BPOS for the MSP

Microsoft® Business Productivity Online Suite
Business Optimization Guide for Managed Services Providers ©2010 Microsoft Corporation. All rights reserved.

This guide is primarily for partners that:
… Resell hardware and software solutions
… Provide services to organizations with fewer than 500 seats
… Provide services to organizations with more than 500 seats
; Provide managed IT services

If the characteristics checked above do not align with your
type of business, please visit the following Web site to find
the appropriate Business Optimization Guide for your
business: https://partner.microsoft.com/US/BPOSguides.

Business Productivity Online Suite (BPOS)
• Exchange Online, including Exchange Hosted Services,
which are attached services that encompass the
archiving, encryption, continuity, and filtering of data.
• SharePoint® Online for intranets and document sharing.
• Office Communications Online for real-time
communication and presence (instant messaging
and related capabilities).
• Office Live Meeting for interactive Web
conferencing.

The information contained in this document represents the current view of Microsoft
Corporation on the issues discussed as of the date of publication. 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
presented after the date of publication.

This guide is for informational purposes only. MICROSOFT MAKES NO WARRANTIES,
EXPRESS, IMPLIED, OR STATUTORY, AS TO THE INFORMATION IN THIS DOCUMENT.
1 

Microsoft® Business Productivity Online Suite Quick Topics
Purpose and Use of This Guide
Business Optimization Guide for Managed Services Providers

Quick Topics Purpose and Use of This Guide

 What is Microsoft BPOS? This Business Optimization Guide is for partners that
provide managed IT support services—in other words,
 What are the benefits of BPOS for customers? MSPs. The purpose of this guide is to help MSPs:
• Take advantage of the substantial business
 What are the benefits of BPOS for Managed
opportunities to integrate a BPOS solution into
Services Providers (MSPs)?
their existing managed-services portfolio.
Cloud Computing: An Evolving Market with New MSP Opportunities

 What is the first thing MSPs need to do to • Understand how to introduce BPOS into a
start integrating BPOS into their business? managed-services business and begin generating
new revenue streams.
Quick Topics and Purpose and Use of This Guide

 What changes to MSPs’ businesses may be • Leverage best practices on how to market BPOS
needed to integrate BPOS into their offerings? most effectively and drive additional business
Integrating BPOS into a Managed-services Portfolio

opportunities.
In Conclusion: The BPOS Opportunity for Partners

 How will MSPs make money integrating
BPOS into their managed services business? This guide can be used interactively. It can be read from
beginning to end by clicking the arrows next to each
 What are the practices and characteristics of
page number, or it can be browsed non-sequentially by
the most successful BPOS MSPs?
Understanding the BPOS Solution

clicking on the section tabs to the left.
 What frequently asked questions (FAQs) do
Frequently Asked Questions

MSPs have related to BPOS?
Next Steps for Partners

 What should MSPs do to get started
integrating BPOS into their managed services
portfolios (i.e., next steps)?


©2010 Microsoft Corporation. All rights reserved.  2 

Microsoft® Business Productivity Online Suite Cloud Computing: An Evolving
Market with New MSP Opportunities


 Introduction
 Cloud Computing: An Evolving Market with New MSP Opportunities

 Cloud Services and the Growing Managed-services Opportunity

 The Evolving Software Model

 The Microsoft Solution: Software plus Services (S+S)

 Summary: Why S+S?

 Why Customers Want Online Services


 Online Services Market Opportunity

 The Synergies between Online Services and Managed Services




Cloud Computing: An Evolving

By now, most customers and MSPs are keenly aware

of the industry buzz around concepts like “cloud
computing” and software as a service (SaaS). In fact,
many MSPs were on the cutting edge of these trends
by being some of the first to deliver off-premises,
managed services to their customers.

Similar to the substantial growth in the MSP market,
the opportunities being created by cloud computing
and SaaS are expected to be considerable. The two

main reasons why customer interest is growing

rapidly in cloud computing are the same reasons why
managed services have flourished in recent years:
first, the ability for customers to lower upfront and
ongoing costs, and second, the opportunity to

streamline deployment and management.



Cloud Services and the Growing models. Recently, Microsoft sponsored a study
Managed-services Opportunity conducted by Everything Channel’s IPED focused on
To many, cloud services are seen as an evolution of cloud-services adoption among partners and customers
the managed services that MSPs have traditionally (hereafter referred to as the “cloud-services study”)

offered; services like remote to understand attitudes
management and off-site and perceptions among
The Cloud: a Common Definition
data storage. MSPs are very partners and customers
The term “cloud” is typically used when referring
familiar with the distinctions toward online services.
between services delivered to the delivery of services from outside the The study indicates that
on site versus services corporate firewall or beyond the walls of a cloud services will double
delivered off site. MSPs person’s home—in other words “off premises.” as a percentage of overall
are also familiar with the In its simplest form, the cloud refers to services partner revenues in the
business model associated next two years, growing
that are delivered from a datacenter in one

with cloud services: that is, from 8.5 percent to 18.1

location to a server or personal computer (PC)
providing services through percent of total partner
subscription-based licensing in another location via the Internet, or the revenue by the year 2010.*
models rather than through “public cloud.” (More recently, the term “private This suggests that many
one-time product sales. cloud” has been introduced to describe environ- partners are potentially

ments that emulate cloud computing on private going to be offering cloud
Recognizing the value of a services to grow their
networks, or “on premises.”)

subscription-based model businesses. For MSPs, who
and the potential for already have expertise in

annuity revenue streams, other types of partners are providing remote, subscription-based services, cloud
exploring cloud-computing opportunities and finding services present an excellent opportunity to grow
ways to integrate cloud computing into their business revenues by expanding into familiar territory.



The Evolving Software Model While this model served customers, technology
Customer needs and challenges drive innovation and manufacturers, and partners fairly well, the rate of
growth in technology markets around the world. For change and the degree of complexity for technology
much of the past 20 years, the predominant business products within global markets has made it increasingly

model for software has been the following: difficult for customers (and partners) to acquire,
1. The customer licenses a software application. provision, and manage their technology investments.
2. The customer installs the application within its Meanwhile, within small- and medium-sized businesses
environment. (SMBs), needed technology solutions are often out of
3. The customer replaces the application when a reach due to high costs and limited information-
change is needed. technology (IT) resources to implement the technology.

These challenges have driven a fundamental shift in
software licensing and deployment models. The result:

the growth in and excitement around cloud computing.



License Install Upgrade or Replace



The Microsoft Solution:
Software plus Services (S+S)
Until recently, the typical model for the cloud and
SaaS has been “all or nothing.” Either customers

purchase an entire application offering as a hosted
service, or they deploy applications on premises in a
traditional manner. However, many Microsoft partners
and customers have made significant investments in
on-premises solutions—solutions that meet many of
their needs.

Rather than forcing customers and partners to
choose between on-premises solutions and the cloud,

Microsoft is pioneering the S+S model, combining the

value of both. With this approach, customers are not
required to abandon their on-premises deployments
and shift entirely to cloud services, but can instead
blend on-premises solutions with hosted services to

take advantage of the benefits of each model.



Microsoft offers three models for delivering solutions, providing a new level of choice and flexibility. These include
on-premises, partner-hosted, and Microsoft-hosted solutions. Microsoft-hosted solutions are referred to as
Microsoft Online Services.
• On Premises. Software is installed at the customer location and licensed to the customer in a traditional manner.

• Partner Hosted. The infrastructure and software is owned and licensed by a partner, which purchases
Microsoft software licenses through a Service Provider Licensing Agreement (SPLA).
• Microsoft Hosted. Microsoft owns the infrastructure and provisioning of the software, which is delivered as a
service to customers via the Internet.

The goal for S+S is to enable customers to easily adopt and integrate services based on all three models (or any combination).
This approach is similar to the model that MSPs have embraced for years by providing clients with remote, managed services
to augment their on-premises environments.


On Premises Partner Hosted Microsoft Hosted
Windows® 7 operating system Line-of-business application services Microsoft BPOS (Hosted Exchange,
Windows Server® 2008 R2 operating system SharePoint, Live Meeting, and Office

Microsoft Office Communications)

S+S Solutions



Summary: Why S+S? With a customer base that understands the benefits of
• The power of choice for customers and partners. online services and is anxious to begin taking advantage
• Consistent, seamless customer experiences across of those benefits, MSPs are in a great position to
multiple computers and devices. make the most of these trends.

• The enablement of multiple business models.

Why Customers Want Online Services
The cloud-services study revealed that the majority of
customers recognize and appreciate the benefits of
online services,* such as the benefits highlighted in the
image below:




Lower Technology Costs Reduced IT Staffing Costs Greater Scalability Enhanced Ability to Focus
and Agility on IT Services That Provide a
Competitive Advantage
Customer Benefits



Online Services Market Opportunity This growth opportunity is expected to be significant
Services have already started to transform the world— for MSP partners. In fact, according to the cloud-services
from individual consumers to the largest enterprise study, MSPs serving the SMB segment are expected
organizations and government entities. Furthermore, to represent one of the largest channel opportunities

significant business opportunities exist for customers in the office-infrastructure, online-services category
and partners to utilize Microsoft solutions within an by 2012.* This is not surprising given the fact that
S+S model. Industry analysts agree that these changes many MSPs have already established many of the
will transform the IT industry and create many new trusted-advisor relationships that are crucial for acquiring
opportunities in the coming years. For example: and maintaining managed- and online-services
• IDC predicts a 24.3 percent compound annual customers.
growth rate for SaaS from 2008-2013, reaching just
over $33 billion in 2013.‡ MSPs are also recognizing the incremental business
• The Yankee Group expects that SaaS global sales opportunities that online services can offer. In the

will outpace those of traditional software by 2012.¥ cloud-services study, all of the MSP partners surveyed

that target customers with fewer than 500 seats and
have experienced early success with online services
said that they see it as a significant opportunity to
increase profit margins.*

Given the impressive growth projections, along with

the revenues already being generated by partners,
Microsoft is focused on delivering online-services

solutions for partners to take advantage of these new
opportunities.



The Synergies between Online Services and One way MSPs can take advantage of the changing
Managed Services nature of cloud services is through engaging with a
Most MSPs have business practices that fit well with new Microsoft Online Services offering called BPOS.
the online-services model. For example, MSPs have With BPOS, MSPs can generate incremental revenues

experience providing services via the cloud through by marketing the solution as a complement to their
remote management or monitoring. In addition, MSPs other services, and by attaching managed services to
already have a business model structured around BPOS deployments.
subscription services and the management of ongoing
billing and revenue collection. Furthermore, most
MSPs already offer a combination of services that
aligns with the S+S strategy of providing customers
choice when building their technology infrastructure.

These synergies provide MSPs with two great

opportunities to grow revenues through cloud services.
First, MSPs can generate new revenue streams by
providing online services to their customers. Second,
MSPs can attach other managed services such as

monitoring, administration, and training when customers
deploy online services.


Microsoft® Business Productivity Online Suite Understanding the BPOS Solution



 BPOS and Customer Choice

 Benefits of BPOS for Customers

 Benefits of BPOS for MSPs








What is BPOS? BPOS is a suite of enterprise-class
software that is hosted by Microsoft and delivered as
a subscription service. Partners that refer customers
that adopt BPOS receive referral- and annuity-based
subscriptions fees. BPOS includes:
• Exchange Online, including Exchange Hosted

Services, which are attached services that
encompass the archiving, encryption, continuity,
and filtering of data.
• SharePoint Online for intranets and document
sharing.

• Office Communications Online for real-time

communication and presence (instant messaging

and related capabilities).
• Office Live Meeting for interactive Web
conferencing.




The following table highlights some of the key characteristics and differentiators of BPOS:

Characteristics Differentiators
Streamlined Communications Highly Skilled Partner Channel
Customers can work with the The success of Microsoft in the market over the past 30 years has been due in large part to
same rich clients they already a strong partner ecosystem. That will continue as Microsoft brings more services to market
know and use—all within an via on-premises and off-premises delivery models.
integrated experience, from

virtually any device, in almost Up-sell Opportunities with BPOS
any location. Customers are looking for solutions that provide them with the scale of the Internet, but the
control and usability of on-premises solutions. More and more, they are choosing solutions
Simplified Management that include on-premises software plus cloud-based services. MSPs that provide managed
Customers get the tools they services to customers subscribing to BPOS have the opportunity to pursue up-sell and
need without requiring ongoing cross-sell opportunities with the other managed services in their portfolio.
upgrades or installations. BPOS


puts the IT resources of Microsoft Enterprise-class Security and Reliability

to work for customers. Microsoft has a keen understanding of what commercial and public-sector organizations

need based on years of experience providing enterprise software to a wide range of
Business-class Security customers and partners. In addition, Microsoft has successfully delivered hosted services
and Reliability for businesses at a high scale with high reliability and security, including Microsoft Office
Customers can work with Live Meeting, Exchange Hosted Services, and Hosted Messaging and Collaboration.
confidence knowing that BPOS
runs on a network of world- Broadest Set of Services for Business

class datacenters protected by The Microsoft portfolio of services for businesses is the broadest in the market and is based
multiple layers of security and on proven, market-leading products like Exchange Server, SharePoint Server, and Live

operational best practices—all Meeting. As organizations of all sizes look for hosted services, Microsoft is confident that
while providing a 99.9 percent BPOS will stand out as a flexible, reliable, and, most importantly, secure solution.
uptime guarantee.




Microsoft offers standard and dedicated editions of BPOS: BPOS and Customer Choice
• Standard. Customers receive a complete, As one of the Microsoft Online Services offerings,
standardized offering of the software in a shared BPOS aligns with the S+S strategy of providing
environment, which they can manage, including customers choice, while still maximizing the opportunity
some customization. There are no minimum or for partners. Each customer has unique needs,
maximum licenses required, and it is less expensive depending on characteristics such as size, IT budget,
than the dedicated offering. and industry, to name only a few. For example, one
• Dedicated. Customers receive a dedicated target market for BPOS is smaller customers that may

environment on a Microsoft-hosted server not have had the budget for an on-premises solution
(or servers), which enables them to customize or the in-house IT staff to manage it. BPOS offers an
the service to their specific business needs. The opportunity for partners to win new customers by
customer must license a minimum of 5,000 seats meeting a more complete set of needs.
and select options for additional server features

to take advantage of the dedicated offering. In another study conducted by Everything Channel’s

IPED, it was discovered that 11 percent of partners are

already selling vendors’ online services.₤ These partners
are already realizing the opportunities that online
services such as BPOS can bring, such as acquiring
new customers and preserving relationships with
existing customers. With BPOS, MSPs have another

tool for reaching the broadest set of customers possible.




Benefits of BPOS for Customers Accelerated “Speed to Value”
MSPs are in trusted, long-term relationships with their With virtually no upfront hardware and software costs,
customers, and customers often look to their MSPs for and predictable monthly costs, BPOS helps IT decision
guidance in making technology decisions. In evaluating makers provide budget forecasts that are more
the addition of BPOS to their services portfolio, MSPs accurate, while employees can benefit from the latest
will want a strong understanding of why BPOS is software capabilities almost instantly.
beneficial for their customers.
Familiar, Anywhere Access

The following is an overview of key benefits customers BPOS customers will work with the same rich-client
can realize from deploying a BPOS solution: applications they already know and use. Built on a proven
software platform, BPOS provides an all-in-one, integrated
New Level of Value experience, which can be accessed from virtually any
Customers that were previously unable to deploy device in almost any location. BPOS provides best-in-class

robust communications and collaboration solutions communication and collaboration via an easy-to-use service.

will now be able to consider these solutions because

of the value offered by BPOS. As a suite of products, Business-class Security and Reliability
BPOS offers a substantial savings relative to the price BPOS is hosted on a world-class datacenter network
of the services when they are sold separately. For architecture that enables quick and reliable recovery
many customers, such as SMBs that previously could from unplanned occurrences. Customers can work with
not afford enterprise-targeted solutions, this will be a confidence knowing that security standards are met

pivotal factor that peaks their interest in BPOS. and are protected by multiple layers of security and
operational best practices—all while providing a 99.9

MSPs that would like to determine how much BPOS percent uptime guarantee. BPOS provides highly secure
will cost customers can visit http://www.microsoft. data access that enables users to get messages and shared
com/online/estimator/default.aspx. documents over the Internet via an encrypted connection.




Seamless S+S Benefits of BPOS for MSPs
BPOS is designed to integrate with on-premises Since MSPs have a business model that complements
solutions to make communication with co-workers, the BPOS model, they tend to have a good under-
customers, and partners around the world simple, standing of how remote, subscription-based solutions
effective, and affordable. BPOS provides customers can provide consistent streams of revenue at a low
with a simple way to transition a subset of their users cost. However, what may be less apparent is that
to the online service, while other users can use BPOS provides an ecosystem of revenue opportunities.
on-premises deployments, if needed. As previously mentioned, MSPs that integrate BPOS

into their offerings will find that they have another
solution to help win new customers and protect
existing customers from competitors. The following
is a broad summary of potential benefits associated
with integrating BPOS into an MSP’s business.


Create New Managed-services Opportunities

For MSPs, BPOS can open opportunities for providing
additional services, like remote monitoring and
management of BPOS services. BPOS is increasingly
being offered as part of managed-services platforms,
such as those offered by Level Platforms, to enable

MSPs to monitor and manage the services seamlessly
with other remote services. MSPs can visit Level

Platforms at http://www.levelplatforms.com/Product/
cloud-services.aspx to learn more about BPOS remote
monitoring and management opportunities. Moreover,




Microsoft is currently developing an online-services Even MSPs that currently offer no online services but
feature called Delegated Administration, which will serve as technical advisors to their customers can
enable online-services customers to delegate the begin generating incremental revenues by referring
administration of the customer’s BPOS service to an customers to BPOS.
MSP As BPOS grows, there will likely be more
.
opportunities for remote monitoring and management Partners that are interested in learning more details
of BPOS on behalf of customers. This is a prime about becoming a partner of record can visit https://
opportunity for MSPs to increase their engagement www.quickstartonlineservices.com/Pages/Default.aspx.

with customers and create additional revenue streams.

Generate Incremental, Annuity-based Revenues
With BPOS, the partner that drives the sale and is
designated by the customer as the “partner of record”

will receive an initial payment for referring customers

that subscribe to BPOS. The partner will also receive a

recurring revenue stream for supporting the customer
for as long as the customer maintains its BPOS
subscription and continues to designate the partner
as its partner of record. The BPOS partner of record will
receive an initial payment that equates to 12 percent

of the net purchase price (after any discounts or
promotions are factored in), plus six percent of ongoing

subscription fees paid by the customer.




More Potential Sales through Value-added Services • Customization services. MSPs can design
Opportunities applications, automate services, and customize
Since MSPs already have substantial experience experiences to help their customers utilize BPOS
managing a services-based business, BPOS provides to its best advantage. For example, partners might
an excellent opportunity to leverage existing skills and consider designing automated business processes
resources to drive incremental revenues. In addition to for customers by quickly leveraging built-in
managed services, MSPs can also drive revenue from SharePoint workflows and templates. Alternatively,
other high-profit, value-added services such as: partners could design and implement document-

• Education. MSPs have a unique opportunity to management systems by utilizing built-in SharePoint
turn their advisory relationships with customers content-management capabilities and customizing
into revenue-generating consulting services, them to the unique needs of their customers.
becoming the experts in online services and guiding
customers as they adapt and evolve their IT

environments.

• Data migration. Nearly all customers have

legacy data that they want migrated to the online
environment. MSPs can provide project management
and implementation of this activity.
• Integration services. Integration among various
Microsoft and third-party applications represents

another opportunity for MSPs to generate services
revenue.




The scenario on the following page is an example The customer in this example has an organization
of potential revenues earned by an MSP that is with 250 information workers. All users require mobile
designated as the partner of record and is also access to corporate information. The MSP engagement
providing additional services such as administering includes:
and monitoring, migration, business-process consulting, • Being the partner of record for the BPOS solution.
and initial BPOS training. The example illustrates how • Administering and monitoring the BPOS service.
adding services on top of a BPOS sale can provide • Migrating the on-premises Exchange Server
substantial revenues beyond the initial and recurring solution to Exchange Online.

sales payments. While this example includes only a • Providing ongoing business-process consulting
few services, MSPs can create similar tables including to improve productivity and automate process
their unique offerings to get a better view of the workflow via SharePoint Online.
revenues that BPOS can generate specifically for • Initial BPOS training.
their businesses.







MSP One-year Revenue Opportunity (illustrative)
Hours Rate Frequency Revenue
Net Add Fee (12%) $10/user/month (one year) Once $3,600
Residual Fee (6%) $10/user/month Monthly $1,800
Service Administration and Monitoring 10 $100/hour Monthly $12,000
Migration 50 $125/hour Once $6,250

Business-process Consulting 10 $100/hour Monthly $12,000
Initial BPOS Training 50 $125/hour Once $6,250
Total Year One $41,900

As indicated in this example, adding recurring revenues from managed services—like regular customization,

service administration, and monitoring—can generate more substantial sources of revenue than even the

BPOS-subscription revenue itself.




Expand Customer Base with New Subscription Offerings Increase Revenues without Expanding Infrastructure
BPOS partners are finding that BPOS can help them Just as customers deal with the ever-growing costs
create opportunities with new customers. For example, associated with growing IT infrastructures, MSPs
a partner may have a customer in transition that is continually seek ways to increase revenues while
seeking to lower costs or seeking less complexity than minimizing infrastructure costs. Referring customers
their current solution. When the partner has exhausted to BPOS can provide an ongoing revenue stream
alternatives with its existing portfolio of on-premises or with minimal incremental overhead costs for MSPs.
partner-hosted solutions, BPOS may prove to be the With BPOS, the infrastructure to host the solution

best alternative for developing a customer relationship. is maintained by Microsoft. For MSPs looking for
ways to expand their business without expanding
For example, MSPs can use BPOS to target new SMB IT-infrastructure costs, BPOS provides a simple and
customers, where budgets are often tight and internal effective solution.
IT support is limited. Once MSPs have introduced BPOS

into an organization, they have the opportunity to pursue Protect and Grow Customer Relationships

additional services that might benefit the customer. Since BPOS requires less emphasis on technical

details, it enables MSPs to transition their primary,
In the cloud-services study, over half of the MSPs trusted-advisory role from technical support to one
surveyed that offer services to SMB customers are that is more focused on business capabilities. MSPs
already reporting that they are seeing increased can therefore spend more time consulting with their
demand for online-services solutions.* customers and working with business decision makers

(BDMs) in departments such as sales and marketing,
rather than communicating exclusively with IT

BPOS can enable MSPs to reach a new set
departments. Working with BDMs enables MSPs to
of customers that have a growing interest
extend their business into their customers’ organizations
in online services.
in ways they might not have been able to in the past.



Microsoft® Business Productivity Online Suite Integrating BPOS into a
Managed-services Portfolio



 What Is the First Thing MSPs Need to Do to Start Integrating BPOS into Their Business?

 Characteristics of Best-in-class BPOS Partners

 What Changes to an MSP’s Business May Be Needed?

 How Can MSPs Develop Other Services Opportunities around the BPOS Offering?

 How Can MSPs Create Demand for BPOS and Drive Sales?






Integrating BPOS into a

To be successful integrating BPOS into a managed-
services portfolio, MSPs will need to consider successful
strategies and tactics to drive interest, demand, sales,
and referrals. This section discusses the changes,
resources, and approaches that are typically needed to

add BPOS to a managed-services offering.







What Is the First Thing MSPs Need to Do to BPOS as a Gateway Product
Start Integrating BPOS into Their Business? As the demand for online services continues to grow,
MSPs first need to decide how BPOS will fit into their MSPs can take advantage of this momentum to grow
current MSP offerings. For example: their customer base. BPOS offers an attractive solution
• BPOS could become a gateway product that is used for customers that previously have been unable to
to sell into new customers and increase the MSP’s take advantage of enterprise-level offerings because
customer base. of budgetary and IT-management constraints. MSPs
• BPOS could be included as part of a comprehensive can use BPOS to open doors with those customers.

offering within the MSP’s services portfolio. Once MSPs have established a business relationship
• BPOS could be offered as a strategic solution to with a customer through a BPOS deployment, they

deepen and protect customer relationships. can look for other opportunities to provide managed
services for the customer.
Of course, MSPs can choose to have BPOS play
multiple roles within their existing managed-services MSPs that use BPOS as a gateway product to new

business, but ideally, they should begin by choosing customers will need to consider marketing and sales
the role that best meets the needs of their business. issues like demand generation. There is more
information on this topic in the “What Changes to an
MSP’s Business May Be Needed?” section of this guide.





BPOS as Part of a Comprehensive Offering BPOS as a Strategic Solution
Each customer is different, with differing budgetary, Given the growing popularity of cloud computing, it
technical, and infrastructure needs. BPOS fits within should be no surprise that competition in the cloud-
the Microsoft S+S strategy as a solution that provides services market continues to intensify. As previously
customers with choice. MSPs can take advantage of noted in this guide, BPOS provides many customer
the long-range benefits of this strategy by integrating benefits that make it a competitive offering in the
BPOS into their existing offerings to create a marketplace. MSPs can use BPOS to bolster their value
comprehensive portfolio of offerings. proposition when engaging with new and existing

customers.
Many MSPs have been delivering remote managed

services for on-premises deployments for many years. For example, in the current economic climate many
While this can be profitable, business-savvy MSPs customers have been forced to reexamine their IT
continue to look for ways to develop incremental budget and make tough decisions. MSPs with
business opportunities. By adding BPOS, MSPs can customers that are facing these challenges can

bridge gaps and meet a broader set of customer leverage the value offered by BPOS as a way to
needs. retain these customers and protect relationships.





Characteristics of Best-in-class BPOS Partners
As MSPs consider how BPOS can help address business challenges and achieve business goals, it may be helpful to
look at the practices and characteristics of partners that have been the most successful generating revenues through
BPOS solutions. Partners in the top 20 percent in terms of profitability were analyzed. For MSPs that typically engage
with customers with fewer than 500 seats, the following characteristics set apart these “best-in-class” partners:*

Top Four Characteristics of Best-in-class MSPs Offering BPOS Solutions
1 Trusted-advisor In the cloud-services study, best-in-class MSP partners cited the “trusted-advisor relationship”

relationship. as key to successfully marketing BPOS solutions. Successful MSPs recognize the importance
of developing strong, long-term relationships with their customers; therefore, they focus on

providing insight and support related to the overall health of the customer’s business, including
issues such as total cost of ownership and return on investment. They also work to ensure
that each customer’s BPOS deployment is supported and appropriately customized to that
customer’s needs.

2 Exceptional While Microsoft includes technical support for IT professionals, best-in-class MSP partners

technical realize that technical support is an important part of their business as well. Maintaining
support. a long-term relationship means ensuring that the customer has the deployment, integration,
customization, and tiered support they need. When a single partner cannot provide all of
these services, the partner helps its customers acquire them from other reliable partners.

3 Proactively Part of the value that MSPs offer customers is helping them manage their technology

helping customers risks and investments. For best-in-class MSPs offering BPOS, this means focusing discussions
understand risks on the financial benefits and the business-class reliability of the solution.

and costs.

4 Relationships Best-in-class BPOS MSPs also recognize the importance of developing strong relationships

with vendors and with vendors to offer the types of solutions that their customers are seeking. Microsoft
partners. is facilitating these relationships by integrating BPOS monitoring into managed-services
platforms, such as those provided Level Platforms.




What Changes to an MSP’s Business
May Be Needed?
Armed with an understanding of the characteristics
of the most successful BPOS partners, the next thing
MSPs will need to consider is what changes they may
need to make to their own businesses to integrate
BPOS into their portfolio of services. Typically, these
considerations fall into two main categories:

• Execution
• Marketing/Sales

This section provides an overview of the key
considerations and available resources.






Execution For additional BPOS instruction, MSPs can leverage
Establish a BPOS Integration Plan and Ready the resources on the Microsoft Partner Network. For
the Organization MSPs interested in becoming the partner of record
When integrating BPOS into an existing managed- for customers so that they can generate referral and
services portfolio, MSPs will first want to ensure annuity revenue streams, the following link provides
that their IT professionals and sales representatives guidance on how to register as a BPOS partner:
have the appropriate level of training to effectively https://www.quickstartonlineservices.com/Pages/
promote and deliver BPOS services. BPOS is a product Default.aspx.

designed for ease of management, but as is the case
with any technical solution, it requires proper planning

Readiness Checklist
and deployment oversight. Issues like data migration,
remote administration, and integration with on-premises
… Provide initial and ongoing BPOS training for
technical and sales staff.
applications will need to be considered when planning
… Leverage the resources on the Microsoft
a BPOS deployment. Based on the findings in the

Partner Network to get started.

cloud-services study,* it is recommended that MSPs
plan for a full day of training to launch the services
and at least six additional days of ongoing training per
quarter (or roughly two days each month).

To identify BPOS training, MSPs can visit

http://www.microsoftlearningplans.com/Setup.aspx.




Execution Readiness Checklist
Integrate BPOS into the MSP’s Financial Model
Successful MSPs already have financial practices and
… Integrate BPOS into the MSP’s financial model.
tools in place for billing and capturing revenues for
their managed-services business. These practices and
tools will likely transfer well to the BPOS model.

MSPs considering the BPOS referral- and annuity-

based revenue model will find it relatively simple to
participate in, especially since initial investments are

minimal because there is no additional hardware or
infrastructure to purchase.

MSPs can utilize the Microsoft Partner Profitability

Modeler Tool to build out their financial plan for adding
BPOS to their portfolio of services.

For more information on fees and payments, MSPs

can review the Quickstart for Online Services
Resource Center.




Execution For more information on activating BPOS customers,
Integrate BPOS into Customer Engagement business rules, and policies, MSPs can visit the
Resources and Processes Microsoft Online Subscription Program Guide for
Integrating BPOS into an MSP’s current practices for Partners.
customer engagement should be straightforward for
most MSPs. The processes that most MSPs use for For more information on managing customer migration
their existing services to bring customers onboard, to BPOS, partners can utilize the BPOS Migration
provide migration services, and manage ongoing Toolkit for Partners.

engagements should translate well to a BPOS
offering. One difference may be that MSPs using For ongoing customer management of BPOS and

BPOS as a gateway product to attract new customers other services, MSPs will want to make sure they have
will need to identify the types of customers they want processes in place to facilitate continuous engagement
to target. Those MSPs may also need to invest in with key operational, financial, and executive contacts
demand generation. It will also be important to have a with their customer’s organization to maintain a

stable, repeatable, branded methodology for bringing strong relationship and reinforce the MSP’s value.
new BPOS customers online, without interrupting the In the cloud-services study, MSPs indicated that
customer’s operations or the flow of the MSP’s maintaining strong, ongoing customer contact is
services. Partners will want to document this process the most important factor for building a successful

for BPOS and ensure that in includes: online-services practice.*
• An initial customer-needs assessment.

• Clear service-delivery definitions and delivery
protocols like service-level-agreement (SLA)

enforcement launch points, environment
stabilization, and operations integration.
• Clear service-escalation conditions and processes.




Additionally, MSPs may want to consider effective Readiness Checklist
practices to maintain a supportive, long-term relationship
as the partner of record in a BPOS engagement.
… Document the BPOS customer on-boarding
BPOS includes technical support for IT professionals, process.
but it is also likely that customers will want to continue … Develop clear BPOS service-delivery
using the partner of record as a trusted advisor. MSPs definitions and delivery protocols.
will to want to define the support role they will play as … Develop clear service-escalation conditions
BPOS partner of record, as well as any additional
and processes.

support provided as part of a billable, managed service.
This may include services like end-user support for
… Integrate BPOS into a project-management

the customer. solution to track opportunities and
engagements.
For more information on managing BPOS customer … Integrate BPOS into service reporting.
relationships, MSPs can visit https://partner.microsoft.

… Integrate BPOS into quarterly business reviews.

com/global/program/managemembership/
mmpartnerdashboard.





Marketing/Sales Positioning BPOS within the existing managed services
Position BPOS within the MSP’s Managed Services in an MSP’s portfolio is dependent on the type of service
For MSPs, the first step in generating demand for the MSP provides. Below are some suggestions for
BPOS is ensuring that the partner’s organization is positioning BPOS within specific types of managed
armed with the information it needs to effectively services. In all cases, BPOS can be a self-supporting
promote the solution as part of the overall portfolio of revenue generator if the MSP becomes the partner of
services offered by the MSP . record for the BPOS deployment.

Type of Managed Service Aligning with BPOS

Network infrastructure While managing and monitoring a customer’s network, an MSP can open a discussion
management. about the customer’s office infrastructure. The MSP can ask questions such as “Have you
had any difficulties maintaining or growing your office infrastructure?” or “Is your e-mail,
messaging, and collaboration infrastructure giving you the performance and reliability
you need?” Based on the customer’s responses, an MSP can highlight the benefits that

BPOS provides related to performance, reliability, and data protection (including backup

and security).

Remote desktop MSPs that remotely manage the desktops within their customers’ organizations are in
management. a great position to understand their customers’ challenges related to maintaining and
upgrading collaboration and messaging applications. These MSPs can explain how
BPOS helps customers reduce the time it takes to upgrade software on each individual

client. MSPs can also show customers that, with BPOS, employees will always have
access to the newest functionality of their office messaging and collaboration software.

Voice-over Internet MSPs providing VOIP services should look for customers that are interested in cost-

Protocol (VoIP) services effective communications solutions like collaboration, Web conferencing, and instant
messaging (IM). With these customers, MSPs can find natural ways to open
conversations around the many benefits BPOS includes for cost-effective collaboration
and communications solutions.




Marketing/Sales The same research also found that customers with
Align BPOS Value Proposition with Target Customers fewer than 500 seats look for the following characteristics
For MSPs that focus on customers with fewer than when evaluating an online-services solution:
500 seats, the cloud-services study* revealed some • Technical stability.
interesting insights about the BPOS opportunity and • Functionality.
target market. The research found that the SMB • Clear value proposition.
market will be the fastest-growing online-services
segment for a variety of reasons. MSPs that arm themselves with an understanding of

the factors that are driving customers’ business
For customers with less than 100 seats, the research decisions will be in a great position to demonstrate

revealed that common customer characteristics and how BPOS can meet these needs.
buying behaviors make a solution like BPOS especially
attractive. These characteristics and buying behaviors For more information on the benefits of Online
include no (or limited) IT staff and informal budgeting Services and BPOS, MSPs can review the Online

and decision-making processes. As expected, deal Services Datasheet.
sizes will be smaller in this segment, but the sales cycle
with these customers is typically half the length of the Next, an MSP needs to translate BPOS offerings and
sales cycle with a customer with more than 100 seats. the value that the MSP provides through its services

into a well-defined solution that can be articulated and
For customers with 100 to 500 seats, the research delivered to the customer. The goal here is to define:

identified common customer characteristics and buying • What an MSP will offer, and why it benefits customers.
behaviors such as dedicated IT staff and more formal IT • How the MSP will provide the service, and why it is

budgeting and decision making. As could be expected, uniquely qualified to deliver it.
deal sizes were larger, but sales cycles were longer. • What specific, measurable results customers
should expect.




Partners will want to tailor their BPOS messaging to Readiness Checklist
the different decision makers and influencers within
their customers’ organizations. End users and
… Understand the target customer’s
line-of-business leaders will be focused on how the office-infrastructure business needs and
solution can make their daily activities easier and decision-making criteria.
more efficient, so partners will want to highlight the … Map BPOS offerings and services value to
features, simplicity, and seamless performance of these needs.
BPOS when engaging BPOS with these individuals.
… Integrate the BPOS offering and benefits

IT decision makers will be focused on reliability and
into the MSP’s value proposition.
ease of management, so partners will want to focus

these discussions on the simplified management
tools, automatic updates, and the business-class security
and reliability of BPOS. Executive decision makers
will want to ensure that the solution creates business

value, so partners will want to underscore the financial
advantages of BPOS and its potential to drive productivity
when meeting with executives.

For more information on positioning the value of the
BPOS service, MSPs can review the BPOS Business

Value Whitepaper.




Marketing/Sales
Establish and Execute a BPOS Sales Plan
Once MSPs have determined how they will integrate BPOS into their existing managed-services portfolio, they are
ready to develop their BPOS sales plan. From a sales perspective, BPOS can offer MSPs three distinct advantages:

BPOS Advantages for MSPs
1 Increase the number of BPOS helps increase the number of overall opportunities by serving as a
overall sales opportunities. gateway product to customers that previously may not have been interested

in or able to adopt an MSP’s services. BPOS can also enable MSPs to attach
additional services to a BPOS deployment.

2 Increase profitability per A BPOS partner of record receives incremental revenue at very little cost to
customer. the MSP (e.g., minimal additional infrastructure costs). This makes becoming
a partner of record to a BPOS customer a very profitable opportunity. In
addition, when an MSP becomes the partner of record for a BPOS customer,

the MSP has an opportunity to sell additional high-margin services to that

customer.
3 Increase the overall MSPs can use BPOS to bolster their competitive advantage when engaging
customer win rate. with new and existing customers. When MSPs are selling into customers with
limited IT budgets, BPOS can provide a high-value solution to bring that

customer onboard and develop a long-term, profitable relationship.




To take advantage of these opportunities, MSPs will Compensation Considerations
want to add BPOS to their overall sales plan. The sales • Develop a compensation plan that is aligned to
plan should include: the components of total solution sales (BPOS plus
• BPOS target customer profile. additional partner services).
• BPOS focused marketing and demand-generation • Offer sales incentives (e.g., SPIFFs) to reward new
budget. contracts/agreements for partner-of-record status.
• BPOS sales-pursuit strategy. • Consider factors like the number of seats, contract
• Updated sales-compensation plan. commitments and terms, and training.

• Updated customer contracts and SLA terms. • Consider an annuity incentive that mirrors the
partner’s revenues (e.g., if BPOS annuities are paid

MSPs will want to ensure that their compensation quarterly, sales teams could be rewarded quarterly).
plans include specific goals and rewards for driving the • Create a hybrid model with an incentive that is
behaviors needed to build a BPOS pipeline and drive paid when a contract is signed and an ongoing
sales. To motivate sales teams to drive the desired sales commission to drive both customer adds and

behaviors, it will be important to be transparent and retention.
straightforward in establishing the key differences in the • Clarify the policy if the customer is not retained
BPOS model and the related changes in compensation. through the year.

Some of the benefits of selling BPOS may include The cloud-services study shows that the average
greater sales velocity, shorter sales cycles, industry close rate for similar services is between 15

additional services opportunities, and multiple- and 20 percent. However, with a sound marketing
year annuity commissions. Some challenges may and sales approach, some top partners are

include lower commissions for the initial transaction experiencing a close rate of nearly 45 percent,
and potential differences in the timing of compensation underscoring the importance of developing and
payments. executing a strong sales plan.*




For information on targeting customers and prospects, Readiness Checklist
MSPs can review the BPOS Customer Targeting Guide.
… Integrate BPOS into the sales plan, which
For help developing marketing materials and should include:
campaigns, MSPs can utilize the Microsoft Online • BPOS target customer profile.
Services Campaign Sales Toolkit. • BPOS focused marketing and demand-
generation budget.
For a BPOS sales presentation that can be used with
• BPOS sales-pursuit strategy.

customers and prospects, MSPs can leverage the
BPOS Customer Presentation Template. • Updated compensation plans.

• Updated customer contracts and SLA
MSPs can also download the BPOS Telemarketing Script. terms.
… Leverage case studies to provide a believable
For BPOS case studies, MSPs can review various BPOS

measure of expected results.

Case Studies.





Readiness Checklist Summary

Establish a BPOS Integration Plan and Ready Align BPOS Value Proposition with Target Customers
the Organization … Understand the target customer’s
… Provide initial and ongoing BPOS training for office-infrastructure business needs and
technical and sales staff. decision-making criteria.
… Leverage the resources on the Microsoft Partner … Map BPOS offerings and services value to these
Network to get started. needs.

… Integrate the BPOS offering and benefits
Integrate BPOS into the MSP’s Financial Model into the MSP’s value proposition.

… Integrate BPOS into the MSP’s financial model.
Establish and Execute a BPOS Sales Plan
Integrate BPOS Into Customer Engagement … Integrate BPOS into the sales plan, which should
Resources and Processes include:

… Document the BPOS customer on-boarding • BPOS target customer profile.
process. • BPOS focused marketing and demand-
… Develop clear BPOS service-delivery generation budget.
definitions and delivery protocols. • BPOS sales-pursuit strategy.
… Develop clear service-escalation conditions and • Updated compensation plans.

processes. • Updated customer contracts and SLA terms.

… Integrate BPOS into a project-management … Leverage case studies to provide a believable
solution to track opportunities and engagements. measure of expected results.

… Integrate BPOS into service reporting.
… Integrate BPOS into quarterly business reviews.




How Can MSPs Develop Other Services • End-user support and training. BPOS includes
Opportunities around the BPOS Offering? technical support for IT professionals but not for
MSPs typically have strong experience offering end users. MSPs can provide end-user support to
services that generate recurring revenue streams, and their customers. In addition, based on an MSP’s
customers moving to a subscription-based model of firsthand knowledge of its customers, the MSP can
buying software are more inclined to purchase other offer tailored support options and training to
services on a subscription basis. Thus, MSPs should increase customer satisfaction and broaden adoption.
always be looking for other opportunities to sell • Business-process workflow consulting.

recurring or subscription services that add value to SharePoint development, workflow, and collaboration
BPOS, such as the following: consulting give MSPs the opportunity to help grow

• Delegated administration. One of the newest their customers’ businesses and drive incremental
features being developed for BPOS is Delegated revenue.
Administration, which enables customers to • Consultation on new capabilities. With upgrade
delegate BPOS administration to an MSP For an
. barriers removed, customers will always be using

MSP becoming the administrator for a customer’s
, the latest versions of software and will be ready
BPOS subscription will feel like familiar territory. to take advantage of current technologies. MSPs
Delegated administrators can remotely add and can provide migration, integration, training, and
remove users, configure applications, and perform consulting services that are a natural extension of

other well-known administration functions on utilizing the capabilities in the latest version of each
behalf of a customer. An MSP with multiple BPOS software application.

customers can administer all of its customers’
BPOS deployments from one console on a single

Web portal.




From this starting point, MSPs can begin to identify other services that map to the pre-implementation, implementation,
and post-implementation stages of a BPOS deployment. The following table provides a more comprehensive list
of services that can be attached to BPOS:

Attaching Services to BPOS up, bigger
• spice it
Pre-implementation. • Education
• Needs assessment
• Design consultation

Implementation. • Application integration • Customization

• User and content migration • Workflow configuration
• Management configuration • Business-process consultation
Post-implementation. • Training • Measurement and reporting

• End-user support • Ongoing administration and monitoring

• Change management





How Can MSPs Create Demand for BPOS Target Opportunities
and Drive Sales? Offering BPOS solutions to SMB customers requires
This section contains some specific best practices identifying and targeting what drives customers to
that MSPs can consider when promoting the BPOS adopt online services as a viable business opportunity.
solution and selling related services. These practices The cloud-services study identified some of the key
include: drivers that attract customers to online services:*
• Providing a competitive advantage was the number
one reason that SMBs were attracted to online

services. SMBs often look to leverage technology
to stay ahead of competitors, but are typically

Deal With
Customer constrained by budgetary issues.

Translate
Concerns • Limited capital investments and the need to manage
What MSPs cash flows were also cited as top factors, driven by
Offer to What the budgetary constraints that many SMBs face.

Customers Want • Lower IT-management requirements and ease of
Target
Opportunities integration associated with online services rounded
out the top drivers, primarily because of limited IT
Sell to Business resources within most SMBs.

Decision Makers

Invest in Demand

Generation and
Marketing




Invest in Demand Generation and Marketing productivity and customer-satisfaction challenges by
MSPs seeking to use BPOS as a gateway product to working more closely with business owners and decision
generate opportunities with new customers will want makers. The cloud-services study found that 42 percent of
to review their marketing budgets to integrate BPOS partners that are successfully marketing online services
into their messaging and demand generation. worked primarily with BDMs, rather than TDMs.*
Best-in-class BPOS partners have learned that they
need to develop more sales opportunities by investing Translate What MSPs Offer to What Customers Want
more in demand generation and marketing. In the In addition to identifying the right contacts, MSPs that

cloud-services study, it was discovered that best-in-class are successful at selling online services focus their
BPOS partners invest as much as 16 percent of their discussions on business value of online services, not

total revenues in marketing.* technical capabilities. These MSPs emphasize the S+S
model as a great way to give customers the power
For help developing marketing materials and of choice. With the addition of BPOS to an MSP’s
campaigns, MSPs can utilize the Microsoft Online portfolio, the partner can provide its customers with a

Services Campaign Sales Toolkit. more comprehensive offering that delivers the value
that BDMs are seeking from technology solutions.
Sell to Business Decision Makers This value includes low upfront costs, high return
MSPs understand the importance of targeting the on investment, and low IT-management overhead.

right contacts within a customer organization when With BPOS, MSPs have an offering that addresses the
selling services. With BPOS, because there are fewer needs of smaller, budget-constrained customers.

technical decisions involved and because of the
financial benefits, partners can focus on communicating

with BDMs. Rather than primarily engaging with technical
decision makers (TDMs) on point solutions, MSPs can
identify and address more comprehensive business-




Deal with Customer Concerns
The cloud-services study found that the top customer concerns that may inhibit BPOS adoption are related to
reliability, connectivity, and security (including compliance and privacy).*

Answers to Customer Concerns
Reliability of Microsoft offers a 99.9 percent scheduled uptime SLA. Additionally, in order to protect
Service customer data, all information is regularly backed up to a datacenter in a different geographical
region from the hosting datacenter.

Network When using the standard edition of BPOS, customers do not need to provide dedicated

Connectivity network connectivity to the service. Data exchanged between Microsoft datacenters and
customer sites are secured with 128-bit encryption (i.e., “https” encryption). Depending on
the bandwidth of the customer’s current network connection, some customers might have to
upgrade their existing network connection. When using the dedicated edition, a dedicated
network connection is required and is the responsibility of the customer.

Compliance In almost all cases, BPOS allows a customer to meet privacy compliance requirements,
depending on the customer’s jurisdiction and industry requirements. However, partners are
encouraged to visit QuickStart Online Services and run a search on compliance or security
for the latest information on this topic and to access related resources including white papers,
overviews, and presentations.

Security and Each of the services that is part of BPOS has been built to adhere to Microsoft internal privacy
Privacy standards, as described in “Microsoft’s Privacy Guidelines for Developing Software Products and

Services.” This set of standards helps ensure that privacy and data protections are systematically
incorporated into the development and deployment of almost all Microsoft products and

services. Additionally, each of these services has a privacy statement that describes in detail
how customer data will be treated, is enforceable through U.S. Federal Trade Commission (FTC)
rules, and is incorporated into the Product Use Rights of the customer’s license.



Microsoft® Business Productivity Online Suite Frequently Asked Questions

Frequently Asked Questions Q Can MSPs Monitor and Manage BPOS
Services for Their Customers?
In making this transition, MSPs will likely have some of A Microsoft is currently developing a new online-
the following questions: services feature called Delegated Administration.
Delegated administration enables MSPs to
Q Should MSPs Focus on SMB Customers? manage a BPOS deployment on behalf of the
A Many of the opportunities related to S+S will be customer. This new feature, along with other
among SMBs. Traditionally, these organizations BPOS hosted-management solutions already

have not had the resources to invest in and available in the market, provides a way for
manage enterprise-level communication and hosters to add value and develop incremental
collaboration infrastructures. However, with the revenues through a BPOS engagement. BPOS
value and lower managerial overhead offered can also be monitored and managed through
with BPOS, many of these customers can now Level Platform’s Managed Cloud Services

afford to adopt these solutions. platform. For more information, MSPs can

visit http://levelplatforms.com/Product/
Q Where Is the Optimal Online-services cloud-services.aspx.
Revenue Opportunity?

A Leading edge online-services partners drive

over 60 percent of their revenues from services
provided before and during the transactions.*
This underscores the value of additional
consulting-based offerings that can be wrapped

around BPOS.




Q What Support Does Microsoft Provide Q What Are the Partner Ordering
MSPs around the BPOS Licensing Capabilities?
Model? A Microsoft Online Services now enable partners
A Microsoft has comprehensive licensing to initiate BPOS orders on behalf of their
documentation and training available as part of customers. Using these capabilities, partners
the Quickstart for Online Services (http://www. can ensure they get credit for the customers they
quickstartonlineservices.com) and the Microsoft refer to BPOS and provide value to customers
Partner Portal (http://partner.microsoft.com). by helping them make purchasing decisions.

Licensing and technical training is also offered The Microsoft Online Partner Sales Portal
through local Microsoft events and Webcasts. enables partners to configure orders with the
services and quantities they recommend for
Q What Is a Partner of Record? their customers and send the pre-configured
A The designation of a partner of record triggers orders to customers for completion. Partners

the fee payments to partners. A program can also initiate trials for their customers,

requirement is that fees are only paid to ensuring that they will be the partner of record
authorized partners designated as the partner for their customers’ trials. MSPs can access the
of record. Partner-of-record designation is ordering tool through http://partner.microsoft.

controlled by the customer and can be changed com or https://sales.partner.microsoftonline.com.

anytime in the customer’s administration center.




Q What Is the Partner Commerce Q How Do Partners Access the Commerce
Dashboard? Dashboard?
A The Commerce Dashboard provides partners A Gold, Certified, and Registered partners that
with visibility into Microsoft Online Services and have accepted the Microsoft Online Services
BPOS sales activity all in one place. It allows Partner Agreement (MOSPA) can access the
partners the ability to get critical status on trials Microsoft Online Services Partner Commerce
and subscriptions and enables partners to Dashboard at Microsoft Online Services Partner
estimate annual fee revenues. Partners can work Commerce Dashboard.

within the Commerce Dashboard or export the
information to Microsoft Excel 2007 to be imported
into a customer relationship management (CRM)
system. Partners can also use the dashboard to
find out which customers have added them as

their partner of record after the initial purchase,

and likewise, which customers have removed
them as the partner of record.





Q How Can Partners Get Trial Versions Q What Is Delegated Administration?
of BPOS? A Delegated Administration enables MSPs to
A Partners can sign up for a Microsoft BPOS trial administer the BPOS service on behalf of their
using a Windows LiveTM ID that has registered customers. Delegated partners can have
with the Microsoft Partner Program at http:// multiple “agents” assigned to a single customer’s
mocp.microsoftonline.com. BPOS account, enabling multiple individuals
(“agents”) to participate in the administration of
Additionally, Microsoft offers a unique benefit the customer’s BPOS deployment. In addition,

to MSPs that have signed the MOSPA on the partners with multiple customers that have
Quickstart for Online Services site. The “Internal delegated administration can manage
Use Rights Benefits for Partners” offers partners administration for each customer through a
a no-cost version of BPOS for internal use. The single online portal. For partners, delegated
benefit includes use for up to 250 seats for one administration is simplified by not having to

year. After the initial year, MSPs can continue to worry about physical infrastructure, which

use BPOS at no cost by referring at least two makes it a great opportunity for MSPs to add
new BPOS customers annually. MSPs that are another managed service to their portfolios.
unable to refer at least two new BPOS customers

each year are still able to take advantage of

discounted pricing by paying only $5 USD per
seat. Some restrictions apply. Interested MSPs
should visit http://mocp.microsoftonline.com.



Microsoft® Business Productivity Online Suite Next Steps for Partners


Once MSPs have decided to offer BPOS solutions and sell related services, what are the steps to getting started?

Step 1 Step 2 Step 3 Step 4

To register as a BPOS Once registered, MSPs MSPs can use the Once MSPs have
partner of record, an can go to the Quickstart Microsoft Partner determined that they
MSP must first be program to register as a Profitability Modeler are ready to make an

registered within the Microsoft Online Services Tool to work out which investment in online
Microsoft Partner Partner (https://www. business models will suit services and offer BPOS
Network. To do so, quickstartonlineservices. their businesses best. solutions, training is
MSPs can join at www. com/Pages/Default.aspx). In addition to helping available for technical,
microsoft.com/partner. The Quickstart program partners select a sales, and marketing staff.
Registering is free and enables partners to business model that will MSPs can visit http://


only takes 15 minutes. complete the simple suit their business, the www.microsoftlearning

process required to earn tool also calculates when plans.com/Setup.aspx.
fees from being a BPOS MSPs can expect to see Additionally, a wide range
partner of record. a return on investment of marketing collateral
from Microsoft Online is available, such as
Services. images, e-mail templates,

branding assistance,

messaging, to-customer

presentations, and more
at Microsoft Ready-to-Go
Marketing Services.




Microsoft® Business Productivity Online Suite In Conclusion:
The BPOS Opportunity for MSPs

In Conclusion: The BPOS Opportunity of the new opportunities that are emerging with online
for MSPs services such as BPOS. These opportunities include:
• The potential for increased margin and new
Unlike some technology offered by other vendors that sources of recurring revenues.
focus almost exclusively on cloud-based solutions, • The ability to drive more potential sales through
the future technology landscape of Microsoft will a broader set of solutions that attract a wider
be characterized by a combination of on-premises audience of potential customers.
software solutions running alongside (and integrated • The ability to protect existing customers.

with) online services. • The opportunity to engage with BDMs within
customer accounts to generate interest in online
With this approach, MSPs can continue managing services and other solutions.
In Conclusion: The BPOS Opportunity for MSPs

their customers’ on-premises environments, while • The ability to introduce an online-services offering
potentially growing their revenues by taking advantage with minimal overhead costs.



*

IPED. Microsoft Saas Study. September 2009.
‡ IDC #220192. “Enterprise Mobility in the Cloud.” October 2009.
¥ Yankee Group. “Netbooks Mean Business Channel.” August 2009.
₤ IPED. State of the Market Study. November 2009.


©2010 Microsoft Corporation. All rights reserved.  50

BPOS for the MSP

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