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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

Making Money &

Building a Business Using Office 365

Speaker

Title

Company


Today s o bjectives

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


Today s o bjectives1

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


Choose the right model for you

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


More choice and flexibility for your customers

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


Power of choice by sku and by channel

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


Today s o bjectives2

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


The path of opportunity for office 365

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


Office 365 and the cloud lead to attractive deals

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


What opportunities exist and why are they attractive

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


Bigger deals driven by easier upsell cross sell

Bigger deals driven by easier upsell/cross-sell

Other Products and Services

Office


Increased margins by leveraging reusable offerings

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


Today s o bjectives3

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


How have high performing partners found success

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


Used a low touch centralized sales service model

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


Created simple packaged offerings that are easy to sell

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


Changed conversation to focus on the capabilities of cloud

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


Next steps

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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