discover the opportunities with selling the cloud partner economics in selling office 365 to smbs...
TRANSCRIPT
SpeakerTitleCompany
Making Money & Building a Business Using Office 365
Discover the opportunities with selling the cloudPartner economics in selling Office 365 to SMBs
Today’s objectives
Build a strong Office 365 businessBest practices for selling the cloud to the SMB segment
Choose the business model that fits your needsReview of the Office 365 business models offered today
Discover the opportunities with selling the cloudPartner economics in selling Office 365 to SMBs
Today’s objectives
Build a strong Office 365 businessBest practices for selling the cloud to the SMB segment
Choose the business model that fits your needsReview of the Office 365 business models offered today
Choose the right model for you
Little to no capital costs
required
Fixed payment structure
More predictable
revenue stream
Own the customer
billing
Sell as you do today
Increased upsell and
attach opportunities
Advisor
Office 365 Open & FPP
Expansion of the Open Channel
Office 365 ProPlus
Government & Academic SKUs
Standalone SKUs(Exchange Online Plan 1)
Enterprise SKUs(E1 & E3)
More choice and flexibility for your customers
Power of choice by SKU and by channel
Office 365 Enterprise &Government
Office 365 University1
1-10 Advanced IT Needs11 - 250Home / K-12Student
Office 365 Small
Business Premium
Office 365 Midsize Business
Office 365 Home
Premium
Advisor
Office 365 SKUs
Key Customer Segments
Open
FPP
Though
Dis
trib
uti
on
Note: 1For academic customers, the following SKUs will be available in the Open License, and OVS-ES program instead of Office 365 University: Office 365 ProPlus for Students, Office 365 ProPlus for Faculty, Office 365 Plan A3 for Student, Office 365 Plan A3 for Faculty
Discover the opportunities with selling the cloudPartner economics in selling Office 365 to SMBs
Today’s objectives
Build a strong Office 365 businessBest practices for selling the cloud to the SMB segment
Choose the business model that fits your needsReview of the Office 365 business models offered today
The path of opportunity for Office 365
Office 365 Licensing Revenue
Deployment & Migration Services
Managed Services and
Support
Add-on Projects and Solutions
Baseline Good Better Best
High
Low
Structure of Office 365 Deal
Revenu
e
$48-240 / seat
$40-120 / seat
$50-80 / seat
$40+ / seat
Note: Estimates are based on partner interviews so actual numbers will differ from market to marketAll revenue streams are re-occurring except for “Deployment and Migration Services”, which is a one-time event
• Help desk (i.e. Tier 1 / Tier 2 support)
• New user set-up• Updates• End-user training
• Expansion• Customization• LOB integration• IT infrastructure
design• IT planning• IT training• Upgrades & desktop
remediation• Assessment / planning
• Migration of data• Establishment of
service
= Recurring
Office 365 and the cloud lead to attractive deals
Note: Estimates use Office 365 Midsize Business SKU and are based on partner interviews so actual numbers will differ from market to market
Licensing Deployment & Migration
Annual Support Add-on Software Projects0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
Office 365 Deal Economics - Open(Assumes a 60 Seat Customer)
Recurring One-Time
= Recurring
$10,800
$4,000
$4,000
$5,300
$9,250
U.S
. D
ollars
What opportunities exist and why are they attractive?
Office 365 Licensing Revenue
Deployment & Migration Services
Managed Services and
SupportAdd-on Projects and Solutions
Baseline Good Better Best
Structure of Office 365 Deal
Note: Estimates are based on partner interviews so actual numbers will differ from market to marketAll revenue streams are re-occurring except for “Deployment and Migration Services”, which is a one-time event
Other Products and Services
Bigger deals driven by easier upsell/cross-sellOffice 365 Licensing Revenue
Deployment & Migration Services
Managed Services and Support
Add-on Projects and Solutions
Office
Increased margins by leveraging reusable offerings
3rd Party Migration Tools
Takes the complexity out of the sale so you can focus on selling rather than deploying
Can resell these tools to customers for a healthy margin
Don’t need technical engineers to complete the process
Tier 1 Support
Support with a centralized set of employees
Able to scale resulting in improved profitability over time
Can easily address most problems remotely
End User Set-up and Training
Most SMBs will not have familiarity with some of the workloads in Office 365
Most of this baseline information will be the same for all SMB customers
Sharepoint Templates
Build once and then resell the IP to other customers
Many partners focus on templates for certain industries
Can sometimes lead to follow-up work around customizing it to fit a certain need / purpose
Standardized Services that Partners Sell Successfully Today
Office 365 Licensing Revenue
Deployment & Migration Services
Managed Services and Support
Add-on Projects and Solutions
Discover the opportunities with selling the cloudPartner economics in selling Office 365 to SMBs
Today’s objectives
Build a strong Office 365 businessBest practices for selling the cloud to the SMB segment
Choose the business model that fits your needsReview of the Office 365 business models offered today
How have high-performing partners found success?
Used a low-touch, centralized sales and service model
Created simple packaged offerings that are easy to sell
Changed conversation to focus on the capabilities of cloud
Used a low-touch, centralized sales & service model
Invest in digital marketing to drive demand generation
Take advantage of remote service delivery
Incubate the Office 365 sales team from mainline sales team
Leverage tele sales and support with smaller customers
Created simple packaged offerings that are easy to sell
Office 365 Licensing Revenue
Managed Services and Support
Add-on Projects and Solutions
Simple “Per User” Price
+ + =
$180 / user $65 / user $65 / user $310 / user / year
$0.84User Cost / Day
$25.83User Cost / Month
$18.6KCost in 60 User
Company
24%of a Starbucks
37%of an avg. cell phone
bill
22%Cost of an IT Pro
• Explain the cost in the context of something that the customer can understand
• Highlight the simplicity and cost predictability that moving to the cloud provides
• Discuss the relative up-front cost of replicating the same functionality with an on-premise solution
Example:
Note: Estimates are based on partner interviews so actual numbers will differ from market to market
Changed conversation to focus on the capabilities of cloud “The Pitch”Target
Audience
Business Decision Maker
Be More Productive Anywhere
WorkBetterTogether
LookMoreProfessional
Simplify,But Stay in Control
Get Morefor Your Investment
Next steps
Join the Cloud Essentials / Cloud Accelerate programs
Learn more about building a successful cloud business (IDC Research & Office 365 White Paper)
In the next 60 days, attach at least one seat of Office 365 to an existing Open/FPP customer
Don’t forget to join the Office 365 Yammer group!
www.yammer.com/office365partners