Partners Make More With Microsoft For every dollar Microsoft made in 2009, its The value of partner-to-partner activities partners made $8.70 For themselves.1 = 2009 $10.1 billion 2007 $6.8 billion The software and services subset made $4.43 In a study of the International Association of Microsoft Channel Partners and its members’ business activity, IDC found the total value of partner-to-partner activities rose from $6.8 billion in 2007 to $10.1 billion in 2009.1 44% 56% The compound annual growth rate in 22% this time was 22% 44% Of hardware sold 56% Of software sold (by value) ran on (by value) ran on Microsoft operating Microsoft operating systems systems3 Source: Partner Opportunity in the Microsoft Ecosystem - IDC white paper, commissioned by Microsoft Corp., March 2011
Partners Who Invest More, Perform Better Companies investing more had Higher-investing partners had 28% greater revenue per employee 68% larger deal sizes 28% 68%4 Source: Partner Opportunity in the Microsoft Ecosystem - IDC white paper, commissioned by Microsoft Corp., March 2011
Renew Your Microsoft Partner Network Membership Retain your robust benefits and resources exclusive to Microsoft Partner Network members Is my organization due to renew? 1. Sign in to the Microsoft Partner Portal with your Windows Live ID. 2. Click View Your Membership Account at the top of the page to see your membership renewal date. 3. If the drop-down message indicates that you have 90 days or fewer left in your membership, then it’s time for you to begin the membership renewal process. Yes, my organization is due to renew… Get started by following this step-by-step guide Please Note: The Program Administrator is the person authorized to complete your organization’s renewal.If the Program Administrator is not accurate, please contact the Regional Service Center to update yourinformation so you can renew your membership. 5
SMB Partner Engagement Framework STRATEGIC IMPERATIVES • Continue volume growth in core Reseller Shared Coverage Scale revenue Model with LAR • Increase cross-sell 13 & upsell across Partners MS stack • Drive more growth BDM (10) ~600 Unique Partners Champions Clubs from top partners CCC 1:35 ratio • Grow Cloud 286 350 partners cap. VCC, CCC partner capacity Partners • Increase annuity mix VCC PTM (10) • Drive Emerging & 372 1:35 Ratio Growth solutions Partners 350 partners cap. • Secure broadline VAR revenue dTPAM (45) Top VAR • Drive attach to the 2200 1:60 ratio Server Socket Partners 2700 Partner • Increase annuity Capacity mix • Increase frequency SBSC TPAM • Drive geo (3) coverage to recruit 699 Partners 1:250 ratio Disti/Programmatic and activate 750 Partner channel around Capacity VAR/Advisor Core, Growth and Cloud MOSPA Advisors 7914 Partners Disti Only Coverage Unmanaged VARs 8114 Partners 6
U.S. SMB Top VAR Program Take your business to the next level The U.S. Top VAR Program is designed to reward committed Microsoft Partners while helping to increase their revenue and profitability. Program Benefits Expert Guidance Assigned Tele-Partner Account Manager (T-PAM) support to expand your practice Greater Incentives Increased channel incentives with up to 25% on current rebates (Payout rates: 4%, 8% , 25% depending on solution) Marketing Development Funds (MDF) Marketing development funds to better promote your services* ($500 per Program Period) New Competencies Special subsidies to increase your Microsoft competencies ($150 in Exam Subsidy Funds) Program Eligibility Requirements** • 25+K SMB Open Revenue • 4+ Minimum Transaction Requirements • MPN Enrolled *Must have at least one competency to receive MDF benefit **Over 12 Month Eligibility Period as outlined in Program Guidelines, Terms and Conditionshttps://partner.microsoft.com/us/TopVAR 7
VAR Champions Club Reap the rewards of being a championThe VAR Champions Club recognizes and rewards US partners for their impact in the SMBmarket. It offers significant rebates, resources and support for members to take theirbusiness to the next level. Club Benefits There are 3 program tiers, with benefits increasing by tier • Microsoft Field Engagement • VAR Champions Club Rebate • Marketing Development Funds • Business Investment Funds • Practice Accelerators • Ready-to-Go Customer-to-Partner Leads “I think the SMB VAR • Technology Strategy Solutions Engagement Champions Club is one of • Other community-specific offerings the most progressive Club Eligibility Requirements Microsoft programs. The first • Tier 1 –$100+K in SMB Open non-recurring, 20+ rebate check we received License Agreements, 2+ MPN Competencies was awesome!” • Tier 2 ––$200+K in SMB Open non-recurring, 20+ License Agreements, 2+ MPN Competencies Bryan Kuntz, including 1 Target Competency Vice President of Operations, Intellicom • Tier 3 ––$400+K in SMB Open non-recurring, 20+ License Agreements, 2+ MPN Competencies including 1 Target Competency and 1 Gold Competency For more information, simply visit: https://partner.microsoft.com/US/varchamps8
FY12-H2 Channel Top VAR Rebate Payouts FY12-H2 Rebate Opportunity Matrix (Annuity Payout Rates on New Revenue*) VAR 3% 7% 20% (OV/OVC) Top-VAR 4% 9% 25% (OV/OVC) 6% 11% 30% VAR Champions Club (Open/OV/OVC) 1% (Open-L) Enroll for Rebates at: http://www.oneview.ms/VAR/* Rebate payout calculated on ERP, See Top VAR FY12-H2 Rebate Program Guidelines, Terms and Conditions for all Program Details. 9
SMB Cloud Champions ClubExpand your cloud service horizonsThe Cloud Champions Club gives US partners the support they need to growtheir cloud services business. It offers expert advice, resources and funds to helpyour cloud business soar. Club Benefits There are 3 program tiers, with benefits increasing by tier • Assigned Business Development Manager • Technical Solution Professional Engagement • Cloud Champs Practice Builder Toolkit • Business Investment Funds • Marketing Development Funds • Promotional Incentives “Membership in the Cloud • Enhanced Operations Support Champions Club is helping • Other community-specific offerings our business thrive… I can’t imagine building a successful cloud-based offering without Club Eligibility Requirements • Tier 1 –6+ active SMB customers and 150 being a member of the club.” seats in total & Cloud Essentials or Cloud Ken Klika, Accelerate Director of Networking • Tier 2 –16+ active SMB customers and 400 Services, BCG&Co seats in total & Cloud Accelerate • Tier 3 –40+ active SMB customers and 1000 seats in total & Cloud Accelerate For more information, simply visit: https://partner.microsoft.com/US/cloudchamps10
The Annuity OpportunityConsistent and Predictable Revenue Stream
SA Benefits: Comprehensive Benefits at Every Phase New Version Rights Deployment Planning Services: * Spread Payments* Desktop SharePoint Lync & Exchange SQL Server Public Cloud Private Cloud Extended Hotfix Support Developer Tools Windows 7 Enterprise MDOP – MS Desktop Optimization Pack * Training Vouchers * 24x7 Problem Resolution Support* E-Learning TechNet Subscription Through Software Assurance Home Use Program Cold Backup for Disaster Recovery * Only available with Open Value licensing programs
Why should you care? Be the Trusted Advisor• Sell Annuity and build customer loyalty o Avoid customer shopping each transaction, secure customer for 3 years o Annual payment and True-Up meetings open the door for sales conversations o Become an administrator on your customer’s volume license site• Services Revenue o Predictable and budgeted software costs via annuity frees up money for services o Always the current version – move to Plan and Deploy o Deployment Planning Services benefit o Under licensing opportunities – Software Asset Management (SAM) o Year 4 and beyond software cost reduction
Customer Objection:“Why should I buy Open Value? I don’t know when a new version will release and isn’t it cheaper for me to just buy Open ‘L’ licenses?”• Software Assurance can actually help you save money and reduce complexity• Renewal Cost in Years 4-6 is ~40% less than Years 1-3• Consider Open Value Subscription as lower cost alternative• Customer needs to consider all SA benefits and consider cost if bought separately
Tips for Positioning SA To Customers• Quote and lead with Open Value• Land the message of predictability for software planning & spend• Know Software Assurance benefits; align to customer pain points• Present 6-year analysis of OV vs. License Only + Re-Buy• Monetize benefits and compare to buying separately (training, consulting services, support)• Compare Software Assurance to competitors’ maintenance programs and point out that SA includes a more comprehensive range of benefits• Consider getting a License History Report from Microsoft
Customer Benefits of Open Value Licensing 1. Control of your Software Investment • New versions of licensed software included • Deploy software as needed 2. Simplified License Tracking • Single agreement for all licenses • Standardized desktops reduce license tracking • Ability to add licenses to same agreement during years 2&3 3. Better Cost Management • Predictable annual budget • Cost benefit to standardizing company wide • Reduced up-front costs • Maximize SA Benefits
Annuity Benefits for Partners1. Generates services opportunities (deployment, training, development)2. More customer budget available for services3. Creates a customer for life4. Opportunities for annual revenue stream5. Recognition for Microsoft reseller programs VAR CHAMPIONS CLUB and Top VAR Programs6. Larger payouts for many back end rebates & incentives
Selling the Microsoft StackIncrease your deal size
Office is highest per seat revenue generator for licensing Server software drags hardware, storage, services, etc… Office compliments server products - it’s the glue!
Selling the Microsoft StackQuoting/Selling Add This Why Upgrade?Microsoft Office 2010 Microsoft Exchange Server 2010 & CALs To take full advantage of Office 2010 features you need Exchange 2010 Microsoft SharePoint 2010 & CALs Optimize collaboration with integration with Infopath & document sharing & co-authoring Microsoft Windows 7 Purchasing with office provides the Best Productivity experience!Windows Server 2008 R2 Microsoft Office 2010 Professional Plus Use the Server OS with the most current application Microsoft System Center Essentials 2010 Virtualization management as well as physical server & desktop management. Remote Desktop Services (aka Terminal Services) Another way to provide desktop virtualization that scales better to the SMB customer. Microsoft Forefront Protection Suite Provides protection to server /desktop from viruses & malware.Microsoft SQL Server 2008 R2 Microsoft Office 2010 Professional Plus Take advantage of Business Intelligence features in SQL 2008 R2 you need Office 2010 (Excel). E.g. Power pivot, Slicers etc… Microsoft Windows Server 2008 R2 & CALs Take advantage of the ability to virtualization on your server. Upsell to SQL Premium.Exchange Server 2010 Microsoft Office 2010 Professional Plus If you don’t have Office Pro Plus you can’t take advantage of email archiving, mail tips, multi-exchange mail boxes etc. Microsoft Windows Server 2008 R2 & CALs Take advantage of the ability to virtualization on your server. Upsell to Exchange Premium.
Partner Resources / Next steps 1) Sign-up or Renew your Microsoft Partner Network membership! https://partner.microsoft.com/ 2) Connect with your preferred Microsoft authorized distributor: https://partner.microsoft.com/40014697 3) Sign-up for the VAR Rebate program: http://www.oneview.ms/VAR SELL THE MICROSOFT STACK & WATCH YOUR PROFITS GROW!!