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Reseller Channel – Past Present Future Samantha Zammit Reseller Channel Director Small Mid Market Reseller Channel – Past Present Future Samantha Zammit Reseller Channel Director Small Mid Market Biz

AGENDA – Past - Our Journey – Present • • • Key Messages SAM AGENDA – Past - Our Journey – Present • • • Key Messages SAM Local team H 2 focus areas MSF opportunity to help close deals Partner ecosystem – Future • Customer segment map • FY 09 opportunities & programmes – Call to action

PAST PAST

Our Journey FY 06 • Open License weak • Distributor consolidating • LAR – Our Journey FY 06 • Open License weak • Distributor consolidating • LAR – what is value? • Low Software Assurance sales in small and medium customer segment • Channel little alignment with segment? FY 07 • Open focus • Execution Excellence • LAR Refresh • Scorecard, forecasts • New rebate alignment • MM Scale

PRESENT PRESENT

Our Journey FY 08 FY 06 • Open weak • Disti consolidating • LAR Our Journey FY 08 FY 06 • Open weak • Disti consolidating • LAR – what is value? • Low SMSP annuity • Channel little alignment with segment FY 07 • Open focus • Execution Excellence • LAR Refresh • Scorecard, forecasts • New rebate alignment • MM Scale • Increase investment • Execution Excellence • Joint Planning • Relationships • Programmes • Value Add

Reseller Team Structure Samantha Zammit Director Reseller Channel Shalini Anand Stephen Smith Lisa Youlden Reseller Team Structure Samantha Zammit Director Reseller Channel Shalini Anand Stephen Smith Lisa Youlden SMSP LS PAM – LAR Strategic Engagement Disti Sales Manager Licensing Marketing Team Katie Mortimer Malcolm Fraser New Jen Lilley Brad Clarke PAM – LAR Strategic Engagement SMSP LS Open Reseller PAM - Disti Operational Execution Breadth Sales Manager Anthony Kola SMSP LS MSF Financing Host Manager Katrina Braund – BDM/Mktg Brett Parker – MSF EPG Paul Weingarth – MSF SMSP Steve Kerr – MSF SMSP Team of 6 Telesales Reps Based in Manilla Breadth Sales Execution Thomas Kablau Strategy Ainslie Mc. Namara Mktg/Comms Tony Parzakonis VL Readiness

Big Bets • • • Team Channel Efficacy & Readiness Measurement & Effectiveness Return Big Bets • • • Team Channel Efficacy & Readiness Measurement & Effectiveness Return on Investment Software Asset Management Microsoft Finance

H 2 Focus • • • Close revenue forecast Drive Wave Launch Open Value H 2 Focus • • • Close revenue forecast Drive Wave Launch Open Value for Government Readiness - Licensing Competency Operational Excellence – Forecast accountability – Reduce order entry errors • Drive value back to your customers

FUTURE FUTURE

ENTERPRISE ENTERPRISE

FY 08 Business Priorities 1. Sell Platform and Solutions for a People Ready Business FY 08 Business Priorities 1. Sell Platform and Solutions for a People Ready Business – Infrastructure Optimisation – Solutions (PSAs / IPSAs) 2. License + Socket Optimisation – Leveraging customers’ licensing lifecycle (including penetration) as a growth lever – Capturing opportunities for the up-sell and attach of products and solutions – Grow Revenue per Socket (CAL, Office, Server) 3. Engage as One Microsoft: – Perfect the Engagement Framework between ATU, STU and PTU – Partner, Services & Marketing

Team Structure ATUs (Account Team Units) Public Sector Commercial Sector PS FED PS NSW Team Structure ATUs (Account Team Units) Public Sector Commercial Sector PS FED PS NSW PS QLD PS VIC WA SA FS North CS Comm North Comm South Comms & Media STU (Specialist Team Unit) CORE Infrastructure Business Productivity Infrastructure Application Platform Priority Solutions / Business Applications PTU (Partner Team Unit) Alliance PAMs Solution PAMs SETU (Sales Excellence Team Unit) Infrastructure Optimisation (IO) Sales Optimisation (SO) License Optimisation (LO)

FY 08 Business Priorities 1. Sell Platform and Solutions for a People Ready Business FY 08 Business Priorities 1. Sell Platform and Solutions for a People Ready Business – Infrastructure Optimisation – Solutions (PSAs / IPSAs) 2. License + Socket Optimisation – Leveraging customers’ licensing lifecycle (including penetration) as a growth lever – Capturing opportunities for the up-sell and attach of products and solutions – Grow Revenue per Socket (CAL, Office, Server) 3. Engage as One Microsoft: – Perfect the Engagement Framework between ATU, STU and PTU – Partner, Services & Marketing 4. Sales Excellence & World-Class-Selling (the science & the art of selling) – 3 Core Sales Processes: • Relationship Management • Opportunity Management • Business Management

Sales Approach People Ready Business Solutions & Workloads Products & Sockets Grow Customer Relationships Sales Approach People Ready Business Solutions & Workloads Products & Sockets Grow Customer Relationships Infrastructure Optimisation Solutions Operational Efficiency People - Ready Business Renew als Manage Risk & Compliance Optimize Application Platform Optimize Business Productivity Infrastructure Optimize and Secure Core Infrastructure / Opportunity Management/ Trueups RPRC License Optimisatio n SAM Drive Corporate Performance Deploy & Service Licensing Lifecycle Accelerate Innovation Improve Operations Relationship Management Procurement (LO) Upsell Attach / Stepup SA Benefits New EA Infrastructure Agreement Component to Core CAL upsell Core to Enterprise CAL upsell Renewal True-up & Attach MSFin - Structure SAM SA Benefits Business Management Deployment Plans Premier & ITAP propositions with Partner Connection Capabilities Role - Based Productivity Solutions Customer Value Prop Strategy Business Transformation Vision

SMALL & MID SIZED SMALL & MID SIZED

Our Journey FY 09 & Beyond FY 06 • Open weak • Disti consolidating Our Journey FY 09 & Beyond FY 06 • Open weak • Disti consolidating • LAR – what is value? • Low SMSP annuity • Channel little alignment with segment FY 07 • Open focus • Execution Excellence • LAR Refresh • Scorecard, forecasts • New rebate alignment • MM Scale FY 08 • Invest people • Marketing ROI • LAR Scorecard V 2 • PBPs and COS • OV focus • Gov’t & 2 Tier • P 900 V 2 • Channel Comms • LAR rebate • $150 m in 3 yrs in Depth & Breadth • OV acceleration • SMB annuity • Min 20% Yo. Y • Public Sector focus • Data focus • RPS in Depth • Socket in Breadth

MID SIZED >250 SEATS MID SIZED >250 SEATS

Market Opportunity IDC - 250 to 500 seats FY 08 Business Intelligence FY 09 Market Opportunity IDC - 250 to 500 seats FY 08 Business Intelligence FY 09 FY 10 CAGR 38. 3 41. 9 45. 5 9. 8% - Advanced Analytic Applications# 5. 5 5. 9 6. 3 7. 6% - Business Performance Mgt and Financial Analytic Applications 5. 5 6. 0 6. 5 9. 8% 22. 6 25. 0 27. 6 11. 6% - End User Database Management Systems (50% Allocation) 1. 5 1. 6 3. 5% - Project & Portfolio Management (50% Allocation) 3. 2 3. 4 3. 5 4. 9% 11. 5 12. 7 14. 1 10. 9% - Conferencing Applications 1. 1 1. 4 1. 7 26. 4% - Messaging Applications 2. 3 2. 4 2. 5 5. 4% - Integrated Collaborative Environment 7. 3 8. 2 9. 2 12. 3% . 8 . 7 -6. 3% 71. 8 81. 3 91. 7 13. 3% . 4 . 4 4. 8% - File System Software# 3. 1 3. 3 3. 5 6. 3% - Project & Portfolio Management (50% Allocation) 3. 2 3. 4 3. 5 4. 9% - End User Database Management Systems (50% Allocation) 1. 5 1. 6 3. 5% 48. 1 54. 9 62. 3 14. 1% - Content Management 8. 8 10. 1 11. 6 15. 2% - Enterprise Portals 5. 2 6. 0 6. 9 16. 6% - Content Access Tools 1. 6 1. 8 1. 9 7. 6% - End-User Query, Reporting, and Analysis Unified Communications - Other Collaborative Applications Core Productivity - Team Collaborative Applications Market Opportuntity - Authoring and Publishing Software 63. 8 M

BI & Portals Remain Key Focus for Short Term Software Adoption Plans for Software BI & Portals Remain Key Focus for Short Term Software Adoption Plans for Software Solutions BI & Portals Remain Key Focus For Short-Term Software Adoption Source: Gartner ‘Dataquest Insight: Midsize Business IT Spending Plans, 2 Q 07 Update’ July 17 th, 2007

Midsized Business Spending Forecasts • In the next 12 months, the Mid Market is Midsized Business Spending Forecasts • In the next 12 months, the Mid Market is expected to deliver strong growth in both Software and Services Spend. • In FY 07: • The Australian Midsized Software Market was worth US$1. 3 Billion • And the Services Market was worth US$4 Billion Total Mid Sized Software Spend Growth 9. 4% Lower Mid Market (Unmanaged) 11. 2% Core Mid Market (Breadth) 9. 6% Upper Mid Market (Depth) 8. 4% Total Mid Sized Services Spend Growth Source: Microsoft Research Based On IDC Data 6. 8%

Operational Issues Remain Top Of Mind Source: Brennan Mid Market Insight Series, Based On Operational Issues Remain Top Of Mind Source: Brennan Mid Market Insight Series, Based On IDC Data, April 2007

Satisfaction Licensing Simplicity • Simplify the Process – More training for Partners – “how Satisfaction Licensing Simplicity • Simplify the Process – More training for Partners – “how to buy” messaging for customers • Simplify Pricing – Reducing number of price points by 51% – Reducing SKUs by 51% • Simplify Agreements – Improved readability and referencing – Rearranging and rewriting contract terms – Agreement lengths reduced 10 -50% • Simplify Access and License Management – Improvements to software download process – New tools

How Can You Capitalise On This? How Can You Capitalise On This?

Adding value to customers Q. How important are each of the following qualities in Adding value to customers Q. How important are each of the following qualities in a potential provider of IT solutions? Source: Gartner ‘SMBs Use of IT, Asia Pacific, 2006’ February 7 th, 2007

MID SIZED CUSTOMER CAMPAIGNS P P MID SIZED CUSTOMER CAMPAIGNS P P

SMALL 50 -250 SEATS SMALL 50 -250 SEATS

How Will We Do? Key Focus: 1. 2. IW Socket Penetration in Non Annuity How Will We Do? Key Focus: 1. 2. IW Socket Penetration in Non Annuity Server & CAL Non Annuity Penetration Upper Breadth (100 -250 PCs) – DATA and ANNUITY = RPS • • • Invest in data quality, profiling and customer contactability. Scale Renewal efforts. Develop contact strategy based on improved segmentation and data mining. Invest in Customer Acquisition Marketing to increase socket penetration. Invest in ISV & Solution partners to build presales capabilities and Geo Coverage Invest in additional SAM Telesales resource and implement SAM Thru Partner Optimise SMB Lead Generation Team and develop centre of excellence Lower Breadth (<100 PCs) - SOCKET THROUGH CHANNEL • • • Increase active breadth VAR channel use Rebate to incent First VL Increase emphasis on Thru Partner Marketing to execute Customer Campaigns Leverage Web to drive self-serve relationship marketing and demand Build new routes to market (e. g. Hosting, Mobility and Telco) Increase focus on AP efforts by implementing SAM Thru Partner

Calls to Action • Continue to attend Business Briefings on regular basis – these Calls to Action • Continue to attend Business Briefings on regular basis – these sessions are built for you • Give us feedback if our Newsletters and other comms vehicles are not adding value • Provide feedback to your MS PAM if we can help you with any of your opportunities • Focus on your Licensing Competency • Engage and drive Wave Launch activities

THANK YOU!! FOR ALL THAT YOU DO EVERY DAY TO MAKE OUR CUSTOMERS HAPPY THANK YOU!! FOR ALL THAT YOU DO EVERY DAY TO MAKE OUR CUSTOMERS HAPPY AND TO HELP MICROSOFT TO GROW