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 Channel Futures

Business Models


Microsoft Partners Move 1,000 Customers to Cloud Computing

  • Written by Joe Panettieri 1
  • March 21, 2011
Microsoft's top U.S. channel partners have moved more than 1,000 customers to cloud computing and BPOS (Business Productivity Online Suite), MSPmentor has learned. The 1,000-customer milestone arrives at a critical time for cloud computing and the Microsoft Partner Network channel program. Here's why.

Microsoft’s top U.S. channel partners have moved more than 1,000 customers to cloud computing and BPOS (Business Productivity Online Suite), MSPmentor has learned. The 1,000-customer milestone arrives at a critical time for cloud computing and the Microsoft Partner Network channel program. Here’s why.

As Microsoft Worldwide Partner Conference approaches in July 2011, it’s safe to expect Microsoft to aggressively ramp up its messaging to channel partners. One of the key challenges: When Microsoft announces big cloud computing wins, the news typically involves direct sales to global 2000 companies. Another challenge: Microsoft doesn’t allow channel partners to manage end-customer cloud billing, a stance that has alienated some partners.

Even so, Microsoft’s cloud partner strategy has its share of defenders and supporters within the IT channel. Look around hard enough and you’ll discover Microsoft maintains a list of its top 10 U.S. cloud computing channel partners focused on BPOS, which includes Exchange Online and SharePoint Online.

On the one hand, the list includes potential channel rivals like CDW and Dell. But on the other hand, the top 10 list includes its share of channel upstarts and managed services providers (MSPs). Each partner on the list has migrated anywhere from 65 customers to 390 customers to Microsoft’s SaaS applications. Total BPOS migrations for the 10 channel partners now represent a combined 1,040 end customers, MSPmentor estimates. And sources say some of the channel wins involve global 2000 engagements.

Whether you embrace or reject Microsoft’s cloud strategy one thing is clear: MSPs can’t afford to ignore the growing cloud computing wave, which will surely grow larger as Microsoft prepares to launch Office 365 — the forthcoming successor to BPOS.

Still, Microsoft will be careful to balance its cloud computing and on-premise messaging over the next few months. Although SaaS and cloud opportunities are growing fast, Microsoft will be sure to reinforce its on-premise efforts as WPC approaches in July, MSPmentor believes.

Sign up for MSPmentor’s Weekly Enewsletter, Webcasts and Resource Center. Follow us via RSS, Facebook, Identi.ca and Twitter. Check out more MSP voices at www.MSPtweet.com. Read our editorial disclosure here.

Tags: Cloud Service Providers Digital Service Providers MSPs VARs/SIs Business Models Cloud MSP 501

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5 comments

  1. Avatar Daniel Jefferies March 22, 2011 @ 4:26 am
    Reply

    390? Thats all Microsoft’s number 1 partner has moved?

    That seems like a really low number to me. Are you sure that is accurate?

  2. Avatar Joe Panettieri March 22, 2011 @ 12:53 pm
    Reply

    Daniel: Thanks for the note. I’m confident in my sources.

    On the one hand, you’re right… I think 390 sounds like a low number. But on the other hand look at it this way: The figure represents the number of businesses/organizations CDW apparently has shifted to BPOS. Each of those businesses may have hundreds, thousands, or tens of thousands of BPOS users.

    Generally speaking I believe BPOS got off to a slow start, especially in the channel. But as organizations consider SaaS solutions, I think Exchange and SharePoint are near the top of the list for SaaS consideration… meaning that Microsoft has a compelling SaaS portfolio for small, midsize and large organizations to evaluate.

    Will channel partners more aggressively embrace and promote BPOS/Office 365? I think that’s a different debate.
    -jp

  3. Avatar Chris Day March 22, 2011 @ 1:09 pm
    Reply

    We’ve moved nearly 50 ourselves in Vancouver and Edmonton, so I agree that number seems a little off!

    Chris Day, CEO
    Fully Managed
    http://fullymanaged.com/chris

  4. Avatar Daniel Jefferies March 22, 2011 @ 3:21 pm
    Reply

    Joe,

    Thanks for your additional thoughts. Newmind has moved over 500 clients to Google Apps and I don’t think we are even close to being the largest Google Apps channel partner.

    I’m watching BPOS and 365 very closely but until MS offers full functionality in the browser, drastically simplifies configuration and management and allows partners to control billing it is a no go for us.

  5. Avatar Joe Panettieri March 22, 2011 @ 3:24 pm
    Reply

    Daniel: Thanks for your thoughts and reality check. I’ve said it before and I’ll say it again: I find it ironic that Google allows channel partners to manage end-customer cloud billing, but Microsoft does not.
    -jp

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