1 server and cloud enrollment (sce) l200 licensing overview volume licensing

1

Server and Cloud Enrollment (SCE)

L200 licensing overview

Volume Licensing

What you will learn

Implications for ECI customers

Implications for EAP customers

How Server and Cloud (SCE) Enrollment works

Server and Cloud Enrollment (SCE) value proposition

Using Microsoft Payment Solutions

2

Server and Cloud Enrollment (SCE) value proposition

3

SCE recapA new licensing program for highly committed customers

*For qualifying customers

Easy onramp to cloud

Application license mobility

Cloud management benefits

Subscription flexibility

Consistent cloud OS platform

Access to newest technologies

Reduce license management

Single enrollment for server and cloud technologies

Best pricing and terms

Unlimited support*

Enterprise product rights predictability

License

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1Core Infrastructure Suite (CIS) is available (Windows Server + System Center)

2Includes Windows Azure by default

3Standardized discounts & terms

4Subscription option added (no more deferred license)

With four important additions

SCE is an evolution of the EAP

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HowServer and Cloud Enrollment (SCE) works

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*BizTalk Server and SharePoint Server can also be enrolled as part of the application platform component

Core InfrastructureProducts

CIS SKUs (Windows Server + System Center)

RequirementsCIS coverage for all Windows Servers

ApplicationPlatformProducts

SQL Server, SharePoint Server & BizTalk Server*

RequirementsFull SA coverage

DeveloperPlatform

ProductsVisual Studio Ultimate and Premium

RequirementsFull SA coverage

WindowsAzure

ProductsAll Windows Azure Cloud Services

Available automaticallyCan also be licensed standalone

+ Access to Windows Azure

How SCE worksCustomer makes an installed base commitment to one or more of the available components

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Building your SCEOptions and minimum requirements for covering your SCE commitment

Core InfrastructureCIS Datacenter

CIS StandardCIS Datacenter w/o Windows ServerCIS Datacenter w/o System CenterCIS Standard w/o Windows ServerCIS Standard w/o System Center

All licensed Windows Server deployments must be covered with one of the above SKUs.

ApplicationPlatformSQL Server CAL

SQL Server Enterprise per coreSQL Server Business Intelligence ServerSQL Server Standard per coreSQL Server Standard ServerSQL Server Parallel Data Warehouse per coreBizTalk Server Enterprise per coreBizTalk Server Standard per coreBizTalk Server Branch per coreSharePoint Server

DeveloperPlatform

Visual Studio UltimateVisual Studio PremiumVisual Studio Test ProfessionalVisual Studio Team Foundation Server CALMSDN PlatformsVisual Studio Deployment StandardVisual Studio Deployment Datacenter

WindowsAzure

All Windows Azure cloud services

Minimum order requirements

Minimum order requirements

Minimum order requirements Minimum order requirements

50 processors via 25 licenses (each license covers up to 2 physical processors) or more of one or a combination of Core Infrastructure Server Suites Standard or Datacenter

SQL Server: 50 SQL Server per core or 5 SQL Server per server with 250 CALsSQL Server PDW: 32 coresBizTalk: 24 cores of any editionSharePoint Server: 5 servers

20 licenses of any combination of Visual Studio Ultimate and Visual Studio Premium

Or can be licensed standalone

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All products on the EA additional products list can be added, except for products available in SCE components

The following are available as additional products:

• Visual Studio Pro • SQL Server Enterprise Edition Server

(non-core) SA only• System Center Datacenter and

Standard Edition (for managing non-Windows Server deployments)

Subscription is not available for any additional products

Additional products

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How to establish the customer footprintBaseline licenses must be identified for all affiliates being included in the SCE

1. 3.2.

• Any existing licenses deployed with continuous SA (across all enrollments)

• Any existing licenses deployed without continuous SA

• New licenses that are being purchased

• Renew SA for existing license current with SA

• For existing licenses without SA:

o Add subscription SKUs

Oro Add L&SA at

signing

• All baseline licenses for Windows Server must be covered with System Center

• Coverage achieved through adding CIS SKUs

• “CIS without” SKUs are available when Windows Server or System Center SA is current

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SC

E e

nro

llmen

t scen

ario

Enrolling in the core infrastructure componentStep 1: Identify the installed base

Existing baseline CIS licenses in use with SA

50 CIS Datacenter 100 CIS Standard

Standalone licenses in use with SA

50 Windows Server SE

Licenses in use without SA10 Windows Server

DC40 Windows Server

SE

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CPSSA

L&SA*

L&SA

Or subscription

*Customers can elect to subscribe to units if they want the flexibility to true down (if they plan to retire workloads or move to the cloud for example)

Existing baseline CIS licenses in use with SA




Licenses in use without SA10 Windows Server

DC40 Windows Server

SE

Enrolling in the core infrastructure componentStep 2: Renew SA in SCE; add license & Software Assurance (L&SA) or subscription

SC

E e

nro

llmen

t scen

ario


50 CIS SE without Windows Server

10 CIS DC 40 CIS SE

10 CIS DC 40 CIS SE

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Customers can purchase subscriptions to cover licenses without continuous Software Assurance at signing or for new deployments

Subscription provides flexibility through:

• Lower upfront costs when signing a SCE

• More purchasing options for new units

• Ability to reduce licenses annually when retiring workloads, consolidating or migrating to the cloud

Subscription SKUs will be sold via Monthly Subscription Units (MSUs)

Subscription in SCE

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*Subscription pricing percentages are set based on non-SCE discounted licenses (standard waterfall discounts apply). Visual Studio will be priced at 46% of a license.

Pricing

MSUs allow customers to pay for each month deployed and will be priced at 35.5% of the license only price*

Minimums

Customers must commit to a minimum of 12 months

Reductions

Customers can reduce subscription units no longer being used for deployed workloads at each anniversary date

Buyouts

If customers do not renew or wish to own, buyout pricing will be set at year 3 true up pricing

Subscription overview

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End of year 3 options:• Renew • Buy-out• Stop using

Su

bscrip

tion

scen

ario

How subscriptions workAdding subscription at signing to meet installed base coverage requirements

Customer adding MSUs at signing:

+ 10 CIS DC subscriptions (via MSUs)

+ 25 CIS SE subscriptions (via MSUs)

10 x MSU price x 12 months


Year 1

Year 1 Year 2 Year 3

Automatic annual billing



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Customer reduces subscription licenses:

+ 10 CIS DC subscriptions (via MSUs)





Year 1

- 5 CIS SE subscriptions (via MSUs)

Year 2

20 (25-5) x MSUprice x 12 months




License reduction process:Submit via METEAOP formSubmitted during annual order period

How subscriptions workLicense reductions

Su

bscrip

tion

scen

ario

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How subscriptions workAdding subscription units at true up in years 1 & 2

Su

bscrip

tion

scen

ario

Customer adding MSUs at true up:

+ 5 CIS SE subscriptions (Deployed in month 9 of first year via MSUs)

Month 9X




True ups in years 1 & 2:• Customers pay for each month

deployed in previous year• Customers pay forward 1 year

5 x MSU price x 15(3 + 12) monthsYear 1

true up

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Year 3 true ups:Customers pay for each month deployed in previous year

End of year 3 options:• Renew • Buy-out• Stop using

How subscriptions workAdding subscription units at true up in year 3

Su

bscrip

tion

scen

ario

Customer adding MSUs at true up:

+ 5 CIS SE subscriptions (Deployed in month 9 of first year via MSUs)

Month 9X


Year 1true

up



5 x MSU price x 15(3 + 12) months


Year 3true

up

Month 9X5 x MSU price x 3

months

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Cloud management benefit

*Limited to 10 eligible Windows Azure VOSE instances for each CIS license

SCE Customers who enroll in the core infrastructure component can install System Center and manage Windows Azure Virtual Operating System Environments (VOSEs). Eligible Windows Azure VOSEs instances includes:*

• Windows virtual machine instances

• Cloud service instances (web and worker role)

• Storage accounts• SQL databases• Website instances 19

• New version rights

• Spread payments

• Step-up availability

• Training

• TechNet

• Deployment Planning Services (DPS)

• 24x7 problem resolution

• Extended hotfix

• Cold back-up for disaster recovery

The benefits of Software AssuranceReduce risk and maximize the value of your investment

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Moving IT workloads to the cloud

Envision solutions, plan on-premises, hybrid, or cloud deployments with planning services

License mobility through SA allows you to deploy certain application software on premises or in the cloud without additional licensing

Support hybrid environments, enable cloud services with new products versions

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*Customers who opt in to unlimited support lose the ability to convert incidents (earned through SA on SCE products) to premier hours**Minimum is for each component enrolled and the actual dollar amount varies by geography

Unlimited problem resolution support*Unlimited support for customers as they deploy on Microsoft’s server & cloud technologies

Opt-in SA benefit only available through the SCE*

Unlimited premier reactive support incidents for core infrastructure and application platform components

Available to our largest customers with premier services agreements (minimum SA spend of $250,000 per year**)

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SCE recapA new licensing program for highly committed customers

*For qualifying customers

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Easy onramp to cloud

Application license mobility

Cloud management benefits

Subscription flexibility

Consistent cloud OS platform

Access to newest technologies

Reduce license management

Single enrollment for server and cloud technologies

Best pricing and terms

Unlimited support*

Enterprise product rights predictability

License

Implications for EAP customers

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Potential areas of impact

Subscription replaces deferred license

Product edition availability

Discount changes

Impact for EAP customers

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EAP pricing SCE pricing Net change

• 15% discount on license & SA

• Slightly lower discounts on premium editions

• Slightly higher discounts on standard editions

• 5% discount • Incremental 5% renewal discount

• Subscription pricing • Subscription pricing will be 42% higher than SA only

• 40% premium edition license discount (license portion of L&SA only, not SA)

• 15% standard edition license discount

• No discount

• Non-current licenses deferred at SA only pricing

New purchases

SA renewals

Licenses without SA

SCE discount changes for EAP customers

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EAP product edition availability changes

• SQL Server Enterprise Edition Server is no longer available for new purchases

• These are not required in baseline requirements

• Customers can renew SA on perpetual licenses in additional products

• Not available under subscription

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This edition was retired with the launch of SQL Server 2012, however, customers should renew SA to:

• Access future releases of SQL Server & other SA benefits

• Maintain license mobility for virtual environments

If SA is not renewed, it cannot be attached later

• New licenses available through additional products

• Maintaining SA ensures customers can consume MSDN benefits; access latest versions of VS, TFS and MSDN software

Each product has unique Software Assurance value

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• Buyout provides lowest cost for ownershipo Highly discounted license; SA at 5%

discount in SCEo SQL Processor buyouts get core grants

• SQL Server Enterprise Edition (non-core)o Buyout and renew SA (in add’l products)o Or subscribe to core licenses

Options for customers with deferred licenses

• Reduce short term costs by avoiding the EAP buyout

• Flexibility to reduce these licenses annually

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*Renewal costs assume 5 cores per proc average shown through inventory report maintained by the customer

EA

P re

new

al sce

nario

Customers with deferred licenses

Perpetual licenses under SA

50 SQL Server EE procs100 SQL Server SE procs

EAP license position CPS

Deferred licenses brought in as SA only

10 SQL Server EE procs

SA

Buyout & SA

Or subscription

Renew SA on 50 EE cores

250 EE cores 500 SE cores

Buyout 10 EE procs


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EAP license position CPS

Renewal costs in EAP if SCE didn’t exist

Renewal cost comparison



*Renewal costs assume 5 cores per proc average shown through inventory report maintained by the customer** Pricing estimates based on US Open NL ERP

EA

P re

new

al sce

nario


SQL EE cores SA: $275k/yrSQL SE cores SA: $145k/yrSQL EE cores SAPriorL: $55k/yrTotal 3yr cost: $1.43m**

SA

Buyout & SA

Or subscription



Buyout 10 EE procs


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EAP license positionSA

CPS

Renewal costs in EAP if SCE didn’t exist

Renewal cost comparisonSCE cost with buyout

SCE cost with subs



*Renewal costs assume 5 cores per proc average shown through inventory report maintained by the customer** Pricing estimates based on US Open NL ERP

Buyout & SA

Or subscription

EA

P re

new

al sce

nario



SQL EE cores SA: $314k/yrSQL SE cores SA: $137k/yrBuyout: $107kTotal 3yr cost: $1.46m


Buyout 10 EE procs


SQL EE cores SA: $261k/yrSQL SE cores SA: $137k/yrSQL EE cores subs.: $78k/yrTotal 3yr cost: $1.42m

SQL EE cores SA: $275k/yrSQL SE cores SA: $145k/yrSQL EE cores SAPriorL: $55k/yrTotal 3yr cost: $1.43m**

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Implications for ECI customers

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Two main areas of impact

Installed base coverage commitment to CIS

Discount changes

Impact for ECI customers

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Discount changesECI comparison

~20% off CIS license & SA (15% SCE + 5% CIS)~10% off CIS SA renewals (5% SCE + 5% CIS)

25 license minimum

All licensed Windows Server deployments must be licensed with an appropriate Core Infrastructure Suite SKU

20% discount on CIS license & SA20% discount on CIS SA renewals

25 license minimum

No installed base coverage requirement

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Partial coverageCustomers who have only partial coverage

Good coverageCustomers trending towards full coverage

ECIWindow Server + System

Center

ECI transition implicationsThe SCE is not for all ECI customers

Existing ECI

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Customer licensingpreference


Partial coverageCustomers who have only partial coverage

Good coverageCustomers trending towards full coverage


Center

Existing ECI

Microsoft renewal offer

Effective discount levels

Renew CIS SKUs in Select/EA

5% L&SA discount 5% SA renewal discount


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EC

I ren

ew

al sce

nario

Partial coverageCustomer with 335 Windows Servers: 45% SC coverage, 70% SA coverage

Existing ECI customer license footprint

CIS licenses in use with SA

50 CIS Datacenter

100 CIS Standard


10 WS Datacenter

75 WS Standard

Licenses in use without SA


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EC

I ren

ew

al sce

nario

Partial coverageCustomer with 335 Windows Servers: 45% SC coverage, 70% SA coverage Option 1: Renew into EA additional

products/SelectSoftware Assurance renewal

50 CIS Datacenter 10 WS DC

100 CIS Standard 75 WS SE



50 CIS Datacenter

100 CIS Standard


10 WS Datacenter

75 WS Standard



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Option 2: Sign SCE, incrementally add

New L&SA purchase

10 CIS DC w/o WS

75 CIS SE w/o WS

Subscription

100 CIS SE

Estimated SCE renewal is 61% higher than renewing CIS SKUs in Select Plus*

EC

I ren

ew

al sce

nario

Partial coverageCustomer with 335 Windows Servers: 45% SC coverage, 70% SA coverage Option 1: Renew into EA additional

products/SelectSoftware Assurance renewal

50 CIS Datacenter 10 WS DC

100 CIS Standard 75 WS SE



50 CIS Datacenter

100 CIS Standard


10 WS Datacenter

75 WS Standard



* Pricing estimates based on US Open NL ERP

Guidance: Explain SCEs role in the cloud OS vision; don’t force a deal where customers won’t commit

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Partial coverageCustomers who have only partial

coverage

Good coverageCustomers trending towards full

coverage

Existing ECI

Renew into SCE

15% incremental new unit discount 5% incremental SA renewal

discount



Center


Microsoft renewal offer

Effective discount levels

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Renew CIS SKUs in Select/EA

5% new unit discount 5% SA renewal discount


Guidance: Renew into SCE

Option 1: Sign SCE

New L&SA purchase

5 CIS DC w/o WS

10 CIS SE w/o WS

SA renewal

50 CIS Datacenter

100 CIS Standard

Subscription

10 CIS SE

Estimated SCE renewal is 3% higher than renewing CIS SKUs in Select Plus*

EC

I renew

al e

xam

ple



50 CIS Datacenter

100 CIS Standard


5 WS Datacenter

10 WS Standard


10 WS SE

Good coverageCustomer with 175 Windows Servers: 85% SC coverage, 94% SA coverage

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Guidance: Lead with SCE, but prioritize System Center component renewal


50 CIS Datacenter

100 CIS Standard


200 WS Standard

200 SC OpsMan


10 WS SE

Option 2: Renew CIS in Select; drop SA on SC Comp

Option 1: Renew into SCE

SA renewal

50 CIS Datacenter 200 WS Standard

100 CIS Standard

SA renewal

50 CIS Datacenter

300 CIS Standard

Subscription

10 CIS SE

Dropping SA on System Center components could save 20%*

EC

I ren

ew

al sce

nario

Coverage through componentsCustomer with 365 Windows Servers: 96% SC coverage, 97% SA coverage

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As customers renew into the SCE, excess license grants may help them meet SCE requirements

Renewing SA on these licenses may result in excess grants:

• Windows Server Enterprise Edition

• System Center Enterprise Edition

• System Center components

• CIS Standard Edition & Enterprise Edition

Customers with these licenses will need extra consideration at renewal

Excess license grants

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License grant at renewal2 Windows Server Standard (2:1)Customers running 2 VMs or less and/or licensing servers with 1-2 procs have an excess WS SE license

2 System Center Standard (2:1)Customers running 2 VMs or less and/or licensing servers with 1-2 procs have an excess SC SE license

System Center Suite (1:1)Customers with multiple components on a server have an excess license

CIS Standard Edition (2 proc) (1:1)Customers who needed 2 CIS EE/SE licenses for a 2 proc server, now may only need 1 CIS SE license for that server, resulting in an excess CIS SE license

SCE implicationsExcess WS SE grants can be used to meet 100% WS SA requirementSystem Center coverage requirements still applyExcess SC SE grants can be used to meet 100% SC coverage

Excess CIS SE grants can be used to meet SCE coverage requirements

Current license w/SA

Windows Server Enterprise Edition

System Center Enterprise Edition

System Center components

CIS Enterprise Edition (1 proc)CIS Standard Edition (1 proc)

Excess license grantsLicense grants when renewing into Windows Server and System Center 2012

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Current pricing

L+SA annualized

Window Server SE

System Center SE

$437

$437

-5%

-20%

EA/Select CIS SE

ECI CIS SE

$830

$699

Pricing changes for ECI customers

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Current pricing

L+SA annualized

Window Server SE

System Center SE

$437

$437

Window Server SE

System Center SE

$437

$437

New pricing

-5%

-20%

-5%

-15%

EA/Select CIS SE

SCE CIS SE

$830

$706

EA/Select CIS SE

ECI CIS SE

$830

$699


~20% Discount

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Current pricing

L+SA annualized

Window Server SE

System Center SE

$437

$437

Window Server SE

System Center SE

$437

$437

New pricing

Current pricing

One year SA

Window Server SE

System Center SE

$188

$188

-5%

-20%

-5%

-15%

-20%

EA/Select CIS SE

ECI CIS SE

$375

$300

EA/Select CIS SE

SCE CIS SE

$830

$706

EA/Select CIS SE

ECI CIS SE

$830

$699

0%


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Current pricing

L+SA annualized

Window Server SE

System Center SE

$437

$437

Window Server SE

System Center SE

$437

$437

New pricing

Current pricing

One year SA

Window Server SE

System Center SE

$188

$188

-5%

-20%

-5%

-15%

-20%

EA/Select CIS SE

ECI CIS SE

$375

$300

EA/Select CIS SE

SCE CIS SE

$830

$706

EA/Select CIS SE

ECI CIS SE

$830

$699

0%

-5%

EA/Select CIS SE $357Window Server SE

System Center SE

$188

$188

-5%New pricing SCE CIS SE $339 ~10%

Discount


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ProgramCurrent Pricing

Discount on Standalone

New PricingDiscount on Standalone

EA/Select CIS SE $830 5% $830 5%

ECI CIS SE $699 20% $706 ~20%

ProgramCurrent Pricing

Discount on Standalone

New PricingDiscount on Standalone

EA/Select CIS SE $375 n/a $357 5%

ECI CIS SE $300 20% $339 ~10%

How will this impact pricing for customers?

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Using Microsoft Payment Solutions

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Microsoft Payment Solutions helps customers expand their IT purchasing power and improve cash flow with an easy, flexible and affordable payment plan aligned to their budgetManage payment timing Manage cash flow strategically

Close budget gaps Align payment with use

Microsoft Payment Solutions is available in United States, Canada, United Kingdom, Germany, Spain, Belgium, France, Italy, Switzerland, The Netherlands, Australia, New Zealand, Japan and Brazil For informational purposes only. This does not constitute an offer of credit by Microsoft or any affiliate of Microsoft. To receive financing, a customer must be credit-approved by the applicable third-party financing provider. The financing agreement sets forth the terms and conditions on which financing is offered.

Deferred payment option: Customer can defer making SCE payments for up to six months when there is an immediate need but budget isn’t available till the next fiscal year$0

Ramped payment option: Customer can pay less in the near term and then increases payments in later periods to match to their return of SCE investment or when more funds are available

Monthly/quarterly payment option: Customer can spread the annual SCE expense including any true-ups over the rest of the contract term with equal, predictable payments

Microsoft Payment SolutionsEasing the transition from ECI and EAP to SCE

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Problem

Flexible payment solutions

Scenarios

For some customer scenarios, signing a SCE will increase costs due to the installed base coverage requirements

• Option 1: Customers with budget constraints can defer making payments until their next fiscal year starts

• Option 2: Customers with budget constraints can ramp their payments over time, instead of making three equal payments each year

• Option 3: Customers who want to manage their cash flow can make equal monthly or quarterly payments over the term or arrange monthly payment for subscriptions. (annual subscription commitment is still required)

• Installed base coverage: Customer faces an incremental upfront cost to meet SCE installed base requirements for Software Assurance

• Cover Windows Server with System Center: Customer must purchase additional System Center licenses to cover the entire Windows Server deployment

• Deferred licenses in EAP Renewals: Customer has a large amount of deferred Licenses in their EAP and will need to buyout or renew into subscription

• Subscription in the SCE: Customer must pay the annual subscription cost upfront each year

Flexible options manage payment challenges

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Planning for FY14

July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June

SCE: Launch November 10th

ECI Available

EAP Available

SCE CIS DC Promotion: Additional 15% off CIS (WS/SC) DC

SCE SKUs on Preview Pricelists

SCE SKUs Available: November 1st

Windows Server 2012 R2 SKUs available: November 1st

90 day grace period until 31st Jan 2014

SCE Only

Program availability & launch

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© 2013 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista 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.

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