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Microsoft Online Services S+S Strategy and Business Opportunity

January 5, 2009

The Microsoft Vision for the Hosting Industry



Software-plus-services is a transformative technology: it will shift or even eliminate some traditional sources of revenue, even as it creates many more. To succeed in this new world, Microsoft partners need to know the following:

  • How can my business benefit from the emerging software-plus-services offerings?
  • Is this a viable business model? What market opportunities are available?
  • What do the business models for software-plus-services look like?
  • How can I position my business to prosper the in the software-plus-services realm?

Find out more about the Microsoft vision for Software-plus-Services. And discover how you can leverage Microsoft solutions and resources to fully exploit the Software-plus-Services opportunity. Read more >>



"This 10-minute video provides an overview of the software-plus-services strategy and opportunities to profit, presented by Allison Watson, corporate vice president, Microsoft Worldwide Partner Group" – https://partner.microsoft.com/40065576
"Cobweb Solutions and All3Media discuss Software-plus-Services. Watch this short video to find out what opportunities Software-plus-Services creates for Microsoft Gold Certified partner, Cobweb Solutions as well as what Software-plus-Services has already delivered for Cobweb Solutions’ customer, All3Media"
http://www.cobweb.com/hosted_services/cobweb_hosted_exchange.aspx (Cobweb deployed HMC 4.5)


Delivering the tools and resources Microsoft Hosted Partners need is extremely important to us and we constantly strive to improve the sales, marketing and technical tools available to support your business.
Our knowledge will help you build a secure, reliable hosting platform which supports your needs today and into the future. Identify new ways to grow your business and drive additional revenue by expanding your range of hosted services today. Read more >>
The Microsoft Portfolio of Software-plus-Services Offerings
Learn more about Microsoft offerings. A combination of on-premises software, partner-hosted offerings and Microsoft-hosted software and services offers rich applications that can increase your profitability while offering your customers more options to match their business models.  Read more >>

Generate predictable, recurring revenue from Microsoft Online Services – enterprise-class software delivered as subscription services, hosted by Microsoft and sold by you. Help customers increase their efficiency with the messaging and collaboration solutions in the Microsoft Business Productivity Online Suite. Give them a fast, flexible and affordable customer management solution with Microsoft Dynamics CRM Online. Sell Microsoft Online Services to earn advisor fees, expand your base and serve new segments. Read more >>

Sofware Plus Services Partner Home page:
Software-plus-Services Business Opportunity:
Microsoft Online Services – For Partners
Microsoft Online Services – Home

Software-plus-Services is part of a major shift happening in the software industry today……

Slide Notes: 

Looking more closely at the applicable business models – the first example is one we take from the March 3rd announcement of Business Productivity Online Suite (BPOS).

We see opportunities for partners with BPOS in 2 product scenarios: Standard and Dedicated.

Standard offers partners the ability to scale services to multiple customers under a common, single architecture.

There is no limit to the number of seats allowed within the standard offering.

An ideal solution for customers who need the value and power of the BPOS offering with a rapid deployment timeframe.

Dedicated offers a solution tailored to a specific customer architecture.

The solution is targeted to customers of 5,000 seats or more who require the depth of server functionality within the BPOS offering.

Here are some scenarios that highlight leading opportunities for Partners to expand their customer base with Microsoft Online Services: 

New Exchange upgrades for on-premise Exchange customers is an easy way to engage customers who may be facing barriers to upgrade or customers who want to extend mobile messaging solutions. 

New SharePoint opportunities abound, especially in terms of design and consulting.

Partners can also extend their offerings into new verticals, selling to departments within large enterprises without the need for complex infrastructure procurement processes. 

And of course Partners can develop new services or scenarios to support the Microsoft Online Services offering.

These are all opportunities that all Partners can take advantage of to maximize their growth and revenue potential.


Slide Notes:

Microsoft views Software-as-a-Service or SaaS as a revolutionary way to provision and deliver great software experiences to users.

We believe the best software solution is the one that puts the right computing power in the right place at the right time.

In some cases, it will reside and deliver from the cloud.

In other cases it will reside locally, on-premise.

Microsoft believes the combination of software-plus-services offers customers the best of both worlds and the most choice, as well as, giving partners a wide array of options to build great solutions and provide customer value! 

We also believe it will involve a combination of the rich in browser, Web 2.0 user experience, with on-demand software delivery, whether the server is on or off premise being a business decision.

These on-demand services will be integrated together and aggregated using a Service Oriented Architecture approach, where applications can be built by composing different services (mixing/matching-aggregating those services to deliver applications to users), with Web services playing a major role.

 Slide Notes:

The goal of Microsoft’s software-plus-services strategy is to empower customers and partners with richer applications, more choices, and greater opportunity through a combination of on-premise software, partner-hosted software, and Microsoft-hosted software.

How software is consumed will ultimately be decided by customers based on their IT strategies and specific needs.

We believe in the power of choice.

If customers want to maintain control of their environment, they can choose to have an on-premise solution.

If their business demands a more flexible solution, or needs to outsource certain aspects of the business, then customers have the choice of a hosted solution.

We believe most customers will eventually choose a blend of solutions, both on-premise and hosted to create a ‘hybrid’ model.

However, one thing is certain: Choice is always a good thing, and a software-plus-services strategy will help Microsoft partners and customers realize their full potential.

"This newest pillar of Software-plus-Services is going to open up a whole new opportunity for existing partners to extend their business and a whole new opportunity for new partners to come along and create value in the marketplace." — Kevin Turner, COO, Microsoft

Additional Talking Points

However, one thing is certain: Choice is always a good thing, and a software-plus-services strategy will help Microsoft partners and customers realize their full potential.



Slide Notes:

"To simplify our approach and to articulate it effectively to the market, we will go to market under two brands, segmented according to customer needs.

Microsoft Online, represents the set of services, Hosted by Microsoft that are targeted from small business to enterprise customers. 

The most recent development, on March 3rd , was the announcement of Exchange Online and SharePoint Online as part of the latest

Microsoft Online product offering, Business Productivity Online Suite (BPOS).

The importance of this announcement is the availability for companies of any size,with a sweet spot for the SMB market, to have  access to enterprise capabilities with Exchange and SharePoint, in addition to Live Meeting and Exchange Hosted Services which are already available today. 

CRM Live, will now also move to the Online brand, delivering on the strength of the brand and communicate an integrated experience among the rest of the Online services.

Microsoft Live, which represents another set of services hosted by Microsoft, is predominantly focused on the consumer and SOHO market, providing a rich set of services and experiences for our consumer and SOHO customers."


Slide Notes:
"An example of software-plus-services from the Microsoft Online Services space for Enterprise customers is our Exchange Server product.  Everyone is familiar with Exchange for email and collaboration.

You probably know you can access this server from multiple nodes – Outlook on your desktop and laptop, Outlook Web Access for a web browser experience with AJAX, from your SmartPhone, and from a telephone with our voice capabilities.

This is an important theme for software-plus-services – the idea that you can access a service from multiple devices or nodes and all your information is up to date. 

You also have a choice of where Exchange will run.

You can run it in your data center, a partner can host it for you or for our largest customers, or Microsoft will host it in one of our data centers.

In addition, there are attached services you can add on easily to Exchange.

Services like Forefront for Antivirus, Hosted Filtering, Hosted Archive, Hosted Continuity and Hosted Encryption.

These Services make it easy to add capabilities to your Exchange infrastructure.

Exchange already uses a software-plus-services approach today, and it’s a powerful combination: Multiple nodes for different user experiences, your choice of how Exchange services are delivered, and the ability to add features with a services approach. 

Microsoft will remain a channel driven company and our partner ecosystem is a major strength"


Slide Notes:

Microsoft Dynamics CRM Online provides businesses with a fast, flexible and familiar way of managing customer relationships through a web-based solution managed by Microsoft.

With a full-suite of Sales, Service and Marketing functionality – combined with powerful business workflow and point-and-click customization, Microsoft Dynamics CRM Online provides businesses an easy way to track and manage customer interactions.

The target deployment for Microsoft Dynamics CRM Online ranges from 5 to 25 CRM seats; however, Microsoft Dynamics CRM Online can be used for larger deployments 

CRM Online offers benefits to several partner types.

For ISVs, the ability to develop vertical or specialized CRM solutions.

Another is the opportunity to expand on-premise to the cloud with an on-demand solution.

Larger ISVs may self-host, but most will partner with Service Providers.

Service providers may host and bundle with existing customers to cross-sell existing customers; private or ‘white-label’ for other VARs or Sis; or even host for other ISVs.

Finally in addition to expanding on-premise to the cloud with an on-demand solution, Resellers or Sis can partner and implement for other Solution Providers and ISVs.




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