How to make money in the cloud. Richard Bowes Partner Development Manager

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1 How to make money in the cloud Richard Bowes Partner Development Manager

2 Agenda The Modern Partner M365 Azure Incentives Questions

3 The Modern Partner

9 aka.ms/profittool

10 aka.ms/profittool

12 (aka.ms/profitabilityscenarios)

13 Set the price, the terms and directly bill customers Directly provision and manage subscriptions Be the first point of contact for customer support

14 M365

15 Microsoft 365 Partner Opportunity Engage your customers in strategic conversations Advanced security GDPR Collaboration and Cloud Voice Microsoft 365 powered device Firstline workers

16 Windows 10 - Your Foundation For Services Revenue PARTNER MANAGED RECURRING REVENUE IS PRIMARY GROWTH DRIVER POC, PILOT, SCCM PREP & DEPLOYMENT 20 30% margin DEVICES & ACCESSORIES HW/SW RESALE 5 15% margin 20 30% margin bundled as monthly managed service NEW WINDOWS PROJECTS, SECURITY, LIFECYCLE MANAGEMENT 30 40% margin MANAGED SERVICE (DESKTOP+) MONTHLY RECURRING REVENUE 40 50% margin OFFICE 365, EMS, AZURE AD, IMPLEMENTATION AND RECURRING REVENUE 30 40% margin IP AND NEW INDUSTRY/ FUNCTION SCENARIOS 30 40% proj. margin 40 60% IP margin Assess & Plan Deploy Manage Service

17 Azure

Partner Revenue Build long-term, value-added services for Transform the Datacenter Capitalize on the market opportunity By 2020, the public cloud market will reach: $191B 1 More than 65% of

67 billion in 2019 3 Insights to maximize profitability Capitalize on growing customer awareness of and appetite for Cloudbased business continuity solutions Project Services Average Revenue:

Managed Services Average Revenue: $25-$75K 4 Margin: 45% Critical Response Support Data Center Performance Monitoring & Optimization Virtual Database Administration Reports & View Adjustments

18 Partner Revenue Build long-term, value-added services for Transform the Datacenter Capitalize on the market opportunity By 2020, the public cloud market will reach: $191B 1 More than 65% of enterprise IT organizations will commit to hybrid cloud technologies before 2016, vastly driving the rate and pace of change in IT organizations. 2 Growth of hybrid cloud will reach about $84.67 billion in Insights to maximize profitability Capitalize on growing customer awareness of and appetite for Cloudbased business continuity solutions Project Services Average Revenue: $50-$150K 4 Margin: 35% Cloud Readiness Assessments Solution Analysis, Scope, & Design Proof of Concept Data Architecture Design Database Infrastructure Development Data Center Migration Training Managed Services Average Revenue: $25-$75K 4 Margin: 45% Critical Response Support Data Center Performance Monitoring & Optimization Virtual Database Administration Reports & View Adjustments PowerShell Script Automation Data Center Performance Monitoring & Optimization Virtual Database Administration Azure Consumption Monitoring & Optimization Packaged IP Average Revenue: $15-$50K 4 Margin: 65% Automated Consumption Monitoring & Reporting Customer Self-Serve Portals Automated Data Migration & Integration Automated Monitoring, Alerting, & Logging SharePoint-Based Vertical Workflows Middleware for Hybrid Synchronization Automated Backups & Disaster Recovery External Portals for End Customer Information Pre-Configured Dashboards Leverage your existing customer base and initiate Cloud conversations with them to grow revenue Plan for the development and delivery of managed services and your own IP Windows Server System Center Microsoft Azure Source: 1. The Public Cloud Market Is Now In Hypergrowth, Forrester Research, Inc., April 24, IDC Press Release, IDC Reveals Cloud Predictions for 2015, December MarketsandMarkets, March 2015 Hybrid Cloud Market by Solution (Consulting, Cloud Integration, Cloud Management, Cloud Security, and Networking), by Service Model (IAAS, PAAS, and SAAS), by Region (NA, Europe, APAC, MEA, and LA) Global Forecast to MDC Research, Microsoft Cloud Profitability Scenarios May 2015

19 Incentives

20 CSP Direct Partner Incentive Effective July 1, 2017 through June 30, Purpose 2 Eligibility Reward and support CSP Direct Partners for driving the activation and enablement of customers with Microsoft-based Online Services. Active MPN membership Attain one of the defined competencies by 12/31/2017 Valid Cloud Reseller Agreement 3 Need to know 4 Incentive rates Eligibility amended competency focused Global rate maintained at 8% Supplemented by new PSE and PSTN accelerators Change in regional (EU/EFTA) accelerator Incentive Rate Core Incentive (Rebate only) 8% Global Strategic Product Accelerator (Microsoft 365 Enterprise E5 & E3) 5% Global PSTN Calling and Conferencing Accelerator (Standalone SKUs) 20% EU/EFTA Accelerator Azure 5% EU/EFTA Accelerator O365 E5, E3 & Business Premium 3% Azure Virtual Machine Instances (all VM s except series A and G eligible) 10% FY18 CSP Direct Partner Incentive Guide FY18 Partner Incentive Experience Guide

21 CSP Indirect Provider Incentive Effective July 1, 2017 through June 30, Purpose Reward CSP Indirect Providers for supporting CSP Indirect Resellers and developing strong practices around strategic solutions. Need to know Rebate & Coop (50:50) and includes Core, Accelerator & CDSA Rate maintained at 10% Local accelerators potentially available (per country choice) CDSA rewards cross-sell/up-sell for O365, Azure, EMS and Dynamics Eligibility Active MPN membership Valid Cloud Distributor Agreement Microsoft Authorization authorized as a CSP Indirect Provider 4 Incentive rates Incentive Rate Core 4% Accelerator 6% Cloud Distributor Solutions Accelerator (CDSA) 6% 10% FY18 CSP Indirect Provider Incentive Guide FY18 Partner Incentive Experience Guide FY18 Partner Incentives Co-op Guidebook

22 CSP Indirect Reseller Incentive Effective July 1, 2017 through June 30, Purpose Reward and support CSP Indirect Resellers for driving the activation and enablement of customers with Microsoft based Online Services. Need to know Eligibility amended competency focused Global rate maintained at 8% Supplemented by new PSE and PSTN accelerators Change in regional (EU/EFTA) accelerator 2 4 Eligibility Active MPN membership Attain one of the defined competencies by 12/31/2017 Incentive rates Incentive Rate Core Incentive (Rebate only) 8% Global Strategic Product Accelerator (Microsoft 365 Enterprise E5 & E3) 5% Global PSTN Calling and Conferencing Accelerator (Standalone SKUs) 20% EU/EFTA Accelerator - Azure 5% EU/EFTA Accelerator - O365 E5, E3 & Business Premium 3% Azure Virtual Machine Instances (all VM s except series A and G eligible) 10% FY18 CSP Indirect Reseller Incentive Guide FY18 Partner Incentive Experience Guide

23 Partner Call to Action 1 Build a practice: Learn more at Microsoft 365 Partner Opportunity site 2 Sell it right: Leverage Business Value Tools with your customers 3 Drive customer success: Sign up for FastTrack Partner Opportunity

WE RE IN THIS TOGETHER

WE RE IN THIS TOGETHER 8% MDC Research, Microsoft Cloud Profitability Scenarios May 2015 Microsoft Azure Enterprise Scenarios Microsoft Azure Enterprise Scenarios Microsoft Azure Enterprise Scenarios