Let’s Break New Ground Together.
Channel Incentives
Commercial Distributor
Channel Incentives
Mike Haines – Director WPG
Mark Gilleece – CI PM EMEA
Christian Laustsen – ALSO
Channel
Incentives
Channel
Incentives
Microsoft | EMEA Channel Partner Conference 2014
Mapping Design to Partner Incentive Principles
Channel Incentives
Market Opportunities
Microsoft Sales
Priorities
Field sales targets
Enable cross/upsell
Align to MPN competency attainment
Market
Differences
Product Market
Share
Drive business in different geography types
Drive market share growth
Drive Devices and Services revenue
Focused on sales & transactions
Partner Led Sales
Global components and local accelerators
Differentiate by levels for excellence
Balance Simplicity
and Performance
Simplest mechanics to increase focus
Manage to a set of performance metrics
Channel Incentives
Microsoft | EMEA Channel Partner Conference 2014
FY14 Distribution Incentive Strategy
Channel Incentives
Drive focus
Increase Distributor focus on Microsoft line of
business by improving Distributor profitability with
Microsoft, especially for strategic products
including Office 365.
Enhance differentiation
Increase effective Distribution marketing, breadth,
and strategic product incentives to increase
competitive differentiation between Distributors.
Simplify engagement
Simplify Distributor incentive programs through
global management and single platform to
improve partner engagement through program
simplicity.
Channel Incentives
Microsoft | EMEA Channel Partner Conference 2014
FY14 Incentive Earnings for Distributors
Sell O365 Open
Open Annuity
O365 Cash Back
Solution
Workloads
10 %
8%+
Sell O365 direct
6%+
20 % + 1
%
Channel Incentives
SPLA
Surface
3%
Channel Developer
8%
8%+1%
Channel Incentives
Microsoft | EMEA Channel Partner Conference 2014
Annuity Model Generates More Revenue & MarginChannel Incentives
Six Year Impact w/ Refresh
Office Std.
Cumulative Revenue: One User
$738
Cumulative Revenue: 100 Users
$73,800
$108,000
2.9%
8%
$2,140
$8,640
Channel Incentive (Margin)
Cumulative Margin – 100 users
Channel Incentive (Margin) in WE
Cumulative Margin – 100 users
Office 365
$1,080
2.9%
2% Y1, 8%, 20% Cash Back
$2,140
$9,405
46% More Revenue
4X as much Margin
$180
$180
$180
$369
$180
$369
$180
$180
Revenue
(per user)
Incentive
(per user)
Year 1
Year 2
Year 3
Channel Incentives
Year 4
Year 5
Year 6
Microsoft | EMEA Channel Partner Conference 2014
FY15 Commercial Distributor Channel Incentives Design Overview
Strategic Focus and Design Proposals
Channel Incentives
Strategy Evolution
Cloud Acceleration
Solutions @ Scale
Reach & Open Renewal Focus
Key FY15 Design Proposals
Increase Year-over-Year SMB CI budget
Maintain Global Framework
Increase Cloud Incentives
Incent more Resellers for Cloud Revenue
Best Premise Rates for Growth & Incubation in Annuity
Enhance DISTI Solution Accelerator for Cloud
Align Accelerators to Business Strategy
Channel Incentives
Microsoft | EMEA Channel Partner Conference 2014
Aim of this session
Channel Incentives
Demonstrate Microsoft
Operations commitment to
driving simplification,
efficiency and responsiveness
to achieve greater partner
productivity, profitability and
customer satisfaction
Channel Incentives
Microsoft | EMEA Channel Partner Conference 2014
Let’s Break New Ground Together in…
Simplified Reporting
CHIP Statement Availability
Channel Incentives
Enhanced Support
Channel Incentives
Microsoft | EMEA Channel Partner Conference 2014
Simplified Reporting | Current Situation
Channel Incentives
• Creating incentive reports on CHIP
is time consuming
• 6+ clicks required per report
• Process must be repeated for each
Performance Goal (incentive)
Simplified Reporting
• 20 incentives x 3 mins per goal = 1 hour
52 (weeks) x 1 hour = 52 hours / 8 hours = 6.5 days per year!
Channel Incentives
Microsoft | EMEA Channel Partner Conference 2014
Simplified Reporting | Opportunity
Channel Incentives
• Reduce # of screen clicks by 50%
• Choose multiple Performance Goals (incentive)
in a single request
Simplified Reporting
• Reports cached for quicker retrieval
• Reduce time from 1 hr to 3 mins
52 (weeks) x 3 mins = 2.6 hours per year!Channel
Incentives
Microsoft | EMEA Channel Partner Conference 2014
Simplified Reporting | Current Situation
Channel Incentives
Channel Incentives
Microsoft | EMEA Channel Partner Conference 2014
Simplified Reporting | Results
Channel Incentives
• Simplified Reporting is now available on CHIP
• Training video is now available on the
Readiness App
Simplified Reporting
Channel Incentives
Microsoft | EMEA Channel Partner Conference 2014
CHIP Statement Availability | Current Situation
Channel Incentives
• CHIP statements are offline for too long!
• You are “flying blind” without visibility to your
CHIP statements
CHIP Statement
Availability
• Current program set-up is complex & time
consuming
Channel Incentives
Microsoft | EMEA Channel Partner Conference 2014
CHIP Statement Availability | Opportunity
Channel Incentives
• Immediate investment in CHIP
• Simplify overall set-up process
CHIP Statement
Availability
• Reduce amount of CHIP downtime - starting
in H1 FY15 (July)
Channel Incentives
Microsoft | EMEA Channel Partner Conference 2014
CHIP Statement Availability | Next Steps & Key Actions To Be Taken
Channel Incentives
• Invest in CHIP during Q4 (April – June)
• Redesign & simplify the set-up process during
Q4 (April – June)
CHIP Statement
Availability
• Ready for H1 FY15 set-up (July)
Channel Incentives
Microsoft | EMEA Channel Partner Conference 2014
Enhanced Support | Current Situation & Opportunity
Channel Incentives
• CLT Query Support
• 72 hours Query SLA
Opportunity
• Live agent “Chat” Tool
Enhanced Support
• 24 hour Query SLA
Support
Channel Incentives
Microsoft | EMEA Channel Partner Conference 2014
Enhanced Support | Next Steps
Channel Incentives
• Live agent “Chat” Tool
- available in April
• 24 hour SLA
- available now
Enhanced Support
Support
Channel Incentives
Microsoft | EMEA Channel Partner Conference 2014
Partner Perspective
Channel Incentives
• Simplified Reporting
- Reporting was not something I used – it is too time consuming
- New reporting feature is simple and fast
Simplified Reporting
• CHIP Statement Availability
- Need greater access to incentive statements – critical to run my business
- Faster set-up times will really help
CHIP Statement
Availability
• Enhanced Support
- Live Chat will address my simple queries
- CLT for more complex queries – faster responses
Channel Incentives
Enhanced Support
Microsoft | EMEA Channel Partner Conference 2014
Summary | Where Are We Going?
Simplified Reporting
From... 1 hour reports
CHIP Statement
Availability
Channel Incentives
Enhanced Support
To... 3 minute reports
From... Reduced statement availability To... Greater statement availability
From... CLT Query Support &
72 hour SLA
To... Live agent Chat &
Channel
24
hour SLA Incentives
Microsoft | EMEA Channel Partner Conference 2014
Channel Incentives
Thank you.
Channel Incentives Clinic @ Room 8
Channel Incentives Future State Booth @ Coffee Area
Channel Incentives
© 2014 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista 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
presentations. 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.
Microsoft | EMEA Channel Partner Conference 2014