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Roundtable: Office 365 Advisor to CSP Conversion
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ROUNDTABLE
Office 365 Advisor to CSP Conversion
Sean Oberholtzer
April 1, 2015
Note: The information herein describes products/services that may be in a pre-release stage.
Actual features and functionality may differ and are subject to change without notice
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What is Advisor? And What is CSP?
COMPARISON CHART: OFFICE 365 Open Advisor CSP
Monthly billing flexibility X X
Partner controlled billing and margins X X
Automated monthly billing within Cloud Marketplace X
Ability to true up / down monthly X
Simplified procurement and management within Cloud Marketplace X
Free technical support desk through Cloud Ignite X
Advanced reporting within Cloud Marketplace X
Available to bundle with SkyKick Migration Suite X
Available to bundle with Service Desk
(to provide customer support for VAR community)
X
Available value-add cloud service bundles from Cloud Marketplace X
Ability to increase upsell and attach opportunities X X
Use existing systems for sales motions X X
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Program Objective
Take advantage of the
benefits of the CSP program
Earn additional recurring margin over the
next 12-18 months
Convert existing O365 Advisor seats to
MS CSP
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Program Concept
How Does It Work?
Reseller does not renew
Advisor subscription to O365
Reseller purchases same O365 via Ingram Micro Cloud
Marketplace O365 with SkyKick migration
Ingram Micro performs migration services
Migration tool cost to be jointly funded by Ingram Micro and
the Reseller
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Reseller Benefits
More than double gross margin on O365 subscriptions
sold through CSP (4% Advisor vs. 9.1% CSP)
Increase ~2-4% Net Margin
Annual Renewal “License” shifts to Monthly “Auto
Renewal Subscription”
Take control back of your customer billing and support for
MS O365
Reclaim your business as trusted advisor including
support with your customers on ALL products and services
Ability to bundle and consolidate invoicing
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Case Study – A US Reseller
2,206 Total Seats
Renewing from April 2015
to March 2016 (12 months)
829 Seats of O365 E1 at
$8.00 per seat
1,355 Seats of O365 E3
at $20.00 per seat
22 Miscellaneous seats
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Case Study – Revenue and Margin Analysis
$-
$50,000
$100,000
$150,000
$200,000
$250,000
Year
1
Year
2
Year
3
Year
4
Year
5
CSP Gross
Margin
Advisor Gross
Margin
All data in the table is
cumulative each year
So, year 2 totals represent
the sum of years 1 and 2
Year ACV Revenue
Advisor
Gross Margin
CSP
Gross Margin
Per
Seat Delta
1 407,804 209,104 8,364 19,039 4.84
2 815,608 616,672 24,667 56,147 14.27
3 1,223,412 1,024,240 40,970 93,256 23.70
4 1,631,217 1,431,808 57,272 130,364 33.13
5 2,039,021 1,839,376 73,575 167,473 42.56
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Issues / Barriers Tenant-to-tenant migrations are
complex and require
automation and monitoring
End customers must have
minimal impact
Partners must be ready to
support recurring billing and
Level 1 customer support
Partners must engage and
manage customer expectations
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