FD Insights Issue 4 | Page 35

| Distributor Overview The Microsoft Services Provider License Agreement (SPLA) enables Hosting Providers and ISVs with a hosted offering to license Microsoft products on a monthly basis to provide services and hosted applications to their end customers. The SPLA hoster is the licensee and is responsible for providing SPLA usage reporting to the SPLA distributor each month. The SPLA hoster maintains a separate contractual relationship with the end customer for use of the Services and the distributor has no role in this process. Licenses acquired under the SPLA are monthly non-perpetual licenses that can be used during the agreement’s term. Why Microsoft SPLA? Overall customer spending on cloud services is expected to grow 25% annually from 2011 to 2015. In addition, 56% Microsoft SMB customers surveyed with 50-250 employees expect to adopt a paid cloud service in the next three years. 19% 5x SPLA Hosting is growing faster than Open Licensing of new private cloud instances will be at Hoster Data centers by 2014 Cloud Instances are growing at CAGR 45% Cloud SPs will account for >19% of combined server and storage spending by 2014 Benefits of Becoming a SPLA Hosting Partner • • • • • v0712 No upfront costs; pay for only what was made available to customers the previous month Access to most current Microsoft product versions Ability to test and evaluate Microsoft products for up to 90 days Include affiliates and services resellers under a single agreement Provide customer facility installations Overview 2