GOLD COMPETENCY REVENUE GUIDELINES

GOLD COMPETENCY REVENUE GUIDELINES

Table of Contents MICROSOFT GOLD COMPETENCY REVENUE GUIDELINES UPDATE... 1 We Are All About Partners... 2 What we offer: rich benefits for gold competency partners... 2 What we expect: common agreement on revenue goals... 2 How it works... 3 Country Groupings... 4 Minimum Revenue Amounts... 5 Frequently Asked Questions on Gold Competency Revenue Goals... 6 APPENDIX A Products Associated to Competencies... 8

MICROSOFT GOLD COMPETENCY REVENUE GUIDELINES UPDATE Revised February, 2013 Key updates to this document include: 1. Removal of the October 2013 revenue measurement start date and the October 2014 revenue requirement date 2. List of competencies addressed by this document 3. Updated Appendix RESOURCES: If you have questions, please contact your local Regional Service Center. To find gold competency requirements and benefits, consult the partner portal. 1

We Are All About Partners is, and always has been, partner led. We will continue to create innovative technology platforms and services for our mutual customers that allow partners to attach, extend, and monetize solutions globally. And we will continue to support our partners to help win more customers, increase share, and deliver stronger revenue performance. What we offer: rich benefits for gold competency partners Partners with gold competencies represent organizations and associated individuals that have demonstrated the highest, most consistent capability and sales leadership within a specific solution area. Therefore, partners with gold competencies that show deep expertise and achieve revenue goals are eligible for a wealth of benefits that surpass the cost of qualification. Those include: KEY INFORMATION Tailored, competency-specific benefits based on solutions All partners with a gold competency will offered, such as solution incentives have assistance from a named Core benefits, such as a named contact who may contact to help with measuring revenue support the creation of a business plan and help with sales attainment. efforts, a distinct gold competency logo, and internal-use software licenses for the latest desktop, operating system, and server software. Refer to the Software Licensing Guide for more information. We pride ourselves on the business value that Partner Network core benefits drive directly to our partners. Our investments in the Partner Network reinforce our commitment. In a study released in June 2012: The Business Value of the Partner Network Core Benefits, the IDC estimates an aggregate value of approximately $320,000 that is directly attributable to a partner s use of the Partner Network benefits suite. (Figures reflect an average for a 50-person partner with two to five competencies.) What we expect: common agreement on revenue goals As a channel-led company, the vast majority of our revenue is driven through partners. It is our expectation that partners with gold competencies will play a leading role in generating revenue. Historically, the revenue that you drive has not been recognized as part of the Partner Network, or has only been recognized by local offices. In the future, our objective is to better align our global and local execution and recognize and reward you based, in part, on the revenue and market impact that you are already driving within your business. As a step toward this objective, partners must agree on revenue goals, which means making their best efforts to achieve defined revenue goals when they enroll for gold competency membership. This revenue 2

is the amount of transactional or influential license revenue that a partner generates over the 12 months following enrollment in a gold competency. This document explains in more detail by competency how these revenue goals are defined. At some point in the future, we also plan to begin measuring partner generated revenue. However, we are delaying measuring revenue attainment (for competencies other than CRM, ERP, and Learning) until a yet to be determined date (previously stated as October 2013). We will provide partners with at least six months notice before we actually start measuring revenue attainment. How it works Acknowledging and agreeing on revenue goals will take place during the gold competency enrollment process. Below is an example of how this revenue goals agreement appears in the Partner Membership Center Competency Summary page. Partners simply need to click the Agree link. KEY INFORMATION Visit the Partner Membership Center to accept the revenue requirement. 3

Country Groupings There are three country revenue groupings (A, B, and C) as shown below. Table 1 Group A Group B Group C Australia Canada Denmark France Germany Italy Japan Korea Netherlands Poland Spain Sweden Switzerland UK United States Argentina & Uruguay Austria Belgium Brazil China Chile Colombia Czech Republic Egypt Finland Greece Hong Kong Hungary India Indonesia Ireland Israel Malaysia Mexico New Zealand Norway Portugal Saudi Arabia Singapore Romania Russia South Africa Thailand Taiwan Turkey Ukraine United Arab Emirates North, West and Central Africa, not listed in other country groupings Albania Algeria Angola Armenia Central Asia, not listed in other country groupings Azerbaijan Cayman Islands The Bahamas Bahrain Bangladesh Belarus Belize Bermuda Bolivia Bosnia and Herzegovina Botswana Burundi Brunei Bulgaria Costa Rica Croatia Cyprus Dominican Republic Ecuador El Salvador Eritrea Estonia Ethiopia Georgia Guatemala Honduras Iceland Indian Ocean Islands Jamaica Jordan Kazakhstan Kenya Kuwait Latvia Lebanon Libya Lithuania Luxembourg Macedonia (FYROM) Malawi Malta East Mediterranean Montenegro Morocco Moldova Mozambique Namibia Nigeria Oman Pakistan Panama Paraguay Puerto Rico Peru Philippines Qatar Rwanda Serbia Slovakia Slovenia Somalia Sri Lanka Tanzania Trinidad & Tobago Tunisia Uganda Uruguay Venezuela Vietnam Zambia Zimbabwe 4

Minimum Revenue Amounts Listed below are the minimum revenue goals for all Partner Network competencies. To see the products associated with each competency, refer to Appendix A. Minimum Revenue Goals by Competency Revenue goals are in U.S. constant dollars and are subject to annual changes. Any changes will be communicated with at least six months notice. Table 2 Competency Group A Group B Group C Application Development $100,000 $80,000 $50,000 Application Integration $100,000 $80,000 $50,000 Application Lifecycle $100,000 $80,000 $50,000 Business Intelligence $180,000 $150,000 $100,000 Collaboration and Content $180,000 $150,000 $100,000 Communications $180,000 $150,000 $100,000 CRM gold competency - VAR 300 seats or $200,000 150 seats or $100,000 150 seats or $100,000 CRM gold competency - ISV $500,000 $250,000 $250,000 CRM silver competency - VAR 150 seats or 75 seats or $50,000 75 seats or $50,000 $100,000 CRM silver competency - ISV $250,000 $125,000 $125,000 Data Platform $130,000 $100,000 $70,000 Devices and Deployment $150,000 $113,000 $75,000 Digital Marketing 0 0 0 Distributor Varies by contract Varies by contract Varies by contract ERP gold competency - VAR $100,000 $50,000 $50,000 ERP gold competency - ISV $500,000 $250,000 $250,000 ERP silver competency - VAR $50,000 $25,000 $25,000 ERP silver competency - ISV $250,000 $125,000 $125,000 Hosting $100,000 $75,000 $50,000 Identity and Access $100,000 $80,000 $50,000 Learning Gold Learning KPI Gold Learning KPI Gold Learning KPI and Virtualization $180,000 $150,000 $100,000 Messaging $180,000 $150,000 $100,000 Midmarket Solution Provider $100,000 $75,000 $50,000 Mobility 0 0 0 OEM 1 150 BOS/15 Server 100 BOS/10 Server 50 BOS/5 Server Project and Portfolio $130,000 $100,000 $70,000 Server Platform $180,000 $150,000 $100,000 Small Business 200 seats or $50,000 150 seats or $30,000 150 seats or $30,000 Software Asset 0 0 0 Volume Licensing $100,000 $75,000 $50,000 1 BOS stands for Bootable Operating System. This is an operating system that can be booted from removable media (CD, USB drive). 5

Frequently Asked Questions on Gold Competency Revenue Goals Q: What are the gold competency revenue amounts and how did you develop them? A: Revenue amounts are specific to competency and geography. Refer to Table 2 above. The revenue amounts are minimum goals and were set based on local market conditions, average size and number of customer deals, partner types, market segments, and more. Q: What is the time period to achieve revenue goals? A: Revenue goals must be achieved during the 12 months following the enrollment date. Q: I thought was going to start measuring revenue in October 2013, why the delay? Are you delaying measurement of revenue for all competencies? A: We are delaying the measurement of gold competency revenue until a yet to be determined date (previously stated as October 2013) for all but the CRM, ERP, and Learning competencies, where revenue requirements or consumption KPI targets are already in place. Our objective is to ensure that we measure all partner-generated revenue, that we are aligned with both the program and incentive requirements, and that we give partners enough time to prepare for revenue tracking. Q: Which competencies have a revenue goal? A: See Table 2 to see competencies that have a revenue goal. Q: What are the revenue types that count toward the goals? A: Partners can base their revenue goals on all revenues they transact with, or influence for,. Revenue types include Volume Licensing (Open, Select, Enterprise Agreement), Service Provider License Agreements, OEM, Royalty Agreements, and Cloud generated revenue. Q: What are examples of revenue that count toward revenue goals? A: Revenue that counts toward revenue goals refers to licensing revenue that results from a partner directly transacting the sale, or a partner contributing to winning the customer project that results in product license sales. It does not include associated partner services revenue. Q: Can my revenue be allocated across competencies? A: As a general rule, partners with multiple gold competencies will be required to use their best efforts to meet the revenue goals for each gold competency to earn or retain their gold competency status. However, partners will be able to allocate, divide, or spread revenue across multiple related gold competencies. For example, partners can allocate their total SharePoint 2010 revenue generated (for example $100,000) across the Gold Collaboration and Content ($50,000), Gold Business Intelligence ($25,000) and Gold Midmarket Solution Provider ($25,000) competencies. See Appendix A for a table representing products related to each gold competency. 6

Q: How do I accept the revenue goals? A: Partners will be asked to agree to the competency and geography revenue amount during the gold competency enrollment process. 7

APPENDIX A Products Associated to Competencies Chart 1 of 3 Focus Area: Application Development Azure Application Integration Application Lifecycle Business Intelligence Collaboration and Content Communications CRM Data Platform Devices and Deployment Digital Marketing Distributor ERP BizTalk Server Dynamics CRM Dynamics ERP Invitation Only Competency Hosting Exchange Forefront Windows Intune Identity and Access Learning Certified Trainer delivering Official Courseware (MOC) and Virtualization Messaging Midmarket Solution Provider Mobility OEM Project and Portfolio Server Platform Small Business Software Asset Volume Licensing 8

Chart 2 of 3 Focus Area: Lync MDOP Office Project SharePoint Application Development Application Integration Application Lifecycle Business Intelligence Collaboration and Content Communications CRM Data Platform Devices and Deployment Digital Marketing Distributor ERP Hosting Identity and Access Learning and Virtualization Messaging Midmarket Solution Provider Mobility OEM Project and Portfolio Server Platform Small Business Software Asset Volume Licensing Invitation Only Competency Certified Trainer delivering Official Courseware (MOC) 9

Chart 3 of 3 Focus Area: SQL Server System Center Visio Visual Studio Windows Client Windows Server Application Development Application Integration Application Lifecycle Business Intelligence Collaboration and Content Communications CRM Data Platform Devices and Deployment Digital Marketing Distributor ERP Hosting Identity and Access Learning and Virtualization Messaging Midmarket Solution Provider Mobility OEM Project and Portfolio Server Platform Small Business Software Asset Volume Licensing Invitation Only Competency Certified Trainer delivering Official Courseware (MOC) 10