Office Exchange Online -...

Office Exchange Online

Lync OnlineSharePoint Online

Target users 1-10 Advanced IT needs11 - 250Consumer

$8.33 $12.50 $15 $20 (E3)Cost per

month

$139 $219 $499 $499

Office 365 Small

Business Premium

Office 365

Midsize Business

Office 365

Enterprise

1FPP is sold to distributors, at retail, and through OEMs. OEM channel will resell subscription as an FPP license (not an DOEM license)

Office 365 Midsize Business

Office 365 Small Business Premium

Office 365

Enterprise E3

Ad

vance

d

Serv

ices

Sta

nd

ard

Serv

ices

Offic

e

Office Web Applications

IM, Collaboration, Storage, Email

Seat targets 1–10 11–250 >250

Support

IT Administration Console

Voicemail, Archiving, Data Loss Prevention

Rights Management

Full Office

Click to Run Deployment

Active Directory®

Commitment Annual Annual

Price (annual) $149 $180 $240

Basic Expanded Full

Basic Expanded Full

Pull Pull Push

Basic Expanded Full

Basic Expanded Full

Pull Pull Push

Topline revenue

Upfront margin

Topline revenue

Upfront margin

Compensation

Advisor fees for

POR on direct

purchases only

Advisor fees for

POR on direct

purchases only

Advisor fees

FPP

Open

Open ValueOpen Value Subscription

Channel / price list

Physical via FPP, POSA & ESD

Digital via VLSC

DistributionSKU

Midsize Business

Small Business

Premium

Topline revenue

Upfront margin

Advisor fees for

POR on direct

purchases only

Add seats

Extend seats

Add Partner of Record (POR)

New FPP customer

New Open customer

Office 365 Small Business Premium (SBP)

Amanda, a small business owner, buys Office 365 Small Business Premium from a Reseller or Retailer.

The Office 365 FPP purchase experience

Partner purchases Product Key via FPP

End customer purchases Product Key from Partner

End customer redeems Product Key on office.com/setup365

Product Keys can be used for new accounts, additional seats, and renewals.

ACQUIRE

End customer purchases Product Key from Partner

98765-98765-98765-98765-98765

Office 365 Midsize Business (M)

Victor is a IT consultant at Montero Managed Services with a large base of SMB customers.

He sells Office 365 Midsize Business plus his managed services to Fabrikam Inc.

The Office 365 Open purchase experience

Partner purchases from distributor

Partner redeems Product Key on office.com/setup365

Product Keys can be used for new accounts, additional seats, and renewals.

Partner retrieves digital Product Key through VLSC

Disti orders from Open Price List

Partner orders Product Key from Disti via Open

Customer orders from Partner

Microsoft sends welcome email

Office 365

MidsizeBusiness

Microsoft

Partner and Customer

Customer signs agreement & Partner retrieves Product Key from VLSC

Open/FPP – Add 1 user

Manage & purchase licenses

Experience not final. Screens subject to change

http://www.office.com/365

Enter Product Key

Open/FPP - Extend all users



Enter Product Key

Experience not final. Screens subject to change

Welcome to Office 365 Midsize Business!


Add Partner of Record





Office 365 Midsize Business $15.00



Manage & purchase licensesManage & purchase licenses



Microsoft Office 365 Midsize Business

$15.00 $225.00

$225.00Microsoft Office 365 Midsize Business

$15.00 $225.00

$225.00







$15.00 $225.00

$225.00

Montero Manage Services

3647831







$15.00 $225.00

$225.00Microsoft Office 365 Midsize Business

$15.00 $225.00

$225.00

Montero Managed Services

Customer buys new

product key from Open

and redeems online

Customer purchases

seats directly on MOSP

Advisor sends customer

order via MOCP,

customer pays directly

• Must be listed as POR to receive notifications & fees on direct purchase.

• Advisor fees are not paid for Product Key purchases.

• Users added midterm will result in a single new end-date for all users.

• Customers can utilize Credit Cards and Product Keys on the same account.

• A separate Product Key is required for each user when extending a subscription.

• A subscription cannot have more than two years of service outstanding.

• No cancellation or refund. Service continues until end-date. business policy

subscription management

partnerexperience

Users

Devices

Thank youQ&A

Market Response

Salesforce Netsuite Concur RightNow

Annual Revenue $2.85b $288m $440m $216m

Revenue Growth 36% 28% 26% 23%

Employees 6,352 1,084 1,200 920

Customers 104,000 7,200 10,000 1,900

Market Cap $24.1b $4.77b $3.92b $1.44b

Valuation Multiple 8.46 16.56 8.91 6.62

Market Response

36% 28% 26% 23%

1.7% 1.4% 5.4% -1.7%

$43 20%

17

$3-10k $140/mo >50%+

Benefiting from the

Snowball Effect

The Annuity Model

Increases LTV once you

pass the break/even point

Annuity Model

+61%

Gross Margins on Billable Services

average ~40% while Managed

Services and Packaged IP are closer

to 60%

Driving Higher Margins

with Consistency

Annuity Model

+141%

Summary

Repeatability

Annuity

Multi-workload

Partners want an economic model similar to their current one

Partners want to own the billing relationship

Partners want to sell as they do today

Office 365 SKUs are classified as “growth” products

Certain partners are eligible for these sales incentives

6%1-10 Users

11-250 Users

50%

50%

The incentives for Office 365 Midsize Business Suite and Small Business Premium will be paid within the standard

Commercial Distribution and Managed Reseller incentives.

–

=

+

=

Reseller Sales Price

Disti Sales Price

Margin from Sale of O365

Partner Incentives(Rebates & Accelerators)

–

=

+

Total Margin to Partner

=

Partners set sales price for Office 365 Small Business Premium &


Partners must meet minimum requirements to qualify

Year 1 Year 2 Year 3 Year 4 Year 6Year 6Year 5


Office Open L Non-Annuity

Year 1 Year 2 Year 3 Year 4 Year 5

O365 Margin

$180 (ERP)

O365 Margin

$180 (ERP)

O365 Margin

$180 (ERP)

O365 Margin

$180 (ERP)

O365 Margin

$180 (ERP)

Year 1 Year 2 Year 3 Year 4 Year 5

O365 Margin

$180 (ERP)

O365 Margin

$180 (ERP)

O365 Margin

$180 (ERP)

O365 Margin

$180 (ERP)

O365 Margin

$180 (ERP)

Fixed Payments

Variable Payments

Cloud Essentials

16%4% Manage(recurring)

12% Sell

1–149 seats

Incentive Overview

Cloud Accelerate

4% Manage(recurring)

12% Sell

150–499 seats

20%Accelerator

Baseline incentives for

initial sale and ongoing

management

Tiered accelerator

incentives based on

annual seat counts


12% Sell

500-2,499 seats

22%

Accelerator


12% Sell

2,500+ seats

23%

Accelerator

Little to no capital

costs required

Fixed payment

structure

More predictable

revenue stream

Own the

customer

billing

Use existing

systems and sales

motions

Increased upsell

and attach

opportunities

Advisor

Office 365 Open & FPP

Evaluate your current customers to look for clusters of expertise and packaged offerings

Understand the economic and organizational impacts of Office 365 Open / FPP on your business

Review your current pipeline to see where you can sell Office 365 today

Thank youQ&A

Operations Deep Dive

End CustomerHelp

activate O365

66

67

Year 1 Year 2

What should a partner order to activate 35

seat organization?

Product PO Quantity O365 Seats

Subtotal

OFFICE 365 M 1-SEATOFFICE 365 M 5-SEATOFFICE 365 M 25-SEATOFFICE 365 M 50-SEAT

1

2

25

10

35

35 seats (users) will be activated together as one

O365 Subscription

How many keys are there on VLSC to be

redeemed to activate 35 seat organization?

Product PO

Quantity

O365

Seats

Subtotal

Keys from VLSC

OFFICE 365 M 1-SEAT

FFICE 365 M 5-SEAT 2 10

OFFICE 365 M 25-SEAT 1 25

OFFICE 365 M 50-SEAT

35

1

2

3

3 keys can be redeemed at office.com/setup365

Contoso is an Open Value Customer. They have

organization-wide commitment to deploy Office Pro

Plus and CAL Suite for all of their 35 desktops.

Mid-term of the agreement they want to migrate to

Office 365. Contoso also hires 5 new employees to

whom they want to deploy O365.

Let’s begin!

Ad-hoc PO

O365 Qty. 35

July 1, Yr. 1

Year 1 Year 2 Year 3

Year 1 Order

Office Qty. 35

CAL Qty.. 35

Jan 1, Yr. 1

July 1 Yr. 1 – June 30, Yr. 2

Activated July 1, Yr. 1

Activated Aug 1, Yr. 1

Ad-hoc PO

O365 Qty. 5

Aug 1

Aug 1 thru July 4th, Yr. 2

Year 2 Order

Jan 1, Yr. 2

Year 3 Order

Jan 1, Yr. 3

Q. How does the O365 subscription end date get calculated when I add new seats?

A. Policy: Service time will be distributed evenly across all users to maintain coterminous end-date for simpler renewal process.

Calculation: • 5 added seats X 30 extra days = 150

days worth of O365 subscription

• 150 days / Total 40 seats = 3.75 days.

Round up to the next whole day 4 days.

Note: In Open, License ID is assigned per PO. In OV/OVS, it’s the same as Agreement Number.

This test order had…

Qty. 11 of Office 365 M 1

Seat


Seat


Key Redemption Demo

Redeem Key

Add Users

Max number of users

Duplicate Keys

Key can be used only once

Get Started with O365

Enter a Product Key

Add Key

Contact info

Admin Center

Licensing

Subscription Details

Add More Users

Licensing Page – Add Link

Enter keys

Redeem

Updated user license quantity

300 Max number of user licenses on M

Offer

Duplicate Keys not allowed

Duplicate keys throw error

Key can be used only once

Error on reuse

Users

Devices

Thank youQ&A

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