How to make money with Microsoft Hosting?

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Victor Stone
10 years ago
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1 How to make money with Microsoft Hosting?

2 Software + Services will dramatically change our ecosystem, and that s positive, and that s good. Steve Ballmer, December 2006 All our software will become Software + Services within the next few years, mark my words Steve Ballmer, April, 2007 Steve Ballmer CEO, Microsoft Corporation

Steve Ballmer, December 2006 All our software will become Software +

3 What is Your Role in this Market Opportunity? Platform Provider Technical expertise in building complex platform Operational expertise in managing it Up front investment White label provider for other partners and Telco s Key: Managing a strong partner channel Action: Contact your local SPLAR to sign SPLA Trusted Advisor Sales and marketing expertise - understanding SMB customers No up-front investment Have an installed base of existing customers Re-sell hosted solutions from a platform provider Action: Find a Microsoft hoster to resell to your customers

provider for other partners and Telco s Key: Managing a strong partner channel Action: Contact your local SPLAR to sign SPLA Trusted

4 Evolution of Hosting Hosting Market Web Hosting Dedicated Hosting Some IT Services Finished or managed IT Services IT Opportunity

Services Path To Revenue Customers that buy subscription software are more inclined to buy subscription partner services Consult Managed Services Customize Desktop Management and Optimization, end

5 Services Path To Revenue Customers that buy subscription software are more inclined to buy subscription partner services Consult Managed Services Customize Desktop Management and Optimization, end user support Recurrent Revenue Resell/Host Integrate Business Process consulting, SharePoint workflow design, Intranet customization Migration and Integration Resell/Host Repeat Revenue Project Based Revenue Transactional Revenue

Recurrent Revenue Resell/Host Integrate Business Process consulting, SharePoint workflow design, Intranet

Building A Revenue Platform $ Security Backup & Filtering Web Conferencing Unified Communications Business Applications Mail Document Collaboration Web access through to full client & mobile push

6 Building A Revenue Platform $ Security Backup & Filtering Web Conferencing Unified Communications Business Applications Mail Document Collaboration Web access through to full client & mobile push Document sharing and collaboration Outsourced security, spam filtering & backup Web Conferencing Integrated e- mail, IM and VoIP capabilities 2-20/month 5-40/month 2-15/month 5-20/month 20-40/month Business Apps like Dynamics CRM /month Partner Hosted Partner Hosted Microsoft Microsoft Partner Partner Hosted Hosted Hosted Hosted

filtering & backup Web Conferencing Integrated e- mail, IM and VoIP capabilities 2-20/month 5-40/month 2-15/month 5-20/month

Hosted Exchange + SharePoint Solution Overview Solution based Exchange 2007 Licensed to Microsoft Partners End customer rents a mailbox Optimized for deployment by service providers Simplified user

7 Hosted Exchange + SharePoint Solution Overview Solution based Exchange 2007 Licensed to Microsoft Partners End customer rents a mailbox Optimized for deployment by service providers Simplified user (self) management etc Using the Service Provider License Agreement (SPLA) Pay-as-you-grow model Typically also purchase additional storage, mobile access, anti virus/spam Hosted Exchange addresses SMB purchase inhibitors Lack of Exchange TCO and ROI Inability to obtain funding Fear of project cost overruns For SMBs Hosted Exchange TCO is predictable, requires little IT resources and ROI simple to understand and calculate

access, anti virus/spam Hosted Exchange addresses SMB purchase inhibitors Lack of Exchange TCO and ROI Inability to obtain funding Fear of project cost overruns For SMBs

8 Private/White Label How to Sell Hosted Business Small Business (1-24 PCs) Online Telesales Small Business Specialists (resellers) Midmarket ( PCs) Online Direct Sales Indirect Sales reseller partners Up Sell Bundling

Business Specialists (resellers) Midmarket (25-500 PCs)

9 Monetizing the Up Sell Opportunity Providers programmatically driving POP to Business campaigns Migrate all users on HMC/Hosted Exchange Give all users 2 month free Business trial Use the 2 months to ensure new features are actively used 80%+ of active trial users buy Business Overall >20% up sell conversion is benchmark (10% is baseline) Case Study:

new features are actively used 80%+ of active trial users buy Business Email Overall >20% up sell conversion

segments/verticals Minimal incremental costs Viral selling Very quick time to market little up front investment US$20

10 Additional Up Sell Opportunities Push Mail 15% of SMBs Best Candidates for HMC 24% if a decision influencer uses Windows Mobile 42% of Windows Mobile users would pay for push mail Offering multiple services/solution for segments/verticals Minimal incremental costs Viral selling Very quick time to market little up front investment US$20 per user per month revenue opportunity US$7 margin Basic and higher end security services No up-front investments, rapid deployment

Professional Email + Mobile Push Intranet/Extranet + Web 2.

11 Microsoft s Hosted Solutions are Mobile Ready Hosted Exchange Hosted SharePoint Hosted CRM Hosted Unified Communications Professional + Mobile Push Intranet/Extranet + Web 2.0 Business Apps Mobile business applications Hosted Office Communication Server

12 Channels: Indirect Microsoft partners reselling hosting How many are interested? VARs, ISVs and Solution Partner Partner interest in Working with a Microsoft Hosting Service Provider as a hosting reseller (versus becoming a hosting provider themselves) Why are they Interested? Who is most interested? What is the benefit to the Solution Provider? Stay ahead of competion: S+S Extend role as Trusted Advisor Generalists, Managed Services Providers or Web VAPS More business and new customers Sell new and more profitable services Not Interested 27% Somewhat Interested 41% Very Interested 32% Hosting Partners will need to build effective programs that support their resellers

themselves) Why are they Interested? Who is most interested? What is the benefit to the Solution Provider?

13 Microsoft s Investment in Hosting Partners/Resellers Market research Microsoft Partner Program Technical Adoption Programs ADS - Architecture & Design Session BDS Business Development Session Technical training Sales Training Sales and Marketing Toolkit End User Training Go-To-Market Support Premier Support

Design Session BDS Business Development Session Technical training Sales

Toolkit CD Marketing email templates, brochure template, product manager guide, persona

14 Microsoft s Investment in Hosting Partners/Resellers Sales Training 300K+ investment from Microsoft Decks and recordings (English) Web-based Sales and Support training modules HMC Sales Toolkit CD Marketing templates, brochure template, product manager guide, persona descriptions, battle card, objection handling, telesales script, sales presentation, web site template, TCO tool

Summary and Call to Action Opportunity: EUR 56M+ for hosted Business Email Up Sell your Installed Base of mail users?

15 Summary and Call to Action Opportunity: EUR 56M+ for hosted Business Up Sell your Installed Base of mail users? Up and Cross Sell additonal Hosted Services Your role in this market: White Label Platform Provider Hosting Reseller Action: Build technical readiness and a sales channel Build sales/marketing readiness Use Microsoft s resources to support hosters

Up and Cross Sell additonal Hosted Services Your role in this market: White Label Platform

16 Questions? THANK YOU!

The Cloud Backup Opportunity

The Cloud Backup Opportunity BackupAgent for Service Providers Parallels EMEA Partner Forum 2010 October 2010 1 BackupAgent Online Backup for Service Providers Agenda Introduction of BackupAgent Introduction