Menu
Microsoft unveils online services compensation deal for partners

Microsoft unveils online services compensation deal for partners

Microsoft has revealed pricing and a partner compensation model for some of its new online business productivity offerings.

At its Worldwide Partner Conference in Houston, Texas, this month, the software giant reiterated its commitment to move towards offering not only on-premise software, but also a combination of software and hosted services.

A key part of this strategy is a new hosted business productivity suite that includes Exchange Online, Office SharePoint Online, Office Communications Online and Office Live Meeting, which it aims to launch in the US early next year.

However, the suite is not expected to be available in New Zealand until the middle of next year.

In the US it will sell for US$15 a user a month, while each component will also be available individually.

Exchange Online will cost $10 a user, a month; SharePoint Online for $7.25 a user, a month; Office Communications Online for $2.50 a user, a month; and Office Live Meeting Online for $4.50 a user, a month.

Partners who offer the services will earn 12 percent of the value of the contract in the first year and a recurring revenue stream of six percent every year for the life of the contract.

Stephen Elop, president of the Microsoft business division, who made the announcements during the opening keynote address of the conference, says this compensation model makes it possible for partners to build an ongoing annuity stream from their customer base over time.

“The strength of this approach is that any partner can sign up and participate in the software-plus-services transformation. Our vision is that everything [partners] do today with our server products, [they] will ultimately be able to do in this software-plus-services world.”

However, Elop says the real opportunity for partners lie in the differentiated services they can provide on top of the online offerings.

He says software-plus-services offers a great business opportunity for Microsoft and its partners, citing figures from research IDC predicting the web-based application will grow 32 percent a year until to 2011, resulting in a US$21-billion market.

At the same time, he says Gartner is estimating that 25 percent of all new business application deployments in 2011 will be in a web-based environment.

“There is a business opportunity here and Microsoft will continue to make it real for ourselves, our partners and our customers.”

In addition, Microsoft will also introduce two offerings early next year that provide access to email and internal company websites, for employees who do not necessarily sit in front of PCs. Exchange Online Deskless Worker and SharePoint Online Deskless Worker will be available for $3 a user, a month.

Microsoft also announced a programme to help partners get started on the new offerings, called Quickstart for Microsoft Online Services.

Local resellers are able to register for the programme now, which will give them a head start when the online services are available here, says Microsoft New Zealand partner group manager Nick Fletcher. “A number of New Zealand partners have registered already.”


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Featured

Slideshows

Meet the leading female front runners of the Kiwi channel

Meet the leading female front runners of the Kiwi channel

Reseller News honoured the leading female front runners of the New Zealand channel at the 2018 Women in ICT Awards (WIICTA) in Auckland. The awards honoured standout individuals across seven categories, spanning Entrepreneur; Innovation; Rising Star; Shining Star; Community; Technical and Achievement.

Meet the leading female front runners of the Kiwi channel
Meet the top performing customer-centric Microsoft channel partners

Meet the top performing customer-centric Microsoft channel partners

Microsoft honoured leading partners across the channel following a year of customer innovation and market growth in New Zealand. The 2018 Microsoft Partner Awards recognised excellence within the context of the end-user, spanning a host of emerging and established providers.

Meet the top performing customer-centric Microsoft channel partners
Reseller News launches new-look Awards at 2018 Judges’ Lunch

Reseller News launches new-look Awards at 2018 Judges’ Lunch

Introducing the Reseller News Innovation Awards, launched to the channel at the 2018 Judges’ Lunch in Auckland. With more than 70 judges now part of the voting panel, the new-look awards will reflect the changing dynamics of the channel, recognising excellence across customer value and innovation - spanning start-ups, partners, distributors and vendors.

Reseller News launches new-look Awards at 2018 Judges’ Lunch
Show Comments