Breaking New Ground @ Distribution Peter Davidson Sr. Director Distribution

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Breaking New Ground @ Distribution Peter Davidson Sr. Director Distribution. Last year: Beyond the Disti Warehouse. This year: The new Disti Warehouse. Tremendous Progress in H1. On-Premises YTD SMB Open YoY Growth 13.87% Non-managed Reseller Revenue Growth YoY 14.74% WW ORR Rate
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Breaking New Ground @ DistributionPeter DavidsonSr. DirectorDistributionLast year:Beyond the Disti WarehouseThis year:The newDisti WarehouseTremendous Progress in H1On-PremisesYTD SMB Open YoY Growth 13.87%Non-managed Reseller Revenue Growth YoY14.74%WW ORR Rate91%+CloudYTD VL/FPP O365 Seats SoldYTD VL/FPP Cloud RevenueYTD VL/FPP O365 Reach43%23%52%M/M Rev GrowthM/M Reach GrowthM/M Seats Sold GrowthYTD DistiSPLA RevenueYTD Disti SPLA New Hosters18% 51%Growth in Net-New Hosters1.2KAdvisorDirectOffice 365 Progress in H1Open FPPJuly 2013 December 2013 A tremendous partnershipUKCloud Channel ExecutionTurkeyBusiness Turn AroundMiddle East/AfricaCloud Compensation DriveFranceCloud Readiness DriveSwitzerlandTele BDM for Cloud & Cloud KPI ManagementSouth AfricaUnified Distribution StrategyThank you!Our Objective in 2H & Beyond“The opportunity ahead for Microsoft is vast, but to seize it, we must focus clearly, move faster, and continue to transform."—SatyaNadellaDecisively accelerate the move by our channel to sell Services.Continue to meet the overall sales & marketing targets that we have set out for our SMB business.Partner Incentives Roadmap201420172010In 3 years, more than 50% of incentives will be focused on Cloud Services, Devices and Solutions.SolutionDevicesDevicesCloudSolutionSolutionTransactional Transactional CloudTransactional CloudPrior distribution of computing modelsFuture distribution of computing modelsDistribution of models used todayTraditional VirtualizedPrivate cloudHosted cloudPublic cloud8This material is confidential for the use of Microsoft and Microsoft Partners.Worldwide Technology Trends75MSMALL BUSINESSESworldwide820KMEDIUM BUSINESSESworldwideMARKET$700B on IT in 2013$300B on IT in 2013$133B by 2017$78B by 2017$75B oncloud services$49B oncloud servicesSPEND87%54%MOBILITYSupport aMobileWorkforce1Support aMobileWorkforce1325K NEWSMALL BUSINESSESby 201715K NEWMEDIUM BUSINESSESby 201762%SMARTPHONE21% TABLET86% SMARTPHONE43% TABLETPENETRATIONPENETRATIONGROWTH1Statistic from AMI-Partners 2014 ICT & Cloud Study and is an 8 country roll-up summary (includes: US, CA, FR, GE, UK, RU, CH, and IN). Dominant Market ForcesOur DistributorsActivate & Enable The ChannelCapacity Gaps filled with active partners selling servicesDrive Demand & SellResellers meeting high demand for Microsoft ServicesRetain, Renew and UpsellResellers deliver the services and support SMBs depend onAccelerating rate of technology changeExpanding services and sales modelsExpectations in a fast-changing marketCompetitionDemand for customer productivityEvolving Disti Solution Accelerator (DSA)DISTI attains Eligible Competency by Dec 1 2013Disti sells solution workloads through Resellers 12DISTI is enrolled in DSA in FY14 H2 DISTI receives DSA incentive (10% of invoice value for eligible products) 50/50 Rebate/Coop42 Subs204 Competencies93DistisVolumeTransactionalReseller (break/fix)Client/OfficeValueSolution OfferingsValue Added Resellers/SisData Center/SQL/CRMServicesService OfferingsSI/Hoster/MSPCloud services/MarketplaceHow Partners are Making Money with Office 365 Managed Services and Packaged IPBillable Services Margins35-42%Add-on Projects and Solutions
  • Tier 1 / Tier 2 support)
  • New user set-up
  • Updates
  • End-user training
  • SharePoint Templates
  • Windows Intune
  • Desktop Management
  • Policy/Patch Management
  • Software Asset Management
  • RevenueDeployment & Migration Services
  • Expansion
  • Customization
  • LOB integration
  • IT infrastructure design
  • IT planning
  • IT training
  • Managed Services/IP Margins50%+Office 365 Licensing Revenue
  • Assessment / planning
  • Migration of data
  • Establishment of service
  • BaselineGoodBetterBestRecurring$48-240 / seat$40-120 / seat$40+ / seat$50-80 / seatStructure of Office 365 Deal Note: Estimates are based on partner interviews so actual numbers will differ by market.Annuity Model Generates More Revenue and Margin46% more revenue4Xas much margin$180$$180$$180$369$$$180$$369$180OfficeStd.$$180Office 365Coming “Wave” of SMB Cloud Subscription ExpirationsAnniversary Net Unit Add MapOpen L&SA – renew every 2 yearsOV/OVS – renew every 3 yearsRenewal ValueVolume of RenewalsDistributor As A Market MakerApplied market insightsGrow and retain end customersBusiness intelligence and systemsGrow new models for Disti profitabilitySuperior Customer & Partner ExperienceChannel capacityCapitalize on the value distribution opportunityIntegrated products and solutionsRealize the Device + Services opportunityThings We MUST get right @ DistributionCloud SureStepOur AspirationDecisively accelerate the move by our Distributors and their resellers to sell Services.Continue to meet the overall sales & marketing targets that we have set out for DistributorsFlawless Sure Step Plan Execution @ Distribution
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