business builder for cloud services -...

Business Builder for Cloud Services Partner Opportunities in the Medium Business Market (200-2,000 Employees)

•Asmallinternalinformationtechnology(IT)staffand/orsomeoutsourcedIT.

•200-2,000employees.•CoreinfrastructureservicessuchasafirewallandcentralPCmanagement.

•On-premisesbusinessproductivityservicessuchasemail,voice,storage,CRM,accounting,andtaxservices.

•Horizontalandverticalapplications.•Amobileworkforceandawebpresence.

•WindowsIntune•MicrosoftExchangeOnline,MicrosoftSharePointOnline,MicrosoftOfficeCommunicationsOnline,andMicrosoftOfficeLiveMeeting

•MicrosoftDynamicsCRMOnline

•HostedversionsofMicrosoftExchangeServer,MicrosoftSharePointServer,andMicrosoftOfficeCommunicationsServer

•WindowsAzure,MicrosoftSQLAzure,andWindowsAzureplatformAppFabric

•WindowsServer2008R2withHyper-Vtechnology

Youwillfindguidesthataddressothercustomerscenarios,suchassmallbusinessesorthepublicsector,athttps://partner.microsoft.com/cloudservices

This guide is primarily for partners that serve medium business customers with:

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

https://partner.microsoft.com/cloudservices

Partner Opportunities in the Medium Business Market

Medium Business Market 2https://partner.microsoft.com/cloudservices

Table of Contents

The Cloud Opportunity Executive SummaryThe Cloud Opportunity and Customer Benefits

3

4

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

6

7

IT Requirements Medium Business IT Requirements5

Partner Opportunities Reselling to Medium Business CustomersServicing Medium Business CustomersDeveloping for Medium Business CustomersHosting Services for Medium Business 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 Segments Opportunity 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




This guide is designed to provide partners with an overview of the cloud services opportunity in the medium business space and the specific opportunities available to them. It covers the following topics:

Executive Summary

In the next few years, medium business demand for cloud services is projected to grow rapidly, with medium business customers expected to drive the greatest cloud services sales growth for solution providers through 2012.1 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.2 This IT transformation represents a huge market opportunity for partners, but it also necessitates some changes in the way that you package, sell, resource, finance, and manage your business.

Core information technology (IT) needs of medium business

customers

Business models and cloud revenue opportunities in the

medium business market

Calls to action specific to partner models

This guide includes action plans as well as resources that will help you launch or enhance a cloud services practice.

Throughout this guide, “medium business” refers to businesses with a small internal IT staff; medium businesses outsource some IT delivery and have approximately 200–2,000 employees. Medium business customers require enterprise-class capabilities, and have some of the same core infrastructure needs as enterprise customers, such as central PC management and identity and security management, but with a different level of purchasing power due to their smaller size.

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The Cloud Opportunity and Customer Benefits

A recent study by the Institute for Partner Education and Development found that medium business customers are expected to drive the greatest cloud services sales growth for solution providers through 2012.3

Medium business IT departments often face many competing priorities, from integrating new technologies within existing systems, to taking on strategic initiatives, to providing everyday maintenance and support services. This makes the deployment, integration, and support of core infrastructure IT needs challenging.

The gap between IT needs and resources provides partners with many opportunities to sell, service, build, and host cloud services for a number of reasons:

Medium businesses present a compelling opportunity for partners that offer cloud services.

Lower initial capital costs and predictable recurring expenses

Cloud services virtually eliminate the need for large up-front infrastructure investment, and are typically subscription-based. This shift to operating costs rather than initial capital expenditures results in a healthier balance sheet.

Greater agility and scalability The cloud provides greater agility and scalability to adapt to changing workloads and needs with high availability and quicker deployment. Cloud services allow medium business customers to easily adjust as their business needs evolve. Customers can scale up or down more quickly without significant resource investment. In addition, deployments are much faster, reducing the expense and disruption of lengthy on-site projects.

Enhanced ability to focus on strategic initiatives

Because cloud services generally result in lower IT expenses and greater capabilities, they allow businesses to place greater focus on strategic initiatives. Cloud services simplify deployment and management processes for basic IT services, reducing management time and enabling IT resources to be aligned to efforts that provide greater added value.

More rapid development at a lower cost

The cloud enables rapid development and makes it easier to share information across boundaries, harness massive computing power, and employ storage on demand.

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Medium business organizations typically get their IT services from a mix of internal and external resources. Many have adopted hosted email or cloud-based web conferencing solutions, but they have yet to realize the full potential for integrating cloud services into their existing IT infrastructure, or replacing it wholesale with cloud services. Cloud opportunities specific to this market include:

The cloud also opens up opportunities to up-sell customers from earlier Windows and Microsoft Office versions to the most current versions along with cloud innovations such as Windows Intune or Microsoft Office Web Apps.

Medium Business IT Requirements

The Microsoft BPIO model helps simplify how people communicate and helps improve the quality of business insight. The cloud is an ideal medium for BPIO solutions, as it enables “anytime, anywhere” functionality without major infrastructure requirements. Microsoft cloud solutions such as Microsoft Online Services, Microsoft Dynamics CRM Online, and online services for Microsoft Dynamics ERP provide medium business organizations

Business Productivity Infrastructure Optimization (BPIO) solutions

with enterprise-class BPIO capabilities that can be seamlessly integrated with on-premises applications. These solutions also open a number of new opportunities for partners, from consulting and deployment planning services to opportunities for attaching cloud solutions such as Microsoft Exchange Online to on-premises products such as Microsoft Office 2010.

For development partners looking to build LOB cloud-based or hybrid applications, the Windows Azure technology platform offers a scalable development environment with compute, storage, hosting, and management capabilities. Partners can develop applications on behalf of other partners, develop applications for sale or resale through other partners, or help

Line-of-business (LOB) applications and custom solutions

customers develop their own cloud-based applications. Similarly, partners can build custom extensions to Microsoft SharePoint Online, Microsoft Office Communications Online, Exchange Online, and Microsoft Dynamics ERP to support specific customer business needs, and integrate these solutions with other applications both on premises and in the cloud.

Partners can use Microsoft cloud services to extend, enhance, or altogether replace key Core IO capabilities. For example, partners can offer services based on Windows Intune, which

Core Infrastructure Optimization (Core IO) solutions

enables partners to remotely manage and secure customers’ PCs anywhere, or the Active Directory service, which provides a foundation for building cloud-based identity and access solutions.

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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.

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 support, and ongoing support and maintenance.

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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


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


Following is a more detailed list of opportunities in the medium business market by partner business model. For an overview of opportunities available to partners that are serving other customer segments, please see the Opportunities in Other Customer Segments section later in this guide.

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“We expect to add about 25 large Microsoft Online Services customers a year, which will increase our revenues by at least 83 million SEK [U.S. $10 million] annually.”

-Anders Grönlund, Marketing and Alliance Manager, Zipper

Reselling to Medium Business Customers

Earn 6% recurring revenue with each customer, with one-time commission of 12% on all net new seats selling Microsoft Online Services and Windows Intune.

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

Create and sell training and support packages.

Sell CRM applications built on Microsoft Dynamics CRM Online and online services for Microsoft Dynamics ERP via subscription.

Sell subscriptions to LOB applications built on Windows Azure.

Core IO BPIO LOBIncrease Revenues: Generate Recurring Revenue Streams

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

Mobility solutions based on Office Communications Online.

Deskless worker solutions based on Office Web Apps.

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

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

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

Core IO BPIO LOB

Expand Services: Up-sell and Cross-sell Add or attach Windows Intune to core infrastructure managed services offerings and Windows 7 upgrades.

Use Windows Intune as another path to drive Windows 7 upgrades.

Attach Microsoft Online Services with Office 2010 upgrades.

Up-sell installed Office 2003 and Office 2007 base to Office Web Apps.

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

Sell Microsoft Dynamics CRM Online and Microsoft Dynamics ERP solutions that complement on-premises solutions.

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

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

Cross-sell LOB applications such as business intelligence solutions built on Windows Azure.

Core IO BPIO LOB

Sell add-on desktop and 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.

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

Sell value-added solutions for LOB applications such as HR solutions built on Windows Azure.

Core IO BPIO LOBPackaged Solutions: Create Value-Added Solutions

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

-Danny Burlage, Chief Technology Officer, Wortell

Integrated Active Directory services across Microsoft Online Services deployments and on-premises applications.

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

Support for migration of on-premises data to cloud applications such as Exchange Online, SharePoint Online, and Microsoft Dynamics CRM Online.

Application migration from on-premises deployments of Exchange Server, SharePoint Server, and Office Communications Server to Microsoft Online Services.

Migration of data from Salesforce.com to Microsoft Dynamics CRM Online.

Extend and augment on-premises Microsoft Dynamics ERP with online services for Microsoft Dynamics ERP

Connection/integration of on-premises applications to cloud-based applications using Windows Azure platform AppFabric.

Migration support for on-premises LOB applications such as manufacturing solutions to cloud-based applications based on Windows Azure.

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 Windows Intune for cloud-based environments.

Deployment planning for hybrid on-premises/cloud-based environments.

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

Cloud asset inventory management.

Custom application deployment (such as workflow automation solutions built on SharePoint Online, mobility solutions through Office Communications Online, customer alert functionality with Microsoft Dynamics CRM Online, or supply chain solutions built on online services for Microsoft Dynamics ERP).

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.

Intrusion protection, log management, and integrated performance and security monitoring based on Windows Intune.

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

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

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

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

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

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

Servicing Medium Business Customers

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“With Windows Azure, it took two developers only two days to migrate our existing application to the cloud.”

- Edmund Gray, Lead Developer, TradeFacilitate

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

Collaboration and workflow solutions such as SharePoint calendaring applications.

Cloud-based versions of on-premises applications using Microsoft Visual Studio and other familiar tools.

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.

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 Services.

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

Core IO BPIO LOBRapid Development and Deployment

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

Scalable applications designed for tiered pricing based upon 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 Windows Azure.

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

Developing for Medium Business Customers

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Hostway Korea expects that virtualizing its internal infrastructure on Windows Server 2008 R2 with Hyper-V will help reduce power costs by about 75 percent.

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

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

Core IO BPIO LOBBroaden the Marketplace

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

Partner with independent software vendors (ISVs) to offer hosted versions of vertical applications for specific industries such as financial services.

Core IO BPIO LOBIncrease Wallet Share: Host Versions of Cloud Applications

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” 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

Hosting Services for Medium Business Customers

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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.

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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.

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http://www.microsoftlearningplans.com/Setup.aspx



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.

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https://partner.microsoft.com/global/40101713


https://roianalyst.alinean.com/microsoft/business_partner/launch.html

http://florluat01.alinean.com/uat/AutoLogin.do?d=773473549393078109

www.microsoftcloudpartner.com

www.microsoftcloudpartner.com

http://www.microsoftplatformready.com

http://www.azurehub.com/


http://pinpoint.microsoft.com/



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

200-500

500-100

1000-2000

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.

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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; sell Microsoft Online Services with Office 2010 and 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

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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.• 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

• The Windows Azure platform supports applications, data, and infrastructure in the cloud, giving organizations 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.

• Dynamic Data Center Toolkit for Hosters is a free, partner-extensible toolkit that provides a framework for creating virtualized IT infrastructures.

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https://partner.microsoft.com/global/productssolutions/40134319

http://www.microsoft.com/online/

http://www.microsoft.com/online/exchange-online.mspx

http://www.microsoft.com/online/sharepoint-online.mspx

http://www.microsoft.com/online/office-communications-online.mspx

http://www.microsoft.com/online/office-live-meeting.mspx

http://www.microsoft.com/windows/windowsintune/default.aspx

http://www.microsoft.com/online/dynamics-crm-online.mspx

http://www.microsoft.com/Office/2010/en/office-web-apps/default.aspx

http://www.windowsazure.com

http://www.microsoft.com/windowsazure/sqlazure/

http://msdn.microsoft.com/en-us/azure/default.aspx

http://msdn.microsoft.com/en-us/azure/default.aspx

http://www.microsoft.com/windowsazure/appfabric/

http://www.microsoft.com/windowsazure/appfabric/

http://www.microsoft.com/hosting/dynamicdatacenter/Home.html



The following table provides a high-level overview of the opportunities available by partner type beyond the medium business customer 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

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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.

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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.


• 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.


• 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.



• 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.

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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.


• 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.


• 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.



• 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.

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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.


• 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.



• 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.


1 IPED: Cloud Adoption Study, March 2010. 2 IDC, Worldwide and Regional Public IT Cloud Services 2010–2014 Forecast, Doc #223549, June 2010.3 IPED: Cloud Adoption Study, March 2010.

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