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Speaker Title Company

Making Money & Building a Business U sing Office 365 . Speaker Title Company. Today’s o bjectives. Choose the business model that fits your needs Review of the Office 365 business models offered today . Discover the opportunities with selling the cloud

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Speaker Title Company

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  1. Making Money & Building a Business Using Office 365 Speaker Title Company

  2. Today’s objectives Choose the business model that fits your needs Review of the Office 365 business models offered today Discover the opportunities with selling the cloud Partner economics in selling Office 365 to SMBs Build a strong Office 365 business Best practices for selling the cloud to the SMB segment

  3. Today’s objectives Choose the business model that fits your needs Review of the Office 365 business models offered today Discover the opportunities with selling the cloud Partner economics in selling Office 365 to SMBs Build a strong Office 365 business Best practices for selling the cloud to the SMB segment

  4. Choose the right model for you Own the customer billing Sell as you do today Increased upsell and attach opportunities Office 365 Open & FPP Little to no capital costs required Fixed payment structure • More predictable revenue stream Advisor

  5. More choice and flexibility for your customers Expansion of the Open Channel • Office 365 ProPlus • Standalone SKUs • (Exchange Online Plan 1) Enterprise SKUs • (E1 & E3) • Government & Academic SKUs

  6. Power of choice by SKU and by channel Key Customer Segments 11 - 250 Student Home / K-12 1-10 Advanced IT Needs Office 365 SKUs Office 365 University1 Office 365 Home Premium Office 365 Small Business Premium Office 365 Midsize Business Office 365 Enterprise & Government Advisor    Open   Though Distribution   FPP  Note: 1For academic customers, the following SKUs will be available in the Open License, and OVS-ES program instead of Office 365 University: Office 365 ProPlus for Students, Office 365 ProPlus for Faculty, Office 365 Plan A3 for Student, Office 365 Plan A3 for Faculty

  7. Today’s objectives Choose the business model that fits your needs Review of the Office 365 business models offered today Discover the opportunities with selling the cloud Partner economics in selling Office 365 to SMBs Build a strong Office 365 business Best practices for selling the cloud to the SMB segment

  8. The path of opportunity for Office 365 High $40+ / seat Add-on Projects and Solutions $50-80 / seat Managed Services and Support • Expansion • Customization • LOB integration • IT infrastructure design • IT planning • IT training • Upgrades & desktop remediation $40-120 / seat Revenue Deployment & Migration Services • Help desk (i.e. Tier 1 / Tier 2 support) • New user set-up • Updates • End-user training $48-240 / seat Office 365 Licensing Revenue • Assessment / planning • Migration of data • Establishment of service = Recurring Low Baseline Good Better Best Structure of Office 365 Deal Note: Estimates are based on partner interviews so actual numbers will differ from market to market All revenue streams are re-occurring except for “Deployment and Migration Services”, which is a one-time event

  9. Office 365 and the cloud lead to attractive deals $9,250 $5,300 $4,000 U.S. Dollars $4,000 $10,800 = Recurring Note: Estimates use Office 365 Midsize Business SKU and are based on partner interviews so actual numbers will differ from market to market

  10. What opportunities exist and why are they attractive? Office 365 Licensing Revenue Deployment & Migration Services Managed Services and Support Add-on Projects and Solutions Baseline Good Better Best Structure of Office 365 Deal Note: Estimates are based on partner interviews so actual numbers will differ from market to market All revenue streams are re-occurring except for “Deployment and Migration Services”, which is a one-time event

  11. Bigger deals driven by easier upsell/cross-sell Other Products and Services Office

  12. Increased margins by leveraging reusable offerings Standardized Services that Partners Sell Successfully Today 3rd Party Migration Tools Sharepoint Templates End User Set-up and Training Tier 1 Support Support with a centralized set of employees Able to scale resulting in improved profitability over time Can easily address most problems remotely Most SMBs will not have familiarity with some of the workloads in Office 365 Most of this baseline information will be the same for all SMB customers Takes the complexity out of the sale so you can focus on selling rather than deploying Can resell these tools to customers for a healthy margin Don’t need technical engineers to complete the process Build once and then resell the IP to other customers Many partners focus on templates for certain industries Can sometimes lead to follow-up work around customizing it to fit a certain need / purpose

  13. Today’s objectives Choose the business model that fits your needs Review of the Office 365 business models offered today Discover the opportunities with selling the cloud Partner economics in selling Office 365 to SMBs Build a strong Office 365 business Best practices for selling the cloud to the SMB segment

  14. How have high-performing partners found success? Used a low-touch, centralized sales and service model Created simple packaged offerings that are easy to sell Changed conversation to focus on the capabilities of cloud

  15. Used a low-touch, centralized sales & service model Incubate the Office 365 sales team from mainline sales team Leverage tele sales and support with smaller customers Invest in digital marketing to drive demand generation Take advantage of remote service delivery

  16. Created simple packaged offerings that are easy to sell Example: Office 365 Licensing Revenue Managed Services and Support Add-on Projects and Solutions Simple “Per User” Price + + = $180 / user $65 / user $65 / user $310 / user / year • Explain the cost in the context of something that the customer can understand • Highlight the simplicity and cost predictability that moving to the cloud provides • Discuss the relative up-front cost of replicating the same functionality with an on-premise solution $0.84 User Cost / Day $25.83 User Cost / Month $18.6K Cost in 60 User Company 24% of a Starbucks 37% of an avg. cell phone bill 22% Cost of an IT Pro Note: Estimates are based on partner interviews so actual numbers will differ from market to market

  17. Changed conversation to focus on the capabilities of cloud Target Audience “The Pitch” Business Decision Maker Be More Productive Anywhere Work Better Together Look More Professional Simplify, But Stay in Control Get More for Your Investment

  18. Next steps Learn more about building a successful cloud business (IDC Research & Office 365 White Paper) Join the Cloud Essentials / Cloud Accelerate programs In the next 60 days, attach at least one seat of Office 365 to an existing Open/FPP customer Don’t forget to join the Office 365 Yammer group! www.yammer.com/office365partners

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