Competegy

Competitive Strategy for Software Companies

10 Tips for Partnering with Microsoft

Microsoft partners invest valuable time and money sustaining their Microsoft relationship. Partners that understand how to efficiently access Microsoft sales, marketing, and technical resources can accelerate business growth. Use the following whitepaper (revised for Microsoft’s FY17) to make the most of your Microsoft partnership. It has been revised to include current Microsoft priorities, incentives, campaigns, and co-sell criteria.Partnering with Microsoft

In summary:

  1. Understand Your Partner Potential (using the Competegy ranking criteria)
  2. Determine Scorecard-Driven Motivations
  3. Decode the Organizational Structure
  4. Refine Your Message
  5. Target the Relevant Roles
  6. Engage in Context of Customer Opportunities
  7. Actively Manage the Marketing to Sales Process
  8. Leverage Microsoft Co-Marketing Resources
  9. Publish to Microsoft Marketplaces
  10. Monitor for Competitive Mind Share

The "10 Tips to Partnering with Microsoft" helps Microsoft partners understand how best to engage Microsoft's partnering resources and go-to-market channels.

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AWS Summit 2016

I had the opportunity to attend the AWS Summit in NYC this week. Boasting 10,000 registrations, this was much larger than the last AWS event I attended.

AWS_Summit_NYC

The structure was 1 day of free access to the keynote (by Dr. Werner Vogels, Amazon CTO), product sessions, and the partner expo (there was also a paid pre-day for training bootcamps). Renting out the Jacob Javits Center and providing lunch to so many unpaid attendees represents a significant investment by Amazon. The event targeted technical decision makers with most of the topics focused on new cloud services (see related product announcements). Amazon is hosting similar events in other cities.

Amazon boasts over 1 million active users per month, an $11 billion annual run rate, and 58% year over year growth. There are similarities with Microsoft’s vision including the Digital Transformation customer imperative and shifting to microservices to facilitate cloud scale. I liked Amazon’s messaging on “eliminating waste” (anything that doesn’t benefit customers) vs. Microsoft’s partner emphasis on increasing consumption.

My purpose for attending AWS Summit was to understand AWS messaging and see how partners in both ecosystems (with Amazon and Azure marketplace offerings) view customer opportunity and channel potential. Partners I spoke to (even those with Azure marketplace offerings) believe Amazon is the cloud incumbent and a safer bet, particularly those providing value-add cloud operations services. Amazon is the IaaS leader with designs on PaaS with Microsoft has focused primarily on PaaS infrastructure and catching up on IaaS.

There appears to be a thriving value-add community around AWS as a platform whereas Microsoft hasn’t published as many APIs and/or wants to retain more control over the core cloud services. From my perspective, Microsoft’s ISV priority is on enabling higher level applications to run on top of Azure (vs. growing operations and infrastructure ISVs).

There remain a lot of similarities between the partner motion at Amazon and Microsoft but when it comes to enterprise selling, Microsoft still has an advantage with superior enterprise presence and renewed focus this year on co-selling with partners. In addition, the partner to partner initiatives at AWS are still a long way away from Microsoft’s partner ecosystem maturity. Amazon is missing an opportunity by not enabling these ISV-SI-VAR partner connections: repeatable customer solutions will drive cloud service utilization at scale.

MGX – Microsoft Global Exchange

I had the opportunity to represent a partner at MGX a few weeks ago. MGX is Microsoft’s annual sales and management meeting, where the new fiscal year priorities are communicated to the people on the front lines. Executives rally the troops around a common vision, product groups share their road maps, and top performers are recognized.

MGX17

I attended MGX as a Microsoft employee for many years (1992-2011) and as a partner twice. Partners are in the path of traffic but aren’t allowed into sessions (unless you score a supporting role as a speaker).

MGX isn’t meant to have a large partner presence (is only offered to managed partners). Microsoft’s Worldwide Partner Conference is always the preceding week and is the better venue for partner planning meetings.

My advice to those considering MGX participation in the future is bring lots of giveaways. You will be competing with product groups that come fully stocked. Also, invest in the MGX badge scanner if building up your Microsoft contact database is a priority.

Hopefully Microsoft will implement a passport-like program in the future to encourage partner engagement and lead sharing by field sellers. Microsoft implemented an excellent system for this at Public Sector ISU (Industry Solutions University) last year.

 

Top Takeaways from Microsoft WPC 2016

I recently returned from a familiar 2 week tour: Microsoft’s Worldwide Partner Conference (Microsoft WPC) and Microsoft Global Exchange (MGX). This was my 10th WPC (and 21st MGX)!

WPC remains the most productive event of the year. I was managing 5 company calendars this year so it required some juggling. I didn’t get to the 280+ sessions at WPC onsite, but did review most of the content afterwards.

Worldwide Partner Conference

Consistent Vision

Microsoft is great at attaching product objectives to a customer-ready vision and cascading that down to team objectives and campaigns. As was the case last year, the 3 overarching “ambitions” are:

  • Build the intelligent cloud platform
  • Create more personal computing
  • Reinvent productivity & business processes

4 customer scenarios are affiliated with these pillars:

  • Engage your customers
  • Empower your employees
  • Optimize your operations
  • Transform your Products

Consider aligning your messaging with these themes to better integrate with Microsoft’s marketing engine for the year to come.

Microsoft FY17 Priorities

Microsoft sales and marketing objectives align with the 3 company ambitions. Consider which objectives explicitly align with ISVs:

  • Build the Intelligent Cloud encompasses Azure consumption, Enterprise Mobility Suite, SQL Server, Microsoft hybrid cloud technologies, and co-selling with marketplace ISVs.
  • Create More Personal Computing is less about software partners, dealing with Windows 10 deployment OEM/Surface sales.
  • Reinvent Productivity and Business Processes is focused on Office 365 and Dynamics 365 and relevant if you provide migration or other Office 365 enabling technologies.

ISV Sales Resources

Microsoft’s field operating model (EPG, Public Sector, SMSP, DX, M&O) hasn’t changed but ISV co-selling resources have increased, including ISV-aligned Partner Sales Executives (PSE) and Cloud Solution Architects (CSA). This year, ISVs with a co-sell status will receive explicit leads from field sellers. ISVs must have a VM solution in the Azure Marketplace and have significant Microsoft cloud pull-through to participate.

Microsoft AppSource is a new directory targeting business users. AppSource enables trial of Azure SaaS solutions (not IaaS VMs as in the case of Azure Marketplace). Unlike Azure Marketplace, Office Store, and Windows Store, the ISV actually receives the customer lead information from AppSource trials.

Enterprise Sales Alignment

Microsoft enterprise sales teams are measured on both new cloud contracts and consuming existing customer cloud contracts. Therefore, they are motivated to work with ISVs that help consume Azure resources from enterprise agreements (or drive net new Office 365 usage). High Potential (Hipo) accounts (enterprise customers representing the greatest Azure consumption potential) will have Cloud Solution Architect and Principal Solution Specialist (PSS) resources allocated to them. These are good stakeholders for Azure ISVs to know.

Interestingly, the DX organization (where ISVs are managed within Microsoft) is motivated to drive ISV SaaS solutions (because it is easier to measure their direct Azure consumption). This doesn’t match up with the field sales motivation to use VM IaaS solutions in Azure Marketplace. Note however, there is a manual “dual credit” solution to recognize ISV Azure SaaS solutions that are sold into the enterprise.

US Changes

In the US, 2 more districts (MidAmerica out of St. Louis and Financial Services in New York) have been carved out, making 15 US EPG districts total. This means new ATU and STU teams are spinning up in those areas. Other industry roles are coming back to the US market including manufacturing and retail. An additional 2 Microsoft Technology Center locations are being brought online (San Francisco and Seattle) but will be directed by the product groups, not the sales organization this year.

Where to focus

If you are a committed Microsoft ISV, take the following steps to effectively partner with Microsoft in FY17:

  • Understand Microsoft priorities and sales incentives
  • Map your solutions to their priorities and quantify your value-add (particularly in terms of Azure consumption and/or Office 365 pull-through)
  • Engage the right Microsoft stakeholders with the right message (pithy and targeted)
  • Leverage SI/VAR partners to scale your selling efforts (Microsoft doesn’t want to overwhelm your capacity to execute)

In sum, you’ll want to demonstrate how you’re driving net new Azure, Office 365, or Dynamics 365 adoption to attract meaningful Microsoft co-selling and co-marketing support. Ensure your alliance management efforts are closely aligned with your sales and channel teams so leads are pursued efficiently (and you maintain preferred partner status with Microsoft).

Getting the Most Out of Microsoft WPC

Microsoft’s Worldwide Partner Conference (July 10-14 in Toronto) is a great opportunity to learn about Microsoft’s product and channel strategy as well as advance your own partnering objectives.  Get the most out of all WPC has to offer through the following suggestions.

What do you want to accomplish?

WPC provides a host of sessions as well as a networking tool (WPC Connect) to facilitate side meetings. I personally prioritize side meetings and seeing exhibitors because most of the content is available afterwards.  With that said, develop a plan for maximizing your precious WPC time to include the activities that best match your goals.

Getting the Most Out of Microsoft WPC

Recruit new partners

There are 42 half-hour meeting slots available and a scheduling tool (WPC Connect) to locate and organize meetings with prospective partners. SIs historically represent about 1/3 of WPC Connect participants, followed by VARs and then ISVs. If you wish to recruit new partners at WPC, I recommend the following preparation steps:

  1. Define target partner criteria based on competencies, company size, geography, and company type. Include industry and solution segment keywords if conducting and in-depth search.
  2. Develop your partner pitch including projected partner revenue and the partnership “offer”.
  3. Research potential partners by data mining WPC Connect, LinkedIn and other directories for prospects.
  4. Contact partner stakeholders at target companies in advance of WPC to determine initial interest (WPC Connect invitations are often lost/ignored). Prioritize your WPC meetings for opted-in prospects.
  5. Leverage WPC Connect to identify attendees and secure meeting space.
  6. Document key points and follow-up promptly with qualified partners.

Consider sponsoring or exhibiting at WPC if you sell to partners. Otherwise, focus your partner recruitment efforts on the WPC Connect meetings.

See the Channel Development Best Practices whitepaper for insight on recruiting channel partners.

Kickoff H2 co-marketing with existing partners

Microsoft budgets and priorities reset July 1 so WPC is the perfect time to engage partners in context of those Microsoft directives. Meet with your existing partners at WPC to discuss co-marketing plans and sales-coordination.

  1. Define internal partner co-marketing objectives
  2. Identify existing partners attending WPC
  3. Engage partners at WPC to explore marketing alignment in context of Microsoft FY17 strategy and incentives
  4. Document co-marketing objectives and follow-up

See the Partner Marketing Evidence Model to amplify your marketing impact through partners

Grow the Microsoft alliance relationship

Over 1,000 Microsoft employees attend WPC. You won’t find many Microsoft enterprise sales teams attending WPC so focus your efforts on meeting field partner roles (Partner Business Evangelists, Partner Sales Executives, Partner Account Managers, and Marketing Managers) and product group speakers (meet Microsoft customer teams by exhibiting at MGX).

  1. Create pithy talking points of your FY16 accomplishments (in context of Microsoft priorities) and what you want to achieve with Microsoft in FY17.
  2. Microsoft will have determined FY17 managed partners before WPC, so kick off partner planning at WPC in context of whatever partner status you’ve attained by then.
  3. Research relevant Microsoft attendees and schedule side meetings using WPC Connect
  4. Seek out and participate in side events including roundtables, meetings, meetups, and parties. Your Partner Manager can help identify these opportunities.
  5. Document meaningful conversations and follow-up. Note that Microsoft has internal training and vacations later in July so don’t expect material progress until August/September.

See the 10 Tips for Partnering with Microsoft whitepaper for insight on maximizing your Microsoft alliance.

Get educated on Microsoft product and channel strategy

Use the WPC session scheduler to determine top priority sessions to attend (as well as alternates in case the content or presenter doesn’t meet your expectations). Attend only sessions essential to your business (keynotes and select breakouts). Most content is available afterwards so prioritize onsite meetings and catch up on the content afterwards.

Engage presenters after their talks if they are important to your business. Also look for opportunities to network with Microsoft attendees at side events. There are excellent contacts to be made everywhere at WPC.

See the Top Takeaways from Microsoft WPC 2015 for insight on last year’s WPC themes.

About the WPC Connect tool

WPC Connect is a good tool for identifying relevant attendees and scheduling meetings. Overachievers book 30+ meetings using the WPC Connect tool.

Note that many Microsoft execs do not register in WPC Connect. Request such meetings through your Partner Sales Executive early.

Save visits to the expo for those meetings that fall through. The exhibitor area is nearby and serves as good filler for those inevitable schedule gaps.

After WPC

Promptly follow-up on your meetings (summarizing common interests and next steps).

  1. Determine how you’ll shift your development, sales, and marketing priorities based on what you learned from Microsoft.
  2. Debrief your team afterwards summarizing insights and key themes.
  3. Follow-up with partner and Microsoft contacts to convert WPC discussions into action.

Next Steps

Learn more about partnering with Microsoft via the Competegy ISV Strategy Blog and join the Microsoft ISV LinkedIn Group to discuss cloud, mobile and channel development strategy.

How to Create a Messaging Framework

Messaging frameworks are a useful tool for rationalizing your strategy across product/service lines and bringing clarity to staff who need to sell those solutions. The process of developing a messaging framework is helpful for decoding how solution teams think of the business, identifying how customers express their need for those solutions, and aligning your messaging with those customer needs.

The result enable executives to better understand how your different solutions interrelate and provides a practical tool for salespeople to cross-sell products/services based on interrelated customer needs.

This article defines the elements of a messaging framework and provides a practical example (in Excel). If you don’t have the bandwidth to create a messaging framework yourself, Competegy can gather the data and develop a taxonomy that represents customer needs across your offerings.

MessagingFramework

Solution Categories and Solution Pillars

If you have multiple, distinct solution categories, start by identifying the solution categories (e.g., Collaboration) as well as the underpinning solution pillars (e.g., Office 365 Productivity, Enterprise Content Management). Each solution category make up separate tabs on a spreadsheet which enables you to cross-reference across solution pillars later.

Pithy Summary and Elevator Pitch

Create succinct messaging to represent each solution category. Keep the pithy summary to less than 25 works and the elevator pitch to less than 100 words.

Solution Pillar

Define the solution description, top feature areas, and customer decision makers for each solution pillar. List the customer needs that your solution addresses along with the qualifying questions that would uncover those needs. This step is critical for sales teams to be able to uncover customer opportunities.

Customer Need Statements

Go further by capturing the “statements a customer would make that indicates a need for the solution pillar”. For example, a customer might say “I want to reduce my operating costs for email management”. This would be an indicator that they have a need for Office 365 email services. Capture lots of these customer statements as they will be helpful for the analysis step (below).

Next Milestone

After identifying the decision maker’s needs that your solutions address, you’ll want to direct the prospect toward a logical next step (e.g., an assessment) that can advance their interest. Target something more substantial than a follow-up meeting.

Related Solutions

If you have multiple solution categories, you’ll likely find customers with a need for one area will often have related needs in other solutions you offer (particularly if you are an SI, VAR, or large ISV). Identify those linkages by explicitly cross-referencing related solution pillars in other solution categories.

Customer Statement Analysis

At this point you’ve got the basis for a solid messaging framework but you can generate more insight by taking all the customer need statements and identifying common categories across those needs. For example, “I want to reduce operating costs for email management” can be simplified as “cost reduction”. Identify other solution pillars that also enable cost reduction.

The resulting analysis helps salespeople map the customer pain across all the solutions that you offer to address that pain. A pivot table is useful for navigating these results but you may wish to implement the findings as a visualization tool, web page, or digital cheat sheet.

Practical Example

Following is an Excel spreadsheet that you can use as the basis for your own messaging framework. Each solution category (e.g., productivity, cloud solutions, etc.) should be profiled as a unique tab with solution pillars represented as columns on each sheet (the sample is in context of simple Competegy services). After building out your tabs (solution categories), add a master table that aggregates all your customer needs to get the big picture of how your solution pillars are interrelated from a customer perspective.


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10 Tips to Winning a Microsoft Partner Award

It is that time of year again: the countdown to Microsoft WPC where new strategy is shared with the channel and top performing partners are recognized. The Microsoft Partner award nomination tool is now available and submissions are accepted until April 7, 2016.

wpc2016

Receiving an award from Microsoft can serve as a valuable marketing tool: awards help attract new customer prospects, provide sales credibility, trigger new partnerships, and facilitate Microsoft field sales engagement.

Microsoft has the largest software partner ecosystem.  They receive thousands of submissions for the partner awards, with winners recognized at their annual Worldwide Partner Conference in July. That’s a lot of competition!

As a former partner award judge (and enabler of 4 Partner of the Year award wins), I offer the following helpful tips to improve your chances of winning:

  1. Understand the process
  2. Meet the criteria
  3. Follow the rules
  4. Answer the questions concisely
  5. Quantify your results
  6. Tell customer stories
  7. Write like a journalist
  8. Take Microsoft’s perspective
  9. Don’t wait until the last minute
  10. Leverage the award writing process to invigorate your Microsoft partner relationship.
  11. BONUS TIP: Pursue subsidiary awards

I’ve provided a detailed explanation of these steps as a free download.

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Partner Strategy Framework

Cloud and software providers have the enviable opportunity to become a platform on which others build. Despite this potential, most software companies think narrowly about scaling through partners, focusing on resellers and strategic alliances. Platform-minded companies take a broader approach toward partners, developing a community of partners to drive long-term growth.

It takes significant resources and focused execution to design and manage a successful platform partner ecosystem. This whitepaper provides a framework for companies to maximize the value of upstream cloud and platform vendors, strategic alliances, program-managed partners, and the developer community. The objective is to grow revenue by establishing a loyal partner ecosystem (such as those enjoyed by Microsoft, Cisco, Oracle, and others)..

Partner Strategy Framework

 


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Channel Development Best Practices

The purpose of channel development is to grow sales through partners. This can be to expand sales in current markets or break into new territories or segments. In this paper, we’ll share best practices in channel partner strategy, the process for recruiting new partners, as well as tips for activating existing partners.

Channel Strategy 101


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Channel Strategy 101

Recruiting channel partners helps reach new markets and expand sales but what kinds of partners are the right fit for you as an enterprise software provider?

Strategic Alliances Assessment

VARs

Your first reaction might to be to seek out an IT reseller. These are typically large businesses and you’ll be fighting for attention versus established vendors with a larger “share of wallet” and therefore garner most of the VAR attention. It is possible to break in and establish a meaningful partnership but your solution needs to be a clear, financially meaningful complement to their existing solutions to avoid becoming “catalog fodder”.

ISVs

Other software vendors may represent attractive partnership if you add value to their offering. ISVs (particularly cloud, ERP, and CRM vendors) are familiar with partnership and define partner programs designed to be as “self-serve” as possible. If you are comfortable providing the required product integration and are okay not having a “strategic” partner relationship out of the gate, this can be a worthwhile effort. Co-selling is typically through vendor marketplaces and co-marketing consists of directory listings and co-branded materials (the software vendor wants you to carry their product messaging with your customer message).

SIs

IT Systems Integrators (SIs) are typically familiar with partnering with software providers and are increasingly moving toward providing their own repeatable, cloud hosted solutions based on project IP and ISV solutions. Shifting from 100% integrator to cloud Managed Service Providers affords a higher margin and recurring revenues.
To be considered for partnership, your solution must align with their functional expertise and services offerings. They won’t change their business to accommodate a shiny new technology.
The partnering process is more ad-hoc with SIs. They have less formalized partner programs and partner agreements are negotiated one-off. Co-selling with SIs requires more account management and support, particularly to get the first couple clients. Co-marketing takes the form of traditional outbound marketing campaigns.

Management Consultants and Agencies

Management Consultants (plus agencies, accountants, and other professional services firms) are typically uncomfortable with reselling software due to their need to appear objective and unbiased to clients. Your software solution must be relevant to their core consulting services to break through that objection. Ideally your solution is technology they can leverage during client engagements and then hand off as a deliverable (enabling the consultant to deliver the ISV solution in context of the engagement). Focus initial co-selling on testing interest with existing clients on a limited scale and keep your joint marketing expectations low.

Conclusions

The complexity (required customization) and industry-specific nature (general purpose vs. specialized use case) of your product will determine which of the above partner types will be most attractive. If you are breaking into a new territory, I recommend starting with small to medium-sized firms (who are more nimble). Create solid channel strategy and a polished partner value proposition before beginning your recruiting process. Approach the effort in phases so you can learn and adjust based on the receptivity of each target partner community.

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