditsGenerate reports and audits

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Technical Overview

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Online Services in VL Channel- Licensing Model- Program Impact

Mark KuoProduct Manager

WWLP

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Online Services in Volume LicensingGoal

- Create consistent licensing model to be applied to all online services entering VL

Core Licensing Model:

Services Subscription License (Services SL)● Annual fee required for activation and maintenance of services for each company● Each Service SL will have its distinct set of benefits derived from basic services

User Subscription License (User SL)● Annual fee required for each individual user that accesses the online services. ● The user may use the online services from multiple devices.

Add-on Subscription License (Add-on SL)● Required for access to add-on services or functionalities.

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Licensing for MSN Connect

* Each Services SL grants one active domain and one blocked domain; additional Services SL can be acquired additional domains

@DomainA

@DomainB

Services SL* - annual fee for activation & maintenance of basic service

User SL – annual fee required for each user

Add-on SL – (TBD)

Server License – available from certified MS partners

Company A Premises

MSN Connect

MSN Connect

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Licensing for Microsoft Business Network 1.0

MS Business Network 1.0

MS Business Network 1.0

Company A Premises

Company D Premises

Company C Premises

Company B Premises

Services SL* - annual fee for activation & maintenance

User SL – annual fee required for each user

Add-on SL – annual fee for optional Community Builder functionality

* Number of Services SLs required matches the number of Server Licenses required. Note, for MS Business 1.0, customers may be eligible to receive a free Services SL.

Server License – required server license per server installation

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Special SL Grant for Microsoft Business Network 1.0

• Services SL is granted for free with Microsoft Business Network version 1.0.

• For customers who acquire a Server License for Microsoft Business Network 1.0 prior to March 1, 2005, we make a one-time non-perpetual license grant of a Services SL until the end of the customer’s term of enrollment.  – Customers who acquire a license and software assurance coverage

for Microsoft Business Network 1.0 server will receive upgrades and still be able to use the Services SL until the end of their enrollment terms. 

– Upon renewal of the Volume Licensing enrollment, the one-time Services SL grant is no longer effective and such customers may acquire a Services SL.

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Summary of Licenses Required

MSN Connect Microsoft Business Network 1.0

Services SL One active domain One block domain

Free in v.1.0

User SL

Add-on SL N/A Optional Community Builder functionality

Server License Available from certified MS Partners

L&SA licensed on a Per Server basis

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New Agreement

For Open License Value, Select Agreement and Enterprise Agreement (EA):

• At the beginning of the contract, the customer orders the quantity of desired subscription licenses

• Customer pays for 36 months of subscription• Customer may spread payments on the anniversary dates of the

contract

Order subscription licenses

Customer pays 36 months of subscription (can spread payments over 3 years)

= payment

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New Agreement

For Open Business and Open Volume Agreements:

• At the beginning of the contract, the customer orders the quantity of desired subscription licenses

• Customer pays for 2 years up front

Order subscription licenses

Customer pays for 2 years upfront

= payment

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Existing Agreement

For Enterprise Agreement (EA):

• Initial Order of SLs and Adding SLs after Initial Order

– Customer makes initial order at any time and pays for the stub period (between order date and next anniversary), prorated monthly (i.e. 9 months)

– At next anniversary, pay for the number of whole years remaining in the agreement after that anniversary date, spread over the remaining anniversary dates.

Order subscription licenses

At next anniversary, the customer pays for the number of whole years remaining in the contract as of the true-up anniversary (can

spread payments over the remaining years)

= payment

Customer pays for the stub period (between order date and next anniversary), prorated monthly (i.e. 9 months)

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Existing Agreement

For Open License Value and Select Agreement:

• Initial Order of SLs and Adding SL after Initial Order

– Customer orders additional SLs at any time– Customer pays for the stub period, prorated monthly– Customer may spread payments on the anniversary dates of the agreement

Order subscription licenses

Customer pays for the number of months remaining in the contract (can spread payments over the remaining years)

= payment

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Existing Agreement

For Open Volume and Open Business Agreements

• Initial order of SLs and Adding SLs after Initial Order

– Not possible

– We recommend that customers start a new Open Authorization, as two full years of the subscription must be paid up front, due to operational structure of the Open Agreement

Customer should not add to an existing Auth #, to avoid confusion with termination of existing agreement

= payment

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Activating Online ServicesMSN Connect

• For activation, customer, using their valid license agreement details, must go to MVLS site to click on a link for registration and for Online Service Keys. The link in MVLS is:

http://www.microsoft.com/net/services/msnmc/licensing

• For adding SLs, customer should place the order and return to the same site to edit the number of users and domains.

Microsoft Business Network

• For activation, customers should contact the Microsoft Activation Center by going to http://www.microsoft.com/licensing/ and clicking on the Online Services Product Key link to get your local call center number. Customer will receive their Online Service Keys upon phoning the call center with their valid license agreement details.

• For support entitlement, customers should register at:  

http://www.microsoft.com/BusinessSolutions/MBSRegistration

• For adding SLs, customer should place the order and return to Support Entitlement site to edit the number of SLs.

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Other Licensing and Program Details

Availability• Microsoft Business Network version 1.0

– Open Volume and Open Business: Jan., 2004– Open License Value, Select License, EA, and EA Subscription: Feb., 2004

• MSN Connect– Not available in any Open programs– Select License, EA, EA Subscription: Jan., 2004

Software Assurance Availability• Software Assurance is not available for SLs, as these license are

already subscription services with unique benefits

Enterprise Agreement• Online services sold through the EA as Additional Products• No true-down for User SLs

Product Pool • MS Business Network and MSN Connect licenses are included in the

“Servers and Business Solutions” Pool

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Resources

Microsoft Business Network• http://www.microsoft.com/BusinessSolutions/mbn • Marcus Schmidt marcussc@microsoft.com

MSN Connect• http://www.microsoft.com/net/services/msnmc • Todd Biggs toddb@microsoft.com

Licensing & Pricing• http://infoweb/licensing• Mark Kuo mkuo@microsoft.com

Appendix

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Estimated Retail Prices for Select A Level

Component Estimated Retail price

MS Business Network version 1.0

MBN Standard Server 1 YR L&SA $366

MBN Standard Server 1 YR SA $74

MBN Professional Server 1 YR L&SA $1,835

MBN Professional Server 1 YR SA $367

MBN Services Subscription 1 YR N/A

MBN User Subscription 1 YR

MBN Community Builder Add-On 1 YR

MSN Connect

MSN Messenger Connect Services Subscription 1 YR $2,377

MSN Messenger Connect User Subscription 1 YR $10

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License Point Values

Component Values

Microsoft Business Network version 1.0

MBN Standard Server 1 YR L&SA 2

MBN Standard Server 1 YR SA 1

MBN Professional Server 1 YR L&SA 8

MBN Professional Server 1 YR SA 3

MBN Services Subscription License 1 YR N/A

MBN User Subscription License 1 YR 0

MBN Community Builder Add-On Subscription License 1 YR 0

MSN Connect

MSN Messenger Connect Services Subscription 1 YR 38

MSN Messenger Connect User Subscription 1 YR 0