VOLUME 6 ✱ NUMBER 11 Top inWindows8 8Opportunities those partners movefast.those partners to learning—assuming development tosolution type ofpartner—from foropportunities every promises disruptive The nextMicrosoftOS Eyebrow: TheSecrecyofStevenSinofsky toJuniperNetworks ✱ Cloud Skepticism ✱ Re-Born Social ✱ DynamicsMPN Changes ✱ PLUS

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18 DEPARTMENTS 8 Channel Report SMB: Cloud Busters ...... 8 POSTSCRIPT: Can Meg Whitman Turn HP Around? ...... 9 ROADMAP: SharePoint Online Update on Tap ...... 12 SHAREPOINT: Forrester Poll IDs Top Third-Party Apps ...... 12

ISVS: Microsoft Makes the Case for Windows Azure ...... 14 HYBRID: Symantec Pitches Backing Up into a Private Cloud ...... 14 MOBILE: 10 ‘Mango’ Features for Microsoft Partners .... 16 CAREERS: The Executive March from Microsoft to ...... 17

COLUMNS ON GROWTH: Mike Harvath Secrets to M&A Success ...... 37 CHANNEL CALL: Keith Lubner The ABCs of a Productive Channel ...... 38 CHANNELING THE CLOUD: Jeff rey Schwartz FEATURES Partners Need a Strategic Plan for Moving to the Cloud ...... 40 18 Top 8 Partner Opportunities in ‘’ The latest Microsoft OS promises disruptive opportunities for every type of partner—from developers to solution providers to those SPECIAL PULLOUT SECTION who provide training—assuming they move fast.

26 Strength in Numbers Katalys Group formed to help small Dynamics partners fi nd a creative way to meet the Microsoft Partner Network requirements by banding together.

32 The Salesforce.com Enterprise PARTNER’S GUIDE TO SQL SERVER 2012 Social Revolution The new release is on the horizon after a year The company that defi ned cloud-based Software as a Service of anticipation and preparations by Microsoft is now looking to change the way workers collaborate, partners to migrate their customers. communicate and service their customers. By Pedro Pereira

IN EVERY ISSUE 4 RCPmag.com 6 Channel Watch > RCPmag.com NOVEMBER 2011 Redmond Channel Partner 3 What’s ChannelRedmond Partner

RCPMAG.COM + NOVEMBER 2011 + VOLUME 6 + NUMBER 11

EDITORIAL STAFF OnLine Vice President, Editorial Director Doug Barney Editor in Chief Scott Bekker Executive Editor Jeff rey Schwartz @RCPmag.com Managing Editor Wendy Gonchar Associate Managing Editor Katrina Carrasco

ART STAFF EXCLUSIVELY ONLINE BLOGS Creative Director Scott Shultz Senior Graphic Designer Joshua Gould RCP MAGAZINE ON LINKEDIN Be sure to join the Microsoft PRODUCTION Director, Print Production Jenny Hernandez-Asandas Partner Group for Redmond Production Coordinator Charles Johnson Channel Partner magazine. Join a RCPU current discussion or start your own Stay tuned to channel ONLINE/DIGITAL MEDIA and have your questions answered news with the Redmond Site Editor Gladys Rama by fellow readers and RCP editors. Editor, RCP Update Lee Pender linkd.in/mDe63s Channel Partner Update Director, Online Media Becky Nagel e-mail newsletter, written Online News Editor Kurt Mackie SQL SERVER 2012 by Lee Pender. Associate Web Editor Chris Paoli “Denali” is offi cially dropped as a code Site Administrator Shane Lee name for the next version of SQL Designer Rodrigo Muñoz ON SAYING GOOD-BYE TO STEVE JOBS Server. It will now be known as SQL I remember the Apple IIe probably more fondly than I ADVERTISING AND SALES Server 2012, as announced during remember bygone pets and maybe even a few old friends. Associate Publisher Dan LaBianca the PASS Summit that took place in Say what you will about that, but I think of it the way some Microsoft Account Manager Danna Vedder Seattle in October. other folks think of a fi rst car or a fi rst baseball glove. It sticks Sales Manager Al Tiano Also announced at the Summit: in my memory. And that’s because of Steve Jobs. He created Advertising Sales Associate Tanya Egenolf Other code names associated it, along with much of computing as we know it today. The with the community technology funny thing is that most people today will write about iPads preview are being dropped, includ- and iPods and Macs, Jobs’ most notable accomplishments. President Henry Allain ing “Juneau” and “Crescent.” And that makes sense. Vice President, Publishing Matt Morollo RCPmag.com/PenderA1111 Be sure to get all the details Director, Marketing Michele Imgrund Online Marketing Director Tracy Cook about SQL Server 2012. ON GETTING TO THE BOTTOM OF WINDOWS 8 RCPmag.com/Mackie1111 This is post-Gates, 21st-century Microsoft at its very worst. Oh, sure, Windows 8 ought to be a great OS. The Metro FREE CLOUD REPORT President & Neal Vitale interface looks fantastic, truly revolutionary and extremely Chief Executive Offi cer NEWSLETTER attractive. And we’re sure that Windows 8 classic will build on Senior Vice President & Richard Vitale Keep up-to-date with the latest and the stability and success of . This isn’t Vista. Vista Chief Financial Offi cer greatest in cloud computing with was a disaster of a product that actually had some half-decent Executive Vice President Michael J. Valenti our free eNewsletter. RCPmag.com/ marketing and crystal-clear messaging. Newlsetter RCPmag.com/PenderB1111 Vice President, Christopher M. Coates Finance & Administration Vice President, Erik A. Lindgren Information Technology BY THE NUMBERS & Application Development Vice President, Event Operations David F. Myers

Chairman of the Board Jeff rey S. Klein Windows 7 Market Share Gartner Inc. in August predicted Reaching the Staff the percentage of the global % Staff may be reached via e-mail, telephone, fax or mail. 42 A list of editors and contact information is also available online at PC installed base running the RCPmag.com. Windows 7 OS by year’s end. E-mail: To e-mail any member of the staff , please use the following form: [email protected] Framingham Offi ce (weekdays, 9:00 a.m. – 5:00 p.m. ET) SOURCE: GARTNER INC. Telephone 508-875-6644; Fax 508-875-6633 600 Worcester Road, Suite 204, Framingham, MA 01702 Irvine Offi ce (weekdays, 9:00 a.m. – 5:00 p.m. PT) Redmond Channel Partner (ISSN 1556-2727) is published monthly by 1105 Media, Inc., 9201 Oakdale Avenue, Ste. 101, Chatsworth, CA Telephone 949-265-1520; Fax 949-265-1528 91311. Periodicals postage paid at Chatsworth, CA 91311-9998, and at additional mailing offices. Complimentary subscriptions are sent 4 Venture, Suite 150, Irvine, CA 92618 to qualifying subscribers. Annual subscription rates payable in U.S. funds for non-qualified subscribers are: U.S. $39.95, International Corporate Offi ce (weekdays, 8:30 a.m. – 5:30 p.m. PT) $64.95. Annual digital subscription rates payable in U.S. funds for non-qualified subscribers are: U.S. $39.95, International $39.95. Telephone 818-814-5200; Fax 818-734-1522 Subscription inquiries, back issue requests, and address changes: Mail to: Redmond Channel Partner, P.O. Box 2166, Skokie, IL 60076-2872, 9201 Oakdale Avenue, Suite 101, Chatsworth, CA 91311 email [email protected] or call 866-293-3194 for U.S. & Canada; 847- 763-9560 for International, fax 847-763-9564. POSTMASTER: Send address changes to Redmond Channel Partner, P.O. Box 2166, Skokie, IL 60076-9282. Canada Publications Redmond Channel Partner Mail Agreement No: 40612608. Return Undeliverable Canadian Addresses to Circulation Dept. or IMS/NJ. Attn: Returns, 310 The opinions expressed within the articles and other contents Paterson Plank Road, Carlstadt, NJ 07072. Copyright Statement: © Copyright 2011 by 1105 Media, Inc. All rights reserved. Printed herein do not necessarily express those of the publisher. in the U.S.A. Reproductions in whole or part prohibited except by written permission. Mail requests to “Permissions Editor,” c/o Redmond Channel Partner, 16261 Laguna Canyon Road, Ste. 130, Irvine, CA 92618. Legal Disclaimer: The information in this magazine has not undergone any formal testing by 1105 Media, Inc. and is distributed without any warranty expressed or implied. Implementation or use of any information contained herein is the reader’s sole responsibility. While the information has been reviewed for accuracy, there is no guarantee that the same or similar results may be achieved in all environments. Technical inaccuracies may result from printing errors and/or new developments in the industry. Corporate Address: 1105 Media, 9201 Oakdale Ave. Ste 101, Chatsworth, CA 91311 www.1105media.com. Media Kits: Direct your Media Kit requests to Dan LaBianca, Associate Publisher, 972-687-6702 (phone), 972-687-6799 (fax), [email protected]. Reprints: For single article reprints (in minimum quantities of 250-500), e-prints, plaques and posters contact: PARS International Phone: 212-221-9595. E-mail: [email protected]. www.magreprints.com/QuickQuote.asp. List Rental: This publication’s subscriber list, as well as other lists from 1105 Media, Inc., is available for rental. For more information, please contact our list manager, Merit Direct. Phone: 914-368-1000; E-mail: [email protected]; Web: meritdirect.com/1105.

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The Secrecy of Steven Sinofsky BY SCOTT BEKKER

teven Sinofsky is notoriously secretive. Among senior Microsoft executives, he’s known for his ability to keep projects quiet and carefully calibrate the release of information.

Message control is a critical skill for the president of the Windows 8 is a diff erent animal. and Windows Live Division. Sinofsky’s While early demos show it using less PC secrecy helped fuel the excitement around the “Windows 8” resources than Windows 7, Windows unveilings in May and June and again at the BUILD show in 8 is getting into entirely new hardware SSeptember. (See “Top 8 Partner Opportunities in ‘Windows 8,’” p. categories with a new platform partner 18, for key opportunities in Windows 8 for partners.) in ARM. At the same time that Microsoft Sinofsky provided a revealing statement about his philosophy in is “reimagining” Windows, OEM partners the inaugural posting on the Building Windows 8 blog on Aug. 15: must reimagine the hardware beneath it. “We’ve certainly learned lessons over the years about the perils of Early signs were troubling with Intel talking about features before we have a solid understanding of our and a few OEMs engaging in public snip- ability to execute.” ing early in 2011 about the diff erences in It’s a veiled reference to the /Longhorn project, application compatibility for Windows 8 in which major features, such as WinFS, were promoted and PCs and tablets. Microsoft’s public state- then pulled, wasting OEM partners’ and developers’ precious ments at the time did nothing to clarify pre-release attention. Part of the reason Windows 7 has been such the public spat in the usually clubby a success is that Sinofsky was able to keep that project’s scope fairly atmosphere among strategic technology limited and controlled the pre-release messaging to prevent the partners. ecosystem from having its time wasted. On the other hand, Microsoft showed There was another huge problem during the Windows Vista its ability to work closely with Samsung time frame, though, and that was how long it took OEMs to fi nd in secret to deliver the surprise tablets out what the OS hardware requirements would be. Much of that running the Windows 8 developers confusion stemmed from Microsoft’s internal struggles to fi nalize preview for BUILD attendees. the major feature set. Nonetheless, Sinofsky wasn’t truly tested Microsoft has opened the infor- on that issue with Windows 7. The OS was designed to run on mational fl oodgates lately, with the the same hardware as Windows Vista, making coordination with Building Windows 8 blog as well as at OEMs far less critical. BUILD. Now that the main elements seem locked down, will Sinofsky prove able to switch gears and share information with hardware partners freely enough to allow their creativity to run off in productive directions? • PHOTOGRAPH BY KATHERINE LAMBERT KATHERINE BY PHOTOGRAPH

6 Redmond Channel Partner NOVEMBER 2011 RCPmag.com Building the engines of a Smarter Planet: “IBM makes a constant effort to help the channel be more profitable.” On a smarter planet, IBM Business Partners are capitalizing on more opportunities than ever before. For Sirius Computer Solutions, Inc., in San Antonio, Texas, that means being able to approach potential clients with solutions for entire business problems rather than just selling individual products. With the help of IBM, Sirius provides cloud solutions that transform a midsize company’s fixed costs into variable costs, enabling flexible and more productive IT. IBM Business Partners can take advantage of advanced training and certifications that are designed to uniquely position them ahead of industry peers. Sirius CTO, Phil Sauvageau, adds: “The support we get from IBM is second to none.” See how Phil Sauvageau and other Business Partners are turning new opportunity into profitability — watch the IBM Business Partner video series at ibm.com/partnerworld/engines Midsize businesses are the engines of a Smarter Planet.

Share your expertise: facebook.com/MidmarketIBM .com/MidmarketIBM red in many jurisdictions worldwide. Other product and servicered in many jurisdictions worldwide. names chines Corp., registe chines Corp., IBM, the IBM logo, ibm.com, Smarter Business Ma trademarks of International Planet and the planet icon are ibm.com, the IBM logo, IBM, might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the Web at www.ibm.com/legal/copytrade.shtml.2011. Business Machines Corporation © International Web on the A current list of IBM trademarks is available might be trademarks of IBM or other companies. TRENDS ISSUES Channel ANALYSIS REPORT November 2011

{SMB} “Less than half our guys are excited about cloud,” Brelsford says. “It’s a huge cultural divide.” That’s a far cry from the unabashed cloud boosterism voiced by Microsoft speakers like Maggie Chan Jones, director, Cloud Services and Offi ce 365 in the Microsoft U.S. Marketing and Operations Group. Launched in June, Offi ce 365 is the latest iteration of the Microsoft online collaboration and productivity suite. According to Jones during a keynote delivered the evening before the conference’s offi cial opening, demand for the new product is running strong. “The momentum has just been great,” she said. Doug Fraser, a guest speaker who joined Jones on stage, backed that assertion. Fraser is U.S. Microsoft alliance director and west region sales director for CloudStrategies LLC, a cloud solution provider in Cedar Knolls, N.J. Offi ce 365 is easy to deploy and upgrade, he noted, and its recurring pay-as-you-go fee structure turns software from a capital expense into an operational one. “That part really appeals to customers,” Fraser said. Cloud Busters For the moment, however, most SMB Enthusiasm for cloud computing was weak among attendees of this year’s Nation attendees are still making up their SMB Nation Fall conference. By Rich Freeman minds about Offi ce 365. Sessions concern- ing the solution drew large and attentive icrosoft is famously “all in” on cloud computing. Is the same crowds, but few in those audiences were true of its partners in the small and midsize business (SMB) actively evaluating the product. market? So far as attendees of the ninth annual SMB Nation At least one partner who’s selling Fall conference are concerned, maybe not so much. Offi ce 365, meanwhile, is having trouble Held Sept. 30 to Oct. 2 in Las Vegas, SMB Nation caters to overcoming his clients’ security concerns. Mthe thousands of mostly smaller IT providers who serve companies with a few to “When it comes to productivity tools, a few dozen employees. While last year’s show was packed with sessions about they still want to have the data in their building a cloud service practice, this year’s agenda leaned more heavily toward own hands,” says James Wright, an IT technical content about conventional, on-premises infrastructure solutions. consultant from Jackson, Miss. That change stemmed from a poll of potential conferencegoers indicating tepid Enthusiasm was stronger among interest in cloud-related topics, according to Harry Brelsford, founder and conferencegoers for Windows Small chairman of SMB Nation Inc., the Bainbridge Island, Wash.-based company that Business Server (SBS) 2011 Essentials, hosts SMB Nation. which combines on-site backup and fi le- SHUTTERSTOCK/RCP STAFF

8 Redmond Channel Partner NOVEMBER 2011 RCPmag.com

sharing components with cloud-hosted e-mail and collaboration solutions. Based on a show of hands at multiple sessions, most SMB Nation attendees have successfully deployed that product, {Postscript} available since March, at least once. Adoption would probably be even stron- ger, presenter Jeff Middleton stated, if Can Meg more SMBs were open to replacing their ancient implementations of SBS 2003. Whitman Turn “Damn thing sticks like it’s glued to the HP Around? fl oor,” said Middleton, who operates SBSmigration.com, a Web site off ering After shaking the tech industry with advice and tools for performing strategy shifts, HP also shook up SBS upgrades. the executive suite—jettisoning Leo A similar dynamic helps explain Apotheker for Whitman, an HP board weak initial demand among SMBs member and eBay vet. for devices running Windows Phone, By Jeffrey Schwartz according to Ed Roberts, president and CEO of Lethos Information Just after last month’s Redmond Channel ware vendor Autonomy. On the investor Technologies, an IT consulting fi rm Partner cover story, “What’s Going on call, Whitman said while she will review with offi ces across the western U.S. with HP?” went to press, the axe fell at the strategy, she is on board with it. During a session about developing Hewlett-Packard Co. “I’ll step back and take a hard look at Windows Phone apps, Roberts noted As reported on RCPmag.com, the this, but from what I know now, I think that many potential buyers are trapped company’s board of directors fi red CEO the strategy is right, the initiatives that in mobile agreements that preclude Leo Apotheker, replacing him with we undertook on Aug. 18 are right, and them from switching handsets. “Even former eBay Inc. chief Meg Whitman, I’ll dive in and have a more informed Microsoft employees have to wait until with Ray Lane becoming executive point of view for you, probably at our their contract is up to take advantage chairman. next earnings call,” Whitman said. Later, of the free Microsoft phone,” he said. “We’re fortunate to have someone of Whitman told Reuters that the goal was For his part, Brelsford is more Meg’s caliber and experience to step to have a decision on whether or not concerned these days about a longer- up and lead HP,” said Lane, speaking to spin off the HP PC group by the end term issue: The greying of the SMB on an investor webcast announcing the of October. HP last month closed the channel. “You go to some of the events shakeup. Whitman, who last year ran Autonomy acquisition. and it’s older guys,” he says. “Our unsuccessfully for governor of California, “Meg Whitman, former eBay CEO, is a people are aging, retiring, even dying.” joined HP’s board back in January. not an obvious choice, especially given As a result, recruiting the next Indeed, the criticism of Apotheker her primarily consumer and Web busi- generation of SMB partners through appeared to come more from his inability ness experience,” said Forrester Research outreach eff orts at technical acad- to communicate HP’s strategy than the Inc. analyst Frank Gillett in a blog post. emies and other places where young strategy itself. In one fell swoop in “But she brings strong Silicon Valley roots, techies gather is among his top priori- August, Apotheker had announced that something lacking in HP’s recent CEOs, ties for the coming year. In addition to HP was considering the spinoff of its PC which should help a lot with infusing conferences like SMB Nation business, had shut down its webOS-based injecting new energy into HP.” • with fresh blood, Brelsford observes, tablet and smartphone business, and perhaps those newcomers will also announced the controversial $10.3 prove a little more willing to embrace billion deal to acquire enterprise soft- Jeff rey Schwartz is executive editor of RCP. the cloud than their aging forebears. •

Rich Freeman is a Seattle, Wash.-based freelance writer who covers business and technology. He can be reached at Visit RCPmag.com for daily news updates [email protected]. WIKIMEDIA

RCPmag.com NOVEMBER 2011 Redmond Channel Partner 9 SmartStyle Computing Delivers Reliable Private Cloud Solution in Today’s IT Community

Thomas O’Brien COO

Company: Washington Square Associates Inc., Stafford, VA Web Site: www.washsq.com Washington Square Business Challenge: Develop cost-effective public cloud solutions, out of a new building Associates Eyes Profitable location, that offer small business customers concerned with security of their data and Future By Providing provide a reliable IT infrastructure. Solution: Zenith Infotech’s SmartStyle Reliable Infrastructure private cloud computing platform provided solid reliability and predictable pricing with with Predictable Pricing equipment hosted at the client's site instead of in an expensive facility. SmartStyle also through SmartStyle assisted in freeing clients from dependence on faceless third-party vendors. “To date we’ve successfully deployed Results: To date, Washington Square Associates has successfully deployed SmartStyle for two customers and signed SmartStyle for two customers and signed agreements with three more, so we’re off agreements with three additional clients. With a great pace set, Washington Square to a strong start. and there’s much more to Associates’ current projections show that come. if my current projections prove SmartStyle will help double monthly recurring revenue by the end of the first correct, by the end of the first quarter of quarter of 2012. 2012, SmartStyle will have helped us double our monthly recurring revenue.” Maintenance for Servers and Desktops: – Thomas O’Brien, COO, Washington Square Associates Inc. A revolutionary business continuity application, SmartStyle MirrorCloud brings affordable protection from data It sometimes seems like you can't open a magazine these days loss and system failure to a private cloud without reading about cloud computing. What surprises me solution with: about all those articles, though, is how often they gloss over the • Continuous data mirroring difference between public clouds and private clouds. As far as • Failover virtualization we're concerned, the difference is huge. • Live bare metal restore • Granular exchange recovery As it happens, we’ve been delivering public cloud solutions, in the • Off-site transfer form of co-location and hosted infrastructure services, out of our • Expandable storage own data center for the last five years. It’s a relatively small part of our business, but has helped some of our clients improve reliability and reduce technology spending. That’s ultimately why we got into managed services in the first place. For too many of our customers, IT was a monster with a bottomless appetite for money. Our goal was to tame the technology beast for them by delivering high availability at consistent, predictable rates. Continued on back

www.zenithinfotech.com ington Square_back_111017.ai 1 10/17/11 4:20 PM

But there were problems with our Better yet, since SmartStyle is a private easy to configure. In fact, it took one public cloud offerings right from the cloud solution, it would free clients from person here working alone just four start. For one, many of our customers dependence on faceless third-party hours to stand up our first SmartStyle worried about the security of their data. vendors. As Steve Thomas, our senior test unit. And that was before he took In addition, building and maintaining sales engineer, likes to tell customers, Zenith’s excellent online training. These our public cloud infrastructure was the difference between public and days the setup process takes him more expensive and seemingly growing private cloud computing is sort of like like two hours. more so all the time. the difference between public and private transportation. Taking public To date we've successfully deployed The real tipping point, however, came transportation means riding along with SmartStyle for two customers and when we decided to move into new anyone and everyone willing to pay the signed agreements with three more, office space. Our old location had fare and giving up all control over where so we're off to a strong start. And redundant power and Internet you go and how fast you get there. there's much more to come. If my connectivity. Our new building didn’t, With private transportation, you’re in current projections prove correct, by and to implement that ourselves complete control of your destination, the end of the first quarter of 2012, would have cost us about $200,000. We route, and speed—and can listen to SmartStyle will have helped us double never saw hosting as a core part of our whatever you want on the stereo! our monthly recurring revenue. business, so investing that kind of capital just didn't make sense. Secure, Scalable, and Flexible It’s numbers like those that explain why I strongly advise everyone in the Driving Versus Riding It helped enormously, of course, that managed services world to get going SmartStyle is made by Zenith. We've with cloud computing now. It’s easier That's roughly when we discovered been using their managed services Zenith Infotech's Smart-Style private than you think. Research your options, software since we first became an MSP, choose some products to resell, and cloud computing platform. Actually it and have always found it to be an was David Back, my senior network roll out some offerings. The cloud is the extremely dependable and capable future. You can't run away from it. engineer, who first heard about it. He solution that's far more cost-effective attended a Zenith seminar and came than the other options out there. Next Steps back so excited that he spent the next We love working with the people at two hours in front of a white board Zenith too. Getting help from someone To learn more about partnering with showing me why SmartStyle was at the giant hardware and software Zenith Infotech,visit their home page exactly what we needed. vendors we partner with can be at www.zenithinfotech.com and click challenging. Zenith’s technicians have “Partner Programs.” It didn’t take me long to see what he taken the time to develop relationships was so enthusiastic about. Here was a with us, and they answer our questions way to deliver solid reliability and promptly. What’s more, the marketing predictable pricing with equipment support Zenith provides is outstanding. hosted at the client's site instead of in The amount of unbranded collateral an expensive facility of our own. Plus, we can download from their partner Learn More! SmartStyle keeps data safely behind portal is practically endless. Get the free mobile app at http://gettag.mobi each client’s firewall, so even customers in tightly regulated industries like To top it all off, SmartStyle is an healthcare and banking wouldn’t have impressively secure, scalable, and to worry about security. flexible solution that's surprisingly

This case study is for informational purposes only. Zenith Infotech makes no warranties, expressed or implied. © 2011 Zenith Infotech • 1011 Washington Square Associates Inc. www.zenithinfotech.com CR Coming soon: Microsoft Partner Network @ One Year

{Roadmap}

SharePoint Online Update on Tap {SharePoint} During the company’s SharePoint Conference, Microsoft promises the next version to come before year’s end. By Gladys Rama Forrester Poll IDs Top Microsoft is close to finished with an In all, Spataro said there have been more update to SharePoint Online and will than 125 million SharePoint licenses sold Third-Party Apps refresh the cloud product and Office to more than 65,000 customers world- 365 component by year’s end. wide, including 80 percent of Fortune In a poll of 510 IT decision makers involved The company discussed the roadmap 500 companies. with Microsoft SharePoint, Forrester during the SharePoint Conference 2011 Teper followed Spataro onstage to give Research Inc. identifi ed the most common in Anaheim, Calif., in early October. the audience of roughly 7,500 people an third-party apps used with the Microsoft During a show keynote, Jeff Teper, overview of the SharePoint development collaboration platform. corporate vice president of the Office team’s three main goals: redefi ne the nature According to numbers in the survey, these are the top third-party software vendors and what their products are used “[The next on-premises version] is for with SharePoint: the biggest release of SharePoint ✱ Nintex USA LLC for workfl ow ✱ Bamboo Solutions for WebParts we’ve ever done [with] the largest ✱ AvePoint Inc. for administration engineering team.” ✱ NewsGator Technologies Inc. for social networking Jeff Teper, Corporate VP, Offi ce Business Platform, Microsoft ✱ Axceler for administration ✱ K2 for workfl ow Business Platform at Microsoft, said of collaboration, “unleash the ecosystem” ✱ KWizCom Corp. for WebParts SharePoint Online will come with and build a world-class platform. ✱ Quest Software Inc. for administration Business Connectivity Services (BCS), He said there are “thousands of partners ✱ Metalogix Software Corp. for content among other features. building apps on SharePoint,” many of management Teper also said the SharePoint team whom have requested a way to move those ✱ for social networking is working on “the next major release,” apps to the cloud. To that end, Teper said The survey was conducted in July presumably referring to the on-premises the next update of SharePoint Online will and released in October at the Microsoft product, but did not give details on a have BCS, “including read-write access to SharePoint Conference 2011 in Anaheim, timetable. He did say: “this is the biggest Web services, to make it easier for people Calif. In other results of the survey, release of SharePoint we’ve ever done, to build cloud-based applications that Forrester found that: [with] the largest engineering team.” front-end on their data.” ✱ 79 percent of respondents said “We’re investing big in this technology,” According to the SharePoint Team SharePoint is meeting their IT Teper said. Blog: “BCS lets customers use and search expectations. Jared Spataro, senior director of data from other systems as if it lives ✱ 73 percent of respondents said SharePoint product management at in SharePoint—in both read and write SharePoint is meeting business- Microsoft, preceded Teper with a string modes.” With BCS included, the forth- management expectations. of statistics to underline the rapid growth coming SharePoint Online update will let ✱ 38 percent said they went to third of SharePoint. According to Spataro, users “connect to data sources via Windows parties after fi nding that SharePoint SharePoint is the fastest Microsoft Communication Foundation (WCF) Web didn’t have what they needed out of product to generate $1 billion in revenue, services endpoints.” the box. making it one of the largest products in the Kurt Mackie contributed to this report. • ✱ 65 percent were using SharePoint 2007. company’s portfolio. In fact, Spataro said, ✱ 57 percent were using SharePoint 2010 if SharePoint were a standalone business, it would rank as one of the top 50 software Gladys Rama is the site editor for —K.M.

fi rms in the world. RCPmag.com. MICROSOFT PHOTO:

12 Redmond Channel Partner NOVEMBER 2011 RCPmag.com Because right-sized data center infrastructure is good business strategy

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{ISVs}

in the marketplace. Ford uses a service to deliver optimal electric charging-time information to hybrid and electric car owners, Nadella explained. Microsoft announced at BUILD that its Translator API was immediately available from the Windows Azure Marketplace. Nadella noted that ISVs will want to handle multiple identities from various providers—such as Facebook, Google, Windows Live and Yahoo!—when managing their rich composed services. Microsoft introduced its Windows Azure access-control services to handle that complexity, he said. A demo by John Shewchuk, a Microsoft technical fellow, showed how to use the Windows 8 credentials password vault to handle multiple identities, which enables a single sign-on experience across Windows 8 apps. If that’s not available, the Gurdeep Singh Pall demos Microsoft Offi ce Communications application defaults to a regular sign-on process. Behind the Server “14” at Microsoft Tech·Ed as Microsoft Server and scenes, the combination of the Windows 8 authentication Tools President Bob Muglia (partially obscured) watches. broker plus the new Windows Azure access-control surface does all of the heavy lifting to support multiple identity providers, Shewchuk said. Microsoft Makes the Case In other news, Microsoft released a Windows Azure Toolkit for Windows 8, updated Windows Azure Storage with a new for Windows Azure geo-replication feature, made a Windows Azure Storage Bus available and released the Windows Azure SDK 1.5. • unveiled new tools and capabilities at the BUILD show to make the Microsoft cloud platform more accessible to development partners. By Kurt Mackie Kurt Mackie is the online news editor for the 1105 Enterprise Satya Nadella, president of the Microsoft Server & Tools Computing Group. Business, pitched Windows Azure to independent software vendors (ISVs) by detailing some recent improvements to the cloud-based platform. Nadella remarked at the Microsoft BUILD conference {Hybrid} in September that ISVs need a rich portfolio of storage “across blobs, tables and full relational capabilities” to Symantec Pitches Backing Up into handle complex data—and that Windows Azure (along a Private Cloud with SQL Azure) provides the platform for the data With the latest release of Symantec’s storage management and high- services that ISVs require. availability (HA) products, the company is positioning the technologies Data feeds can be monetized through the Windows as a way to create private cloud-like capabilities without ripping and Azure Marketplace, Nadella said, and Microsoft planned replacing datacenter infrastructure. to expand this marketplace to 25 new markets last Symantec in October unveiled the version 6.0 releases of 10 month, which include: “Austria, Belgium, Canada, Czech, products that are scheduled to be available in December. They Denmark, Finland, France, Germany, Hungary, Ireland, are Veritas Storage Foundation, Veritas Cluster Server, Symantec Italy, Netherlands, Norway, Poland, Portugal, Spain, ApplicationHA, Veritas Dynamic Multi-Pathing, Veritas Cluster File Sweden, Switzerland, UK, Australia, Hong Kong, Japan, System, Veritas Replicator, Symantec VirtualStore, Veritas Storage Mexico, New Zealand and Singapore,” according to a Foundation for Windows, Veritas Storage Foundation for Oracle RAC Windows Azure blog post. and Veritas Storage Foundation for Sybase ACE. Also included in the The marketplace can house full applications in launch was Veritas Operations Manager 4.1. addition to data sets. Data feeds from the marketplace Symantec isn’t claiming to be a private cloud vendor with the can be consumed in applications as namespaces. Nadella latest group of releases. The company has just tuned current products cited the example of the Translator, which to enable some of the main drivers for private cloud. is being used by eBay for a Windows Phone app. Ford

is another example of a company tapping a namespace —S.B. MICROSOFT/BUILD PHOTO:

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{Mobile} 10 ‘Mango’ Features for Microsoft Partners The Windows Phone 7.5 release is chock full of business-friendly functionality. By Scott Bekker

In late September and early October, Twitter and LinkedIn Microsoft and mobile carriers started rolling 5Windows Phone 7 supported feeds out the “Mango,” or Windows Phone 7.5, from Facebook and Windows Live. update and releasing new devices with the Mango adds tight integration with the more upgraded mobile OS. business-oriented social networks of Twitter Here are 10 of the 500 feature improve- and LinkedIn. ments likely to be of the most use to Microsoft partners and their customers. New Voice Commands 6Microsoft Tellme technology powers Custom Apps in Marketplace a number of new voice command 1A new feature of the Windows Phone capabilities across the phone’s functions. platform is the ability for companies that Partners may have the opportunity to plug into develop custom apps for internal use to put the infrastructure to create new interaction them in the Windows Phone Marketplace. paradigms for their apps. The app won’t be visible in the public-facing catalog, but it allows for distribution to large Improved Office Mobile Apps numbers of employees. The feature should One of the best features of Windows simplify distribution for Microsoft partners 7 Phone 7 was the mobile Microsoft Offi ce doing custom application development for suite, featuring Word, Excel, PowerPoint and large customers. OneNote. The Mango versions are basically The App Switcher in Mango the same with minor upgrades. For example, Enhanced Exchange Server Support provides large views of the available screens. where all documents appeared as orange tiles 2The ability to connect to Exchange e-mail in Windows Phone 7, they now have diff erent isn’t a diff erentiator among smartphones colors based on fi le type, making fi les easier for Windows Phone 7. Android devices and to fi nd. iPhones can connect, as well. But with Mango, Microsoft is starting to leverage the Document Templates opportunity to take integration further than Microsoft added a handful of templates the competition can or will. The 7.5 release can 8 for new Word and Excel fi les, as well: search the Exchange Server for fully indexed Agenda, Expenses, Golf scorecard, Mileage e-mail content and attachments and perform tracker, Modern card, Modern invite, Timesheet, searches refi ned by date range and by folders. Vibrant card and Vibrant invite. Also supported now on the Exchange side are alphanumeric Exchange passwords. Office 365 New users who provide their Offi ce Linked Inboxes 9 365 credentials will fi nd their phones 3Multiple e-mail account support, for automatically confi gured and synced with calibrating work-life balance, gets much e-mail, calendar, contacts, tasks, SharePoint more sophisticated in Mango. A feature called team sites and an Outlook Live Tile on the Linked Inboxes allows users to pick and choose Start screen. among their e-mail accounts to have some feed into a single view. Downloadable Lync Mobile App The app for Offi ce 365 or Intelligent Multitasking 10 on-premises Lync Server 2010 Mango adds the crucial feature of 4 supports presence information, IM, multi-party multitasking support, allowing users Businesses will have the chat, coworker searches, availability updates to switch between apps or take calls without ability to add their own apps to and quick connections to scheduled meetings. losing progress on a document or game. The the Windows Phone Marketplace control for multitasking, called App Switcher, is for easier internal distribution. intuitive and shows large screen images that Scott Bekker ([email protected]) is editor make it easy to pick among open apps.

in chief of RC P. CENTER NEWS MICROSOFT

16 Redmond Channel Partner NOVEMBER 2011 RCPmag.com {Careers}

The Executive proven ability to lead companies through ✱ Andy Zupsic: Joined in September times of rapid growth.” Juniper Networks 2009 as SVP, Americas Enterprise Sales. March from executives at the time noted that Johnson He held various management roles in was running a 14,000-employee, $20 Singapore and Latin America during a Microsoft to billion-a-year business inside Microsoft in decade with Microsoft. the Platforms and Services Division. ✱ Hoke Horne: Joined in October Juniper That Johnson would bring over some 2009 as VP, Pricing. He had been with senior Microsoft people in Juniper’s ongo- Microsoft since 2002, most recently as Networks ing expansion to a current total of about CFO, Microsoft Financing. Since former Microsoft senior executive 9,000 employees is no surprise. He got to ✱ Mitch Lewis: Joined in June 2010 Kevin Johnson became CEO in 2008, 12 know the strengths, fl aws and personali- as VP, Strategic Alliances-Ericsson. A execs from Redmond have followed him ties of a lot of Microsoft executives in his 10-year Ericsson executive, Lewis worked to VP roles at the networking company. 16 years in Redmond. at Microsoft for a year as GM, Worldwide Here are 12 Microsoft executives Marketing for the Communications When Bob Muglia started his new job last who joined Juniper after Johnson, in Sector, prior to jumping to Juniper. month, he was following a well-worn chronological order, according to the ✱ Mike Porter: Joined in July 2010 as path from Microsoft corporate head- executives’s bios on LinkedIn: VP, Central Area. He’d been a regional GM quarters to senior positions at Juniper ✱ Peter Boit: Joined in February 2009 at Microsoft for fi ve years to that point Networks Inc. as senior vice president, Enterprise. He and had been with Microsoft since 1996.

Kevin Johnson Gerri Elliot Bob Muglia

Muglia, who held some of the top had been VP, Enterprise Partners at ✱ Emilio Umeoka: Joined in December executive positions inside Microsoft Microsoft from 1991 to September 2008. 2010 as SVP, WW Partners. Left Microsoft during his 23 years there, is one of at least ✱ Joe Austin: Joined in February 2009 after 10 years from the post of President 12 executives to follow former Microsoft as VP, Customer Experience. He was with of Asia Pacifi c. President for Platforms and Services Microsoft from 1995 to 2009. ✱ Brad Brooks: Joined in February Kevin Johnson to a vice presidency at ✱ Gerri Elliott: Joined in June 2009 as VP, Worldwide Enterprise Sector Juniper Networks since Johnson became as executive vice president, Strategic Solutions and Marketing. He worked at CEO of the networking company in Alliances. She became EVP and chief Microsoft from 2002 to January 2011, September 2008. sales offi cer in July. She spent seven years most recently as CVP, Windows Consumer Growth in revenues was clearly what at Microsoft through December 2008, Business. Juniper Networks had in mind in bringing when she was corporate vice president, ✱ Ben Jackson: Joined Juniper in Johnson on in 2008. In a statement at the Worldwide Public Sector. July as VP, Technical Documentation & time, Pradeep Sindhu, founder and chief ✱ Brian Roach: Joined in July 2009 as Information Experience. He had spent technology offi cer of Juniper Networks, VP, Federal. He’d spent the previous 10 the previous fi ve years at Microsoft. listed among the reasons for hiring years at Microsoft, where he had been ✱ Bob Muglia: Joined Juniper Johnson: “Kevin’s experience at scale, general manager, U.S. Department of Oct. 3, 2010, as EVP, Software Solutions his background in engineering and his Defense Sales. Division. —S.B.

RCPmag.com NOVEMBER 2011 Redmond Channel Partner 17 RCP COVERSTORY | WINDOWS 8 SHUTTERSTOCK

18 Redmond Channel Partner NOVEMBER 2011 RCPmag.com The latest Microsoft OS promises disruptive opportunities for every type of partner—from developers to solution providers to those who provide training—assuming they move fast. TOPBy Scott Bekker 8 PARTNER OPPORTUNITIES IN ‘WINDOWS 8’

In the last few months, the amount of detail available on “Windows 8” has grown exponentially. With a developer preview of the OS in the fi eld, the sessions at the recent BUILD show and extensive blog posts, Microsoft is putting a lot of information out about its next OS. The need for information this time is much greater than in a typical Windows upgrade. Microsoft is responding to radical shifts in technology usage with what looks like an equally radical shift in its fl agship OS. Windows 8 will run on tablet devices with system on a chip (SoC) architectures as well as x86 systems, have a touch-fi rst interface and sport a tile-based look that represents the most signifi cant UI change in a single product generation than anything Microsoft has introduced since Windows 95, if not earlier. SHUTTERSTOCK

RCPmag.com NOVEMBER 2011 Redmond Channel Partner 19 RCP COVERSTORY | WINDOWS 8

1. CUSTOM APP DEVELOPMENT Windows 8 brings a new type of app to the Windows desktop ecosystem. The UI for the apps is called “Metro.” It looks familiar to anyone who has used a Zune player or a Windows Phone, which is to say that it’s not familiar to many end users, but it will be familiar to a large percentage of Microsoft partners. More broadly speaking, the apps take advantage of new Microsoft development tools and are capable of appearing on a new tile-based Start screen paradigm, where they have limited space to display real-time information. At this point, it looks like the Metro approach will be ideal for lightweight apps that are Right there on the lock screen for Windows 8, Microsoft is inviting obviously similar to the types of apps that run on development partners to “make awesome apps.” Many of the channel an iPad. opportunities around Windows 8 involve development. Partners involved in custom application devel- opment will need to spin up practices around the creation of Metro apps for customers’ internal corporate applications. This work will go hand- in-hand with discussions about the devices that customers will want to use (more on that later), creating a partner-to-partner business opportunity with solution provider partners. Because of the highly complex matrix of develop- ment language and application-type compatibility questions that are emerging around the diff erent platforms—Windows 8 tablets, Windows 8 PCs, and Windows 7 and other legacy PCs—even customers with in-house development teams will be looking for guidance from partners who can help them navigate Migrating corporate applications to Windows 8 should be a big business for to the right combination of devices and apps. custom development shops. Partners with expertise at developing clean, creative and highly productive Metro apps that For now, Windows 8 is primarily a developer story. As Steven leverage the capabilities of a Windows tablet will fi nd themselves Sinofsky, president of the Windows and Windows Live Division, said in high demand from two sides. One will be customers looking for at the BUILD show for developers in Anaheim, Calif., in September, competitive advantage for their businesses. The other side will be Windows 8 is “a new opportunity for developers—a new opportunity Microsoft, which can be expected to lavish attention and resources for you to express yourselves and to get the most out of PCs, no matter on partners that can provide the proof points that all the platform what size or shape.” bets it’s placing have real business value. Many of the most heated debates at this point surround develop- There are two other aspects of custom app development that stand ment questions. Of special concern are the diff erent languages and out as especially novel opportunities. One is the chance to develop application types that will be supported on the OS in its tablet and multi-device apps on the Windows platform that present only the more traditional forms. There are also many questions about backward appropriate capabilities for the desktop user, the tablet user and compatibility with applications designed for Windows 7 and earlier the smartphone user. The other is the opportunity to create cloud- versions of the OS. connected apps that tie the expanding cloud infrastructure to the Even as these debates play out, the broad outlines of the opportuni- mobility provided by the tablet form factor. ties for the entire Microsoft channel are beginning to become clearer with all the new detail about Windows 8. What follows are the top 2. PORTING CORPORATE APPS AND WEB SITES eight emerging opportunities for partners in the Windows 8 time With the new Start screen approach, which is the biggest change frame (a time frame, which, at the moment, is not clear). Because to the desktop since Windows 95, nearly all applications, light- many Microsoft partners are developers or off er development in their weight or heavyweight, will be tiled. As Windows 8 adoption portfolios, we’ll start with those opportunities. After that, we’ll look grows, a partner business model can also be expected to emerge at more solution provider-oriented opportunities. around porting existing corporate applications to Metro apps. This is a business that will overlap to a large extent with the custom app

20 Redmond Channel Partner NOVEMBER 2011 RCPmag.com MSP Update to Your Inbox

MSP Update e-Newsletter %HVWSUDFWLFHV  FDVHVWXGLHVDQGEXVLQHVVDQG WHFKQLFDOLQVLJKWVIRUJURZLQJ\RXU 0DQDJHG6HUYLFHV3URYLGHUSUDFWLFH Subscribe Today. It’s Free! RCPmag.com/newsletter RCP COVERSTORY | WINDOWS 8

development opportunity, and in many cases a discussion about porting should lead to a deeper engagement involving development of a new or greatly improved app that takes advantage of the new platform capabilities. The same goes for Web sites. Not only is Windows 8 a sea change from what went before, but it is accompanied by 10, which is a touch-enabled browser. Customer Web sites will be due for signifi cant overhauls to take advantage of the new capabilities or even to simply look up-to-date. As the Microsoft Internet Explorer chief Dean Hachamovitch blogged, there’s a lot of work for developers to do to take advantage of the new browser experience. “Touch is very important, and Michael Angiulo, corporate vice president of Windows Planning, Hardware & so is the immersive experience,” he wrote. “There’s PC Ecosystem, shows devices at BUILD. Customers will need more help than in the past in selecting devices that meet their business needs. work ahead to make sure that sites that already run plug-in free for other devices can work that way in IE10. Similarly, Where Windows has a potential advantage is when Windows 8 some sites may need to update older, out-of-date libraries that don’t deployments become even a fraction of Microsoft’s 1-billion-customer work well with IE10. Including the current desktop style browser to installed base. Suddenly apps that run on a tablet or the phone can deliver the compatibility that people expect from a Windows release also run on any desktop; the potential market for an app immediately is also important.” becomes enormous.

3. Consumer App Development 4. ISV—Corporate Solutions Any partner who wants to see real hockey stick-like growth will Independent software vendors (ISVs) developing software for want to at least dabble, if not jump completely, in the consumer enterprise and corporate customers will have a lot to think about app development world. The opportunity to create an app that any surrounding the Windows 8 release. Many of the opportunities consumer would want greatly expands the addressable market. that will present themselves to custom application developers Only time will tell if Windows 8 gains traction in its Metro form. (see No. 1) will be available to ISVs. But if it does, the shared Metro UI of Windows 8 and Windows Phone Where things may get really interesting for ISVs is around pricing. apps greatly improves the incentive for developers to target Windows Windows desktop application development has mature pricing models. Phone. The attraction is the same as the close link between iPad and The introduction of potentially robust Windows app stores in the iPhone development. Windows 8 time frame—along with the likelihood of lighter-weight

OTHER KEY 1. Multitasking Microsoft. To demonstrate, President Steven PARTNER Windows 8 will multitask in full-tablet mode, Sinofsky held up a Lenovo netbook during according to the demos at BUILD. That’s an his keynote that he’d used three years before FEATURES IN important diff erentiator in the emerging for a Windows 7 demo. Using Task Manager, ‘WINDOWS 8’ tablet market. Julie Larson-Green, corporate Sinofsky showed that when running Windows vice president of Windows, showed a new way 7 SP1, the machine used 404MB of RAM In the fl ood of recent information of multitasking during BUILD called docking and had 32 processes running. With the about “Windows 8,” details apps, which snaps the app to the side of the Windows 8 developer preview, it used 281MB emerged on a few more of the screen, allowing for good views of two apps at of RAM and needed three fewer processes, features likely to be important once. Apps that aren’t active on the desktop Sinofsky said. to the partner ecosystem: will run “suspended,” but can be killed in the Task Manager. 3. Connected Standby As part of its eff ort to improve OS boot-up 2. Performance and shutdown times, Microsoft has added a The new tile-based UI and the infrastructure new “connected standby” state, which is a to support it isn’t a kludge being bolted on low-power idle. “What’s going on is Windows to the outside of Windows, according to is coalescing all of the timer requests and all

22 Redmond Channel Partner NOVEMBER 2011 RCPmag.com “In the future, many organizations will also use alternative client computing architectures for standard PCs with Windows OS,” Gartner wrote in a reference to devices such as tablets. Gartner also cited the moves toward both virtualization and cloud computing as reasons there may not be a next major migration season. Unmentioned by Gartner is a fourth point that supports the view. The Windows XP share is huge, Windows Vista is small and Windows 8 looks, thus far, potentially disruptive. That could amplify the attractiveness of Windows 7 as a corporate OS, extending its life in the enterprise and giving the other three trends time to gather steam. Tiles on the Start screen provide partners with a chance to push small amounts While all that makes for a strong argument that of real-time data to users in new apps or ported applications. the Windows 8 migration opportunity could be smaller for Microsoft partners than Windows 7 has apps—does two things. It has the potential to completely transform been, some customers will want to make the move. The beauty of Windows-based software sales and distribution while at the same the Microsoft ecosystem from a partner standpoint is that no matter time throwing a lot of the old pricing rules into chaos. how small “some” is in percentage terms, in raw numbers it usually translates to “a lot.” 5. Standard Migrations And though it may seem a bit out of place in a discussion of Windows There’s been a premise in each of the last few upgrades— 8 opportunities for partners, the disruptive nature of Windows 8 will Windows XP, Windows Vista and Windows 7—that this is the encourage a lot of customers to assume a wait-and-see attitude. The last major migration. The latest in that proud tradition came in huge question is whether that wait-and-see group will be large, very August from Gartner Inc., in a news release predicting Windows large or consist of almost everybody. In any case, the Windows 8 7 would run on 42 percent of the global PC installed base by release coupled with the pending end-of-life of Windows XP should year’s end. “Gartner’s forecast assumes that Windows 7 is extend the lifespan of the Windows 7 migration business opportunity. likely to be the last version of Microsoft OS that gets deployed to everybody through big corporatewide migration,” the market 6. Platform Guidance research and analysis fi rm wrote. Before migrating to Windows 8 or moving instead to Windows Gartner provided three interesting points of support that probably 7, many customers will need help from partners in arriving at a make the statement more likely to be true this time than in the past: workable decision. All this choice in Windows 8 platforms is going

of the network requests, turning the radio on save fi les and personalization settings and in allowing apps to share data and functions briefl y, updating the apps, and then shutting keep “Metro style” apps, but otherwise restore with other apps, even if the app developers the radio back down,” explained Michael factory defaults and remove other apps, such don’t know the other apps exist when they’re Angiulo, corporate vice president of Windows as malware and extra toolbars. writing them. Planning, Hardware & PC Ecosystem, in Microsoft describes its approach as another demo. “It’s an instant-on-type 5. Picture Password “contracts.” There are several contracts, scenario because it was never off .” Larson-Green demonstrated a slick password including a “sharing contract,” a “search paradigm called Picture Password. Looking contract” and a “recognition contract” 4. Reset and Refresh at a picture on her Windows 8 logon screen that works with the pen tool for translating A pair of new features will come in handy of her daughter holding a glass of lemonade, handwriting into text. for Microsoft partners who provide desktop Larson-Green pressed her daughter’s nose, In the UI, Microsoft introduced “charms,” support. An option called “reset” will restore pressed the lemonade and drew a line across which the user can pull in from the side of the the machine back to the factory settings. the screen—a pattern only she would know. screen. The charm icons give users options for Service packs, some software and other sharing, searching and other functions that updates, will need to be reloaded, making it 6. Contracts and Charms work across diff erent apps. a big stick to use only in severe situations. A One way Microsoft seems to be moving the ball less draconian option is a “refresh,” which will forward in the tablet user experience is —S.B.

RCPmag.com NOVEMBER 2011 Redmond Channel Partner 23 RCP COVERSTORY | WINDOWS 8

to create a Wild West environment of compatibility. Organizations ways to leverage the virtualization technology for various solution will need to navigate an extremely convoluted decision tree in scenarios. Hyper-V in Windows 8 will no doubt off er opportunities determining how to go forward with Windows 8 version selec- for partners, as well. tion, hardware selection and application selection. Partners who That said, Sinofsky set expectations in a recent blog post, writing thoroughly understand the variables, can clarify the decision tree that Microsoft is initially only looking to enable virtualization for and consult with customers on the best app migration platform a core set of scenarios for professionals. “The two most common should fi nd their services in high demand. scenarios we focused on are for software developers working across This opportunity may be one of the fi rst to materialize. For example, multiple platforms and clients and servers, and IT professionals looking Microsoft executives have been talking up Windows 7 migrations as a to manage virtualized clients and servers in a seamless manner,” good step for customers to get ready for Windows 8. While Microsoft’s Sinofsky wrote. logic there is somewhat hard to follow, partners may also fi nd a good In the same blog post, Mathew John, program manager on the niche in advising customers on new system purchases that will be Hyper-V team for Windows 8, discussed some limitations of the compatible with touch capabilities in Windows 8 but that in the virtualization technology in the OS. “Features or applications that meantime are solid systems for running Windows 7 (or for exercising depend on specific hardware will not work well in a VM [virtual downgrade rights after Windows 8 ships). machine]. For example, Windows BitLocker and Measured Boot, which As an example of the kind of information partners can be ready rely on TPM (Trusted Platform Module), might not function properly to share with customers, Microsoft revealed recently in a blog post in a VM, and games or applications that require processing with GPUs which Windows 7 hardware the company has been using extensively (without providing software fallback) might not work well either. to test Windows 8 capabilities—the HP Elitebook 2740p and 2760p Also, applications relying on sub 10 ms timers, i.e. latency-sensitive convertibles, ASUS EP121 tablet, Dell Inspiron Duo convertible, Lenovo high-precision apps such as live music mixing apps, etc., could have x201 and x220t convertible and the 3M M2256PW 22-inch display. issues running in a VM.” The same blog entry also listed nearly 50 other shipping systems that Still, even with the limited use cases Microsoft is discussing so far, Microsoft had been using to test various Windows 8 features. partners with virtualization practices will be watching closely for A big part of the discussions will be on an entirely new topic for most opportunities down the line to use virtualization to overcome legacy corporate customers—tablets. To date, Windows tablet discussions application incompatibilities or to create virtual desktop infrastructure have been vertical-specifi c discussions based on purpose-built devices. solutions. Since the launch of the iPad, many customers are eager to take a much broader view on potential business uses for the devices. 8. Training During an earnings call over the summer, Apple CFO Peter To a large extent, the success or failure of Windows 8 will depend Oppenheimer said 47 percent of Global 500 companies were testing on how natural the UI is, and how easy it is to fi gure out and use. or deploying iPad. Yet, even if Microsoft does a superb job—and early indications “In the 15 months since iPad shipped, we’ve seen iPads used in the are that the UI is going to be very good—user training will be a enterprise in ways we could have never imagined,” Oppenheimer huge market for Microsoft partners. Any interface change is an said, according to a Seeking Alpha transcript. “Companies like Boston opportunity for user training, and Windows 8 is billed as the Scientific, Xerox and Salesforce.com are deploying thousands of “reimagining” of Windows. iPads and revolutionizing how their sales teams engage their custom- One example of literally hundreds of changes is the addition of the ers. iPad is being used inside the country’s top hospitals like HCA interface to Windows Explorer. The Ribbon will doubtless and Cedars-Sinai and in retail at Nordstrom and at Esteé Lauder’s throw many users for a loop. Meanwhile, tips and tricks for storing and Clinique counters. General Electric, SAP and Standard Chartered fi nding fi les, pinning apps and Web pages, rearranging the Start screen have developed internal apps for training, currency tracking and and using newly built corporate apps will all need to be explained. The business process management to help make employees even more iPad user base is primarily an early adopter, self-selected market. Its productive. And Alaska Airlines and American Airlines are using the users are highly motivated to play with the devices and fi gure them iPad in cockpit to replace paper-based navigational and reference out. Most of the corporate environment has a very diff erent user profi le, information pilots carry with [them] on every fl ight.” and they’ll need classes and hands-on sessions. Broad corporate interest in tablets should be even stronger in the Windows 8 generation. Discussions on how tablets come into corporate With the release anywhere from eight months to more than a year settings will be intimately tied to discussions about available apps, away (Sinofsky declined to provide a release target), partners have a custom app development projects, app porting projects and cloud lot of time to get ready for Windows 8. But this is a disruptive release, capabilities. and many of the opportunities refl ect that. The sooner partners start thinking about ways to build business around Windows 8, the stronger 7. Desktop Virtualization that business could be. • Windows 8 will be the fi rst client OS to include Hyper-V technol- ogy. Microsoft has included Hyper-V technology in the last two releases of Windows Server, and partners have increasingly found Scott Bekker is editor in chief of Redmond Channel Partner magazine.

24 Redmond Channel Partner NOVEMBER 2011 RCPmag.com Helping Your Business THRIVE

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Katalys Group formed to help small Dynamics partners fi nd a creative way ()to meet the Microsoft Partner Network requirements by banding together. By Barb Levisay

hen Gabe Parajos and Mark through a section of the Dynamics PartnerSource portal. Orders for add-on modules and enhancement plans are placed through W Fineman started Katalys Group the Microsoft Virtual Offi ce Information Center (VOICE), with in 2008, they probably didn’t expect to be margins paid to the partner of record. This assigned relationship with customers means that Dynamics ERP consultants need to be caught up in a revolution two years out. associated with an ERP partner with an active Solution Provider Agreement (SPA) in order to have access to their customer’s What started out as a loose affiliation VOICE information. Through Katalys Group, Parajos and Fineman provided a way of independent Dynamics consultants for independent Dynamics consultants to combine their individual to share resources and protect resale competency elements together to meet the competency requirements and to house their customers in a “safe” environment. While some margins became a test of will and dedica- partners will house independents’ customers, they often take a slice of the margin on add-on and enhancement sales in exchange. tion to fi nd a workable resolution to the Parajos and Fineman found plenty of interest from the Dynamics partner community, and continued to build the organization with pivotal change in the Microsoft Partner Microsoft’s knowledge and blessing. “We were good for about two Network (MPN) requirements. and a half years, keeping in constant contact with Microsoft. We were vetted through the legal department, ensuring that we were compliant “Mark and I used to be the traditional reseller, but [we] sold our business with all partner requirements,” Parajos says. “When the MPN require- to a large partner organization,” Parajos says. “That turned out not to be a ments started to change, we were attracting smaller partners, not just good fi t for us, so we started over. This time, we set up a little diff erently, independents. They could safely keep their clients under the Katalys as a virtual partner to provide friends in the industry with an alternative.” Group umbrella and continue to do business as they were.” As originally envisioned, Katalys Group would allow In March ooff tthis year, Microsoft contacted Parajos and certifi ed Dynamics ERP consultants to retain owner- FinemanFineman,, warning them the new SPA requires that ship of their clients and share resources, but 70 percentpe of services must be delivered to the remain independent. customercus by the partner of record. Because Dynamics ERP (including AX, GP, NAV KatalysKa Group does not provide any services and SL) partners have a unique customer- iitself—all are delivered by the independent engagement relationship with Microsoft, members—the company had a problem. which adds some complexity for the indepen- Unless it could find a way to meet the 70 dent Dynamics consultant. When customers percent service requirement, Katalys Group purchase their Dynamics ERP license from an wwas doomed. authorized partner, the customer account is Microsoft suggested two paths to Katalys assigned to the partner of record. The partner GGroup.r The first was the now-discarded of record can view the details of the customer’s ffranchiseranc model (see the April 2011 cover story, licenses, support calls and enhancement plan “Golde“Goldenn Arches for the Dynamics Channel?”) and Mark Fineman

RCPmag.com NOVEMBER 2011 Redmond Channel Partner 27 RCP FEATURE | DYNAMICS PARTNERS

the second was the Master VAR program (see “Master VARs,” September 2011).

A CHANGING RELATIONSHIP “A lot of small customers like working In addition to testing require- with small partners. Our customers call it ments, Dynamics ERP and Dynamics CRM partners must white-glove treatment.” meet a minimum Dynamics ( Belinda Allen ) license sales number to meet SPA requirements. If a Dynamics Owner, Smith & Allen Consulting Inc. partner does not meet SPA requirements, they will lose their authorization to resell Dynamics. For those partners who have focused on service delivery to an existing customer base or other through Katalys Group,” Allen adds. “I want Microsoft to make a lot partners, the MPN transition signals a fundamental change in their of money on Dynamics GP. The more profi table Dynamics GP is, the relationship with Microsoft. better the product will be. The better the product is, the better off my New York-based Smith & Allen Consulting Inc., a Great Plains and customer is. And the better off my customer is, the better off I am. I now Dynamics GP partner for 20 years, employs eight, including want Microsoft to prosper, and I want to do what I can to help that.” one of the 12 worldwide Dynamics GP MVPs. In addition to its traditional practice, Smith & Allen employees maintain three active WHY NOT MASTER VAR? blogs with free training and support resources for the Dynamics As Parajos and Fineman evaluated their options, they wanted to GP community. Describing its focus, owner Belinda Allen says, “In ensure that the fundamental goal to provide a voice and platform for the last fi ve years we’ve been more of a consulting partner than a independent consultants and small partners remained at the core. The sales partner. We’ve been supporting other partners.” Master VAR program requirements of centralized customer ownership, During this year’s Convergence—the annual singular corporate name and centralized operations didn’t fi t. partner and user conference, Allen faced a turning point in her “We took the Master VAR program PowerPoint that Microsoft relationship with Microsoft. At a pre-conference town hall meeting gave to us and spent the weekend talking about it,” Parajos recalls. with Microsoft Dynamics execs, she was shocked by harsh responses “As we looked at it, we thought, ‘what if we fl ip the model so instead to partner questions. of the arrows pointing down from the top, the arrows point up from “It was a big moment for me that changed the game. I, and all the the bottom?’ Instead of us purchasing the members, let the members partners around me, felt like the Microsoft leadership team was blaming purchase a piece of us.” the partners, and particularly the small partners, for all that was wrong On July 1, 2011, Katalys Group LLC was created as a limited partner- with the Microsoft Dynamics GP channel. It was more about fi nding ship with each of the independent Dynamics practice members owning someone to blame than ‘how do we fi x this.’” Allen continues, “It was a share in the organization. While it’s not an outright endorsement, heartbreaking. I was dumbfounded. That town hall meeting was the Fineman says the Microsoft legal department has given its blessing straw that broke the camel’s back. From that moment, I knew I had to Katalys Group compliance with SPA requirements. to change my relationship with Microsoft. Even though we had only “We have been fully transparent with Microsoft. We’ve shared supported Dynamics GP in the past, we needed to pick up another everything with them without reservation,” Fineman says. “We product to protect ourselves.” want them to know that we’re doing everything we can to meet their Allen did not have an issue with the MPN requirements being requirements and expectations.” increased. “We have the people that we need to meet the certifi cation That said, any understandings Katalys Group has with Microsoft requirements—that wasn’t a problem for us,” says Allen. “But a lot might be tenuous. Asked for comment about the Katalys Group model, of small customers like working with small partners. Our customers Jeff Edwards, director of Microsoft Dynamics Partner Strategy and call it white-glove treatment. Not that larger partners aren’t good, but the main architect of the Master VAR program, replied in an e-mail smaller companies often want to build that personal relationship.” that didn’t make it sound like he was a fan. Later at Convergence, Allen met Parajos and Fineman at a Katalys “The new Master VAR program is an offi cial Microsoft program Group-sponsored dinner for partners and customers. Allen felt the designed to provide a unique opportunity for Microsoft Dynamics same camaraderie as she remembers from the Great Plains Stampede partners to collaborate and grow. Microsoft intends to partner with partner events. “People were passionate about the product and Master VARs that are well-capitalized and have a proven track record passionate about how they could make the customer’s business of success and business growth,” Edwards said. “Other, unoffi cial better,” she says. partner-created buying clubs that merely promise to aggregate “It gave me hope that we could continue to prosper with Dynamics license orders for the purpose of meeting minimum requirements

28 Redmond Channel Partner NOVEMBER 2011 RCPmag.com are unlikely to provide the same opportunity or level of support and Another signifi cant benefi t to partners is the centralized billing of may well be in violation of the current partner agreement.” customer’s enhancement plans for both Microsoft and ISV applica- tions. Most Dynamics customers use at least one, if not many ISV THE KATALYS GROUP MODEL solutions on top of Dynamics ERP. An administrative thorn in every Currently, 45 partners have become owners under Katalys Group, Dynamics partner’s side is the cumbersome process of managing paying a fl at monthly fee to access the full range of services provided ISV enhancements, which are usually low dollar value but require by Katalys Group. Based on conversations and verbal commitments, just as much time to invoice the customer and pay the vendor. With Fineman expects a signifi cant uptick in numbers in response to the Katalys Group centralizing that process, consultants can focus on recent October MPN deadline. service delivery instead of administration. Warren Pease, owner of Colorado Springs, Colo.-based Pease “It’s a real benefi t for Katalys Group to take the burden of handling Consulting Group Inc., is another 20-year Great Plains/Dynamics the enhancement plans,” Allen says. “They also help channel the GP veteran who is now a partner in Katalys Group LLC. “Katalys information from Microsoft, so it’s not so overwhelming. For us it’s represents a way for me to continue on with the clients that I’ve been all about keeping our revenue center around Microsoft Dynamics working with over the years without having to hire people to meet the GP, but we do appreciate the higher margins. While our relationship new MPN requirements,” Pease says. “And, there are the additional with Katalys Group is purely about being able to keep our business, benefi ts of higher margins and a resource base to call on as needed.” the benefi ts are icing on the cake.” With the current membership, Katalys Group is authorized to sell all Katalys Group is adding members around the globe as well, as small of the Dynamics products, including AX, GP, NAV, SL, RMS and CRM. partners abroad face the same challenges as United States-based Achieving sales volume that garnered a spot on the 2011 President’s partners. Robert Hyndman, owner of Wavesoft Business Solutions Club list means that margins partners receive on product sales are Ltd. in Auckland, New Zealand, was facing the fi nancial and support comparable to the top VARs in the world. Katalys Group partners issues of a one-person shop. retain 100 percent of margin on all product sales, including add-on “I found Katalys Group and liked their model,” he says. “I had a sales and the Microsoft and ISV enhancements. conversation with Mark and Gabe from a reassurance and Microsoft While customers are assigned to the central Katalys Group approval point and was extremely comfortable. Katalys Group PartnerSource VOICE account, Parajos and Fineman are the only supports the smaller partner by providing aff ordable access to criti- ones who can view the full customer list. Partner members access their cal Microsoft and business resources while keeping my company’s own customers’ accounts through the Katalys Group partner portal. brand intact.”

AMPLIFYING THE VOICE OF SMALL PARTNERS As a combined entity, Katalys Group members enjoy higher Microsoft support levels than they could likely afford on their own. Parajos and Fineman work hard to build mutually benefi cial “We took the Master VAR program relationships with Microsoft fi eld reps, ISVs and PowerPoint that Microsoft gave other partners. “One of the benefi ts of working with Katalys to us and spent the weekend Group is greater leverage with Microsoft,” Pease talking about it. As we looked at says. “I can pick up the phone and talk to Mark or Gabe and explain a situation and Katalys Group as it, we thought, ‘what if we fl ip the an entity is a larger player than I am on my own. I model so instead of recently had an issue trying to place an order and with Katalys Group’s leverage we were able to cut the arrows pointing down from through some of the red tape.” the top, the arrows point up from As ISVs are fi nding, Katalys Group provides an ( ) avenue to reach independent consultants one to the bottom?’” many instead of one to one. Parajos and Fineman Gabe Parajos vet the ISVs to determine which bring the most Founder, Katalys Group LLC functionality, value and stability to share with the collective. Through webinar demos, Katalys Group partners can evaluate the ISV applications, saving them research time while insulating them from direct sales pressure.

RCPmag.com NOVEMBER 2011 Redmond Channel Partner 29 RCP FEATURE | DYNAMICS PARTNERS

“Our strength in numbers helps our members enhance the way they operate with access to resources shared by the group.” ()Mark Fineman Founder, Katalys Group LLC

CUSTOMER COMMUNICATIONS AND REACTIONS Hay says. “So the primary issues for the small partner are with volume When partners join Katalys Group, their customers must have full and with branding. The co-op branding approach, like Katalys Group, visibility into the arrangement. While the partner may keep their gives them a more impressive presence, especially for those clients that own name and brand, Katalys Group co-branding is included on are concerned about the size of the VAR that they bring in.” service invoices and in marketing content. Customers must change Hay continues: “Right or wrong, some fi rst-time customers associate the partner of record with Microsoft, requiring members to usher size with longevity and ability. While I don’t believe that has ever been the them through the process. case, it’s often the perception of the fi rst-time customer. In this economy “Customers have responded well,” Allen says. “I reached out to the cards are stacked against the small guys. Small independent partners each of them individually and explained the change. It doesn’t really off er individualized attention to customers. In my experience, smaller aff ect them directly but may benefi t them as Katalys Group expands VARs handle their clients in a much more comprehensive fashion. They services. We didn’t lose any clients.” provide individualized services, customize their methodology to fi t the As a next step, Fineman plans to add client satisfaction and upselling customer needs and follow up more consistently.” services on behalf of the partners. Customers under the Katalys Group umbrella will receive phone calls to ensure they’re receiving the care ADDING VALUE, NOT JUST STATUS QUO they expect and inform them about promotions on modules that will The ultimate goal of Katalys Group is to provide its partners with more help their business. Discussions are in fi nal stages with a preferred and better resources for customers than the individual consultant can cloud vendor, giving their partners cloud deployment options and provide on his own. Centralized job and project assistance postings driving business to the cloud provider. provide a two-way street for consultants to share work and fi nd the In terms of new client acquisition, partners believe that the Katalys best resource for project needs. Group size and partner status is a differentiator over other small “We’re not here to just keep them going as they used to, but to partners, and a fi eld leveler when competing with larger VARs. There’s elevate their services,” Fineman says. limited co-branded marketing support now, but Fineman has plans The connection to resources gives Katalys Group members a bench for signifi cant expansion of resources available to partners. of experts that can support specifi c customer project requirements. Cliff Hay, owner of Pyramid Practice Services LLC, has been involved As an affi liate service provider, S2 Technology—with 17 consultants with Katalys Group from early in its evolution. Hay, previously the vice in 14 states—helps partners meet staffi ng requirements for new and president of consulting for Microsoft Business Solutions and Great existing projects. “Katalys Group brings together a very collaborative Plains, provides strategic advice to Katalys Group members. “Competing relationship where all the partners understand the value other partners with the larger national VARs is diffi cult for smaller partners. Larger can provide,” says Craig Maurer, S2 Technology’s president. “It’s not practices have the marketing strength to be able to say they have a depth a competitive situation. Mark and Gabe have built an organization of resources, thousands of customers and structured methodologies,” where everyone understands they’re working together.”

30 Redmond Channel Partner NOVEMBER 2011 RCPmag.com Statement of Ownership, Management and Circulation Maurer adds: “They have a great model; (Required by 39 U.S.C. 3685, United States Postal Service) they have a great opportunity. Microsoft seems to be very supportive. Katalys Group 1. Title of Publication: Redmond Channel Partner gives a signifi cant number of partners that 2. Publication No. 1556-2727 were going to be in a very diffi cult situation 3. Filing Date: 9/23/11 4. Frequency of Issue: Monthly an opportunity to do something that won’t 5. No. of issues published annually: 12 aff ect their brand or their company, and their 6. Annual Subscription Price: US $39.95, International $64.95 life that they’ve been working on for the last 7. Mailing address of known offi ce of publication: 9201 Oakdale Ave., Ste. 101, Chatsworth, CA 91311 10 or 15 years.” 8. Mailing address of the headquarters of general business offi ces of the publisher: Same as above. 9. Name and complete mailing address of Publisher, Editor, and Managing Editor: EVOLVING THE PARTNER MODEL Henry Allain, President, 4 Venture, Ste. 150, Irvine, CA 92618 Parajos and Fineman didn’t start out to Dan LaBianca, Associate Publisher, 14901 Quorum Dr., Ste. 425, Dallas, TX 75254 serve partners wanting to survive Microsoft Doug Barney, VP/Editorial Director, 600 Worcester Rd., Ste. 204, Framingham, MA 01702 changes, but rather those who wanted Wendy Gonchar, Managing Editor, 4 Venture, Ste. 150, Irvine, CA 92618 to thrive and grow the business as they wanted it to be. “Selling the Microsoft soft- 10. Owner (s): 1105 Media, Inc, dba: 101communications LLC, 9201 Oakdale Ave., Ste. 101, Chatsworth, CA 91311. Listing of shareholders in 1105 Media, Inc. ware is a byproduct of the service focus of 11. Known Bondholders, Mortgagees, and Other Security Holders Owning or Holding 1 Percent or more of the Total Amount of many small partners,” Parajos says. “Mark Bonds, Mortgages or Other Securities: and I have walked in their shoes, where Nautic Partners V, L.P., 50 Kennedy Plaza, 12th Flr., Providence, RI 02903 we sold our practice to a larger partner. We didn’t want others to be forced into Kennedy Plaza Partners III, LLC, 50 Kennedy Plaza, 12th Flr., Providence, RI 02903 the same situation. We wanted to give them Alta Communications 1X, L.P., 1X-B, L.P., Assoc., LLC, 28 State St., Ste. 1801, Boston, MA 02109 an option.” 12. The tax status has not changed during the preceding 12 months. The name Katalys Group has deep meaning, 13. Publication Title: Redmond Channel Partner Fineman says. “In Greek, the term ‘kata’ means 14. Issue date for Circulation Data Below: September 2011 15. Extent & Nature of Circulation: ‘to overcome’ and ‘lysis’ means ‘fi nding a solu- Average No. Copies Each Month No. Copies of Single Issue tion together.’ Our strength in numbers helps During Preceding 12 Months Published Nearest to our members enhance the way they operate Filing Date with access to resources shared by the group.” a. Total Number of Copies (Net Press Run) 25,761 25,468 Fineman sees a potential role as incubator for b. Legitimate Paid/and or Requested Distribution individuals and partners who can get started 1. Outside County Paid/Requested Mail Subscriptions and grow their business under the Katalys Stated on PS Form 3541 22,270 22,522 Group umbrella, leaving when they’re large 2. In-County Paid/Requested Mail Subscriptions Stated on PS Form 3541 374 357 enough to stand on their own. 3. Sales Through Dealers and Carriers, Street Vendors, “Don’t mistake that we’re here to keep Counter Sales, and Other Paid or Requested everyone as they used to be,” Fineman adds. Distribution Outside USPS® 31 18 “We are forward-thinking and want to elevate 4. Requested Copies Distributed by Other Mail the professionalism of client services in the Classes Through the USPS 0 0 c. Total Paid and/or Requested Circulation 22,675 22,897 Dynamics channel.” d. Nonrequested Distribution Microsoft often refers to the partner 1. Outside County Nonrequested Copies Stated channel as an ecosystem. Katalys Group is on PS Form 3541 2,329 2,106 just one example of the creative adaptations 2. In-County Nonrequested Copies Distribution the entrepreneurial channel is making to Stated on PS Form 3541 0 0 3. Nonrequested Copies Distribution a changing Microsoft Dynamics partner Through the USPS by Other Classes of Mail 0 0 environment. • 4. Nonrequested Copies Distributed Outside the Mail 404 95 e. Total Nonrequested Distribution 2,733 2,201 Barb Levisay owns Marketing for Partners, a f. Total Distribution 25,408 25,098 g. Copies not Distributed 353 370 marketing and service delivery leadership fi rm h. Total 25,761 25,468 for Microsoft Dynamics, SharePoint and ISV i. Percent Paid and/or Requested Circulation 89.24% 91.23% partners. She serves as the event chair on the 16. Publication of Statement of Ownership for a Requester Board of Directors for the Washington, D.C., Publication is required and will be printed in the chapter of the International Association of November 2011 issue of this publication. 17. I certify that all information furnished on this form Microsoft Channel Partners. is true and complete: Abraham Langer, Senior Vice President, Audience Development and Digital Media

RCPmag.com NOVEMBER 2011 Redmond Channel Partner 31 RCP FEATURE | SALESFORCE.COM

The Salesforce.com Enterprise Social Revolution

The company that defi ned cloud-based Software as a Service is now looking to change the way workers collaborate, communicate and service their customers. By John K. Waters

32 Redmond Channel Partner NOVEMBER 2011 RCPmag.com Chatter Chatter

Chatter Chatter

esembling Steve Jobs at an Apple Inc. product launch one minute, Elmer Gantry at a gospel tent revival the next, Salesforce. com Inc. CEO Marc Benioff stalked the stage and roamed the audience as he pitched his Rcompany’s next big idea at the annual Dreamforce confer- ence. The enterprise needs to go social, Benioff declared, and Salesforce.com is the company to take it there. “We were born cloud in 1999,” he proclaimed, “but we’ve been reborn social.”

RCPmag.com NOVEMBER 2011 Redmond Channel Partner 33 RCP FEATURE | SALESFORCE.COM

BUILDING THE SOCIAL ENTERPRISE The vision is clear, but the reality is still a work in progress, Wang says. And yet, Salesforce.com appears to have “Our social enterprise vision most of the pieces it needs—and when those pieces fundamentally changes how companies come together, the result could be a game-changer in the CRM/SaaS space, both because of Benioff ’s collaborate, share and manage information.” ability to capture mindshare and his company’s Marc Benioff , CEO, Salesforce.com Inc. ever-growing partner ecosystem. “He’s gotten people excited, and he’s generated momentum,” Wang says. “But Salesforce also did two remarkable things. First, during the summer, they convinced a bunch of companies—companies like Dell, Assistly, Infor, Marekto, Eloqua—that they should align with them as partners, instead of Oracle, SAP, IBM or Microsoft. A lot of those partnering companies didn’t look that innovative, but While that has been the mantra for much of the past year, aligning with Salesforce made them innovative by association. It Benioff ’s appearance kicked into full gear the new direction for his gave them a kind of innovation quotient. And second, they insisted company, which is putting its resources behind a portfolio of tools that those partners adopt Chatter.” and services aimed at helping Salesforce.com customers leverage Chatter is the Salesforce.com Facebook-like enterprise social- social, mobile and open cloud technologies to “revolutionize” networking platform that allows employees to collaborate. Salesforce. their customer relationships. He compared this “enterprise social com sees enterprise social as the new aggregation point, Wang says, revolution” with political protests earlier this year in Egypt and much as the industry saw business intelligence 10 years ago. Tunisia, and warned of a “Corporate Spring” for companies that “By getting all these partners to bet on their standard—on Chatter,” fail to implement a social strategy. he says, “Salesforce becomes that aggregation point. In one sense, Over the past decade, Salesforce.com has largely defi ned and that’s the genius of what Marc Benioff has done.” delivered what is now known as cloud-based Software as a Service The year-old enterprise collaboration platform has emerged as (SaaS). The company has successfully built a business out of the core of the Salesforce.com social enterprise, and the company is off ering customer relationship management (CRM), help desk planning to roll out several new Chatter components. Among them: and customer support tools as a service, replacing conventional software as a means of delivering these functions. The success Chatter Now: Adds real-time chat to the platform, as well of that business has helped put it on a run rate for $2.2 billion in as presence features that allow users collaborating directly revenues for its current 2012 fi scal year, while challenging rival within Chatter to see when other users move online and offl ine. providers such as Microsoft, Oracle Corp., SAP AG and others to Users can chat and share a screen without having to exit the jump on the SaaS bandwagon. Chatter feed. Now Benioff sees enterprises deploying social-networking tools that have the look and feel of services like Facebook and Twitter, Chatter Customer Groups: Extend the social enterprise beyond yet have the facilities to enable collaboration and communication the company by allowing users to invite outside participants into in a secure environment. By bringing social-networking tools their Chatter network to collaborate in private, secure groups. to the enterprise, employees will be better equipped to access and share information and therefore better service customers, Chatter Connect: Allows users to make third-party apps according to Benioff . “social” by extending Chatter into intranets and portals, custom “Our social enterprise vision fundamentally changes how compa- mobile apps and other enterprise applications. Developers nies collaborate, share and manage information,” Benioff said. use the Chatter REST API to accomplish this integration. “By creating social customer profi les, employee social networks, A targeted version of this component aimed at Microsoft customer social networks and product social networks, companies SharePoint users also makes it possible to embed Chatter can delight their customers in entirely new ways.” feeds within a SharePoint MySite or TeamSite, and share Ray Wang, CEO and principal analyst at Constellation Research documents via Chatter. Inc., says while Benioff ’s remarks may come off like marketing hype, the Salesforce.com social enterprise push is for real. “He Chatter Approvals: A feature that makes it possible for users actually articulated a clear vision of where he sees social going to take action on any approval process from directly within their in the enterprise,” Wang says. Chatter feed. Salesforce.com cites sales discounts, hiring deci- sions and vacation requests as examples, among others—all of

34 Redmond Channel Partner NOVEMBER 2011 RCPmag.com which can be approved without leaving Chatter. The feature also being nickel-and-dimed to death. So Salesforce proposes a new incorporates context into approval processes with items such as Social Enterprise License Agreement, which provides full access to comments and documents. everything for one, all-you-can-eat price. But that price is going to be determined on a case-by-case basis, in relation to the value that Chatter Service: Designed to allow users to ask questions of the total solution provides the customer. I can see how they do that a vendor in a familiar social networking/microblogging feed for Coca-Cola, but how the heck do they do that for SMBs?” format (think status updates or tweets). The answer can come Coca-Cola Co. was, in fact, one of the companies Benioff brought from a knowledge base or a company service agent. The service onstage at Dreamforce to talk about the benefi ts of the social enterprise. can also be connected to existing public social networks, such So were NBC Universal and Walt Disney Co.—all examples of the as Facebook. kinds of large companies that will tend to command the undivided attention of Salesforce.com. The company also made its native cloud database service, “Salesforce has really evolved from its CRM roots,” McCabe “Database.com,” generally available. Announced about 10 months says. “The question is, how will the company and its partners take ago, this is a cloud-based, multitenant database of company and the business complexity out of the equation for SMBs, and will it customer contact information for CRM that was already used by give those businesses the time they need as demands from its large about 100,000 Salesforce.com customers. The company says it was customers rise?” “built from the ground up to power this new generation of social and mobile cloud applications.” The database includes features from Jigsaw, a crowd-sourced contact provider Salesforce.com BUILT-IN PARTNER MAGNET acquired in 2009. Jeff Kaplan, founder of SaaS consulting specialist fi rm THINKstrategies, Salesforce.com is billing the combo of Database.com and its Force. agrees that Salesforce.com is going to gain traction among a growing com and Heroku cloud Platform as a Service (PaaS) off erings as a number of brand-name companies with its social enterprise pitch—and, “social enterprise platform” for developers creating social, mobile in fact, it already has. Why? and open cloud applications for business. “First, because enterprises need better communication and Radian6 is another new piece of the Salesforce.com social enterprise collaboration tools for their increasingly dispersed workers, partners portfolio. The social network monitoring service, which Salesforce. and customers,” Kaplan says. “Second, this enables Salesforce.com com acquired earlier this year, is designed to track and analyze what to penetrate enterprises far beyond the sales or support teams that customers are saying about a company on social networks such as typically use its SaaS solution.” Facebook and blogs and microblogs like Twitter. The Salesforce.com social enterprise vision also has something Salesforce.com is also upping its investment in HTML5 with better of a built-in partner magnet, Kaplan says: an additional layer of support for tablets and other mobile devices via a Web site called complexity that’s likely to draw an even broader set of implementa- Touch.Salesforce.com. “You don’t get the full social package without tion partners. mobility,” Wang says. “Few enterprises have in-house skills to eff ectively implement and Touch.Salesforce.com is designed to deliver an HTML5-based manage Chatter, and [they] need help planning, designing, deploying version of a vendor’s applications for touch-based devices. Touch. and monitoring its use,” Kaplan says. Salesforce.com allows cross-platform access for all Salesforce.com applications in the cloud, including Chatter, the Service Cloud and CRM, among others. According to the company, all of the 220,000 apps built on Force.com will be mobilized via the site. Market and channel analyst Laurie McCabe, a partner at SMB Group Inc., likes the new direction of Salesforce.com but has some concerns. While she’s relatively confi dent Salesforce.com will eventually realize its vision, she “At the end of the day, this is a pretty has doubts about the company’s ability to price its good deal for the partners, who end up riding social enterprise products to serve small and midsize businesses (SMBs). along on the Salesforce brand, “They’re not really telling us how much it’ll cost but don’t have to build any of this stuff .” to become a social enterprise,” McCabe says. “One Ray Wang, CEO and Principal Analyst, Constellation Research Inc. of the problems with Salesforce has been that there’s a lot of complexity in its pricing. Everything you want to add costs more, and it can end up being pricey and complicated. People can feel like they’re

RCPmag.com NOVEMBER 2011 Redmond Channel Partner 35 RCP FEATURE | SALESFORCE.COM

In fact, the Salesforce.com decision to bet the farm on the social enterprise has serious implications for its rivals in the CRM/SaaS space, says Kaplan. Chatter itself creates “a “They’re not really telling us how much it’ll new functional dimension” that changes the competitive landscape, he says. cost to become a social enterprise. And the partner relationships have One of the problems with Salesforce has been that a defi nite impact, Wang says, such as there’s a lot of complexity in its pricing.” the Salesforce.com pact with Dell Inc., which agreed to deploy Salesforce. Laurie McCabe, Partner, SMB Group Inc. com off erings to SMBs. “Now you’ve got the whole SMB channel of Dell on the back end pushing in. It means that Dell’s channel is now selling Salesforce [and] going head-to-head with Microsoft, at least in North America.”

“At the end of the day, this is a pretty good deal for the partners, DYNAMICS CRM GETTING SOCIAL FEATURES who end up riding along on the Salesforce brand, but don’t have to For its part, Microsoft is well aware of the threat from Salesforce. build any of this stuff ,” Wang adds. “They just enable Chatter and then com, and has made substantial inroads bringing its Dynamics CRM focus on the things they’re good at, like ERP or transactional systems platform to the cloud with its latest release of Dynamics CRM 2011. or marketing. It’s really a natural alliance.” “Microsoft still has a good CRM on-demand off ering,” McCabe says. Corrine Sklar, vice president of marketing at longtime Salesforce. “They’ve caught up to a large degree in terms of CRM functionality com partner Bluewolf Inc., applauds the company’s new social with Salesforce. Now they’ve got to catch up with this whole new enterprise strategy and says her company’s customers are looking vision—the real-time feeds with Chatter and the Radian6 analytics to embrace social networking. “Companies are transforming their and having this all come together. And they also have to cope with businesses—they’re seeing a big shift in what’s happening, not just [Salesforce.com’s] huge AppExchange [online app marketplace] from the technology perspective, but in how people engage with ecosystem. They’re fast followers up there in Redmond, but I don’t each other in general,” Sklar says. “That’s the opportunity here, the see them as a leader in this space.” social enterprise that Salesforce is getting involved in right now.” Microsoft has added its own Dynamics applications marketplace, Arjun Moorthy, vice president of business development at and by year’s end the company will be introducing social-networking HubSpot, a marketing software startup in Cambridge, Mass., says capabilities to Dynamics CRM via Outlook as well as real-time his company is aligned with the Salesforce.com social enterprise activity feeds, according to Brad Wilson, general manager of vision as well. Microsoft Dynamics CRM. Wilson describes the activity feeds as “The shift [from cloud to social] is defi nitely good news,” Moorthy “kind of like Facebook.” says. “Sales and marketing teams in all kinds of businesses are The chief downside for Salesforce.com partners and customers increasingly recognizing the value of social media to their eff orts, is the evolving nature of the social enterprise concept. “Enterprise so cloud-based applications like Salesforce and HubSpot are adding social is still very fl uff y,” Wang says, “and by that I mean that the social media features. Standalone marketing applications that lack real-world use cases are not yet widely understood. A lot of people social media integration lose out on the rich and speedy information are talking about social enterprise in terms of, ‘Oh, I’m on Twitter,’ source that social media can be.” or, ‘I’m on Facebook.’ But that’s not really where the real work is. Moorthy says his small company gets lots of support from Salesforce. Salesforce has won the battle for mindshare, but the reality is that com, including technical resources on product integrations and guid- they still have to address role-based security, and they still have to ance on joint marketing activities. He points to a recent webinar fi gure out what happens when you tie diff erent applications together collaboration that “drove a slew of sales,” and HubSpot’s Dreamforce that have diff erent levels of process granularity. It’s a good start, but presence, which drove more than 2,000 leads. there’s a ways to go yet.” • “If you’re a Salesforce partner, you’re ahead of the curve on the Kurt Mackie contributed to this story. social enterprise,” McCabe says. “Even though at the end of the day I’m sure this stuff is not quite as ready-for-prime-time as Salesforce would like us to believe, they’re probably further along than their John K. Waters is a freelance writer based in Silicon Valley, Calif., and competitors. And they’re certainly further along in selling the vision editor at large for ADTmag.com. He’s author of the book, “The Everything than their competitors.” Guide to Social Media” (Adams Media, 2010).

36 Redmond Channel Partner NOVEMBER 2011 RCPmag.com ON GROWTH BY MIKE HARVATH

VISIT RCPMAG.COM FOR HARVATH’S PREVIOUS COLUMN ON SUREFIRE WAYS TO TELL AN M&A Secrets to WILL FAIL M&A Success RCPMAG.COM

5. Bypass the “for sale” signs. Ferociously avoid those seductive, tempting but distressed tactical properties in favor of ferreting out those hidden “not Begin with the end in mind and know what for sale” gems. This means you’re going to have to dig a little deeper and spend a little you want and need before you buy, based more time locating these pearls, but the on your overall long-term growth strategy. wait and the work will be justifi ed. 6. Beware the “winner’s curse.” This n the September issue I looked spirit of fellowship, companies like ours) means the excessive premium paid for a at the dark side of how not to with a proven track record in navigating property, spurred on by the emotional take on an M&A project with my the treacherous terrain of M&A. and irrational exuberance of the “deal” columns, “Want Your M&A to Fail? 2. Know when you’re ready for an that, down the road, wipes out any gain Here’s How.” It identifi ed some of M&A. Generally it’s when your revenue you hoped to achieve. theI pitfalls that, in our experience, will is more than $5 million; you’re growing 7. Paint a vivid picture of the ideal generally get an M&A project off -track at least 10 percent per year; you have a prospect. Look for the company that fi lls and often shelved. of 50/50 project/staff work; your the white space in your operation, and This month I’m going after the brighter, business processes are well-defi ned; don’t waver from this profi le. This is the glass-half-full side of the right way to your business units are aligned; you’re time to be realistic and specifi c. approach and implement an M&A transac- fi nancially healthy with little long-term 8. Don’t buy capability. Buy opportu- tion. The brighter side starts with why debt; you’re successfully scaling the nity; buy the future. you’d want to do an M&A in the fi rst place. business organically now; and you’re in a 9. Close enough is not enough. A There are many smart, sound and strategic position to take a risk. perfect fi t is enough. reasons for doing so. Among them are: 3. Know what you can afford. As a rule 10. Know the valuations. Right now, ✱ Access to new management or tech- of thumb, most IT services fi rms can buy prices are up about 10 percent versus nical talent, to new intellectual property, companies about one-half their size and a year ago, and this trend is likely to and to new markets and customers assimilate them comfortably. In most continue for the next couple of years. ✱ Improved earnings and sales stability cases this size can be reasonably fundable 11. The real work comes after the ✱ Growth in market share in the sectors through debt and cash fl ow. courtship. It’s not enough to close the in which you compete We’ve managed bigger deals where deal and leave the integration to others. ✱ Enhanced reputation in the companies were buying fi rms of equal or In fact, most of your blood, sweat and toil marketplace or with stakeholders even greater size, but these are more the should be directed to your post-acquisi- ✱ Reduction of operating expenses, exception to the rule. In some cases, more tion strategies and implementation. realizing economies of scale and of scope risk-tolerant executives will take on a 12. Be ready to walk away. This is the ✱ Competitive insulation larger acquisition if the selling company cardinal rule of all negotiations, and it ✱ Attracting, retaining and rewarding has solid retained earnings and a applies to M&A as well. The best way to key employees suffi cient base of annuity income. Private ready yourself for both the pursuit of an These are all good things indeed. So, equity and venture money is available for acquisition and the need to break away with that established, let me off er a more aggressive acquisitions. from one if necessary is to keep your sampling of a dozen lessons that we’ve 4. Have a roadmap. Begin with the emotions in check. • deposited in our intellectual M&A bank. end in mind and know what you want 1. Hire a Sherpa. Enlist the services of a and need before you buy, based on your guide (and yes, that would be us, or in the overall long-term growth strategy. Mike Harvath is CEO of Revenue Rocket Consulting Group, an IT services growth consultancy. You can reach him at at Next Time: Partner Expansion and Management Strategies [email protected]. ILLUSTRATION BY JILLIAN SCHNARE

RCPmag.com NOVEMBER 2011 Redmond Channel Partner 37 CHANNEL CALL BY KEITH LUBNER

VISIT RCPMAG.COM FOR LUBNER’S LAST COLUMN ON GETTING The ABCs of a BACK TO THE Productive Channel RCPMAG.COM

Today’s business climate requires resellers to think outside the box with their marketing. With this said, those This isn’t rocket science. Lay out a plan resellers who have started implementing by week, by month, by quarter and by year campaigns around thought leadership are doing exactly that. Creating a natural for all of your communications and then “gravity” of customers to the reseller execute that plan. requires the market to view the reseller as an expert in something. The key here ast month we discussed the than those at a slightly higher seat-count is that this is a campaign, not a one-time things that must be level. This was the reality of the sales event or single e-mail. addressed with a channel. process and partners need to map In order to be truly eff ective with all Recently, we completed a into the reality. your marketing, you must make sure you really fantastic project with Let’s assume you’ve given your sales plan it out. You should include everything theL Cloud Champions group within the folks great compensation plans and from weekly e-mails and promotions to Microsoft U.S. subsidiary. The purpose that you’ve aligned your sales processes. your more-involved and multipronged of this project was to help partners The next basic thing you need to do is thought leadership campaigns. Recently, accelerate into (and through) the cloud align your personnel to their strengths. we surveyed several resellers and we by focusing on sales, marketing and If a salesperson is better at complex were quite surprised by the number of operational tactics. Like this project, sales, make sure she’s involved with them who didn’t thoroughly plan their companies should really get back to the products and services that are more marketing over the next month, quarter basics with their sales, marketing and complex. Conversely, if a salesperson has and year. Master this basic task and you’ll operations. a propensity for subscription-oriented be ahead of the curve. The reason is this: Perfect execution of opportunities, make sure that person the basics will create highly productive represents products and services Operational Basics organizations. to match. If you can’t measure it, you can’t manage it. Ever hear that phrase? If not, then Sales Basics Marketing Basics commit it to memory because it holds If you really want your sales revenue to Good marketing drives sales. I would add a lot of truth! When referencing the soar, you’ll need your salespeople to be one more word to that statement and work in the cloud area, it became utterly fi ring on all cylinders. In order for that’s “consistent”: Good and consistent apparent to us that resellers needed to this behavior to be occurring, make marketing drives sales. In order for put in place the necessary mechanisms to sure your compensation plans are marketing to really work, it must be analyze their eff ectiveness in selling and robust and that you’re rewarding the consistent and must create cadence week marketing, because the cloud paradigm correct behaviors. over week and month over month. This necessitated this. List all the important Next, take a detailed approach to your isn’t rocket science. Lay out a plan by sales and marketing indicators for your sales processes and make sure these week, by month, by quarter and by year business and then start tracking them. processes map to reality. For instance, for all of your communications and then It’s that simple. • in moving to the cloud, the reality was execute that plan. Regarding that cloud that up to a certain seat level, Microsoft project I’ve mentioned, resellers who had partners needed to quickly qualify and a marketing plan laid out as described Keith Lubner is managing partner of Channel then submit a proposal, as customers at here were producing more leads than Consulting Corp., a global consulting that particular threshold acted quicker resellers who didn’t. organization focused on channel strategy, design, enablement, outsourcing and training for growing companies. You can reach him at Next Time: Accelerating Channel Plans for 2012

[email protected]. ILLUSTRATION BY JILLIAN SCHNARE

38 Redmond Channel Partner NOVEMBER 2011 RCPmag.com FREE WEBCASTS!

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Partners Need a Strategic Plan for Moving to the Cloud

hannel partners are often to the cloud is not proving to be a cake- development platform capacity and urged to start thinking about walk for all channel partners. About one selling white label solutions. how they’re going to move in three channel partners said they had The most prevalent model off ered their businesses to the cloud, either an incomplete or no roadmap for by the channel to date is cloud hosting, whether it’s off ering hosting, transitioning to a cloud-based business. according to CompTIA. On a cautionary infrastructureC services, application Smaller VARs in particular, those with note, the report warns that partners integration or Software as a Service less than $10 million in annual revenues, should be wary of the potential for (SaaS). admitted to winging it rather than having hosters of datacenters to go direct to There’s a myriad of predictions of seismic a strategic plan in place. According to the customers. cloud computing growth such as the IDC report, the most signifi cant transition The sweet spot for the channel, accord- forecast that the use of public cloud services challenges were business-focused issues ing to 60 percent of the survey’s respon- will account for 46 percent of net new such as: dents, are integration and deployment expansion in IT spending by 2015. ✱ Determining the right revenue services and managed IT services. Nearly As for the channel, a recent survey model 80 percent of VARs surveyed said they of partners by CompTIA found that 48 ✱ The amount of time and cost needed off er cloud management and monitoring percent plan to increase their cloud to invest in cloud-based training of sales services with 11 percent saying they plan investments by 10 percent to 15 percent and technical staff to off er them within the next 12 months. over the next year. ✱ Choosing the right vendor partners Among the biggest challenges The prognosis for selling cloud services ✱ Cash fl ow and fi nancial associated with moving to the cloud was over the next year looks robust as well. considerations sales compensation, the study concluded. Some 61 percent of those surveyed said ✱ Deciding how much to invest in Two-thirds of VARs and distributors said they expect cloud revenues to increase, initial costs moving from lump sum commissions while 24 percent are forecasting they will There’s no dominant model of to compensation based on recurring signifi cantly increase. The remaining cloud business among those in the revenue has had the most impact on sales 15 percent are predicting revenues will channel, but rather a wide variation organizations. To ease the transition, 60 remain the same. It’s worth noting that of services offered. Among them are percent of those surveyed said they opted 46 percent of those surveyed already off er cloud hosting, offering managed for sales and business training as well as hosting services. hosting environments, reselling SaaS cloud training. • That said, a report released in offerings, reselling Infrastructure as How are you making the transition to the cloud? September based on the survey by a Service (IaaS) offerings, developing Drop me a line at [email protected]. CompTIA pointed out that transitioning and selling cloud apps as an ISV, selling

Jeff rey Schwartz is executive editor of Check out the Schwartz Cloud Report blog at RCPmag.com/CloudReport

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PARTNER’S GUIDE TO SQL Server 2012 The new release is on the horizon after a year of anticipation and preparations by Microsoft partners to migrate their customers. By Pedro Pereira

t isn’t a new iPod or Windows OS, but the database platform to real-world customer scenarios. upcoming SQL Server 2012 release has Microsoft is positioning SQL Server 2012, formerly generated a respectable amount of excite- code-named “Denali,” as a fundamental piece in ment, as Microsoft partners and ISVs envi- customers’ eff orts to make sense of what has become sion how to apply the new features of the known as “big data”—the mind-boggling volumes

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RCPmag.com NOVEMBER 2011 Redmond Channel Partner 1 PARTNER’S GUIDE TO SQL SERVER 2012

of data that businesses generate within, and receive from customers manage big data, the vendor said it has invested outside, their firewalls from an increasing diversity of in an Apache Hadoop-based distribution for Windows Server devices. With SQL Server 2012, the vendor promises to and its cloud-based Windows Azure platform. enable users to gain quick insights from all that data to “The next frontier is all about uniting the power of the cloud make strategic business decisions. with the power of data to gain insights that simply weren’t With its “any data, any size, anywhere” mantra, the Redmond possible even just a few years ago,” Ted Kummert, corporate giant says it’s putting tools in the hands of customers to meet vice president of the Microsoft Business Platform Division, emerging challenges and seize new opportunities. Customers said during the event. “Microsoft is committed to making will be able to use the SQL platform and related applications this possible for every organization, and it begins with SQL no matter their confi guration scenarios, from premises-based Server 2012.” solutions to public, private or hybrid cloud environments, to a combination of all of those. TAKING IT ALL IN “This is the most signifi cant release we’ve had of the product, It has been almost a year since Microsoft announced the with hundreds of new features,” says Doug Leland, Microsoft next SQL Server release, general availability (GA) of which general manager of product management for SQL Server. the vendor now says will take place in the fi rst half of 2012. In the meantime, Microsoft partners and ISVs have been digesting information about the release, and a good number of them have evaluated betas and CTPs of the product.

“The next frontier is all about uniting the power of the cloud with the power of data to gain insights that simply weren’t possible even just a few years ago.” Ted Kummert, Corporate Vice President, Business Platform Division, Microsoft

As SQL Server 2012 is a signifi cant upgrade, partners believe customer migration will kick off shortly after GA because the release has plenty of features customers want. Early adopters are sure to waste no time in leveraging the platform’s new capabilities. Of course, many other customers will stick with their three- or four-year replacement cycles, while others will Though the release is still months away, Leland says resist change as long as they can. hundreds of customers are going into production in the Leland believes those most impatient to get their hands current Community Technology Preview (CTP) 3 of the on SQL Server 2012 are customers planning to run mission- product. Those customers include Mediterranean Shipping, critical applications on SQL, business intelligence (BI) Pilot Travel Centers and Great Western Bank. Having custom- customers who want added analytic capabilities, and those ers working off CTP versions is nothing new, says Leland, running hybrid cloud environments who want to leverage “but we’re certainly in a higher volume state than we have the Windows Azure platform. been historically.” New features include Power View (formerly known as Microsoft announced the database release’s formal name “Crescent”), which enables Web-based methods of viewing in October during PASS Summit 2011, an annual gathering data; AlwaysOn, which delivers more reliable data backup in Seattle of database developers and channel partners. To and recovery; and columnar indexing, which accelerates data emphasize its commitment to cloud computing and to help warehouse queries while reducing I/O strain.

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1. RCP Reader Survey 2. Redmond Magazine Reader Survey PARTNER’S GUIDE TO SQL SERVER 2012

For developers, a new set of developer tools called SQL Server interest testifi es to how far the platform has come. Once the Data Tools, formerly code-named “Juneau,” is very attractive. It new kid on the block fi ghting for a place among database extends BI capabilities and provides an IDE that makes develop- giants Oracle and IBM, SQL has found its way to a majority ing and debugging easier, say developers. of database environments, often cohabitating with competi- tors’ products. YOU’VE COME A LONG WAY, BABY “The database has improved,” says John Salch, vice With 500 million users around the world, a new SQL Server president of technologies and platforms at PROS Holdings release is unquestionably a big deal. But when you think Inc., a Houston-based developer of pricing and revenue about it, that a SQL Server release can generate so much management software. “I’ve seen in the last five years a

SQL SERVER 2012: REASONS FOR MIGRATING SHUTTERSTOCK

With a SQL Server installed base of about 11 consultant at SQL Sentry Inc., a provider have greater operational control. million, a new release should generate swift of SQL-focused remote-monitoring tools And, of course, there is the cloud. new business for Microsoft. But businesses based in Huntersville, N.C. Bertrand is a Microsoft is promising a “cloud-ready” often resist new releases because they like recipient of the Microsoft MVP award and solution that supports the vendor’s vision to stick with what they know. has been testing SQL Server 2012 for the for the future of IT: a hybrid world with on SQL Server 2012, formerly code-named past year, sending feedback to Microsoft premises-based solutions coexisting and “Denali,” however, has generated plenty based on his fi ndings. interacting with resources in the cloud. of buzz since the vendor announced its Microsoft is packing the new release planned release a year ago—so much so with features the vendor hopes will Ready, Set … Hang On that many partners and observers believe resonate with developers, users and Businesses often resist migrating to a decent number of SQL Server customers partners alike. Those features include a new new releases for various reasons: budget will start migrating quickly. That’s because set of developer tools; security and disaster constraints, comfort with their existing SQL Server 2012 is the most comprehensive recovery enhancements; Web-based, version, doubts about the value of migrat- revamp of the platform since 2005. interactive data-viewing capabilities; and ing. “Upgrading a product like SQL Server “Denali, compared to all of those previ- columnar indexing. With these features, usually requires testing of applications that ous versions, is way bigger than 2005 over Microsoft says that developers of may entail thousands or even millions of 2000, and that’s saying a lot because 2005 SQL-based applications will be able to work lines of code. This time and cost can dwarf was huge,” says Aaron Bertrand, a senior more productively, and IT professionals will the cost of the upgrade itself,” says Frank

4 Redmond Channel Partner NOVEMBER 2011 RCPmag.com big improvement in performance, the completeness of the Douglas McDowell, CEO of North America at SQL-focused IT feature set and the BI capabilities.” consultant SolidQ, says customers are making bigger and bigger As a result of those improvements and a decision by PROS in investments in SQL solutions. “SQL Server is more accepted the mid-2000s to make the Microsoft partnership strategic, Salch now,” says McDowell, who is also a Microsoft MVP. “It’s becoming says his company in the last fi ve years has enjoyed signifi cant the norm rather than the exception.” SQL-related business growth. PROS, he says, maps the develop- Kevin E. Kline, an MVP and technical strategy manager at ment of its own applications to Microsoft’s SQL Server evolution. Quest Software Inc., which makes tools to measure perfor- “We’ll be ready to go on the day Denali is released,” he says. “We mance of SQL systems, says a major shift in attitude toward the have capabilities that will be enabled based on Denali capabilities.” Microsoft database has taken place over the years.

Imburgio, president of Desktop Solutions reason Microsoft partners can give their “Today there’s a fi xed set of roles,” says Software Inc. in Commack, N.Y. customers to migrate. Bertrand. “What happens in a lot of cases Still, early adopters will fi nd value in in companies that have a lot of users is each new business intelligence (BI) features, Column Sense has their own login. It’s cumbersome.” improved developer tools and Web-based Another new SQL feature expected to In SQL Server 2012, user permissions data-viewing capabilities. For the most resonate is ColumnStore Index, which accel- can be handled as a package, rather than part, however, companies will stick with erates data warehouse queries. It provides individually, which makes it easier for their replacement cycle plans, says Douglas storage savings and performance gains as a database administrators to manage security. McDowell, an MVP and CEO of North result of reduced I/O strain, says Bertrand. America at SQL-focused IT consultant “I/O is always the biggest bottleneck in a What Else SolidQ. “If what they have isn’t broken, SQL Server system,” he explains. Other new features include SQL Server most folks won’t be moving,” he says. Column-level compression within the Data Tools, a set of developer tools formerly For those who do move, there’s plenty database engine treats each column as its code-named “Juneau,” which, according to to look forward to in the new release. For own index, thereby alleviating I/O strain. Bertrand, “gives you the ability to target one thing, they’ll get higher availability and According to Eric N. Hanson, program SQL Azure as your platform. It also has a more robust disaster recovery capability manager in the Microsoft SQL Server much easier database engine to use for local with a data-replication feature called query-processing team, columnar indexing development and debugging.” AlwaysOn. The capability will improve provides a signifi cant performance boost, A new feature called Power View, uptime and reliability, says Bertrand. benefi tting users and IT workers alike. formerly code-named “Crescent,” provides Unlike your typical data-replication “This can allow end users to get more an interactive, Web-based method of solution, which allows for one failover business value from their data through viewing data. “Crescent is very exciting,” partner, AlwaysOn allows up to four fast, interactive exploration. IT workers says John Salch, vice president of technolo- database replicas, thereby giving SQL can reduce development costs and ETL gies and platforms at PROS Holdings Inc., a customers a confi dence boost in the safety [extract, transform and load] times since Microsoft strategic partner and developer of their data. Bertrand envisions a scenario ColumnStore Indexes limit or eliminate of pricing applications. “It brings some in which a company will use AlwaysOn to the need to rely on pre-built aggregates,” capabilities that business users will really set up two replicas in a local datacenter and Hanson wrote in a technical paper preview- appreciate. It gives them the ability to make two more in separate remote locations. ing SQL Server 2012. PowerPoint interactive.” “You can actually have more eggs in more The promise of increased productivity at Last, a new cloud service code-named baskets,” he says. the user level and the IT department should “Atlanta” proactively monitors SQL Server SQL-related blogs have buzzed for help Microsoft partners make a case to deployments to help prevent confi guration months about this feature, with observers clients for migration. Also helpful in this way issues and downtime, while improving calling it perhaps the most compelling are the security changes in SQL Server 2012. performance. —P.P.

RCPmag.com NOVEMBER 2011 Redmond Channel Partner 5 PARTNER’S GUIDE TO SQL SERVER 2012

“For the fi rst several years of my work at Quest, I was as McDowell says SolidQ is working with a major international much an evangelist for SQL Server as I was a technologist broadcaster to analyze information posted by readers on the for Quest products,” says Kline. “I had a lot of discussions company’s Web-based message boards, forums and comment with C-level executives to persuade them that SQL could forms. The broadcaster processes millions of posts yearly and hold its own. I don’t have nearly as many discussions about wants to make sure users follow house rules. that today.” “Human moderators are well-trained; they work review- Despite the advances of SQL Server, Salch says he still encounters resistance from some enterprise customers who wonder if the platform can handle an enterprise

“This is the most signifi cant release we’ve had of the product, with hundreds of new features.” Doug Leland, General Manager, Product Management for SQL Server, Microsoft

application such as PROS. “We come in and explain to them they can run PROS on a SQL database and the price point will be lower,” Salch says. “We do performance proofs of concept to help them understand what we’re doing is real. Once they realize that, then they start thinking about their overall platform choices and that SQL Server can support all their applications.” ing the posts and fail or ban posts that don’t follow the rules,” says McDowell. “Due to the number of posts, they GOT SQL? aren’t able to moderate all of them.” Using SQL Server Salch says PROS has been working with some customers on data-mining capabilities, the broadcaster has put a system innovative confi gurations that harness the power of SQL in place that identifies potentially risky posts that should features. One customer, a distributor, is leveraging BI capa- be moderated. bilities to build reports and PowerPoint slide decks from the “The system in place doesn’t do automatic moderations,” company’s data with information specifi c to individual jobs says McDowell. “It identifi es risky posts, moving them to the or departments. Employing BI tools, users can pinpoint the moderator’s queue that’s moderated by humans. With SQL precise information they seek from the growing volumes of Server data mining, they’re able to reduce the queue by half, data the company processes with a reduced number of steps moderating only those posts that are more risky.” and minimal chance of error. In another SQL implementation, Microsoft customer For another customer, Salch says, PROS has automated Flavorus, a Web-based event ticket seller, is leveraging functionality in Microsoft Sharepoint, a SQL database and PROS’ cloud-based technologies to sell tickets to events with large own application so that users can work off Excel spreadsheets numbers of attendees—150,000, in one case. To handle without going to the PROS interface to build reports. From Excel, the volume, Flavorus chose to host its ticketing applica- users can automatically tap the PROS application to effi ciently tion on the Windows Azure platform. The application build pricing reports and customer quotes. The system enables had been built with SQL Server 2008 data-management data analyses on pricing per customer and customer segment, software, and Flavorus decided to use a SQL Azure cluster so that the quoted price is competitive without giving away for storage. SQL Azure is a cloud-based version of the the farm. database platform.

6 Redmond Channel Partner NOVEMBER 2011 RCPmag.com IT CAN DO THAT? Even though an increasing number of customers are “For the fi rst several years of taking advantage of the myriad SQL capabilities and my work at Quest, I was as cloud support, Microsoft partners often have to fight what Kline calls “apathy” among users. That’s the tenden- much an evangelist for SQL cy among users to settle for what comes out of the box, Server as I was a technologist rather than learning about other capabilities and how for Quest products. I had a lot they can help the business. “Now my biggest evangelism of discussions with C-level is against apathy,” Kline says. As an example, Kline says IT techs typically spend their executives to persuade them time putting out fi res when they should let the technology do that SQL could hold its own. the work of fi guring out issues through built-in monitoring. I don’t have nearly as many Their jobs are reactionary because they’re often called on to troubleshoot systems and applications. “I’m trying to promote discussions about that today.” the idea because people just don’t get it: Rely on the tool to tell Kevin E. Kline, Microsoft MVP and Technical Strategy you when something needs to be fi xed.” Manager, Quest Software Inc. McDowell says customers often buy SQL for a specifi c single use. “They’re not fully leveraging everything they now have. They don’t even know about it,” says McDowell, citing StreamInsight as a case in point. StreamInsight is a BI tool for analyzing large Salch says interest in cloud-based applications is picking up data volumes from various sources. among customers, and PROS has started off ering cloud versions Salch says the inattention to product capabilities is more of its software. He believes on premises-based applications aren’t common among business users than with IT techs. The latter going anywhere—not for the time being. Still, Salch says PROS have to manage the system, know its capabilities and leverage is keeping an eye on the evolution of SQL Azure. them to get the most out of IT investments. Business users, McDowell says a lot of private cloud implementations are however, are more narrowly focused on their tasks. “Once users underway, and he believes that is where most cloud-related realize a [certain feature] is there and how it aff ects their end activity will take place for a while. SolidQ is off ering customers work, they adopt it very quickly,” he says. Windows Azure feasibility roadmap assessments to help them The SQL Server 2012 Power View feature, for instance, will fi gure out whether they’re ready for the cloud. likely go unnoticed for a while. “I think customers probably Typically, McDowell says he finds that C-level execu- won’t see that right off the bat. Once they realize they have it, tives have more interest in the cloud than their workers they’ll need it and think they can’t live without it,” Salch says. have. That’s because the executives have looked at the The challenge for PROS and Microsoft itself is to demon- spreadsheets and seen how cloud solutions can save them strate to users how a database makes their life easier. This money. The workers, meanwhile, are saying, “OK, I’ve been is where McDowell says Microsoft partners prove their told we need to get in the cloud but I don’t know what it value: leveraging their expertise on the platform, they can means and how to do it,” he says. connect the dots between what the technology does and Microsoft’s Leland says the transition to cloud-based how that helps customers address business problems, cut environments will be an evolution, rather than revolution. costs and add revenue. Microsoft’s strategy is to allow customers to move at their own pace while giving them the technology options to support CLOUDY FORECAST them, no matter their decisions. SQL Server 2012, he says, One of the biggest questions about Microsoft’s direction fully supports this strategy. • with SQL Server 2012 is whether customers are ready to take advantage of the cloud-related features. Will custom- ers abandon on premises-based SQL confi gurations for SQL Pedro Pereira is a freelance writer and editor with nearly two Azure or leverage the links between the new release and the decades of experience writing about IT and the channel. He can be Windows Azure platform? reached at [email protected].

RCPmag.com NOVEMBER 2011 Redmond Channel Partner 7 Dell helps keep your business up and running Dell™ PowerEdge™ Servers and Microsoft® SQL Server® 2008 R2 support your mission-critical databases and applications

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