Microsoft Reverses Course On SBSC Program

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Microsoft has put off plans to introduce two new small business partner designations to its channel program, and has instead opted to stick with its existing Small Business Specialist Community (SBSC) designation.

Eric Ligman, global partner experience lead in Microsoft's Worldwide Partner Group, says Microsoft has come to the realization that the SBSC label still carries considerable weight and that adding two new small business competencies to the Microsoft Partner Network "could lead to more confusion than clarity" within the solution provider ranks.

"In the small business segment, we are 'doubling-down' on the SBSC designation by making it our lead MPN offering for partners serving the needs of small business," Ligman said in a blog post last week.

Microsoft this October had planned to roll out its new Small Business Solution Provider competency and Small Business Solution Provider Advanced competency. For SBSC partners, these new designations were to require more certifications and sales and marketing assessments. For the Advanced competency, partners would also have to meet certain revenue requirements.

Although Microsoft always planned to keep the SBSC designation, the idea behind the two new ones was to give partners incentive to move up in the program. However, Microsoft says it now believes that SBSC may be sufficient to meet the needs of its entire small business partner community.

"We are postponing the launch of the Small Business Competency and Small Business Advanced Competency in the upcoming year to further evaluate the need to have a separate offering outside of SBSC in the small business segment," Ligman said in the blog post.

Microsoft partners who were looking forward to the new MPN competencies as a point of differentiation from other VARs are perplexed by the decision. "It’s puzzling that Microsoft would push off the introduction of a key segment of their partner community," said Dave Sobel, CEO of Evolve Technologies, a Fairfax, Va.-based Microsoft partner.

The small business space is served almost exclusively by Microsoft solution providers, and these partners have exhibited fierce loyalty to the company over the years. But larger SBSC partners have been clamoring for years for a way to distinguish themselves from the smaller ones, and they're none too pleased with Microsoft's decision to keep all small business partners under the SBSC umbrella.

"To me, this really devalues the MPN, as there is now no place for me to be distinguished as a large, more sophisticated, more advanced SMB partner within that program," said Michael Cocanower, president of Phoenix-based Microsoft solution provider ITSynergy. "Why Microsoft has decided to stay with SBSC and abandon the competencies within MPN is a mystery to me."

As Sobel notes, successful marketing programs must evolve and grow in order to remain effective, and Microsoft's about-face on SBSC could be problematic for partners that are renewing. "MPN is already somewhat confusing, and smaller partners will be even more confused without clear direction," he said.

Brad Kowerchuk, president of Bralin Technology Solutions, based in North Battleford, Saskatchewan, says the situation is reminiscent of previous Microsoft attempts to create partner differentiation within the small business VAR ranks.

"It appears that Microsoft was on a path driven by logic and purpose, and then caved at the last minute when there was pushback," he said. "Even if the proposed new competencies did not get it right, Microsoft's dramatic reversal has created the perception that they have been -- yet again -- driven mainly by the vocal minority."

Next: Bubbling Discontent In The Small Business Channel

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