FD Insights Issue 13 | Page 18

Service the complete customer lifecycle Bill monthly if desired Directly provision customer subscriptions Meet a growing customer expectation of a cloud subscription model With in-product tools, directly manage and modify customer subscriptions Build a monthly annuity revenue stream Speed the sales cycle to get customers up and running quickly Which products can I sell in this programme? You can sell all major commercial suites and standalone products for Microsoft Office 365, Microsoft Intune, Enterprise Mobility Suite (EMS), Microsoft Azure, and Microsoft Dynamics CRM Online. What is the difference in channel incentive programs with Open, EA, and Advisor? Microsoft Cloud Solution Providers earn upfront margin through a wholesale price list. The Open, EA, and Advisor programs have channel incentive programs based on sales and/or performance. What are my risks? As a partner, you own the billing relationship and assume the credit and collections responsibility with your customers. Since you directly provision, monitor, and manage the subscription, customers will contact you with related provisioning, help, and how-to questions as well as all issues related to technical support. You must be able to provide quality 24/7 end-user support to varying call volumes. What are my revenue opportunities in the CSP model? You receive access to a wholesale price list that can recognize upfront margins at the initial sale and with every subsequent renewal, you have the opportunity to attach the initial deployment and migration services, ongoing maintenance, and support to every subscription. And because of your ongoing customer relationship, when a customer has questions or wants to make a change in their subscription, you will have a greater opportunity to drive adoption 16 | www.firstdistribution.co.za First point of contact for all customer needs Increased touch points help identify needs for new services and solutions No need differentiate Partner’s support from Microsoft’s services, customisation, and upsell. You can also consider financing customers’ initial deployment and migration services to spread upfront costs in exchange for a long term commitment for ongoing managed services. What prevents Microsoft from taking my customer direct? This program was designed to place partners at the center of the customer relationship. You own the billing relationship and are established as the first point of contact for your customers. Microsoft will not communicate directly with your customers about the services they purchase through you. When will Microsoft communicate directly with my customers? As a general principle the expectation is that partners manage the communications with their customers. Since you own the customer billing relationship, Microsoft will not send communications directly to customers related to their subscriptions. Microsoft may communicate directly with customers as it relates to operation of the service, such as important information on service incidents. Note that many customers have existing commercial relationships with Microsoft, and Microsoft will continue to communicate directly with these customers related to these other products and services. What happens if this doesn’t work for my business? Can I move my customers over to another model? Customers make a 12 month commitment that must be fulfilled. At the end of that period you can sell your customers an EA, Open, or Advisor model at your discretion.