Microsoft Online ServicesEmbracing New Opportunities

Priya O’SheaCloud Channel Development

November 2013

Introducing the new Office

Cloud Services Perpetual

Always up-to-dateSame brand across

segments

2013 versionse.g. Home and Business

2013

New Office 2013 Versions Lineup

Perpetual rights on one PC or Mac at any one timeApps vary by suite

Cloud connected with SkyDriveSeparate suites for Windows PC or Mac users

Latest productivity services running in a Microsoft Data Centre

Exchange Online

SharePoint Online

LyncOnline

Office 365

ProPlus

New Office 365 and Available Options

*Office Professional apps for Home Premium and University; Small Business Premium also includes Lync, InfoPath

One subscription for all your devicesAll of the Office apps*

Premium services, always up to dateEach suite is for Windows PC and Mac users

together with Office

Business Products Differ from Consumer

Office 365 University

Office 365 Home

Premium

Office 365 Small

Business Premium

Office 365 Midsize

Business

Office 365 Enterprise

(E3)

4 years Annual Annual Annual Annual

2 per user5 per

household5 per user 5 per user 5 per user

2 per user5 per

household2 per user 2 per user 2 per user

£59.99 £7.99 / £79.99 £8.40 / £100.80 £9.80 monthly£15.00

monthly

+20GB +20GB Plan 1(+SkyDrive Pro)

Plan 1(+SkyDrive Pro)

Plan 2(+SkyDrive Pro)

N/A N/A Plan 1 Plan 1 Plan 2

60 mins/month 60 mins/month Plan 2 Plan 2 Plan 2

Business servicesConsumer services

NB: Office 365 Enterprise (E1) contains Exchange/SharePoint Plan 1 and Lync Plan 2 Services Only

The Reseller Opportunity for the New OfficeUnderstand the revenue and margin opportunities and services attach for Microsoft Office

Embracing New Opportunities

An Overview of the New OfficeGet to know the basics about the new release of Office including Office 365

Current Market DynamicsReview where the market is at and where it is heading in relation to the modern office

The Reseller Opportunity for the New OfficeUnderstand the revenue and margin opportunities and services attach for Microsoft OfficeAn Overview of the New OfficeGet to know the basics about the new release of Office including Office 365

Current Market DynamicsReview where the market is at and where it is heading in relation to the modern office

Embracing New Opportunities

Industry Trends

DevicesDEVICESCloud Mobility

WORLDWIDE SMALL-MID SIZED BUSINESS IT SPENDING ESTIMATED AT

Source: IDC Worldwide SMB Predictions

BILLION .

95%USING AT LEAST ONE SELF-PURCHASED DEVICE FOR WORK.

OF WORKERS

REPORT

Source: Forrester Research Inc.,

71%REQUIRE TECHNOLOGY THAT ENABLES THEIR STAFF TO WORK ANYWHERE AT ANY TIME.

OF BUSINESS USERS

Source: Edge Strategies survey commissioned by Microsoft Corp

$542

InnovatorsEarly

AdaptorsEarly

MajorityLate

MajorityLaggards

Technology Adoption Curve

“Rogers’ Bell Curve - The technology adoption lifecycle is a sociological model developed

by Joe M. Bohlen, George M. Beal and Everett M. Rogers”

Market Saturation

InnovatorsEarly

AdaptorsEarly

MajorityLate

MajorityLaggards

Office 365 Adoption Today

“Rogers’ Bell Curve - The technology adoption lifecycle is a sociological model developed

by Joe M. Bohlen, George M. Beal and Everett M. Rogers”

Office 2013

Business Drivers

Small Business Server / Windows Server 2003 refresh

End of Support for XP and Office 2003PC Refresh

Business momentum

6.2 billion impressions globally

Advertising campaigns in more than 22 countries

70% UK Managed resellers selling O365

One of fastest growing offers in our history

The Reseller Opportunity for the New OfficeUnderstand the revenue and margin opportunities and services attach for Microsoft OfficeAn Overview of the New OfficeGet to know the basics about the new release of Office including Office 365

Current Market DynamicsReview where the market is at and where it is heading in relation to the modern office

Embracing New Opportunities

Value to Partners

Partners told us…• Meet customer expectations• Stay competitive• Faster solutions to their

customers • Engage Business decision

makers• Unlock new revenue

opportunities

Customers say…Implement a low touch centralised sales and service model

Separate practise to focus on O365

• Office as attach vs. leading with O365

• Different sales processes

Practise 1

Call Center sales

• SMBs open to buying remotely

Remote service delivery

• Less requirement for on site support.

Digital marketing

• Self educated prospects

Customers say…Acquire smaller customers in remote locations

O365 can be delivered and served remotely

• Expand your sales territory

Practise 2

Increase sales velocity

• Phone/online selling 1/10th of cost of traditional face to face sales.

Customers say…Sell annuity priced bundles

Fixed support contracts

• Support services at fixed price, rather than charging per hour

Practise 3

Partner of record support

• Billing, cloud support, understanding system status, updates

O365 on Open bundled offerings

• Annual payment including support, services, hardware….

“By standardising packages we avoid delays in negotiations and make it easier for our sales people to sell this”

Customers say…Target business decision makers for cloud services and devices opportunities

Engage BDMs

• 58% of new IT projects involve business roles

Practise 4

Why do BDMs care?

• More than just Office upgrade

Increase opportunities

• Move the conversation from fulfilment to business issues

Customers say…Expand the conversation to focus on selling cloud capability‘what can it do for you’

Enterprise class capabilities

• Technology that SMB customers couldn’t access before

Practise 5

Email for SMBs

• High reliability and functionality

No more upgrading

• O365 positioned as ‘last upgrade’

Office 365 partner business models

Little to no capital costs

required

Fixed payment structure

More predictable

revenue stream

Advisor

Own the customer

billing

Sell as you do today

Increased upsell and

attach opportunitiesOffice 365

Open & FPP

Office 365 Open and FPP

Increase upsell and attach

Own the billing relationship

Sell as you do today

Office 365 FPP Process

Purchase

Partner purchases Product Key via FPP

Acquire

End customer purchases Product Key from partner

Activate

End customer activates Product Key on office.com/setup365

Product Keys can be used for new accounts, additional seats, and renewals.

Office 365 Open Process

Purchase

Partner Purchases Product Keys from Distributor

Activate

Partner or Customer Redeems Product Key on office.com/setup365

Acquire

Partner or Customer Retrieves Digital Product Key through VLSC

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

Little to no capital costs required

Little to no startup costs

required

No inventorycosts

No infrastructure investment

neededWhy the Office 365 Advisor Model?

Office 365 Advisor Process

Purchase

Customer purchases direct from Microsoft

Activate

Customer aligns partner of record who receives advisor fee

Acquire

Customer pays via credit card or direct to Microsoft

Fixed payment structureIncentive Overview Baseline incentives

for initial sale and ongoing management

Tiered accelerator incentives based on annual seat counts

Cloud Accelerate7%

2500+

4% Recurring

12%Sell

4% Recurring

12%Sell

16%

23%

Cloud Essentials Cloud Accelerate Pay for

Performance

More predictable revenue stream

Year 6Year 5Year 4Year 2 Year 3

Variable Amount

(Paid Annually)

Variable Amount

(Paid Annually)

Variable Amount

(Paid Annually)

Variable Amount

(Paid Annually)

Variable Amount

(Paid Annually)

Offi

ce

(VL)

Offi

ce

36

5

(Open)

Year 1

Negotiated

Amount

Variable Amount

(Paid Annually)

Timing for Payments on Sales of Office 365

Negotiated

AmountNo payments until next refresh

Fixed Amount

(Paid Quarterly)

Fixed Amount

(Paid Quarterly)

Fixed Amount

(Paid Quarterly)

Fixed Amount

(Paid Quarterly)

Fixed Amount

(Paid Quarterly)O

ffice

3

65

(A

dvis

or) Fixed

Amount(Paid

Quarterly)

Variable Amount(Paid Annually)

Fixed Amount(Paid Quarterly)

Increases selling opportunities at renewal

Office

Office 365

Year 1

Renew

Year 2

Renew

Year 3

Renew

Year 4

Renew

Year 6Year 6

Renew

Office refresh

Year 5

Shift from being reactive to proactive

Allows for deeper customer relationships

Opportunity to attach & upgrade

1

2

3

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

The Reseller Opportunity for the New OfficeUnderstand the revenue and margin opportunities and services attach for Microsoft OfficeAn Overview of the New OfficeGet to know the basics about the new release of Office including Office 365

Current Market DynamicsReview where the market is at and where it is heading in relation to the modern office

Embracing New Opportunities

Power of Choice

Office 365 Small

Business Premium

Office 365 Enterprise &Government

Office 365 Midsize Business

Office 365 University

Office 365 Home

Premium

Target users 1-10 >25011 - 250ConsumerStudent

Consumer Services Commercial ServicesOffice Home & Business

2013

Office Professional Plus 2013

Office Standard 2013Office Home & Student

2013 & RT

Transforms Office into a personalized, always up to date service for consumers

Office 365 Home Premium

CUSTOMER PROFILE

Families and households with multiple devices

Non-commercial use

Office Client Subscription

Office client apps1-year subscription5 PCs/Macs + select mobile devices when available1

Household licenseInstall / Setup Telephone Support

Collaboration and Communication

SkyDrive storage +20GB60 Skype world minutes/month

1Smartphones and tablets added regularly. Availability of Office 365 apps varies by device.

Provides all the productivity tools a small business needs, including the full Office client

Office 365 Small Business Premium

CUSTOMER PROFILE

For small businesses with 1-10 users

Simple setup

No IT required

Office Client Subscription

Office client apps1-year subscription5 PCs/Macs + select mobile devices when available1

1-user license (25 user cap)24x7 Web, community, and basic telephone support

Email, Collaboration and Communication

Exchange, Lync, and SharePoint

1Smartphones and tablets added regularly. Availability of Office 365 apps varies by device.

A new offer designed specifically to address the end-user and IT needs of midmarket customers

Office 365 Midsize Business

CUSTOMER PROFILE

Generalist IT

Enterprise quality

Value Focused

Typically 10-250 users

Full email with Exchange Online Document sharing with SharePoint Online IM and virtual meetings with Lync Online

Admin Portal Active DirectoryPull deployment of Office Client

Office 365 ProPlusAlways up to date5 PCs/Macs + select mobile devices when available1

Email, Collaboration and Communication

1Smartphones and tablets added regularly. Availability of Office 365 apps varies by device.

Office 365 Enterprise • Range of offers by user

type

• Advanced admin tools

• Enterprise IT capabilities

Enterprise

Est. USD $180 / yr

Enterprise offers provide the greatest range of flexibility and control for customers with sophisticated needs Est. USD $180 / yr

Office 365 Enterprise

CUSTOMER PROF ILE

Sophisticated IT

Enterprise-grade features

Range of needs across users

Typically 250+ usersRange of offers to meet needs of different usersIncludes standalones, kiosk and Enterprise suites

Advanced Admin Portal

Active DirectoryPush deployment of Office Client Enable hybrid deployments

Enterprise Features Archiving and Legal HoldRights Management

Office 365 ProPlus

Business intelligenceRoaming and mobile access

Email, Collaboration and Communication

Stand-AlonesPlan Includes

Exchange

Exchange Online Kiosk 1 GB email, calendar

Exchange Online (Plan 1) 25 GB Email, calendar, personal archive, eDiscovery, AV/AS

Exchange Online (Plan 2)Unlimited storage, voicemail, advanced archiving, Data Loss Prevention, encryption, , site mailboxes

Exchange Online Protection Protection from spam, viruses, phishing and policy violations

Exchange Online Archiving Legal hold and compliance

SharePoint

SharePoint Online (Plan 1) Collaboration with sites, drag and drop, site mailboxes

SharePoint Online (Plan 2)Forms, Data visualization, Access/Excel/Visio Services, eDiscovery, Compliance, PowerView

SharePoint Online Storage Additional 1GB of storage

Lync

Lync Online (Plan 1) Instant messaging & presence, AV

Lync Online (Plan 2) Virtual Meetings

Lync Online (Plan 3) Enterprise Voice

Office

Office Web Apps with SharePoint Online (Plan 1)

Web Apps, collaboration with sites, fast search, drag and drop, site mailboxes

Office Web Apps with SharePoint Online (Plan 2)

Web Apps, Forms, Data visualization, Access/Excel/Visio Services, eDiscovery, Compliance, PowerView

Office 365 ProPlus Office subscription, PC/Mac, roaming, mobile rights

Existing SKU/FeatureNew SKUs/Features

New ServicesPlan Includes

Visio Visio Pro for Office 365Subscription version of the advanced diagramming software, including roaming access and click to run

Project

Project Pro for Office 365Subscription version of Project Professional client software with roaming access and click to run

Project OnlineOnline-only version of project server, delivering enterprise Project, Program and Portfolio Management

Project Online with Project Pro for Office 365

Subscription version of Project Professional client with online capabilities of Project Online

SharePoint Add-On

App Hosting for Office 365Additional app hosting resources for solutions provisioned in Microsoft’s hosting environment, sold per app per month

Four typical conversations when selling Office 365 Pitch:

Cloud vs. on-premisesOld server

Always up to dateNo upfront costPredictable subscription

Spam/malware protectionOne admin consoleRemote data wipe

More for your investment

Simplify, stay in control

Profile:• Running an old email server• Worried about security and cost• Open to the cloud, but not

familiar

Probing questions:• Are server costs preventing an

upgrade?• How often is email down?• How much time is spent

managing servers?

Current Challenges:• Budget is affecting upgrade

decisions• Reliability and availability issues • Overtaxed IT staff is de-

prioritizing strategic work

Link to “Office 365 Midsize Business Tele Discussion Guide”

Pitch:

Turn-key productivityGrowing needs

One admin consoleEasy to add usersIntegrated services

Effective meetingsEasy to share filesFollow sites/docs

Simplify, with control

Work better together

Best investmentNo upfront costAlways up to datePredictable cost

Profile:• Fast-growing with multiple offices• Limited IT staff• Very strong advocate of the cloud

Probing questions:• Is the current infrastructure

scalable?• Are there tools in place for

collaboration?• How much time is spent managing

collaboration tools?

Current Challenges:• Want to deliver latest capabilities

easily and quickly• Lack of modern collaboration tools• Limited IT budget

Four typical conversations when selling Office 365

Link to “Office 365 Midsize Business Tele Discussion Guide”

Pitch:

Microsoft cloud / competeHosted mail

Reliability & securityAutomatic backupIntegrated services

Best-in-class toolsFamiliar experienceUse your own domain

Simplify, stay in control

Look more professionalProfile:

• Using hosted or web-based email• Self-service IT, prefer simpler

solutions• Open to the cloud

Probing questions:• How protected is your data?• How reliable is your hosted mail?• Are your collaboration tools easy

to use?

Current Challenges:• Concerned about data protection• Issues with unplanned downtime • Users frustrated with unfamiliar

and multiple dis-connected tools

Four typical conversations when selling Office 365

Link to “Office 365 Midsize Business Tele Discussion Guide”

Pitch:

The new OfficeOld Office

Multiple devicesRecent documentsOffice on demand

Business-class mailEffective meetingsEasy to share files

Be productive anywhere

Work together Best investmentAlways up to dateNo upfront costPredictable cost

Profile:• Using older versions of Office• Traditional view of IT, only upgrade

when needed

Probing questions:• What is the biggest obstacle in

upgrading Office client?• How do you currently support your

mobile workers?• Are there tools in place for

collaboration?

Current Challenges:• Budget is affecting upgrade decisions• Limited support for mobile workers• Users frustrated with limited

capabilities

Four typical conversations when selling Office 365

Link to “Office 365 Midsize Business Tele Discussion Guide”

Next steps

Understand Incentives and align with Ingram

Start planning your market strategy

Enroll for Online Services and Internal Use Rights

© 2013 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Office ProPlus Differs Slightly by SKU

Office 365 University

Office 365 Home

Premium

Office 365 Small

Business Premium

Office 365 Midsize

Business

Office 365 Enterprise

(E3)

Professional applications in both consumer and business SKUs

Lync client in business SKUs