Selling Online Services Thomas Kablau Licensing Marketing Manager Frederique Dennison Product Manager Philip Meyer Regional Hosting Specialist Communications Sector Oscar Trimboli Product Manager
Online Services? • Gaining momentum fast • “Central pillar of the company’s business model… make the organization easier, quicker and more efficient for customers and vendors alike…” • “… fictional Online Services that are specifically mentioned or seen in works of fiction, rather than fictional websites that exist in reality are still regarded as Online Services. ”
Online? • Under the control of a central computer, as in a process or an experiment. – Connected to a computer or computer network. – Accessible via a computer or computer network: an online database. – In progress; ongoing: online editorial projects.
Services? • To make fit for use; adjust, repair, or maintain: service a car. • To provide services to. To make interest payments on (a debt). • Slang. To have sex with.
Agenda • Value Proposition • Software As a Service Opportunity From a Partner Hosted Perspective • Current Licensing Opportunities • Summary • Q&A
Dynamics Conference Software Delivery Options Live Meeting Server Navision Axapta MS CRM Live Antigen Desktop Navision Axapta MS CRM Antigen EHS Windows Server System HMC Wb. H Office Live Office Windows Live Windows On Premise Partner Hosted Microsoft Hosted
Value Proposition Frederique Dennison Email fdennis@microsoft. com Telephone +61298702436
Opportunity - Software as a Service Market Worldwide spending on Saa. S increased 39% from 2003 to 2004 IDC predicts worldwide spending on Saa. S will reach $10. 7 B in 2009 5 - Year 21% CAGR Source IDC: Worldwide and U. S. Software as a Service 2005 -200 Forecast and Analysis: Adoption for the Alternative Delivery Mode Continues, IDC #33120, March 2005
Opportunity - Adoption Status 79 % Now purchasing and/or reviewing Saa. S offering Software upgrade triggering 60 % respondents to purchase and review Saa. S Need for a major software upgrade Drive to reduce IT costs Increase employee productivity/efficiency Advice from your peers (% Respondents) Request by your senior management 0 Source: IDC, Software on Demand's Impact on the Software Industry: Transformation, Extinction, or Rebirth? , #33558, July 2005 10 20 30 40 (% Respondents) 50 60 70
Antigen E-mail and Collaboration Server Live Security Share. Point Communications Server ISA Server Collaboration SMTP Server Exchange Server Internet Users Edge Viruses Worms Spam E-mail Viruses Worms Inapp. Content Microsoft Operations Manager Antigen MP Management
The Software As a Service Opportunity From a Partner Hosted Perspective Philip Meyer Regional Hosting Specialist Communications Sector Microsoft Australia
Agenda • Software As a Service (Saa. S) Opportunity • Microsoft’s Software and Services – Licensing – Guidance – Web-based Hosting for Applications Platform and Tools – Support and Community • Resources • Questions
Saa. S impacts the entire consumption cycle, in particular in the L. O. B. application space Purchase Deployment End-Use Management From: Cap. Ex From: Customization From: Over served From: Reliance on internal IT To: Op. Ex Try before you buy To: Configuration To: Under served, but easier to use To: SLAs
From the Provider’s Perspective Subscription (monthly, for example, Salesforce. com) Usage Based Pricing (Cell phone limited allyou-can-eat) Transaction Based Pricing (success-based, for example, Pay. Pal) Ad-Based Revenue (success-based, Pay per click, for example, Ad. Center) Two recurring questions (no clear answers yet): – How do I compensate my sales people? – How does Saa. S impact contracts, liabilities, and SLAs?
Saa. S and The Long Tail Dozens of markets of millions or millions of markets of dozens? $ / Customer Your Large Customers What if you lower the costs of consumption (that is, lower barrier to entry) and you also lower cost of operations? Your Typical Customers (Currently) Your “non-addressable” Customers New addressable market >> current market # of Customers
Winning Software + Services with Microsoft Support and Community User Experience Licensing Software + Services Guidance Platform and Tools
Licensing Service Provider License Agreement (SPLA) – No Up-Front Cost, No Commitment – Pay for What You Use – Two Model: Per User or Per CPU – Rights to Upgrade
Licensing: What’s New Service Provider License Agreement (SPLA) – SPLA to ISVs – Customer Evaluation Extended – Cold-Disaster Recovery Grant – SPLA Feedback Project
“On the first day we ran MOM, we found 33 critical events that we hadn’t even known about. We had simply never monitored them before. ” Chris Munoz, Vice President Hosting Services, Vertafore Lowers their TCO with Microsoft Solution § Server Build § Server Purposing Mod § Event Monitoring § Monitoring and Reporting 9 new servers/month 111 min /server § 70 events — 8 consoles § Customer complains § Patch/Updates § 28 hrs/month § Update Management § 7 X Improvement Multiple Concurrent Builds 15 min /server § First to Know- 30 X Faster Resolution 9000 events 1 console § 4 X Improvement 7 hours /month
video
Guidance Application Architecture Hosting Infrastructure
Platform and Tools Solution for Windows-based Hosting for Applications Version 1. 0 Platform, tools, and best practices to enable applications for delivery as a service
Windows-based Hosting for Applications Microsoft Solution for Windowsbased Hosting for Applications Version 1. 0 – Target Audience • ISVs self-hosting applications • Application hosting Service Providers – Key Benefits • Faster time-to-market • Lower Total Cost of Ownership (TCO) • Simplify application and infrastructure management • Reference and Best Practices (App Hosting 101) Guidance, Best Practices, Sample Code • Active Directory® • Update Services • Monitoring Management Platform • Reporting • Provisioning • Automation
Windows-based Hosting for Applications Guidance, Best Practices, Sample Code • Active Directory® • Update Services • Monitoring Management Platform • Reporting • Provisioning • Automation • Application hosting specific guidance • Step-by-step installation guide • Guide for creating an application-specific management pack and reporting • Automation of routine processes and tasks • Delegate administration • Sample code, control panel, SDK
“The Microsoft solution enabled Made 2 Manage Systems to develop a hosted offering with a minimum of risk and the potential for a strong return on investment. ” Jeff Tognoni CEO Made 2 Manage offers a Hosted ERP using Microsoft Technologies for Provisioning and Monitoring § Customer needs advance features but an onpremises solution is cost prohibitive § Need to deliver hosted offer in a multitenant environment to take advantage of cost savings of scale and providing a secure offering § Create a hosted offer with the ERP product § With Microsoft Solution for Windows-based Hosting for Applications Version 1. 0 § Quickly enable hosted offer without changing the application itself § Automate complex provisioning steps to get consistency, security, and efficiency 7
Exchange Services: Providing Choice of Messaging Platform On-premise Server OR Hosted by Service Providers Complementary Messaging Management and Security Services • • Hosted Filtering Archiving Encryption Continuity
How We Engage With Partners • Resellers (LARs, VARs, Distributors) – EA, Select, Open Value, Campus and School. – Service configured by the customer – Microsoft support • Hosted Service Providers – License through SPLA. – Partners configure services on behalf of the customer – Partners provide Tier 1, Microsoft Tier 2, 3, and 4
Support and Community • • Microsoft Partner Program Market Development Training Support 10
Resources • Hosted ISV Landing Page (microsoft. com/serviceproviders/applicationhosting ) – – – Service Provider License Agreement (SPLA) information Solution documentation and bits Case studies • Solution Demo (http: //www. solutiondemo. net) • ISV Hosting Starter Kit (microsoft. com/hosting) • Hosting Community – – – – Self-guided, online demo Videos on advanced topics about hosting Components of the Windows-based Hosting Solution Business and technical overview White paper and case studies Technical assistance from community experts Referral program (hostedisv@microsoft. com) Online Windows Hosting Forum (http: //www. microsoft. com/hostingforums/)
Resources to Get Started • Invest in Microsoft Platform for Hosted Applications • Engage with Microsoft to Develop Application Hosting Offerings • Get started at http: //www. microsoft. com/ serviceproviders/solutions/ applicationhosting. mspx
Current Licensing Opportunities Oscar Trimboli Unified Communications Group Email oscartr@microsoft. com Telephone +61298702075
CALs by Functionality Communications Server 2007 Standard CAL Communications Server 2007 Enterprise CAL IM/Presence Conferencing • Rich presence • Personal information manager integration (Address book synchronization and search, Calendar, OOF message) • Enhanced Enterprise IM including Group IM • Peer to peer video collaboration • Peer to peer data collaboration • Multiparty collaboration (data, video, IP voice in support of conferencing) Communications Server 2007 “Call Management” CAL Voice & Call Management • Voice media on the Softphone • Advanced call routing • Ad-hoc multiparty voice • Remote Call Control (i. e. former Telephony CAL)
Office Live Meeting 2007 Addresses Core Meeting Scenarios Segment SMB Scenario Individual or Department Specialized Meetings Formal Meetings Core Functionality EPG Org-Wide Deployment Individual or Department Events & line of business-specific meetings – tend to be very large, external, structured, and scheduled Professional Edition Ex: Training; marketing web seminar Org-Wide Deployment NA “High Stakes” meetings – could be any size but tend to be medium sized, external, structured, or scheduled Ex: Customer presentation; v-team working meeting Standard Edition Informal Collaboration “Low Stakes” meetings – tend to be small, short, internal, or ad-hoc Ex: Impromptu discussion of document with colleague • Professional Edition: • 250 Meeting Capacity • Registration • Breakout Rooms • Testing • Other Training & Events features • Plus Standard Edition features • Standard Edition • 25 Meeting Capacity • Vo. IP • Video • Application Sharing • Other collaboration features
Server and Service Conferencing Bundle EPG w/ OCS Enterprise CAL Individual & Department Specialized Meetings Formal Meetings Informal Collabor. Org-Wide Deployment Professional Edition Low-Priced Service “Hosting Fee” Attach to Server Bundled SKU that includes both OCS Enterprise CAL and Live Meeting (service) Named User Target customers: Larger organizations worried about deployment Organizations that need crossplatform support OCS w/ Enterprise CAL* Smaller organization or companies with small population of users (departments) that need external meetings will use Live Meeting service at regular prices
FY 07 RTC Promo vs. IC Promo • RTC Promo operationally simpler given WWLP feedback (SKU based ordering) – Desktop penetration similar to IC promo expanding the low end down to min of 500 FY 06 – IC Promo FY 07 – RTC Promo $20* $34* LCS 2005 CAL (IM/Pres) L + SA ~$12 / user / yr Live Meeting Pro ~$235 / user / yr Live Meeting - Pro ~$235 / user / yr OCS 2007 Ent CAL (“conf CAL”) Rights L+SA $37/user/yr LCS Telephony CAL L+SA NEW: OCS 2007 “Call Management CAL” Rights L only $50/user/yr $34 price is Select D pricing for customers not buying Ent CAL Suite customers only need LM therefore price is lower. LM portion can be filled thru Telco or LAR channel FY 07 – Starting Oct’ 06
Promotion Guidelines • Available October 1, 2006 to June 15, 2007 – This promotion is not retroactive to contracts signed before October 1, 2006 • Minimums: • – 5, 000 CALs or 75% of org’s desktops which ever is less. – Minimum of 500 desktops Available to all Microsoft customers with Select or Enterprise Agreements worldwide Promotion does not apply to SPLA, HVMS or Academic Select License and Campus/School Agreement/CASA customers •
Summary • Great value proposition • Growing market • Options to suit all customers and Partner
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