MBS Partner Plans
Microsoft this week plans to reassure them that it has no plans to put Great Plains, Navision, Solomon or Axapta business software through the broad Microsoft channel.
"We are reinforcing our commitment to the authorized channel through the launch of a new reseller agreement, the MBS Solution Provider Agreement," said Allison Watson, vice president of worldwide partner sales and marketing at Microsoft, Redmond, Wash.
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BRING MBS INTO THE FOLD
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Microsoft Business Solutions channel changes
>>%A0Basic participation fees cut to $1,500 from $3,500 to $4,500 per year.
>>%A0Additional support incidents available in packs of 10, 50 and 200.
>>%A0Partners can now qualify for Certified or Gold status with MBS competency.>>%A0New Solution Provider Agreement contracts to resell Great Plains, Axapta, Navision and Solomon software extended to two years. (Those products will not be authorized for broad distribution.)
>>%A0Changes kick off July 1; MBS partners have a year to make transition.
>>%A0MBS partners who 'grandfather' into new program must adopt MBS competency, services and support changes immediately.
The contracts, which had been good for a year or less, will now last for up to two years. The news comes as Microsoft details how it will bring MBS partners under its overall program umbrella.
Under the new plan, basic fees for MBS partners will drop to $1,500 per year from benefits that typically cost $3,500 to $4,500 now. The base fee still includes five support incidents, along with online and pre-sales support. Gold partners also will be assigned a technical services coordinator. Partners can buy from a menu of additional support options as needed. Changes will be outlined on the Microsoft partner Web site starting May 4.
The base fee cut was welcomed by MBS partners. "Yearly fees are significant for us, so this is a big deal," said Terry Petrzelka, president of Tectura, a Microsoft partner in Phoenix.
Moving forward, MBS partners retain existing benefits but also can now qualify for Gold and Certified status.
All of the changes kick off July 1, before the company's annual partner conference in Toronto. Partners have a year to make the transition.
Microsoft knows it must treat MBS partners,many of whom have been authorized for some time,with kid gloves even as it tries to turn up the volume on these "high-touch" business applications. Microsoft CFO John Connors recently acknowledged that MBS fared poorly among the seven Microsoft businesses for the company's third quarter ended March 31. For that period, MBS revenue was up just 4 percent to $153 million.
"We aren't having good U.S. execution [mostly because there are] a lot of new people in district positions, and we've been less effective with traditional MBS partners than we were a year ago," Connors told analysts last month.
Microsoft detailed in March plans for eight of its 11 competencies. Changes for the remaining areas,covering licensing and system builders,will be outlined at the partner event. The company first outlined its next-generation partner program to CRN last fall.
The new program boosts Microsoft partners from both the MBS and classic camps, said Andy Vabulas, president of IBIS, Norcross, Ga. "Having one designation with subspecialties beneath it is helpful. Having to deal with one program, one process, instead of two is a huge help," he said.
The new program also should better support partners who invest in skills.
"We have the opportunity now to differentiate ourselves. We spent $2.5 million in training this year alone, and if we don't get rewarded for that, we can .... sit across the table from another partner who has not invested but on paper looks the same," said Dan Duffy, CEO of ePartners, Dallas.
For more on program details, see Microsoft's Partner Web site.