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Selling Office 2010 to Small and Medium Businesses

Selling Office 2010 to Small and Medium Businesses. IW Bootcamps June 20, 2011. Agenda. Market Overview Partner Opportunity Business PC Office 2010 SKU Lineup Resources. SMB Businesses are reinvesting in IT. PC Purchases. Top SMB Areas of Opportunity.

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Selling Office 2010 to Small and Medium Businesses

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  1. Selling Office 2010 to Small and Medium Businesses IW Bootcamps June 20, 2011

  2. Agenda • Market Overview • Partner Opportunity • Business PC • Office 2010 • SKU Lineup • Resources

  3. SMB Businesses are reinvesting in IT PC Purchases Top SMB Areas of Opportunity Data source: Internal Microsoft finance dashboard, April 2010 * Organization size based on total # of PCs; ** Cost of maintaining PCs, TechAisle; *** BusinessWeek Sept 2009

  4. The Fastest Selling OS & Productivity Suite in History! 350 million 150 million 92% 1 RATES OFFICE 2010 HIGHER THAN PREVIOUS LICENSES SOLD LICENSES SOLD COPY SOLD VERY SECOND! 94% CUSTOMER SATISFACTION** More than 25% of all PCs worldwide are running Windows 7 today* #1 software product in U.S. retail Over 1 billion users worldwide 7 COPIES SOLD EVERY SECOND * Net Applications, June 25 2010; ** Lifehacker survey, March 2010

  5. Office 2010 + Servers = Increased Value Better together for Small and Medium business needs VALUE SERVERS + =

  6. Office 2010 + Office 365 = Increased Productivity

  7. Partner Opportunity IW Bootcamp Month d, yyyy

  8. The Value of Office 2010 to YOU… our Partner • Meet evolving • market needs • Best productivity experience across PC, phone and browser • Easier to buy and sell • Simplified suite line up • More choice to buy, install • More demand • Enhances Partner revenue • Attach to new PCs • Cross Sell / Up Sell • Build solutions • & provide services Selling Office 2010 will help drive your business

  9. Opportunities to Sell Office 2010 Online Service On-Premises

  10. Office Subscription vs. Traditional Licensing Over a 10 year period, subscription licensing generates more revenue when the customer refresh cycle is greater than 3 to 5 years.

  11. What to sell? Always access to the latest versions Shorten the refresh cycle Full experience (client + server/cloud)    Preferred SKU for VAR/Scale Reseller UPSELL OVS  Always access to the latest versions Shorten the refresh cycle Full experience (client + server/cloud) FALLBACK   UPSELL OPEN  Always access to the latest versions Shorten the refresh cycle Full experience (client + server/cloud) FALLBACK   UPSELL OEM/FPP/PKC  Always access to the latest versions Shorten the refresh cycle Full experience (client + server/cloud)   Preferred SKU forOEM/Retail only

  12. Introducing the Business PC IW Bootcamp Month d, yyyy

  13. Business PC Market Opportunity The best time to sell Office is at the point of PC sale 1 Cross sell to Office Server products or Cloud Services 2 Best time to sell VL is at POS. Most customers want and expect Office to be installed on their PCs PC buyers that receive a recommendation to buy Office at POS or find Office at the same place as the PC are almost 3 times as likely to purchase Office the same day (but in reality, less than 12% of PC buyers receive such a recommendation!) Office 2010 represents a great opportunity to cross-sell Microsoft Exchange Server, Microsoft SharePoint Server, Microsoft Communications Server or Office 365 cloud services. FY10 Projected Customer Spend4: BI $6.1B, Exchange $5.7B, SharePoint $5.5B OCS/Lync $653M

  14. Business PC Benefits • Effectively market Windows 7 Professional and Office 2010 • and create demand: • Increasing volume of Business PC and associated hardware • Driving Windows 7 & Office 2010 FPP/VL revenue and incentives • Solution Selling other Microsoft products

  15. Business PC = Windows 7 + Office 2010 3 1 2 • Consumers / Retail: Office 2010 Home & Business OEM/FPP/PKC • Business / SMB Channel: Office 2010 Professional Plus VL Drive Windows 7 + Office 2010 across all sales channels

  16. Selling Office 2010 to Small and Medium Businesses IW Bootcamp Month d, yyyy

  17. Selling Office 2010 • Sell the Value • Sell the Right Version Work Better Together Bringing Ideas to Life Consumer or Home Business Small and Medium Business Use Office Anywhere

  18. Selling the Value of Office 2010 • Work Better Together • Stay connected to customers • Bring Ideas to Life • Empower individual impact • Use Office Anywhere • Manage business from a PC, phone or browser “Instantly brainstorm and share, that happens an awful lot between myself and the contractors and also the clients.” “Anything having to do with making things simpler and easier to use and employees spending less time, that’s the bottom line. That’s productivity.” “It seems it doesn’t matter what you do today, what business you’re in, everybody is on the go so that’s important.” The best productivity experience across PC, phone and browser

  19. Selling the Value: Work Better Together Working together in real time to get things done faster more efficiently PLACEHOLDER FOR DEMO REEL / SCREEN SHOTS Stay connected to customers • Work together in real time with Word and OneNote Co-authoring • Gain control over email withconversation view in Outlook • Share Instantly with Broadcast Slide Show in PowerPoint • Communicate and share files with more safeguard features

  20. Selling the Value: Bring Ideas to Life Create professional multimedia material which captivates PLACEHOLDER FOR DEMO REEL / SCREEN SHOTS Empower individual impact • Create professional materials that set you apart with picture and video editing • Create powerful data insights with Excel Sparklines • Increase productivity and reduce training costs with Backstage

  21. Selling the Value: Use Office Anywhere Work from virtually any place or device PLACEHOLDER FOR DEMO REEL / SCREEN SHOTS Manage business from a PC, phone or browser • Keep productive on the go with SharePoint Workspace • Respond faster when you’re away from the office • Do more on your phone with Office mobile

  22. Office 2010 Simplified Product Offering IW Bootcamp Month d, yyyy

  23. Responding to Your Feedback • Heavy Promotional Activity • Different Price Lists and Currencies • Different SKUs for Retail and Distribution • Inconsistent Applications between SKUs • Multiple Images • Consistent and Rational Pricing • Simplified SKU Lineup • Logical Application Groupings • Single Image on PCs • Constant Currency Pricing • Before… • CONFUSING • Now… • SIMPLE

  24. Office 2010 Simplified SKU Line-up

  25. New flexible purchase options • Pricing reflects US pricing • *Voice currently requires an on-premises server

  26. Open License Program Comparison OVS BENEFITS VS. OPEN L • Software Assurance included • More Software Assurance benefits thanavailable through Open Business • Three-year agreement • Software media included • Start with a minimum of five licenses • No reorder minimum

  27. Office Subscription vs. Traditional Licensing MOSA revenue is typically lower than eg. Open, but it generates more annual revenue if average/expected refresh cycle is taken into account Product markup + incentives earnings per seat (over the lifecycle of the license) All prices based on NET over a period of 3 years ** MOSA RPL includes Disti + Advisor fees *** Refresh cycles based on average estimate OV not included because of similar renewal behavior as Open All partner revenues are based on estimated product markup %

  28. Simplifying Office Attach with New PCs • OEM • Pre-load Office Image • Includes all 3 Office suites • Same image for all Consumer and Small Business PCs • Resellers • Sell Office 2010 with pre-loaded PC • Customer purchases Product Key Card (PKC) or Disc (FPP) • Product key activates image on PC • End User • Easy Activation • Customer selects Office 2010 from Windows Start menu • Customer enters product key and is ready to go! COVERAGE  CONVERSION

  29. What is a PC pre-loaded with Office 2010? NEW PC PRELOADED WITH OFFICE 2010 + Home and Student Home and Business Professional Purchase Office 2010 to activate the preloaded software - OR - Product Key Card Traditional Disc

  30. What are Product Key Cards (PKC)? • Replacement for the Office 2007 Media-Less License Kits (MLK) • Retail-friendly packaging • Single Activation • Non-transferable • Optimized for Office 2010 preloaded PC (does not include media) • Traditional Disc (FPP) should be used instead of a Product Key Card if consumer wants to install Office 2010 on more than one PC • Benefits to System Builders • Drives higher attach rates: Value priced to serve as the best opportunity to sell Office with new PCs • Simplicity: Like traditional discs, Product Key Cards activate the corresponding Office suite on preloaded PCs • Customer Satisfaction: Great out-of-box experience lets customers get up and running on Office 2010 in minutes.

  31. How does PKC compare to Traditional Disc? • Product Key Card • Traditional Disc 1 User / 1 new preloaded PC1 1 Household / 3 PCs 1 User / 2 PCs2 1 User / 2 PCs2 1 POSA-enabled version does not include a Product Key. Product Key must be retrieved online. 2 One user’s primary and portable PC *Office for Mac is only available thru Traditional Disc (FPP)

  32. Office for Mac IW Bootcamp Month d, yyyy

  33. Office for Mac 2011 Delivers More The most trusted and most used productivity experience on a Mac Compatible Familiar Professional Collaboration Integration • Visual Basic Support • Conditional Formatting • Sparklines • Outlook for Mac • Ribbon across all applications • Dynamic Reordering • Template Gallery • Office Web Apps • Broadcast Slide Show • Coauthoring • Windows SharePoint Services Support • Communicator for Mac 2011 • Information Rights Management

  34. Office for Mac Version Comparison

  35. Partner Tools and Resources IW Bootcamp Month d, yyyy

  36. The Right Tools Campaign Overview Pitch Deck Objection Handler Battlecard Telesales Datasheet Top 10 Reasons Flyer Copy Blocks Email Template Banners

  37. Sales Tools from Microsoft Web Sales Training 2 1 FREE Online Training for Distributors, Resellers and System Builders

  38. Sales Tools from Microsoft Web Sales Training 2 1 Light Up Your Website Using Microsoft Resources Contact your Microsoft Account Manager to find out how to participate!

  39. OEM Partner Center – http://oem.microsoft.com 1-stop site for sales, marketing and technical resources 3 Things a System Build or Reseller Can Do NOW to Sell/Market Office 2010 1 Train your sales teams Online Trainings, Flyers, Scripts, Direct Mail If you are a System Builder, use Office 2010 OPK to pre-load the Office 2010 image 2 Datasheets Promote that you have Office 2010 NOW to deliver the best PC available 3

  40. Retail Sales Tips Resources for your retail experience 3 Things to do in a Retail Setting NOW to Sell/ Market Office 2010 3 Things to do in a Retail Setting NOW to Sell/ Market Office 2010 Drive paid conversion at PC Point of Sale (in-store, online) 1 Product Assortment: Product Key Card & Traditional Discs Drive the Product Key Card and Full Package Product 2 In store assortment Educate sales force on new sales motion 3 Merchandising solution for Product Key Cards

  41. Office 2010 Partner Site – http://partners.microsoft.com/office2010 A great resource for partners who want a head start • Product Introductions • How-To Videos • Articles • Interviews with Microsoft Product Managers • Technical Previews • Links to Blogs • Links to Discussion Forums

  42. MAP Toolkit IW Bootcamp Month d, yyyy

  43. How MAP helps you win more engagements • Creates a complete hardware readiness assessment for Windows 7 and Office 2010 — in matter of hours. • Lets you provide immediate, valuable, actionable information for your customer. • Also does readiness assessments for Office 365, Windows Server 2008 R2 and Hyper-V Virtualization • Provides information and assessments for SQL Server migration engagements • Assesses customer environments for Windows Azure Platform readiness.

  44. Sample Office 2010 Deployment Opportunity • Customer wants to move from earlier versions of Microsoft Office to Office 2010 • Varying PC hardware configurations—running different, earlier versions of Office. • Need readiness assessment to help plan migration to Office 2010.

  45. Microsoft Office 2010 Readiness Assessment • Inventory customer environment • Assesses the readiness of those computers for migration to Windows 7 & Office 2010. • Excel workbook • Details the readiness and inventory of the Office applications • Summary proposal • Outlines the readiness for Windows7 & Office 2010 • Provides the next steps for deployment

  46. Partner Co-Branding Customize MAP Proposal Templates with Partner Logos and Language Co-Brand MAP User Interface with Partner Logo

  47. Additional MAP Resources • Learn more about MAP: https://partner.microsoft.com/maptoolkit Download MAP: www.microsoft.com/map Get MAP readiness and sales resources: https://partner.microsoft.com/SATresource • Check out other Solution Accelerators • for Office 2010: https://partner.microsoft.com/MDT https://partner.microsoft.com/SCM

  48. Call to Action IW Bootcamp Month d, yyyy

  49. Summary and Partner Action Items Summary Action Items • With Office 2010, we are making it easier for you to sell Office with new PCs. • Office Single Image and Product Key Cards are great innovations that provide our partners with new opportunities. • Promote and sell PCs with a single image • Educate your sales reps and customers about Office 2010 • Sell a Product Key Card or Disc at Point of Sale to activate a full Office suite

  50. Next Steps • Start using Office 2010! • Get your organization trained! • Drive cross sell and up sell opportunities : • Windows 7: www.microsoft.com/windows7 • Exchange 2010: www.microsoft.com/exchange • SharePoint 2010: www.microsoft.com/sharepoint • Office 365: www.microsoft.com/office365

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