FEATURED VIDEO
Sponsored By:
SLIDE SHOWS
As if they needed more stress, organizations are facing evolving and increasingly stringent compliance regulations from the Payment Card Industry, as well as Sarbanes-Oxley, HIPAA and others. Here are a few security compliance products that can make the audit process less excruciating.
Here are 10 of the distributor's hottest new offerings winning over solution providers.
New smartphones from Sony, Motorola and the first-ever Twitter-only mobile device -- the TwitterPeek -- headline a busy week for handset makers as the holiday shopping season heats up.
INSIDE CHANNELWEB
BLOGS
The Channel Wire
July 14, 2008
Microsoft has a lot of work to do to convince channel partners that its move into Software as a Service is as good for them as it is for Microsoft.

A ChannelWeb poll last week asked Microsoft partners whether the news from Microsoft's Worldwide Partner Conference in Houston would delight, disappoint or anger them. And right now the news isn't good for the vendor.

As of Monday morning, 46.67 percent—nearly half of those voting—expressed anger at Microsoft's announcements at the conference. Another 26.67 percent said the news was disappointing, while only 26.67 percent said it would delight them.

At the conference Microsoft executives for the first time offered details of how the channel will fit into the vendor's Software Plus Services initiative. That included Microsoft's divulging plans to offer partners that sell the Online portfolio of hosted services, including Exchange, SharePoint and Office Communications Server, 12 percent of the first year's subscription value and 6 percent of ongoing monthly fees.

Channel partners are worried that by offering hosted services directly to customers, Microsoft could reduce the role of solution providers in working with customers—or cutting them out of the picture altogether. Microsoft executives have repeatedly said channel partners will play an important role by providing customers with consulting and support services.

But those promises are undercut by such Microsoft moves as last week's announcement of the Windows Vista Small Business Assurance program through which Microsoft will provide phone support directly to Vista customers—an announcement that left channel partners asking where they fit in. Microsoft CEO Steve Ballmer, answering a written question from the audience after his keynote, said the program is targeted toward very small businesses that don't work with VARs.

In speeches at the conference Microsoft executives, including Ballmer and COO Kevin Turner, made it clear that Microsoft is aggressively moving to SaaS and—like it or not—channel partners must move with it.

Ballmer's correct in saying that many customers want to adopt SaaS. And Microsoft's position that offering its products through on-premise, partner-hosted and Microsoft hosted channels provides more choice for customers is also true.

Microsoft, however, can't forget that something on the order of 96 percent to 97 percent of its sales are generated through partners. As it moves into SaaS, it has to improve communications with partners each step of the way—particularly to avoid miscues such as its 180-degree turn away from its earlier promise to offer its Online services directly only to companies with more than 5,000 employees. Expanding partner training and education to help them move to a SaaS world must also be high on the list.

All through the partner conference the message from Microsoft executives was how hard they are working to make the Software Plus Services push as much of a business opportunity for solution providers as it is for Microsoft. Judging by our poll results, actions will speak louder than words.

Posted by Rick Whiting at 2:09 PM
ADVERTISEMENT




CHANNEL SERVICES >>