Licensing Strategies for New Innovations

Top Negotiating Tips to save money on your IT Budget - IBM KNOWS! Nicola Creary WW Competitive Evangelist and Project Liberate Sales Leader

© 2011 IBM Corporation

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The information contained in these materials is provided for informational purposes only. While efforts were made to verify the completeness and accuracy of the information contained in these materials, it is provided AS IS without warranty of any kind, express or implied. IBM shall not be responsible for any damages arising out of the use of, or otherwise related to, these materials or any other materials.

Assumptions and calculations of prices within this presentation The Select Prices were calculated based on the Microsoft Open Volume Price published under https://partner.microsoft.com/US/licensing/salesresources/pricelists/40018463 For Select Level A we assume (based on customer information) 83.5% (16.5% discount) off the published Microsoft Prices. We assumed that the conversion factors for the different Levels are the same factors for the Enterprise Agreement and calculated the Prices for the other Levels based on the aforementioned Level A price.

Therefore, the prices within this presentation are only estimated prices based on the aforementioned sources, assumptions and calculations.

Agenda Twitter Hashtag #PLUG27

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What's IBM doing talking about Microsoft Licensing?

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Microsoft Enterprise Agreements

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Take-away Points

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Q&A

Microsoft Licensing Analysis Twitter Hashtag #PLUG27

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Share Best Practices on Enterprise Agreements

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Review IBM and Analysts Negotiating Tips

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Educational and Customized Presentations

Information from Analysts Twitter Hashtag #PLUG27

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Forrester ● Successfully Negotiating Your Microsoft Licensing Agreement Seminar

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Directions on Microsoft ● Understanding Software Assurance ●

Licensing Boot Camp

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Gartner ● Best Practices for managing Microsoft licenses ●

Microsoft Licensing Negotiations: Getting the best deal

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5 leverage points to use when negotiating with Microsoft

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Customers report saving an average of 40% - 70% off their Microsoft Enterprise Agreement over three years. ●

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Over 1500 Clients!!

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$5B in estimated SAVINGS!

2011

Large Credit Card Company saved an estimated $13M over three years, by reevaluating their deployment options for Office Professional.

2005 Large Package delivery company saved an estimated $20M by building a custom license strategy for their Microsoft products, based on end-user segmentation. ●

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Microsoft Licensing and Enterprise Agreements

Microsoft Volume Licensing Options Program

Select Agreement – 3 year Contract by Product

Main Features

Why buy it?

Products can be purchased at one time or over three years.

Better discounts for volume purchases – compared to published List Price.

Per Product purchases.

Software Assurance optional – saves cost.

Volume Discounts available with bulk purchases.

Time purchases for better discounts. Best server discounts.

Software Assurance Available for selected products. License mgmt tool needed. 5958156

Easiest desktop license management for large companies. Annual payments over 3-year term Upgrade rights included. Enterprise Agreement (EA) – 3 year contract by Bundles.

Includes 10% in Services for Deployment. Servers, others can be added under separate contract. Gets rid of Compliance/Audit issues.

Standardize desktop for enterprises. Terms negotiable.

Enterprise Agreement Strategy Reason # 1 Create an annual cash flow from Top Customers

New licensing created the annuity

- Leveraging market dominant products

Windows OS Office

- Eliminate upgrade purchase options - Compliances issues - New Payment alternatives

Microsoft helps customers implement pilots to develop the usage of new products.

Enterprise Agreement Strategy Reason # 1 Create an annual cash flow from Top Customers

New licensing created the annuity

- Leveraging market dominant products

Windows OS Office

- Eliminate upgrade purchase options - Compliances issues - New Payment alternatives

Microsoft helps customers implement pilots to develop the usage of new products.

Reason # 2 Grow Server Business

Include Core and Enterprise CAL in a new / renew EA

Core CAL (Client Access Licence) is a bundle of CALs

Enterprise CAL

Windows CAL Exchange CAL Sharepoint CAL SCCM CAL

Sharepoint ENT CAL Exchange ENT CAL Lync Std/ENT CAL SCOM

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Breakup of Bundle Cost End-user CAL licenses

20%

Mature products with long life-cycles and upgrades.

Server and LOB applications

A charge to have Software Assurance for Windows OS

80%

Core CAL Or E-CAL

Office Suite + Desktop OS

Office Pro, Standard or Open Source? Twitter Hashtag #PLUG27

Product Word Excel PowerPoint Outlook OneNote Publisher Access InfoPath Communicator SharePoint Workspace(formerly groove) Advanced Server Integration Features

Office Professional Plus 2010

Office Standard 2010

Release and Deployment of Office

Release and Deployment of Windows

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Best Practices based on Analysts Recommendations.

What Options do You have? Twitter Hashtag #PLUG27

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Buy or Renew a Full Enterprise Agreement: ●

True-up available, upgrade immediately.

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Drop the Enterprise Agreement completely: ●

Depending on Deployment and Life-cycle.

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Purchase only those licenses you need using Select or Open Agreements. ●

Drop products or SA you no longer need or see value in – can replace many with Open Source or 3rd party alternatives.

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Purchase new perpetual license over 3 years with Software Assurance (SA) included. ● SA is useful if a new release happens within 3 years and you will use it.

Cost Savings Example ABC Company – 250 users @ $178.6 per user

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Option 1 – Renew the EA. Option 2 – Servers only renewed, using Office without Upgrade rights, and Windows OEM.

Recommend Symphony as an alternative

MS EA Enterprise Desktop This will force a full (proprietary) collaboration model

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Enterprise Desktop

Professional Plus

VDI/Desktop Optimization Pack

Lync/Office Communications Ent CAL

Communicator/Lync

Office SharePoint Enterprise CAL

SharePoint Workspace

Office Exchange Enterprise CAL

Integrated Electronic Forms/InfoPath

Windows Rights Mgmt Services CAL

Information Rights & Policy

Microsoft Operations Mgr Client OML

Access

Application Virtualization & Streaming

Standard

Forefront Security Suite

Publisher

Core CAL Suite

OneNote

Windows Server CAL

Power Point

Word

Based on Microsoft public information www.microsoft.com

Excel

SW Asset Inventory Services Advanced Group Policy Management Recovery & Diagnostic Toolset

Windows 7 Enterprise Four Virtual Operating Systems Windows BitLocker Drive Encryption Multi-lingual User Interface (MUI) Subsystem for Unix-Based Apps (SUA)

WebApps

Office Exchange Server Std CAL

Systems Management Server CAL

VDI/Desktop Optimization Pack

Plus

Lync/Office Communications Std CAL

Office SharePoint Server Std CAL

Windows Enterprise +

Office Professional

Optmized Windows Client SA

Enterprise CAL Suite

Outlook

Windows OS Business

Due Diligence Twitter Hashtag #PLUG27

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Is your LAR your friend?

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Ask questions of Microsoft in written form

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Get Your Legal Council to review Master contract and License PUR

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Explore license implications of new technology and interdependencies (ECAL)

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Is there a valid business reason to upgrade

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Match your deployment strategy with MS product release schedule

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Remember -- 24 x 7 Telephone Tech Support is NOT included in SA

External Customer Site -

Resources

http://www .01.ibm.com/software/info/reducecost/license_optimization.html Resource Request - [email protected]

@mslicensingguru

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