© 2015 N-able by SolarWinds. All rights reserved.© 2015 N-able by SolarWinds. All rights reserved.
The Office 365® OpportunityIs it right for MSPs?
© 2015 N-able by SolarWinds. All rights reserved.
Presented By
Ali MahmoudProduct Marketing
@alimahmoud_
© 2015 N-able by SolarWinds. All rights reserved.
Microsoft 2013-2014 Revenue (USD)
Product 2014 2013 % change
Microsoft Office system $24,323 $22,995 +5.8%
Windows PC operating system 16,856 17,529 -4.0
Server products and tools 17,055 15,408 +10.7
Xbox Platform 8,643 7,100 +21.7
Consulting and support 4,767 4,372 +9.0
Advertising 4,016 3,387 +18.6
24bn - http://www.microsoft.com/investor/reports/ar14/index.html
© 2015 N-able by SolarWinds. All rights reserved.
Office vs Windows
24.3
16.9
10
15
20
25
Office Windows
Bill
ion
s
24bn - http://www.microsoft.com/investor/reports/ar14/index.html
© 2015 N-able by SolarWinds. All rights reserved.
Office User Base
45 million iPad® downloads
7.1 million Office 365 Home & Pro
1.2 Billion Office UsersRoughly 1 in 6 people on the planet
Users - http://news.microsoft.com/bythenumbers/index.html
© 2015 N-able by SolarWinds. All rights reserved.
Office Users vs Revenue
0.6% of User Base
O365 7.1mn users
Total office users = 1.2 Bn Total office revenue = $24.3 Bn
O365 $2.5 billion USD
10% of Revenue
Users - http://news.microsoft.com/bythenumbers/index.html24bn - http://www.microsoft.com/investor/reports/ar14/index.html2.5 - http://www.channelpartnersonline.com/news/2014/05/partner-enthusiasm-for-office-365-is-rising.aspx)
© 2015 N-able by SolarWinds. All rights reserved.
MSP challenges
1. Microsoft going direct to consumer
2. Low license margin
3. Limited project based revenue
© 2015 N-able by SolarWinds. All rights reserved.
1. Microsoft selling directWhole O365 strategy is to get straight
to the consumer/business
430,000 partners(160mn mutual customers)
50,000Partners selling O365
129%YoY licenses sold by partners
© 2015 N-able by SolarWinds. All rights reserved.
2. Low license margin
MSP cannot mark up or customer goes direct
On-Prem Server Office 365
Consider a hybrid option
© 2015 N-able by SolarWinds. All rights reserved.
3. Limited project based revenue
Microsoft’s migration tools are getting better
One-time revenue
Managed Services
35%
Consulting & customization
66%
Migration & integration
46%
© 2015 N-able by SolarWinds. All rights reserved.
Your core business is still your core business
• A la carte managed offerings are higher revenue and more profitable
• Proactive and fully managed customers are still your strongest source of profitable recurring revenue and high business valuation
© 2015 N-able by SolarWinds. All rights reserved.
Automation Manager
Help Desk Manager
ReportManager
Remote Control
Manager
SecurityManager
Backup Manager
Patch Manager
Audit Manager
Mobile Manager
N-central RMMAn MSP’s complete toolkit
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Remote Management Made Easy
www.n-able.com
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