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Selling BizTalk-Based Engagements. David Chappell Chappell & Associates www.davidchappell.com. “These are quotes from sales principals in Microsoft partners that provide a substantial integration capability.”. Agenda. Key Questions and Answers Recognizing Integration Opportunities

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selling biztalk based engagements

Selling BizTalk-Based Engagements

David Chappell

Chappell & Associates

www.davidchappell.com

agenda

“These are quotes from sales principals in Microsoft partners that provide a substantial integration capability.”

Agenda
  • Key Questions and Answers
  • Recognizing Integration Opportunities
  • Complements, Alternatives, and Competitors to BizTalk Server
  • Appendix: BizTalk Server Basics
slide3
1

Key Questions and Answers

what do integration deals look like using biztalk server

Multi-site consolidation with heterogeneous systems

Professional services fee

€18,000,000

Person months of effort

680

Gross profit

€10,800,000

Gross margin

60%

Multiple apps and integration points with fault tolerance, clustering, etc.

Professional services fee

€1,000,000

Person months of effort

45

Gross profit

€400,000

Custom app development plus integration

Gross margin

40%

Professional services fee

€250,000

Person months of effort

15

Gross profit

€125,000

Small scoping project plus initial build

Gross margin

50%

€30,000

Professional services fee

Person months of effort

1

€13,500

Gross profit

Gross margin

45%

What Do Integration Deals Look Like? Using BizTalk Server

Source: Microsoft BizTalk partners interviewed by IDC, 2006

what s being sold

“Don’t lead with BizTalk. Instead, lead with business process knowledge, integration knowledge, and architectural knowledge.”

“We talk to our customers about their business problems first, and we bring candidate technologies to the table to address those business problems.”

What’s Being Sold?
  • Clients want business value
    • Integration is a means to this end
  • Selling engagements that include integration typically means selling solutions
how does the sales process look

“Once you’re past the initial conversation, the discussion will invariably turn technical. Nothing replaces having a BizTalk architect by your side.”

Envision

Proof

Close

Qualify

$

?

Sales

Principal

Sales

Principal

BizTalk

Architect

BizTalk

Architect

Developers

Sales

Principal

How Does the Sales Process Look?
how long is the sales process

“You need to be able to sustain a long sales process. There’s no quick money.”

How Long is the Sales Process?
  • For customers with no installed integration products:
    • Commonly 6 to 9 months
  • For current BizTalk Server customers:
    • Perhaps 3 months
what s needed to get started
What’s Needed to Get Started?
  • A solution-oriented mindset
  • Knowledge of both business and technology issues
    • Perhaps divided among different people on the sales team
  • Prospects with integration problems
    • Allowing you to expand current conversations
  • The ability to recognize integration opportunities
slide9
2

Recognizing Integration Opportunities

recognizing when integration is required words to listen for

“We’ve just acquired another company”

“We’re merging with . . .”

“We need to access legacy systems”

“We need to connect . . .”

Recognizing When Integration is Required Words to Listen For
categorizing customers

Business Decision Makers (BDMs):Want solutions to business problems

Information Technology Decision Makers (ITDMs):Want solutions to IT problems; involved in solving business problems

Categorizing Customers

Business Groups

IT

categorizing biztalk based projects typical business problems
EAI

Keeping information in sync across multiple applications

Displaying diverse information from different applications

B2BI

Connecting suppliers with their customers

  • Business Process Automation
    • Replacing manual processes
    • Providing real-time information about running business processes
    • Managing sets of business rules
    • Tracking business processes for compliance
Categorizing BizTalk-Based ProjectsTypical Business Problems
eai keeping information in sync an example

BizTalk Server

Siebel

CRM

.NET

Application

SAP

ERP

Business Users

Business Users

Customer Data

Customer Data

Customer Data

EAI: Keeping Information in SyncAn Example
eai keeping information in sync business goals
EAI: Keeping Information in SyncBusiness Goals
  • Make business processes more effective and more consistent
    • By allowing changes to information in one application to be automatically reflected in other applications
  • Reduce costs
    • Such as by connecting different parts of a business without requiring manual re-entry
eai keeping information in sync words to listen for

“Our systems don’t talk to each other”

“Our users don’t have the information they need”

“I need information in one system that’s kept in another”

EAI: Keeping Information in SyncWords to Listen For
eai displaying diverse information an example

Employees

Customers

User Interface

BizTalk Server

Retail Banking

Application

Mutual

Funds

Application

Lending

Application

Customer Data

Customer Data

Customer Data

EAI: Displaying Diverse InformationAn Example
eai displaying diverse information business goals
EAI: Displaying Diverse Information Business Goals
  • Increase customer satisfaction
    • By allowing direct access to current information, e.g., shipping status or financial information
  • Reduce costs
    • Such as by hiring fewer call center employees
  • Increase revenues
    • Such as by improving cross-selling based on employee access to current and complete customer information
eai displaying diverse information words to listen for

“People have to go to many different applications to get their work done”

“Employees have five different applications running on their desktop”

“We need a common view of

customers/patients/…”

EAI: Displaying Diverse Information Words to Listen For
b2bi an example

Customer

Supplier

BizTalk Server

EDI

JD Edwards

Business Users

B2BIAn Example
b2bi business goals
B2BIBusiness Goals
  • Lower costs and improve quality of interaction with suppliers
  • Comply with customer mandates
    • Big firms commonly force their suppliers to connect electronically
  • Comply with government and industry mandates
    • For health care, banking, and more
b2bi words to listen for

“EDI”

“AS2”

“EDIFACT”

“X12”

“Supply chain management”

High Tech:

“RosettaNet”

Health Care:

“HIPAA”, “HL7”

Financial Services:

“SWIFT”

B2BIWords to Listen For
business process automation business goals
Business Process AutomationBusiness Goals
  • Reduce manual effort
    • And improve cycle times
  • Provide real-time process information
    • Via business activity monitoring (BAM)
  • Manage complex sets of business rules
    • With a business rules engine (BRE)
  • Track business processes for compliance
    • And improve visibility into those processes
business process automation an example

Business Users

BAM

Tracking

BizTalk Server

BRE

Business Users

Siebel

CRM

.NET

Application

SAP

ERP

Business Users

Business Process Automation An Example
business process automation words to listen for

“Faster time to market”

“Faster cycle times”

“Business rules”

“Visibility”

“Audit trails”

“Compliance”

“Sarbanes-Oxley”, “SOX”, “SarbOx”

Financial Services:

“Basel II”

Business Process AutomationWords to Listen For
categorizing biztalk based projects typical it problems
Service-Oriented Architecture (SOA)

Exposing web services from existing applications

Providing an enterprise service bus (ESB)

Simplicity

Replacing complex custom integration

Replacing integration done with older technologies

Categorizing BizTalk-Based ProjectsTypical IT Problems
simplicity improving what s already there
Simplicity Improving What’s Already There
  • Organizations often have:
    • Complex custom integration solutions
      • Or solutions based on older integration products
    • Mission-critical data in legacy systems
  • BizTalk Server-based projects can:
    • Provide more control
    • Save money
    • Safely wrap legacy applications
      • Without changing them
soa supporting the move to services

“Many companies are starting to move to SOA, which is also driving the need for BizTalk engagements.”

SOA Supporting the Move to Services
  • SOA can provide a common way to access new and existing applications
  • BizTalk Server-based projects can:
    • Expose the functions of one or more applications as web services
    • Provide the services of an ESB
      • Such as message-based communication, data transformation, and more
it problems words to listen for

“We’re scared to touch anything”

“Complex, fragile integration”

“Service-oriented”

“ESB”

“SOA”

IT ProblemsWords to Listen For
microsoft support fy07 biztalk server campaigns
Microsoft SupportFY07 BizTalk Server Campaigns
  • Cross-industry campaigns:
    • Business Intelligence: BAM and more
    • SOA and Business Process
  • Vertical industry campaigns:
    • Manufacturing
      • B2BI: Connecting with trading partners
      • Supply chain visibility
    • Retail
      • B2BI: Connecting with trading partners
      • Supply chain visibility
      • RFID

“Connect”

microsoft support infrastructure optimization io models
Microsoft SupportInfrastructure Optimization (IO) Models
  • IO models categorize an organization into one of four levels:
    • Basic, Standardized, Advanced, Dynamic
    • The Application Platform IO Model (APIOM) includes SOA and Business Process
  • The process of categorizing a customer can help discover opportunities
    • For more information, see

http://www.microsoftio.com

slide31
3

Complements, Alternatives, and Competitors to BizTalk Server

summarizing the landscape
Complements

Host Integration Server

Microsoft Operations Manager

BizTalk ISV Partners

Summarizing the Landscape
  • Competitors
    • Doing nothing
    • Custom code
    • Other vendors
      • IBM
      • SAP
      • Oracle
      • BEA
      • Tibco
      • WebMethods
      • Sun’s SeeBeyond
  • Alternatives
    • Windows SharePoint Services
    • SQL Server Integration Services
    • Windows Workflow Foundation
complements
Complements
  • Host Integration Server (HIS)
    • Connects to IBM systems
  • Microsoft Operations Manager (MOM)
    • Supports a management pack for BizTalk Server
  • BizTalk ISV partners
    • Human workflow:
      • SourceCode’s K2.net
      • Captaris
    • BPM:
      • http://www.microsoft.com/biztalk/solutions/bpm/partners.mspx
alternatives
Alternatives
  • SQL Server Integration Services (SSIS)
    • SSIS focuses on Extract, Transform, and Load (ETL) of data
  • Windows SharePoint Services (WSS) 3.0
    • Supports human workflows
    • Can be connected to BizTalk Server
  • Windows Workflow Foundation (WF)
    • Allows creating workflow-driven applications
    • BizTalk Server provides many more services, however
competitors doing nothing
CompetitorsDoing Nothing
  • Is spending money on integration worthwhile for this prospect?
    • It might not be
  • Beating this competitor requires building a convincing business case for your solution
competitors custom development 1

“If customers won’t invest in BizTalk when it’s warranted, the end result takes longer to build, is harder to scale and extend, and more expensive to maintain. It’s better for the overall solution, and thus better for the partner, to sell the right technology.”

CompetitorsCustom Development (1)
  • Writing all of the integration code yourself can be the right solution
    • Such as for simple point-to-point problems
  • For more complex scenarios, an integration product is better
competitors custom development 2

“Whatever solution you build, you want to do the best thing for the customer.”

CompetitorsCustom Development (2)
  • BizTalk Server provides:
    • Adapters and accelerators
    • Data mapping
    • Graphical tools
    • Security
    • Persistence
    • Reliability/failover
    • Scalability
    • Management tools
competitors general truths
CompetitorsGeneral Truths
  • All built their integration product suites at least partially by acquisition
    • So they’re typically more complex to use and less mature than BizTalk Server
  • All charge extra for individual features, such as BAM and a BRE
    • BizTalk Server includes all of these things
    • So BizTalk Server is typically less expensive
  • None work as well with other Microsoft software as BizTalk Server
competitors the importance of proof
CompetitorsThe Importance of Proof
  • If a competitive proof of concept (POC) is done, BizTalk wins well over half of the time
    • Primarily because of its ease of use
  • But POCs aren’t just about technology
    • What’s being proven is that your firm (and Microsoft) are good partners for this project
  • Use the right people for the POC
    • Domain expertise in whatever is being integrated, e.g., SAP, is commonly required
competitors important factors in a competitive situation
CompetitorsImportant Factors in a Competitive Situation

Help the Sale

Hurt the Sale

The partner:

Can demonstrate rapid ROI

Has strong knowledge in this vertical market

The partner:

Can’t demonstrate rapid ROI

Lacks strong knowledge in this vertical market

A POC demonstrates high productivity using BizTalk Server

The POC or the entire decision is driven by a non-Microsoft-friendly person

The customer is already using BizTalk Server

A competing product is already entrenched

.NET is a large part of the development environment

.NET isn’t a large part of the development environment

conclusion what to do next
ConclusionWhat to Do Next
  • Understand the problems your customers face
  • Recognize when integration should be part of the solution
    • Help the customer recognize this, too
  • Close the deal
slide43
Appendix:

BizTalk Server Basics

the history of biztalk server

2000

2002

2004

2006

2007

BizTalk Server 2000

BizTalk Server 2002

BizTalk Server 2004

BizTalk Server 2006

.NET-based rewrite

BizTalk Server 2006, R2

The History of BizTalk Server
illustrating biztalk server 2006

Accelerators

Visual Studio 2005

HL7

SWIFT

...

Others

Business Activity Monitoring (BAM)

Orchestration Designer

Business Rules Engine (BRE)

Health and Activity Tracking (HAT)

Orchestration

SAP

IBM

Mainframes

Data Mapping

Adapters

WebSphere MQ

SAP

...

Web Services

File

Others

Java

Applications

Other

Tracking

Message Box

Illustrating BizTalk Server 2006
biztalk server 2006 standard edition

BizTalk Server

BizTalk Server

or

SQL Server

SQL Server

BizTalk Server 2006 Standard Edition
  • Limited to two CPUs on one server
  • Allows a maximum of five applications
biztalk server 2006 enterprise edition

BizTalk Server

BizTalk Server

SQL Server

SQL Server

BizTalk Server 2006 Enterprise Edition
  • Allows multiple servers for reliability and scalability
  • Allows an unlimited number of applications
adapters making connections
AdaptersMaking Connections
  • Included with BizTalk Server:
    • SAP, PeopleSoft, Siebel, JD Edwards, WebSphere MQ, many more
    • Complete list: http://www.microsoft.com/biztalk/evaluation/ adapter/default.mspx
  • Available from partners:
    • http://www.microsoft.com/biztalk/evaluation/ adapter/partner/2004.mspx
selling biztalk licenses

“We sell ROI, making the BizTalk license just a line item to get this return.”

Selling BizTalk Licenses
  • Selling a solution that includes BizTalk Server requires convincing customers that the license fee will ultimately save them money
    • This is easier with customers who understand the business value of integration
biztalk server 2006 pricing
BizTalk Server 2006 Pricing
  • Developer Edition: $499/user
    • Limited to developing and testing solutions
  • Standard Edition: $8,499/CPU
  • Enterprise Edition: $29,999/CPU
  • SQL Server is also required:
    • Standard Edition: $5,999/CPU
    • Enterprise Edition: $24,999/CPU
biztalk server 2006 pricing example configurations

“You have to be up front about what it’s going to cost.”

Redundant: Two instances of BizTalk Server, each running on its own 2-CPU server, with one clustered message box, each running on its own 2-CPU server

High-throughput: Four instances of BizTalk Server, each running on its own 2-CPU server, with one clustered message box and one clustered tracking database, each running on its own 2-CPU server

BizTalk Server 2006 Pricing Example Configurations

Configuration

Required Licenses

BizTalk Server

Licenses

SQL Server

Licenses

Total License Cost

Basic: One instance of BizTalk Server with one message box on a single 2-CPU server

BizTalk Server Standard Edition: 2 CPUs

SQL Server Standard Edition: 2 CPUs

$16,998

$11,998

$28,996

BizTalk Server Enterprise Edition:

4 CPUs

SQL Server Standard Edition: 2 CPUs

$119,996

$11,998

$131,994

BizTalk Server Enterprise Edition:

8 CPUs

SQL Server Enterprise Edition: 4 CPUs

$239,992

$99,996

$339,988

competitor pricing a reality check

“If the customer is only willing to spend $100,000-200,000 on an integration product, you can’t even really get started with anything except BizTalk .”

Competitor PricingA Reality Check
  • According to Gartner, the average sale price for a major vendor’s integration suite in 2005 was $700,000
  • BizTalk Server’s lower price leaves more money for services in the customer’s budget
for more information
For More Information
  • BizTalk Server Home Page

http://www.microsoft.com/biztalk/default.mspx

  • Microsoft Case Studies for BizTalk Server 2006

http://www.microsoft.com/biztalk/evaluation/ casestudies/2006.aspx?ddiDirectoryID=478

  • Partner Sales and Marketing Support

https://partner.microsoft.com/global/salesmarketing/createdemand/40028350

about the speaker
About the Speaker

David Chappell is Principal of Chappell & Associates (www.davidchappell.com) in San Francisco, California. Through his speaking, writing, and consulting, he helps information technology professionals understand, use, and make better decisions about enterprise software.

David has been the keynote speaker for many events and conferences in the U.S., Europe, Asia, and Latin America, and his seminars have been attended by tens of thousands of developers, architects, and decision makers in forty countries. David’s books on enterprise software have been published in ten languages and used in courses at MIT, ETH Zurich, and dozens of other universities. In his consulting practice, he has helped clients such as Hewlett-Packard, IBM, Microsoft, Stanford University, and Target Corporation adopt new technologies, market new products, train their sales staffs, and create business plans.

David’s comments have appeared in the New York Times, CNN.com, and many other publications. Earlier in his career, David wrote software for supercomputers, chaired a U.S. national standards working group, and played keyboards with the Peabody-award-winning Children’s Radio Theater. He holds a B.S. in Economics and an M.S. in Computer Science, both from the University of Wisconsin-Madison.