Office 365 Open & Office 365 FPP FAQ
Office 365 Open & Office 365FPP FAQOverviewWhat is Office 365?Office 365 is an online subscription service that provides email,shared calendars, the ability to create and edit documents online,instant messaging, web conferencing, a public website for yourbusiness, and internal team sites—all accessible anywhere fromnearly any device.To learn more about this product, please -is-office365.aspxto explore what Office 365 can do for organizations.What is theMicrosoft OpenProgram?Microsoft Open Programs provide small and midsizeorganizations with a cost-effective way to purchase softwarelicenses, including Open, Open Value and Open Value SubscriptionLicenses. The Open programs are a convenient and simple way fororganizations that want to make a minimum initial purchase of atleast five licenses to acquire the latest Microsoft technology.What is FPP?FPP stands for full packaged product, available at retail stores andsoftware resellers. This includes physical boxes of licensed productas well as electronic key distribution from a smaller number ofpartners.What are Office365 Open andOffice 365 FPP?The Office 365 Open and Office 365 FPP are new business modelsfor partners to sell Office 365 using the existing Open and FPPlicensing programs.In Office 365 Open, reseller partners are able to purchase the newOffice 365 Midsize Business service in the Microsoft Open Programsthrough distributors and resell the product to customers. For Office365 Open, purchases will be available as a digitally distributedproduct key. Customers can redeem the product keys onOffice.com/get365, similar to unlocking a copy of Office with aproduct key today.In Office 365 FPP, Office 365 Small Business Premium will beavailable as POSA (point of sale activation) or microcase (inventory
value) available through retail, retail.com, OEM, or VAR. Similar toOffice 365 Open, customers can redeem the product keys onOffice.com/get365, similar to unlocking a copy of Office with aproduct key today.If the customer is a new Office 365 user, they can use the key tocreate a new account. If they are an existing Office 365 customerwith Midsize Business or the Small Business SKUs, the customer willlog-in with their Office 365 Org ID to add the seats to theirsubscription.Descriptions of both new offerings – Office 365 Midsize Businessand Office 365 Small Business Premium – appear below.Why are youcreating Office 365Open and Office365 FPP? What isthe purpose ofhaving both theAdvisor and Office365 Open andOffice 365 FPPmodels?Office 365 Open and Office 365 FPP subscriptions will enable ourreseller partner ecosystem to bill customers directly and receiverevenue and margin up front, similar to how partners sell onpremise products today.How doesMicrosoft ’s rolechange underOffice 365 Openand Office 365FPP?Microsoft will continue to provide the service and the support forcustomers. In addition to the sales and account managementfunction, partners also bill customers under Office 365 Open andOffice 365 FPP subscriptions.When is it coming?What preparationis required forpartners?Office 365 Open and Office 365 FPP are coming in Q1 2013. In themeantime, partners should become familiar with Office 365 servicesand continue selling these services to their customers through theAdvisor Program.Advisor Partners are often partners without existing on-premisebusiness. They can use this model to build a recurring revenuestream selling Office 365 without investing in subscription billingsystems. Both models are designed to provide customers andpartners with the flexibility to choose the sales path that best suitstheir needs.Office 365 Open will follow the current process through which OpenPrograms are transacted. Office 365 FPP will be ordered like FPPproducts are ordered today. Reseller partners should call their localdistributor to understand the process of these programs. Inaddition, Microsoft will provide more detailed training andinformation on MPN as launch approaches.
What SKUs will beavailable thruOffice 365 Openand FPP?Office 365 Midsize Business is available through the Openprograms. It will also be available in our advisor program, directlyon our website and through our syndication partners.Office 365 Small Business premium will be available through ourthrough our traditional channels that sell FPP as a physical boxedproduct. It will also be available in our advisor program, directly onour website and through our syndication partners. Product featureswill be the same across channels.The Enterprise suites and standalone SKUs are not available throughFPP and Open at general availability.Why are differentproducts availablein these channels?We have designed offers targeted to the different needs forcustomers who purchase in different channels. Our small businesscustomers want simplified IT management and purchase Office inretail environments. Our midsize business customers have moreadvanced needs due to their size and typically purchase throughour large partner ecosystem alongside additional value addedservices.What’s thedifferent betweenOffice 365 SmallBusiness Premiumand Office 365Midsize Business?Office 365 Small Business Premium is designed for businesses with10 or fewer users without IT personnel. It provides a subscriptionversion of the Office client as well as Exchange business email, andcollaboration through SharePoint. It also provides IM/presence andmeetings through Lync.Office 365 Midsize Business is designed for companies withbetween 11 and 250 users. It provides the features of Small BusinessPremium as well as improved phone support, Active Directory and amore advanced IT admin console. It also includes a full version ofOffice 365 ProPlus, our best version of the Office client.Small Business Premium Subscriptions have a technical cap of 25users. Midsize Business Subscriptions have a technical cap of 300users. These user caps are designed to ensure a positive customerexperience based on the SKU design.Partner ModelWhat are thePartnersrequirements forselling in the Openand FPP programs?All partners will be able to sell the products available in Office 365Open and Office 365 FPP as long as they establish a resellerrelationship with one of our authorized distributors. Prior to sellingin the Open Programs, please learn about Microsoft VolumeLicensing from http://www.microsoft.com/licensing/Default.aspx
Are Partnersallowed to sellOffice 365 Openand Office 365 FPPglobally?Open and Retail Programs are both regionally bound programswhere each distributor is authorized to sell in specific geographicallocation. Also, reseller partners are allowed to sell Office 365 Openand Office 365 FPP only to end customers who are located whereOffice 365 subscription is available for direct purchase.How does billingwork?In Office 365 Open and Office 365 FPP, partners will pay thedistributor and bill the customer directly for the services.How do partnersgenerate revenuewith Office 365Open and Office365 FPP?Partners will receive up-front margin like other Open Programspurchases. Additional rebates will be available for qualified partners.Partners will continue to receive up-front margins when additionalseats are ordered and if they renew the customer thru the Office365 Open or Office 365 FPP.Do partners getpaid rebates andcoop based onwhen product keysare sold or whenthey are redeemed?Both Distributors and Resellers are paid based on products sold.That said, partners should help customers redeem their purchaseand get set up as quickly as possible to ensure the best customerexperience and provide the best opportunities for renewal in thefuture. Microsoft will work to provide Distis and Resellers visibilityinto the redemption status of product keys to enable this.Are Office 365Open and Office365 FPP seats alsoeligible for advisorfees?Advisor fees are not available to advisor partners when seats aresold through Office 365 Open and Office 365 FPP. Partner listed asthe partner of record (POR) will receive the advisor fees if acustomer selects direct billing during renewal or for the purchase ofaddition of seats. Microsoft Online Services Advisor status isrequired to be listed as the Partner of Record (POR) on customer’sOffice 365 subscription.Are Partnersautomatically listedas the Partner ofRecord (POR)?No. POR will need to be designated through the administrationconsole in Office 365. Being POR will enable you to be copied oncustomer communications and have additional tools.How can a Partnerbecome an OnlineServices Advisor?Visit https://www.microsoftcloudpartner.com to learn how tobecome a Microsoft Online Services Advisor.Can the POR bedifferent than theOffice 365 Openand Office 365 FPPpartner?Yes. If a customer switches partners, they will have the ability toupdate the POR field at any time.
What is the Adminon Behalffunctionality inOffice 365?Can partners sellingOffice 365 Openand Office 365 FPPutilize Admin onBehalf?“Admin on Behalf” is a feature available to partners that enablesthem to have greater administrative control over customeraccounts. For example, partners can act on behalf of their customersto complete key activities such as password resets, user accountmanagement, and service request oversight.Yes, partners selling on Office 365 Open and Office 365 FPP canutilize Admin on Behalf. However, Admin on behalf does require apartner to be listed as the POR and have the customer agree to theadmin on behalf capabilities.In order to be listed as a POR, a partner must first sign-up for CloudEssentials where they will complete the simple process of signingthe MOSPA agreement to receive a partner ID number. Then, acustomer can go to the Admin tab and use this ID number to addthe partner as the POR for their account. Please visithttps://www.microsoftcloudpartner.com to learn more.Are there partnerbenefits associatedwith Office 365Open and Office365 FPP?Training will be available through distributors and the advisorprogram. Partners are encouraged to join MPN for other benefitsrelated to Office 365. Please head to www.mspartner.microsoft.comfor more information.CustomerExperienceWhat bundle sizeswill be offered tocustomers?Why do I have topurchase bundlesinstead of a singleproduct key for allthe licenses I need?How long is thesubscription?Office 365 Midsize Business will be sold in bundles of 1, 5, 25, and50 users for 1 year.Office 365 Small Business Premium will only be sold in units of 1user for 1 year.Support for dynamic PIN generation (i.e. redeem a single productkey for the given number of licenses purchased) is a priority featureon the current product roadmap. Although this functionality will notbe available at launch, we hope to offer this feature soon.Each user subscription expires 1 year after activation, not after thepoint of sale.
Office 365 OpenSubscriptions willbe sold in bundles.Can bundles bebroken up?Individual bundles cannot be broken up and must be redeemed allat one time. Customers can combine bundles to meet the exactneeds of the customer (i.e. a customer needs 6 seats so the partnershould sell a 5 seat key and a 1 seat key).Can Office 365Open and Office365 FPPsubscriptions beresold from oneVAR to another?No. Office 365 Open and Office 365 FPP subscriptions will be soldexactly like Office is sold through Open and FPP programs today.Partners should not be making Office 365 Open and Office 365 FPPsubscription transactions outside of a distributor relationship. In thecase of Open, there is no physical distribution and an order shouldonly be placed after receiving an order from the customer.Do the Office 365Open and Office365 FPP ProductKeys expire? If so,after how long?Product keys must be redeemed within 5 years from the time thatthey are purchased from Microsoft .Can customerscombine two Office365 Open andOffice 365 FPPproduct keys toextend service foran end user/seat totwo years?No. At launch, the product will only be available in 1 yearincrements.Can Office 365Open and Office365 FPP supportsubscriptionspurchased frommultiple partners?Office 365 Open* and Office 365 FPP can be purchased frommultiple partners and combined on a single tenant.Can unused Office365 Open andOffice 365 FPPsubscriptions bereturned? Cancustomers cancel?Office 365 Open subscription product keys cannot be returned.Customers can sign up for a free 30 day trial for any of our productSKUs to ensure the service meets their needs prior to purchase.*Change of channel partner in Open Value Program requires an additional step.Please consult authorized Distributor.In Open, Product keys are delivered electronically directly to thecustomer upon purchase so should not be purchased until an orderfrom a customer has been placed. This is consistent with the OpenAgreement today.
Office 365 FPP product keys cannot be returned if the seal on thebox is opened. Office 365 FPP may be returned to a distributorbased on its return policy.Once redeemed, subscriptions can be canceled but there will be norefunds. The subscription will expire at the conclusion of thesubscription billing cycle.How do customersreduce the numberof seats?Seats can only be reduced at renewal.Are subscriptionstransferable?Subscriptions are also not transferable, consistent with Microsoft Office 365 terms of service today. However, customers may reassignthe licenses from one user to another user within their organization.For Office 365 Midsize Business, the re-assignment within theirorganization is allowed only within the Microsoft defined territory.More detail can be options/openregional.aspxWhat is thecustomerexperience atexpiration?The customer and Partner Of Record will receive the renewal notice60 days, 30 days, 7 days and 1 day prior to expiration. The 60, 30,and 7 day notifications are tailored for Open and FPP purchases toinstruct customers to see their partner to get a new product key.Partners should contact their customers prior to expiration to renewtheir account with Office 365 Open and Office 365 FPP subscription.Customers will be able to use product keys from any partner torenew their subscription. Partners can also choose to switch theircustomer to direct billing model from Microsoft . During directrenewal, the new subscription will start immediately so customersshould not renew until expiration. Partners will receive advisor feeson direct renewals if they are listed as the POR.Can a customer addseats or extendsubscription with acredit card?Yes, a customers can purchase incremental seats directly or extendtheir existing subscription with a credit card. This purchase will shiftthe customer from the Open model to the Advisor model, but willnot impact any functionality of the product. If the partner is listed asthe PoR, they will receive the corresponding advisor fees related tothese purchases.What happens if acustomers does notrenew?If a customer does not renew, they have a 30 day grace periodwhen they can continue using the service. After that point, theyhave another 90 days when data is held, but functionality is severely
reduced. The customer can reactivate the subscription at any timeduring this period and the billing will be retroactive from theexpiration date. After the 120 days, the data is deleted fromMicrosoft servers.TransitionsHow can customerstransition betweenSKUs?We are currently working to improve transitions between SKUs. Inthe interim, we support customer moving within product families(e.g., Small Business to Small Business Premium), but not acrossproduct families (e.g., Small Business to E1, Midsize Business to E3)Additionally, the Midsize Business SKU cannot co-exist with thestand alone service offerings such as Exchange Online (Plan 1). As aresult, existing Exchange Online Plan 1 customers who want to usethe Office 365 Midsize Business would be required to cancel theirsubscription and sign up for Exchange Online Plan 1. This is due todifferent user experiences tailored to the individual marketsegments.Will customerspurchasing viathrough MOSA beable to move toOpen?Customers within the same family (e.g., Small Business) will be ableto transition between models at GA. As Office 365 Midsize Businessis not currently available, there will be no transition path for currentcustomers available at GA. We are currently working to provideadditional options.Microsoft paysadvisor fees for ayear for newcustomers. If acustomer istransitioned toOffice FPP or Openbefore the year isover, will Microsoftask for fees back orgarnish future fees?No, the partner will keep the fees in exchange for the pre-salesservices. However, the customer has a one year contract for seatspurchased through advisor so may be subject to early terminationfees, so partners should wait until the customer term has expired.Are there offers forcurrent customerson Open L&SA/OVthat want to moveThe current Office 365 Open Value Offer provides new flexibility forcustomers to move users online by adding MOSP alongside theirexisting OV(S) agreement. OOVO is being extended for anotheryear (though August 2013).
from on-prem toO365?LicensingIn which VolumeLicensing Programswill Office 365Open be offered?The Office 365 Midsize Business product that is part of Office 365Open will be available in Open License, Open Value and Open ValueSubscription Programs, for commercial customers.Will OpenProgramsminimum orderrequirement apply?No. Open Programs’ 5 license minimum order requirement iswaived for Office 365 Open. Orders with the quantity of 1 will beaccepted.Is there a volumediscount for Office365 Open?There is no volume discount for Office 365 Open. Consequently, onOpen Programs Pricelist for Distributors, ‘Level C’ Price Level will notexist.What are thepayment optionsavailable for Office365 Open?An up-front payment of 12 months’ subscription is the onlypayment option available for Office 365 Open.What happenswhen someonepurchases from aregion whereOffice 365 cannotbe provisioned? Isthere a refundprocess?Partners are expressly prohibited from selling Office 365 Open incountries where Office 365 is not available. Office 365 Open is notrefundable once provisioned.Can Office 365Open be purchasedby customers whoalready have anactive Open Licenseor Open ValueAgreement?Yes. Office 365 can be purchased by existing Volume LicensingCustomers, regardless of the remaining term of their currentagreement.Will Office 365subscription expirewhen a customer’sOpen Programscontract expire?No. Open Programs’ agreement and Office 365 subscriptionexpiration dates are independent which allows flexibility ofpurchase.Note: 5 desktop minimum rules still apply to start Open Value/Open ValueSubscription Agreement with Organization-Wide Commitment.
What is the courseof action if mycustomer’sagreement justexpired?Partner can simply place a new order for Office 365 MidsizeBusiness to Microsoft via a Distributor. Distributor can purchasethrough Open License Program, which will automatically starts anew 2 year Authorization Number.Will buying Office365 enablecustomers to canceltheir currentVolume Licenseagreement in themiddle of theagreement term?Office 365 subscription and on-premise Office software are separatewith different customer experience and benefits. Purchases alreadymade for Office or Client Access License Suite will not be creditedwhen customers purchases Office 365. Likewise, Open Value/OpenValue Subscriptions’ future anniversary orders are still due to befulfilled.Does the Office 365Open count towardthe Open Value’sOrganization-WideCommitment?Office 365 Open is “Additional Product” offer type and by itself doesnot automatically count towards the organization-widecommitment. However, organization-wide committed customerswith Office and/or Client Access License (CAL) Suite can qualify for adiscounted price of Office 365 Midsize Business, which is availablein Office 365 Open.Does Office 365Open have a buyout option viaOpen ValueSubscriptions?No. The product available (Midsize Business) in Office 365 Open is apure subscription service and does not have a buy-out option.How do I activateO365 purchasedfrom OpenPrograms?Upon processing of your order, Microsoft sends an email to EndCustomer as well as Reseller Partner with the instructions.In summary, following is the process:1. Customer, or Partner on behalf of customer, log on to VolumeLicensing Service Center enter/default.aspx.2. Obtain product key called Online Service Activation (OSA) Keysat either of the following locations from the VLSC Homepage: Download & Keys find the Product/Service name click Key Licenses Relationship Summary Click on the LicenseNumber Product Key3. Copy the Keys and activate the Office 365 athttp://www.office.com/setup365Who is expected toactually obtainKeys from VLSCWhile the entire process is end customer ready, Microsoft encourages Partners to manage the process on behalf of endcustomers as part of their value-add-service.
and redeem Office365 from theredemption site?Can Partner signcontract on behalfof end customerinside VLSC?Before partner may accept the Open License Agreement on behalfof customer, partner must be authorized by the customer to act astheir agent in connection with the customer’s agreement withMicrosoft .What is an OnlineSubscriptionActivation (OSA)Key and how do Iuse it?An Online Service Activation (OSA) Key is a type of product key, andthis single-use redemption key is used to activate subscriptions toMicrosoft Online Services. OSA Key is distributed electronically viaVLSC and can be redeemed at the Office 365 redemption site athttp://www.office.com/setup365What is thedifference betweena 1-seat, 5-seat, 25seat, and 50-seatKeys?Each type of Keys activates a 12 months subscription for a givennumber of users. A 5-seat Key can be used to license 5 users forone year, but cannot be used to license one user for five years.How do I knowwhich Keys havebeen redeemed?The redemption status of each Key will not be available in VLSC asof the launch time of Office 365 Open. Partners are encouraged tomanage Keys on behalf of end customers and can use the ‘Export toCSV’ function in VLSC for keeping track of Keys via Excel.How can a partnersee Keys for aspecific customeror order?The Relationship Summary view on the Licenses tab in VLSC showseach license agreement (and their associated Keys) separately.How do I addadditional users tothe Office 365Subscription?Several options exist for adding additional users to Office 365.Additional O365 subscriptions can be purchased via Open Programsin the same manner as the original purchase using the same set ofSKUs. Additional users can be added from the Licenses page in theOffice 365 Administrative Portal directly as well, that would bypassthe purchase via Open Programs altogether. Partner compensationmodel is different for purchases made directly thru the O365 Adminportal so please use the option that works the best for you and thecustomer.O365 Subscriptions with two different payment methods cannot bemanaged as one subscription. Both subscriptions will be on thesame tenant and the licenses will be pooled for use across all users.
How do I decreaseusers of Office 365Subscription?Reducing the number of seats is possible during the renewalprocess directly from Office 365 Administrative Portal.Can a single key beused to both addusers and alsoextend asubscription?I added users toalready existingOffice 365subscription butthe new expirationdate shows lessthan 12 months ofservice. Why?No. Keys may be used to add users, or to extend a subscription, butnot both.Users can be added to a Product Key subscription midterm, butservice time will be distributed evenly across all users to maintaincoterminous end-date. This way, administration of renewal issimpler to manage without different end dates across all users. Dueto this system calculation, newly added users may receive less thanfull 12 months of service.
licensing programs. In Office 365 Open, reseller partners are able to purchase the new Office 365 Midsize Business service in the Microsoft Open Programs through distributors and resell the product to customers. For Office 365 Open, purchases will be available as a digitally distribu
Office 365 is a sub brand of Office that reflects Office as a service and include traditional Office apps and cloud-based services. The first mention of “Office 365” in body copy must be referenced as “Microsoft Office 365”. After the first mention, Office 365 may be referenced as: Microsoft Office 365 Office 365 Office 365 SKUs
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