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Microsoft Office365 9/13/2018 Office 365: The Partner Profitability What’s my opportunity as a partner? <Presenter> Microsoft © 2012 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.
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Drumbeat: Office 365 Sales Readiness for Enterprise Partners
Office 365 Overview What’s my opportunity as a partner? How do I pitch to my customers? How do I show customer value using demo? What are the licensing & pricing options? How do I transition to high value services? How do I get support and help my customers? How do I handle major objections to Office 365?
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Partner opportunity in the cloud with
9/13/2018 Partner opportunity in the cloud with My opportunity Getting started Growing my business Partner economics for selling in the cloud How to get started selling in the cloud Selling the cloud ecosystem © 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.
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Cloud trends The economics are not theoretical anymore
All this talk about the cloud… The economics are not theoretical anymore Around 3 years ago, you heard a lot from us talking about the cloud opportunity We had projections and models and were working overtime to get partners to move forward with us toward the cloud Back then, the proof points were very limited due to just starting out Understandably, some of you hesitated. If I’m going to change/evolve my business into cloud, theory is not enough However, now the economics and proof points are no longer theoretical as we’ve had time in market to prove some things out
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45 15 The economics are not theoretical anymore % %
All this talk about the cloud… of IT budgets will be devoted to IT cloud initiatives 45 % By 2016 being devoted to public cloud 15 % with The economics are not theoretical anymore These might be familiar stats to some of you The cloud is inevitable. It’s happening quicker than we anticipated. 45% of IT budgets are expected to be devoted to Cloud IT initiatives by 2016 Ask yourself how many customers you’ve talked to in the last year where the term cloud has come up in some way If you don’t have an answer for them, your competition will This is the reality, and although the reality is high disruptive, it is happening and we have to seize the opportunity
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70 45 15 and yet… The economics are not theoretical anymore % % %
of the global 2,000 will still have vast majority A of their IT on-site in 2016 70 % more than of IT budgets will be devoted to IT cloud initiatives 45 % By 2016 being devoted to public cloud 15 % with The economics are not theoretical anymore We also know that the pure-cloud play isn’t reality, especially when you look at larger and more complex enterprise environments. We are looking at a hybrid world where 15% of budgets will be dedicated to public cloud and the balance will be private, mixed with on premise This is also the reality. On premise business isn’t going anywhere soon We are seeing incredible growth in public cloud, but Partners are going to see on-premise revenue continue to grow, even if at a slower rate vs. Cloud. We’re going to continue to make money here for many years. That is reality And both the cloud reality and the on-prem reality are very good for all of us in this room. Why? First because we have been building an industry leading cloud platform. And second, because the big opportunity is in the Hybrid cloud
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Cloud-oriented partners outperform others
9/13/2018 Cloud-oriented partners outperform others 1.6X Gross profit Cloud partner = 52.3% Others = 31.8% 2.4X Faster growth* Cloud partner = 26.9% Others = 11.1% 1.5X Higher new customer mix in last 12 mo. 50%+ Cloud revenue = 43% <10% Cloud revenue = 28% “Leading-partners” are making the move first Cloud-oriented partners are still the minority, but outperforming their peers Winning deals from other partners Selling into white space Driving hybrid solutions © 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.
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Customers needs change with Cloud…
9/13/2018 Customers needs change with Cloud… Traditional Cloud Advise on infrastructure ($) Advise on business ($$) Deployment services ($) Adoption and change management ($$$) Help with workflow ($$) Help improve business process ($$$$) Help IT admin ($) Help usage and enablement ($$$$) The relationship model changes too. No longer are you only selling into the IT decision maker. The LOB profession, such as the CMO, is now buying more IT via services and by-passing the IT department. This requires you to shift into the business problems vs. the IT problems and build domain expertize to help your customers solve their business problems with solutions that won’t sit on premise. This is a real door opener and a big reason why companies delivering in the cloud are winning so many new deals and growing via the white space We also have a large number of partners who are then using that expertise to build bridges to the IT department with the business and up-level their reputation within a customer into a true trusted advisor. © 2014 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.
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…hence the role of partners is shifting
9/13/2018 …hence the role of partners is shifting Traditional Cloud IT outsourcer Business enabler Cost center Profit Center $ Budget $$$$ The relationship model changes too. No longer are you only selling into the IT decision maker. The LOB profession, such as the CMO, is now buying more IT via services and by-passing the IT department. This requires you to shift into the business problems vs. the IT problems and build domain expertize to help your customers solve their business problems with solutions that won’t sit on premise. This is a real door opener and a big reason why companies delivering in the cloud are winning so many new deals and growing via the white space We also have a large number of partners who are then using that expertise to build bridges to the IT department with the business and up-level their reputation within a customer into a true trusted advisor. © 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.
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Partner opportunity in the cloud with
9/13/2018 Partner opportunity in the cloud with My opportunity Getting started Growing my business Partner economics for selling in the cloud How to get started selling in the cloud Selling the cloud ecosystem © 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.
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Stages of opportunity with Office 365
9/13/ :36 PM Stages of opportunity with Office 365 Enhance $120+ / seat Extraordinary Adopt & Manage $ / seat LOB integration IT infrastructure design Upgrades & desktop remediation Partner revenue Year 1 Engagement New user set-up End-user training Establishment of service Help desk Change Management Updates Sell $10-48 / seat Plan $2-18K Onboard $6-20K Renew $10-48 / seat When we think about the anatomy of a Office 365 deal, it can be broken down into 4 major buckets: Licensing Revenue – This is the baseline revenue that you generate from the sale Deployment & Migration services – This includes the not only the movement of a customer’s data to the cloud but all the assessment and planning that is require. Partners on average can charge between $ per user. Managed Services & Support – This can take a variety of different flavor but some of the most common activities in the this category include new user set-up & training as well as help desk support. Partners on average can charge between $50-80 per user every year. Add-on Projects and Solutions – This is where the partners can really shine by supporting a customers expansion, offering customizations and supporting the customers future IT strategy. The revenue per user for these services varies a lot but at a minimum partner generate $40 per user per year and many times it is much, much more than that. As partners develop these skill sets and successfully attach these services to their Office 365 deals, partners will see increased revenue and improved margins from these cloud sales. Additionally, the vast majority of these revenue streams are reoccurring in nature. Partner can quickly develop an annuity stream from their Office 365 customers that is large and predictable. To help put this in perspective, let’s take a look at a example… <click> $10-48 / seat $2-18K $6-20K Rollout Migration Governance User subscriptions Add-ons Upsell Good Stage of Opportunity Note: Estimates based on partner interviews so actual numbers will differ from market to market. All revenue streams are recurring except for ‘Plan’ and ‘Onboard’ which are one-time events © 2013 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.
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Bringing it all together
9/13/ :36 PM Bringing it all together =$222,000 LOB enhancements +$85,000 Office 365 deal economics – E3 (Average 300 seat customer) Add-on software +$35,000 = $102,000 LOB integration IT infrastructure design Upgrades & desktop remediation +$23,000 Partner revenue = $79,000 New user set-up End-user training Establishment of service Help desk Change Management Updates +$15,000 When we think about the anatomy of a Office 365 deal, it can be broken down into 4 major buckets: Licensing Revenue – This is the baseline revenue that you generate from the sale Deployment & Migration services – This includes the not only the movement of a customer’s data to the cloud but all the assessment and planning that is require. Partners on average can charge between $ per user. Managed Services & Support – This can take a variety of different flavor but some of the most common activities in the this category include new user set-up & training as well as help desk support. Partners on average can charge between $50-80 per user every year. Add-on Projects and Solutions – This is where the partners can really shine by supporting a customers expansion, offering customizations and supporting the customers future IT strategy. The revenue per user for these services varies a lot but at a minimum partner generate $40 per user per year and many times it is much, much more than that. As partners develop these skill sets and successfully attach these services to their Office 365 deals, partners will see increased revenue and improved margins from these cloud sales. Additionally, the vast majority of these revenue streams are reoccurring in nature. Partner can quickly develop an annuity stream from their Office 365 customers that is large and predictable. To help put this in perspective, let’s take a look at a example… <click> $64,000 $10-48 / seat $2-18K Plan & Onboard Adopt & Manage Rollout Migration Governance User subscriptions Add-ons Upsell Enhance Sell Stage of Opportunity Note: Estimates use Office 365 E3 SKU and are based on partner interviews so actual numbers will differ from market to market © 2013 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.
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Microsoft partner migrates 2,500 Office 365 seats for an Asian airline
One of the world's best low-cost airlines servicing over 132 routes across Asia 6 2,500 Countries covered Office seats Max Solution is a highly technical and energetic team focusing on delivering cloud solutions in Asia pacific Partner Contact Information: / “Office 365 open ups the possibilities of discussing business with existing and new customers. Since adopting office 365, we have grown our business 50% compared to two years ago.” Poo Ching Loong, CEO 10,000 50% 50% Office 365 seats Growth Lower TCO Time saving
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Insight delivers 30% cost savings with Office 365 solutions
Global provider of information technology hardware, software and service solutions to business and public sector organizations Online intelligence company that helps businesses drive growth and build brands “Office 365 has given Insight the ability to offer our customers a cloud service upon which we can build a value proposition. The numerous options around deploying and supporting our clients means we can have a much closer relationship. Coupled with our own cloud services, Office 365 has allowed Insight to be more like a service provider than a reseller. Integrating our hardware, software and services we can truly offer our clients a complete solution catered to their business needs.” Ash Patel, EMEA Cloud Business & Product Manager Global offices 27 Clients 20K+ 25 5400 Years in business Employees Partner Contact Information: / Office Seats 900 Average cost savings 30% 750 300K+ Office 365 customers Office 365 seats
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Partner opportunity in the cloud with
9/13/2018 Partner opportunity in the cloud with My opportunity Getting started Growing my business Partner economics for selling in the cloud How to get started selling in the cloud Selling the cloud ecosystem © 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.
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How to start your Office 365 business? Join an MPN cloud program
Microsoft Office 9/13/2018 Join an MPN cloud program Move customers at their own pace During May 2013 we conducted multiple in-depth interviews with high performing Office 365 partners from North America, South America, Europe and Asia. This was done with the goal of understanding what makes them successful. There were a few common themes that kept showing up so we wanted to highlight those best practices here. However, we would strongly encourage those in attendance to review the full white paper on this topic that is available online at the Partner Marketing Center. The link to this report can be found on the last slide in this presentation. Ok, let’s discuss these three key best practices in more detail now… <click> How to start your Office 365 business? Build a cloud focused sales team © 2012 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.
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1. Join MPN Cloud Programs
Cloud Accelerate Cloud Deployment Program Small & Midmarket Cloud Solutions Cloud Productivity New on-premises competency benefits to help partners transition to the Cloud In FY15, we are introducing 2 new cloud competencies based Office 365 performance: Small & Midmarket Cloud Solutions Cloud Productivity With the introduction of these new cloud competencies, we will retire 2 existing cloud programs: Cloud Accelerate Cloud Deployment Program We’ll also be providing additional on-premises competency benefits to help partners transition to the Cloud: Cloud Internal Use Rights Cloud support Cloud training Silver and Gold benefits based on performance
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2. Move customers at their own pace
Microsoft Office 9/13/2018 2. Move customers at their own pace Flexible path to the cloud Three of many examples Meet user expectations for document store OneDrive for Business Engage with customers Work closely with partners Enable social communications for users and partners Yammer Easy to share Access from anywhere Partners applauded the benefits of packaging and pricing their offerings to fit with the cloud annuity model by offering fixed pricing for a standard set of offerings. By leveraging this practice, customers can clearly see the simplicity and cost predictability that comes from moving to the cloud. Additionally, many partners use these simple prices to put the costs into context for a customer. For example, partners like to quote a “per user per day” price and compare that to a common purchase like a cup of coffee. This helps the partner demonstrate to the customers the value that they will receive with Office 365 service. Finally, using packaged offerings helps to illustrate the lower investment costs allowed with the cloud verses the large upfront investment required to have an on-premise solution. These are just a few benefits and there are many more so look to implement this practice now if you are not doing so today! <click> Provide enterprise mobility capabilities Office 365 E3/Pro Plus Bring your own device Work from anywhere Roaming settings © 2012 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.
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3. Build a cloud focused sales team
9/13/2018 3. Build a cloud focused sales team Cloud Sales Team Objective Attributes Core measures Cloud Sales Representatives Drive high levels of customer acquisition through a rapid sales approach. Each is a generalist but with vertical bias to deeply address customer needs Assertive, eager to learn—new college graduate motivated by variable upside. Strong “hunter” mentality Customer adds Revenue Close rate Qualification rate Call volume Technology Sales Specialist Conduct the Learning Event presentations, engage in technical conversations, and prepare SOWs. Support a team of 5–7 Cloud Sales Reps 5–7 years tenure with experience with Exchange, SharePoint, and Lync deployments. Familiar with desktop support and management Customer adds Close rate Seats per customer Customer Retention Specialist Engage existing customers to upsell and renew contracts. Coverage to one rep for every 250 accounts Eager to learn, outstanding customer service and listening skills Motivated to farm accounts Customer renewal rate Average incremental revenue per customer gained Call volume Customer references © 2012 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.
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Partner opportunity in the cloud with
9/13/2018 Partner opportunity in the cloud with My opportunity Getting started Growing my business Partner economics for selling in the cloud How to get started selling in the cloud Selling the cloud ecosystem © 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.
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How to grow your Office 365 business?
Microsoft Office 9/13/2018 Shift conversations from IT to business value Evolve your business model During May 2013 we conducted multiple in-depth interviews with high performing Office 365 partners from North America, South America, Europe and Asia. This was done with the goal of understanding what makes them successful. There were a few common themes that kept showing up so we wanted to highlight those best practices here. However, we would strongly encourage those in attendance to review the full white paper on this topic that is available online at the Partner Marketing Center. The link to this report can be found on the last slide in this presentation. Ok, let’s discuss these three key best practices in more detail now… <click> How to grow your Office 365 business? Provide bundled offerings with Office 365 © 2012 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.
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1. Shift conversations from IT to business value
Microsoft Office 9/13/2018 1. Shift conversations from IT to business value Mobile productivity Social collaboration Personalized insight Sales productivity CIO Get work done more easily Get the most from BYOD Engage and excite customers VP HR VP Comms Increase employee engagement Innovate and stay competitive Be more responsive to customers CEO Know business performance Make better decisions, faster Get ahead of market shifts VP Sales Adapt to buying patterns Drive top-line revenue faster Increase deal size © 2012 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.
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2. Evolve your business model
Project services Managed services IP services Billable hourly-rate services. Work-for-hire and break/fix Deal-by-deal revenue Billable packaged services. Solutions and services, as a service. Ongoing annuity Value based, unique IP. Packaged product services. Valuation
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3. Provide bundled offerings
9/13/ :36 PM 3. Provide bundled offerings =$222,000 LOB enhancements +$85,000 Office 365 deal economics – E3 (Average 300 seat customer) Add-on software +$35,000 = $102,000 LOB integration IT infrastructure design Upgrades & desktop remediation +$23,000 Partner revenue = $79,000 New user set-up End-user training Establishment of service Help desk Change Management Updates +$15,000 When we think about the anatomy of a Office 365 deal, it can be broken down into 4 major buckets: Licensing Revenue – This is the baseline revenue that you generate from the sale Deployment & Migration services – This includes the not only the movement of a customer’s data to the cloud but all the assessment and planning that is require. Partners on average can charge between $ per user. Managed Services & Support – This can take a variety of different flavor but some of the most common activities in the this category include new user set-up & training as well as help desk support. Partners on average can charge between $50-80 per user every year. Add-on Projects and Solutions – This is where the partners can really shine by supporting a customers expansion, offering customizations and supporting the customers future IT strategy. The revenue per user for these services varies a lot but at a minimum partner generate $40 per user per year and many times it is much, much more than that. As partners develop these skill sets and successfully attach these services to their Office 365 deals, partners will see increased revenue and improved margins from these cloud sales. Additionally, the vast majority of these revenue streams are reoccurring in nature. Partner can quickly develop an annuity stream from their Office 365 customers that is large and predictable. To help put this in perspective, let’s take a look at a example… <click> $64,000 $10-48 / seat $2-18K Plan & Onboard Adopt & Manage Rollout Migration Governance User subscriptions Add-ons Upsell Enhance Sell Stage of Opportunity Note: Estimates use Office 365 E3 SKU and are based on partner interviews so actual numbers will differ from market to market © 2013 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.
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Microsoft investing in your success
Marketing Business & product Offers & licensing Channel incentives Readiness & resources $ global advertising Partner features Fixed $ per seat % recurring 100+ hours training courses Productivity campaign Deskless Worker campaign Office 365 Partner Admin Center Renewal process Lead generation OneDrive for Business FY15 Adoption offer Advisor Open MPSA EA Drumbeat sales readiness Ignite technical readiness MPN yammer.com/office365partners
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Takeaways Invest now - target 50% or more of your business in the cloud Cloud improves partner business models Cloud-oriented partners are the best performing partners First thing to note here when you see these results, is that the partners interviewed and surveyed for this are partners who are leading the industry. They’ve made investments, they’ve in some cases shifted their business models and in other cases blended the old and new masterfully. They are good business people and have a track record of success Another thing to note is that these partners still make up the minority of our partner ecosystem and as such are paving the way Additionally, these partners are winning big deals from incumbent partners, they are succeeding, and they are more positioned for the future than most partners out there These partners make 1.6X more gross profit vs. non-cloud oriented partners. Roughly around 20% of the partners were in this group. They gain 1.3X more revenue per employee. They experience 2.4X faster growth (different survey of over 500 MSFT partners of all business models) And coincidentally have higher new customer mix as they are winning in their white space. In the last year, how many of your customers were new and how many were pre-existing. The other group was really counting on their pre-existing customer base So was it just cloud that made the difference? Did they just start selling O365 and all of sudden experience phenomenal growth? No. What makes more sense is that the leading companies, the companies that were already successful took on cloud first and are doing quite well with it. Also what makes sense is that these partners are not delivering, in most cases, just pure cloud solutions. Much of the time, it is a mix and hybrid solution
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9/13/2018 © 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. © 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.
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MPN Cloud Competencies
Silver Gold Small & Midmarket Cloud Solutions Core MPN IURs +10 add’l Office 365 seats Office 365 Demo tenant Unlimited Signature Cloud Support Office 365 MOSP Direct Advisor Incentives (Core + Accelerator) Priority placement on Pinpoint marketplace Silver plus: Core MPN IURs + 25 add’l Office 365 seats Guaranteed field or tele management 150 seats of Office 365 sold and minimum of 15 customer adds in last 12 months 3 unique Office 365 Customer References 300 seats of Office 365 sold and minimum of 30 customer adds in last 12 months 5 unique Office 365 Customer References Two individuals must pass exam Benefits For CDP inquiries – Steps on How to become an Office 365 Cloud Deployment Partner: Become an Office 365 Advisor Qualify for Cloud Accelerate Attain a silver or gold competency in one of the following: Collaboration and Content, Communications, Devices & Deployment, Messaging, Project & Portfolio Management Complete an Office 365 deployment of more than 150 seats within the last 18 months. The benefit to you, the partner is: Partners who are an Office 365 Cloud Deployment Partner will benefit from additional support and services. These are: Office 365 Cloud Deployment Partners are the recommended go to partners to sell and deploy Office 365 Office 365 Cloud Deployment Partners are marketed externally to customers Pinpoint market place for all partners (both On-premises and Cloud) Pinpoint Office 365 Market Place, where Cloud Deployment Partners are specifically called out Links form the Office 365 Admin console to help Office 365 identify customers FastTrack Offer page showcasing CDP partners Office 365 Cloud Deployment Partners have access to exclusive deployment incentives e.g., Deployment Offer, EA Offer, Software Assurance Planning Services Office 365 Cloud Deployment Partners receive exclusive communication and management from WPG Monthly WPG bulletins containing Office 365 partner information Ad-hoc communications for special events, like Drumbeat and Ignite Welcome information, when a partner obtains CDP status
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MPN Cloud Competencies
Silver Gold Cloud Productivity Core MPN IURs +25 add’l Office 365 seats Office 365 Demo tenant Unlimited Signature Cloud Support Office 365 MOSP Direct & EA Deploy Advisor Incentives (Core + Accelerator) Participate in Office 365 Adoption Offers Priority placement on Pinpoint marketplace Silver, plus: Core MPN IURs +100 add’l Office 365 seats Guaranteed field or tele management 500 seats of Office 365 Exchange Online deployed in last 12 months 1 individual must pass 2 core Office 365 exams and 2 core workload exams 3 unique Office 365 Customer References 300 seats of Office 365 sold and minimum of 30 customer adds in last 12 months 5 unique Office 365 Customer References Two individuals must pass exam Benefits For CDP inquiries – Steps on How to become an Office 365 Cloud Deployment Partner: Become an Office 365 Advisor Qualify for Cloud Accelerate Attain a silver or gold competency in one of the following: Collaboration and Content, Communications, Devices & Deployment, Messaging, Project & Portfolio Management Complete an Office 365 deployment of more than 150 seats within the last 18 months. The benefit to you, the partner is: Partners who are an Office 365 Cloud Deployment Partner will benefit from additional support and services. These are: Office 365 Cloud Deployment Partners are the recommended go to partners to sell and deploy Office 365 Office 365 Cloud Deployment Partners are marketed externally to customers Pinpoint market place for all partners (both On-premises and Cloud) Pinpoint Office 365 Market Place, where Cloud Deployment Partners are specifically called out Links form the Office 365 Admin console to help Office 365 identify customers FastTrack Offer page showcasing CDP partners Office 365 Cloud Deployment Partners have access to exclusive deployment incentives e.g., Deployment Offer, EA Offer, Software Assurance Planning Services Office 365 Cloud Deployment Partners receive exclusive communication and management from WPG Monthly WPG bulletins containing Office 365 partner information Ad-hoc communications for special events, like Drumbeat and Ignite Welcome information, when a partner obtains CDP status
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