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Microsoft Gold Competency
Revenue Guidelines


Visit the Partner Membership Center to accept the revenue commitment

Get competency requirements and benefits information from the Partner Portal




1|Page
GOLD COMPETENCY REVENUE
GUIDELINES

Table of Contents
Introduction....................................................................................................................................................................... 3
    Country groupings: .................................................................................................................................................... 5
    Minimum Revenue Amounts: ................................................................................................................................ 7
    Minimum Revenue Commitment by Competency: ....................................................................................... 7
Top Revenue Requirement Questions .................................................................................................................... 8




2|Page
Introduction
The vast majority of Microsoft’s revenue comes
through you, our partners. Historically, the revenue
that you drive has not been recognized as part of the
Microsoft Partner Network, or has only been
recognized by local Microsoft offices. Our goal is to
align our global and local execution and recognize and
reward you based in part on the revenue and market
impact that you are already driving within your business.

As a step toward this, starting October 2010, partners
will need to commit to delivering a minimum
Microsoft revenue amount based on their respective
geography and gold competency. Acknowledging and
committing to the revenue amount will take place
during the gold competency enrollment process
(example screenshot below).

While we will not start to measure competency
                             1
revenue until October 2011 , the period up until this
time provides partners the opportunity to get insight
into revenue amounts and provides us time to work with
partners to define the fairest and easiest way to measure
revenue across competency, geography and solution
area (i.e., product and workload).




Example of how the revenue commitment will appear in the Partner Membership Center, Competency Summary page.
Starting October 2010, to commit to the revenue requirement partners need to click the “Agree” link.


1
Exceptions include the CRM and ERP competencies where revenue requirements will be in place for the year
looking forward beginning October 2010. There is a revenue requirement for the Microsoft CRM competency
and Microsoft ERP competency, as well as their associated gold competencies.




3|Page
Beginning October 2011, we will start to measure
actual gold competency revenue attainment. Partners
will need to meet the revenue amount by their next
membership renewal date that occurs after
October 2012, for which there has been a year to
measure revenue achievement.

For example a partner with a membership renewal
date of January 2013 will need meet the actual gold
competency revenue amount by the time of renewal in
January 2013 (as competency revenue begins to be
measured starting October 2011 and this partner will
have had a year to achieve the revenue amount).

Revenue will be credited to partners who directly sell licenses and also to partners who contribute to
winning customer projects that result in Microsoft product license sales.

After achieving a Microsoft gold competency, partners may be required to complete a simple business
plan detailing the activities that will support revenue attainment. The business plan is not mandatory. If
applicable, a Microsoft representative will contact a partner to support the creation of this business plan.




4|Page
Country groupings:
There are three country revenue groupings (A, B and C) and countries by grouping can be found below.

  Group A          Group B                  Group C
  Australia        Argentina & Uruguay      North, West and Central Africa, not listed in other country groupings
  Canada           Austria                  Albania
  Denmark          Belgium                  Algeria
  France           Brazil                   Angola
  Germany          China                    Armenia
  Italy            Chile                    Central Asia, not listed in other country groupings
  Japan            Colombia                 Azerbaijan
  Korea            Czech Republic           Cayman Islands
  Netherlands      Egypt                    The Bahamas
  Poland           Finland                  Bahrain
  Spain            Greece                   Bangladesh
  Sweden           Hong Kong                Belarus
  Switzerland      Hungary                  Belize
  UK               India                    Bermuda
  United States    Indonesia                Bolivia
                   Ireland                  Bosnia and Herzegovina
                   Israel                   Botswana
                   Malaysia                 Burundi
                   Mexico                   Brunei
                   New Zealand              Bulgaria
                   Norway                   Costa Rica
                   Portugal                 Croatia
                   Saudi Arabia             Cyprus
                   Singapore                Dominican Republic
                   Romania                  Ecuador
                   Russia                   El Salvador
                   South Africa             Eritrea
                   Thailand                 Estonia
                   Taiwain                  Ethiopia
                   Turkey                   Georgia
                   Ukraine                  Guatemala
                   United Arab Emirates     Honduras
                                            Iceland
                                            Indian Ocean Islands
                                            Jamaica
                                            Jordan
                                            Kazakhstan
                                            Kenya
                                            Kuwait
                                            Latvia
                                            Lebanon ,
                                            Libya
                                            Lithuania
                                            Luxembourg
                                            Macedonia (FYROM)
                                            Malawi
                                            Malta
                                            East Mediterranean
                                            Montenegro
                                            Morocco
                                            Moldova
                                            Mozambique
                                            Namibia
                                            Nigeria
                                            Oman




5|Page
Pakistan
         Panama
         Paraguay
         Puerto Rico
         Peru
         Philippines
         Qatar
         Rwanda
         Serbia
         Slovakia
         Slovenia
         Somalia
         Sri Lanka
         Tanzania
         Trinidad & Tobago
         Tunisia
         Uganda
         Uruguay
         Venezuela
         Vietnam
         Zambia
         Zimbabwe




6|Page
Minimum Revenue Amounts:
The revenue amounts listed below are minimum revenue amounts. We believe that these amounts should be easily
attainable by partners striving to achieve a gold competency. Minimum amounts are set for both solution (i.e.,
product and workload) and transactional competencies.

Recall that partners with gold competencies will represent organizations (and associated individuals) that have
demonstrated the highest, most consistent capability and commitment within a targeted business solution area. Gold
competencies will reward this deep expertise and high commitment with benefits that surpass the cost of qualification
– including tailored, competency-specific benefits based on solutions offered, and core benefits such as channel
incentives, eligibility for a Microsoft named contact who will support the creation of a business plan and help with
sales efforts, a distinct Microsoft partner gold competency brand, along with up to 100 licenses of the latest
Microsoft desktop, operating system and server software for internal business use.


Minimum Revenue Commitment by Competency:
Associated product, solution and workload by competency will be published in the coming year.

Revenue amounts are in US constant dollar and will be converted to local currency in the partner sales tracking tool
once competency revenue begins to be measured.

      Competency                                Group A                   Group B                   Group C
 1    Application Integration                               100,000                      80,000                   50,000
 2    Application Lifecycle Management                      100,000                      80,000                   50,000
 3    Business Intelligence                                 180,000                    150,000                  100,000
 4    Content Management                                    130,000                    100,000                    70,000
 5    CRM                                      300 seats or 200,000       150 seats or 100,000     150 seats or 100,000
 6    Data Platform                                         130,000                    100,000                    70,000
 7    Desktop                                  1,000 seats deployed        750 seats deployed       500 seats deployed
 8    Distributor                                 Varies by contract        Varies by contract       Varies by contract
 9    ERP                                                   100,000                      50,000                   50,000
 10   Hosting                                               100,000                      75,000                   50,000
 11   Identity and Security                                 100,000                      80,000                   50,000
 12   ISV                                      12 Customer wins or        12 Customer wins or      12 Customer wins or
                                                    $50K transacted           $35K transacted          $25K transacted
                                                            revenue                    revenue                  revenue
 13   Learning                                    Gold Learning KPI         Gold Learning KPI        Gold Learning KPI
 14   Licensing                                             100,000                      75,000                   50,000
 15   Midmarket Solution Provider                           100,000                      75,000                   50,000
 16   OEM                                        150 BOS/15 Server         100 BOS/10 Server           50 BOS/5 Server
 17   Portals and Collaboration                             180,000                    150,000                  100,000
 18   Project and Portfolio Management                      130,000                    100,000                    70,000
 19   Search                                                130,000                    100,000                    70,000
 20   Server Platform                                       180,000                    150,000                  100,000
 21   Software Development                                  100,000                      80,000                   50,000
 22   Systems Management                                    180,000                    150,000                  100,000
 23   Unified Communications                                180,000                    150,000                  100,000
 24   Virtualization                                        130,000                    100,000                    70,000
 25   Web Development                                       100,000                      80,000                   50,000
      Digital Marketing                                            0                          0                        0
      Mobility                                                     0                          0                        0
      Software Asset Management                                    0                          0                        0




7|Page
Top Revenue Requirement Questions
Q:   What are the revenue amounts and how did you develop them?

A:   Revenue amounts are specific to competency and geography.

     The commitment amounts are “minimums” and were set based on local market conditions.

     For some competencies, the minimum partner commitment will be measured through “customer
     wins” or deployments instead of revenue. Customer wins means that you have secured and
     successfully completed a new project involving Microsoft technologies which as a result have gained
     you new customer business. These wins will be tracked in a partner sales tracking tool provided by
     Microsoft.

Q:   What accounts for revenue?

A:   Revenue refers to Microsoft licensing revenue - the sale of which has occurred from partners directly
     transacting the sale, or partners contributing to winning the customer project that results in
     Microsoft product license sales, within the period of a partner’s membership year. It does not
     include associated partner services revenue.
     Here are sample competency revenue requirements:

     Desktop:

      - Group A: 1000 seats deployed
      - Group B: 750 seats deployed
      - Group C: 500 seats deployed

     ISV: Solution area wins

      - Group A: 12 customer wins
      - Group B: 12 customer wins
      - Group C: 12 customer wins

     Licensing: Volume licensing sales (EA, Select and Open)

      - Group A: $100,000 in volume licensing sales
      - Group B: $75,000 in volume licensing sales
      - Group C: $50,000 in volume licensing sales

Q:   How does Microsoft know who to credit if two or more partners claim to have contributed to
     winning the same customer deal?
A:   Microsoft will not be measuring gold competency revenue attainment before October 2011. During
     the next twelve months Microsoft will work with partners to define the fairest way to credit software
     sales not directly transacted by partners, but where a partner has contributed to the sale, along with
     how to credit partners cooperating on the same customer opportunity.

Q:   What is the time period for measuring revenue?
A:   The revenue commitment will be measured within a partner’s 12 month membership period.




8|Page
Q:   Where and how do I report my revenue?
A:   If you are a partner with an account manager, that person will work with you on the reporting
     process and the associated tools to use.

     If you are a partner that doesn’t have an account manager, you will receive a communication from
     Microsoft over the next twelve months directing you to the reporting process, tools and user guides.

Q:   Does my revenue count in only one country? Can I count revenue across multiple gold
     competencies?
A:   Microsoft will work with partners to define the fairest way to credit software sales across locations
     and competencies.

Q:   How do I see how much revenue I’ve generated throughout the year?
A:   If you are a partner with an account manager, that person will work with you on how to use the sales
     tracking tool to see how your revenue is tracked.

     If you are partner without an account manager, during the next 12 months Microsoft will provide you
     the instruction on how to access the sales tracking tool.

Q:   What happens if I don’t meet the revenue amount?
A:   Before October 2011 Microsoft will not be measuring the revenue commitment by competency and
     there will not be a penalty for not meeting the commitment.

     Starting in October 2011, Microsoft will begin to measure actual revenue attainment and partners
     will need to meet the revenue amount by their next membership renewal that falls after October
     2012 for which there has been a year to measure revenue achievement.

Q:   How do I accept the revenue commitment?
A:   For October 2010 – October 2011, where a revenue commitment applies, partners will be asked to
     acknowledge the competency and geography revenue amount during the gold competency
     enrollment process.




9|Page

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Microsoft gold competency revenue guidelines 2010 partner ready

  • 1. Microsoft Gold Competency Revenue Guidelines Visit the Partner Membership Center to accept the revenue commitment Get competency requirements and benefits information from the Partner Portal 1|Page
  • 2. GOLD COMPETENCY REVENUE GUIDELINES Table of Contents Introduction....................................................................................................................................................................... 3 Country groupings: .................................................................................................................................................... 5 Minimum Revenue Amounts: ................................................................................................................................ 7 Minimum Revenue Commitment by Competency: ....................................................................................... 7 Top Revenue Requirement Questions .................................................................................................................... 8 2|Page
  • 3. Introduction The vast majority of Microsoft’s revenue comes through you, our partners. Historically, the revenue that you drive has not been recognized as part of the Microsoft Partner Network, or has only been recognized by local Microsoft offices. Our goal is to align our global and local execution and recognize and reward you based in part on the revenue and market impact that you are already driving within your business. As a step toward this, starting October 2010, partners will need to commit to delivering a minimum Microsoft revenue amount based on their respective geography and gold competency. Acknowledging and committing to the revenue amount will take place during the gold competency enrollment process (example screenshot below). While we will not start to measure competency 1 revenue until October 2011 , the period up until this time provides partners the opportunity to get insight into revenue amounts and provides us time to work with partners to define the fairest and easiest way to measure revenue across competency, geography and solution area (i.e., product and workload). Example of how the revenue commitment will appear in the Partner Membership Center, Competency Summary page. Starting October 2010, to commit to the revenue requirement partners need to click the “Agree” link. 1 Exceptions include the CRM and ERP competencies where revenue requirements will be in place for the year looking forward beginning October 2010. There is a revenue requirement for the Microsoft CRM competency and Microsoft ERP competency, as well as their associated gold competencies. 3|Page
  • 4. Beginning October 2011, we will start to measure actual gold competency revenue attainment. Partners will need to meet the revenue amount by their next membership renewal date that occurs after October 2012, for which there has been a year to measure revenue achievement. For example a partner with a membership renewal date of January 2013 will need meet the actual gold competency revenue amount by the time of renewal in January 2013 (as competency revenue begins to be measured starting October 2011 and this partner will have had a year to achieve the revenue amount). Revenue will be credited to partners who directly sell licenses and also to partners who contribute to winning customer projects that result in Microsoft product license sales. After achieving a Microsoft gold competency, partners may be required to complete a simple business plan detailing the activities that will support revenue attainment. The business plan is not mandatory. If applicable, a Microsoft representative will contact a partner to support the creation of this business plan. 4|Page
  • 5. Country groupings: There are three country revenue groupings (A, B and C) and countries by grouping can be found below. Group A Group B Group C Australia Argentina & Uruguay North, West and Central Africa, not listed in other country groupings Canada Austria Albania Denmark Belgium Algeria France Brazil Angola Germany China Armenia Italy Chile Central Asia, not listed in other country groupings Japan Colombia Azerbaijan Korea Czech Republic Cayman Islands Netherlands Egypt The Bahamas Poland Finland Bahrain Spain Greece Bangladesh Sweden Hong Kong Belarus Switzerland Hungary Belize UK India Bermuda United States Indonesia Bolivia Ireland Bosnia and Herzegovina Israel Botswana Malaysia Burundi Mexico Brunei New Zealand Bulgaria Norway Costa Rica Portugal Croatia Saudi Arabia Cyprus Singapore Dominican Republic Romania Ecuador Russia El Salvador South Africa Eritrea Thailand Estonia Taiwain Ethiopia Turkey Georgia Ukraine Guatemala United Arab Emirates Honduras Iceland Indian Ocean Islands Jamaica Jordan Kazakhstan Kenya Kuwait Latvia Lebanon , Libya Lithuania Luxembourg Macedonia (FYROM) Malawi Malta East Mediterranean Montenegro Morocco Moldova Mozambique Namibia Nigeria Oman 5|Page
  • 6. Pakistan Panama Paraguay Puerto Rico Peru Philippines Qatar Rwanda Serbia Slovakia Slovenia Somalia Sri Lanka Tanzania Trinidad & Tobago Tunisia Uganda Uruguay Venezuela Vietnam Zambia Zimbabwe 6|Page
  • 7. Minimum Revenue Amounts: The revenue amounts listed below are minimum revenue amounts. We believe that these amounts should be easily attainable by partners striving to achieve a gold competency. Minimum amounts are set for both solution (i.e., product and workload) and transactional competencies. Recall that partners with gold competencies will represent organizations (and associated individuals) that have demonstrated the highest, most consistent capability and commitment within a targeted business solution area. Gold competencies will reward this deep expertise and high commitment with benefits that surpass the cost of qualification – including tailored, competency-specific benefits based on solutions offered, and core benefits such as channel incentives, eligibility for a Microsoft named contact who will support the creation of a business plan and help with sales efforts, a distinct Microsoft partner gold competency brand, along with up to 100 licenses of the latest Microsoft desktop, operating system and server software for internal business use. Minimum Revenue Commitment by Competency: Associated product, solution and workload by competency will be published in the coming year. Revenue amounts are in US constant dollar and will be converted to local currency in the partner sales tracking tool once competency revenue begins to be measured. Competency Group A Group B Group C 1 Application Integration 100,000 80,000 50,000 2 Application Lifecycle Management 100,000 80,000 50,000 3 Business Intelligence 180,000 150,000 100,000 4 Content Management 130,000 100,000 70,000 5 CRM 300 seats or 200,000 150 seats or 100,000 150 seats or 100,000 6 Data Platform 130,000 100,000 70,000 7 Desktop 1,000 seats deployed 750 seats deployed 500 seats deployed 8 Distributor Varies by contract Varies by contract Varies by contract 9 ERP 100,000 50,000 50,000 10 Hosting 100,000 75,000 50,000 11 Identity and Security 100,000 80,000 50,000 12 ISV 12 Customer wins or 12 Customer wins or 12 Customer wins or $50K transacted $35K transacted $25K transacted revenue revenue revenue 13 Learning Gold Learning KPI Gold Learning KPI Gold Learning KPI 14 Licensing 100,000 75,000 50,000 15 Midmarket Solution Provider 100,000 75,000 50,000 16 OEM 150 BOS/15 Server 100 BOS/10 Server 50 BOS/5 Server 17 Portals and Collaboration 180,000 150,000 100,000 18 Project and Portfolio Management 130,000 100,000 70,000 19 Search 130,000 100,000 70,000 20 Server Platform 180,000 150,000 100,000 21 Software Development 100,000 80,000 50,000 22 Systems Management 180,000 150,000 100,000 23 Unified Communications 180,000 150,000 100,000 24 Virtualization 130,000 100,000 70,000 25 Web Development 100,000 80,000 50,000 Digital Marketing 0 0 0 Mobility 0 0 0 Software Asset Management 0 0 0 7|Page
  • 8. Top Revenue Requirement Questions Q: What are the revenue amounts and how did you develop them? A: Revenue amounts are specific to competency and geography. The commitment amounts are “minimums” and were set based on local market conditions. For some competencies, the minimum partner commitment will be measured through “customer wins” or deployments instead of revenue. Customer wins means that you have secured and successfully completed a new project involving Microsoft technologies which as a result have gained you new customer business. These wins will be tracked in a partner sales tracking tool provided by Microsoft. Q: What accounts for revenue? A: Revenue refers to Microsoft licensing revenue - the sale of which has occurred from partners directly transacting the sale, or partners contributing to winning the customer project that results in Microsoft product license sales, within the period of a partner’s membership year. It does not include associated partner services revenue. Here are sample competency revenue requirements: Desktop: - Group A: 1000 seats deployed - Group B: 750 seats deployed - Group C: 500 seats deployed ISV: Solution area wins - Group A: 12 customer wins - Group B: 12 customer wins - Group C: 12 customer wins Licensing: Volume licensing sales (EA, Select and Open) - Group A: $100,000 in volume licensing sales - Group B: $75,000 in volume licensing sales - Group C: $50,000 in volume licensing sales Q: How does Microsoft know who to credit if two or more partners claim to have contributed to winning the same customer deal? A: Microsoft will not be measuring gold competency revenue attainment before October 2011. During the next twelve months Microsoft will work with partners to define the fairest way to credit software sales not directly transacted by partners, but where a partner has contributed to the sale, along with how to credit partners cooperating on the same customer opportunity. Q: What is the time period for measuring revenue? A: The revenue commitment will be measured within a partner’s 12 month membership period. 8|Page
  • 9. Q: Where and how do I report my revenue? A: If you are a partner with an account manager, that person will work with you on the reporting process and the associated tools to use. If you are a partner that doesn’t have an account manager, you will receive a communication from Microsoft over the next twelve months directing you to the reporting process, tools and user guides. Q: Does my revenue count in only one country? Can I count revenue across multiple gold competencies? A: Microsoft will work with partners to define the fairest way to credit software sales across locations and competencies. Q: How do I see how much revenue I’ve generated throughout the year? A: If you are a partner with an account manager, that person will work with you on how to use the sales tracking tool to see how your revenue is tracked. If you are partner without an account manager, during the next 12 months Microsoft will provide you the instruction on how to access the sales tracking tool. Q: What happens if I don’t meet the revenue amount? A: Before October 2011 Microsoft will not be measuring the revenue commitment by competency and there will not be a penalty for not meeting the commitment. Starting in October 2011, Microsoft will begin to measure actual revenue attainment and partners will need to meet the revenue amount by their next membership renewal that falls after October 2012 for which there has been a year to measure revenue achievement. Q: How do I accept the revenue commitment? A: For October 2010 – October 2011, where a revenue commitment applies, partners will be asked to acknowledge the competency and geography revenue amount during the gold competency enrollment process. 9|Page