Small Business Specialists Community Hits 20,000

I checked the number with a Microsoft spokesperson, who confirmed that it was correct and current (about three weeks old).

Small Business Specialists are a subset of Microsoft partners. The designation is distinct from the Registered Member, Certified Partner and Gold Certified Partner levels of the program and denotes, obviously, companies with expertise in meeting the needs of small businesses.

Microsoft officials frequently point to SBSC as an example of something that's being done right, and say that other areas might be appropriate for SBSC treatment -- such as, say, an Enterprise Specialist or a Public Sector Specialist. That kind of specialization has been mentioned as a possible part of the Microsoft Partner Program overhaul that the Microsoft Worldwide Partner Group is working on.

The SBSC program's growth, while impressive, hasn't been as fast as Microsoft had hoped. Launching SBSC in July 2005, Microsoft had hoped to hit 20,000 members worldwide by 2007. By July 2007, however, the program had 12,800 members. Judging by the new numbers, growth is slower but steady and strong -- giving Microsoft one of the most formidable stables of SMB-focused partners in the industry.

Posted by Scott Bekker on March 31, 20090 comments

Partner's Guide to SQL Server 2008

Analysts estimate that customer adoption of SQL Server 2008 is in the single digits of the SQL Server install base. By talking to leading-edge partners, Rich identified a few key areas that may help you gain traction as you look to capitalize on SQL Server 2008's likely expansion among the install base and beyond. One is to help customers figure out how to grow underutilized SQL Server implementations. Another is to match new capabilities in SQL Server 2008 with customers who have a commitment to mobile applications. A third is to help customers understand the ways they can improve their profitability through use of the database's new and improved business intelligence capabilities.

Check the report out in our Tech Library here (free registration is required).

Posted by Scott Bekker on March 30, 20090 comments

BearingPoint Breaking Up

BearingPoint Inc., which filed for bankruptcy in February, is now making arrangements to sell off "substantially all" of its businesses to competitors.

In a statement this week, McLean, Va.-based BearingPoint announced an agreement to sell its Public Services business to Deloitte for $350 million and a non-binding letter of intent to sell its Financial Services segment to PricewaterhouseCoopers (PwC) LLP for $25 million. BearingPoint is also in negotiations to sell its Japanese consulting practice to a PwC subsidiary in Japan.

Those deals and a number of other regional deals that BearingPoint management is negotiating would all have to be approved by the bankruptcy court.

The management and technology consultancy, which lost $30 million on revenues of $801 million in the third quarter of 2008, is one of the largest Microsoft Gold Certified Partner companies. Of its 15,000 employees, more than 2,000 have Microsoft training.

The recession hasn't helped BearingPoint, but the company's problems stem from debt built up during an acquisition spree from 1999 to 2002 as the company was being spun off from KPMG LLP.

BearingPoint spent all of 2008 trying to find a buyer. Despite negotiations with 25 potential suitors, the company couldn't reach a deal and filed for Chapter 11 reorganization ahead of an April 15 deadline to pay off $200 million to creditors and a probable delisting from the New York Stock Exchange.

In a sad tie-in to current events, The Wall Street Journal reported Wednesday that BearingPoint is seeking separate bankruptcy court approval to pay $10.7 million in bonuses to a dozen top executives, including BearingPoint CEO Ed Harbach.

Posted by Scott Bekker on March 26, 20095 comments

A Gap in IT Financing

Nearly half of the 43 channel companies responding to a February IDC survey reported having more trouble getting customers financed through IT leasing and financing sales programs. Among smaller partners, the percentage rose to 73 percent, according to IDC's survey.

Similarly troubling were IDC's numbers when asking whether channel providers had access to enough capital to continue "business as usual." Eleven percent of channel partners reported that they didn't have access to that kind of capital. For resellers with annual revenues of less than $5 million, that number increased to 20 percent. It's a small sample, but that's a pretty large percentage of partner companies on the brink of financial disaster.

Let me know how you're feeling the pinch at [email protected].

Posted by Scott Bekker on March 26, 20090 comments

Dell Brings in Distributors

The distribution deal is a major change to the PartnerDirect channel program that Dell launched in December 2007, in what was widely seen as a serious effort by Dell to overcome its reputation as a channel dilettante (or worse).

One of the major talking points for PartnerDirect at launch was the idea that Dell would leverage its direct-to-order supply chain to the channel's advantage by shipping directly to channel specs, removing the middle man (distributors) and distribution's cut of any profits.

The meme was still alive as recently as Feb. 4, when a posting by Rev2 Technologies Co-Founder Steve Brown enjoyed prominent placement on the Dell Channel Blog. In the posting, the Santa Clara, Calif.-based Dell reseller sang the praises of Dell's direct capabilities for the channel and reeled off a list of the shortcomings of distribution.

The Tech Data-Ingram Micro deal partially undermines the anti-distribution argument, which is part of the justification for the "direct" part of the name of Dell's partner program, PartnerDirect (emphasis mine). I say "partially" because Dell will still offer direct sales to partners in addition to the distribution options, which for now cover SMB-oriented products.

The deal is obviously a huge win for the distributors. Now there's no longer a heavyweight in the channel trying to go it alone and challenging the entire distribution model.

I think it's a win for partners, as well. Dell's "direct to channel" meme doesn't seem to have been a major reason for all the partners who've been signing up for Dell's program in the last year. Mostly solution providers seem to have wanted the option to offer systems their customers demanded without concern that Dell would swoop in -- cutting them out of the deal and stealing their customers.

In announcing the program, Greg Davis, vice president and general manager for Dell's Global Commercial Channels, said the change was driven by partner requests. "Our partners value Dell's ability to custom-configure IT, but they're telling us there are times when customers' needs are more urgent, and this agreement shows our commitment to act on feedback from partners," Davis said in a statement.

By backing into distribution this way, Dell is immersing itself more deeply into the traditional channel structure that solution providers are comfortable with. And by committing to offer products at the same price through distribution as through its direct model, Dell is putting some "skin in the game" by giving up a few points of margin to the channel.

To me, those are two more signs that Dell's commitment to the channel model remains pretty strong. What's your take? Let me know at [email protected].

Posted by Scott Bekker on March 25, 20091 comments

D&H Offers Credit to SMB VARs

The 90-year-old Harrisburg, Pa.-based firm this month announced $38 million in new credit for up to 4,000 VARs and systems integrators who serve customers with fewer than 100 employees. The math works out to about $9,500 per VAR or SI, although dollars available to individual resellers should be much higher because not all D&H resellers will use the program.

"Our [reseller] customers are reaching out for support," said Mary Campbell, vice president of marketing at D&H, in a statement.

D&H, which is an Authorized Microsoft Distributor and an Authorized Microsoft OEM Distributor, calculates that its two-tier credit program could generate a 10 percent to 20 percent increase in sales within its target market. The company is also launching virtual events for SMB VARs to connect with a handful of top-tier manufacturers and offering in-person seminars to help VARs make their businesses more efficient.

According to Rob Eby, vice president of purchasing at D&H, the financing could help VARs pursue new opportunities in the national economic stimulus bill, especially in education, health care and municipal government. An IDC report released last week estimated that health care-related technology spending generated by the stimulus bill would amount to $21 billion over the next five years. Much of the spending would be on the move to digitize medical records, a project that could create technology reseller opportunities in thousands of medical offices around the country.

Right now, any boost in credit can save a deal, making D&H's move welcome. If it helps solution providers find creative ways to mine the SMB opportunities buried in the stimulus bill, all the better.

Posted by Scott Bekker on March 24, 20090 comments

Microsoft SSA Referral Fees Jump to 45 Percent

Microsoft launched SSA in July 2006 for Registered Members who earned the Security Solutions Competency or had equivalent expertise. The initial deal offered 20 percent to 30 percent referral fees to partners to spur sales of Microsoft's Forefront and Antigen products.

Now through the end of Microsoft's fiscal year (June 30), Microsoft is raising referral fees for partners to as much as 45 percent of the security deal size. The fees come when the security software sales are included in the same invoice as a sale of other Microsoft products, such as Windows Vista, Exchange Server or SharePoint Server. Microsoft is also throwing in partner goodies for sales, such as a GPS, home theater system, camcorder and digital camera.

Potentially moderating the value of the referral fees for partners are simultaneous customer discounts of 15 percent to 30 percent to generate new business.

Microsoft's image in the security market got muddy on Nov. 18, when the company announced it would stop selling the consumer-oriented Windows Live OneCare in the second half of 2009 and would replace it with a free anti-malware offering code-named "Morro."

At the time, analysts at Gartner warned their enterprise customers not to read too much into the consumer move. "Microsoft's exit from the standalone consumer security business should not be interpreted as a lack of commitment to research labs and security products for the enterprise space. We believe Microsoft will remain committed to its labs and endpoint security offerings through at least 2012," analysts Arabella Hallawell and Neil MacDonald wrote in a research note.

The analysts reported seeing an uptick in interest and pilots, despite a limited number of full production deployments, of Forefront Client Security.

Posted by Scott Bekker on March 20, 20090 comments

A Business Case for IE 8?

Do these features, or others, matter to your customers? Do you have any ideas for making these features matter to your customers? Let me know at [email protected].

Posted by Scott Bekker on March 19, 20090 comments

HP Offers 0% Financing to SMBs

The Palo Alto, Calif.-based computer giant is offering a financing option and a leasing option, both through its HP Financial Services subsidiary.

The financing plan offers zero percent interest spread over a 12-month term with a $1 payment to purchase the equipment at the end of the term. The leasing option is a zero percent, 36-month lease with an option to purchase at fair-market value at the end of the term.

To be eligible for the plans, purchases must fall between $1,500 and $150,000 in the United States. In Canada, the eligible purchase range is CDN$5,000 to CDN$150,000. The offer lasts through April 30. More information is available here.

As we've said time and again at RCP, alerting your customers to financing options is a solid tactic for surviving in a down economy. There's no interest rate as appealing to a customer as zero. The question, of course, will be, "Will your customers qualify for the credit?"

Posted by Scott Bekker on January 30, 20090 comments

MSPs for SOHOs?

Level Platforms this week announced that it has extended Managed Workplace to support Windows Home Server. According to Level Platforms, solution providers will be able to use Managed Workplace on Windows Home Server to monitor servers, PCs, network devices, printers, IP telephony and Windows-based applications. The combination is also supposed to allow alerting, asset management, remote control, patch management, backup and recovery, security, reporting and other functions.

Posted by Scott Bekker on January 29, 20090 comments

Watson Sends Partners a Letter on the Economy and Azure

A Letter to Partners from Corporate VP Allison Watson

Help Customers Prosper in Today's Economy
I wanted to reach out during these turbulent economic times for two important reasons. First, I would like to emphasize that it is more important than ever for Microsoft and its Partners to remain aligned in supporting our mutual customers. The economic downturn is putting many segments under increasing pressure, making it critical to find new ways to reduce costs and inefficiencies. Second, at our Professional Developers Conference (PDC) in Los Angeles in October, we announced new technology previews of our Software plus Services strategy.

I have heard from many of you in the last few weeks and am truly inspired by your stories of passion for and dedication to customers -- Thank You! Through our collective knowledge, expertise, resources and partnership, we are uniquely positioned to help customers across the globe drive down costs and continue to thrive.

While no one can predict the future, Microsoft is continuing to invest in the research and development of technologies and products that will ignite business innovation moving forward. Together, we can offer Low-Cost yet High-Performance solutions that enable customers to gain competitive advantages in a tough marketplace.

Economy and Reducing Customer Cost
We need to begin each customer conversation with how we can help them save money. I encourage you to take every opportunity to demonstrate the significant savings and value customers can realize when they work with a Microsoft Partner. I want you to focus on how you go to market and talk to your customers about solutions. We want you to reach out to Technical Decision Makers and explain the costs and performance benefits of Core Infrastructure Optimization, Application Platform Infrastructure Optimization and Business Productivity Infrastructure Optimization. We know that you are talking to Business Decision Makers (BDMs), and they want to know how they can save money and be more productive in Sales, Marketing and Finance. Last, how can you reach out and drive Information Worker productivity so your customers can focus on making their core business as productive as possible?

To help foster this, we have assembled a list of the ways you can save customers money today by helping to guide and leverage their IT investments.

First, how can you help your customers' Technical Decision Makers become organizational heroes by reducing costs through Core Infrastructure Optimization?

1. They can lower desktop deployment and management costs using the Microsoft Desktop Optimization Pack.
   
   
2. Ensure you and your customers are using Windows Vista to run their businesses in an operating environment that lowers deployment, energy and maintenance costs. A tremendous side benefit is the increased productivity of their workforce.
   
   
3. Microsoft System Center delivers a significant cost reduction for server ownership by improving datacenter operations management.
   
   
4. Infrastructure Optimization tools offer Technical Decision Makers models and scenarios to identify ways to drive down costs.
   
   
5. Reduce your customers' IT complexity, lower total cost of ownership and improve efficiency. Microsoft virtualization solutions and the Integrated Virtualization ROI tool.
   
   
6. Use Deployment Solution Accelerators to deploy the solutions customers already own to get the maximum value from their IT investments.

Second, how can you help customers achieve higher productivity and increased efficiency through Application Platform Infrastructure Optimization?

1. SQL Server 2008 is here, and together with the NEW Microsoft Application Platform Agreement, there is an opportunity to broadly standardize our customers across all of their database needs and drive transaction volume projects up with no additional license investment.
   
   
2. Windows Server 2008 operating system, with its built-in Web and virtualization technologies, enables you to help customers consolidate more applications on fewer Servers, optimize their hardware spend and require less physical space. In-built middleware and interoperability creates opportunity to have conversations about how more applications than ever before run on this platform, reducing support and maintenance of dual platforms.

Third, reduce costs and increase performance using Business Productivity Infrastructure Optimization.

1. Microsoft Online Services relieves Technical and Business Decision Makers from the burden of managing and maintaining business systems, freeing IT departments to focus on initiatives that can deliver true competitive advantage.
   
   
2. Reduce travel, meeting, real estate and facilities, and communications costs, while leveraging a platform that fosters increased productivity through collaboration with Microsoft Unified Communications Solutions.

Fourth, how do we drive competitive advantage and take out costs for BDMs? With Microsoft Dynamics, which helps customers drive Sales, Marketing, Finance and other core business activities at lower costs and higher productivity.

1. From streamlining administrative procedures like invoicing to producing needed financial reporting, or freeing up capital through better inventory management, Microsoft Dynamics ERP solutions automate and bring together business-critical operations to produce maximum efficiency and productivity and reduce costs.
   
   
2. Microsoft Dynamics Sure Step offers rapid implementation projects that can help streamline implementations and deliver a quick return on investment.
   
   
3. Tight integration between Microsoft Dynamics and other familiar Microsoft tools, such as Microsoft Office, drives seamless interactions with existing applications and helps customers avoid significant ongoing costs.
   
   
4. Now, more than ever, your customers need to recruit new and retain existing customers with an incredible focus on satisfaction as well as real precision with marketing automation. Microsoft Dynamics CRM provides this along with better methods to precisely track revenue to deliver top line results.

Last, here are two offerings to directly contribute to the bottom line now and help drive customer decisions.

1. Help qualified customers use Microsoft Financing in 15 markets to finance 100 percent of their IT purchases, so they can refocus tight budgets to grow their businesses. With credit markets tight, this is an especially useful tool.
   
   
2. Microsoft Software Assurance for Volume Licensing and the Forrester ROI tool enable your customers to leverage maintenance benefits to get the most from their software investments.

As you can see, this list, while detailed, represents only a fraction of the ways that Microsoft can save your customers money in a time when every dollar of the budget is critical and at the same time can help them drive profitability by maximizing every business opportunity.

Professional Developers Conference Announcements
At PDC, we announced the availability of an early preview release of a new technology called Windows Azure. Windows Azure will enable developers to build applications that extend from the cloud to the enterprise datacenter and span the PC, the Web and the mobile phone.

For the first time, we shared pre-beta code for Windows 7 and for Windows Server 2008 R2. Windows 7, which is the next version of the Windows desktop operating system, will take advantage of software and hardware advances to help eliminate the boundaries between information, people and devices. We also previewed Office Web applications, which are lightweight versions of Word, Excel, PowerPoint and OneNote that are designed to be accessed through a browser. Office Web applications will be part of the next version of Office and will enable people to view, edit and share information and collaborate on documents on the desktop, the phone and in a Web browser in a way that is consistent and familiar.

Windows Azure is part of the Azure Services Platform, a comprehensive set of storage, computing and networking infrastructure services that reside in Microsoft's network of datacenters. Using the Azure Services Platform, developers will be able to build applications that run in the cloud and extend existing applications to take advantage of cloud-based capabilities. The Azure Services Platform provides the foundation for business and consumer applications that deliver a consistent way for people to store and share information easily and securely in the cloud, and access it on any device from any location.

Windows Azure is not software that companies will run on their own servers. It's something new: a service that runs in Microsoft's growing network of datacenters and provides the platform that helps companies respond to the realities of today's business environment, and tomorrow's. Windows Azure technologies are already finding their way into products such as Windows Server 2008 and System Center Virtual Machine Manager, enabling organizations and Microsoft partners to create their own cloud infrastructure.

Windows Azure will enable organizations to respond to realities such as the need to use the Web to provide customers with comprehensive information and to interact with an audience that has the potential to expand exponentially overnight; to integrate operations with partners -- and sometimes even competitors -- to meet customer needs; to add new capabilities quickly to respond to new opportunities; and to enable employees to work efficiently and effectively no matter where they are. These realities apply not just to businesses, but also to organizations of all kinds: schools, governments, community groups and more.

What Can You Do to prepare to Take Advantage of the Azure Opportunity?

• Learn Azure Platform Services. To learn more visit the Microsoft Partner Program Azure Services Platform site.
  
  
• Register for the Azure Services Platform Community Technology Preview.
  
  
• Download the Azure Services Platform SDKs.
  
  
• Learn more through tools such as Azure Services Platform Case Studies and Azure Services Platform White Papers.
  
  
• Participate in the Azure Services Platform Community through methods such as:
  - Engagement in the Azure Services Platform Forums and Blogs.
  - Attendance of Azure Services Platform Events and Webcasts.

With Business Productivity Online Services available live in the U.S. on Nov. 17 and rolled out internationally in the second half of the year, What Can You Do to help your customers take advantage of the full range of Software plus Services offerings?

• Continue to learn about Microsoft Online Services.
  
  
• Learn more by signing up at QuickStart for Microsoft Online Services.
  
  
• Sign up for the Business Productivity Online Services Beta at https://mocp.microsoftonline.com.
  
  
• Understand and Embrace the Software plus Services Transformation.
  
  
• Visit the Software plus Services 100-level training and learn more about Software plus Services.
  
  
• Learn more with the Partner Evolution Guide. The tools and resources available there, such as the Profitability Modeler will help you evolve your business with services.

I think you will agree with me that we have the right products, at the right value, with the right message to help serve customer needs in this time of economic instability. Go out, have those conversations about cost and productivity, and show how Microsoft Partners can give them the advantage. Learn about and embrace the Software plus Services transformation, and pass the vision on to your customers!

As always, I look forward to hearing from you. Please send me an e-mail, and let me know how you are helping customers save money and how Microsoft can support your success. Together, we will continue to help our customers reach their true potential.

Best regards,

Allison L. Watson
Corporate Vice President
Worldwide Partner Group
Microsoft Corporation

Posted by Scott Bekker on November 13, 20080 comments

Reorg in Microsoft's U.S. SMS&P

Friday was the last day for Craig McCollum, vice president of Dynamics Sales. According to a company spokesperson, McCollum "has made the decision to leave Microsoft to spend time with his family and pursue other career opportunities both inside and outside the business applications industry."

McCollum was hired in September 2004 for the job of establishing the sales strategy for the Dynamics unit and its channel partners. He brought deep experience in business applications to Microsoft. He came to the company from a senior vice president and general manager role at Best Software Inc., a division of Sage Group plc. Previously, he held senior managememnt positions at FieldCentrix Inc. and Lawson Software.

David Willis, a 16-year Microsoft veteran, is McCollum's permanent replacement and started in the new role on Monday. Up until this week, Willis was vice president for the East Region of the U.S. SMS&P. He'll continue to work out of his New York office.

In his new role, Willis reports to Park, although he also works closely with the Dynamics business group run by Kirill Tatarinov. Willis inherits a U.S. Dynamics sales operation that was reorganized on July 1.

West Region Vice President Margo Day, a former vice president of the U.S. Partner Program, will cover both East and West regions until a replacement is found for Willis, the spokesperson said.

Posted by Scott Bekker on October 07, 20080 comments