Comments on: Microsoft SaaS: Host It Or Resell It?

By: Joe Panettieri

Joe Panettieri — Tue, 14 Jul 2009 15:44:50 +0000

Shahab: Your timing/feedback is perfect, considering Microsoft launched its hosting partner program — called Microsoft Communication Services — earlier today at the Microsoft Worldwide Partner Conference 2009 (WPC09).

I’m familiar with many of the solutions you mentioned, but less familiar with HyperOffice. I will check it out for readers. Thanks for your readership and thoughts, Shahab.
-jp

By: Shahab

Shahab — Tue, 14 Jul 2009 15:32:54 +0000

Great question you pose Joe – if I were an MSP I would probably just resell Microsoft. The reason is it is too risky to make the infrastructure investment to become a me-too player in this market – and risk going out of business. You just have to look at a very similar trend over the last 10 years. Hundreds of companies began hosting Exchange, by the time hosted SharePoint came around, many hosted Exchange providers went out of business or closed that line of business. As we have seen there was a lot of consolidation with only a few companies who grew mostly organically like Intermedia, or roll-ups like Apptix. So in the end being a reseller of Exchange did not turn out to be a smart move for most participants. For this same reason I think MSPs are safer just reselling BPOS. One thing I would suggest be done differently this time around is to specialize in a geography by having sales reps on the street, or in a particular vertical. Verticals could include industries or even size of clients. For the small businesses (under 100 employee) I would argue there are hosted collaboration suites that are turn-key, simpler (albeit with less features) and aimed specifically at small businesses; I expect MS channel partners will seek to differentiate themselves by partnering with services like Zoho & HyperOffice if they plan on going after the SMB market (since that’s where most of the growth in the collaboration market will be)

By: Joe Panettieri

Joe Panettieri — Mon, 13 Jul 2009 15:53:59 +0000

Pankaj: Thanks for your perspectives. My BPOS briefings with Microsoft are this Wednesday. I’ll be sure to report back. If you have any questions about BPOS you’d like me to ask, please let me know.

email: joe [at] NineLivesMediaInc.com

By: Pankaj

Pankaj — Mon, 13 Jul 2009 15:52:03 +0000

Microsoft’s BPOS does present itself to the reseller model, because in the SaaS domain, customers are looking for a ready to use product plus support package bundle. There is room for a value added product to be built over BPOS to make it end user friendly, and also offer service support.

By: Frank Bennett

Frank Bennett — Tue, 07 Jul 2009 10:47:43 +0000

It is no secret and no big deal that when you sell BPOS your fees paid by Microsoft to you as the Partner of Record are fixed (18% in Year 1 that is 12% initial fee and 6% recurring and Year 2 onwards at 6%. The big focus is on how you make money out of services and that is rapidly developing both through the attention of those partners selling BPOS and Microsoft adding functionality to its Online Services. Thinking of…selling Microsoft Online Services? Ask the Smart Questions. If you are selling or looking to sell BPOS this book will provide you the help you need to figure out your services play with BPOS.