LICENSING IN THE CLOUD
CHRIS SHARP, BRIAN HOLDER, KATHRYN
SADUCAS, ROSS DEMBECKI
Topics for Today
• What Is it?
• Why would I sell this?
• How is it licensed?
• CRM Online – update
• Questions
CHRIS SHARP
WHAT IS THE MICROSOFT CLOUD
OFFERING?
SaaS
PaaS
IaaS
ON PREMISE
HOSTED
PUBLIC
SaaS
Global Market Opportunity. The global
market opportunity for cloud-based
applications is US$17 billion in 2010,
growing at 24% CAGR (IDC)
PaaS
IaaS
ON PREMISE
HOSTED
PUBLIC
Recognising the Market Opportunity
Drivers
% of partners offering workload thru cloud
Web conferencing
Customer
demand – 48%
10%
20%
30%
40%
50%
Web Conferencing
Collaboration
– 46%
Annuity
revenue
opportunity
HR and Workforce Management
Collaborative Software
SCM
Content/document
management – 39%
Acceptance
of SaaS models
E-mail/Office and Personal
Productivity Software
Security Software
Content Management/Document
Management
Messagingof
and
productivity – 35%
Expansion
services
Business Intelligence
Industry-specific Application
2009
B2B/B2C Services
Business consulting
CRM and ERP – 37% and 26%
transformation
CRM
IaaS
IDC: Worldwide
IPED:
Can You See
Software
ThroughAsThe
a Service
Clouds?2010-2014
The Evolution
Forecast:
Of Technology
Software will
Delivery,
NeverMarch
Be the2010
Same, June 2010
2012
Accounting Utilities/Software/ERP
10%
PaaS
20%
30%
40%
SaaS
50%
Enterprise class software delivered via subscription
services hosted by Microsoft and sold with partners
Business Productivity Online Suite:
Web Apps
What is in BPOS
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25GB Mailbox
Sync-able, Searchable, Browse-able GAL
Access via Outlook; OWA & ActiveSync
Integrated Anti-Virus/Anti-Spam
Shared Calendars, Contacts & Tasks
Administer via Web and Active Directory
Optional Archive, Encryption & BES support
Over 200 other capabilities included
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Web Conference with 2 to 250 participants
VoIP Conference with 2 to 250 participants
Preload content or share on-the-fly
Share Single App or Complete Desktop
Stream Flash and Windows Media files
Virtual Breakout Rooms and Q&A kiosk
Active Speaker Switched Video Streams
Adaptive Codecs Optimize Bandwidth
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Teams Sites & Document Libraries
RSS Content Syndication
Audience Targeting
Group Tasks, Surveys and Calendars
Content Retention and Auditing Policies
Workflows & Business Process Forms
Integrated Web Parts
Platform Customization & Extensibility
Enhanced Presence
Instant Messaging
Group IM
AD-integrated Address Book Search
Distribution List Expansion for Group IM
Integrated peer-to-peer File Transfer
1:1 Audio and Video
Escalation to Live Meeting Conferences
BRIAN HOLDER
WHY WOULD I SELL THIS TO MY
CUSTOMERS?
Customer Choice
Choice
Customer Value Proposition
Finance
• Makes your costs
even and
predictable
• Reduces both
capex and opex
• Priced simply:
includes both
software and
hardware +
management
Process
• Business class
availability
backed by
Financially
backed SLAs
• Highly secure
operations – geo
redundant
datacentres
• Assurance of
world class
operational
standards
• 99.999% uptime
Technology
• Faster
deployment
• Better
productivity
through
‘anywhere access’
• Simplified
management
• Always upgraded
an on the latest
versions
People
• Providers users
with latest
productivity tools
• Enables IT staff
to focus on
adding business
value
• Helps meet the
challenges of
workforce
reduction
• Helps IT adapt to
mergers and
acquisitions
quickly
Partner and Customer Momentum (BPOS)
Doubled the Microsoft
Online Service customer
base in the last 3
months
Over 500 partners
growing each month
transacting &
earning ongoing
annuity
84% of Microsoft Online
Services seats sold have
partner attached
63% of all seats sold under
an EA
Over 85 partners
received investment
funds in Q4 to help close
deals
Australian Customer Wins
Microsoft Online Success in Australia
Decrease Cost & Rapid
Deployment
Reduce costs by 25%
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Deskless Worker improves
information to non IT users eg.
policies, training, OH&S
Provides email & collabortion
to remote employees
Users: 4500 Deskless
Sharepoint & BPOS
Simpler IT Management &
Upgrade to new technology
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Migrate off Lotus Notes onto
BPOS
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Novell Groupwise Migration
using Quest Migration tools
Migrate disparate systems to
one platform (result of mergers
and acquisitions)
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Using Windows Mobiles to
access email on the road
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Provide Blackberry integration
over 700 devices
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Users: 170 BPOS (CASA
agreement)
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Users: 8000 BPOS Suite
Types of end-usersInformation Worker
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Have PC and are office workers, collaborate
regularly with others, access via mobile devices
etc.
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Outlook connectivity with OWA
Full Exchange Online, SharePoint Online
5GB Exchange mailbox
250MB SharePoint storage
ActiveSync device support
Deskless Worker
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Don’t have PC or Laptop assigned at work,
Infrequent access to a PC, multiple users sharing
one PC
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500MB Exchange mailbox
Mailbox accessed via OWA Light
SharePoint capabilities (no storage)
Lower cost
Near Term Opportunity
Task-workers
Has workforce
with no
dedicated PC
Need to
communicate
to all
employees
Cost
Needs to lower
costs fast
Needs more
efficient IT
(centralize or
consolidate
platform)
Cloud/Outsourced
Google,
Groupwise or
Notes
Wants strategy
or evaluating
cloud
Has Google
created initial
interest
Outsourced or
evaluating
outsourcers
Last Novell
strongholds
Is unhappy
with current
outsourcer
Notes customer
(http:
//notescompete)
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Near Term Opportunity
Challenges
Staying
Current
Is not deployed
on current
technology (on
Ex 2000, Ex
2003)
Wants
dynamic
infrastructure.
Greater
standardization
Up-time
Challenges
Mergers &
Acquisitions
Has security/
reliability
concerns
Needs
standardized
infrastructure,
fast addition of
new users
Has challenges
with up-time
Change Agent
New CIO, CEO,
CTO, TDM
Is expanding
Needs
collaboration
strategy to
drive revenues
1919
KATHRYN SADUCAS
HOW IS IT LICENSED?
Online Services Program Comparison
Microsoft Online Subscription Program
(MOSP)
Customer
Type
New customer looking for lowest cost
option
Existing FPP, OEM, Select & Open Value
customers
Agreement
Terms
Available
Offers
Enterprise Agreement
(EA) or Campus School Agreement (CASA)
New or Existing Platform EA customers or CASA
customers
Existing EA Core CAL or ECAL customers
Evergreen – Auto Renewal
Coterminous with EA (Up to 3 Years)
1 Year Subscription Term
No Seat minimum
Billing Starts Immediately (Monthly)
Attached to Current EA/CASA Enrolment
Credit Card or on your Telstra Bill
Billing Starts Immediately (Annual)
No Seat minimum
Billing Consistent with VL Agreement terms
Suites and Component offerings
USL’s and Step-Up USLs (now available)
Suites and Component offerings (no Deskless or
extra sharepoint storage)
BPOS-S is an Additional Product in EA (no platform
commitment)
All qualified desktops must still have a CAL Suite
licensed with active SA
Flexibility to deploy staged rollout by counting
actual users, not FTEs or devices
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BPOS Dual Access License Rights
User Subscription License (USL) can be used with the service and with on-premises servers
On-premise license rights are for the equivalent workload CAL
Deskless Worker USLs do NOT allow for dual access rights; no on-premises equivalent
Exchange Example
Customer purchases Exchange Online User Subscription License
Licensed User can use the USL to access Exchange Online
Customer purchases Exchange Server licenses for their on-premise servers
Same Licensed User can use the USL as a Client Access License to access On-Premises Servers
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Partner Opportunity
Partner Type
Online Services
Advisor Partners
‘Partner of Record – POR’
(VAR/SI/ISV)
Large Account
Resellers (LAR)/
Enterprise Software
Advisors (ESA)
Activity
FY11 Incentive Model
 Assist customers in
purchasing, migration,
customisation and
implementation
 Provide continuous postsales support, training
and other managed
services
Partner Of Record (POR) Fees
 Assist EA customers in the
process of subscribing to
Online Services.
 Drive attach of Online
Services to
new/renew/existing EA.
ESA Fees
 12% Net Add on first year subscription revenue.
 6% Ongoing on subscription monthly revenue.
 10% Fee on Online Services annual billed revenue
(FY11) attached to EA.
Note: ESA/LAR cannot claim both POR fees and ESA fees unless they are 2 x separate trading entities
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Partner Revenue and Opportunity Analysis
Analysis of 40 deals
Average deal size: 141 seats
Average deal revenue: $24,000
Managed Services
$35/seat
Business Consulting &
Customisation
$66/seat
Migration & Integration
$46/seat
Partner of Record Fees
$20/seat
Total = $167 per seat
Attaching the “Partner of Record”
Active MPN
Membership
Review and
Accept MOSPA
(and TOSA for
non EA)
Complete
Online Training
BPOS Partner
For non-EA POR attached
automatically during ordering
process via Telstra
Download OSA
Attach Form from
QuickStart
Complete Form and
Submit to Customer for
Signature
Customer attaches POR in
MOCP during purchase
experience
Submit Form via
MOCP for processing
Receive process
completion email
Attach POR to Volume License Enterprise
Enrolment Agreement (EA)
Assign as POR
Receive Fee
Statement
Submit Invoice
Note: For non-EA via Telstra T-Suite, POR is attached automatically
through online ordering process.
Receive Fees
EA Pricing