Communications

New partner opportunities from Microsoft

9 July 2008

Microsoft has announced a new pricing and partner model for Microsoft Online Services, a key component of its software-plus-services initiative.

The new model, announced at the Microsoft Worldwide Partner Conference in Houston, Texas, applies to two new suites of subscription services, which can be sold together as a suite, or as standalone products with prices starting from US$3 (€1.91) per month. Partners selling the two suites will receive 12 per cent of the first-year contract value with a recurring revenue stream of six per cent of the subscription fee every year for the life of the customer contract.

Microsoft also announced its new Quickstart for Microsoft Online Services programme, to help partners obtain guidance for discovery, enrolment and activation of the two suites.

“Our vision is that everything you can do with our onsite servers, you will be able to do with our online services,” said Stephen Elop, president of the Microsoft Business Division. “For partners, it’s about the differentiated value they can deliver on top of our services, as well as providing them with an ongoing revenue stream. There is incredible partner opportunity at every level – integration, migration, customisation, consulting services and managed services. Microsoft Online Services provides stability and an opportunity to create long-term customer relationships.”

The new business model is open to all partners, and hosting partners that already participate in models like this will have expanded opportunities to offer choice and flexibility to their customers for online services of all types.