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An Evolving Channel in the CloudSteven MartinGM, Windows Azure Marketing & Operations
| EMEA Channel Partner Conference 2014
Partner channel was primarily transactional
We were busy winning the hearts and minds of the IT professional (sold directly to IT)
Large transaction incentives for resale
A little about meI started out as a SQL Server VAR
| EMEA Channel Partner Conference 2014
App services
Data services
Infrastructure services
SQL database HDInsight Table
Blob storage
Virtual machines
Virtual network VPN
Traffic manager CDN
A little about Azure
Mobile servicesCaching Identity
Integration
Service bus Media HPC AnalyticsWebsites
Cloud services
| EMEA Channel Partner Conference 2014
Companies of all sizes
Small
Large
System IntegratorsDistributors ResellersISVs/CSVs
Alignment across all businesses
Microsoft | EMEA Channel Partner Conference 2014
Services
Channel Incentives
Azure in EA – Drive for SimplificationCatego
ryChallenge Change What this means for customers
Pricing• Commitment discount was the product
of VL price level (A-D) and commitment volume(Tiered discount in portal)
• Removal of tiered discounts for Monetary Commitment
• CPS shows actual price and invoice confusion is eliminated
Pricing • Higher usage rates in place for consumption of Azure in excess of monetary commitment
• Removal of Overage Pricing
• Commit SKU Price = Overage SKU Price• Adoption of Windows Azure without risk
Sales
• 12 month order required at anniversary each year.
• Challenges in top-up coverage alignment
• Same service alignment Challenges• Inconsistency with all other OLS
offerings
• Removal of 12 month subscription term
• Reduced credit and rebills• Eliminated confusion when topping up• Increased flexibility with less manual touch• Alignment with all other OLS offerings
Sales• No flexibility when ordering
coterminous, risk of overcommitting and losing money
• Inconsistency with all other OLS offerings
• Added option to increase or decrease commitment at anniversary
• Minimize customer risk • Alignment with all other OLS offerings
Pricing• Future Pricing table more than 50% of
an Azure CPS• Large manual effort to enter all future
SKU’s
• Removal of Future Pricing Table on CPS, now optional
• Future pricing table only required now for discounting• Portal records/manages prices, reducing risk of ops
errors/corrections
Operations• (SSA) Same Service Alignment Bug
generated large volumes of credit and rebills to correct Azure coverage periods
• SSA bug resolved • Elimination of credit and rebills to fix incorrect coverage dates generated by system
Reducing order complexity in Azure program ● Reducing order corrections for Azure customers ● Driving broad activation of Azure by EA customers ● Providing friction free access to Azure for EA customers ● Aligning Azure to EA purchasing motion ● Helping customers understand their Azure needs
| EMEA Channel Partner Conference 2014
Business momentum
54%Fortune 500 companies signed up for Windows Azure
>1000New customers a day
35%Of all utilized revenue associated with Partners
2XGrowth of MSDN penetration since July 2013
2XCompute and Storage growth every 6 months
148%Windows Azure YoY
revenue growth
54%Fortune 500 companies signed up for Windows Azure
>1000New customers a day
35%Of all utilized revenue associated with partners
2XMSDN growth since July 2013
2XCompute and Storage growth every 6 months
148%Windows Azure YoY
revenue growth
Microsoft | EMEA Channel Partner Conference 2014
Services
Channel Incentives
Windows Azure Global Footprint
724 x 7 x 365 support. 90 markets worldwide. >$1bn invested in Azure expansion in 2014
| EMEA Channel Partner Conference 2014
The partner channel is the key to success
Apps are going SaaS (both packaged & custom)
We are going to the cloud (fast)
2012
2013
2014
# of Azurecustomers
We know a few things about the future of compute:
1 2 3
LOB IT Mgmt Vertically Specific
Finance Marketing CRM
| EMEA Channel Partner Conference 2014
| EMEA Channel Partner Conference 2014
We are committed to reducing operational and pricing
complexity, and maximizing agility for systems connected
to Microsoft.
This evolution is designed to enable success without
negatively impacting your bottom line
New realities — Evolving Channel
Partners are beginning to host solutions for customers
Customers are relying more on Distributors for value-add
Majority of revenue generated by channel
I have a new word for Partner…
Customer.
| EMEA Channel Partner Conference 2014
Supporting LOB directly
Providing “first-call” support
Cloud capability as the “door opener”
Supporting IT’s “big picture” role
Continued annuities
Billable packaged services
SSAS— Solutions & Sales, As a Service
The partner of the future: Hosted solutions for customers
New relationships
New business model
| EMEA Channel Partner Conference 2014
Provide your feedback on the sessions through the Conference App and be eligible to win one of five Nokia Windows Phone
8
Visit the Conference App now at partnerconferenceapp.com
.
ALL Partners who provide feedback through the Conference App will receive a one year subscription to Office 365 Home Premium
Let’s Break New Ground Together.
© 2014 Microsoft Corporation. All rights reserved. Microsoft, Windows and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentations. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT CONFIDENTIAL – FOR PARTNER USE ONLY. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.
Thank you.