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 Channel Futures

Technologies


Microsoft Online Services: SaaS Pricing, Partner Strategy Announced

  • Written by Joe Panettieri 1
  • July 8, 2008

Microsoft has announced pricing and partner details for Microsoft Online Services — the company’s software as a service (SaaS) product portfolio. At the Microsoft Worldwide Partner Conference in Houston, the company also pushed downstream with entry-level SaaS offerings for so-called “deskless workers” who don’t spend much time on computers but still need to collaborate with peers.

Here’s a quick overview of the product portfolio, and the implications for managed service providers.

Microsoft Online Services include Microsoft Exchange Online, Microsoft Office SharePoint Online, Microsoft Office Communications Online, Microsoft Office Live Meeting, and Microsoft Dynamics CRM Online.

The new Exchange Online Deskless Worker and SharePoint Online Deskless Worker starts at $3 per user per month. According to a Microsoft press release, the solution includes e-mail, calendars, global address lists, anti-virus and anti-spam filters, as well as Outlook Web Access Light for access to company e-mail. SharePoint Online Deskless Worker gives employees read-only access to corporate SharePoint portals. A higher-end version of the suite — for so-called information workers — costs $15 per user per month.

So, where do partners enter the financial picture? According to Microsoft:

Partners that sell Microsoft Business Productivity Online Suite, Deskless Worker Suite or any of their components receive 12 percent of the first-year contract price and 6 percent of the subscription fee ongoing. This can translate into 18 percent of the subscription value in the first year of the partner’s relationship with the customer.

Partners that want more info can visit http://www.quickstartonlineservices.com.

I’m still not sure about Microsoft’s partner pricing model for Exchange Online, Dynamics CRM Online and other higher-end solutions. But I’ll be poking around this week to find more answers.

The Bottom Line

Microsoft will surely make its share of mistakes as it pushes into the SaaS market. And in some cases, the software giant will wind up competing with partners. I’ve taken my shots at Microsoft over the years, but in this case I do believe the company will be working overtime to engage partners with its SaaS opportunities.

As MSPmentor stated earlier today, there are at least five reasons why Microsoft will ultimately get its SaaS strategy in order.

Tags: Cloud Service Providers Digital Service Providers MSPs VARs/SIs Cloud Technologies

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4 comments

  1. Avatar Mike Cooch July 9, 2008 @ 1:30 am
    Reply

    I haven’t looked into the details yet, but I struggle to find a way that any partner could make a business out of selling these services at such low prices and with such low margins.

    Mike Cooch
    http://www.smbitpros.com
    http://www.everonit.com

  2. Avatar Joe Panettieri July 9, 2008 @ 1:39 am
    Reply

    I hear you, Mike.

    I’m not an MSP (and I don’t play one on the Internet). But if I was in the MSP game, I’d skip the low-end commodity stuff that Microsoft is selling at $3 to $15 per seat per month. Let Microsoft compete — alone and directly — against Google Apps for that low-end market.

    On the other hand, I do think MSPs can add value and make money hosting Exchange Server, Dynamics CRM and/or SharePoint. (Though it seems like the Exchange and SharePoint hosting markets are getting crowded fast.) But that’s just an educated guess from a guy who doesn’t actually have to build and deploy this stuff…

  3. Avatar mcooch July 11, 2008 @ 2:23 am
    Reply

    Agreed. I think custom hosting situations will provide a lot of opportunity, but reselling basic services such as these just don’t cut it.

    Mike

  4. Avatar Tom August 5, 2008 @ 8:53 am
    Reply

    what ms is offering is SAAS for big business. the productivity suite is not suitable for small businesses because all of its components are unintegerated and will need implementation and management effort. alternative solutions to exchange and sharepoint are more viable for this segment because they offer all the features relevant to this segment, and are integrated and ready to use from day one.

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