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www.rcpmag.com • October2006
DRIVING SUCCESS IN NER COMMUNITY
Honored as Goodbye GTMs; BEST START-UP Hello Customer PUBLICATION Jesse H. Neal Campaigns 30 National Business Journalism Awards Make Your Company 2006 Memorable 36 Negotiating a Better Deal 42 That’sClose Enough Keeping a safe distance from Microsoft24 Project2 8/8/06 11:11 AM Page 1
An advantage to get excited about. Announcing the new Intel® Channel Partner Program Project2 8/8/06 11:13 AM Page 1
One of the world’s best channel programs just If you want to strengthen and grow your business, got a little better. you’ve come to the right place. We want to help. If you build, resell, install or recommend IT solutions based on Intel® • The Intel® Platform Branding Advantage technology, now you have more advantages than ever in the newly 6KRZ\RXUFXVWRPHUV\RXKDYH,QWHO,QVLGHZLWKORJRODEHOV redesigned Intel® Channel Partner Program. From technical resources designed to generate additional business while giving your and warranty support to marketing kits and hands-on training FXVWRPHUVWKHIHDWXUHVDQGSHUIRUPDQFHEHQHÀWVWKH\ORRNIRU RSSRUWXQLWLHV JHWWKHEHQHÀWVWRKHOS\RXVXFFHHGDVD6\VWHP Builder or Technology Provider in this award-winning program. • Get the Training You Need From face-to-face training and events to online knowledge builder • Three straight years: Best Overall Company, VARBusiness Annual courses, Intel offers a robust suite of training to help you compete Report Card and succeed. • Three straight years: Best Channel Program at IT ChannelVision • Go to Market Faster • Three straight years: Best Channel Program at Tech Builder XChange Make the most of your marketing campaigns. Intel channel members receive special demand-creation tools—including retail and advertising Two Membership Tracks, each with the right mix of EHQHÀWVWRPDWFKWKHZD\\RXVHOODQGVHUYLFHVROXWLRQV assets, end-user messaging guides, product briefs and sales collateral. Have a retail storefront? Build a distinctive presence with our member- based on Intel® technology. only merchandise and sales tools. • The System Builder track provides resources for members who • Warranty Replacement Program build white box systems—custom desktops, notebooks and servers— containing Intel boxed products purchased from an authorized Fast. Easy. Consistent. Intel’s Channel Warranty Replacement Program distributor. If technical support and warranty are critical to how is available to all members of the Intel Channel Partner Program.¹ \RXGREXVLQHVVWKH6\VWHP%XLOGHUWUDFNLVULJKWIRU\RX And top tier members are eligible for Advanced Warranty Replacement. • The Technology Provider Track is designed for members who We’ll ship replacement products overnight—without waiting for the buy desktop, server and mobile platforms from a supplier. Technology defective part to be returned.² Providers resell complete branded or third-party systems, provide consulting or support services, but do not purchase boxed Intel products. If you are not building your own hardware platforms, the Technology Provider track is right for you. The Intel® Channel Partner Program. Membership is free. See what’s waiting for you.
Visit www.intel.com/go/IntelChannelPrograms today and learn how you can get the advantage.
¹ Warranty replacement is valid only on qualifying purchases from Intel Authorized Distributors. Replacement within 30 days of purchase should be made through your Intel Authorized Distributor. Intel Warranty Replacement begins 30 days after purchase date. If your Intel Authorized Distributor is not available, contact Intel directly. ² Restrictions apply. Premier members can receive a maximum of ten (10) units at any given time. Associate members can receive a maximum of six (6) units at any given time. Intel, the Intel logo, Intel. Leap ahead., and the Intel. Leap ahead. logo are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries. * Other names and brands may be claimed as the property of others. Copyright © 2006. Intel Corporation. All rights reserved. Project3 5/9/06 9:37 AM Page 1
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Technology-driven sales and use tax solutions from CCH will streamline all areas of tax compliance for your company. A wide array of programs such as CertiTAX, ZIPsales Returns, and ZIPsales Database integrate seamlessly with Microsoft® Dynamics AX, GP, SL, and NAV to save you time and increase productivity. So whether you need accurate tax rates and taxability decisions for over 8,000 jurisdictions in the United States or help populating and filing sales and use tax returns, turn to CCH — the industry leader with over 90 years in the business. For more information, call 1-800-630-22181-877-CCH-8368 The Professional’s First Choice or visit SalesTax.com/MSDSalesTax.com/Integration. 1006rcp_TOC_3.v8 9/11/06 3:34 PM Page 3 Contents OCTOBER 2006 • VOLUME 1• NUMBER 12
FEATURES DEPARTMENTS 6 Partner Points 24 36 “Dealing with the Microsoft Haters” dialogue continues; more on Best Buy for Business 9 Channel Report 30 A year after Katrina, Gulf Coast partners redouble their efforts to help their hometowns...... 9 LIFESTYLE: Sun, Sand, Surf and Salt Air ...... 10 24 Keeping a Safe Distance from Microsoft CHANNEL CALL: CA Seeks Partners for Portal ...... 12 ISVs need to stay close to Microsoft—but not too close. MICROSOFT PARTNER CALENDAR ...... 12 Here’s how to be an effective partner without giving away too much. ANATOMY OF THE DEAL: Microsoft-Citrix ...... 14 PARTNER SPOTLIGHT: ScriptLogic 30 On the Campaign Trail Born from VAR roots, the Windows admin tool Microsoft has replaced its ‘go-to-markets’ with customer campaigns. vendor treats its customers and partners like gold . . . 17 What does the switch mean for partners? 47 Solution Spotlight 36 Branding 101 Microsoft Commerce Server 2007 can put a company Think you can afford to ride on the coattails of the Microsoft name? online in a single day, but using the solution effectively Think again. You need to promote your own brand, too. requires a solid knowledge base.
42 Best Practices: COLUMNS
Learning to Love the Deal PARTNER ADVOCATE: Scott Bekker Top-notch negotiators aren’t born with that talent; they develop it by MSPP Web Site Gets a Facelift...... 4 practice. Here’s how to sharpen your own skills before you ever sit down at the table. PARTNER VIEW: Michael Donnelly Protect and Optimize Exchange Environments . . . . . 22
MARKETING MICROSOFT: Mac McIntosh RCPmag.com Build Your Business for Less Through Marketing . . . . 52 SELLING MICROSOFT: Ken Thoreson It’s Blog Time FindIT Codes The 10 Traits Buyers Seek in Sales Superstars ...... 54 If you’re looking for the latest You’ll see FindIT codes DIRECTIONS: Paul DeGroot technology and business news embedded throughout Partners: The New Distribution Vehicle ...... 56 plus what it means for Microsoft Redmond Channel partners, then head over to Partner. Simply type Senior Editor Lee Pender RCPmag.com/blogs. On our site these into the FindIT code RCPmag.com/blogs/pender you’ll find Redmond Channel box on any RCPmag.com Partner editors Scott Bekker, Lee Pender and others page and you’ll jump directly to the desired blogging about the biggest events of the day, plus information. (Note that all sharing their take on what it means for you. Stop FindIT codes are one by regularly to read their rants—you can even share word, and they are not your own! FindIT code: RCPBlogs case-sensitive.) 10
COVER PHOTO BY CORBIS 1006rcp_Advocate_4.v7 9/11/06 10:55 AM Page 4
PartnerAdvocate Redmond ChannelPartner
RCPmag.com October 2006 ✚ Volume 1 ✚ Number 12
Editorin Chief Scott Bekker [email protected] Executive Editor Anne Stuart [email protected] SeniorEditor Lee Pender MSPP Web Site Gets [email protected] Managing Editor Wendy Gonchar [email protected] a Facelift Solution SpotlightEditor Lafe Low [email protected] Editors, RCPmag.com Becky Nagel [email protected] By Scott Bekker has deep content beneath it. Michael Domingo Since signing up as a Registered Member of Microsoft’s promotional materials state [email protected] ArtDirector Scott Shultz the Microsoft Partner Program nearly a year that the software giant aims to get Microsoft [email protected] ago, I’ve never been impressed with the partners to use the site weekly. Anyone who SeniorGraphicDesigner Alan Tao official MSPP Web site. It’s one of those sites operates a Web site would envy the potential [email protected] that leaves you feeling that you’re missing traffic of 380,000 unique visitors (the cur- resources you’re entitled to just because it’s rent number of partners signed up for Group Publisher Henry Allain so poorly organized. Microsoft’s programs at all levels) stopping [email protected] I ran into my latest problem with the partner by on a weekly basis. If you haven’t used the Editorial Director Doug Barney Ssite in late July while testing Internet Explorer site in awhile, it’s worth a look. [email protected] Group Associate Publisher Matt N. Morollo 7.0 Beta 2. I tried to follow a link to a new Microsoft says the new design is based on [email protected] OEM System Builder blog. Rather than taking partner feedback and Web best practices. It’s DirectorofMarketing Michele Imgrund [email protected] me to that page, the site flashed a message certainly a best practice to have a well- SeniorWeb Developer Rita Zurcher warning that I was using an unsupported organized site. A high-quality Web site is an [email protected] Marketing Programs Videssa Djucich browser: “Please use the most recent non- indication of the health and quality of a pro- Manager [email protected] beta version of [IE] to access this page.” gram, company or government agency. But Editor, ENTmag.com Scott Bekker [email protected] I was steamed, and I blogged as much on it’s only an indication, and Microsoft’s Partner Editor, MCPmag.com Michael Domingo RCPmag.com. I’ve been a big fan of IE 7, and Program site previously masked a good pro- [email protected] Editor, Redmondmag.com Becky Nagel for a Microsoft site not to support its own gram. I’m glad to see the site catching up CertCities.com [email protected] browser seemed a bit much. A little more with the quality of the program, and I’m Associate Editor, Web Gladys Rama [email protected] than a month later, the reason Microsoft looking forward to Microsoft’s continued hadn’t bothered to re-engineer the old part- work on its pages. President& CEO Neal Vitale ner site for the IE 7 betas became clear: An The changes look good to me as an occa- [email protected] overhaul was in the works and the new site is sional user who doesn’t rely on the site for CFO Richard Vitale [email protected] now live. (I still contend that’s only an sales, marketing and other types of support. Executive Vice President Michael J. Valenti excuse for anyone but Microsoft, but as Jesse I’d really like to hear whether the new site [email protected] DirectorofCirculation and Abraham Langer Jackson once noted on “Saturday Night helps you work more effectively. Let me Data Services [email protected] Live,” “the question is moot.”) know at [email protected]. DirectorofWeb Operations Marlin Mowatt From what I can see, the new home page is [email protected] Director, PrintProduction Mary Ann Paniccia a 1,000 percent improvement. I remember If you’re wondering why Spock is on the [email protected] the entry page in the old site that looked like cover this issue, it’s thanks to you. A lifestyle Controller Janice Ryan [email protected] a dead end, with little content aside from the question in our recent reader survey (Channel DirectorofFinance Paul Weinberger partners’ own registration information. The Report, August 2006) showed that more of [email protected] Chairman ofthe Board Jeffrey S. Klein new home page is dominated by links to cur- you like “Star Trek” than any other TV show. [email protected] rent promotions, programs and resources. The image fit the theme of our cover article, Tabs along the top (IE 7-inspired, per- with the wary Spock representing partners Redmond Channel Partner The opinions expressed within the articles and other contents herein haps?) provide navigation to the home page warning an unseen alien, in this case do not necessarily express those of the publisher. and to sections dedicated to program mem- Microsoft, to stay a safe distance away until bership, products and solutions, sales and they get to know each other better. (Of course, marketing, licensing, training and events, it usually ended up being Kirk getting to and support and security. Each of these tabs know the aliens better, but I digress ...) • BPA Worldwide Membership Applied forMarch 2006
4 REDMOND CHANNEL PARTNER OCTOBER 2006 RCPmag.com Project1 9/7/06 11:59 AM Page 1 1006rcp_PartnerPoints_6.v5 9/11/06 11:02 AM Page 6 PartnerPoints A SAMPLING OF LETTERS
Dealing with Microsoft Haters
Editor’s Note: BestBuy Revisited This topic has been covered about all the vari- Judging by page views on ous ways it can be [most recently by Redmond Channel Parter in June] but I thought this RCPmag.com, Anne Stuart’s might be an interesting follow up. Best Buy is “Dealing with Microsoft of course a retail chain and makes its money from sales. I think it’s great when a shop that Haters,” a part of our July has techs working on PCs and handing out advice on a daily basis gets some certification special report on the Microsoft behind them. But do we really want MCPs and MCSEs whose primary function is to sell Brand, is our most widely read something to a customer every time they talk story yet. Here’s a sampling to them? One of the requirements in their hir- ing ad [found on CareerBuilder.com] is of readers’ comments from “Strive to close the sale during all customer interactions.” That shows that the company’s the site. concern is not to help “clients” and to solve technical problems but to sell, sell, sell. With power comes responsibility, and Microsoft for years was responding to customers who James Barrett wanted more powerful products, not more secure products … That’s an industry problem Winston-Salem, N.C. (maybe one of co-dependency) not simply a Microsoft problem. J.B. Fields Takoma Park, Md.
[Anyone] who argues for low margins and total quality does not know [anything] about having Postscript to “sell” something to survive. Marcelo In the March issue, we shone our solution spotlight on Brazil WindowsSmall BusinessServer 2003 R2, which at the time wasslated for release in a few months. The prod- Industry has already decided that open standards are the way forward. It’s how Microsoft uct hashad some upsand downssince then. reacts to this that will decide its future. The question isn’t whether Microsoft should stop this It was released to OEMs in July, but quality control trend; it can’t. It’s how it responds to this necessary and fair requirement from industry in a problems caused Microsoft to recall the server way that keeps the company’s margins as high as they can be maintained. G. Morgan package. The recalled version contained non-final versions of some core components. Microsoft re-released SBS 2003 R2 to OEMs at the I have spoken with Linux zealots who are eager to tell me that Microsoft is broken, bad, etc. My end ofAugust, with general availabilityfrom major question to them is, “If someone walked into your office with $10,000 and said, ‘I want a OEMs like Dell and HPfollowing in September. At Microsoft solution,’ are you going to argue with them or send them out the door? Ralph B. press time, it was too early to say how the product is Washington being received. Meanwhile, the company launched a new partner Miss the original? Check out the article in the online July archive. FindIT code: MSHaters program for SBS 2003 R2, called “Assess & Win.” Partners who conduct and submit five customer business assessments using the Technology SOUND Got anytalesofyour own you’d like to share? Thoughtsabout storiesin thisissue? Assessment Toolkit are eligible for a free, resaleable Send your rantsand ravesto [email protected]. Please include your name, title, copy ofSBS 2003 R2 Standard Edition. company, cityand state. OFF! FindIT Code: SBSwin
6 REDMOND CHANNEL PARTNER OCTOBER 2006 RCPmag.com Project23 9/5/06 5:11 PM Page 1
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GETTY IMAGES eobeterefrstohelptheirhometowns. redouble theirefforts Coast partners While still recovering disaster, Gulf from last year’s Storm the After selves anymore,” says BillBreslin,U.S. IAMCP. presidentofthe organization, we not just aboutbusinessandour- candomore.It’s disaster, regularagendas. work now oftheir make part charitable givingimmediately generousIAMCP chapters, the intheir after to customers return to business.Andindividual helptheir services disaster. by the freeorreduced-cost hurt offered Somepartners for customers jumpstart providedtered afinancial by partners (IAMCP). Partners Certified AssociationofMicrosoft International work by both individualcompanies ofthe andlocalchapters new emphasis change isthe oncharitable mostsignificant haps the “Katrina opened our eyes a bit to the fact that, asabusiness openedoureyes factthat, abitto the “Katrina aid initiative andadminis- fundedby Microsoft A post-Katrina UPDATE others haveothers Yet found new opportunities. per- New Orleans still-struggling area,while the have left Somepartners in somecases,shrunk. Microsoft partner community. partner Microsoft region’s for the The sameholdstrue marks. storm’s the Gulf Coaststillbears the Katrina, Hurricane year after ne Partners’ customer listshave and, Partners’ shifted ChannelReport TRENDS Getdailyupdates + ISSUES By Fred Bayles rmornwbosat from ournewblogs + ANALYSIS ners and customers instorm-ravagedners in areas.IAMCP chapters smallerstaffs. to rebuildwith new needsofcustomers struggling to meet to the on-sitefrom trainingprograms consultingservices company arejustsix.Meanwhile, the itsemphasisthere hasshifted Louisiana Superdome, employed Today, storm. 20peoplebefore the street locatedMomentum’s New fromthe acrossthe Orleans office, onherown sameeffects company,the Partner. aGoldCertified witnessed Rouge-based Momentumtrainingandconsultingfirm, ormoved,”didn’t survive she says. smallermom-and-popshopsinapplicationdevelopment of the of New Orleans companies haven’t to returned business.“Some 40percent indicatingthat statistics number—a factinlinewith Today, had40members. group cane, the ishalfthat membership IAMCP. Louisianachapter ofthe was the storm by the organizationshard $200billionindamages. hit Amongthe than 2005, ultimately 1,200 killingmorethan peopleandcausingmore The Microsoft communityprovided twoThe Microsoft typesofaidto part- vicepresidentofbusinessdevelopment Baton forArmanini, the hurri- before the Chapter says that, President JamieArmanini GulfCoastonAug. 29, cameashoreinthe Katrina Hurricane RCPmag.com RCPmag.com . Also available via RSS. COE 2006 OCTOBER EDITED BY ANNESTUART EDITED BY EMN HNE PARTNER REDMOND CHANNEL 9 1006rcp_CR_9-15.v7 9/11/06 11:33 AM Page 10
ChannelReport
Texas and elsewhere donated $25,000 to the Louisiana chap- ter, funding everything from temporary space rental to emer- gency food and water supplies. In addition, a Microsoft program offering $400,000 worth of assistance, discounts and replacement software helped get businesses rolling again. As part of that effort, Microsoft partners nominated affected customers for indi- vidual $4,000 grants. Individual partners offered assistance as well. One example is AdvancedMD Software Inc., a Salt Lake City-based Certified Partner that helped customers such as the Hancock Women’s Center in Bay St. Louis, Miss. After that obstetrical-gynecological clinic lost nearly all its medical and billing records to flooding, AdvancedMD offered its SQL Server-based hosting services, deferring set-up costs for six months and waiving subscription fees for the same period. LIFESTYLE “Within a few weeks of the disaster, the clinic got power and set up shop with our product,” says Lane Peterson, AdvancedMD’s vice president of marketing. Sun, Sand, Such immediate aid programs have ended as the region struggles to return to normal. Surf and Salt Air But an enduring result is partners’ continuing fundraising by Anne Stuart for local charities. For instance, the IAMCP’s Houston chapter donated he summerof2006 is now What’s YourPreferred Vacation? $12,000 to relief efforts in the months following Katrina. justa pleasant memory Ocean 27%* Since then, the 75-member group’s new community-service T and chances are you’re already planning—oratleast committee has collected toys for local kids and organized a Mountains 18% dreaming about—yournext charity golf tournament to raise money for a shelter for abused Resort 15% greatgetaway. Ifyou’re like Active-Outdoor Trip 10% and neglected children. • otherRedmond Channel Partner readers, you probably Cruise 8% prefer the seashore to justabout Lake 8% anyplace else on earth. Other 8% In a recentsurvey ofabout Guided Tour 1% 500 RCP readers, we threw in *PERCENTAGES ROUNDED TO NEAREST WHOLE NUMBER; By the Numbers: a few lifestyle questions just 5 PERCENT OF RESPONDENTS PROVIDED NO ANSWER forfun—including one asking participants to name theirfavorite vacation spots. MSPP Growth “Ocean” was by farthe mostcommon response, garnering more The Microsoft Partner Program hasgrown dramatically than a quarterofthe votes. “Mountains” came in a distantsecond. in the past year, according to these figuresrecently “Resort” ranked third, trailed by otheroptions ranging from cruises to active-outdoortrips, such as biking and hiking. released byMicrosoft: A few respondents used theirown words to describe their PartnerLevel July 2005 July 2006 Change fantasy getaways. One yearned for“urban adventure,” anotherfor “barefootsailing” and a third for“camping and getting away from Gold Certified 4,600 8,000 + 74% technology.” One readerlonged simply to “relaxathome and let Certified 28,000 22,000 - 21% everyone else go away.” And one described a particularly unusual Registered Member 266,000 350,000 + 32% ideal vacation venue: “a library with an attached pizzeria.” Total 298,600 380,000 + 27% But, apparently, some respondents didn’teven dare to dream about SOURCE: MICROSOFT leisure time, as evidenced by this wistful comment: “I haven’thad a real vacation in more than 10 years.”
hz BY CHAN ILLUSTRATION LILLIAN
10 REDMOND CHANNEL PARTNER OCTOBER 2006 RCPmag.com Project15 6/9/06 3:51 PM Page 1 1006rcp_CR_9-15.v7 9/11/06 11:33 AM Page 12
ChannelReport
CHANNEL CALL OCTOBER Following are listings for upcoming events that CA Seeks to SupportTrusted may be of interest to Microsoft channel partners.
Advisors with Portal By ScottBekker TS2 Events Quarterly MicrosoftDynamics Microsoft TS2 events PartnerBriefings Road Show CA Inc. is building a network offer partnersnet- Microsoft briefings Microsoft Dynamics working opportuni- are scheduled for the marketing and product of partners who can take advantage. ties, technology following datesand specialistswill host a demonstrationsand locations: nationwide seriesof of a customized Web portal to access CA software and tools. updateson new half-dayeventsfor The program is designed to help onsite technicians protect and products, programs Microsoft partnersthis and incentives. 11 fall. For a list ofdates optimize PCs in homes and small to midsize businesses. Half-dayTS2 sessions St. Louis, Mo. and locations, visit are scheduled for www.microsoft.com/ The Islandia, N.Y.-based soft- ment for the last two years. The (Event ID: 1032306278) the following dates eventsand browse ware giant kicked off its Onsite PC platform, which technicians access and locations: the “In-Person Events” Protection Program in September from the customer’s computer, 12 listings. after running the offering in consists of customized e-commerce Overland Park, Kan. (Event ID: 1032306280) beta for several months with 300 portals for transactions, payment Events listed are free, companies, including computer histories and report-generation. 3 but pre-registration is service franchisers Geeks on Call The site includes tools for diag- Cedar Rapids, Iowa required. Dates, times (Event ID: 1032307419) 18 of Norfolk, Va., and Computer nosing virus and spyware vulner- DesMoines, Iowa and agendas are Eugene, Oregon (Event ID: 1032306274) subject to change. Troubleshooters, which has its ability, privacy holes and (Event ID: 1032307418) For more information U.S. headquarters in Decatur, Ga. performance issues. Any prob- Grand Rapids, Mich. and to register, visit According to George Kafkar- lems a technician discovers can (Event ID: 1032306520) www.microsoft.com/ San Antonio, Texas 19 kou, CA’s senior vice president of immediately be addressed by Omaha, Neb. events, where you (Event ID: 1032307417) (Event ID: 1032306273) can search by event worldwide commercial sales and downloading CA software directly ID code or browse strategy, the program is designed to the customer’s computer. listings by date. for partner companies of any size. Membership in the CA program 5 Redding, Calif. 25 CA, itself a Gold Certified Partner, brings round-the-clock product Minneapolis (Event ID: 1032307425) (Event ID: 1032306281) is also closely involved in the technical support, discounts on CA Davenport, Iowa Microsoft Small Business consumer and SMB solutions for (Event ID: 1032307426) Ann Arbor, Mich. Specialist program; Kafkarkou business owners, a line of credit for Tampa, Fla. (Event ID: 1032307423) (Event ID: 1032307458) confirms that the company is partner business owners, cash 26 CorpusChristi, Texas Rapid City, S.D. Topeka, Kan. seeking Microsoft partners for the incentives for technicians and (Event ID: 1032307424) (Event ID: 1032307459) (Event ID: 1032307476) Onsite PC Protection Program. rebates to end users for switching Charleston, W. Va. Swansea, Mass. Although end-user customer security software providers. A wel- (Event ID: 1032307460) (Event ID: 1032307472) 17 Greenville, S.C. satisfaction is important, CA real- come kit for new partner members Irvine, Calif. (Event ID: 1032307473) ly developed the new program also includes free software valued (Event ID: 1032307451) 24 El Paso, Texas with the needs of partner business by CA at $1,500. Boca Raton, Fla. Albany, N.Y. (Event ID: 1032307474) (Event ID: 1032307452) (Event ID: 1032299878) owners and their technicians in A one-time, $100 application Tacoma, Wash. Billings, Mont. Wichita, Kan. (Event ID: 1032307475) mind, Kafkarkou says. “We hap- fee is refunded upon the members’ (Event ID: 1032307453) (Event ID: 1032307464) pen to believe that the market first customer deal, Kafkarkou Roanoke, Va. Greensboro, N.C. (Event ID: 1032307455) revolves around the influencer: says. There is no annual fee. (Event ID: 1032307465) 31 Wawautosa, Wis. Midland, Texas Livonia, Mich. the onsite technician. We do not Fulfillment and credit checks are (Event ID: 1032307454) (Event ID: 1032307467) (Event ID: 1032307478) believe the market revolves handled by CA’s e-commerce dis- Spokane, Wash. Cheyenne, Wyo. around a vendor like CA.” tributor, Digital River of Eden (Event ID: 1032307466) (Event ID: 1032307479) CA’s core investment is in a Web- Prairie, Minn. For more details, visit 19 Pensacola, Fla. Burbank, Calif. (Event ID: 1032307477) accessible platform, in develop- http://ca.com/onsite. • (Event ID: 1032307457) ILLUSTRATION BYILLUSTRATION JEREMY ZSCHAU
12 REDMOND CHANNEL PARTNER OCTOBER 2006 RCPmag.com Project2 3/30/06 4:14 PM Page 1 1006rcp_CR_9-15.v7 9/13/063:54PMPage14 C 14 Expand Aug.23,TheirPartnership, 2006 CitrixSystems Microsoftand Application Networking Group atCitrix. vice president ofthe saysWesWasson, remote offices, ing theneed for localITstaffsat therebyminimiz- from companyheadquarters, managebranch-office WANs easilydeployand will enablecompaniesto second halfof2007, WANScaler. workoptimization, newproductServer, for net- anduse Citrix’s Acceleration(ISA) Internet Securityand Server operatingsystem andMicrosoft base theappliance ontheMicrosoft Windows will companies. The partners oflarge offices for branch branded connectivityappliance tionship todevelop andmarket aCitrix- extendingMicrosoft theirrela- andCitrixare The Deal Alliance Partner ecosystem. in itsCitrixGlobal than 1,800fiscal partners 2005 andcountsmore with Microsoft. 2000 Server Terminal Servicesproducts Terminal Server Edition andtheWindows WindowsNT4.0, jointlydeveloped winner in2003 and2005. The company Year award ISVofthe Microsoft’sGlobal long-time Microsoft andwas partner aGoldCertified Partner,appliancesand isa avendor ofnetworking CitrixSystemsInc., The Partner series. occasional community. Partofan within theMicrosoftpartner An insidelookatprominentdeals EMN HNE PARTNER REDMOND CHANNEL The newappliance, scheduled toshipinthe million in uprevenuesof$909 Citrixracked ANATOMY OFTHEDEAL By Lee Pender COE 2006 OCTOBER RCPmag.com the branch office inenterprise networking. influence will likelyweaken.” will notbethedefault choic BecauseCiscoapplication deliverycontrollers. (branch office boxes) and—toalesserdegree— BOBs WAN optimizationcontrollers(WOCs), nership will change theselling dynamicfor believesthispart- Gartner workarchitectures… a criticalbattleground for applicationandnet- branch officesoftware as market, andviewsthe intheenterprise cant threat toitsdominance site: Gartner Inc.’sWeb research firm an August 23 blogentryon prise networking market, according to intheenter- SystemsInc.’spresence counter tonetworking giantCisco could beaneffective Thisdeal The Market For hispart, Wasson citesthe importance of importance Wasson citesthe For hispart, asignifi- “Microsoft clearlyconsidersCisco e, we believe its ChannelReport in theWANoptimization space. and leadership” advantage ofCitrix’s“expertise Kasiviswanathan Microsoft cantake saysthat BenefitHow MicrosoftWill infrastructure. excellent branch-office well as as customers “market presence andcredibility” among Microsoft willWasson bringCitrixadded says Benefit How CitrixWill to manage.’” inawaythat’seasier problem butdoesthat broader have asolutionthat notonlysolvesa problem, andnowI solving a fraction ofthe customers],‘You’re say[to opportunityto networks. He addsthat itrepresents“an networks. Headdsthat large organizationsaccessinformation from abranch,” hesays. “You’re seeing more andmore customersrecognizing how their user base isgetting skewed to how theiruserbase isgetting these remote locations.” How Partners Will Benefit Bala Kasiviswanathan, group product manager for WindowsServer Branch and manager for WindowsServer Storage Solutionsat Microsoft, sayspart- Storage Solutionsat nerswill be keyfor thedeployment and bekeyfor nerswill monitoring ofthe performance ofthe monitoring ofthe new appliance. ofdelivery, deploymentofdelivery, and feedback,” he says. have acomprehensive appliance for remote optimizationofbranch-office “More than 55 percent ofemployeesin Teprnr are abigpiece interms partners “The Wasson pointsout that partnerswill Wasson pointsout
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ChannelReport
PARTNER SPOTLIGHT Do Unto Others Born from VAR roots, the Windows admin tool vendor ScriptLogic treats its partners and customers like gold. By Paul Desmond
As a trained physical therapist, Tim Pierson knows something about how to fix physical pain. But after he became IT director at Apple Physical Therapy Inc. in Puyallup, Wash., he found himself dealing with an entirely different kind of pain, the kind that comes with trying to manage 180 desktops and 300 end users at Amore than 20 locations—by yourself. A local service provider, Northwest at any given time—an important considera- who, through a series of promotions, landed in Computer Support Inc. of Tukwila, Wash., tion in an environment where desktops are the headquarters office. As the company grew helped ease Pierson’s pain by implementing routinely shared. and needed more technology to keep it run- several products from Boca Raton, Fla.- The story of Apple Physical Therapy and ning smoothly, he offered suggestions on how based ScriptLogic Corp., most notably its Northwest Computer Support is typical of to incorporate new technology into normal Desktop Authority administration tool. the kind of relationships that ScriptLogic, a workflows. When the time came to create a Desktop Authority enabled Pierson to cen- Microsoft Gold Certified Partner, has with full-time IT position, Pierson filled it, even trally control the configuration of all work- both reseller partners and end customers. though he had no formal technology training. stations, even tailoring configurations to the Brian Styles, ScriptLogic’s chief technology He did, however, have a keen interest in person who happens to be using the machine officer, was himself a service provider until the subject. When one of the doctors that he saw an opportunity for a company focused Apple works with invited him to an open on delivering Windows administration tools house at his new office, Pierson says that he and switched gears to become an ISV. Asked was “drooling” at the technology on display how his VAR experience affected his think- there, such as the surgical rooms where a ing about the kind of company ScriptLogic doctor can pull up real-time MRI images on a would be, Styles says: “It has shaped it in plasma screen or launch a video call to a every way.” That includes the company’s colleague. At the event, Pierson struck up a channel program, which VARs like Northwest conversation with a senior engineer from agree is a fair one to all concerned. Northwest Computer Support, which had installed all the computer equipment in the THERAPYFOR APPLE PT doctor’s office. Before long, the two were talk- But it’s the ScriptLogic products that have ing about how Northwest could help Apple. been a godsend to Pierson and Apple Physical As Apple grew over time, each new Therapy. Pierson is a former staff therapist location was set up as its own workgroup. ILLUSTRATION BYILLUSTRATION NANA RAUSCH
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ChannelReport
Computers in the same location could A couple of other ScriptLogic tools— communicate with one another and share Secure Copy and Enterprise Security files with remote users via the VPN. But ScriptLogic Reporter—help Apple keep in compliance management was a chore. “I had to physi- with the privacy regulations set by the fed- cally visit the remote machine or use Corp. eral Health Insurance Portability and something like VNC (Virtual Network Accountability Act (HIPAA). Secure Copy Computing),” Pierson recalls. “That’s a automatically backs up documents stored hassle because the end user often has to Headquarters:Boca Raton, Fla. on local file shares, complete with sur- take some steps to allow me to connect in.” CEO:Jason Judge; leadership also rounding metadata, which is crucial for With 200 workstations and 300 users, the includesBrian Styles, CTO and founder HIPAA compliance. Enterprise Security plan was simply not scalable. Founded:2000 Reporter helps Apple produce various Northwest Computing encouraged reports, such as login and access reports, Apple to create a single domain structure Line ofBusiness:Network that can point to security problems. administration software for Microsoft under Active Directory and told Pierson Windows-based networks how the ScriptLogic tools could help him BIRTH OFA MARKET remotely administer workstations. “Once I MicrosoftPartnerProgram Level: The kind of administration tools that Pierson Gold Certified saw what the ScriptLogic tools could do, it finds so useful didn’t exist in the mid- to late was kind of a no-brainer,” Pierson says. MicrosoftCompetencies:ISV 1990s, when Windows NT 4 was taking mar- ScriptLogic Desktop Authority allows ket share from Novell Inc.’s NetWare. At that Annual Revenue:Undisclosed Apple to manage the configuration of all time, Styles was with Inteletek, the prede- desktops and allows for remote administra- Growth Rate: cessor to ScriptLogic and a network inte- tion, including patching. It enables Pierson 67 percent CAGRsince 2002 grator that made money installing and to conduct software audits and issue securi- Employees:139 in five locations supporting NetWare networks. When it ty prompts, be they random pop-up win- was clear the company had to shift to NT to CustomerBase:More than 17,000 dows with security reminders or a message survive, Styles says, it scrambled to find customersuse ScriptLogicsolutions upon login, such as a password change to manage approximatelyfour million the kind of administration tools for NT that prompt. Desktop Authority also enables desktopsand 96,000 servers. it was accustomed to in the NetWare world. Apple to ensure that each user sees the same The companytargetsanysize network “When we exhausted our resources in anyindustry setup every time he or she logs in to a trying to find a packaged tool to provide to machine, no matter which machine that Clients:The Home Depot USAInc., customers, we made the decision to try and may be, right down to the available printers. Yahoo! Inc., General ElectricCo., Verizon put something together ourselves,” he says. That’s an important consideration given Wireless, American ExpressCo., U.S. “Back in the mid- to late ’90s, the plan was Department ofDefense, Kohl’sIllinois that the company’s physical therapists don’t Inc. and Blue CrossBlue Shield to just develop a tool that we could take have dedicated PCs; they simply log in to Association from customer to customer that would allow whatever machine happens to be available us to do our job more effectively, and become Awards:2005 Best SecuritySolution at as they finish with each client. Microsoft TechEd Europe (Active a reason for customers to do business with Desktop Authority lets staffers take their Administrator); 15th Fastest Growing us. We blew those expectations out of the laptops between offices; each computer TechnologyCompanyin North America, water. We built it and they came.” will immediately have access to the appro- Deloitte Fast 500, 2005; named to the But Styles has never forgotten his VAR Inc. 500 list ofAmerica’sfastest-growing priate resources, such as printers, and private companiesfor third consecutive roots, and his philosophy for dealing with those to which the user no longer has year (2004, 2005 and 2006) his own channel partners is based on the access won’t be visible. “That’s all done at Golden Rule: Do unto others as you would www.scriptlogic.com login,” Pierson says. “Before, I’d get a call” have them do unto you. In practice, that every time users moved between offices. means equal benefit for equal investment.
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ChannelReport
“They’re smart enough to understand that whoever adds the value, you better
take care of them.”— Tom Rash, President, Northwest Computer Support Inc.
Training is one example. “They under- The company also offers a deal registra- on site to help one of our customers,” he stand that when we take someone out of the tion program under which Gold and says. He also appreciates that Northwest field for training, that’s $1,200 per day in Platinum partners can earn up to 7 percent gets to use ScriptLogic products internally. billable time,” says Tom Rash, president of of a deal’s value if they first bring in the “It’s always nice to get internal use licenses.” Northwest Computer Support. “So they don’t prospect, even if another company ultimate- Further, ScriptLogic helps out with market make you pay for it.” ly lands the business. development funds for events, including That’s not available to all partners, how- “The deal registration [program] is well trade shows, tech fairs and “lunch and learn” ever; only to the Gold and Platinum level done. They’re not going to let their partners events. “We’re probably doing about one event partners that commit to selling a minimum lose,” Rash says. “They’re smart enough to per quarter with ScriptLogic,” Rash says. amount of ScriptLogic products each understand that whoever adds the value, Most of all, though, Pierson appreciates year—$75,000 for Gold and $250,000 you better take care of them.” what the ScriptLogic products have done for for Platinum. There’s also a Silver level, him at Apple Physical Therapy. “ScriptLogic but ScriptLogic focuses on the two PARTNER AND CUSTOMER ACCOLADES has made the IT department more efficient, top tiers, which represent the most com- Indeed, Styles’ “do unto others” philosophy allowing me to do more with less effort,” he mitted partners. seems to permeate the company. Pierson says. “It also allows me to maintain better “A lot of VARs work very hard, and a lot calls ScriptLogic’s phone support “outstand- compliance with HIPAA requirements.” don’t,” Styles says. “We’ve done a very good ing.” He says he always gets connected to the By helping to keep desktops running as job of building a focused partner program most appropriate person for each issue; typi- they should, the products improve productiv- with approximately 50 very active [Gold and cally the problem either gets solved before ity not just for Pierson, but for all Apple Platinum] partners.” he gets off the phone, or he gets a workaround. employees. “We’ve gone from 50 to 70 help ScriptLogic is also sensitive to the competi- And the conversations often lead to discus- desk tickets on average per day to less than tive realities of the marketplace that can sions about features and functions that are five to 10 on a really bad day,” he says. “Each make it difficult for VARs to land deals far afield from the original problem. “They takes 20 to 30 minutes to fix on average, so it’s against national companies and catalogs just help me as much as I need until I want to quite a time savings.” • once customers start price-shopping. “We get off the phone,” Pierson says. “I don’t always want partners to make at least 15 to 20 points get that level of quality with other companies.” Paul Desmond ([email protected]), the regardless of where the customer shops the Northwest Computer has had much the founding editor in chief of Redmond Channel deal,” says Bill Masters, director of channel same experience, Rash says. “When we need Partner magazine, is president of the IT pub- sales at ScriptLogic. help, we get it. If we need it, we can get an SE lishing firm PDEdit in Southborough, Mass.
20 REDMOND CHANNEL PARTNER OCTOBER 2006 RCPmag.com Project1 9/7/06 12:09 PM Page 1
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PartnerView
Protect and Optimize BY MICHAEL DONNELLY Exchange Environments
n a recent survey conducted by Osterman Research Inc., more than 60 percent of the 250 respondents identified growth in e-mail storage requirements and spam as two “very serious” issues facing their This function gives the administrator the ability to block, enterprises. These two problems directly impact server utilization, I delete and redirect specific messages based on patterns detected in but Microsoft Exchange administrators can alleviate them by deploy- their subject and/or message body. ing a secure e-mail boundary. • Directory-driven e-mail security to validate recipients at the gateway. Using directories to validate recipients is no longer a Escalating volumes of spam and viruses, along with evolving luxury; it’s a requirement. By using a secure, high-performance threats such as spyware and phishing, pose serious challenges to and messaging-specific LDAP directory server, enterprises can the security and stability of groupware networks. Relying solely on leverage directory data to reject invalid addresses at the Internet Exchange’s security capabilities to protect the e-mail network can gateway before involving prior to resource-intensive routines seriously compromise security and significantly increase server such as scanning, mail store processing and storage. The result: load, limiting the number of users each server can support and fewer unwanted messages (a reduction of as much as 50 per- increasing storage costs. A secure e-mail boundary help solve these cent), optimized mail processing and routing, and reduced problems, if it has the proper characteristics: AS/AV filtering. • Robust Mail Transfer Agent (MTA) to manage traffic and ensure • Authenticate senders to fight phishing, spoofing and fraud. After failover. The MTA must be capable of managing enterprise-level vol- e-mails have survived the previous checks, it’s time to determine ume and support a wide range of security plug-ins, such as anti- where they’re really coming from by using Sender Authentication. Most spam and anti-virus solutions, policy management and authentica- leading SMTP Gateway (MTA) solutions embed the latest Sender tion solutions. Authentication protocols. • Connection control for monitoring and regulating the connection. • Failover protection to enhance Exchange reliability. Groupware The standard attack profile for spammers is a mass-mail delivery, systems are preconfigured to bounce mail if they don’t receive an without message queuing. Rejecting connections with this profile immediate confirmation after recipient mail server failures. dramatically reduces the number of messages entering the e-mail Rather than queue such messages on the server and load it network. In addition, that step virtually eliminates targeted attacks with delivery re-tries, the optimal solution must possess like denial of service and address harvesting. By monitoring traffic the capability to queue and store messages in a separate MTA for connecting to an MTA and throttling back as needed, connection later delivery. control protects Exchange environments from unwanted messages A properly deployed secure e-mail boundary optimizes the per- and malicious threats. formance and security of Exchange. The end result is a greater ROI • Flexible options for anti-spam and anti-virus filtering. Best prac- on the entire messaging network through enhanced throughput tices dictate the use of multiple anti-virus solutions from different and a reduction in messaging servers. • vendors. Enterprises should look for an anti-spam engine that receives both periodic and micro-updates to deal with the real-time Michael Donnelly is senior architect at Sendmail Inc. (www.sendmail.com), flow and patterns of spam on the Internet. In addition, they should a Registered Member and a global provider of enterprise messaging support policy enforcement to augment the engine’s functionality. solutions based in Emeryville, Calif. PORTRAIT BY SCHNARE JILLIAN
22 REDMOND CHANNEL PARTNER OCTOBER 2006 RCPmag.com RCPNewsletterAd3.qxp 9/6/06 12:22 PM Page 1
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Redmond Channel Partner Update keeps you informed on the most relevant news, issues and events for Microsoft channel partners. Subscribe Today. It’s Free! RCPmag.com/newsletter 1006rcp_F1ClosetoMS_24-29.v9 9/11/06 12:03 PM Page 24
KEEPING ASAFE DISTANCE FROM YOU ARE HERE
ISVs need to stay close to Microsoft— but not too close. Here’s how to be an effective partner without giving away too much. By Lee Pender
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FEATURE | Too Close to Microsoft
ome stories have been around for so long that they sound almost apocryphal, but they’re “They real. References to them are scattered through- out public records and court documents. They are cautionary tales of companies that devel- Soped a close working relationship with Microsoft only to learn, have the company glean knowledge from them and move into their markets with its own offerings (see “Alliances Gone Awry,” p. 28). It’s every good partner’s nightmare. These stories aren’t just retreads or the aimless anti- they assimilate, Microsoft ramblings of grizzled industry veterans, either. In fact, they continue to appear today, most recently with Microsoft’s creation of its own Digital Rights Management they copy. for its forthcoming Zune digital music player (see “Screwed for Sure,” opposite page). For its independent software vendor (ISV) partners, Microsoft is the mother ship: a creator of revenues, a Once they get powerful brand name that attracts customers and the producer of the operating system that lets them carry their applications to their user bases. It’s critical, then, for ISVs to work closely with Microsoft, to tune their done with all the applications to the company’s technologies and to have Microsoft’s backing in marketing and, sometimes, development efforts. Working closely with Microsoft can produce huge benefits for ISVs, just as staying too other blips on far away can shut them out of critical opportunities for revenue and growth. Yet those tales of past alliances persevere, reminding ISVs that they need to keep just the right distance from the radar screen, Microsoft—to work with Redmond as good partners without tempting the company to pull the rug out from under them in their own markets. And, ultimately, it’s possible for ISVs to do just that, if they adhere to a few you become simple rules of engagement with the technology giant. Redmond Channel Partner magazine repeatedly con- tacted Microsoft’s public relations firm about this story the blip.” in the weeks leading up to publication. Microsoft, through its PR firm, first declined, citing legal issues, an interview request to discuss how the company handles — ChristosCotsakos, former president and CEO ofE*Trade Group Inc., talking about non-disclosure agreements with third-party software then-partner Microsoft in The Wall Street Journal, June 5, 1997 vendors. Microsoft subsequently failed to provide a spokesperson by our deadline in response to requests to discuss more generally how the company handles rela- tionships with third-party ISVs and how it deals with sensitive information from those vendors.
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Microsoft Isn’t Always a Predator … One CTO at a West Coast Microsoft ISV partner company, Despite some famous incidents in the company’s past, partners and who’s well-acquainted with Microsoft’s dealings with third-party analysts say that Microsoft doesn’t tend to join forces with ISVs just vendors, explains that product groups at Microsoft, such as the to steal their ideas and incorporate them into its own products. Exchange or Office divisions, are always on the lookout for oppor- Instead, they say, Redmond usually hopes to achieve mutual benefit tunities from any source. with its partnerships. “There’s a set of clearly defined categories of functionality “I don’t lose any sleep worrying that Microsoft is going to take [within Microsoft],” says the executive, who maintains that he has intellectual property from us,” says Steve Morton, vice president of a good relationship with Microsoft but spoke to Redmond Channel product management and product marketing for Altiris Inc., a Lindon, Partner only on the condition that neither he nor his company be Utah-based maker of service-oriented management applications and identified. “They have program managers who are responsible for Gold Certified Partner. “That’s never been a concern. I don’t think that finding out what the different approaches are to satisfying cus- from a code-level perspective that would be part of their game plan or tomer requirements in these categories in whichever way they be considered appropriate by anybody at Microsoft.” can. They read analyst content; they read information from the In fact, Microsoft is one of the less predatory companies in the press. They have face-to-face conversations with ISVs.” technology industry in terms of dealing with partners, says Paul Neel, It’s those conversations that can get eager ISVs into trouble, and president and CEO of Espero Inc., an Edmonds, Wash.-based consult- Microsoft is just as likely to start them as ISVs are. In fact, the first ing firm that counsels ISVs on partnering with Microsoft. “Frankly, I sign of caution for an ISV should be an approach from a product know a lot of other ISVs that scare the heck out of you more than group at Microsoft. Microsoft,” Neel says. Working very closely with the sales and marketing arms from the start is a better move, despite the fact that Microsoft sometimes … But Don’t Tempt the Beast tells partners that the first thing they should do is to engage directly If Microsoft isn’t necessarily out to get them, why do ISVs need with the product group, the CTO says. In fact, he continues: “That is to use caution when dealing with Redmond? Because every big the last thing.” company looks for ways to break into lucrative new markets, and partners that do too good a job of lighting those revenue paths Offer the “Press-Kit View” without demonstrating their own value might be compromising Furthermore, the CTO says, while Microsoft won’t usually pres- their futures. sure third parties to give away sensitive information, partners
“Screwed for Sure” So read a headlineon Wired Newsonline harder than it will Microsoft’schiefcom- (Microsoft Chairman Bill) Gates’ crew in August, reminding Microsoft partnersof petitor, Apple Computer Inc., which owns insightsinto how their businesseswork. all stripesthat the companyisnot afraid to the iTunesand iPod franchises. Eliot Van Zune must feel like a seriousbetrayal of launch itsown initiatives, sometimesat Buskirk’sWired newsarticle surmises: trust to PlaysForSure partners.” their expense. “Thiswill come asa huge disappoint- And Michael Gartenberg, analyst at New Punditsand analystsagreed that— ment to Microsoft’shardware and software York-based JupiterResearch, noted in his despite Microsoft’spledge ofsupport for partners… Microsoft’sown Zune player blog that “the real losersin the short term itsmusicpartners—the forthcoming will not support their storesdespite this are likelyto be … former partnersthat launch ofMicrosoft’sZune digital music longstanding partnership. These partners have failed to deliver market share from player and proprietaryDigital Rights have also been giving their internal Apple and will now find themselvesnot Management islikelyto hit the partnersin numbersto Microsoft aspart ofthe onlycompeting with Apple but with their the company’scurrent PlaysForSure DRM PlaysForSure licensing deal, giving former partnersfrom Redmond.” — L.P.
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FEATURE | Too Close to Microsoft
often cause problems for themselves by voluntarily divulging their To that end, Neel recommends keeping a fairly tight rein on CTOs, strategies and putting ideas for new products in Redmond’s head. as they often talk proudly—and far too openly—with Microsoft prod- “My recommendation is not to talk about strategy at all. Talk uct groups about their companies’ technologies. Some communica- about your existing technologies; talk about your existing products, tion is healthy, he says, but too much can open an ISV up to risk. and let Microsoft extrapolate where you’re going,” the CTO says. “I’ve seen companies where the CTO is so clammed up you can’t “Give the person the press-kit view of the company”—in other get them to set foot on [the Microsoft] campus,” Neel says. “That can words, emphasize information that’s already publicly available. be unhealthy.” But, he adds, “One CTO went unchecked into It’s important to remember, too, that absent protection from Microsoft a week at a time. Thanks to that attitude, Microsoft’s next patents (see “The Problem with Patents,” p. 29), Microsoft can version of Office has a lot of things in it that come from this company.” use just about any information an ISV turns over to it. Even Relating a story about one of his clients, Neel adds that trade non-disclosure agreements signed with Microsoft can’t protect shows are a particularly dangerous place to unleash CTOs. “I watched an ISV from having Microsoft pass critical information on to the chief architect of this [Microsoft product] group walk up to the product teams who might be working—or start working—on a CTO and pick his brain right there in the booth,” he says. “Don’t go to a competitive product. meeting with product groups for more than an hour and a half.” “Any meetings, conversations that you have with Microsoft, if there’s a product feature idea that comes up in conversation, they Keep Tabs on Microsoft have a right to take it,” Neel says. “I don’t know anyone that’s been If ISVs need to be careful about how much Microsoft knows about able to strike that clause from the agreements.” them, they should also be diligent about knowing everything they can
Alliances Gone Awry Plenty ofstories existto remind partners Stac’sdata-compression utility. Stac’s Autobytel Inc. still existsand remains that it’swise to use caution when dealing salesslumped. one ofthe Internet’s leading auto-sales with Microsoft. Two ofthe better-known Stacclaimed, among other things, that sites. The Irvine, Calif.-based company, talesfrom Redmond’shistoryinvolve one Micarosoft had stolen itspatented technol- though, had its own run-in with former allythat survived—and one that ogyduring the companies’ briefcourtship Microsoft in the mid-1990s. According didn’t. The companythat didn’t make it was and used it to develop DoubleSpace, to BusinessWeek, the companies part- San Diego-based StacElectronics, which, according to the San Diego publication. In nered in the 1996 launch ofwhat was in the 1990s, successfullysued Microsoft 1994, a federal juryagreed with Stacand then called CarPoint, Microsoft’sonline for patent infringement. In a February1994 awarded the company$120 million in dam- car-buying service. article, The Los Angeles Timesnoted that ages, according to the Times. Ultimately, The companiesended their partnership the companynegotiated with Microsoft to after some wrangling, the two companies in May1997 over differencesin strategy— license Stac’sStacker technologyfor the released a June 21, 1994 statement but not before Microsoft had used the MS-DOS6.0 operating system. announcing that theyhad reached an relationship to pump Autobytel for infor- Bythe end of1992, however, the two agreement through which Microsoft would mation on itsbusinessmodel, according to companieshad severed their relationship, payroyaltiesto Stacand purchase a stake in publicstatementsbyformer Autobytel according to a 1999 article in the San the company; Redmond’sultimate outlay president Peter Ellis. Diego Metropolitan, Uptown Examiner came to about $83 million. In that state- Ellistold BusinessWeekthat Microsoft & Daily Business Report. When MS-DOS ment, GaryClow, then-chairman and CEO of “picked our brains” during the companies’ 6.0 appeared in 1993, it included StacElectronics, said, “Today’sagreement collaboration. He offered a more damning DoubleSpace, a data-compression tech- immediatelyendsour conflict with analysis—and a warning for current and nologythat Microsoft claimed it had devel- Microsoft and ushersin a new era ofcoop- future partners—with thiscomment about oped itself. In addition, the 1999 article eration between the two companies.” Microsoft: “When theycall you up, you continues, the price ofthe whole operat- After experimenting with other business thinkit’sgreat, but in reality, the dance will ing system washalfthe price ofStacker, models, Stacwent out ofbusinessin 2002. soon turn into a nightmare.” — L.P.
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says Levin, who is executive vice president for strategic business The Problem development at LaGarde, a Gold Certified ISV Partner and maker of StoreFront shopping-cart software based in Olathe, Kan. with Patents Innovate and Diversify Patentlawsuits have made newsin recent years, and Microsoft Knowing Microsoft’s product roadmap is only useful if an ISV can haslost itsshare throughout the historyofthe company. Assuch, read it and work on applications that Microsoft can’t or won’t develop ISVsmight be under the impression that patentscan protect them itself. It’s important to know where Microsoft is going with its newest from having Redmond usurp their technologies. products and features in order to avoid those categories—or to stay That might be true, but patenting technologyisn’t assimple as significantly ahead of Redmond in them—and develop for it might seem. The USPatent and TrademarkOffice Web site says Microsoft’s weaknesses. Microsoft is more likely to buy a company that the average waiting period for a decision on a patent appli- than compete with it if it wants the company’s technology but can’t cation is24.6 months, meaning it takes, on average, two yearsfor readily develop it in Redmond, the CTO says. the government to processand ratifyor denya patent request. “ISVs who are continuing to innovate automatically have a In the software industry, three to five yearscan passbetween three-year lead on Microsoft,” he says. “It’s going to take Microsoft the time a companyfilesfor a patent and the time the govern- two-and-a-half to three years to release a product that’s directly ment grantsit, saysthe CTO ofone Microsoft ISVpartner company. competitive. When Microsoft fails to implement [a technology idea] That doesn’t help upstart ISVswith innovative ideasthat might or sees that the timeframe for implementation is too long, that’s interest Redmond, or anyother large vendor. when a company gets acquired.” “Patentsprotect a companythat hasbecome successful,” says Smaller ISVs should also use their size as an advantage in devel- the CTO, who spoke to RCPon condition that neither he nor his oping around Microsoft, Altiris’s Morton says. ISVs focused on one companybe identified in thisstory. “You can’t sue people based or a few categories of technology can stay ahead of Redmond by on a patent that’snot been granted. There’svalue in acquiring releasing products faster than Microsoft can. patents. I stronglyrecommend that all ISVsacquire patents. But “It’s a lot easier to turn a 1,000-person company than it is a com- don’t expect a patent that hasnot been granted to offer you pany like Microsoft,” Morton says. much defense.” — L.P. ISV’s don’t have to be married to Microsoft, either. Neel counsels ISVs to expand their own ecosystems when appropriate, seeking to partner with other large vendors as well. His own former company, KVault Software Ltd., worked with Microsoft but also maintained about Microsoft. Having a feel for Microsoft’s product roadmap and partnerships with other large firms, such as storage giant EMC Corp. what features will or won’t be included in key releases of future applica- Ultimately, it was Veritas Software Corp. (since acquired by Symantec tions is critical for ISVs that want to avoid competition with the giant, Corp.) that bought KVault Software for about $225 million in 2004. compete effectively or put themselves in a position to be acquired. KVault was acquired “a little under two years ago in a hostile Acquisition by Microsoft, of course, is the happy alternative to market, with revenues of $24 million, for a quarter of a billion dol- unexpected competition from Redmond. But ISVs shouldn’t make it lars with less than 200 employees,” Neel says. “Realize that you have obvious to Microsoft that they’ve set acquisition as a goal—even if the power of setting up your own ecosystem. Realize it and fulfill it.” they have, according to the West Coast CTO. “If an ISV is trying to set itself up for acquisition, it’s very likely to Be Careful, but Not Paranoid come across to Microsoft as a company in trouble,” he says. “Align with Caution, while necessary in dealing with Microsoft, shouldn’t pre- Microsoft’s roadmap and figure out those areas where three years from clude a close relationship with the company, which can be an impor- now Microsoft won’t have a solution in the same space. That’s more tant and lucrative partner for ISVs. about understanding what Microsoft is going to ship three years from “Microsoft is not the evil empire,” the CTO says. “They’re out to now than it is saying, ‘I’ve got this cool new whiz-bang feature.’ When try to make value for the company.” Microsoft wants to acquire technology, they will find you.” And partners who know how to deal with Microsoft can use their On top of that, talking acquisition with Microsoft can be a risky relationships with the company to make value for themselves— proposition, says another partner-company executive, Mike Levin without compromising their own businesses. • of LaGarde Inc. Caution is in order even when Redmond broaches the subject. Lee Pender ([email protected]) is senior editor of Redmond “There’s more than a few stories about Microsoft dangling Channel Partner magazine and editor of its electronic newsletter, acquisition, getting companies to open up and then walking away,” Redmond Channel Partner Update.
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FEATURE | Campaign Trail
On the Campaign ai
rMicrosoft has replaced its ‘go-to-markets’ with customer campaigns. What does the switch mean for partners? By Rich Freeman GETTY IMAGES
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For many partners, it had become a summer ritual. Every July, Microsoft tinkered with its list of “go-to-markets” (GTMs), adding a few here and removing a few there. Butnotthis year. Instead, during Microsoft’s 2006 Worldwide Partner Conference in Boston, the company made official what it had been quietly telling some partners forweeks: GTMs are history. Introduced in 2002, GTMs were coordinated sales and marketing initiatives aligned with Microsoft’s top revenue priorities. The operational efficiency and productivity GTM, for example, promoted infrastructure applications such as Windows Serverand ExchangeServerto enterprises and midmarketorganizations, while the financial managementGTM drove l adoption ofvarious Dynamics ERP products among small businesses.
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FEATURE | Campaign Trail
“We’re trying to think about people, and give the channel the materials they need to support those people.”
— Pam Salzer, Worldwide Partner Marketing Director, Microsoft
Now Microsoft has scrapped GTMs in favor of new “customer alliances at Panorama Software Ltd., a business intelligence ISV and campaigns,” the first of which was scheduled to reach the channel in Gold Certified Partner based in Toronto, Canada. Ho sees customer September, and the last of which is supposed to roll out in December campaigns as simply the latest step in Microsoft’s ongoing effort to (see “From GTMs to Customer Campaigns: What’s New,” p. 24). bring its marketing practices in line with what its partners have been Like GTMs, customer campaigns seek to shift Microsoft’s mar- doing for years. keting spotlight from individual products to multiproduct solutions. Indeed, though it’s still too soon to be certain, customer cam- Unlike GTMs, however, customer campaigns are inspired by what paigns appear likely to impact Microsoft more heavily than its chan- businesses need to accomplish rather than what Microsoft wants to nel. Partners have always talked up solutions and business value. sell. In place of the Microsoft Office system solutions campaign in What makes customer campaigns important is that Microsoft may last year’s connected productivity GTM, for example, this year’s cus- finally be catching up with that conversation. tomer campaign lists goals such as “find, use and share information” and “build customer connections.” A Clean Break Furthermore, there are fewer campaigns (just 12 this year, com- To fully appreciate the significance of customer campaigns, it helps pared to 19 GTM campaigns last year). To an unprecedented degree, to revisit what preceded them. Long ago, before customer cam- the campaigns augment Microsoft’s usual talk of features and func- paigns—or even GTMs—existed, Microsoft built most of its market- tionality with discussions of business value. And in a tie to the com- ing around stand-alone product pitches. Given the company’s stag- pany’s “People-Ready” branding, which emphasizes employee gering growth, it was hard to argue with that approach. But many in empowerment, they frame many of those discussions in terms spe- Microsoft’s channel did. The businesses they sold to had more inter- cific to an individual’s role- and industry-based needs. est in solutions than products. Microsoft’s relentless focus on this Pam Salzer, Microsoft’s worldwide partner marketing director, server application or that desktop system rendered much of its mes- calls the switch to customer campaigns nothing short of revolution- saging irrelevant to customers and useless to partners. ary. Many partners are less certain. “I would call it evolutionary,” Meanwhile, as Microsoft added more and more products to its
says Lee Ho, vice president of corporate marketing and strategic catalog, it increasingly found marketing dozens of separate offer- CORBIS IMAGES
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ings wasteful and confusing. “The feedback we were getting from Customer campaigns are Microsoft’s bid to make a clean break customers, partners and the field was that there’s too much stuff out from its past. For starters, they’re based on customer aspirations— there,” says Robert Crissman, general manager for U.S. partner such as “drive business performance” and “enable your mobile enablement at Microsoft. workforce”—rather than revenue opportunities. “We focused GTMs were Microsoft’s first attempt to consolidate and rational- on what the customer needs to get done, and those are the cus- ize its marketing. Based on broad technology themes, such as con- tomer campaigns,” says Microsoft’s Salzer. Additionally, in a rare nected productivity and business applications, GTMs each con- display of discipline, Microsoft limited itself to just eight cam- tained one or more campaigns. Each campaign, in turn, highlighted paigns for enterprise and midmarket organizations, and four one or more key Microsoft products, often in the context of a solu- campaigns for small businesses. Not one includes a product name tion. Last year’s connected systems GTM, for example, included five in its title. campaigns. One of those, business intelligence, promoted SQL Of course, product marketing isn’t entirely out of the picture. Server and Office. In support of each campaign, Microsoft provided Microsoft will devote plenty of energy this year to launching new an integrated set of sales presentations, collateral pieces, Webcasts releases of Windows, Office and other key products. According to and other materials. Salzer, in fact, Microsoft changed the start dates for several cus- For a company whose marketing calendar had historically been tomer campaigns to keep them from conflicting with the Office built around product launches, GTMs represented a significant 2007 and Dynamics CRM 3.0 rollouts this fall. Product launches departure from tradition. But a close look at the 2006 fiscal year’s may not dominate Microsoft’s marketing plans any longer, but GTM lineup reveals lingering vestiges of old habits. For one thing, they’re still a top priority. many campaigns still plugged a single product. The connected cus- Just the same, several aspects of customer campaigns suggest tomer campaign, for instance, was little more than a thinly veiled that Microsoft is finally catching on to how businesses really buy Dynamics CRM push. Other initiatives, such as the Exchange 5.5 technology and partners really sell it. For example, five of this year’s upgrade and Oracle migration campaigns, spoke more to eight enterprise/midmarket campaigns target business decision- Microsoft’s priorities than those of its customers. Meanwhile, there makers, suggesting a heightened appreciation of their critical role in were nine GTMs last year, containing 19 campaigns. That’s a big IT purchasing. “In years past, we focused primarily on the IT deci- drop from dozens of separate product drives, but still a lot of mes- sion-maker,” Salzer notes. (For a full list of initiatives, see “Customer sages for customers and partners to absorb. Campaigns, Fiscal 2007,” p. 34.)
GTMs and Customer Campaigns: What’s New
Go-to-Markets CustomerCampaigns Campaign topics Based mostlyon what Microsoft wanted to sell Based mostlyon what customersneed to do Campaign focus Product-oriented Solution-oriented Campaign volume Fiscal year 2006: 19 campaigns Fiscal year 2007: 12 campaigns Targetaudience MostlyITexecutives Greater emphasison businessexecutives Messaging Little granularitybyaudience Often broken out byindustryand job role Pre-sales resources Strong availabilityfor later stagesofsales New toolshelp partnersinitiate and qualifyopportunities cycle, weakavailabilityfor earlyones aswell asclose them Demos Partnersbuilt their own or tookprospects Microsoft providesa wide variety, all readyfor to reference sites immediate use
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FEATURE | Campaign Trail
To get non-IT executives’ attention, customer campaigns people how the actual application would work,” he says. As a result, emphasize business value and ROI. And in keeping with Microsoft’s Cadre5 had to either build demos itself or talk existing clients into new “People-Ready” branding, campaign-messaging frameworks hosting site visits. “I’d much rather have a generic thing out there now address specific job roles and industries, allowing partners to than have to go through that,” says Hicks. leverage one set of talking points when presenting to a manufacturer’s Salzer says that GTMs were light on tools for the prospecting and COO and another when meeting with a retail firm’s CFO. “We’re try- qualifying stages of the sales cycle. So Microsoft has developed ing to think about people, and give the channel the materials they assessment frameworks that partners can use to analyze a cus- need to support those people,” Salzer explains. tomer’s business pains and propose matching solutions. “It isn’t Among those materials is a new set of turnkey demos designed quite like getting a partner a lead,” Salzer acknowledges. “But it gets to illustrate a proposed solution’s business benefits. Partners can them the materials they need to fish for leads.” host the demos online, and ISVs can extend them to showcase their own wares along with Microsoft’s. In the past, notes Salzer, partners Getting in Sync who wanted to show customers a sample solution involving Office, Though most partners are reserving judgment on customer cam- SQL Server and Dynamics CRM had to construct it on their own. paigns until they’ve been around for awhile, some see cause for “Now we’re actually building out a demo for partners,” says Salzer. guarded optimism. “I like the strategy of gearing it to specific posi- “You literally have a demo-in-a-box. It’s phenomenal.” tions, to the project manager or the director of customer service, Steve Hicks, president and CEO of Knoxville, Tenn.-based because that’s who we’re usually calling on,” says Hicks. Keith Cadre5 LLC, a Gold Certified Partner specializing in custom applica- Brophy, president of business development at Troy, Mich.-based tion development and digital design, agrees. “That’s one thing we system integrator NuSoft Solutions Inc., a Gold Certified Partner lacked in the GTMs. I don’t think there were enough demos to show with six competencies, is similarly upbeat. “[GTMs] were more tech-
Customer Campaigns Fiscal 2007
MarketSegment TargetAudience Campaign Name Enterprise and Midmarket BusinessDecision-Makers Build Customer Connections Enable Your Mobile Workforce Find, Use and Share Information Drive Real-World BusinessProcesses Drive BusinessPerformance ITDecision-Makers Optimize Your Application Platform Infrastructure Optimize Your BusinessProductivityInfrastructure Optimize and Secure Your Core Infrastructure Small Business All Decision-Makers First Server, Right Server Mobilityand Communications Salesand Marketing Financial Management
SOURCE: MICROSOFT
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nology officer (he left the firm this summer), says that most of Unlike GTMs, Resolute’s target markets corresponded to GTMs because the cam- paigns covered so many technology categories. “It was pretty hard not to map to the go-to-markets,” he says. the new customer Not surprisingly, then, many partners look for customer cam- paigns to exert little influence on their sales and marketing strate- campaigns are gies. Any big changes, they say, will be on Microsoft’s side of the rela- tionship. Brophy says that partnering with Microsoft will now be a little simpler, mostly because the software giant is now embracing inspired by what solutions too. Even Salzer concedes that customer campaigns sim- ply put Microsoft more in step with what partners have been doing businesses need to all along. “Many of our partners sell solutions every day,” she says. “These campaigns will just support that effort.” accomplish, rather Raise Your Voice Salzer directs anyone interested in learning more about customer campaigns to the Partner Marketing Center on Microsoft’s partner than what Microsoft Web site. Ho visits regularly and encourages other companies to do the same. “Microsoft creates more partner-ready collateral and wants to sell. tools than most partners even know about,” he says. In fact, Tim Phelan, founding partner of Alpharetta, Ga.-based OmniVue Busi- ness Solutions LLC, a Dynamics reseller and Gold Certified Partner, nology-centered. We had to come up with our own value proposi- says that free demand-generation resources are among the best rea- tions,” Brophy says. “These customer campaigns are doing that sons to participate in Microsoft marketing initiatives. Tapping into thought process for us.” Microsoft’s direct mail templates, telemarketing scripts and other Still, prior experience with GTMs is tempering expectations for materials helps OmniVue stretch its marketing budget and launch customer campaigns among partners. To be sure, many partners campaigns more quickly. “It’s not our sole source of branding or lead say, GTMs made working with Microsoft easier in important ways. generation, but it really helps us take [our marketing] to the next In the pre-GTM era, for example, Microsoft provided little guidance level at a very low cost of entry,” he says. on which products to push hardest. “You would do something, but Tedesco likes Microsoft’s marketing tools too, but wishes part- you weren’t sure if it was important to Microsoft or not,” observes ners played a greater role in defining and shaping the campaigns John Scandar, executive vice president and co-founder of Fullscope they support. “I don’t believe we have any voice, and I would love to Inc., a Dynamics AX integrator and Gold Certified Partner head- have some say in what’s really working,” he says. For his part, quartered in Athens, Ala. GTMs clarified Microsoft’s sales goals, he Microsoft’s Crissman points to several ways partners can provide says, enabling partners to set their own goals accordingly. input about customer campaigns. “If they’re a managed partner, I GTMs also provided a common vocabulary for strategizing with would encourage them to give their feedback to their PAM,” he says. Microsoft. Hicks recalls how difficult it once was to discuss topics such Other firms can speak with one of the community development as content management with Microsoft employees. All they wanted to managers who cover the unmanaged channel. Microsoft’s twice-a- know, he says, was where Visual Studio fit in. “We were just kind of out year partner surveys, quarterly partner briefings and annual part- of sync with each other,” says Hicks. For the first time, GTMs got ner conferences are also good forums. everyone speaking the language of solutions, enabling Cadre5 to have Brophy, for one, definitely plans to speak up if the passage of more productive conversations with its Microsoft contacts. time reveals weaknesses in customer campaigns. Meanwhile, he’s But day to day, GTMs changed little about how most partners did hopeful but cautious. “These customer campaigns are extremely business. “It’s not as if the go-to-markets Microsoft created were the new,” he says. “It’s a step in the right direction, but the future is first time our company had them,” says Ho, of Panorama Software. going to tell whether they’re effective.” • “We’ve always had go-to-markets.” The same goes for Resolute Inc., a business and IT consulting firm and Gold Certified Partner based Rich Freeman ([email protected]) is a Seattle-based free- in Bellevue, Wash. Bob Tedesco, the company’s former chief tech- lance writer specializing in business and technology.
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Branding101 Think you can afford to ride on the coattails of the Microsoft name? Think again. You need to promote your own brand, too. By Lauren Gibbons Paul
After going through the effort ofbecoming a Certified or Gold Certified Partner, you might be content to plaster Microsoft’smightylogo all over your stationery and homepage and call it a day. No doubt about it: Microsoft is probably the world’s best-known corporate name, and being associated with it can open
manydoors(see “Microsoft: World’sBiggest Brand,” July2006). ILLUSTRATIONS BY STEVE ROSS
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RCPmag.com OCTOBER 2006 REDMOND CHANNEL PARTNER 37 1006rcp_F2Branding_36-40.v9 9/11/06 1:06 PM Page 38
FEATURE | Branding 101
But your own company brand is equally important. While creat- Names are also subject to misunderstanding. An important, and ing, disseminating and maintaining a brand can be a complex, time- often overlooked, step in establishing a name is translating your consuming process, you ignore it at your own peril. company and product names into several foreign languages to make “Branding is an important part of driving leads and sales,” says sure they don’t have any unintended meanings or connotations. M.H. “Mac” McIntosh, an independent IT industry sales and market- Idioms can lead to big trouble. For example, some German knapsack- ing consultant based in North Kingstown, R.I. Well before any selling makers refer to their products in English as “body bags,” which might actually happens, your brand serves as your company’s public face— understandably prompt American consumers to steer clear. and its calling card. As McIntosh puts it: “You want your brand to get Whatever name you choose, you’ll need to make sure that it isn’t into people’s mental file cabinets, someplace they can go find you already taken and then register it with federal, state and local agen- later when they need you.” cies for trademark and other types of protection. (The exact require- But many small and midsize companies are in the same boat as ments vary according to jurisdiction. Your local Better Business vSync Corp., a Columbus, Ohio-based provider of electronic data Bureau should be able to advise you.) The safest way to handle that interchange (EDI) solutions. “We don’t have someone on staff who is task: Hire an attorney to do it. You don’t want to fool around here, says an expert in branding,” says Lisa Steinhart, marketing director for Harry Brelsford, CEO of SMB Nation, a consulting firm in Bainbridge vSync, a Gold Certified Partner. Island, Wash. Depending on what’s involved, the registration fee Like many other start-ups, vSync outsourced the task of naming might run as little as $1,000, or it could run much more. But at least itself shortly after its founding in 1999. Executives wanted a name once you’ve taken this step, you’ll have peace of mind from knowing that describes, or at least makes reference to, what the company actu- you’re in good shape should you face trademark-infringement com- ally does, Steinhart explains: “We provide synchronization between plaints (whether filed against you or by you) in the future. trading partners in different vertical industries”—hence, vSync. Ultimately, you may not be able to arrive at a name that, by itself, So what’s in a name? Just the heart of your brand. succinctly conveys what you do. In that case, you’ll need to create a tagline—a process that can be just as tricky as picking a name. Naming Basics You probably already have a gut sense that your company name is Tagline Basics critical. And it is. But you don’t need to feel overwhelmed by the vol- Taglines—brief, explanatory slogans—are especially important if ume of possibilities or to freeze because so much is riding on making what you do isn’t immediately evident from your company’s name, the right choice. When in doubt, default to simplicity. The best idea is says McIntosh. “You want to weave in what you do and who you do it a name that, standing alone, tells people what your company does. for and the benefits into one little phrase,” he says. But that might not be possible, especially if the name you want is Premier Knowledge Solutions Inc., a Gold Certified Partner based already taken. So what are your other options? in St. Louis, is a good example of a company name that needs a tagline Like everything else, company names are subject to fashion. to provide context and meaning. President Richard Losciale chose the Most recently, the dot-com boom began the trend of creating com- tagline “Innovative Technology Training” because it immediately pany names by sandwiching a couple of words together or making explained, as all good taglines should, what the company does (he also up entirely new ones. That creativity stemmed largely from the fact liked the alliteration). that many traditional company names—and their URLs—had To make its specialty area even more clear, vSync changed already been snapped up, leaving fledgling businesses to pioneer its tagline from “EDI Solutions You Can Count On” to “EDI new approaches to naming themselves. Such efforts generated Compliance Solutions You Can Count On.” “There are a million lesser-known (and sometimes baffling) monikers like Avolar, EDI companies out there. We needed to differentiate ourselves,” BrandLadder and Spherion, and more prominent ones such as says Steinhart. Accenture and Agilent. Understandably, many Microsoft partners might want to use Some companies choose unexpected spellings of words as their Microsoft’s name in their taglines—but, in most cases, Redmond’s names—for example, Cynergy or Cinergy, rather than “synergy.” corporate rules prohibits such use. Better to feature your alliance Using odd spellings makes it easier to trademark the name and regis- with logos and text on your Web page and stationery than run afoul ter the domain, but, at the same time, can make it tough for prospects of Microsoft’s policy. to find you. It’s a good idea to register domains of the most common misspellings of your name, too, says McIntosh. That way, you can Lessons Learned immediately whisk spelling-challenged searchers and other con- It’s easy to get overly hung up on your logo, but that’s actually among fused souls to your site. the least important aspects of branding. “Your mom might care, but
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Changing Your Brand: Proceed with Caution
Establishing a brandtakes a lotofwork, primarily in getting yourname and tagline in frontofas many people in as many formats as you can, again and again. In fact, repetition is probably the bestway to make yourbrand stick. So once you’ve established yourbrand—as validated by a focus group orsurvey, forexample—you’ll typically wantto avoid messing with it. “You build brand awareness by repetition and stability,” says Richard Losciale, presidentofPremierKnowledge Solutions Inc. ofSt. Louis. “Ourbrand is on ourtrucks, ourstationery, the Web. We wantitto stay putfora while. We have no desire to change it, and we see no need to.” Afterall, tales ofre-branding disasters are legion. Even the world’s biggestcorporations are capa- ble ofserious branding missteps. The mostinfamous example befell a brand giant: Coca-Cola Inc. earned the world’s derision when, in 1985, itlaunched and then almostimmediately withdrew its “New Coke.” Sales and marketing consultantM.H. “Mac” McIntosh says many re-branding mistakes occuras the resultofacquisitions. The acquiring company acts “jealous” toward the acquired brand, moving quickly to subsume itunderits own brand. Doing so is a crucial error, McIntosh says, because the acquirermightwell be throwing away the otherbrand’s loyal customers. In such cases, the new ownermustensure thatprevious customers can find theirway to the new entity. Ifcorporate hubris prevents the company from clearly establishing a path from the old brand to the new one, it’s guaranteed to lose some business. To establish thatpath, use verbiage such as “XYZcompany, formerly ABC company” or“ABC company, a unitofXYZcompany,” McIntosh recommends. Thatgoes a long way toward easing customer confusion. Ifyou acquire a brand you wantto change, experts recommend establishing a transition period. During thattime, keep the old brand intactwhile gradually introducing the marketto its new identity. And no matterwhat otherchanges you make, maintain the old brand’s URL—one sure way to keep previous customers coming back. —L.G.P.
no one else does, really,” says McIntosh. “The logo doesn’t make the the company’s policies, Losciale, of Premier Knowledge Solutions, cash register ring.” positions Microsoft’s logo at the bottom of his home page but men- What does get revenue flowing is reaching the right prospects. “The tions his alliance with the company many times in text higher up. brand message should ride along with lead-development messages,” “We have tried to have a fine balance, but we leave our egos at the says McIntosh. “You shouldn’t expect the brand to stand alone unless door,” he says. “Microsoft is one of the most powerful brands in the you’re a huge company and can afford to spend $1 million on brand- world. We’re very happy to be allied with it.” ing.” The primary purpose of a midsize company’s brand is to generate Steinhart agrees. “I can’t think of a case where we don’t tout the sales and prospects, rather than exist for the brand’s sake alone. Microsoft relationship. It’s working for us.” Small and midsize Microsoft partners can’t afford to do multi- million-dollar brand campaigns. For them, says McIntosh, the URL Considerations Microsoft brand does double duty, with its high recognition quo- You can quickly and easily search for existing and available domain tient and ability to communicate certain messages (for example, to names on a domain registration provider such as Register.com many people “Microsoft” is synonymous with “PC”). The Microsoft (indeed, it only takes 15 seconds to have your hopes for your first- partner’s brand should leverage the Microsoft name as much as pos- choice URL dashed). The trick, and the challenge, is finding a URL sible (and in ways that Microsoft allows) while promoting its own that’s intuitive, easy to remember and works with your company distinct message. name—and that isn’t already taken. New extensions such as .us, As for balancing Microsoft’s logo with your own online, .info and .tv open up new possibilities—but they’re not as main- Redmond’s rules are the primary consideration. In accordance with stream, and therefore not as popular, as the standard .com URL.
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FEATURE | Branding 101
Taglines—brief explanatory slogans— are especially Many, perhaps most, small and midsize company names don’t exactly match their Web URLs. Premier Knowledge Solutions, for examples, uses Premier-KS.com. That wasn’t the company’s first important if the choice, but, Losciale says, it was the most desirable option available. URL options are simpler if you’re using a made-up company name of your name, such as vSync. The URL www.vsync.com was available in 1999, when the vSync’s founders were in the market for a corporate identity. The trade-off , of course, is that a name like “vSync,” while company doesn’t drawn from words related to the company’s area of specialization, doesn't immediately convey what the organization actually does. say what you do. As with most branding decisions, it’s a matter of balancing and weighing the options. Managing search-engine visibility, whether natural or paid, is another critical branding exercise. Many Microsoft partners avail Houston, We Have a Problem themselves of pay-per-click advertising on Yahoo!, Google and Small and midsize companies often turn to McIntosh when some- MSN. “We have a person here whose responsibility is to manage our thing has gone wrong with their branding. They’ve spent too much commitments to the hit engines,” says Losciale. money and not seen a return. Or their revenue streams have dried Many domain-registration service providers, such as Network up. The biggest problem, he says, is that most companies wait until Solutions, offer additional, pay-by-the-drink branding services they’ve hit a full-blown brand crisis before taking any action—and such as search-engine marketing. That can be an efficient, cost- even then, they tend to resort to stop-gap measures. They tweak effective way to go, Brelsford says: “These [providers] are really their search-engine terms or buy a bunch of pay-per-click ads to smart with the services they offer. It’s $20 here and $25 there, a try to get things moving again. With the immediate crisis averted, good fit for most small businesses.” they forget about branding and marketing again—until the next setback occurs. Brand Maintenance The trick is to work steadily on branding efforts throughout the Once you’ve established your brand, you’ve got to maintain and year, in good times and bad. Many times, he says, material can be extend it. The first and most important step, McIntosh says: Don’t repurposed and reused for a minimal cost. Articles that you used in screw up. “Deliver what you promise,” he says. “Enhance the brand your last e-newsletter, for example, can be reused on the Web site. A by doing what you say you’re going to do, rather than betraying it by few paragraphs from your blog can be pulled out and reused in your not doing what you promise. Far better to underpromise and sales kit. “You don’t have to reinvent the wheel. Freshen things up overdeliver than the reverse.” and use them again if they worked in the past,” McIntosh advises. In addition, make sure you’re sending a consistent message After all, effective branding depends largely on repetition—a factor through all your different media (Web site, product literature, sales to keep in mind anytime you consider a brand overhaul (see pitches and so forth). McIntosh describes a Manhattan-based “Changing Your Brand: Proceed With Caution,” p. 39). Microsoft partner that stumbled especially badly in this area: Sometimes companies don’t even know whether they’ve got “When you lay out all their different marketing materials from the branding problems. (To be fair, if you’re doing an adequate job, last year, they look like they came from 10 different companies,” he problems can be tough to spot.) In that case, you might want to says. “In a competitive market like New York City, they may have invest in focus groups or expert advice on what you’re doing right missed the opportunity to plant the seed of remembrance in a and wrong. But, Brelsford notes, there’s one good way to know when prospect’s mind. You want to come to mind the next time they need you’re getting off-track: “Ultimately, if the phone doesn’t ring, you someone.” In other words: Inconsistency breeds anonymity. know you’ve made a branding mistake.” •
Log on to RCPmag.comforeasy access to additional resources, including Lauren Gibbons Paul ([email protected]), a freelance links to two branding and naming blogs. FindIT code: Brand101 journalist based in Waban, Mass., writes frequently about business and technology.
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FEATURE | THE FIFTH INSTALLMENT IN OUR SERIES ON MANAGEMENT BEST PRACTICES
Learning to Love
Top-notch negotiators aren’t born with that talent; they the Deal develop it by practice. The talks had come to the usual negotiation roadblock: money. Here’s how to sharpen your QuickStart Intelligence Inc., an Irvine, Calif., Gold Certified Partner that offers IT training and certification, had made a proposal to a client for a custom class. The own skills before you ever client then shopped around and found another firm that offered a more prepack- sit down at the table. aged training session for two-thirds the price quoted by QuickStart. The class was less than the customer wanted, but the lower price was a bargaining chip. By Fred Bayles “Our response was that we were talking about a custom class with more value,” says Hicham Semaan, QuickStart’s president and CEO. “Then we tried to find ways for them to cut down the cost without cutting that value.” Semaan and the client determined that they wouldn’t need courseware for
everyone taking the training. They decided to move to the client’s facility to further BYILLUSTRATION DWIGHT ALLOT
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cut costs. In the end, vendor and client were able to collaborate on a “The biggest misconception that I’ve encountered is that most plan to trim more than $6,000 from a $50,000 contract. To use the well- people think negotiation is about concession or splitting the differ- worn phrase, it was a win-win outcome. The customer got the custom ence,” says Robert Bordone, director of the Harvard Law School’s program it wanted at a more budget-friendly cost. QuickStart received Negotiation and Mediation Clinical Program. “If you have a cus- good value for its work and a continuing relationship with a client. tomer saying $80,000 when you’re saying $150,000 and you start by “The most important part of negotiating is to understand what trying to get somewhere in between, you’re just haggling. If, instead, matters most to the person you’re working with,” says Semaan. “If I ask ‘Why $80,000?’ I might learn things that could lead to a better you ask the right question, you get a good feel for how they [weigh] agreement for both of us.” the different options.” Bordone uses the example of a company that wanted to pay less Sounds simple. But for many people, deal-making is anything for a machine than the supplier was asking. However, it wasn’t a but easy. Although most of us spend a lifetime in negotiation—from simple case of wanting a lower price. The buyer was concerned wheedling a second cookie out of Mom to working out that compli- that the machine would fail within three years, cutting into the cated treaty called marriage—few of us enjoy the process when it value of the purchase. comes to the business world. “Instead of fighting over the bottom line, you could set up a con- “It is akin to the fear of public speaking. There’s a barrier that tingency contract that says, ‘Pay me something lower than I’m ask- many people have when dealing with someone they don’t know,” ing, but pay me another $150,000 in the fifth year if you’re still using says Grande Lum, author of “The Negotiation Fieldbook: Simple the machine,’” Bordone explains. “By doing something creative like Strategies to Help You Negotiate Everything” (McGraw-Hill, 2005). that, you’re being attentive to the relationship. It’s ultimately not As founder and managing director of Accordence Inc., a good for business if I get an extra dollar at the cost of creating tension Burlingame, Calif.-based consulting and training firm specializing with a customer.” in negotiation, Lum sees many people come in with the idea that Lum says the same is true for other forms of negotiation, such as negotiation is all about confrontation. “It’s the notion that the other arriving at a salary package for a job prospect. “People see money as a person will take advantage of them,” he says. “You expect the worst measure of value and self-worth,” he explains. “That’s where you try and, in some ways, you can create that situation by anticipating it.” to find substitutes, such as [a better] job title or less-expensive perks.” The other general misconception is that negotiating skills are There are other substitutes for money: stretched-out payment innate to some and inaccessible to the rest of us. Michael Wheeler, a schedules, timetables of the delivery of services or goods, contin- professor of management practice and a negotiation expert at the gency agreements for successes and failures. Harvard Business School, says few negotiators are naturals. “You might establish that time frame is most important,” says “People assume you’re either a born negotiator or not,” he says. Semaan. “It might cost the customer more, but that might be more “We can demonstrate over the years that people’s effectiveness can important than cost. There are a lot of variables that you learn be improved.” through experience.” The improvements also come to those who think they’re natural negotiators—but who, in fact, come off as too aggressive. “In some Preliminary Work cases, confidence needs to be brought down a little bit,” Wheeler says. The best negotiators, say the experts, are the ones who have done Wheeler’s students sharpen their skills through mock negotiat- some preparation in anticipation of the issues. A key step in that ing sessions. They study game theory and psychology. They analyze direction: Do some research to understand the other side’s point of research that identifies best practices. While we can’t presume to view. What do they need out of the deal? What is important to them? offer a Harvard MBA course in negotiation, what follows is a primer “You should write down a list on what you think might be impor- on some winning negotiation practices followed by the experts, tant negotiating points. What goals are shared? What issues are non- including Microsoft partners. competing?” says Bordone. He cites the case of a health-insurance company that wanted to More Than Money renegotiate a contract with a hospital. The main sticking point in the If the experts agree on one thing, it’s the mistake many negotiators previous agreement was the time in which invoices for services had make when it comes to money issues. That’s the notion that to be submitted to the insurer. The existing contract required filing any deal can be cut by finding a middle ground in respect to the within 90 days. The insurer wanted to cut down the time to 45 days. bottom line. The hospital wanted to extend the deadline to a year.
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FEATURE | Virtual Project Management
“ It’s only when you’re able to put yourself in the other side’s shoes that you can make real progress.” — Robert Bordone, Director, Negotiation and Mediation Clinical Program, Harvard Law School
The numbers weren’t arbitrary. The insurer wanted a quicker Ken Ryder, vice president of Systemgroup Inc., a Mississauga, turnaround to allow for better, timelier budgeting decisions. The hos- Ont., Gold Certified Partner that specializes in application develop- pital wanted more time to allow for flaws in its accounting systems. ment and integration services, tells of working with a Canadian “The insurer had just installed a new, more effective accounting health insurance company that was looking for someone to help set system and I suggested they lend their people to the hospital to help up a billing and claims management system. fix its problems,” Bordone recalls. “At first the insurance people said Instead of the tough, time-consuming task of laying out a soup- the hospital would never do it. There had been a history of con- to-nuts agreement, the two sides took a step-by-step approach with tention. They said ‘They don’t like us.’” an initial $30,000 contract for a proof of concept. That first step led As it turned out, the hospital was grateful for the help. The deal to others and eventually a $3 million relationship that lasted more cost the insurer a bit upfront, but the agreement had long-term ben- than two years. efits for both sides, including a better accounting system for the “If you break down a project into manageable chunks, it reduces insurer, quicker, more accurate billing for the insurer and a closer the risk,” says Ryder. “You develop a roadmap to get you to a destina- relationship between the two that eliminated some of the division tion with a couple of steps along the way. Often, as you move for- and created something closer to a partnership. ward, you can earn a trust that makes it easier as you move through “These are the kinds of things you want to be doing,” Bordone the next step of negotiations for the project.” says. “Whoever winds up paying for it, it is worth more than money.” This step-by-step approach also means that other members of Bordone says this example shows how you can save time and your staff outside the sales department may find themselves aggravation by being open about your goals. “You need to first dis- involved in negotiations. cuss: What are the concerns in respect to the issues?” he says. “You “There are times when your consultants are the real sales force— can make more progress if you understand each others’ positions.” the ones that keep the sales going,” says Jonathan Edmett, vice presi- Still, it can be a tricky process to get both sides to open up about dent of sales and marketing for Solutions Consulting Group Inc., a their real worries. Bordone says it takes work for people to develop San Diego-based Gold Certified Partner specializing in enterprise enough trust to share information with people across the table. resource planning and customer relationship management. “A lot of “People don’t often do that when they negotiate,” he says. business is done outside the earshot of the sales guys.” “People are so concerned that they are going to get taken advantage Edmett uses the example of a step-by-step contract with a major of that they don’t want to give up information. It’s only when you’re West Coast insurer that wanted to replace an antiquated system. He able to put yourself in the other side’s shoes that you can make real helped negotiate the project’s first $30,000. After that, the continu- progress.” ation of the business relationship fell squarely on his project man- agers’ shoulders. It was that staff, not the sales department, that was A Step-by-Step Approach instrumental in negotiating the next phases of the contract, which For the IT world, negotiations between customer and client are was worth in the neighborhood of $750,000. more likely to be over consultation and services than products. That “A vast majority of the time spent with customers is spent by the makes negotiating even more complicated. Once an agreement is project managers,” Edmett says. “The customers look to them to cut for a quantity of widgets, the deal is done. But service agree- solve their problems and sometimes consultants are afraid to tell ments can cover months, if not years, and change with each step. them the truth. But if you teach them to paint an honest picture, let “With goods, there’s a finite end to the deal. Services are ongo- them know what you’re thinking, you develop a good relationship ing,” Wheeler says. “There’s a stronger relational dimension to that leads to easier negotiations on the next phase.” negotiating service agreements. There are surprises and under- These slow-motion negotiations help in preparing a customer standings to work through.” for the realities of the magnitude and cost of a job you’re bidding on. But these longer-term relationships also offer new opportunities Edmett says some of his clients initially want to pay $500,000 for in negotiations. work that would cost his company $750,000 to deliver.
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7Tips for
“Customers have a tendency to underestimate Negotiators jobs because they don’t know [how much] work [is] involved,” he says. “It’s our job to educate them about it. That’s why we don’t refer to it as There’s no shortage ofbooks on negotiation. Among the best ‘negotiation.’ We call it ‘managing expectations.’” known: “Getting to Yes” (Penguin Books, second edition, (See “7 Tips for Negotiators,” this page.) 1991), written bymembers ofHarvard Law School’s Program on Negotiation. The program’s Web site, www.pon.harvard.edu, From Adversaries to Partners is also a fine resource. Meanwhile, here are some tips for In any negotiation, remember that the person handling the mechanics ofnegotiation. you’re dealing with must report to superiors, just as you must likely do. That is why it’s so important to develop a good connection with your counter- Unclench those fists.Forget the notion, made popular in some how-to books, part in negotiations. that negotiation isa battleground where you wear down opponents. Instead, “A good individual negotiation helps with the focuson the idea that bargaining isn’t a zero-sum game. Agood deal for one side 1 web of negotiation that follows behind,” says Lum. doesn’t necessarilymean a lesser deal for the other side. “You have to focus on building rapport and devel- oping a relationship. You can then have that per- Research the otherside’s position.You’ll be better prepared to negotiate ifyou son be an advocate.” understand what’sdriving the other team. Have the last few quartersleft them And don’t make the common mistake of revealing 2 feeling flush or frugal? Are theyfacing a deadline that makestime a major factor a chip on your shoulder when dealing with some- in negotiation? one from a bigger company. “When you’re a small business, you can get Stay flexible.Don’t go in with a rigid plan ofattackthat offersno wiggle room. intimidated by working with someone from a There can be surprisesin anynegotiationsand you should be prepared to much larger corporation,” Lum says. “You might respond. Some top negotiatorshave been compared to jazzgreatsfor their 3 be more aggressive than you realize and create a abilityto improvise on the spot. negative situation.” Lum suggests taking a cue from the way world- Considerthe otherside’s budget.The daysoflimitlesscash ended with the class athletes handle competition. “The best are dot.com bust ofa few yearsago. Controlling costsiseverything these days. able to be more relaxed when the stakes are high- 4 Be realisticabout the cost ofthe deal to your team and theirs. er,” he says. “You can’t let psychological barriers get in the way. Like a good athlete, a good nego- Manage expectations.You know more about your goodsand servicesthan your tiator has to stay in the moment.” customer does. Negotiationsmove more smoothlywhen you communicate the But he cautions that sometimes a little hard- realitiesofwhat you’re offering before haggling about the cost. 5 ball is necessary: “I think there are times when you can’t get Breaknegotiations into steps.It’seasier to negotiate a complexproject in away by holding hands and singing, ‘We are the stages. Start with a detailed proposal or feasibilitystudymayhelp smooth the World.’ There are instances when you have to be waywhen you get to negotiating implementation. Along the way, both sides 6 very assertive, and there are times to walk away develop levelsofknowledge and trust that can enhance long-term partnerships. from the table,” he says. • Involve yourentire staff.Your salespeople might be the prime moversin getting Fred Bayles ([email protected]) writes fre- a deal rolling, but almost everyone on your staffhasan impact on further quently about business topics. He is a Boston discussions. Encourage project managersand consultantsto communicate 7 University journalism professor and a former with clientsin waysthat help move dealsto their next phase. — F.B. national writer for The Associated Press and USA Today.
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> Solution Spotlights > Product Reviews > Partner Views > Channel News > Webcasts > And Much More! Visit RCPmag.com today! 1006rcp_SolSPot_47-51.v10 9/11/06 1:22 PM Page 47 SolutionSpotlight MICROSOFTVIRTUAL COMMERCE PC SERVER 2007
Open for E-Business—Today Microsoft Commerce Server 2007 can put a company online in a single day, but using the solution effectively requires a solid knowledge base. By Lafe Low
-commerce represents the biggest change in the way people shop since the introduction of the credit card. It has fundamentally changed the way companies do business. Today, the world is their Microsoft Commerce market. Not having a presence on the Web these days is akin to being closed on the busiest shopping day of the year. Server 2007 However, setting up an effective and efficient Web-commerce Microsoft Corp. application can seem just as daunting as building a brick-and- Release Date: August 2006 Emortar store from the ground up. Among the things to worry about are processing online transactions, controlling and tracking inventory, ensur- Price: Enterprise Edition, $19,999 per processor Standard Edition, $6,999 per processor ing that the site is up 24/7, and, of course, providing secure transactions. Microsoft’s Commerce Server 2007 (CS2007) can help your customers www.microsoft.com/commerceserver develop their own customized Web business applications without making huge investments of time or money. Long a solid workhorse in Microsoft’s stable of business server products, The starter site also makes a great sales tool for demonstrat- CS2007 represents the evolution of Site Server, Commerce Server 2000 ing the range of functions in CS2007. and Commerce Server 2002. This release brings new inventory capabili- As you and your customers delve deeper into CS2007 and ties, deeper integration with .NET 2.0 and support for 64-bit processors. start developing more elaborate e-commerce sites, you’ll There’s also a Microsoft Operations Manager Commerce Server 2007 find that the solution uses a modular approach that helps Management Pack and BizTalk adapters to help your customers integrate compartmentalize tasks and functions. It contains four CS2007 Web applications with their other business systems. management components: Customer and Orders, Catalog CS2007 can manage a variety of Web-commerce situations, including and Inventory, Marketing and Reports, and Analytics. consumer retail sales, OEM core product sales, business-to-business part- The Customer and Orders Manager gives customer service nerships and promotion and sale of online services. There are also scenar- representatives full access to historical customer information ios that combine direct consumer and business-to-business sales. to help them quickly and effectively resolve service issues. The Catalog and Inventory Manager maintains different types of Same-Day Service catalog structures, as well as virtual catalogs. The Marketing CS2007 is ready to roll right out of the box. It comes with a pre-built starter Manager helps to develop and drive e-commerce marketing site that can literally be up and running the same day. Your customers add campaigns and test the effectiveness of such efforts. the basics, such as their company contact information, product details, Finally, the business analytics features pull sales and Web price lists and logos, and they’re ready to go live. The starter site has all activity data directly from the CS2007 Web applications. This security protocols enabled and supports multiple languages and curren- helps your customers analyze and understand the way their cies. It’s a good way for your customers to get up and running right away customers are using their sites by studying browsing history while they fine-tune their Web commerce infrastructures and strategies. and purchasing patterns.
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SolutionSpotlight
CS2007 integrates tightly with SQL Server Reporting Services to gen- erate detailed reports, whether on a customized report format or using one of the pre-defined formats. It can use SQL’s lifecycle-management Spotlight Highlights functions such as authoring, scheduling, versioning, data snapshots, Key Features: access controls and rendering. ■ Comes with pre-built starter site for immediate use Web applications developed with CS2007 can include other advanced ■ Tight integration with business systems through BizTalk Server elements such as personalization, user targeting, purchase orders, prod- ■ Supports latest technologies like .NET 2.0 and 64-bit processors uct listings, product variations, virtual catalogs and virtual properties. Your customers can also build in content and customer targeting, adver- Competition: tisements, e-mail feedback campaigns, discount structures, coupons and ■ Dreamweaver 8 opportunities to up-sell and cross-sell. ■ IBM Rational Web Developer for WebSphere The Web applications your clients develop with CS2007 provide their Opportunities: online customers with Web-based self-service and order change man- ■ Sell along with BizTalk adapters to ease integration agement. Online customers can search for specific products, check on ■ Use pre-built site as sales demonstration tool the status of backordered items and see listings of items that are current- ■ Bundle with custom-built sites ly out of stock. They can also take actions such as splitting orders, using multiple shopping carts and building gift registries.
Under the Hood with ASP.NET applications. They’re also Web-service enabled, Managing CS2007 is relatively straightforward, especially for those who making management and updating easier. Web-service have experience with Microsoft’s other Windows Server System products. enabling also eases integration of CS2007 Web applications in CS2007 integrates with those products through a Microsoft Management service-oriented architectures (SOAs). Console (MMC) to centralize management functions. There’s also a Following are some other architectural factors that boost Microsoft Operations Manager 2005 Management Pack that lets your cus- performance: tomers use MOM’s management rules and real-time monitoring. ■ CS2007 can scale from a single-system to a full-fledged CS2007 uses BizTalk Adapters to connect through BizTalk Server Web farm, so it can grow as your customers’ business 2006 to integrate with internal applications and front-line ERP and CRM grows systems such as SAP and JD Edwards (now part of the Oracle line.) Using ■ Cluster support facilitates high availability and ensures BizTalk’s orchestration features helps your customers define their busi- uninterrupted operation of Web applications ness processes and apply them throughout their systems. ■ Site staging and replication help automate data and site Your customers can synchronize and track any live Order, Catalog, distribution across multiple environments, even across Inventory and Profile object through the system and throughout a transac- networks and behind firewalls tion’s lifecycle. Data for those four object types conform to industry stan- ■ New deployment and configuration tools help secure dard Web Simple Object Access Protocol (SOAP) and XML protocols. This commerce solutions helps facilitate sharing data with external partners. ■ Windows management tools such as MOM and MMC Securing online transactions is among the highest priorities for Web reduce server management and training requirements businesses. Your clients can build their CS2007 applications to support Secure Sockets Layer (SSL) and profile data encryption. This helps Competitive Landscape them protect passwords, credit card numbers and other sensitive cus- There are only a few real competitors to a high-level develop- tomer information. The Security Configuration Wizard also helps ment platform like CS2007, but those few are heavyweights. them to secure CS2007 from the start during initial deployment or Among the most significant competitors is Dreamweaver 8 make changes later. from Macromedia. This solution is available by itself or bun- CS2007 is based on ASP.NET 2.0, so you and your customers can use its dled with several other Web application development tools advanced Web design features such as Master Pages. These help stream- as part of Studio 8. There is also the IBM Rational Web line the design process with visual themes and Web site skins. All CS2007 Developer for WebSphere. Macromedia and IBM are formi- subsystems work through the Microsoft .NET API, which eases integration dable competitors, but if your customers’ infrastructure is
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Congratulations to Redmond Channel Partner magazine, winner in the category of BEST START-UP PUBLICATION, 2006 Jesse H. Neal National Business Journalism Awards 1006rcp_SolSPot_47-51.v10 9/11/06 1:22 PM Page 50
IBM’s Rational Web Developer for WebSphere Software is an Eclipse-based Java development environment for build- ing, testing and deploying Web applica- tions and Web services. The whole platform is optimized for IBM WebSphere software, but it does support multi-vendor develop- ment and runtime environments. For those newer to Web application development, there are several RAD tools and wizards to accelerate Web, Java and SOA development. Developers can short- en the Java learning curve with drag-and- drop interface components and database connectivity. There are also pre-built inter- operable Web services and SOAs for inte- grating business applications, as well as testing environments with a visual debug- ger for newly developed applications. With Rational Web Developer version 6.0.1, developers can use Enterprise The Commerce Server 2007 Web Report Manager gives your customers a view of Web activity on their sites by Generation Language to build new Web browser usage, domain requests and even time of day. services from scratch or enable existing applications as Web services. By develop- already built around Microsoft management tools, you can build ing this way, most of the need for lower level Java, WSDL, UDDI or on that fact as an advantage. XML coding is virtually eliminated. The latest version of Dreamweaver features new design and devel- opment tools, video support, more efficient workflows and support Marketing and Sales for the latest industry standards. Dreamweaver users can now inte- As always, you’ll find a plethora of resources on the Microsoft Web grate XML data within workflows, design with the new Zoom tool, site to learn more about CS2007. Some of the notable elements use the Code Collapse tool to focus on the code at hand and add include Webcasts of presentations and demonstrations of solu- Flash video. tions developed with CS2007, and extensive menu of help topics Adding video content to Web sites involves a relatively simple and the CS2007 Partner Software Development Kit (SDK). There’s process of dragging and dropping Flash Video into Dreamweaver 8. also a Commerce Server 2002 Feature Pack 1 Partner SDK. This type of editing applies to other elements as well. Developers can The help topics cover numerous elements of CS2007, including: point a Web page to an XML file or a URL of an XML feed and ■ Creating CS2007 Web applications, integrating CS2007 with Dreamweaver will “introspect” it to enable dragging and dropping other applications and extending its functionality appropriate fields onto the page. ■ Development and reference documentation about using An extensive community has grown up around Dreamweaver CS2007 as a development platform users. Being part of this community provides access to the ■ Deploying CS2007 Macromedia Developer Center, developer certification pro- ■ Staging CS2007 Web sites and data grams, training and seminars, user forums and independent ■ Administrating CS2007 systems and software operations community support sites. In addition, more than 800 free down- ■ Monitoring CS2007 sites loadable extensions are available through the Macromedia ■ Using CS2007 applications to manage catalogs, marketing Dreamweaver Exchange. Dreamweaver is sold by itself or as part campaigns, customers, orders and other transaction aspects of Studio 8, a bundle that includes the latest versions of ■ Concepts and tools for business users Dreamweaver, Flash Professional, Fireworks, Contribute and ■ Glossary of terms used in CS2007 FlashPaper. The CS2007 Partner SDK has source code and documentation
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SolutionSpotlight
you’ll need to customize the CS2007 tools like the Catalog The Final Word Manager, Marketing Manager, and Customer and Orders Manager. Online business models have evolved rapidly, especially with new Of course, you’ll need to check the terms of license to make sure technologies like Software as a Service (see “Get Ready for Software any customization and distribution you do with the SDK falls with- as a Service,” March 2006), Web 2.0 and SOA. CS2007 functions in the boundaries of your agreement. have evolved to keep pace, simplifying secure Web application devel- opment, consistently tracking data throughout the duration of a Extending CS2007 transaction, providing detailed reporting and supporting the most There are several independent companies that provide complemen- current tools and technologies. tary tools that extend CS2007 in a variety of ways. You may want to Getting a business up and running online is still a tall order. But incorporate some of these components into any custom solutions CS2007 can help your customers put up an efficient e-commerce site you’re developing, or refer your customers directly to these partners. that will work well with their existing business infrastructure, provide They fall into several categories: a full range of functions and be ready for business on the same day. • ■ Business analytics ■ Hardware Lafe Low([email protected]) is the executive editor of Redmond ■ Search technology and the Solution Spotlight editor for Redmond Channel Partner. ■ Systems integration services ■ Transactional services The full list of partners that develop components to build on Late-breaking information on CS2007 is on the most recent CS2007 is on the Microsoft Web site. The complete documenta- Readme at: http://go.microsoft.com/fwlink/?LinkId=57013 tion for CS2007 is also now online. The latest installation instructions are available at: http://go.microsoft.com/fwlink/?LinkId=57268
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RCPmag.com OCTOBER 2006 REDMOND CHANNEL PARTNER 51 1006rcp_Marketing_52_v.7 9/13/06 3:29 PM Page 52
marketing microsoft
BY M.H. “MAC” Build Your Business MCINTOSH for Less Through Marketing
ost of the fastest-growing Microsoft partners don’t rely solely on one-to-one sales contacts to grow their business. Why? It’s difficult to find effective salespeople, and often Wait, There’s More it takes too long for new salespeople to start showing a M The research I referenced earlier also showed that the average sales- favorable return on the company’s investment. person spent less than a fifth of his or her time meeting with new Instead, the more successful Microsoft partners leverage lower prospects. This works out to be approximately one day of every busi- cost-per-contact, one-to-many marketing tactics to address the ness week. When you consider vacations and other time off, that front end of the sales pipeline: prospecting and qualifying. Then works out to less than 50 days of new business development a year! they focus their more costly one-to-one in-person sales contacts on How many prospects do you think your salespeople can visit the end of the pipeline: the heavy lifting of doing demos, crafting during a given day? Unless their territory is limited to the immedi- proposals and closing sales. ate neighborhood, I’d say they’ll probably be able to schedule a If the initial steps in the sales process—prospecting and quali- maximum of four meetings a day. Add these numbers up and you’ll fying—can be effectively accomplished by using less costly one-to- find that your average salesperson can complete 200 in-person many marketing contacts, you’ll save your company real money and sales visits a year at most (50 days multiplied by four visits). free your salespeople to be more productive. This is true even if Divide the 200 visits by 5.1 (the average number of in-person more marketing contacts are needed to get the job done. sales calls required to close a sale, as mentioned earlier), and you’ll find that if they close 100 percent of the sales to prospects they visit, It Makes Dollars and Sense they’ll close a maximum of 40 sales a year. However, my experience Research on the cost of sales calls by Reed Business found that the says that the average close rates for Microsoft partners are closer to average cost of a business-to-business in-person sales call was $392 20 percent to 30 percent, meaning average salespeople will only in 2001 (and it’s probably higher now.) The same research said that close between eight and 12 sales from their 200 in-person sales calls! it took an average of 5.1 in-person sales calls to close a sale. So the How much more productive would they be if they only had to total cost of sales visits required to close an average B2B sale was make an average of three sales visits to close a qualified prospect that just a hair under $2,000. was generated for them by marketing? The answer is 40 percent more Even if your sales are large enough to justify this big productive at closing sales. expense, wouldn’t it be nice to keep some of that money as profit So instead of adding more salespeople to knock on more doors, instead? You can. Simply replace a couple of those expensive, in- use marketing to cost-effectively contact your prospects and fill the person sales calls with lower cost-per-contact marketing tactics sales pipeline with qualified leads. Doing so will result in more sales- such as direct mail, e-mail, telemarketing and pay-per- ready opportunities that your salespeople can turn into new business, click advertising. meaning greater sales revenue and profits for your company. • Do the math again replacing two of the $392 sales calls with five marketing contacts at $30 each for the prospecting and qual- Mac McIntosh ([email protected]) helps Microsoft ifying steps. The result? You’ve invested only $150 to complete Partners use marketing to drive more leads and sales. For more the first two steps that otherwise would have cost you $784 with information about Mac and his marketing consulting and training in-person sales calls. services, visit www.sales-lead-experts.com. PORTRAIT BY SCHNARE JILLIAN
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Why I joined the IAMCP…
"I knew Microsoft ® would be key to our companyís growth. Leveraging IAMCP helped us know how to achieve Gold status quickly and efficiently."
"Networking opportunities with the IAMCP have resulted in sales opportunities we would not have known about otherwise."
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All company names are registered trademarks or service marks of their respective companies. [email protected] 1006rcp_Selling_54_v.6 9/13/06 3:36 PM Page 54
selling microsoft
The 10 Traits Buyers BY KEN THORESON Seek in Sales Superstars
hat really separates the best salespeople from the rest of the pack? Our research shows that top performers not only understand each customer company—they under- 6. Address pain points. Top performers outdo the competition stand the person making the buying decisions as well. W by personalizing their presentations, showing how their solutions Most sales training courses emphasize the importance of address- help customers resolve specific business problems, achieve impor- ing the customer’s needs. They teach salespeople to explain how, for tant goals and generate impressive ROI. example, the Microsoft stack or a Dynamics solution can help achieve 7. Keep promises. Buyers keep track of what you say you’ll do key business goals. Those discussions are critical for making sales. and whether you actually do it. If you offer to send a white paper or But few training programs address how buyers view salespeo- list of references, follow through. And get it there when promised; ple as they’re presenting that information—knowledge that can be never request an extension. an equally powerful sales tool. 8. Avoid wasting time. As a salesperson, you’ve got the right to Our research indicates that, from the buyer’s point of view, the be persistent and to be respected, but not to be a pest. Dropping in best salespeople: unannounced because you were “in the neighborhood” falls into 1. Listen. Buyers want to deal with professionals who ask the the latter category; it’s also the mark of an amateur. Instead, sched- right questions and truly listen to the answers, people who can take ule your calls, have a stated objective for each meeting and be sure what they’ve heard and translate it into appropriate solutions. Want the time spent results in value for the customer. to boost your listening skills to top-performer level? Take notes, sum- 9. Serve as an information resource. Top-performing salespeople marize and restate what buyers tell you and—just as important— often provide customers with useful background materials, typical- listen when they confirm whether you’ve gotten it right. ly from reputable outside sources. Consider giving your buyers rele- 2. Tell the truth. I cringe when I hear salespeople tell customers or vant information from The Wall Street Journal, local business jour- prospects, “Let me be honest with you,” as if they haven’t been honest nals, industry magazines and technology newsletters. so far. If you don’t know the answer, don’t make it up. If you aren’t pro- 10. Make the buyer a hero. Top performers know what personal fessional enough to sell without lying, find a new profession. factors drive each buyer’s behavior, whether it’s ego, desire for a 3. Do more than push products. Of course, it’s vitally important bonus, the potential for promotion or some other factor. Do what’s for salespeople to know about the products they represent, but talk- necessary to make sure an important buyer regards a particular sale ing only about features and functions went out in the ’70s. Top per- as a personal win. formers focus on helping buyers achieve their business goals. One Long ago, someone told me the three key factors in sales are: way to do that: Videotape and watch your own sales presentation to Emotion, emotion, emotion. No question about it: If you recognize see from the buyer’s point of view. Are you helping or just selling? your buyers’ emotions, you’ll accelerate your sales. • 4. Know the customer’s business. Going after vertical markets has become a major emphasis for Microsoft in recent months. Stay abreast Ken Thoreson ([email protected]) is managing partner of of developments in your customers’ worlds. When prospects see that the Acumen Management Group Ltd., a North American consulting you’re familiar with their businesses and industries, that generates organization focused on improving sales management in growing trust and confidence—key ingredients in any successful sales formula. companies. Visit www.acumenmgmt.com for information and to view 5. Know what the customer’s clients need. See No. 4. free, Microsoft-related sales videos. PORTRAIT BY SCHNARE JILLIAN
54 REDMOND CHANNEL PARTNER OCTOBER 2006 RCPmag.com 1006rcp_AdIndex_55.v2 9/11/06 5:32 PM Page 55
AdvertisingSales RCPResources
AD INDEX Advertiser Page URL Autotask 5 www.autotask.com Barracuda Networks 16 www.barracudanetworks.com Breece Hill 15 www.breecehill.com CCH Tax & Accounting 2 www.cch.com Citrix Systems, Inc. 8 www.citrix.com Diskeeper Corp. 51 www.diskeeper.com FrontRange Solutions USA Inc. 11 www.frontrange.com Matt Morollo GRISOFT Inc. 21 www.grisoft.com Associate Publisher 508-532-1418 phone Hosting.com C3 www.hosting.com 508-875-6622 fax IBM Corp. 19 www.ibm.com [email protected] Intel Corp. C2,1 www.intel.com Int’l Association of Microsoft Certified Partners 53 www.iamcp.com West/Mid West East Raritan Computer Inc. 7 www.raritan.com Dan LaBianca JD Holzgrefe Redmond Channel Partner 23,41,46,49 www.rcpmag.com Director of Advertising, West Director of Advertising, East Sunbelt Software 13 www.sunbelt-software.com 818-674-3417 tel 804-752-7800 tel Trend Micro Inc. C4 www.trendmicro.com 818-734-1528 fax 253-595-1976 fax [email protected] [email protected] EDITORIAL INDEX Company Page URL Accordence Inc. 42 www.accordence.com Adobe Systems Inc. 47 www.adobe.com Sales IT Certification AdvancedMD Software Inc. 9 www.advancedmd.com Bruce Halldorson & Training – USA, Europe Altiris Inc. 24 www.altiris.com Western Regional Sales Manager Al Tiano Autobytel Inc. 24 www.autobytel.com CA, OR, WA Advertising Sales Manager CA 12 www.ca.com 209-473-2202 tel 818-734-1520 ext. 190 phone Cadre5 LLC 30 www.cadre5.com 209-473-2212 fax 818-734-1529 fax Cisco Systems Inc. 14 www.cisco.com [email protected] [email protected] Computer Troubleshooters Pty. Ltd. 12 www.comptroub.com/us Danna Vedder Production Digital River Inc. 12 www.digitalriver.com Espero Inc. 24 www.esperoinc.com Microsoft Account Manager Kelly Ann Mundy 253-514-8015 tel Production Coordinator Fullscope Inc. 30 www.fullscope.com 775-514-0350 fax 818-734-1520 ext. 164 phone Geeks on Call America Inc. 12 www.geeksoncall.com [email protected] 818-734-1528 fax Google 56 www.google.com [email protected] IBM Corp. 47 www.ibm.com Tanya Egenolf International Association Advertising Sales Associate of Microsoft Certified Partners 9 www.iamcp.com 760-722-5494 phone 760-722-5495 fax Intuit Inc. 56 www.inuit.com [email protected] LaGarde Inc. 24 www.storefront.com Netscape 56 www.netscape.com Northwest Computer Support Inc. 17 www.comptroub.com/us OmniVue Business Solutions LLC 30 www.omnivue.net Oracle Corp. 30 www.oracle.com Reproductions in whole or part prohibited Corporate Headquarters: Panorama Software Ltd. 30 www.panoramasoftware.com 1105 Media except by written permission. Mail requests 9121 Oakdale Ave., Suite 101, Chatsworth, CA to “Permissions Editor,” c/o RCP magazine, Premier Knowledge Solutions Inc. 36 http://premierknowledgesolutions.com 91311 www.1105media.com 16261 Laguna Canyon Road, Ste. 130, QuickStart Intelligence Inc. 42 www.quickstart.com Irvine, CA 92618. Resolute Inc. 30 www.resolutecorp.com Media Kits: Direct your Media Kit requests to ScriptLogic Corp. 17 www.scriptlogic.com Matt Morollo, associate publisher, The information in this magazine has not Sendmail Inc. 22 www.sendmail.com 508-532-1418 (phone), 508-875-6622 (fax), undergone any formal testing by 1105 SMB Nation 36 www.smbnation.com [email protected] Media, Inc. and is distributed without any Solutions Consulting Group Inc. 42 www.scg.net warranty expressed or implied. Symantec Corp. 24 www.symantec.com Reprints: For all editorial and advertising Implementation or use of any information reprints of 100 copies or more, and digital contained herein is the reader’s sole Systemgroup Inc. 42 www.systemgroup.com (Web-based) reprints, contact PARS responsibility. While the information has vSync Corp. 36 www.vsync.com International, Phone 212-221-9595, been review for accuracy, there is not guar- e-mail: [email protected], Web: antee that the same or similar results may be www.magreprints.com/QuickQuote.asp achieved in all environments. Technical inaccuracies may result from printing errors sent to qualifying subscribers. Annual 847-763-9560 for International, fax 847- List Rentals: To rent this publication’s e-mail and/or new developments in the industry. subscription rates for non-qualified 763-9564. or postal mailing list, please contact our list subscribers are: U.S. $39.95 (U.S. funds); manager Worldata: Phone: 800-331-8102 Redmond Channel Partner (ISSN 1556-2727) Canada/Mexico $54.95; outside North POSTMASTER: Send address changes to E-mail: [email protected] is published monthly by 1105 Media, Inc., America $64.95. Subscription inquiries, Redmond Channel Partner, P.O. Box 2166, Web site: www.worldata.com/101com 9121 Oakdale Avenue, Ste. 101, Chatsworth, back issue requests, and address Skokie, IL 60076-9282. Canada Publications Postal Address: 3000 N. Military Trail, CA 91311. Application to Mail at Periodical changes: Mail to: Redmond Channel Mail Agreement No: 40039410. Return Boca Raton, FL 33431-6375 Postage Rates is Pending at Chatsworth, CA Partner, P.O. 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RCPmag.com OCTOBER 2006 REDMOND CHANNEL PARTNER 55 1006rcp_Directions_v.5 9/13/06 3:43 PM Page 56
directions
Partners: The New BY PAUL DEGROOT Distribution Vehicle
or all the pain that Microsoft’s efforts to overwhelm Netscape eventually caused the company, those efforts also led to the company discovering one of its greatest strengths. F we could do if we could get 380,000 companies all around the world As the Findings of Fact from the antitrust trial recount, Microsoft heading in the same direction at the same time.” That’s an over- realized that simple parity with Netscape was not enough. Jim Allchin, whelming presence in the IT marketplace. leader of the Windows team, told another executive in December As exciting as this is for Microsoft, many partners may not be 1996 that he did not understand how Microsoft’s browser would comfortable in this role. Many, for example, see themselves as advo- win, even if Internet Explorer was as good as Netscape. The one that cates for their customers—not for Microsoft. Others are focused on would win, Allchin said, was the one that already had 80 percent of building their own businesses, and Microsoft is just the platform the market—Netscape. into which they most often plug their own products or technologies. Allchin argued that Microsoft had to tie IE into Windows, While Microsoft is focused on Windows Vista and Office 2007, Microsoft’s huge asset. Further research led to Microsoft’s famous with occasional sideways looks at Google, those arguably aren’t big stunning insight: Microsoft could make users switch away from priorities for many partners. For every partner I’ve heard sing the Netscape by getting them to upgrade to Windows 98. As people praises of Vista, I’ve heard another groaning about the pain of an OS upgraded, they would already have IE bundled on their computer upgrade, particularly if they’re going to have to adapt their existing and would have no need for another browser, such as Netscape. code to User Account Control, SQL Express (instead of MSDE, which Microsoft’s greatest strength is this: By putting a new applica- won’t be supported by Vista), the Aero interface and other signifi- tion on the Windows distribution disks that are shipped to OEMs cant changes. Many partners won’t realize much net benefit from around the world, Microsoft can put more copies of a new applica- the work they do to adapt. tion on more computers faster and cheaper than anyone. Without Nevertheless, partners need to take two realities into account. advertising, downloads or payment, Microsoft can get a new appli- Yes, you can expect to see Microsoft pushing its priorities more cation on about 220 million PCs a year. openly and directly onto partners, whether they like it or not. And What does that have to do with partners? Plenty. I think part- yes, you can also expect Microsoft to continue to offer one of the ners are Microsoft’s new distribution vehicle. best partner programs in the business, one that will be replete with The company now has 380,000 official partners. To put that in a lot of valuable aids that partners can tap into. perspective, the next largest vendor partner program, according to a But I’d recommend that partners stay sharp in defining what 2005 IDC study, belongs to Intuit, with 25,000 members. Now, I’ll their own long-term interests are, and making sure that their partic- agree that many of Microsoft’s partners aren’t big, serious players, ipation in Microsoft’s partner program and sales campaigns is a but if we dismiss the 350,000 registered partners (and they shouldn’t genuinely strategic activity for them. The future can be a win for all be dismissed), we’re still left with 30,000 Certified and Gold both Microsoft and its partners—just make sure you know what Certified partners. Furthermore, IDC rated Microsoft’s program the winning looks like for you. • best among software vendors. My reading of Microsoft’s strategy at this point is that in the last Paul DeGroot ([email protected]) is an analyst year (maybe about the time Kevin Turner came on board as chief with Directions on Microsoft, an independent research firm focused operating officer) a light went on up in Redmond: “Just think what exclusively on Microsoft strategies and technology. PORTRAIT BY SCHNARE JILLIAN
56 REDMOND CHANNEL PARTNER OCTOBER 2006 RCPmag.com Project2 8/8/06 11:36 AM Page 1
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