1 Office 365 Enterprise E5 LicensingReinventing Productivity

2 Recent launches Launch Date Launch Event August 2017Microsoft 365 Business launches Preview in CSP/MOSP on 8/2/2017 PSTN Consumption Introductory Period extended through 6/30/2018 July 2017 PSTN Calling expands to Ireland & Netherlands  Workplace Analytics SKU (Lead Status) now available June 2017 Threat Intel SKU launches in GCC  Microsoft Stream launches in K, E1, E3 and E5 suites May 2017 Customer Lockbox becomes part of the Advanced Compliance SKU (5/2/2017) South Korean Datacenter now offers O365 SKUs (4/27/2017) April 2017 Threat Intelligence launches and is included in Office 365 E5 subscriptions as well as standalone purchases Advanced Compliance launches in E5 (includes Advanced eDiscovery and Advanced Data Governance)1 Customer Lockbox Standalone moves to Lead Status PSTN Consumption launched in Croatia March 2017 PSTN Consumption and Mini Calling Plans available in GCC (Feb. 15th, 2017) and the E5 Step Up Promo SKU New Advanced Data Governance feature launched as part of the Advanced Compliance SKU (included in E5) Canada changes to a PSTN Tax Inclusive Market (similar to US and Puerto Rico) February 2017 PSTN Calling launched in Spain PSTN Mini Calling plans now available in EDU O365 now available in Dedicated German Datacenter 1At launch on April 1, 2017, limited ADG capabilities will be available in GCC; additional features will roll out at later dates. For more details visit the GOV Licensing FAQ. Microsoft Internal & Partner Use Only

3 Coming soon Launch Date Launch Event September 2017Secure Productive Enterprise rebrand to Microsoft 365 on 9/1/2017 K1 rebrand to F1 on 9/1/2017 October 2017 To be announced Microsoft Internal & Partner Use Only

4 New Analytics for Office 365MyAnalytics MyAnalytics Included in E5 ($35/u/m) or available as an add-on ($4/u/m) to E plans Drive personal productivity with time and collaboration insights Establish new norms, recover time and drive greater impact across your teams Workplace Analytics (Lead Status Add On) Add-on to E1/E3 ($6/u/m) & add-on to E5 ($2/u/m), minimum 5K seats Incremental pricing for Advanced Analytics consulting services New Office 365 capabilities to drive org-wide change: actionable behavioral metrics, custom queries, data remains in place, complements existing MyAnalytics capabilities Coming soon: accelerate change initiatives with connective tissue to cascade custom goals & targeted benchmarks from Workplace Analytics to MyAnalytics RUDE FAQ: - Workplace Analytics for On-Prem? A: Details still under discussion. How much data history do I get once I turn on WPA? A: Up to 12 mos as available from EXO When will I be able to configure MyAnalytics using the connective tissue in Workplace Analytics? A: Est end of calendar year 2018. How does WPA handle security, privacy and compliance? Is WPA available for restricted clouds e.g. Gov, etc? A: No, not at this time Workplace Analytics Subject to change. Microsoft Internal & Partner Use Only

5 Additional value for Enterprise CustomersAnalytics Power BI Pro MyAnalytics Voice PSTN Conferencing PSTN Calling1 Cloud PBX Security Advanced Threat Protection Advanced Security Management Advanced Compliance Threat Intelligence With Office 365 E5, Microsoft delivers its most comprehensive, secure cloud productivity and communications capabilities for enterprise customers. Provide Enterprise Protection to reduce risk for your enterprise. As part of our people-centric approach to the cloud, we’ve implemented new capabilities as part of the tools you use every day to boost our security, privacy, compliance and transparency commitments. Those capabilities are Advanced Threat Protection, Advanced Security Management, and Advanced Compliance. Advanced Threat Protection: Zero-day threat and malware protection Advanced Security Management: Enhanced visibility and control Advanced Compliance: Advanced eDiscovery, Advanced Data Governance and Customer Lockbox bundled together as an intelligent solution for compliance needs Deliver Insights for Everyone that help unlock data to help everyone make better decisions. Gain a deeper understanding of your business through Microsoft Analytics solutions. Power BI lets you pull together data from various sources to create simple dashboards and compelling visualizations to make the best business and strategic decisions. MyAnalytics enables your employees to understand where they spend their time and the changes they can make to be more effective and productive at their jobs every day. Power BI Pro: Live business analytics and visualization MyAnalytics: Individual and team effectiveness Provide Complete Cloud Communication and reduce costs with a single platform for Voice and meetings. You can potentially save millions of dollars by eliminating third-party conferencing and phone charges and PBX maintenance charges by implementing the integrated voice capabilities of Skype for Business, including PSTN Conferencing, Cloud PBX, and PSTN Calling. PSTN Conferencing: Worldwide dial-in for your online meetings Cloud PBX: Business phone system in the cloud PSTN Calling: Cost effective cloud based dial tone (add-on to Office 365) Advanced Analytics for All Complete Cloud Communication Built-in Enterprise Protection 1PSTN Calling is an add-on to Office 365 Microsoft Internal & Partner Use Only

6 317 Million New pieces of malware created in past year1Security Advanced enterprise protection Help protect your organization against unknown malware and viruses (Protect) Text Gain enhanced visibility and control into Office 365 usage and security incidents (Detect) Maintain explicit control over your data in the cloud (Respond) 317 Million New pieces of malware created in past year1 The number of security threats facing organizations is increasing every year. With Office 365 E5, Microsoft offers Advanced Enterprise Protection to reduce risk. We handle your security, so you don’t have to. Microsoft has a new Security Posture as outlined by Satya Nadella: Protect your network across all endpoints, from sensors to the datacenter Detect threats using targeted signals, behavioral monitoring, and machine learning Respond quickly, closing the gap between discovery and action. E5 capabilities provide you with even more control with increased privacy, transparency, and refined user controls. Protect against malware and viruses (Advanced Threat Protection) Gain enhanced visibility into security (Advanced Security Management) Maintain control over your data in the cloud even when your service needs to make changes to respond to security incidents (Customer Lockbox) Simplify eDiscovery (Advanced Compliance) All of these are designed to reduce the risk that your organization faces. Data point from Symantec “Internet Security Threat Report”, 2015 Sungard quote was a part of E5 Launch approved quotes. It is not a part of a customer quote. Please contact Nadine Salem if you have any questions about usage of this quote. Maintain compliance while streamlining the eDiscovery process to save time and money Reduced risk “Safe Attachments in Exchange Online Advanced Threat Protection is going to reduce zero-day threats from malware and viruses. This will help prevent malicious attachments from impacting our environment.” - Brian Ivie, Chief Security Officer, SunGard 1Symantec “Internet Security Threat Report”, 2015 Microsoft Internal & Partner Use Only

7 Security Advanced Threat Protection Advanced Security ManagementHelp protect against unknown malware and viruses Provide real-time, time-of-click protection against malicious URLs Deliver rich reporting and URL trace capabilities with Click Tracing Advanced Threat Protection Advanced Security Management Identify high-risk and abnormal usage, security incidents, and threats Gain enhanced visibility and context into Office 365 usage and shadow IT Reduce the possibility of attacks with granular controls that monitor access Advanced Security Management Threat Intelligence (New – April, 2017) Actionable insights to global attack threats Billions of data points from Office, Windows & Azure customers AI to enable adaptive security policies and best practices Take a closer look at E5 security and compliance capabilities that continue Microsoft’s deep investments in security Advanced Threat Protection (ATP) With Office 365, you gain advanced protection against unknown and sophisticated threats in end-user , attachments, and URLs. ATP includes three key capabilities: Safe Attachments protect against unknown malware and viruses by opening documents attached to s in cordoned-off virtual environments (VM’s) to detect malicious behavior. Safe Links provide real time, time-of-click protection against malicious URLs by wrapping external links in special URLs that check the destination URL for threats before opening them. Click Trace provides rich reporting and URL trace capabilities by keeping a record of every user who has clicked on a Safe Link-wrapped URL for additional protection. Advanced Security Management With the Advanced Security Management capabilities in Office 365, your security administrators have access to the granular controls and policies they need to monitor access and reduce the possibility of attacks: Advanced Security Alerts. Admins can use General Anomaly Detection alerts and granular activity policies to react quickly to suspicious activity. App Permissions enable IT to approve or revoke access for third-party apps or services that users authorize to connect to Office 365. Cloud App Discovery enables IT to monitor what cloud services users connect to, so they can gain insights, identify anomalies, and manage risky behavior. Customer Lockbox Providing security, transparency, and compliance in Office 365 is our top priority. Customer Lockbox for Office 365 can help you meet compliance obligations, such as HIPPA and FedRAMP, by demonstrating that they have procedures in place for explicit data access authorization. In the rare instance when a Microsoft service engineer needs access to your data, you grant that access only to data required to resolve the issue and for a limited amount of time. Additionally, those actions taken by the support engineer are logged for auditing purposes and are accessible via the management Activity API and the Security and Compliance Center. Advanced Compliance Finally, Office 365 Advanced Compliance simplifies the eDiscovery process across your and document repositories. It leverages machine learning to help you explore large, unstructured sets of data and quickly find what is relevant. Thread Analysis reconstructs threads from unstructured data. Duplicate Detection reduces document volume so you can focus on what is unique. Predictive coding trains the system to identify relevant and documents. Themes and Search help you quickly map unstructured data by using clustering technology to identify data relationships and simplify reviews. It’s easy to see why this is the most secure Office ever. Threat Intelligence Advanced Compliance Focus on what is unique and relevant by training the system to identify s and documents through predictive coding Reduce document volume with Near Duplicates and Threading Includes Advanced eDiscovery, Advanced Data Governance and Customer Lockbox Microsoft Internal & Partner Use Only Advanced Compliance

8 Leader In Forrester’s Agile Business IntelligenceAnalytics Insights for everyone Transform your company’s data into rich visuals and analytics for better decision making Leader In Forrester’s Agile Business Intelligence Platforms 2015 Report Be more effective, make better decisions, and save hours every week with time and relationship insights for individuals and teams Knowing your business is protected from outside threats gives you the opportunity to focus on what’s going on inside your organization. Microsoft is a leader in business intelligence as its capabilities build upon the world’s most frequently used analysis tool – Excel. Office 365 offers Insights for Everyone and enables you to make more-informed, and better decisions. -Easy-to-use live data monitoring and in-depth analysis tools in Office 365 let you use your data and unlock stories through simple dashboards, interactive reports, and compelling visualizations. (Power BI) -And if improving personal and team effectiveness is what you are looking for, Office 365 provides real-time work analytics at the individual level (and soon at the organization level) to optimize activities for the best business outcomes. (MyAnalytics) Focus on what matters to you so you can make the best business decision possible. Leader In Forrester’s Agile Business Intelligence Platforms (Forrester Wave: Agile Business Intelligence Platforms, Q3, 2015) Henkel case study and video https://customers.microsoft.com/Pages/CustomerStory.aspx?recid=17982 Better decisions Focus on what matters to you, so you can make better business strategy decisions as well as personal and team productivity decisions. “Office 365 has made Henkel faster and more agile.” -Joachim Jaeckle, Senior CVP, Henkel Forrester Wave: Agile Business Intelligence Platforms, Q3 2015 Microsoft Internal & Partner Use Only

9 Analytics Power BI Pro MyAnalyticsGain fast, easy access to the data you need with a simple intuitive experience Access a live, 360º view of your business through a single dashboard Discover new insights by exploring your data with rich visualizations MyAnalytics Leverage personal analytics to improve individual effectiveness Use the Outlook add-in to understand reach and impact Identify top collaborators and understand collaboration trends Power BI Pro MyAnalytics Take a closer look at Analytics capabilities in E5 Power BI transforms your company’s data into rich visuals and analytics, so you can focus on what matters to you. Stay in the know, spot trends as they happen, and push your business further. With Power BI, you can: Get an end-to-end view off what is happening Manage multiple data sources Make the right data available to the right users at the right time In addition, with out-of-the-box Power BI content packs for popular services such as Salesforce, QuickBooks Online, Marketo, you can create data visualizations in just minutes. You can also publish data from Excel 2016 to Power BI, making it even easier to share data and insights. MyAnalytics (formerly Delve Analytics) helps you understand time management, business efficiency, and organizational collaboration patterns by using big data and behavioral analytics to reveal how activities drive business outcomes. Everyone from individual employees to team leaders and managers can use MyAnalytics to monitor patterns and find ways to get time back and spend it more effectively. MyAnalytics Personal Dashboard helps you discover trends for the most important aspects of your day like meetings, , focus time, and after hours. Use this information to assess how to most effectively rebalance your schedule. Outlook add-in offers quick feedback about when s are opened by your colleagues and how many recipients actually read the you send. Use this information to understand the best time of day to send and alter content to ensure high read rates. You can also use the -read analytics to explore read rates, activity trends, and other characteristics of s that were sent to you. Digest delivers weekly summaries of activity and collaboration characteristics that provide you with simple feedback about time allocation and networking. Microsoft Internal & Partner Use Only

10 100 million meetings conducted each month using Skype servicesVoice Complete cloud communication Provide one platform for meetings and voice Reduce voice and conferencing costs Connect to meetings and each other from virtually anywhere, on any device 100 million meetings conducted each month using Skype services At the heart of great teams is great collaboration and communication. That is the core belief that guides our communication investments in Office 365. Teams that communicate often and openly are more efficient, respond faster, plan better and help one another more effectively. They listen to customers and market trends. They share insights with each other. They challenge one another openly. They are great communicators, and that makes them a great team. E5 investments in Voice support complete cloud communication. -Microsoft is unique in proving one platform for meetings and voice. Having one platform for meeting and voice gives your teams the ability to communicate easily, using the right tools, from the right devices, and at the right time. -And that drives significant cost savings. Your employees save time from switching from one system for IM to another one for web conferences, and then to another one for video. With Office 365, everything is integrated into one platform. Your administrators save time because they don’t have to manage multiple products. And your business could potentially save millions by eliminating things like WebEx licenses, ACP per-minute charges, and PBX maintenance costs. -These capabilities support mobile work and the ability to stay productive from anywhere. The potential cost savings from these capabilities can be significant for most organizations. Ixia is just one example of a customer saving $100,000 from the use of Skype for Business Online. Source for over 100 million meetings conducted each month using Skype services Microsoft, “Expanding the reach of Skype for Business meetings and voice services in Office 365”, 2016 https://blogs.office.com/2016/03/09/expanding-the-reach-of-skype-for-business-meetings-and-voice-services-in-office-365/ Quote from Ixia case study https://customers.microsoft.com/Pages/CustomerStory.aspx?recid=26528 Cost savings “We estimate that we will save about [US]$100,000 a year by standardizing on Skype for Business Online. This savings results from reducing the use of third-party conferencing providers, long-distance and toll calling contracts, and PBX and phone systems.” - Niv Dolgin, Director of Enterprise Infrastructure, Ixia Microsoft Internal & Partner Use Only

11 Voice PSTN Conferencing Cloud PBX PSTN Calling1Use a tolled dial-in number to join meetings from any device Dial out to bring participants into the meeting X PSTN Conferencing Cloud PBX Centrally manage users for communications, , and content from Office 365 Eliminate separate PBX systems and transition to the cloud PSTN Calling1 Subscribe to calling plans from Office 365 Use existing phone numbers or get new ones Skype for Business and Office 365 offer you all the capabilities you need for modern voice and meetings. Audio, video, and web meetings are combined in one connected user experience and platform, with high definition video and a broad range of devices from Microsoft and partners. This helps your business consolidate conferencing solutions and simplify operations while reducing complexity for users, reducing support costs for IT, and enabling employees to work from virtually anywhere. With PSTN Conferencing, meeting attendees without Internet or audio access on their PCs can dial in to Skype meetings from virtually any device. Meeting organizers can also dial out to attendees and bring them into the meeting. PSTN Conferencing also offers unlimited conferencing as a part of the service, so no charges are incurred for callers using a tolled number to dial-in. Cloud PBX (when combined with PSTN Calling) is your phone system in the cloud, modern, and tightly integrated with Office 365. Users get the voice capabilities they need—make, receive, and manage calls from anywhere, using any device. (PSTN Calling is required for a true enterprise voice solution.) Cloud PBX also provides great controls for IT to increase agility and consolidate management compared to traditional phone hardware. PSTN Calling is an add-on to Cloud PBX that provides domestic and international calling services for businesses directly from Office 365. Instead of contracting with a traditional telephony carrier and using an on-premises IP-PBX, you can purchase the Cloud PBX from Microsoft and add on PSTN Calling for a complete enterprise telephony experience for end-users. Differences between E3 and E5 MEETINGS With E3, you have audio, video, and web conferencing on the Internet With E3, scales from 2 to 10,000 people With E3, easy join via smartphone, tablet, PC, Mac, and browser With E5, PSTN Conferencing adds dial-in numbers around the world for joining by phone when more convenient or when Internet is unavailable. VOICE With E3, Person-to-person calling on the Internet With E3, Reach Skype users in your company and worldwide With E3, Dial-by-name from Office on smartphone, tablet, PC, Mac With E5, Cloud PBX adds sophisticated calling features including voice mail, call transfer, admin support, plus option to call traditional phone numbers Save $5 per user* by enabling Cloud PBX, retiring Cisco or other traditional PBX system (Based on Cisco Call Manager price of $13 per month vs. Cloud PBX at $8) Cloud PBX PSTN Calling* 1PSTN Calling is an add-on to Office 365 Microsoft Internal & Partner Use Only

12 Office 365 Enterprise SuitesFeatures Office 365 Services $8 $20 $35 Business Class and Calendars Exchange Online 50 GB Unlimited Social, Video, Sites, Work Management Yammer, Office 365 Video, Stream, SharePoint Online, Planner ● IM, Online Meetings, Meeting Broadcast, Collaboration, StaffHub Skype for Business, Microsoft Teams File Storage, Sharing, Information Discovery OneDrive for Business Office Online Office Client Apps Office 365 ProPlus Archiving, Rights Management, Data Loss Prevention, Encryption Advanced Security Management, Advanced Compliance1, Secure Attachments and URLs, Threat Intelligence Analytics Power BI Pro, MyAnalytics Cloud PBX Skype for Business PSTN Conferencing2 Skype for Business Enterprise Plan Add-ons PSTN Domestic and International Calling3 Skype for Business +$32 +$12/$24 Workplace Analytics4 +$6 +$2 CRM Online Professional Dynamics +$50 1At launch on April 1, 2017, limited ADG capabilities will be available in GCC; additional features will roll out at later dates. For details view the Government Licensing FAQ. 2Toll-free and International Dial-out conferencing capabilities will incur additional per minute consumption charges when available. Customers can disable this feature to avoid additional billing. Limited geo availability. 3Domestic only calling plans are $12. Tax is included in price in USA, Puerto Rico & Canada. Add-On price to E1 & E3 includes Cloud PBX. 45,000 Seat Minimum Microsoft Internal & Partner Use Only

13 Office 365 E5 Helps Save CostsOffice 365 E5 Helps Save Costs PBX solution PSTN conferencing solution Analytics $90+ PER USER FROM COMPETITORS Compliance solution Advanced visibility Data access control Advanced security The costs of the security products alone justify the incremental E5 suite cost of $15 $49 PER USER STANDALONE PSTN Conferencing Cloud PBX MyAnalytics Power BI E3 Step up to E5 $15 PER USER E5 SUITE DISCOUNT O365 Advanced Compliance Advanced Threat Protection Advanced Security Management Threat Intelligence Microsoft Internal & Partner Use Only

14 Office 365 Add-on services pricingPre-Reqs E5 E1/E3 Business Essentials or Business Premium Price Advanced Threat Protection Exchange Online Included Add-on $2 Advanced Security Management None1 $3 MyAnalytics $4 Power BI Pro None $10 Advanced Compliance Exchange Online or SharePoint Online $8 Threat Intelligence Cloud PBX Skype for Business Online Plan 2 N/A PSTN Conferencing PSTN Calling (US Only) + Cloud PBX Add-on Cloud PBX Required $12/$242 Workplace Analytics3 $6/$2 1There are no technical blockers for customers to purchase Advanced Security Management, but the usage of ASM can only be achieved if an Office 365 workload is deployed for ASM to monitor. 2Dial-out conferencing capabilities may incur additional per minute consumption charges. Customers can disable these features to avoid additional billing. $24 includes both International and Domestic calling plans. Domestic only calling plans are available for $12. Tax is included in price in the US. Service usage limits exist to manage fraud, abuse, excessive use, and maintain service performance. Further details about these services can be found in our recently published Skype for Business Online PSTN Service Use Terms. 35,000 Seat Minimum. $6pupm for E1/E3, $2pupm for E5 Microsoft Internal & Partner Use Only

15 Intelligent Solutions Visibility into ActionsAdvanced Compliance Capabilities in Office 365 Helping you meet your compliance obligations while managing your risk and reducing cost Added Controls That help you meet industry standards and regulations. Intelligent Solutions Enable you to get your data under control to reduce cost and meet internal compliance obligations Visibility into Actions Allows you to monitor and investigate actions taken on your data by the Advanced Compliance solutions to identify risk and audit the actions Customer Lockbox · Advanced eDiscovery · Advanced Data Governance Microsoft Internal & Partner Use Only

16 Office365 Compliance CapabilitiesCompliance solutions for Office 365 E1 E3 E5 eDiscovery eDiscovery search ● Import data without filters using drive shipping/over the network Litigation Hold (including Query-based litigation hold) Case Management RMS Decryption eDiscovery export Advanced eDiscovery1 Threading, Near Duplicate Detection, Predictive Coding, Themes, Export with Analytics, Export with load file for review Data Governance Archiving Manually create, publish, and apply labels and associated policies to documents Ability to create and apply retention/deletion policies across workloads, users, and groups Advanced Data Governance1 Automatically apply labels to data, Labels based on sensitive data types, Labels and associated policies based on queries, Recommended Policies, Smart Import Filters Customer Lockbox1 1The three separate features: Advanced eDiscovery, Advanced Data Governance and Customer Lockbox comprise the SKU: Advanced Compliance, which is included in the Office 365 E5 Suite. Microsoft Internal & Partner Use Only

17 Helping Customers through Customer Lockbox MigrationAs of May 2, 2017 Customer Has Customer Impact LSS Action Customer Lockbox Only No technical impact, but may have frustration that CLB is now included in Adv. Compliance without price premiums. None. SKU is available through term of agreement or as Lead Status through Nov ’17. Advanced Compliance Only Existing licensing scripts will be out of date, Enterprise customers will need to update. Help with awareness of this risk. Customer Lockbox + Advanced Compliance Double provisioning of CLB will cause Advanced Compliance script failure if CLB already assigned. Help with awareness of this risk. Proactive IT communications to at-risk customers already planned. Microsoft Internal & Partner Use Only

18 Included Dial Out Countries Pay as You Go Dial Out Countries12/1/2017 PSTN services availability Licensing Platform Sell-To Countries PSTN Conferencing Included Dial Out Countries Pay as You Go Dial Out Countries EA Direct EA Indirect MOSP CSP EES/School MPSA Open2 GCC Australia Hungary Russia Austria Ireland Singapore Belgium Italy Slovak Republic Brazil1 Japan Slovenia Bulgaria Luxembourg South Africa Canada Malaysia South Korea Croatia1 Mexico Spain Czech Republic Netherlands Sweden Denmark New Zealand Switzerland Estonia Norway Taiwan Finland Poland Thailand France Portugal United Kingdom Germany Puerto Rico3 United States Greece Romania Argentina Jordan4 Trinidad and Tobago4 Bosnia & Herzegovina4 Kenya4 Latvia Turkey Chile Lithuania UAE4 Colombia Malta Ukraine Costa Rica Monaco4 Uruguay4 Cyprus Panama Venezuela4 Dominican Republic Paraguay4 Vietnam4 Peru Ecuador4 Philippines Egypt4 Qatar4 Indonesia4 Serbia4 Israel Sri Lanka For Provisioning and Dial In Availability by Market visit the PSTN Conferencing Support page For language availability visit the Skype for Business International Availability page EA Direct EES/School EA Indirect MPSA MOSP GCC CSP For more details on PSTN Services, see the Skype for Business PSTN Services Internal Licensing deck PSTN Calling Puerto Rico3 United Kingdom Ireland France Spain Netherlands United States PSTN Consumption EA Direct MOSP EA Indirect GCC EES/School Available in all PSTN Conferencing Sell-To countries except: Brazil, Russia, South Korea, Taiwan 1 EA Direct channel unavailable in Brazil & Croatia 2 Open includes OLP, OV, OVS, and OVS-ES 3 All PSTN services unavailable in Web Direct on 9/1/16. PSTN Calling in VL EA/EES Direct/Indirect only. 4 Service provides toll-free dial numbers only. Tolled dial-in numbers will not be available until further notice. Microsoft Internal & Partner Use Only © 2014 Microsoft Corporation. All rights reserved. Microsoft, Windows, 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.

19 PSTN service plans overview through 6/30/18Introductory Offer Period PSTN Conferencing PSTN Calling Included Dial Out Countries Pay as you Go Dial Out Countries Domestic Plan $12 u/m Domestic + International Plan $24 u/m Included in Service Plan Inbound Conferencing Dial Out Conferencing to Included Dial Out Countries (Domestic Dial Out Included) Dial Out Conferencing to Included Dial Out Countries (Domestic Dial Out Excluded) Inbound calling Domestic outbound calling1 International outbound calling1 PSTN Consumption Required (per minute usage) Toll Free Dial-in Conferencing Dial Out Conferencing to PAYG Dial Out Countries International outbound calling Excessive usage2 Consumption Scenarios A user dials out to a user in a PAYG country - usage charged by the minute A user needs to call an international number. They can use PSTN Consumption to pay per minute Customer reaches either minute limit but needs to make more Domestic or International calls. All overages charged by the minute. 1See PSTN Calling minute limits 2 Minutes will be pooled at the tenant-level for each plan type. For all local and international calls placed to users within the same tenant, Peer to Peer calling will be enabled and the call will be placed over the voice over IP network and will not count towards the excessive use limits. Note: Education pricing differs from commercial. For more details on PSTN Services, see the Skype for Business PSTN Services Internal Licensing deck Microsoft Internal & Partner Use Only

20 PSTN service plans overview post 7/1/18PSTN Conferencing PSTN Calling Included Dial Out Countries Pay as you Go Dial Out Countries Domestic Plan $12 u/m Domestic + International Plan $24 u/m Included in Service Plan Inbound Conferencing Domestic Dial Out Conferencing Inbound calling Domestic outbound calling1 International outbound calling1 PSTN Consumption Required (per minute usage) Toll Free Dial-in Conferencing International Dial Out Conferencing Toll Free Dial In Conferencing International outbound calling Excessive usage2 Consumption Scenarios A user dials out to a user in a different country - usage charged by the minute A user dials out to a user in a different country or their own country - usage charged by the minute A user needs to call an international number. They can use PSTN Consumption to pay per minute Customer reaches either minute limit but needs to make more Domestic or International calls. All overages charged by the minute. 1See PSTN Calling minute limits 2Minutes will be pooled at the tenant-level for each plan type. For all local and international calls placed to users within the same tenant, Peer to Peer calling will be enabled and the call will be placed over the voice over IP network and will not count towards the excessive use limits. Note: Education pricing differs from commercial. For more details on PSTN Services, see the Skype for Business PSTN Services Internal Licensing deck Microsoft Internal & Partner Use Only

21 PSTN Services Tax TreatmentWhen PSTN Services are acquired through a purchase of Office 365 E5, certain tax implications exist in several markets. The United States, Puerto Rico, and Canada are considered Tax Inclusive countries when billed for PSTN Services. Taxes and regulatory fees imposed on PSTN services are more complex in the United States, Puerto Rico, and Canada. In Tax Inclusive countries, a charge for PSTN services includes all required telecommunication taxes that apply to the sale. Customers who purchase Office 365 E5 will see two line items on their invoices; one for the Office 365 E5 (tax exclusive) component and the other for the PSTN Conferencing component (tax inclusive). All other countries are considered Tax Exclusive and do not require special considerations when billed. In other words, PSTN Conferencing services are not taxes separately from Office 365 E5. Taxes and regulatory fees that need to be calculated and remitted include: 911 fees Public Utility Commission Fees License Taxes Telecom Excise Taxes National Contribution Regime (NCR) Several other taxes and fees based on customer location Microsoft Internal & Partner Use Only

22 PSTN Services Tax Treatment – Invoice Breakout %Office 365 E5 and Microsoft 365 E5 are bundled offers that include PSTN Conferencing. There can be tax implications based on how these offers are presented on an invoice. For indirect channels, we recommend that partners contact their legal and tax departments for further assistance. Impacted SKUs with PSTN Conferencing % Invoice Breakout for PSTN Conferencing EA, MPSA, and CSP Office 365 E5 USL 5.71% Office 365 E5 From SA Office 365 E5 Add-Ons Office 365 E5 Step Up from Office 365 E1 7.41% Office 365 E5 Step Up from Office 365 E3 13.33% Office 365 E5 Step Up from Office 365 E4 15.38% Microsoft 365 E5 (Add-on, FUSL, From SA) 3.51% EDU Office 365 EDU E5 USL 20.66% Office 365 EDU E5 Step Up from Office 365 E1 Office 365 EDU E5 Step Up from Office 365 E3 27.57% Microsoft Internal & Partner Use Only

23 The PSTN Conferencing portion which is tax inclusivePSTN Services Tax Treatment – Invoice Example In the United States, Puerto Rico, and Canada taxes imposed on PSTN Services are considerably more complex than standard sales/use tax. Due to these tax implications, invoices in the US, PR, and CA will show three lines for Office 365 E5. Example view of Office 365 E5 and PSTN Services broken out on customer’s invoice The O365 price and applicable taxes for the non-PSTN portion of the suite What do partners need to know? In the US, PR, and CA the price billed to Partners and paid by Partners to Microsoft includes applicable taxes and fees.  In other markets taxes will be applied per the normal invoicing process. The PSTN Conferencing portion which is tax inclusive Microsoft Internal & Partner Use Only

24 Skype for Business Server RightsE5 and Cloud PBX customers will be able to connect their existing PSTN service provider with Microsoft’s cloud-based call control. Scenarios are based on whether a customer already has a Skype for Business Server deployed Existing Server No Existing Server Customers with an existing Skype for Business Server deployment can configure it to connect to Cloud PBX functionality Covered under existing Server licensing Customer can leverage a minimal Skype for Business Server deployment Four preconfigured Virtual Machines are deployed on customer owned Windows Servers Skype for Business Server roles in VMs are not paid roles and are licensed for use with Cloud PBX Microsoft Internal & Partner Use Only

25 Step ups for add-ons Licensing Model8 new Step-up Add-on SKUs: For E3->E5 and E4->E5 For CoreCal vs. ECAL For Device vs. User Licensing Price is calculated as the difference between two SKUs Highlights: E3 Add-on E4 Add-on E5 Add-on Step Up to E5 Add-on $13 $11.30 Microsoft Internal & Partner Use Only

26 Paths to Office 365 E5 E5 E3/M365 E3 E4 $15 $13 Step Up to E5Microsoft Internal & Partner Use Only

27 Paths to cloud voice for E4Full IT & End User Value E5 Cloud PBX and PSTN Conferencing Advanced Security and Compliance End User and Organizational Analytics +$13 Voice in the Cloud E3 Cloud PBX +$6 E4 $22 On-Prem PBX Prices reflect the incremental cost of customers transitioning from E4 to either E3 with Cloud PBX or E5 E4 customers can also maintain current licensing position by having E3 + On-Prem PBX E4 will remain on the Price List until June 30th, 2016 after which point it will be available as Lead Status only Microsoft Internal & Partner Use Only

28 Scenario summary ↑ Current Licensing PositionEnd State Licensing Position What they have Current Price What they want Additional SKU(s) Additional Price E4 $22 E4 ↑ E5 E5 Step up SKU +$13 E5 Step up E3 $20 E3 +$15 E5 Step up E3 with Cloud PBX Cloud PBX Add on +$8 Cloud PBX E3 Plus CAL $2 Plus CAL M365 E3 M365 E3 with O365 E5 M365 E3 with E4 $2 Voice Add on Microsoft Internal & Partner Use Only

29 Additional Resources Skype for Business PSTN Services – Internal Introductory Licensing Overview PowerPoint deck offering a high level overview on all Skype for Business PSTN Services features and functionality specific to Cloud PBX, PSTN Conferencing, and PSTN Calling services. Skype for Business PSTN Services – Internal Advanced Licensing Details Building on the Introductory Licensing Overview listed above, the Advanced Licensing Details deck provides a deeper dive on all licensing components and advanced features and functionalities for Cloud PBX, PSTN Conferencing, and PSTN Calling. Office 365 E5 Licensing FAQ Comprehensive FAQ providing complete licensing details for Office 365 E5 and additional Office 365 E5 component features. Skype for Business PSTN Licensing FAQ Comprehensive FAQ providing complete licensing details for PSTN Cloud PBX, PSTN Conferencing, PSTN Calling and PSTN Consumption. Office 365 Government Licensing FAQ Comprehensive FAQ providing licensing details regarding the different Government channels and offerings. Microsoft Internal & Partner Use Only

30 Microsoft Internal & Partner Use Only© 2016 Microsoft Corporation. All rights reserved. Microsoft, Windows, 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. Microsoft Internal & Partner Use Only

31 E5 Promo SKU – Partner Email Template – US & PROpen this file to see the template Microsoft Internal & Partner Use Only

32 E5 Promo SKU – Partner Email TemplateOpen this file to see the template Microsoft Internal & Partner Use Only 38

33 E5 channel and segment availabilityMICROSOFT CONFIDENTIAL: INTERNAL PURPOSES ONLY UPDATED 3/1/17 Voice Security Analytics PSTN* Conf PSTN1 Calling Cloud PBX Threat Intelligence ATP ASM Advanced Compliance3 MyAnalytics Power BI Pro EA/EAS MOSP CSP MPSA Open NA Syndication Live GCC Live2 Q1 FY17 (Q3 FY17 fully compliant). ATP stand-alone is live. EDU Non-Profit Direct Live NA Indirect 1Limited geo availability. Please see the PSTN Services Availability slide for more details. Depending on regional availability, customer will be able to purchase E5 (including PSTN Conferencing) or E5 without PSTN Conf. 2PSTN Conferencing is only available as a stand-alone in GCC, not as part of Office 365 E5 3Advanced Compliance capabilities in GCC will roll out at different intervals. For more information view the Government Licensing FAQ Microsoft Internal & Partner Use Only MICROSOFT CONFIDENTIAL – INTERNAL PURPOSES ONLY

34 E5 “Single SKU” with PSTN Conferencing now availableWith the E5 “Single SKU”, customers will have an improved purchasing experience by now only having to order a single SKU for $35 which includes everything in E5 including PSTN Conferencing. Channel Availability EA Direct, EA Indirect1 CSP, MPSA, EES/School and Web Direct GEO Availability Available in all countries where PSTN Conferencing is available (see availability slide) 2 1The old E5 w/out PSTN Conferencing SKU will be removed from all price lists on 9/1/16 but will stay in lead status in EA Indirect only in US and PR until 7/1/17 2In countries where PSTN Conferencing is not available, customers can purchase the new “E5 w/out PSTN Conferencing” SKU for $35. The $4 PSTN Conferencing Add-on will remain on the pricelists for Skype for Business Plan 2, Business Essentials, Business Premium, E1, and E3 customers. Microsoft Internal & Partner Use Only

35 E5 “single SKU” renewal scenariosCurrent Licensing SKUs New Licensing SKUs What they have Current Price New SKU New Price E5 + PSTN Conf Add-on $33 + $2 = $35 ↑ E5 (with Conf)* $35 E5 only (PSTN Conferencing Sell-to Market) $33 E5 only (PSTN Conferencing Non Sell-To Market) E5 w/o PSTN Conf* Due to the complexity of some transition scenarios, the old E5 and PSTN Add-on SKUs will remain available temporarily in some channels: $33 E5 w/o PSTN SKU $2 PSTN Add-on SKU Channel Available through EA/EES/School Indirect (US, PR) Lead Status 7/1/2017 CSP/Open/Syndication1 - - 1The New E5 SKUs for $35 will not be available in Open. Geoblocking will be used to enforce the transaction of E5 (with Conferencing) in all Sell-to markets and the transaction of E5 w/o PSTN Conferencing in Non Sell-to markets. For detailed transition information visit the E5 Licensing FAQ Microsoft Internal & Partner Use Only

36 E5 “Single SKU” Migration PathMigration Path for customers when non sell-to countries become sell-to Program Migration Path Options EA EES/School Existing customers who have bought $33 E5 w/o PSTN are allowed to purchase the $2 PSTN Conf until July 2017 Existing customers that bought the $35 E5 w/o PSTN Conf, can buy a $0 Step-up SKU from E5 w/o PSTN Conf to E5 (with PSTN Conferencing) MPSA Existing customers who have bought $33 E5 w/o PSTN can purchase the $4 PSTN Conf. Existing customers who have bought $33 E5 w/o PSTN can purchase a $2 Step-up SKU from E5 w/o PSTN Conf to E5 Cloud Solution Provider Program (CSP) Existing customers can terminate their existing E5 w/o PSTN Conf subscription ($35) and purchase the new $35 E5 subscription Direct Program (MOSP) Customers will see a transition path from E5 w/o PSTN Conf to E5 in the portal Microsoft Internal & Partner Use Only

37 Office 365 E5 Step Up Promo – expired 6/30/17New Step up offer targeting Office 365 E3 customers who want the immediate value Office 365 E5 but are not yet ready to transition their PBX services1 What Delivers $23 in standalone value across Security, Voice and Analytics; targeting Office 365 E3 customers Provides all components Office 365 E5, except Power BI Pro and Cloud PBX, at +$10 pupm2 Customers can avail the E5 Step Up from E5 without Pro BI and Cloud PBX for $5 pupm in the future if they want to add Pro BI and Cloud PBX at a later date When Offer available September 30, 2016 through June 30, 2017 How Available for customers mid-term or renewal Lead Status only through November 30, 2016 After December 1, 2016 offer will be generally available3 (pricelist preview on 11/1) 1Available only in markets where E5 (w/ PSTN) is available as of 9/1, customers must renew in FY17 or recently renewed, EA/EAS, Commercial and Government Customers 2Price listed is the step up price of +$10p/u/m on top of Office 365 E3 3EA/EAS only Microsoft Internal & Partner Use Only