Ne Bytes Presentation August 2010
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Ne Bytes Presentation August 2010

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An introductory preso to generate awareness of Microsoft's SaaS offerings for business. MS blurb reads: ...

An introductory preso to generate awareness of Microsoft's SaaS offerings for business. MS blurb reads:

"Microsoft Business Productivity Online Standard Suite brings together online versions of Microsoft's messaging and collaboration solutions.

It includes Exchange Online, SharePoint Online, Office Live Meeting, and Office Communications Online.

These online services are designed to help meet your needs for robust security, 24/7 reliability, and user productivity.

They eliminate the time and effort you spend managing your e-mail and collaboration servers, while keeping you in control."

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  • Show of handsWho’s heard of this before
  • cloud computing is a truly structural shift akin to the advent of the PC and client/server in the mid-1980s or the unbundling of IBM mainframe software in the 1960s.
  • Within ten years, SaaS will be the dominant delivery mode for software.
  • And within 2–3 years, more people will access the Internet over mobile platforms (including the forthcoming “slate” and iPad) than over laptops and desktop PCs – what we call the ‘Martini Moment’ – reinforcing this change in service delivery.
  • Content will also be accessed directly via icon-driven ‘apps’ as much as through traditional browsers and search engines.”
  • tough economyMajor shift in the industry, accelerated with tough economyWhy this is key in tough eco time: Capex issuesWhat are we doing to help:Subscription model - CapexvsopexWhat savings we are delivering – 10-50% (TCO tool) – 300% for mid-market customersExample of Deskless
  • Regardless of category and regardless of starting point, everyone moving to this model…From a hardware/software perspective, Apple has embraced the benefits of combining compelling software experiences running across its hardware devices (PCs, iPods and iPhones) with the power of delivering media (music, television, films) from its services running in the cloud to create a very successful consumer experience. App Store delivers applications from the Web to the iPhone and many of these applications combine the power of locally running software with wireless and GPS capabilities. Clearly Adobe “gets it” although Adobe prefers to say “client and computing”. "It's a balance of the client and cloud together that makes for the most effective applications and the best development," said Adobe Chief Technology Officer Kevin Lynch.Enterprise software vendors such as SAP, IBM and Oracle realize that they need to augment their on-premise software solutions with offerings from the cloud both to better address their existing enterprise customers’ needs and to meet the needs of smaller businesses who may not have the expertise nor financial wherewithal to deploy and customize such expensive offerings. ISVs generally find the software-plus-services model appealling, not only because it more effectively addresses their customers’ needs but also because the ISV is able to identify value-added (or what Microsoft calls “attached services”) that complement the existing software but provide valuable benefits and additional revenue streams from customers. One significant beneficiary from the services model is the smaller business without the expertise or finances to run SAP’s mySAP Business Suite or Oracle’s enterprise applications themselves. As SAP and Oracle both move to provide services-based analogs for their enterprise software, SAP with Business ByDesign and Oracle with Siebel CRM OnDemand and others (see reference below), smaller businesses are able to capitalize on software that was previously unavailable to them.Google has, in the past year, released the Google Chrome browser and its Android mobile device platform. In combination with Gears, Chrome attempts to gain some of the benefits of software for web-based applications including the creation of application shortcuts on the desktop and offline caching. Android includes an SDK for the creation of software on Android devices.Lastly, even the software “adolescents” such as Salesforce.com, NetSuite and Zoho all acknowledge the importance of software as a complement to their services offerings in most effectively addressing their customers’ and users’ needs. Salesforce.com silently provides Outlook integration for its CRM offerings and as well as Offline and Mobile editions. Zoho CRM has an Outlook edition. The reality is that CRM users are sales people and sales people are familiar with and adept at using Outlook. It is not prudent to deny them their preferred experience.
  • To enable this vision, fundamental to our S+S approach is the idea of choice. We want to create a spectrum of capabilities that are tailored to different scenarios and customer needs. Our “Live” services are designed for individuals or small businesses which the end user is responsible for managing their service. For the IT Managed space, our business customers will have a choice to decide whether they want to experience our software capabilities as a “Online” service or continue to operate the software themselves to take advantage of the greatest set of controls and flexibility. We believe there are unique requirements in the IT managed space which are very different than the consumer space such as features, availability, compliance capabilities, SLA, etc. and also a different business model. Given the customer’s existing environment, we want to empower our IT Professional the ability to mix and match between online and on-premise software depending on the particular application, geography or end user roles. They can choose to move to Online as quickly as they like or stay with On-premise or a bit of both, it is entirely up to you.
  • Let’s now drill down on “Online” services. Online services is a set of enterprise class software delivered as subscription services hosted by Microsoft and sold through partners. Our goals is to create a service option for every one of our business software products. The initial set of services we are offering focus on the business productivity capabilities that includes Exchange Online, Office SharePoint Online, Office Live Meeting, Office Communications Online, Exchange Hosted Services and Microsoft Dynamics CRM Online. Exchange Hosted Services are attached services that include filtering, archiving, encryption and continuity. We plan to add many more Online services to this portfolio in the coming months.The Business Productivity Online Suite, shown here, includes Exchange Online, Office SharePoint Online, Office Communications Online, and Office Live Meeting. Office Communications Online is currently available as part of the dedicated offering and a multi-tenant offering of the service will be added in early 2009.
  • Our service momentum continues with introduction of next generation services for Exchange Online, SharePoint Online and Office Communications Online based on the “Wave 14” server technologies. We will also add other new online services over time such as CRM Online, Microsoft Learning Services and services we recently announced at the last PDC: Office Web Apps and our application development platform Azure.
  • One area that we are very conscious of is the importance of security and availability. We want to ensure that you feel confident that we are protecting your data and the service is highly available. Our service runs on a set of datacenters that are managed by a centralized organization within MS that are making major investments in datacenter spaces and capabilities. We deploy our service on the latest hardware and network equipments in a N+1 architecture to enable failover capabilities as well as saving your data in a separate geo-redundant location. We are regularly tested by third party CyberTrust to ensure our infrastructure is secure against attacks. We follow ITIL/MOF in our operational processes and we are in the process of getting our SAS-70 audit to ensure we have strictest level of control. Above all, we will provide 24x7 IT Pro support and our service availability is backed by a 99.9% uptime SLA with financial penalties if we fail to meet the SLA. Physical security is just the beginning. Since we’re providing an internet based service, we are protecting ourcustomer’s data in a variety of ways with multiple layers of protection. Microsoft is actually providing 9 layers of logical security for our customers and their service and data. <click> With Filtering Routers, Firewalls, Intrusion detection, dual factor authentication within center operations, application authentication, Virus Scanning. We also have a datacenter within a datacenter with separate networks and you authenticate to the data on a separate network that is not internet facing.--------------------------------------------Filtering Routers: these are implemented to protect against any traffic we do not see as well constructed. One of the great benefits of providing a focused service like BPOS is we actually set up the routers to protect against any form of malform data. We block at an aggregate at the edge. Firewalls are set up as deny all. Behind the firewalls we have an Intrusion Detection System. We have a very sophisticated correlation engine for any intrusion alert that we’re tracking 24 hours a day. Below the IDS, we have a level System Level Security. When you look, the service operations organization actually has broad based, dual factor authentication. This means each individual within a support and service operations team have either some sort of secure ID card or a RSH secure ID token that is coupled with their role. Each individual must have a user ID and password and must apply a pin with their secure ID token. Based on the role they have, we grant access per individuals to the service.  Application Authentication: when you get below the System Level Security, the customers actually have application level authentication. We have a very sophisticated mechanism by which we provide access to data. The structure of the service provides users access to only those capabilities they are designed to have. In the reseller model where a partner is actually providing the service to the customer, they have a level of application authentication that sits over top of that which the customers have. So we’re able to provide a very rich set of security protocols for our customers, as it relates to authentication to the different services.Microsoft, as most people know, has a good history as relates to security and trustworthy computing. Our services are actually designed to make sure that we apply those security methods not only to the software, but we also treat that software as a service. So when we do our threat walling and follow the Windows initiative, we’re thinking about our applications as if they are delivered through the Internet. We apply a significant level of counter measures, such as buffer overflows and SQL injection, we make sure that the applications we’re running are sandboxed so you can’t activate elevated levels of security or access a higher level of authentication when you’re actually doing work within our application. Virus Scanning is provided for multiple set of capabilities. We actually virus scan at all over our server levels, we have in place intrusion detection at the host and we’re scanning our content via Microsoft ForeFront.Then we have Separate Data Networks. When you look inside the data center, So what when we do our threat walling and follow the Windows initiative. These are implemented in a form that breaks it apart. For example, the data bases are on a separate sub net then from the actual content server or something that is an internet facing device.When you look, even though we are an internet facing service, very few devices have direct access to the internet. All of the servers are on some form of non-routable subnet space. Finally you are authenticated into the data. The data itself is never stored on the physical servers, we run separate data networks and the data is stored on dedicated storage devices. So when you look at the content, the content is actually being sent from dedicated storage devices, which allows us to provide significant levels of backup as well. Once we layered our data center practices in place, we’re actually deploying for our Business Productivity Online Suite in a number of locations. Because service is still in its infancy, we’ve only deployed in two locations in North America at this time. Ultimately, we will be replicating this model in other Microsoft data centers across the world.
  • Beyond just hosting our software, we have made key investments to create a set of unique values for online services. The key pillars are streamlined communication, simplified management and business class security and reliability. The text shown are the key value prop in each pillar category. By providing the latest business productivity capabilities delivered from a single service platform, end users can truly enjoy an integrated experience. End user will be able to access these services over the web, through their laptop/desktop or mobile devices. They can also securely access these services over the internet without VPN. End user will be able to have presence awareness of their colleagues and partners and be able to collaborate seamlessly between emails, documents and over conferencing and instant messaging. From the IT administration perspective, our service will be managed from a single administration portal. Administrators will have a single place to go to view operational statistics, provision new users and track any support issues. All services will be backed by a 99.9% SLA with financial guarantees and included in each service is a premium disaster recovery service that will allow fast switch over to a geographic separated datacenter in case of primary datacenter failure. We also perform regular scheduled independent audit to ensure our service is SAS 70 compliant and highly secured. Stable, dedicated infrastructure; hosted in Microsoft datacenters99.9% guaranteed service availability with financial penaltiesDynamic scale for additional capacityIncreased agility and user productivityEvergreen technology management – the latest Microsoft technologies and releases at no additional chargeSingle sign-on experience through Active Directory synchronizationSimple, predictable monthly fees and straightforward on-boarding costsRobust business continuity/disaster recoveryStrategic relationship with Microsoft provides innovation in use of Microsoft technology and extensive insight into Microsoft products
  • 12/6 is the old message. We did too well a job on it. Partners need to be thinking about migration, consulting, and managed services. POR Fees will not be compelling enough for a partner to invest. Need to focus on the other higher margin, services they can offer on top of BPOS. This is where they need to invest. Need 248 partners to activate (WW number). When a partner has sold 8 or more deals of 25 seats or greater triggers the scorecard. 2,632 customer adds are needed worldwide.
  • Microsoft Online Services provides Partners the opportunity to build long-term trusted relationships with their customers and be their trusted advisors for Online services. Partners will be able to see benefits in three core areas: expanded reach, revenue growth, and increased velocity. We conducted a survey of more than 700 partners and talked to 40 VARs/SIs on a 1-1 basis. We also met with more than 250 partners of various types during our Partner Advisory CouncilsPartners think 70% of the opportunity is incrementalOne the most interesting findings is that partners are telling that an estimated 70 percent of Microsoft Online Services sales will be to new customers that Partners would not otherwise have had access to. And sales to existing customers are expected to increase annually as well. This means new upgrades such as older version of Exchange, or (like Eddie Bauer) competitive upgrades like Notes, that they would not have been able without an Online delivery. It also means new scenarios such as selling the deskless SKU in specific verticals like retail, manufacturing or public sector Expansion to SMB - the ability to reach new customers who previously could not afford enterprise-class messaging and collaboration solutions Recurring revenues- Partner-added Managed Services that are built around Microsoft Online Services are expected to yield up to 50 percent recurring revenues. IncreaseCapacityPartner believe Online will reduce sales cycles but also delivery cycles as well as save on the cost of managing customer environments by taking advantage of the infrastructure we provide and the Online Administration Console. For instance I talked ABC Systemes in France and they are eager to use BPOS to enhance their SMB offering – now they feel they can scale to multiple customers with their existing sales force and delivery team.

Transcript

  • 1. NE Bytes presentation – MS bpos
    Justin Souter
    Souter Consulting Limited
    16/08/2010
    NE Bytes - (c) Souter Consulting Limited 2010
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  • 2. Warming up
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    NE Bytes - (c) Souter Consulting Limited 2010
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  • 3. Richard Holway et al - “To summarise:
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    Ivan Walsh
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    rk030
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    Porschista
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    Thomas Hawk
  • 7. Business Productivity with Microsoft Online Services
    November 2009
  • 8. Industry Transformation
    Cloud
    Web Services
    Web
    PC
    1990
    1995
    2000
    Today
    Software + Services
    Best of both worlds
    User in control
    Deployment choices for IT
    +
    Extending tools and platform to cloud
    Experience across multiple devices
    Best-in-class SLAs and IT governance
  • 9. Tough Economic Times
    Economy Will Accelerate Shift to Online
    Online Solution
    Customer Pain
    Access to Credit (CapEx)
    Subscription Model (OpEx)
    Budget Crunch
    Save 10-50%
    Staffing Constraints
    Economies Skill
  • 10. An Industry Trend
    Desktop
    Extending the client experience
    Enterprise
    Power of choice
    Consumer Web
    Client-side stickiness, persistence
    SaaS
    Increasing client functionality
  • 11. Power of Choice: Software + Services
    User Managed
    IT /Partner Managed
    “Live”
    “Online”
    On-premises
    Uniform Service
    Individuals/SOHO
    Ad-supported/Subscriptions
    Most Flexibility and Control
    Organizations
    Subscriptions/Licenses
    Cloud Based Services
    Enterprise software delivered as a service
    “Desk-less” offering for users with limited needs
    Rich, enterprise software providing the most capability
    Consumer or SOHO focused offering
    Provided by Microsoft
    Provided by Microsoft (or a partner)
    Run by Customer
    Phones
    PCs
    Browsers
  • 12. Microsoft Online Services
    Enterprise class software delivered via subscription services hosted by Microsoft and sold with partners
    Business Productivity Online Suite
  • 13. Momentum Continues
    Business Productivity
    “Wave 14”
    “Wave 14”
    Office Web Apps
    “Wave 14”
    Core Infrastructure
    Microsoft Learning Services
    System Center Online Services
    Application Platform
  • 14. Highly Secured Datacenters
    Business Class Reliability and Security
    Delivering highly secure, private, and reliable computing experiences based on sound business practices
    Filtering Routers
    Key Features
    Geo-redundant datacenters
    N+1 architecture
    9 layers data security
    CyberTrust certified
    Secure access via SSL
    ITIL/MOF operational practices
    24x7x365 support
    Backed by 99.9% uptime SLA
    Firewalls
    Intrusion Detection System
    System Level Security
    Application Authentication
    Application Level Counter-measures
    Virus Scanning
    Separate Data Networks
    Authentication to Data
  • 15. Key Investment Areas
    Business Productivity Online Suite
    Anywhere access—desktop, mobile, Web
    Seamless user experience across workloads
    Team collaboration and conferencing
    Real-time communication
    Streamlined
    Communication
    Always up-to-date technology
    Lower rollout and run rate cost
    Improved agility and resource utilization
    Active Directory® synchronization
    Simplified
    Management
    $
    Data hygiene supported by multi-layered antivirus and spam filtering
    Highly secure data access for users via HTTPS
    Geo-redundant data center architecture with Cyber-trust and SAS70 compliance
    Business-Class Security and Reliability
  • 16. Business Productivity Online Suite Partner Model
    18%year one
    12% Net-add
    6% Residual
    Sale
    Fees
    Partner
    Microsoft
    Customer
  • 17. Partner Revenue Opportunity
    Managed Services
    Recurrent $
    Managed Services
    Business Consulting & Customization
    Repeat $
    Business
    Consulting &
    Customization
    Revenue
    Migration & Integration
    One-Time $
    Migration & Integration
    Partner of Record Fees
    Annuity $
    POR Fees
    Timeline
  • 18. Partner OpportunityNew business, more customers, faster
    Advisor Fees: Sell and get Partner Fees
    New Services: SharePoint consulting, online migration & integration
    Annuity Revenues: 50% revenues to be recurring
    GrowRevenue
    New Customers: 70% of sales expected to be to new customers
    New Segments: Expand to SMB, retail, manufacturing or public sector
    New Scenarios: Deskless users, branch office, mobility
    Expand Reach
    Increase capacity: Increase sales and deployment capacity
    Scaleto multiple customers remotely. 40% savings
    Increase margins by increasing managed services attach rates
    Increase Velocity
  • 19. © 2008 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista 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.
  • 20. http://pwnwear.com/2009/11/06/keybinding-do-it/
    16/08/2010
    REEM & Social Media - (c) Souter Consulting Limited 2010
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  • 21. Souter Consulting Limited
    What can I do for you?
    Please contact me to see how we can work together!
    Justin Souter
    http://souterconsulting.eu
    Justin.souter@souterconsulting.eu
    07717 725504
    16/08/2010
    21
    REEM & Social Media - (c) Souter Consulting Limited 2010