QUOTES & PRICING

33%•Enterprise Products
Additional Online
Additional Products

Average Discount2 Yrs

Agreement Term

Driven by XXX to align with merger•

activities. Advantageous to MSFT as•

pricing for Online Services can be•

Discount is COMPETITIVE and CONSISTENT
for most products
There may be scope for further negotiation
re additional Online SKUs however lack of
discount for Online SKUs is consistent withcurrent market

IDC ESSENTIALGUIDANCE•

reviewed/realigned 1 year earlier

Consider the potential cost increases at End Of Term for heavily
discounted products
Consider ability to deploy extra functionality from M365/E5 SKUS within
the time period
Note “Sticky “ SKUs such as M365 and E5 OS, where if deployed would
be difficult to revoke, should prices increase after term

Highlights and Comparison

XXX Services USA•••

Discounts for XXX Additional Perpetual Products are seemingly further
discounted, however this is due to full License + SA SKUs quoted,
potentially being a Subscription (see below). Aligning similar SKUs
would re-align discount to @ 22% average.
Additional Online SKU discount may benefit from negotiation
There may be an economy of scale for Additional Online SKUs, consider
if there is a further requirement and/or where volume may influencepricing

XXX US LLC

Average Discount 21%

63% Average Discount••

Enterprise Products 23%

23% Enterprise Products•Additional Products 21%

75% Additional Products•OVERALL PRICE DISCOUNTING
IS MARKET COMPETITIVE

ADDITIONAL ONLINEPRODUCTS SEE LOWEST
DISCOUNTCONSIDER THE AFFECTOF 2 YEAR TERM ON
FUTURE PRICING

Discount is HIGH for License + SA SKUs
XXX Renewal Summary states EA however
SKUs/Cost indicate could be EAS
Could be due to Buyout + SA factored
across the term rather than EAS
Double check agreement and any
additional terms

CHECK AGREEMENT TYPE ANDTERMS FOR XXX US LLC
RENEWALFurther Quote & Demand Analysis
M365 Options

XXX US Enrolment Demands

Note the removal of SKUS from M365 Quotations for XXX US LLC as follows

There is a 7% reduction in overall USER count for Enterprise Enrolments, however the following SKU
remains static. This should be verified, noting that Identity Manager External Connectors are also owned.

SfBSvr ALNG LicSAPk MVL
SharePointSvr ALNG LicSAPk MVL5HU-00215
H04-00232

16103

$$

26,121.60
313,490.80

IdentityMgrCAL ALNG LicSAPk MVL UsrCAL

This is based on the following (Microsoft Product Terms May 2020):

2.2.1 Office Servers
Each Licensed User assigned a Microsoft 365 E3/E5 User SL may:
•install any number of copies of the following server software on any Server dedicated to Customer’s use: Exchange Server,SharePoint Server, and Skype for Business Server; and•access to the above server software is exclusive to those users assigned a Microsoft 365 E3/E5 User SL or ExternalUsers.

Ensure this restriction is suitable, especially when considering any potential/future use of servers
licensed under M365 by non M365 users, ie those from other group companies/entities

O365 Step Up Option

Comparative base cost/User 1yr for OS+Office+CALS via different quoted SKU routes as follows

CALs + Step Ups $198
VSM365 $216
Note: M365 SKU gives additional benefits is PER USER OS and On Premise Server Rights for SfB and SharepointXXX US Additional Demands
Pricing for M365 indicates potential for future purchase. Note there could be a decreased ROI ifpurchasing this outside of agreement as there would be a duplication of entitlements between M365
Subscriptions and Enterprise User/Device Enrolments, ie Windows 10.
Note that Office 365F1 / Microsoft 365 F1 terms of use were amended in 2019 to be more restrictive
as to where/how they can be used. Ensure this is understood compared to previous terms whichwere not restrictive: “A Dedicated Device is a computing device used for work with a 10.1” screen or larger,
used by the user more than 60% of the user’s total work time during any 90-day period”

Note that current O365 F1 and M365 F1 Plans are to be rebranded as F3 (announced Mar20). This isdue to a new M365 F1 SKU being released, with different cut down entitlements when compared tothe previous F1 SKU. The SKUs and Entitlements should be validated to ensure the required plans
are quoted correctly for future.

IDC ESSENTIALGUIDANCE

CONSIDER M365 ENTITLEMENTS AND
RESTRICTIONS AND THEIR AFFECT ON
FUTURE LEVERAGE

NK7-00065

55,141

55,163External Connector licenses such as those for Windows Server (increased 200%) and Identity Manager areoften a common cause of discrepancy in the way they are understood and applied. It would be pertinent tovalidate and document these deployments for posterity.

XXX Subsidiary Demands
There is no change between current and required quantities which could feasibly be due to• Accurate Year 3 True Up• No change to the state/deployment
Should the above not be the case these figures should be reviewed, especially if quantities have remained
static for the duration of the previous Enrolment (3yrs), ie no changes at True Up.
There is a significant delta between the following SKUs which are often relatedSysCtrStdCore ALNG LicSAPk MVL 2Lic CoreLic
WinSvrSTDCore ALNG LicSAPk MVL 2Lic CoreLic

9EN-00494
9EM-00562

6470

This should be verified as the delta is noticeable however this could be legitimate ie• There are server instances not managed by SC• The servers are not deployed• There is pre-existing entitlements outside of EA(Note the CISSteDCCore SKU contains Systems Center for that SrvDC deployment)

Considering CALs, there is potential for issue with the following;
Product Description
O365E3FromSA ShrdSvr ALNG SubsVL MVL PerUsrCoreCALBridgeO365FromSA ALNG SubsVL MVL Pltfrm PerUsr
WinE3FromSA ALNG SubsVL MVL Pltfrm PerUsr

Part No
AAA-10758
AAA-12417
AAA-10777

AS-IS Qty
435
435
435

New Qty
435
435
435

SQLCAL ALNG LicSAPk MVL DvcCAL

359-00765

435

435

Having the same quantity of USER CALS as DEVICE CALS could indicate a 1:1 relationship between
Personnel and Computers which in many scenarios is not the case. This should be validated to ensure SQL
data is only being leveraged from 435 devices, considering multiplexing.

MISALIGNED DEMAND AND MIXING CALTYPES MAY BE LEGITIMATE HOWEVERSHOULD BE CHECKEDIF CONSIDERING M365/O365 F1 REVISITTERMS/CHECK SKUS DUE TO RECENTCHANGES