Enhanced xsp Buying Program Channel Briefing

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1 Enhanced xsp Buying Program Channel Briefing Press Release Symantec Announces Enhanced Subscription-based Licensing Programme for EMEA Partners Pioneering offering provides Symantec partners with new opportunities for growth and profitability READING - UK September 13, 2010 Symantec Corp. (Nasdaq: SYMC) today announced its enhanced ExSP Licensing Programme across EMEA, which offers partners the choice of buying Symantec software via a new monthly subscription-based model. This will provide partners with greater flexibility in how they deliver solutions to their customers, particularly those within the small to mid sized business (SMB) market. This new model provides partners who sell Symantec-based services to the flexibility to reduce their upfront costs, accelerate profitability and offer pay-as-you-go managed services to their customers. Symantec has successfully offered its ExSP Programme to large service provider partners since As more and more partners find opportunities to provide managed services to their customers, Symantec is enhancing the existing programme to extend its benefits to partners of all sizes, specifically those who serve the SMB market. As a result, SMB customers will benefit from the ability to pay only for the services that they are using at any one time on a monthly basis, enabling them to scale solutions to meet demand. An additional advantage of the Programme is that it provides partners with the opportunity for more predictable revenue and rewards growth, reducing capital expense and accelerating profitability by eliminating the need to buy future licenses in advance. The Symantec ExSP Licensing Programme is open to partners enrolled in Symantec s Partner Programme who are qualified service providers, offering customers a combination of Symantec products with their own services. Keith Humphreys, analyst at eurolan commented: This is great news for the channel, helping partners make the transition to selling on an annuity basis is crucial. Symantec is making it very easy for its partners to take advantage of managed services opportunities. The ExSP Licensing Programme enables partners to broaden their offering, permitting an end to end Symantec solution.

2 Justin Griffiths, VP Partner Management & Marketing, Insight commented: Symantec is enabling partners like Insight to provide quality services/products to their hosting customers via a program that is truly flexible and meets the need of the growing SMB market Jason Ellis, VP of Symantec Channel, EMEA said: The ExSP Licensing Programme enables partners of all sizes across EMEA to easily maximise profitability and minimise upfront investments. With this subscription-based model, Symantec partners can license our solutions in a way that makes it easier than ever before to do business with customers. About Symantec Symantec is a global leader in providing security, storage and systems management solutions to help consumers and organizations secure and manage their information-driven world. Our software and services protect against more risks at more points, more completely and efficiently, enabling confidence wherever information is used or stored. More information is available at ### Symantec ExSP Licensing Programme FAQ Q: What is the new enhanced ExSP licensing programme? A: The enhanced ExSP model offers service providers monthly subscription licensing that aligns with the way they do business with their end-user customers. A flexible payment system allows partners to pay for the software actually used, the licensing programme helps partners reduce their upfront investment costs in the delivery of managed services. Partners will have greater flexibility in their ability to pair Symantec solutions with their services to provide differentiated bundles to meet their customers needs. Q: What is the difference from the old model? A: The new model features a simplified, streamlined process that enables channel fulfillment and makes the programme accessible to all segments of Symantec s partner community, including the growing SMB partner segment. Q: What is the role of the approved fulfillment partners in the enhanced ExSP programme? A: Approved Symantec fulfillment partners will collect the quarterly reporting from partners and submit to Symantec for invoicing. Fulfillment partners will also be supporting the service providers with this buying programme by proactively marketing the programme. Fulfillment partners can assist in the enrolment of service providers in the programme, enabling them to

3 have flexibility in doing businesses with their partners. Fulfillment partners will be set up to manage service providers with the correct processes that suit their business model. Q: Who are they are the approved fulfillment partners for this programme A: TBD Q: Who can participate in the programme? A: The enhanced ExSP is available to all service provider partners, including those serving the SMB community, making accessible to all service provider market segments Q: What is an eligible service provider? A: A service provider is a partner who provides integrated services to its end user customers. Integrated services means the combination of Symantec products with the Service Providers products and/or services marketed as a single service from the Service Provider. The Service Provider maintains ownership and support of the licenses and cannot resell them. Q: What was the structure of the previous buying programme? A: The legacy ExSP Programme was structured as a direct model with a revenue commitment to participate in the programme and was utilized predominantly by Telco providers. Q: Why has Symantec changed the buying programme? A: Symantec is now extending the programme to small businesses in response to changing market conditions Q: How is a new ExSP programme beneficial to VARs? A: Value added resellers who are considering entering the service provider space will benefit from the new monthly subscription licensing model that aligns with the way they do business with their customers. The programme allows partners to pay quarterly for the software actually used, which reduces the upfront investment costs of delivering of managed services to their customers and helps them accelerate profitability. In addition, the programme provides managed services partners with more opportunities for predictable profitability at each stage of growth by reducing licensing costs as the volume of business increases. Q: How does your model differ from what Sophos just announced? A: Symantec s ExSP licensing model is based off of a proven programme started in The company is enhancing the existing programme to extend its benefits to all of its partners, including those who serve SMB customers.

4 Q: Why did you decide to move to this model? A: Symantec is committed to helping partners differentiate their businesses with innovative solutions and services, maximize their sales opportunities with increased enablement resources and accelerate profitability with an expanded set of sales resources, tools and incentives. This new licensing model is designed to match the way partners do business with their customers, by enabling them to purchase products on a subscription basis. This also extends licensing to the SMB, which makes it accessible to all service provider market segments. We anticipate that our partners will appreciate and benefit from the flexible quarterly payment system and paying only for software used, discounts rewarded for increased levels of spending, and the support that accompanies the license keys. Each of these features will provide greater opportunities for our partners and add to their success. Q: If pricing is based on volume, how will SMB service providers benefit? A: The pricing is not based solely on volume, the real benefit to the SMB service provider is access to a great range of products that they pay for on a quarterly basis, based on requirements. As the SMB grows, they can stay within the programme. Q: What is the minimum threshold to enter this programme? A: A service provider is only required to maintain one point per quarter to enter and stay in the programme. Q: How does a partner earn points in the programme? A: Points are accumulated during the quarter based on what products are used and the volume of the product used. The points drive what band the service provider will use for pricing for the quarter. Q: Are all products available in this programme? A: No. The current price list provides a full listing of included products. Q: Does the Service Provider own the licenses? A: The license entitlement in the ExSP Programme is on a subscription basis. While service providers are enrolled in the programme, they have entitlement to use the license and support. Once they are no longer enrolled, they lose the entitlement rights. Q: Must the Service Provider take out Maintenance and Support? A: Every product comes equipped with Essential Maintenance. This provides upgrade insurance which includes product updates, full version upgrades, and virus definitions for one year with the purchase of the licenses, as well as unlimited high priority calls on a toll-free line 24 hours a day, 365 days of the year.

5 Q: Can the Service Provider enroll on-line? A: Yes. Existing partners may login to PartnerNet and commence enrollment. All service providers must be enrolled in the Partner Programme before enrolling in the ExSP Programme. Q: Are there Special Terms available? A: Any request for special terms or prices must be managed by a Symantec Sales Rep and are subject to approval via the standard in-region approval request process. Q: How does the Service Provider obtain Symantec products? A: Once the Service Provider has successful enrolled in the programme, they will receive a welcome letter and their SAN (Symantec Agreement Number). They can then place their fulfillment order with an approved Symantec Fulfillment Partner. Q: How does the Service Provider pay for the products they subscribe to under the programme? A: The ExSP programme is based on monthly pricing, At the end of each calendar quarter, the Service Provider will complete a usage report and submit it with their invoice only PO to an approved Symantec Fulfillment Partner. Offering monthly subscription provides flexibility to the service provider and ensures they only pay for what they have used. Q: Can the Service Provider contract with Symantec directly? A: This is a special term and is subject to approval. Q: What price bands are available? A: There are 5 price bands based on points per quarter: A up to 119,000 B 120, ,000 C 250, ,000 D 500, ,000 E 1,000,000+ Q: What is the term of the ExSP Contract? A: Unless otherwise stated in the contract, the contract is a yearly, auto-renewing contract. Q: In which currencies is the programme available? A: As with all Symantec standard buying programmes, ExSP is available in three different currencies, Euro, Sterling and EMEA-specific (exchange rate?) US dollars.

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