Convert Advisor Subscriptions to CSP The Easy Way

Transcription

1 Convert Advisor Subscriptions to CSP The Easy Way Ingram Micro Inc. 1

2 Advisor to Cloud Service Provider (CSP) Program Convert O365 Advisor subscriptions to CSP Double your margins Take back ownership of your customers 2

3 Time is Money...and a Whole Lot More! More than double gross margin on O365 subscriptions sold through CSP (4% Advisor vs. 9.1% CSP) Sell solutions by bundling other products and services with Microsoft Office 365 Annual renewal license shifts to monthly Auto Renewal Subscription Take control back of pricing, billing, contracting, and support for Microsoft Office 365 ACT NOW! Reclaim your status as trusted advisor including support with your customers on ALL products and services 3 3

4 What is the Advisor to CSP Program? A process to replace expiring O365 subscriptions sold through the Advisor model with new O365 subscriptions purchased via CSP from Ingram Micro R E F E R R A L MS O365 has been sold successfully by many resellers to their clients through the Advisor model End customer purchases direct with Microsoft Reseller is listed as partner-of-record, getting back end incentives and commissions on sales Higher payouts to resellers on net new sales, with lowered commissions (4%) and zero incentives for renewals R E S A L E Microsoft Cloud Solution Provider (CSP) is a new channel program from Microsoft to allow resellers to purchase from Ingram Micro and sell to their end customers Control of billing Control of support Control of pricing Bundling opportunities 9.1% gross margin Monthly billing Annual auto-renewal of subscription at same 9.1% gross margin 4

5 Business Scenario JUNE 1, 2014 Tech IT O365 to Paul s Pet Shop via the Advisor Licensing Model BEFORE MAY 30, 2015 Disable Auto-Renew on existing Paul s Pet Shop subscriptions MAY 30, 2015 Tech IT purchases exact same O365 subscriptions from Ingram Micro for Paul s Pet Shop JUNE 1, 2015 Original subscriptions purchased via Advisor in 2014 expire Year Scenario Based on Conversion of 50 E3 Subscriptions at MSRP $20 Advisor Revenue Advisor Gross Margin CSP Revenue CSP Gross Margin CSP Gross Margin % 1 $ 480 $ 480 $ 12,000 $ 1, % Advisor revenue is limited to the commissions received from Microsoft Advisor gross margin is 4% of MSRP CSP revenue and gross margin are based on actual Ingram Micro reseller pricing sell prices at MSRP 5

6 Change Impacts Reseller Tech IT purchases monthly O365 subscriptions from IM Tech IT invoices Paul s Pet Shop Tech IT provides L1 Support to Paul s Pet Shop Tech IT will call Ingram Micro for L2 Support on CSP solutions End Customer Paul s Pet Shop receives invoices and makes payments to Tech IT instead of Microsoft Paul s Pet Shop calls Tech IT for support instead of Microsoft Purchase contract for O365 between Paul s Pet Shop and Tech IT 6

7 Opportunity Assumptions CASE STUDY A US Reseller 3,086 Total Seats 1,261 Seats of O365 E1 at $8.00 per seat 1,113 Seats of O365 E3 at $20.00 per seat 439 Seats of Exchange Online Plan Miscellaneous seats Seats are converted from Advisor to CSP at the time of renewal Revenue for Year 1 is less; seats renew at different intervals Year 2 revenue is for all 12 months; Revenue = ACV Advisor Gross Margin is calculated at 4% Top-line revenue for Advisor is limited to commissions earned CSP Gross Margin is calculated based the following: Reseller sells at MSRP of the specific licenses Reseller purchases at the actual pricing on the Ingram Micro Marketplace Year Advisor Revenue Advisor Gross Margin CSP Revenue CSP Gross Margin CSP Gross Margin % 1 $ 17,660 $ 17,660 $ 441,501 $ 40, % 2 $ 17,660 $ 17,660 $ 441,501 $ 40, % 3 $ 17,660 $ 17,660 $ 441,501 $ 40, % 3-Year Total $ 52,980 $ 52,980 $1,324,503 $ 120, % 7

8 Begin Today! Contact your Ingram Micro Sales associate to begin converting Advisor seats to CSP And start doubling your margins TODAY CONTACT US: Call: , opt. 5 cloud@ingrammicro.com 8

9 Confidential Proprietary information and proprietary of Ingram information Micro Inc. of Ingram Do Micro not distribute Inc. Do or duplicate not distribute without or duplicate Ingram Micro's without express Ingram written Micro's permission. express written permission. 9 9