No Competition

Sinneck, who spent 32 years at IBM before joining Microsoft in January, told several thousand partners here at Fusion 2002 that Microsoft is not interested in building an IBM Global Services-like business.

"At Microsoft, services is a means to an end," said Sinneck in his first major public appearance as the vendor's top services executive. "We're not confused. We had MCS [Microsoft Consulting Services focused on profits. . . and then we got the wrong behaviors. I think we have [put the brakes on that. Microsoft's commitment to you is, we're not going to compete."

As icing on the cake, Sinneck has initiated a new 15 percent discount for partners that subcontract services through MCS, and will offer additional business investment funds for partners committing to specific go-to-market plays.

In addition, according to Microsoft documents, the company plans to extend its existing Microsoft Premier Support Services,an offering for enterprise customers,to systems integration partners on the high end and to solution providers that serve SMB customers.

Microsoft is pilot-testing the Premier Support Services for Partners, Systems Integrator Program at a cost of $68,000 annually for 400 base hours.

The company is also planning a lower-cost version, priced at $20,000 annually for solution providers serving the SMB space, that will include fewer hours. Both rates represent major discounts from the company's existing Microsoft services.

The services program for systems integrators will provide just-in-time consulting, redistribution of binaries and access to support for Microsoft products and solution offerings.

Sinneck acknowledged that skirmishes between solution providers and Microsoft's field-sales force during the last calendar year "hit a fever pitch," but said the conflicts will be avoided as salespeople are given financial incentives to bring partners in on as many contracts as possible and serve as prime contractors only when necessary.

"Sure, we'll have to prime from time to time, but our preference is not to prime," he said. "We want you to prime."

Sinneck's comments were met with a round of applause from solution providers, who were told at the annual conference that executive compensation,including that of vice presidents and general managers,will in the future be tied to customer and partner satisfaction.

Partners praised Sinneck's no-competition and partner-first pledge.

"I was very impressed with the fact that they want to support and develop partners, particularly on the services side," said Fusion attendee Frank Cullen, a principal at Blackstone and Cullen, an Atlanta-based solution provider. "They're investing in making partners, and doing better in sharing leads," he said.

Ken Winell, CEO of Econium, a Totowa, N.J.-based solution provider, said Sinneck's hard-nosed effort to get MCS to partner with solution providers is taking hold. "Sinneck tore down the foundation [of MCS and is building it back up," he said. "We're seeing the change in the field."

Sinneck said he's determined to make sure Microsoft follows through on its promise to work more closely with solution providers.

"The things I say to you today will come true," he said. "I'm relentless. I'm like a dog on a bone."

Barbara Darrow contributed to this story.