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Business Builder for Cloud Services Partner Opportunities in the Public Sector • Partner serviced information technology (IT) and internal IT staff. • Stringent regulatory and privacy requirements. • Standardized core infrastructure services such as central PC management and firewall. • Basic and/or advanced business productivity services such as email, voice, and storage. • Horizontal and/or vertical applications. • A mobile workforce with laptops. • Windows Intune • Microsoft Exchange Online, Microsoft SharePoint Online, Microsoft Office Communications Online, and Microsoft Office Live Meeting • Microsoft Dynamics CRM Online • Microsoft Live@edu • Hosted versions of Microsoft Exchange Server, Microsoft SharePoint Server, and Microsoft Office Communications Server • Windows Azure, Microsoft SQL Azure, and Windows Azure platform AppFabric • Windows Server 2008 R2 with Hyper-V technology You will find guides that address other customer scenarios, such as small, medium, and enterprise business, at https://partner.microsoft.com/cloudservices This guide is primarily for partners that serve public sector customers of all sizes with: This guide includes business opportunities for the following Microsoft cloud services:

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Page 1: Business Builder for Cloud Servicesdigitalwpc.blob.core.windows.net/products/cloud/Business_Builder_ f… · Business Builder for Cloud Services Partner Opportunities in the Public

Business Builder for Cloud Services Partner Opportunities in the Public Sector

•Partnerservicedinformationtechnology(IT)andinternalITstaff.

•Stringentregulatoryandprivacyrequirements.

•StandardizedcoreinfrastructureservicessuchascentralPCmanagementandfirewall.

•Basicand/oradvancedbusinessproductivityservicessuchasemail,voice,andstorage.

•Horizontaland/orverticalapplications.•Amobileworkforcewithlaptops.

•WindowsIntune•MicrosoftExchangeOnline,MicrosoftSharePointOnline,MicrosoftOfficeCommunicationsOnline,andMicrosoftOfficeLiveMeeting

•MicrosoftDynamicsCRMOnline•MicrosoftLive@edu

•HostedversionsofMicrosoftExchangeServer,MicrosoftSharePointServer,andMicrosoftOfficeCommunicationsServer

•WindowsAzure,MicrosoftSQLAzure,andWindowsAzureplatformAppFabric

•WindowsServer2008R2withHyper-Vtechnology

Youwillfindguidesthataddressothercustomerscenarios,suchassmall,medium,andenterprisebusiness,athttps://partner.microsoft.com/cloudservices

This guide is primarily for partners that serve public sector customers of all sizes with:

This guide includes business opportunities for the following Microsoft cloud services:

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Partner Opportunities in the Public Sector

Public Sector 2https://partner.microsoft.com/cloudservices

Table of Contents

The Cloud Opportunity Executive Summary3

Capitalizing on the Cloud How Partners Can Capitalize on the CloudOpportunities by Partner Business Model

6

7

IT Requirements Public Sector IT Requirements4

Partner Opportunities Reselling to Public Sector CustomersServicing Public Sector CustomersDeveloping for Public Sector CustomersHosting for Public Sector Customers

8

9

10

11

Making the Transition to Cloud Services Understanding the Impact of Cloud Services Making the Transition to Selling Cloud ServicesPrepackaged Offerings and Add-On Services

12

13

15

Calls to Action Calls to Action by Partner TypeAdditional Resources

16

17

Opportunities in Other Customer SegmentsSmall Business | Medium Business | Enterprise | Public Sector

Opportunities in Other Customer SegmentsOpportunity Overview for ResellersOpportunity Overview for Systems IntegratorsOpportunity Overview for ISVsOpportunity Overview for Hosting Providers

18

19

20

21

22

Table of Contents

The Cloud Opportunity

IT Requirements Capitalizing on the Cloud

Partner Opportunities

Making the Transition to Cloud Services

Calls to Action Opportunities in Other Customer Segments

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Partner Opportunities in the Public Sector

Public Sector 3https://partner.microsoft.com/cloudservices

This guide is designed to provide partners with an overview of the cloud services opportunity in the public sector. It covers the following topics:

Executive Summary

In the next few years, demand for cloud services is projected to grow rapidly. By 2014, IDC expects the overall market for public IT cloud services to be worth over U.S.$55 billion, which is more than three times the 2009 estimated market worth of $16.5 billion.1 This IT transformation represents a huge market

Specific requirements and needs of different kinds of public sector

organizations, including data privacy and security concerns

Business models and cloud revenue opportunities for

partners that serve education, healthcare, government, and

public safety and national security (PS&NS) customers

Calls to action specific to partner models

opportunity for partners, but it also necessitates some changes in the way that you package, sell, resource, finance, and manage your business. This guide contains action plans as well as resources that will help you launch or enhance a cloud services practice.

Table of Contents

The Cloud Opportunity

IT Requirements Capitalizing on the Cloud

Partner Opportunities

Making the Transition to Cloud Services

Calls to Action Opportunities in Other Customer Segments

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Partner Opportunities in the Public Sector

Public Sector 4https://partner.microsoft.com/cloudservices

The public sector poses special challenges for the adoption of cloud computing.

Public Sector IT Requirements

Educators who can deliver rich, affordable services and tools cost-effectively will help their students realize their full potential, find better jobs, and enjoy greater opportunities in the future. Outlined below are some key cloud opportunities for partners in this rapidly evolving market.

Education

Microsoft knows that highly secured data storage and access control are crucial for government, healthcare, and education. We design cloud computing services to meet and exceed internationally recognized access control standards, but we

depend on partners to meet regional and local standards and regulations. Each segment of the public sector has its own requirements and offers its own opportunities.

• Build on Microsoft Live@edu. Live@edu combines the enterprise communication and collaboration power of Microsoft Exchange Online 2010 (called Microsoft Outlook Live for Live@Edu customers) with the services Windows Live Messenger for presence and Windows Live SkyDrive storage technology, with Microsoft Office Web Apps. Partners can take advantage of this free offering to provide additional functionality.

• Build education solutions on the Windows Azure platform. Education solutions are classic examples of solutions that fall into the “peak and trough” category. Windows Azure provides an elastic computing platform that can meet the needs of education customers and ensure that the solutions are being paid for only when needed. Solutions in this category include dynamic education IT, learning analytics, connected learning, and educational management.

• Offer Microsoft Online Services for staff, researchers, and faculty. Although Live@edu offers a free infrastructure for education, it does not offer the service-level agreement that some key education audiences may require. The Microsoft Online Services applications allow partners to resell and integrate while removing both cost and complexity for education customers.

“With Live@edu, all school districts in Kentucky have access to the same powerful Microsoft applications and Web 2.0 technologies. That means we can close the technology gap between rich and poor districts.”

-Dr. Terry Holliday, Kentucky Commissioner of Education

Table of Contents

The Cloud Opportunity

IT Requirements Capitalizing on the Cloud

Partner Opportunities

Making the Transition to Cloud Services

Calls to Action Opportunities in Other Customer Segments

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Partner Opportunities in the Public Sector

Public Sector 5https://partner.microsoft.com/cloudservices

Public Sector IT Requirements (Continued)

Because government requirements and priorities are diverse and often different from those of commercial customers, Microsoft has developed government cloud solutions, which are all designed to be sold and serviced by Microsoft partners. These include:

Public safety and national security (PS&NS) customers are looking for increased cost savings and simplification for their complex infrastructures. The move to the cloud offers national governments the opportunity to achieve these goals in both open and closed

Government

Healthcare

National Security

• Government public cloud for customers looking for a simple, economical solution for outsourcing some or all of their IT. It does not support deep customization and integration. For partners, this provides an opportunity to resell Microsoft Online Services, and to offer provisioning and migration services.

• Government private cloud – self-hosted for customers that currently host their applications, use a shared-services data center hosted by a related government entity, have strict data sovereignty requirements, or are mandated to operate their own IT services. This solution supports deep customization and integration, and appeals to governments that have more complex needs, which provides partners with significant add-on service opportunities.

• Government private cloud – partner-hosted for customers that have or are considering an existing IT outsourcing arrangement, particularly for email, messaging, and collaboration. This solution appeals to governments that have strict data sovereignty requirements; it supports deep customization and integration for governments with more complex needs.

The worldwide healthcare IT industry is consistently ranked as one of the highest growth industries over the next few years. Patient data privacy concerns, data sovereignty issues, and existing regulations may be seen as barriers to adoption, but can be addressed and even used as a differentiator for partners that specialize in addressing these challenges. Other opportunities include providing anywhere, anytime access with Microsoft Online Services, and

creating solutions that provide access to deskless healthcare workers. Partners are well-positioned to drive the adoption of cloud computing in health by taking advantage of Microsoft Online Services and the virtualization capabilities of the Windows Server operating system. Microsoft also provides an opportunity for healthcare partners to connect patients with health organizations via the online HealthVault health application platform.

networks. Microsoft is currently working with partners throughout our ecosystem to adopt the Windows Azure platform for their solutions, such as emergency responder dispatch systems, courts and justice records management systems, fusion intelligence centers, and geo-spatial mapping and visualization systems.

Across all markets there are also key upgrade opportunities for you to move your existing customers, as well as new customers, from earlier Windows and Microsoft Office versions to the most current versions, using cloud services such as Windows Intune or Microsoft Office Web Apps as the basis for the up-sell.

Table of Contents

The Cloud Opportunity

IT Requirements Capitalizing on the Cloud

Partner Opportunities

Making the Transition to Cloud Services

Calls to Action Opportunities in Other Customer Segments

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Partner Opportunities in the Public Sector

Public Sector 6https://partner.microsoft.com/cloudservices

How Partners Can Capitalize on the Cloud

A key determining factor for customers when they select a partner is whether the partner can provide services and support across the entire life cycle of projects. As a result, opportunities exist for partners through the sales process, from pre-sales activities to post-sales support, enhancements, and project extensions. By offering a comprehensive suite of services or

partnering with others to do so, partners can develop ongoing “trusted advisor” relationships, which are critical to long-term success. Through these relationships partners can develop a deeper understanding of their customers’ technology environments and solutions needs, leading to incremental cross-selling and up-selling opportunities.

Pre-Sale Services• Plan and needs assessment• Design• Data integration• Configuration• Develop extensible applications

Resale• Technology selection• Sizing• Pricing• Procurement• Sell standard applications

Post-SaleServices• Implementation plan• Sizing validation• Configuration and tuning• Training• Extend applications

The key to a successful cloud services practice is to develop additional services that add business value. You provide the services that expand the potential size of every deal and make the cloud work for your customers. These services include migration and integration support, cloud services expertise, training and adoption offerings, and ongoing support and maintenance.

Table of Contents

The Cloud Opportunity

IT Requirements Capitalizing on the Cloud

Partner Opportunities

Making the Transition to Cloud Services

Calls to Action Opportunities in Other Customer Segments

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Partner Opportunities in the Public Sector

Public Sector 7https://partner.microsoft.com/cloudservices

To take full advantage of the cloud opportunity, partners may want to consider expanding their roles into new service areas. For example, systems integrators that have traditionally focused on application development may offer deployment and migration services, and infrastructure-focused systems integrators may expand into developing repeatable intellectual property (IP) with Windows Azure.

Regardless of business model, there are opportunities specific to the area you focus your business on. For example, all partners

that register to resell Microsoft Online Services are eligible for commissions of 12 percent for new subscriptions and 6 percent for recurring subscriptions. The evolution and growth of cloud services will offer partners even more ways to expand their businesses and better serve their customers. The following table provides an overview of business opportunities, suggested investments by partners, and a high-level summary of how Microsoft supports its partners in the cloud.

Many Microsoft partners play multiple roles when serving their clients, bringing together sales, support, application development, and IT expertise.

Opportunities by Partner Business Model

Business Opportunities Partner Investment Microsoft Support

Sell

Solu

tions • Recurring revenue

• Packaged solutions

• Expanded services

• New markets and customer segments

• Marketing funds

• Cloud skills development

• Revised compensation models

• Hands-on experience

• Marketing air cover

• Internal user rights (IUR)

• Pre-sales and deployment support

• Pre-sales training

Build

Solu

tions

• Repeatable IP• Faster deployment• Migrate solutions to the cloud• Scale users• Faster, less costly testing• Extended and customized cloud offerings

• Shift investments from technical infrastructure to marketing/sales skills

• Rethink marketing mix

• Grow channel by selling through online application marketplaces

• Market development

• Marketing tools

• Pre-sales and deployment support

• Pre-sales training

Hos

tSo

lutio

ns • Extended product offerings

• Broader marketplace

• Increased wallet share

• Virtualization technologies

• Consolidated technology platforms

• Additional sales skills

• Marketing tools

• Pre-sales support

• Pre-sales training

Following is a more detailed list of opportunities in the public sector by partner business model. For an overview of opportunities available to partners serving other customer segments, please see the Opportunities in Other Customer Segments section at the end of this document.

Table of Contents

The Cloud Opportunity

IT Requirements Capitalizing on the Cloud

Partner Opportunities

Making the Transition to Cloud Services

Calls to Action Opportunities in Other Customer Segments

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Partner Opportunities in the Public Sector

Public Sector 8https://partner.microsoft.com/cloudservices

“Our partners at ITSP…suggested the Microsoft Exchange Online Deskless Worker solution from Microsoft Online Services. It was clear that would enable us to achieve compliance with the new regulations at a much more affordable cost.”

-Jan van Glabbeek, Head of IT, Ziekenhuis Amstelland

Reselling to Public Sector Customers

Reach New Markets: Attach Services to Enable New ScenariosManaged services packages with onsite and remote support.

Mobility solutions based on Office Communications Online.

Deskless healthcare worker solutions based on Microsoft Online Deskless Worker Services.

Field operations solutions based on SharePoint Online and Microsoft Dynamics CRM Online.

Create LOB solutions such as supply chain management solutions based on Windows Azure.

Core IO BPIO LOB

Expand Services: Up-sell and Cross-sell Use Windows Intune as another path to drive Windows 7 upgrades.

Up-sell Microsoft Online Services to schools and universities that have deployed Live@edu.

Up-sell peripheral devices with SharePoint Online and Microsoft Office Communications Online.

Use the Microsoft Learning Suite to up-sell Microsoft Office 2010 and Office Web Apps.

Upgrade earlier versions of Microsoft Exchange Server and Lotus Notes deployments to Exchange Online.

Target Microsoft SharePoint Server and Exchange Server on-premises deployments to sell Microsoft Online Services.

Cross-sell line-of-business (LOB) applications such as business intelligence solutions built on Windows Azure.

Core IO BPIO LOB

Sell Windows Server 2008 R2 with Hyper-V and Microsoft System Center for government private cloud scenarios.

Increase penetration of enterprise accounts by renewing Enterprise Agreements with Microsoft Online Services.

Create and sell training and support packages.

Sell subscriptions to learning management system (LMS) applications built on Windows Azure.

Sell customer relationship management (CRM) applications built on Microsoft Dynamics CRM Online via subscription and online services for Microsoft Dynamics ERP via subscription.

Core IO BPIO LOBIncrease Revenues: Generate Recurring Revenue Streams

Sell add-on PC management packages with Windows Intune such as remote security monitoring services.

Sell value-added solutions to Microsoft Online Services such as Active Directory management.

Up-sell packaged solutions to existing managed services contracts.

Sell help-desk support, including end-user support for Microsoft Online Services.

Offer value-added solutions on top of Microsoft Online Services such as SharePoint Online document management monitoring.

Sell value-added solutions around applications such as learning analytics solutions built on Windows Azure.

Core IO BPIO LOBPackaged Solutions: Create Value-Added Solutions

Table of Contents

The Cloud Opportunity

IT Requirements Capitalizing on the Cloud

Partner Opportunities

Making the Transition to Cloud Services

Calls to Action Opportunities in Other Customer Segments

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Partner Opportunities in the Public Sector

Public Sector 9https://partner.microsoft.com/cloudservices

“Over 2009, about 5% of all revenues came from cloud services. We expect this to grow to 15 to 20% of our total revenue.”

-Danny Burlage, Chief Technology Officer, Wortell

Servicing Public Sector Customers

Rationalize identity across online services and on-premises applications for educational institutions.

Offer implementation support such as admin, user account creation, and application testing.

Provide provision and migration services for government public cloud solutions.

Migrate on-premises data to cloud applications such as Exchange Online, SharePoint Online, and Microsoft Dynamics CRM Online.

Migrate applications from on-premises deployments of Exchange Server, SharePoint Server, and Microsoft Office Communica-tions Server to Microsoft Online Services.

Integrate Microsoft Online Services with Live@edu services.

Extend and augment Microsoft Dynamics ERP applications with Dynamics ERP Online Services.

Connect/integrate on-premises applications to cloud-based applications using Windows Azure platform AppFabric.

Provide integration services for applications built on the HealthVault application platform.

Core IO BPIO LOBMigrate and Integrate Solutions to the Cloud

Technology assessments and architecture planning for hybrid on-premises/cloud-based environments.

Network operations center planning with System Center for cloud-based environments.

Security, control, and compliance policy, and vulnerability assessments.

Planning and management of compliance issues around data privacy regulations.

Customized partner-hosted private cloud-based email, messaging, and collaboration services to ensure compliance with data sovereignty requirements.

Deployment of custom workflow automation applications based on SharePoint Online.

Offer business intelligence solutions with extensions to social media applications.

Deployment and management of LOB applications such as financial reporting solutions built on the Windows Azure platform.

Core IO BPIO LOBExtend and Customize Cloud Offerings

Training plans for internal IT support of hybrid on-premises/cloud-based environments.

User adoption and training for new cloud-based solutions for mobile workers, deskless workers, and branch/field solutions.

“Train the trainer” for Windows Intune and Microsoft Online Services.

Help-desk support, including end-user support, for Microsoft Online Services.

Intrusion protection, log management, and integrated performance and security monitoring based on System Center.

Data protection and recovery with on-demand performance via replicated data centers.

Desktop optimization, desktop management, and remote management with Windows Intune.

Enhanced packaged managed services contracts with Microsoft Dynamics CRM Online, online services for Microsoft Dynamics ERP, mobility, and branch office solutions.

Extended managed services contracts with cloud-based LOB solutions such as HR applications.

Core IO BPIO LOBPackaged Solutions: Managed Services, Support and Training

Table of Contents

The Cloud Opportunity

IT Requirements Capitalizing on the Cloud

Partner Opportunities

Making the Transition to Cloud Services

Calls to Action Opportunities in Other Customer Segments

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Partner Opportunities in the Public Sector

Public Sector 10https://partner.microsoft.com/cloudservices

“With Windows Azure, we don’t have to worry about managing a costly infrastructure and can focus on delivering new services that positively impact citizens and our organization.”

- James Osteen, Assistant Director of Information Technology, City of Miami

Developing for Public Sector Customers Cloud-based versions of on-premises applications.

Enhanced storage for on-premises applications using Blob Storage in Windows Azure.

Customized interfaces, tools, and add-on functionality such as alerts for Microsoft Online Services.

Customized Office Communications Online applications with enhanced security, multiple-role access.

Collaboration and workflow solutions such as SharePoint calendaring applications.

Courts and justice records management systems built on top of SharePoint Online.

On-premises applications extended with social media using Windows Azure platform AppFabric.

Solutions based on the HealthVault application platform.

Learning analytics and education management solutions on Windows Azure.

Core IO BPIO LOBExtend and Customize Cloud Offerings

Network monitoring and tracking tools.

Migration tools for MySQL or SQL-language applications to Microsoft SQL Azure.

Migration tools for Lotus Notes to Exchange Online.

Enhanced applications with social media, additional storage, more computational power.

Core IO BPIO LOBRapid Development and Deployment

Cloud-based limited time trial offers that support marketing campaigns.

Scalable applications designed for tiered pricing based on usage thresholds.

Cloud-based supply chain applications that extend across borders and time zones.

Business intelligence applications that extend solutions into the cloud from on-premises applications such as SharePoint Server-based solutions.

Core IO BPIO LOBNew Applications and Solutions

Standardized multitenant SaaS applications for hosting providers on the Windows Azure platform.

E-commerce packages for online sales using Windows Azure platform AppFabric.

Software as a Service (SaaS) off-the-shelf applications with standardized pricing built on Windows Azure.

Core IO BPIO LOBRepeatable IP

Table of Contents

The Cloud Opportunity

IT Requirements Capitalizing on the Cloud

Partner Opportunities

Making the Transition to Cloud Services

Calls to Action Opportunities in Other Customer Segments

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Partner Opportunities in the Public Sector

Public Sector 11https://partner.microsoft.com/cloudservices

“We are offering a rich and robust email solution that, were it hosted internally, would cost us at least $200,000 more per year.”

-Tim Ferguson, Chief Information Officer, Northern Kentucky University

Hosting for Public Sector Customers

Host versions of messaging and collaboration applications for governmental applications.

Host versions of learning gateways solutions combined with Live@edu.

Deliver highly scalable platform-as-a-service offerings for burstable capacity and backup services

Host versions of LOB applications built on Windows Azure.

Host versions of vertical applications for specific governmental agencies such as justice departments.

Core IO BPIO LOBIncrease Wallet Share: Host Cloud Applications

Create virtual data centers and deliver a seamless IT infrastructure across multiple geographies using Windows Server 2008 R2, Microsoft SQL Server 2008 R2, and System Center.

Offer “community” cloud hosting for pooling shared services among related agencies and jurisdictions.

Sell hosted communication and collaboration services using Exchange Online, SharePoint Online, and Office Communications Online.

Core IO BPIO LOBBroaden the Marketplace

Offer shared and dedicated hosted services to technical decision-makers.

Create a “cloud in a rack” all-in-one hardware and software solution.

Offer “burstable” server capacity and backup services with SQL Azure on-demand provisioning.

Add managed services on top of a private cloud offering.

Provide a development environment and tools with the Windows Azure platform.

Provision on demand with the high availability and elastic scale of SQL Azure.

Core IO BPIO LOBExtend Product Offering: Add-On Services

Table of Contents

The Cloud Opportunity

IT Requirements Capitalizing on the Cloud

Partner Opportunities

Making the Transition to Cloud Services

Calls to Action Opportunities in Other Customer Segments

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Partner Opportunities in the Public Sector

Public Sector 12https://partner.microsoft.com/cloudservices

Understanding the Impact of Cloud Services

Compensation Partners should evaluate their compensation plans and consider making changes to align them with cloud services. Some of the benefits of selling cloud services may include greater sales velocity, shorter sales cycles, additional services opportunities, and multiple-year annuity commissions. Challenges may include lower commissions for the initial transaction, and potential differences in the timing of compensation payments.

Cash flow As cloud services shift payments from one-time, up-front lump sums to recurring revenue streams, cash flows will change. Establishing a financial plan based on your cloud services strategy of choice is a foundational element of a cloud services business.

Scalable sales and pricing

Instead of focusing on customized consulting and resource-intensive sales processes, partners should consider offering standard, repeatable solutions that are sold via telesales and other methods that offer broad reach at low cost. Similarly, a rate-card approach enables greater scalability than custom pricing.

New skills for value-added services

The key to a successful cloud services practice is to provide services that add business value. If you have not established a value-added services practice, it will be important to identify and build the skills and capabilities necessary for providing cloud services. Partners that already offer value-added services can make use of and augment existing skills to build a cloud services business.

Delivery mechanisms There are a number of ways that partners can deliver cloud services. For example, you can offer standard packages of services (“managed services”) around Microsoft cloud solutions to keep your overhead cost low while building recurring revenue streams. Another way to increase revenue is through vertical integration, by offering additional value-added services such as outsourced solutions, where you manage cloud-based IT infrastructure on behalf of customers. Partners can also offer services that span delivery mechanisms—for example, partners can offer managed services as an add-on to outsourced solutions.

The cloud services transformation represents a major opportunity for partners; however, you must also rethink the way that you package, sell, resource, finance, and manage your business. Successfully adding cloud services to your portfolio of offerings requires careful planning, combined with your experience and knowledge about your customers and their needs. The following provides an overview of key considerations for partners developing a cloud services business.

Table of Contents

The Cloud Opportunity

IT Requirements Capitalizing on the Cloud

Partner Opportunities

Making the Transition to Cloud Services

Calls to Action Opportunities in Other Customer Segments

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Partner Opportunities in the Public Sector

Public Sector 13https://partner.microsoft.com/cloudservices

Making the Transition to Selling Cloud Services

This section offers a few recommendations and Microsoft resources to help you launch a cloud services practice.

Define your cloud services strategy

Prepare your organization

• Identify the Microsoft cloud services that are relevant to your business.• Define your cloud services strategy around your core competencies; explore shifting and expanding your

competencies to meet customer needs around cloud services.• Define solutions offerings and be able to articulate their value to both IT and business decision-makers.• Identify efficient ways to deliver your solutions such as managed services and outsourcing.

• Based on the cloud services strategy you choose, evaluate the available skill set and identify gaps to ensure that you have the appropriate resources to successfully execute your cloud services initiatives.

• Evaluate options for shifting employees to cloud services roles such as marketing and technical sales specialist positions. Go to the Microsoft Learning Plan Tool to identify and enroll in sales and technical training.

Table of Contents

The Cloud Opportunity

IT Requirements Capitalizing on the Cloud

Partner Opportunities

Making the Transition to Cloud Services

Calls to Action Opportunities in Other Customer Segments

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Partner Opportunities in the Public Sector

Public Sector 14https://partner.microsoft.com/cloudservices

Making the Transition to Selling Cloud Services(Continued)

Build a foundation • Establish a dedicated cloud services practice with strong leadership.• Define solution offerings and be able to articulate their value to IT and business decision-makers.• Learn about how to activate customers and more with the Microsoft Online Subscription Program Guide

for Partners.• Develop a stable, repeatable, branded methodology for customer on-boarding and for building loyalty.• Create cloud contracts and service-level agreements (SLAs).• Assess your sales compensation plan.• Plan for long-term customer relationships with strong account management.

Evaluate financial models

• Use the Partner Profitability Modeler Tool to customize financial models and determine your return on investment (ROI) for Microsoft Online Services and Microsoft Dynamics CRM Online.

• Use the Windows Azure Platform TCO Analysis tool to evaluate platform configurations and quantify the costs of platform and on-premises application delivery.

Get started • Subscribe to the Microsoft Cloud Essentials Pack which includes resources to help partners learn about, develop and sell cloud solutions.

• Find out more about Microsoft Cloud Accelerate, an exclusive program for partners that have a proven track record of delivering Microsoft cloud solutions.

• Use the Microsoft Platform Ready program and visit the Windows Azure Partner Hub.• Deploy the no-cost version of Microsoft Online Services for internal use that is offered to all Microsoft

Online Services partners.

Execute marketing and sales

• Invest in efficient marketing and demand generation by using tools such as search engine optimization (SEO) and telesales to minimize your customer acquisition cost.

• Provide your sales and technical staff with ongoing training.• Establish a customer trial management plan to drive a high conversion trial-to-paid conversion rate.• Promote your solutions, applications, and services on Microsoft Pinpoint.

Table of Contents

The Cloud Opportunity

IT Requirements Capitalizing on the Cloud

Partner Opportunities

Making the Transition to Cloud Services

Calls to Action Opportunities in Other Customer Segments

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Partner Opportunities in the Public Sector

Public Sector 15https://partner.microsoft.com/cloudservices

Basic Package

Sample Rate Card for Partner Cloud Services

Design, Consulting, Provisioning/Development

(Pure Cloud only)(per seat/month)

$28.00

$22.00

$16.00

Advanced PackageDesign, Consulting,

Provisioning/Development(Pure Cloud & Hybrid) integration

(per seat/month)

$58.00

$48.00

$38.00

Premium PackageComprehensive Managed Services

Solution (Including Desktop Management and Security)

(per seat/month)

$85.00

$74.00

$63.00

Up to 500

500-100

1000+

Seats

Prepackaged Offerings and Add-On Services

The following table is an example of a rate card for standard deployment and migration services, such as directory preparation, messaging coexistence and messaging data migration (email, calendar, contacts). There are opportunities to earn revenue from additional services, such as data migration to Microsoft SharePoint Online, custom development, client software deployment and change management.

The cloud offers the opportunity to develop repeatable sales with a rate card approach.

$2k$2k$2k

Partner of Record Fees*

Revenue Opportunities

BPOS~$16,000

Windows Intune~$68,000

Dynamic CRM Online~$29,000 (20 seats)

$5k

$18k

$20k

Deployment & Migration Revenue

$6k

$19k

Business Consuting & Services

(e.g., Configuring/managing BitLocker, Direct Access etc.)

$7k

$28k

$3k

Managed Services

As shown in the chart below, these include business and consulting services, managed services, and Partner of Record (POR) fees for reselling Microsoft cloud services. For example, a 100-seat customer deal can yield over U.S.$100,000 in the first year alone.

*POR fees do not apply to all scenarios

Beyond deployment services, every deal offers opportunities for incremental revenue.

Table of Contents

The Cloud Opportunity

IT Requirements Capitalizing on the Cloud

Partner Opportunities

Making the Transition to Cloud Services

Calls to Action Opportunities in Other Customer Segments

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Partner Opportunities in the Public Sector

Public Sector 16https://partner.microsoft.com/cloudservices

Calls to Action by Partner Type

The table below summarizes key actions that partners can take to build a successful cloud services business.

• Resell Microsoft Online Services, Microsoft Dynamics CRM Online, and Windows Intune.

• Leverage up-sell and cross-sell opportunities (sell Windows Intune with Windows 7; resell Microsoft Online Services with Microsoft Office 2010 and Microsoft Office Web Apps).

• Package Windows Intune, Microsoft Online Services, and Microsoft Office in standard quantities as packaged solutions for repeatable sales.

• Increase focus on customers with shorter sales cycles.

• Build and expand telesales and online marketing efforts with low customer acquisition cost.

• Integrate annuity revenue streams into planning and sales compensation.

Reseller

• Build a Windows Azure application development practice.

• Create cloud versions of existing applications.

• Explore the creation of an applications marketplace and consider developing resale channels such as hosting providers.

• Continually evaluate new features by testing with sample customers.

• Look at new potential geographies where you might offer your applications.

Independent Software Vendor

• Offer a wider range of hosted solutions such as Exchange Online, SharePoint Online, and Office Communications Online.

• Move further up the value chain to offer solutions such as data center consolidation and disaster recovery.

• Market to developers looking for an on-demand development environment.

Hosting Provider

• Create a cloud migration offering for the solutions you currently offer.

• Develop a rate card with by-person and by-seat engagements for deployment to Microsoft Online Services.

• Build a base of employees with expertise in cloud development, identity, and security.

• Align resources to support managed services contracts based on Windows Intune.

• Provide Core IO and BPIO offerings built on Microsoft Online Services.

• Migrate existing applications to Windows Azure and SQL Azure.

• Train staff not to distinguish between on-premises and cloud solutions, but rather to advise customers on the best solutions for their needs.

Systems Integrator

Table of Contents

The Cloud Opportunity

IT Requirements Capitalizing on the Cloud

Partner Opportunities

Making the Transition to Cloud Services

Calls to Action Opportunities in Other Customer Segments

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Partner Opportunities in the Public Sector

Public Sector 17https://partner.microsoft.com/cloudservices

Additional Resources

The following resources provide more information about Microsoft cloud solutions and Microsoft partner support.• The MPN cloud landing page provides access to cloud services

training and readiness resources.• The Public Sector on MPN page provides access to resources

for partners that serve education, government, and health customers.

• Microsoft Online Services is a family of services, also available as standalone software, for communication and collaboration. Microsoft Exchange Online delivers email with protection, plus calendar and contacts. Microsoft SharePoint Online creates a highly secure, central location for collaboration, content, and workflow. Microsoft Office Communications Online provides real-time, person-to-person communications through text, voice, and video. Microsoft Office Live Meeting delivers hosted web conferencing.

• Windows Intune delivers cloud-based PC management and security capabilities.

• Microsoft Dynamics CRM Online streamlines customer relationship management, and delivers results through the browser.

• Microsoft Office Web Apps allows access to documents from virtually anywhere.

• Microsoft Live@edu provides students, staff, faculty, and alumni with long-term, primary email addresses and other applications that they can use to collaborate and communicate online—all at no cost to educational institutions.

• The Windows Azure platform supports applications, data, and infrastructure in the cloud, giving institutions the flexibility to run applications—or just store code or data—in the cloud, on premises, or with a combination of both. The platform also includes the Microsoft SQL Azure technology platform, a cloud-based relational database service built on Microsoft SQL Server that offers highly available, scalable, multitenant database services. Software developers can use Windows Azure Tools for Microsoft Visual Studio to create, configure, build, debug, and run web applications and services on Windows Azure. Windows Azure platform AppFabric, formerly known as Microsoft .NET Services, makes it simpler for developers to connect cloud ser-vices and on-premises applications.

• The Public Sector Solution Marketplace connects public-sector customers with Microsoft Certified Partners who deliver industry-relevant products and solutions worldwide.

Table of Contents

The Cloud Opportunity

IT Requirements Capitalizing on the Cloud

Partner Opportunities

Making the Transition to Cloud Services

Calls to Action Opportunities in Other Customer Segments

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Partner Opportunities in the Public Sector

Public Sector 18https://partner.microsoft.com/cloudservices

The following tables provide a high-level overview of the opportunities available by partner type beyond the public-sector market segment. Opportunities differ depending on the markets you serve, but there is potential to increase revenues, grow market share, and develop competitive offerings across each market segment.

Opportunities in Other Customer Segments

Table of Contents

The Cloud Opportunity

IT Requirements Capitalizing on the Cloud

Partner Opportunities

Making the Transition to Cloud Services

Calls to Action Opportunities in Other Customer Segments

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Partner Opportunities in the Public Sector

Public Sector 19https://partner.microsoft.com/cloudservices

Opportunity Overview for Resellers

• Resell Microsoft Online Services and Windows Intune and earn a one-time commission of 12% on all net new seats, as well as 6% on recurring subscriptions.

• Up-sell and cross-sell prepackaged solutions such as Microsoft Online Services sales support. • Target POP3 migrations to Microsoft Online Services.

Small Business (Partner-serviced IT)

• Resell Microsoft Online Services and Windows Intune and earn a one-time commission of 12% on all net new seats, as well as 6% on recurring subscriptions.• Add or attach Windows Intune to Core IO managed services offerings and Windows 7 upgrades.• Offer value-added BPIO solutions on top of Microsoft Online Services such as SharePoint Online document management monitoring.

• Target SharePoint Server and Exchange Server on-premises deployments to Microsoft Online Services.• Enable new scenarios such as deskless workers with Microsoft Online Deskless Worker Services.• Sell subscriptions to cloud-based LOB applications built with Windows Azure.

Medium Business (Small internal IT staff – some IT services out-sourced)

• Sell Windows Server 2008 R2 with Hyper-V and System Center Virtual Machine Manager for private cloud scenarios.• Resell Microsoft Online Services and Windows Intune and earn a one-time commission of 12% on all net new seats, as well as 6% on recurring subscriptions.• Target Lotus Notes migrations and competing collaboration solutions with Microsoft Online Services.

• Drive Enterprise Agreement attach to Microsoft Online Services.• Offer branch office solutions with Microsoft Online Services.• Attach Microsoft Online Services to Office 2010 and Microsoft Dynamics CRM Online upgrades.• Sell customized CRM solutions built on Microsoft Dynamics CRM Online.

Enterprise (Sizable IT staff, including internal software development)

Up-sell, cross-sell, upgrade, and attach opportunities

Public Sector (Education, government, healthcare, public safety, and national security)

• Resell Microsoft Online Services and Windows Intune to government entities.• Use Microsoft Learning Suite to up-sell Office 2010 and Office Web Apps.• Pitch cost-saving, green IT solutions based on Microsoft cloud services.

• Up-sell Microsoft Online Services to schools and universities that have deployed Live@edu.• Offer solutions for deskless healthcare workers with Microsoft Online Deskless Worker Services.

Table of Contents

The Cloud Opportunity

IT Requirements Capitalizing on the Cloud

Partner Opportunities

Making the Transition to Cloud Services

Calls to Action Opportunities in Other Customer Segments

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Partner Opportunities in the Public Sector

Public Sector 20https://partner.microsoft.com/cloudservices

Opportunity Overview for Systems Integrators

Consulting, migration, integration, implementation, customization, and support opportunities

• Create cloud-based managed services such as remote management with Windows Intune. • Promote standardized cloud packages such as Exchange Online user provisioning and update support.

• Migrate installed POP3 and open source collaboration applications to Microsoft Online Services.

Small Business (Partner-serviced IT)

• Create cloud-based managed services such as remote management with Windows Intune. • Offer planning and deployment services for hybrid on-premises/cloud environments.• Integrate Active Directory services across Microsoft Online Services deployments.

• Deploy custom workflow automation applications based on SharePoint Online.• Migrate Salesforce.com CRM to Microsoft Dynamics CRM Online.• Package “train the trainer” sessions for internal IT staff who manage hybrid environments.

Medium Business (Small internal IT staff – some IT services out-sourced)

• Provision, manage, and deploy virtual machines in the cloud using the Dynamic Data Center Toolkit for Enterprises.• Provide network operations center planning using System Center for virtualized infrastructure.• Offer cloud-based data protection and recovery solutions with System Center.• Offer security and compliance policy assessments.

• Connect on-premises and cloud applications using Windows Azure platform AppFabric.• Develop customized tools such as customer alerts with Microsoft Dynamics CRM Online.• Provide user adoption training for branch office and mobility solutions based on Office Web Apps.• Migrate LOB applications from on premises to the cloud.

Enterprise (Sizable IT staff, including internal software development)

Public Sector (Education, government, healthcare, public safety, and national security)

• Rationalize identity across multiple services and properties for educational institutions.• Provide provisioning and migration services for government public cloud solutions.• Integrate educational management solutions with Live@edu.• Plan for and manage compliance issues around healthcare data privacy regulations.

• Customize partner-hosted private cloud-based email, messaging, and collaboration services to ensure compliance with data sovereignty requirements.• Provision and migrate Microsoft Online Services for government cloud solutions.• Offer integration services for applications built on the HealthVault platform.

Table of Contents

The Cloud Opportunity

IT Requirements Capitalizing on the Cloud

Partner Opportunities

Making the Transition to Cloud Services

Calls to Action Opportunities in Other Customer Segments

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Partner Opportunities in the Public Sector

Public Sector 21https://partner.microsoft.com/cloudservices

Opportunity Overview for ISVs

New applications and solutions and rapid development with repeatable IP opportunities

• Develop cloud-based versions of on-premises applications using Visual Studio and other familiar tools.

• Drive repeatable IP sales with off-the-shelf applications built on Windows Azure.

Small Business (Partner-serviced IT)

• Develop network monitoring and tracking tools.• Develop customized interfaces, tools, and add-on functionality such as alerts for Microsoft Online Services.• Integrate on-premises applications with social media tools using Windows Azure platform AppFabric.

• Create additional tools such as alerts for Microsoft Online Services.• Build SaaS LOB applications built on Windows Azure.

Medium Business (Small internal IT staff – some IT services out-sourced)

• Create debugging tools for custom cloud applications.• Develop customized cloud-based applications using Visual Studio and other familiar tools.• Build competitive tools for migration from Lotus Notes, MySQL, and SalesForce.com to Microsoft Online Services.

• Build multitenant SaaS applications on Windows Azure. • Enhance applications with additional computational power and storage with Windows Azure.

Enterprise (Sizable IT staff, including internal software development)

Public Sector (Education, government, healthcare, public safety, and national security)

• Use Live@edu services as the communication infrastructure for education solutions.• Build learning analytics and education IT solutions on Windows Azure.

• Develop solutions based on the HealthVault application platform.• Build government solutions on the Windows Azure platform such as emergency responder dispatch systems and geospatial mapping solutions.

Table of Contents

The Cloud Opportunity

IT Requirements Capitalizing on the Cloud

Partner Opportunities

Making the Transition to Cloud Services

Calls to Action Opportunities in Other Customer Segments

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Partner Opportunities in the Public Sector

Public Sector 22https://partner.microsoft.com/cloudservices

1 IDC, Worldwide and Regional Public IT Cloud Services 2010–2014 Forecast, Doc #223549, June 2010

Opportunity Overview for Hosting Providers

Hosting, selling, and add-on service opportunities

• Build your own managed cloud infrastructure using Dynamic Data Center Toolkit for Hosters.

• Sell hosted communication and collaboration services using Exchange Online, SharePoint Online, and Office Communications Online.

Small Business (Partner-serviced IT)

• Sell network monitoring and asset management services.• Offer private cloud services and support using the Dynamic Data Center Toolkit for Hosters.• Provide enterprise hosting solutions, such as storage and archiving for corporate compliance.

• Create cloud-based managed services contracts such as data protection and disaster recovery.• Host horizontal and vertical applications.

Enterprise (Sizable IT staff, including internal software development)

Public Sector (Education, government, healthcare, public safety, and national security)

• Build and host highly secure private clouds for governments in compliance with data sovereignty requirements.• Offer private cloud hosting for pooling shared services among related agencies and jurisdictions.

• Host messaging and collaboration applications for governmental organizations.• Host learning gateway solutions combined with Live@edu services.• Offer vertical education and healthcare applications built on Windows Azure.

• Offer standardized versions of LOB applications built on Windows Azure.• Create virtual data centers and deliver a seamless IT infrastructure across multiple geographies using Windows Server 2008 R2, SQL Server 2008 R2, and System Center.

• Offer “burstable capacity” and backup services with SQL Azure on-demand provisioning.

Medium Business (Small internal IT staff – some IT services out-sourced)

Table of Contents

The Cloud Opportunity

IT Requirements Capitalizing on the Cloud

Partner Opportunities

Making the Transition to Cloud Services

Calls to Action Opportunities in Other Customer Segments