My Cloud Presentation for Microsoft

I recently did a presentation for the Microsoft OEM Partner Action Committee discussing ways to help the OEM System Builder Channel go after new opportunities found with Microsoft Online Services.  Here it is:

Cloud Computing



Steve Ballmer recently said that Microsoft is “All In” when it comes to Cloud Computing. But will the channel call his bet or will they drop out of the game?


My name is Todd Swank and I’m the Vice Marketing of Nor-Tech out of Minnesota. We’re an OEM System Builder who has traditionally earned our revenues from creating hardware solutions and pre-loading them with Microsoft Operating Systems and Microsoft Applications like Office. As customer demands have shifted over the past few years to mobile solutions, we have found ourselves forced to becoming resellers for Multi-National Manufacturers like Lenovo, HP, and Toshiba. Current customer demands seem to be shifting to even more and more mobile devices. Customers are demanding that their data and applications be available to them anytime, anywhere, and from any device. They’re demanding Cloud Computing. So the question becomes, how does a company that has traditionally made its money by reselling hardware solutions make the transition into a company reselling cloud services?


Lucky for us as a Microsoft Partner, we already have a lot of great products to choose from:


i. Azure --- Development and deployment platform for cloud applications


ii. Intune --- a new solution that simplifies management and security of PCs


iii. Live Services --- free programs from Microsoft for photos, instant messaging, e mail, blogging, family safety, and more.


iv. Dynamics --- cloud customer relationship management


v. Office 2010 --- Launches in a couple weeks and will most likely be the channel’s first large scale push into selling Microsoft Online Services


vi. BPOS (Business Productivity Online Suite)


a. What's in it. (Sharepoint, Exchange, Office Live Communications, and Live Meeting)


b. This is where the majority of our focus has been so far because it appears to have the most developed Partner program.


c. Review what we've done


a. Multiple webinars.


b. Conference calls with Microsoft Online Services Reps.


c. signed up to be authorized resellers for BPOS and passed the assessment test, so I’m officially in the program.


d. Impressions:


1. How cool it is that it’s constantly being improved. Microsoft is continually adding enhanced features and functionality to improve customer experience. Seamless. Customers don’t have to do anything to enjoy these improvements.


2. Discuss partner program. ***Extremely impressed with the amount of training and resources Microsoft is already providing to partners for this relatively new program (marketing incentives, details business plans, multiple trainings, etc.)

Thanks to Microsoft for doing so much already to give the channel opportunities to start selling Cloud Services.

There’s plenty of reasons to get involved in selling Microsoft Online Services now:


• Microsoft has arguably the best channel program in the business. Microsoft Online Services are already off to a great start providing partners with a roadmap showing them how to take advantage of the program.


• Microsoft is generously offering partner commissions on Online Services sales into perpetuity as long as the Partner remains as the client’s POR (Partner of Record).


• Microsoft has great training programs and marketing incentives for Online Service partners. EG Giving Partners 250 seats of BPOS for testing and demonstration purposes.


There are already thousands of resellers signed up to sell Microsoft Online Services!


It’s a great program and a natural fit for resellers who already have solid practices selling enterprise agreements and have existing service businesses in products like Sharepoint and Exchange.

However, Microsoft’s system builder partners have traditionally earned their revenues selling their custom hardware solutions and will need a lot of guidance to create new revenue streams by offering Microsoft Online Services.


When I try to tell our salespeople ‘’that they need to start looking into selling Microsoft Online Services, I run into a lot of resistance:


1. Cloud Computing is going to put me out of business


2. You want me to sell what?


3. Show me the money!


There are challenges transitioning existing business models to the new models.


A Direct Revenues are going to be a challenge. $1.80 per user per month for the first year and $.60 per user per month is not going to provide a great Return on investment until partners sign up thousands of users.

B There doesn’t appear to be opportunities in Microsoft Online Services for Microsoft Partners who have built their business around selling to other Microsoft Partners and VARS.

C. Customer relationships seemingly will shift from the Partner directly to Microsoft in the long run since the customer will have the perception they’re buying direct from Microsoft and much of their service and support will be handed directly by Microsoft. This will create tension between Microsoft and its Partners.

Where’s there’s challenges, there’s always opportunities

A System builders can leverage their existing relationships with end customers and become their trusted advisor for Online Services.

B New revenue streams from services including data migration from the data center to the cloud, Sharepoint Consulting, and Exchange Consulting.

C 70% of Microsoft Online Services sales expected to be to new customers. Huge growth opportunity with SMB.

D Recurring Revenue Streams into perpetuity

Here’s some of the ideas we have to help the channel recognize the opportunities and be inspired to take advantage of them.

I think the most important thing we need to do is to explore opportunities to give system builders the incentive and ability to offer Microsoft Online Services at the time of the hardware sale.

Explore system builder exclusive promotions for BPOS


1. Desktop Icon on system builder PC that links end customer to free trial BPOS offer that pre-loads Partner of Record information for the system builder


2. Extended BPOS free trial offer for end customers buying PC’s from system builders


3. Customizable marketing flyer explaining BPOS free trial offer similar to what was done for Office 2007 and explanation how to name system builder as partner of record.


So Steve Ballmer says Microsoft is All In on Cloud Computing?


Well, the cards have been dealt, the pot is full of big money, and the players are watching each other and getting ready to make their move.


I’m excited for us to lay our cards on the table and see how we’re going to do.

Thank You!

Microsoft shares (officially) its future BPOS plans

At this week’s Worldwide Partner Conference, Microsoft officials shared with attendees their “official” roadmap for updating the company’s hosted Business Productivity Online (BPOS) suite. Company officials shared which features and capabilities that the company rolled out already as part of the on-premises server complements of the BPOS products will be added to the Microsoft-hosted versions of those offerings.

I’ve run a few slides on this blog over the past couple of months, dating back to November 2009, that included much of this same information. But it wasn’t until this week that Microsoft officials acknowledged these details.

I’ve heard that customers of the Dedicated (i.e., non-shared/non-multitenant) versions of Microsoft’s BPOS and its point-product parts — Exchange Online, SharePoint Online, Communications Online and Live Meeting — already have some of the 2010 feature updates. But those using the “Standard” (multitenant) versions do not.

Read Full Article Here:
http://www.zdnet.com/blog/microsoft/microsoft-shares-officially-its-future-bpos-plans/6857

Google Apps Poster Child Switches to Microsoft BPOS

Just a little more than a year after touting its move from Microsoft Exchange to Google Gmail, Serena Software has decided to make the switch back to Microsoft and dump its Google Apps support.

Unlike the University of California, Davis, which dumped Gmail over security and privacy concerns earlier this month, Serena's reason was much more old school and basic. In short, it all came down to cost. Microsoft came back to Serena with an offer the ALM (application lifecycle management) software company could not afford to refuse, sources said.

Indeed, sources close to the situation said Microsoft offered Serena a price point for its enterprise software that included on-premise software, Microsoft's new Business Productivity Online Service Suite (BPOS) and migration services. The deal was simply too good to pass up. Microsoft Business Productivity Online Standard Suite is a set of messaging and a collaboration solution hosted by Microsoft, and consists of Exchange Online, SharePoint Online, Office Live Meeting and Office Communications Online.

Read Full Article Here:
http://www.eweek.com/c/a/Cloud-Computing/Google-Apps-Poster-Child-Switches-to-Microsoft-BPOS-171445/

Microsoft Brings Desktop Management To The Cloud

Microsoft (NSDQ:MSFT) Monday rolled out a limited beta of Windows Intune, a new cloud desktop management service aimed specifically at midmarket firms that need to remotely manage and secure PCs in branch offices. 

Midmarket firms -- which Microsoft defines as having between 25 and 500 PCs -- don't often have large IT teams, and they usually scrape by with just one or two employees. In Microsoft's view, this makes them logical candidates for cloud services.

Microsoft says it's seeing a solid trend of midmarket customers migrating to cloud services, so the software giant is moving desktop management to the cloud as well.

"Windows Intune is a complete desktop infrastructure management solution-in-the-cloud that simplifies management and security of PCs, no matter where users are located," said Sandrine Skinner, a product marketing manager on the Windows Client team, in an interview.

Read Full Article Here:
http://www.crn.com/software/224400646;jsessionid=5GSVXRYL2DPPDQE1GHPSKH4ATMY32JVN?cid=nl_vi

Microsoft Targets Cloud Partners With BPOS Incentives

With cloud computing square in its sights, Microsoft (NSDQ:MSFT) Corp. at XChange Solution Provider this week in Los Angeles detailed a new lineup of cash and marketing incentives that the software giant said will help partners sell into cloud environments.

Fred Studer, general manager of Microsoft's Information Worker group, said the new incentives show Microsoft is serious about the cloud and it wants to fuel partner success. The new incentives come after CEO Steve Ballmer last week outlined Microsoft's overall strategy for cloud computing.

To help on-board partners, Microsoft has launched a cloud-focused partner Web site for partners building or extending cloud practices. Dubbed QuickStartOnlineServices.com, the site offers partners access to cloud assets such as marketing plans, marketing templates, call scripts, and other customizable marketing materials. It also offers tools such as an RFP template, business plan building tools, migration tools and tips on how to deliver in cloud environments.

Read Full Article Here:
http://www.crn.com/software/223300057;jsessionid=JR5MBZFACJZBLQE1GHPCKHWATMY32JVN?cid=nl_vi

ThinkGrid Cloud Channel Program Aims To Woo Microsoft BPOS Partners

U.K.-based ThinkGrid is looking to take the U.S. channel by storm and already has its sights set on what will surely be its largest competitor: Microsoft (NSDQ:MSFT).

"Some of the big vendors you associate with being channel-friendly are becoming channel-unfriendly," ThinkGrid CEO Rob Lovell said in an interview. Specifically, Lovell called out Microsoft and its BPOS SaaS application suite channel saying Microsoft BPOS VARs tend to receive thin margins.

ThinkGrid is looking to take on Microsoft and woo away its BPOS partners as it prepares to launch its first official channel program in the U.S. after 18 months in the UK.

Read Full Article Here:
http://www.crn.com/software/222700320?cid=nl_crn
 

Microsoft Online Services - Vision

Microsoft Online Services BPOS Video

Googe Apps Vs Microsoft BPOS

This is an interesting step by step comparison of Google's online services offering vs what Microsoft is currently providing...

http://blogs.technet.com/carpediem/archive/2009/12/03/google-apps-vs-bpos-you-decide-day-1-stage-1-the-facts.aspx

Will the BPOS Price Cuts Hurt Partners?

As Microsoft seeks to extend its platform to the cloud, the company continues to hit some turbulence.

Just as Microsoft was slated to launch its Windows Azure cloud services at last month's Professional Developers Conference in Los Angeles, Amazon.com Inc. swooped in and slashed the cost of its services by up to 15 percent. Amazon also added a relational database hosting service, a feature that makes the cloud more attractive for enterprise applications and one that Microsoft is readying as well.

Meanwhile, in another major blow to Redmond, the City of Los Angeles in late October chose Google Inc. to run its online e-mail service. It was a closely watched competition between Microsoft and Google for a city-wide government network.

In an apparent response that has some partners furious, Microsoft last month slashed the price of its Business Productivity Online Suite (BPOS) from $15 a month to $10 a month. Some partners are even accusing Microsoft of offering BPOS below cost. BPOS consists of hosted collaboration and communications software based on Microsoft Exchange Online, SharePoint Online, Office Communications Online and Office Live Meeting.

Read Full Article Here:
http://rcpmag.com/Articles/2009/12/01/Will-the-BPOS-Price-Cuts-Hurt-Partners.aspx

Microsoft Introduces Business Productivity Online Suite At Reduced Rate

Business owners and managers can now purchase a broad variety of Microsoft online services through Enpointe Technologies.

These services are geared toward helping businesses through increasing communications using practical methods such as instant messaging, video conferencing and secure e-mail. Small business owners and CEOs alike agree that quick, effective communication is essential in a world that’s going through increasing globalization.

Security is also a major factor for business owners, as phishing scams, spam and viruses seem to only get worse.

“We simply could not use a system like Gmail. There may be private information involved, and we needed a guarantee that the information would remain secure,” said Jan van Glabbeek, Head of IT for Ziekenhuis Amstelland. “It needs to stay within the domain of the hospital, and we can do that with the Microsoft Online Services solution.”

Read Full Article Here:
http://www.officialwire.com/main.php?action=posted_news&rid=35701

Microsoft BPOS and Windows Azure: A VAR Reacts