Business Builder For Cloud Services Small Business

Business Builder for
Cloud Services
Partner Opportunities in
the Small Business Market
(1-200 Employees)

This guide is primarily for partners that serve small-business This guide includes business opportunities for the following
customers with: Microsoft cloud services:
• Partner-serviced IT (no internal IT staff) • Basic online business productivity services • Windows Intune • Hosted versions of Microsoft Exchange
• 1-200 employees such as email, voice, storage, customer • Microsoft Exchange Online, Microsoft Server, Microsoft SharePoint Server, and
relationship management (CRM), accounting, SharePoint Online, Microsoft Office Microsoft Office Communications Server
• Limited IT security/identity management
and tax services. Communications Online, and Microsoft Office • Windows Azure, Microsoft SQL Azure, and
• A limited web presence
• Mobile phones Live Meeting Windows Azure platform AppFabric
• Microsoft Dynamics CRM Online • Windows Server 2008 R2 with Hyper-V
technology

You will find guides that address other customer scenarios, such as medium business, enterprise, and public sector, at https://partner.microsoft.com/cloudservices

Partner Opportunities in the Small Business Market

Table of The Cloud IT Requirements Capitalizing on Partner Making the Transition Calls to Action Opportunities in Other
Contents Opportunity the Cloud Opportunities to Cloud Services Customer Segments

The Cloud Opportunity 3 Executive Summary
4 The Cloud Opportunity and Customer Benefits

IT Requirements 5 Small Business IT Requirements

Capitalizing on the Cloud 6 Opportunities by Partner Business Model

Partner Opportunities 7 Reselling to Small Business Customers
8 Servicing Small Business Customers
Table of 9 Developing for Small Business Customers
10 Hosting Services for Small Business Customers
Contents
Making the Transition to Cloud Services 11 Understanding the Impact of Cloud Services
12 Making the Transition to Selling Cloud Services

Calls to Action 15 Calls to Action by Partner Type
16 Additional Resources

Opportunities in Other Customer Segments 17 Opportunities in Other Customer Segments
Small Business | Medium Business | Enterprise | Public Sector 18 Opportunity Overview for Resellers
19 Opportunity Overview for Systems Integrators
20 Opportunity Overview for ISVs
21 Opportunity Overview for Hosting Providers

Small Business Market https://partner.microsoft.com/cloudservices 2



Executive
Summary
This guide is designed to provide partners with an overview of the cloud services opportunity in the small
business market and the specific opportunities available to them. It covers the following topics:

Core information Business models
Calls to action
technology (IT) needs and cloud revenue
specific to
of small business opportunities in the
partner models
customers small business market

Small businesses are increasingly shifting parts or all of their IT to necessitates some changes in the way that you package, sell,
the cloud. By mid-2011, up to two-thirds of small businesses are resource, finance, and manage your business. This guide includes
expected to use some form of cloud service. By 2014, IDC expects action plans as well as resources that will help you launch or
the overall market for public IT cloud services to be worth enhance a cloud services practice.
over U.S.$55 billion, which is more than three times the 2009
Throughout this guide, “small business” refers to businesses with
estimated market worth of $16.5 billion.1 This IT transformation
partner-serviced IT (such as businesses without internal IT staff)
represents a huge market opportunity for partners, but it also
and approximately 1–200 employees.




The Cloud
Small business customers present a compelling opportunity for partners that offer cloud services.
Opportunity According to a study conducted for Microsoft by the Institute customers, such as communication, security, reliability, storage,
and Customer for Partner Education and Development, by mid-2011, as many
as two-thirds of all small businesses are expected to use some
and desktop management. However, small businesses lack the
resources of larger organizations, so they have a limited ability to
Benefits form of cloud service, depending on the market.2 Small-business make major capital investments in IT.
customers have many of the same basic IT needs as larger
This discrepancy between IT needs and resources provides partners opportunities to sell cloud services
for a number of reasons:
Lower initial capital Cloud services virtually eliminate the need for large infrastructure investment, allowing smaller
costs and predictable customers to obtain IT services without major capital expenditures. And because cash flow is a top
recurring expenses concern for many of these organizations, small businesses are ideal candidates for prepackaged
cloud solutions offered at predictable monthly rates.
Greater agility and The cloud provides greater agility and scalability to adapt to changing workloads and needs with
scalability high availability and quicker deployment.

Enhanced ability to focus Because cloud services generally result in lower IT expenses and greater capabilities, they allow
on other strategic initiatives businesses to place more focus on strategic initiatives.

Access to enterprise-class Cloud services provide small business customers with access to enterprise-class software that was
software and capabilities previously out of reach due to the financial and management resources required.




Many small businesses with partner-serviced IT have already adopted hosted email or cloud-based web
conferencing solutions, but they have yet to realize the full potential for integrating cloud services into
their existing IT infrastructure, or replacing it wholesale with cloud services. There is growing demand for
cloud services in this market in a number of areas, which include:

Hosted email migration
At the lower end of the small-business segment, most capabilities. Because many customers have hosted email
businesses are already using a hosted email solution. Here, solutions from local, smaller hosters, partners can focus on the
partners have the opportunity to provide a Microsoft hosted value and expanded capabilities available through Microsoft
offering for customers looking for enterprise-class email Exchange Online and Microsoft Exchange Hosted Services.

Collaboration and communication solutions
Small Business
IT Requirements Smaller organizations have not typically had the resources to
invest in and manage robust communication and collaboration
businesses are currently using, piloting, or planning to adopt
Software as a Service (SaaS) services for communications and
solutions. Thanks to the value and lower managerial overhead collaboration by mid-2011. This creates new opportunities for
of cloud services, many small business customers can now take partners to provide solutions based on Microsoft Online Services
advantage of enterprise-class solutions for these workloads. offerings such as Microsoft SharePoint Online, Microsoft Office
A study by Microsoft found that up to 70 percent of small Live Meeting, and Microsoft Office Communications Online.

Customer relationship management and line-of-business (LOB) applications
Small businesses are increasingly turning to customer relationship around Microsoft Dynamics CRM Online will be well-positioned
management (CRM) solutions to optimize their marketing, sales, to benefit from this growth potential. Partners can also sell
and customer support efforts. In a recent survey, Microsoft Small subscriptions to prepackaged line-of-business (LOB) applications
Business Specialist partners cited CRM as one of the two best that serve typical small business needs, such as add-on solutions
investments for growth in 2010. Partners that offer solutions to support marketing campaigns.

The cloud also opens up opportunities to up-sell customers from earlier Windows and Microsoft Office versions to the most current
versions, along with cloud innovations such as Windows Intune or Microsoft Office Web Apps.




Many Microsoft partners play multiple roles when serving their clients, bringing together sales, support,
application development, and IT expertise.
To take full advantage of the cloud opportunity, partners may For example, all partners that register to resell Microsoft Online
want to consider expanding their roles into new service areas. For Services are eligible for reseller commissions of 12 percent for new
example, systems integrators that have traditionally focused on subscriptions and 6 percent for recurring revenue. The evolution
application development may offer deployment and migration and growth of cloud services will offer partners even more ways
services, and infrastructure-focused systems integrators may to expand their businesses and better serve their customers. The
expand into developing repeatable intellectual property (IP) with following table provides an overview of business opportunities,
the Windows Azure platform. Regardless of business model, there suggested investments by partners, and a high-level summary of
are opportunities specific to the area you focus your business on. how Microsoft supports its partners in the cloud.

Business Opportunities Partner Investment Microsoft Support

• Recurring revenue • Marketing air cover
Solutions

Opportunities • Packaged solutions
• Marketing funds
• Cloud skills development • Internal user rights (IUR)
Sell

by Partner • Expanded services
• New markets and
• Revised compensation models • Pre-sales and deployment
support
• Hands-on experience
Business Model customer segments • Pre-sales training

• Repeatable IP • Shift investments from
• Market development
Solutions

• Faster deployment technical infrastructure to
marketing/sales skills • Marketing tools
Build

• Migrate solutions to the cloud
• Scale users • Rethink marketing mix • Pre-sales and deployment
• Faster, less costly testing • Grow channel by selling support
• Extended and customized through online application • Pre-sales training
cloud offerings marketplaces
Solutions

• Virtualization technologies • Marketing tools
• Extended product offerings
Host

• Consolidated technology • Pre-sales support
• Broader marketplace
platforms
• Increased wallet share • Pre-sales training
• Additional sales skills

Following is a more detailed list of opportunities in the small business market by partner business model. For an overview of
opportunities available to partners serving other customer segments, please see the Opportunities in Other Customer Segments
section later in this guide.



Increase Revenues: Generate Recurring Revenue Streams
Earn 6% recurring revenue with each customer, with one-time commission of 12% on all net new seats selling Microsoft Online Services and Windows Intune.
Sell CRM applications built on Microsoft Dynamics CRM Online via subscription.
Sell subscriptions to line-of-business (LOB) applications built on Windows Azure.

Packaged Solutions: Create Value-Added Solutions
Sell add-on desktop and PC management packages with Windows Intune, such as remote security monitoring services.
Sell value-added solutions to Microsoft Online Services such as Active Directory management.

Reselling Sell value-added solutions around LOB applications such as HR solutions built on Windows Azure.

to Small Business
Expand Services: Up-sell and Cross-sell
Customers Use Windows Intune to drive Windows 7 upgrades.
Attach Microsoft Online Services with Microsoft Office 2010 upgrades.
Up-sell installed Office 2003 and Office 2007 base to Microsoft Office Web Apps.
Up-sell peripheral devices with SharePoint Online and Office Communications Online.
Up-sell packaged solutions to existing managed services contracts.
“For every $1 we sell Target earlier versions of Microsoft Exchange Server and upgrade to Microsoft Online Services.
in Microsoft Online Target POP3 migration to secure email solutions based on Microsoft Online Services.
Services, we envision Cross-sell LOB applications such as business intelligence solutions built on Windows Azure.
up-selling at least $5 of
added services.”
-Andrea Giordano, Reach New Markets: Attach Services to Enable New Scenarios
Business Manager, Solvi Managed services packages with onsite and remote support.
Mobility solutions based on Office Communications Online.
Deskless worker solutions based on Microsoft Online Deskless Worker Services.




Servicing
Small Business
Customers Extend and Customize Cloud Offerings
Advisory services for evaluating cloud solutions.
Implementation support such as admin and user accounts creation and application testing.
Deployment and management of LOB applications such as financial reporting solutions built on the Windows Azure platform.

“Over 2009, about
Migrate and Integrate Solutions to the Cloud
5 percent of all
Support for migration of on-premises data to cloud applications such as Exchange Online, SharePoint Online, and Microsoft Dynamics CRM Online.
revenues came from
Application migration from on-premises deployments of Exchange Server, SharePoint Server, and Microsoft Office Communications Server to Microsoft
cloud services. We Online Services.
expect this to grow to Migrate email, contacts, and calendars to Microsoft Online Services.
15 to 20 percent of
our total revenue.”
Packaged Solutions: Managed Services, Support and Training
-Danny Burlage, Chief
Desktop optimization, desktop management, and security monitoring with Windows Intune.
Technology Officer,
Wortell User adoption and training for new cloud-based solutions for mobile workers, deskless workers, and branch/field solutions.
Break-fix, phone, and on-site support, including end-user and desktop support.




Developing
for Small Business
Customers
Rapid Development and Deployment
Cloud-based versions of existing applications built using Microsoft Visual Studio and other familiar tools.
Enhanced applications with social media, additional storage, and more computational power.
Mobile extensions of existing applications for anywhere, anytime access.
“With Windows Azure,
it took two developers
only two days to Extend and Customize Cloud Offerings
migrate our existing Enhanced storage for on-premises applications using Blob Storage in Windows Azure.
application to the cloud.” Collaboration and workflow solutions such as SharePoint calendaring applications.
- Edmund Gray, Lead
Developer, TradeFacilitate
Repeatable IP
E-commerce packages for online sales using Windows Azure platform AppFabric.
Off-the-shelf applications with standardized pricing on Windows Azure.
Standardized multitenant SaaS applications for hosting providers on the Windows Azure platform.




Hosting
Services for
Small Business
Customers Broaden the Marketplace
Build your own managed cloud infrastructure using Dynamic Data Center Toolkit for Hosters.
Sell hosted communication and collaboration services Exchange Online, SharePoint Online, and Office Communications Online.

“With hosting, we can
become a leading
Increase Wallet Share: Host Cloud Applications
technology provider in
Partner with independent software vendors (ISVs) to offer hosted standardized versions of LOB applications built on Windows Azure.
the Irish market. The
Partner with ISVs to offer hosted versions of vertical applications for specific industries such as financial services.
interest is growing, and
our recurring revenues
are steadily and Extend Product Offering: Add-On Services
continually increasing.” Offer “burstable” capacity and backup services with Microsoft SQL Azure provisioning on demand.

- Gerry Power, Add managed services on top of cloud services.
General Manager of Provide a development environment and tools with the Windows Azure platform.
ReadyDynamics.com, Sysco




The cloud services transformation represents a major opportunity for partners; however, you must also
rethink the way that you package, sell, resource, finance, and manage your business.
Successfully adding cloud services to your portfolio of offerings requires careful planning, combined with your experience and
knowledge about your customers and their needs. The following provides an overview of key considerations for partners developing a
cloud services business.

Compensation Partners should evaluate their compensation plans and consider making changes to align them with cloud
services. Some of the benefits of selling cloud services may include greater sales velocity, shorter sales cycles,
additional services opportunities, and multiple-year annuity commissions. Challenges may include lower
commissions for the initial transaction, and potential differences in the timing of compensation payments.

Understanding Cash flow As cloud services shift payments from one-time, up-front lump sums to recurring revenue streams,
cash flows will change. Establishing a financial plan based on your cloud services strategy of choice is a
the Impact of foundational element of a cloud services business.

Cloud Services
Scalable sales Instead of focusing on customized consulting and resource-intensive sales processes, partners should
consider offering standard, repeatable solutions that are sold via telesales and other methods that offer
and pricing broad reach at low cost. Similarly, a rate-card approach enables greater scalability than custom pricing.

New skills for The key to a successful cloud services practice is to provide services that add business value. If you have
not established a value-added services practice, it will be important to identify and build the skills and
value-added services capabilities necessary for providing cloud services. Partners that already offer value-added services can
make use of and augment existing skills to build a cloud services business.

Delivery mechanisms There are a number of ways that partners can deliver cloud services. For example, you can offer standard
packages of services (“managed services”) around Microsoft cloud solutions to keep your overhead
cost low while building recurring revenue streams. Another way to increase revenue is through vertical
integration, by offering additional value-added services such as outsourced solutions, where you manage
cloud-based IT infrastructure on behalf of customers. Partners can also offer services that span delivery
mechanisms—for example, partners can offer managed services as an add-on to outsourced solutions.




Making the
Transition to
Selling Cloud
Services
This section offers a few recommendations and Microsoft resources to help you launch a cloud services practice.

Define your cloud • Identify the Microsoft cloud services that are relevant to your business.
• Define your cloud services strategy around your core competencies; explore shifting and expanding your
services strategy competencies to meet customer needs around cloud services.
• Define solutions offerings and be able to articulate their value to both IT and business decision-makers.
• Identify efficient ways to deliver your solutions, such as managed services and outsourcing.

Prepare your • Based on the cloud services strategy you choose, evaluate the available skill set and identify gaps to
ensure that you have the appropriate resources to successfully execute your cloud services initiatives.
organization • Go to the Microsoft Learning Plan Tool to identify and enroll in sales and technical training.




Get started • Subscribe to the Microsoft Cloud Essentials Pack which includes resources to help partners learn about,
develop and sell cloud solutions.
• Find out more about Microsoft Cloud Accelerate, an exclusive program for partners that have a proven
track record of delivering Microsoft cloud solutions.
• Use the Microsoft Platform Ready program and visit the Windows Azure Partner Hub.
• Deploy the no-cost version of Microsoft Online Services for internal use that is offered to all Microsoft
Online Services partners.

Making the
Evaluate • Use the Partner Profitability Modeler Tool to customize financial models and determine your return on
Transition to investment (ROI) for Microsoft Online Services and Microsoft Dynamics CRM Online.
financial models
Selling Cloud • Use the Windows Azure Platform TCO Analysis tool to evaluate platform configurations and quantify the
costs of platform and on-premises application delivery.
Services
(Continued)
Build a foundation • Establish a dedicated cloud services practice with strong leadership.
• Define solution offerings and be able to articulate their value to IT and business decision-makers.
• Learn about how to activate customers and more with the Microsoft Online Subscription Program Guide
for Partners.
• Develop a stable, repeatable, branded methodology for customer on-boarding and for building cus-
tomer loyalty.
• Create cloud contracts and service-level agreements (SLAs).
• Assess your sales compensation plan.
• Plan for long-term customer relationships with strong account management.




Execute marketing • Invest in efficient marketing and demand generation by using tools such as search engine optimization
(SOE) and telesales to minimize your customer acquisition cost.
and sales • Provide sales and technical staff with ongoing training.
• Establish a customer trial management plan to drive a high conversion trial-to-paid conversion rate.
• Maintain customer relationships to build repeat and referral business, including defining a customer life-
cycle engagement plan to increase retention rate and reduce customer churn.
• Promote your solutions, applications, and services on Microsoft Pinpoint.
• Consider repeatable sales models with a rate-card approach such as the following example to reduce
Making the sales cycles and foster transparency:

Transition to
Sample Rate Card for Partner Cloud Services
Selling Cloud
Services Basic Package Advanced Package Premium Package
(Continued) Order on Behalf, Order on Behalf, Provisioning/Deploy,
Provisioning/Deployment, Provisioning/Deploy, Monitoring, Online Training, Control
Seats Monitoring Monitoring, Online Training and Compliance (per seat/month)
(per seat/month) (per seat/month)

1-25 $19.00 $48.00 $69.00

26-50 $17.00 $43.00 $66.00

51-100 $15.00 $37.00 $63.00

101-200 $13.00 $33.00 $60.00




The table below summarizes key actions that partners can take to build a successful cloud services business.

Reseller
• Resell Microsoft Online Services, Microsoft Dynamics CRM Online, and • Increase focus on customers with shorter sales cycles.
Windows Intune.
• Build and expand telesales and online marketing efforts with low
• Leverage up-sell and cross-sell opportunities (sell Windows Intune with Windows 7; customer acquisition cost.
resell Microsoft Online Services with Office 2010 and Office Web Apps).
• Integrate annuity revenue streams into planning and sales compensation.
• Package Windows Intune, Microsoft Online Services, and Microsoft Office
in standard quantities as packaged solutions for repeatable sales.

Systems Integrator
Calls to • Create a cloud migration offering for the solutions you currently offer. • Provide Core IO and BPIO offerings built on Microsoft Online Services.

Action by • Develop a rate card with by-person and by-seat engagements for
deployments to Microsoft Online Services.
• Migrate existing applications to Windows Azure and SQL Azure.
• Train staff not to distinguish between on-premises and cloud solutions,
Partner Type • Build a base of employees with expertise in cloud development, identity,
and security.
but rather to advise customers on the best solutions for their needs.

• Align resources to support managed services contracts based on Windows Intune.

Independent Software Vendor
• Build a Windows Azure application development practice. • Continually evaluate new features by testing with sample customers.
• Create cloud versions of existing applications. • Look at new potential geographies where you might offer your applications.
• Explore the creation of an applications marketplace and consider
developing resale channels such as hosting providers.

Hosting Provider
• Offer a wider range of hosted solutions such as Exchange Online, • Create and sell new packaged offerings.
SharePoint Online, and Office Communications Online.
• Market to developers looking for an on-demand development environment.
• Move further up the value chain to offer solutions such as data center
consolidation and disaster recovery.




The following resources provide more information about Microsoft cloud solutions and Microsoft partner support.
• The MPN cloud landing page provides access to cloud services • Microsoft Office Web Apps allows access to documents from
training and readiness resources. virtually anywhere.
• Microsoft Online Services is a family of services, also available • The Windows Azure platform supports applications, data, and
as standalone software, for communication and collaboration. infrastructure in the cloud, giving institutions the flexibility to
Microsoft Exchange Online delivers email with protection, plus run applications—or just store code or data—in the cloud, on
calendar and contacts. Microsoft SharePoint Online creates a premises, or with a combination of both. The platform also
highly secure, central location for collaboration, content, and includes Microsoft SQL Azure technology platform, a cloud-
workflow. Microsoft Office Communications Online provides based relational database service built on Microsoft SQL Server
Additional real-time, person-to-person communications through text, that offers highly available, scalable, multitenant database
voice, and video. Microsoft Office Live Meeting delivers hosted
Resources web conferencing.
services. Software developers can use Windows Azure Tools for
Microsoft Visual Studio to create, configure, build, debug, and
• Windows Intune delivers cloud-based PC management and run web applications and services on Windows Azure.
security capabilities. Windows Azure platform AppFabric, formerly known as
Microsoft .NET Services, makes it simpler for developers to
• Microsoft Dynamics CRM Online streamlines customer
connect cloud services and on-premises applications.
relationship management, and delivers results through the
browser.

“The recurring revenue stream we gain from selling [Microsoft Online Services] provides an income without associated
cost of goods. It’s pure profit for us that we would otherwise not have seen. We can use this recurring income to invest
in geographic growth, or to grow into new lines of business. That’s critical for companies like ours that rely on so heavily
on profit to fuel our growth.”
-Todd Golden, Director of Alliances, PointBridge




Opportunities
in Other
Customer
Segments

The following table provides a high-level overview of the opportunities available by partner type beyond
the small business customer segment. Opportunities differ depending on the markets you serve, but there
is potential to increase revenues, grow market share, and develop competitive offerings across each market
segment.




Up-sell, cross-sell, upgrade, and attach opportunities

Small Business (Partner-serviced IT)
• Resell Microsoft Online Services and Windows Intune and earn a • Up-sell and cross-sell prepackaged solutions such as Microsoft Online
one-time commission of 12% on all net new seats, as well as 6% Services sales support.
on recurring subscriptions. • Target POP3 migrations to Microsoft Online Services.

Medium Business (Small internal IT staff – some IT services out-sourced)
• Resell Microsoft Online Services and Windows Intune and earn a one-time • Target SharePoint Server and Exchange Server on-premises deployments to
commission of 12% on all net new seats, as well as 6% on recurring subscriptions. Microsoft Online Services.

Opportunity • Add or attach Windows Intune to Core IO managed services offerings and
Windows 7 upgrades.
• Enable new scenarios such as deskless workers with Microsoft Online
Deskless Worker Services.

Overview for • Offer value-added BPIO solutions on top of Microsoft Online Services such
as SharePoint Online document management monitoring.
• Sell subscriptions to cloud-based LOB applications built with Windows Azure.

Resellers
Enterprise (Sizable IT staff, including internal software development)
• Sell Windows Server 2008 R2 with Hyper-V and System Center Virtual • Drive Enterprise Agreement attach to Microsoft Online Services.
Machine Manager for private cloud scenarios. • Offer branch office solutions with Microsoft Online Services.
• Resell Microsoft Online Services and Windows Intune and earn a one-time • Attach Microsoft Online Services to Office 2010 and Microsoft Dynamics
commission of 12% on all net new seats, as well as 6% on recurring subscriptions. CRM Online upgrades.
• Target Lotus Notes migrations and competing collaboration solutions with • Sell customized CRM solutions built on Microsoft Dynamics CRM Online.
Microsoft Online Services.

Public Sector (Education, government, healthcare, public safety, and national security)
• Resell Microsoft Online Services and Windows Intune to government entities. • Up-sell Microsoft Online Services to schools and universities that have
• Use Microsoft Learning Suite to up-sell Office 2010 and Office Web Apps. deployed Live@edu.
• Pitch cost-saving, green IT solutions based on Microsoft cloud services. • Offer solutions for deskless healthcare workers with Microsoft Online
Deskless Worker Services.




Consulting, migration, integration, implementation, customization, and support opportunities

• Create cloud-based managed services such as remote management with • Migrate installed POP3 and open source collaboration applications to
Windows Intune. Microsoft Online Services.
• Promote standardized cloud packages such as Exchange Online user
provisioning and update support.

• Create cloud-based managed services such as remote management with • Deploy custom workflow automation applications based on SharePoint Online.
Windows Intune. • Migrate Salesforce.com CRM to Microsoft Dynamics CRM Online.
• Offer planning and deployment services for hybrid on-premises/cloud • Package “train the trainer” sessions for internal IT staff who manage
environments.
Opportunity
hybrid environments.
• Integrate Active Directory services across Microsoft Online Services deployments.

Overview for
Systems
• Provision, manage, and deploy virtual machines in the cloud using the • Connect on-premises and cloud applications using Windows Azure
Integrators Dynamic Data Center Toolkit for Enterprises.
• Provide network operations center planning using System Center for
platform AppFabric.
• Develop customized tools such as customer alerts with Microsoft
virtualized infrastructure. Dynamics CRM Online.
• Offer cloud-based data protection and recovery solutions with • Provide user adoption training for branch office and mobility solutions
System Center. based on Office Web Apps.
• Offer security and compliance policy assessments. • Migrate LOB applications from on premises to the cloud.

• Rationalize identity across multiple services and properties for educational • Customize partner-hosted private cloud-based email, messaging, and
institutions. collaboration services to ensure compliance with data sovereignty
• Provide provisioning and migration services for government public cloud requirements.
solutions. • Provision and migrate Microsoft Online Services for government cloud
• Integrate educational management solutions with Live@edu. solutions.
• Plan for and manage compliance issues around healthcare data privacy • Offer integration services for applications built on the HealthVault platform.
regulations.




New applications and solutions and rapid development with repeatable IP opportunities

• Develop cloud-based versions of on-premises applications using Visual • Drive repeatable IP sales with off-the-shelf applications built on
Studio and other familiar tools. Windows Azure.

• Develop network monitoring and tracking tools. • Create additional tools such as alerts for Microsoft Online Services.

Opportunity
• Develop customized interfaces, tools, and add-on functionality such as • Build SaaS LOB applications built on Windows Azure.
alerts for Microsoft Online Services.
• Integrate on-premises applications with social media tools using Windows
Overview for Azure platform AppFabric.

ISVs
• Create debugging tools for custom cloud applications. • Build multitenant SaaS applications on Windows Azure.
• Develop customized cloud-based applications using Visual Studio and • Enhance applications with additional computational power and storage
other familiar tools. with Windows Azure.
• Build competitive tools for migration from Lotus Notes, MySQL, and
SalesForce.com to Microsoft Online Services.

• Use Live@edu services as the communication infrastructure for education • Develop solutions based on the HealthVault application platform.
solutions. • Build government solutions on the Windows Azure platform such as
• Build learning analytics and education IT solutions on Windows Azure. emergency responder dispatch systems and geospatial mapping solutions.




Hosting, selling, and add-on service opportunities

• Build your own managed cloud infrastructure using Dynamic Data Center • Sell hosted communication and collaboration services using Exchange
Toolkit for Hosters. Online, SharePoint Online, and Office Communications Online.

• Offer standardized versions of LOB applications built on Windows Azure. • Offer “burstable capacity” and backup services with SQL Azure
• Create virtual data centers and deliver a seamless IT infrastructure across on-demand provisioning.
multiple geographies using Windows Server 2008 R2, SQL Server 2008 R2,
Opportunity and System Center.

Overview for Enterprise (Sizable IT staff, including internal software development)
Hosting • Sell network monitoring and asset management services. • Create cloud-based managed services contracts such as data protection
Providers • Offer private cloud services and support using the Dynamic Data Center
Toolkit for Hosters.
and disaster recovery.
• Host horizontal and vertical applications.
• Provide enterprise hosting solutions, such as storage and archiving for
corporate compliance.

• Build and host highly secure private clouds for governments in • Host messaging and collaboration applications for governmental organizations.
compliance with data sovereignty requirements. • Host learning gateway solutions combined with Live@edu services.
• Offer private cloud hosting for pooling shared services among related • Offer vertical education and healthcare applications built on Windows Azure.
agencies and jurisdictions.

1
IDC, Worldwide and Regional Public IT Cloud Services 2010–2014 Forecast, Doc #223549, June 2010.
2
IPED: Cloud Adoption Study, March 2010.
3
Microsoft. 2010 SaaS Workload Study. May 2010.


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