I took a page from Brad Feld (Venture Capitalist) and decided to work offsite in another city for a couple weeks this month. I’ve never been to Charleston so my wife (also a consultant) and I packed up the car along with our little terrier (not a consultant) and ventured south from Connecticut to the land of excellent food, scenic views, and unique history.
I approached it as kind of “Microsoft think week” with daily “offsite topics”, meeting with local high tech contacts, and studying books by Tim Ferris. I managed to stay on top of client commitments while enjoying some strategic thinking.
The SaaS Threat to Systems Integrators
Microsoft has encouraged its SI community to embrace cloud products, citing higher profitability and company valuations generated by including “repeatable IP” alongside SI service offerings. This intuitively makes sense: smoothing your revenue volatility makes for a more predictable and therefore more valuable business. I previously translated the Microsoft message simply as “sell more Office 365”.
I met with the former head of Microsoft Consulting Services while in Charleston. He asked about several SIs that I happened to have reached out to recently as part of my ISV-SI matchmaking service. He was surprised they were still thriving given the shift to Software as a Service. When SaaS solutions are adopted there is configuration, but little to no customization. The customer trend toward SaaS solutions means SIs have less deployment work to do and have to find new business areas to drive growth. Cloud computing will disrupt systems integration consulting firms over the next 5-10 years because customers will require less customization and deployment.
I typically engage SIs (on behalf of ISVs), making the case for expanding their services into an adjacent practice area. I reference the financial benefits of reselling software but commissions are typically small relative to services revenue. The impact of SaaS provides a new lens to the SI recruitment challenge and ISVs should augment their SI partnering proposition accordingly.
Microsoft Inspire 2018 Update
The schedule is published for Inspire 2018, Microsoft’s annual partner conference in Las Vegas (July 15-19). The price for Inspire goes up $300 on March 1, so register now if you plan on attending. This year Microsoft’s internal sales kickoff event (Microsoft Ready) will overlap the partner conference, affording an opportunity to engage Microsoft teams where previously you had to sponsor and travel to Microsoft Ready separately
Stay tuned for the announcement of the Microsoft Partner Award nominations later this month. The final submissions will be due early April.