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Untitled-1 1 6/29/11 11:38 AM VOLUME 6 ✱ NUMBER 7 ACT HIGH-WIRE he sees for in yearpartners two. the huge opportunities switchover—and ﬁ executive, talksaboutthechallengesofhis Jon Roskill, top channel Microsoft’s rst year—the cloud transition, the MPN cloud transition, the MPN rst year—the Why ‘Mango’ Matters Cloudfor SMBs Converge Services ✱ CloudandSolid ✱ Offi 8’ to‘Windows React✱ Partners PLUS ✱ Intel’s Hybrid ce 365 Review RCPmag.com ✱ July 2011 BETTER BUSINESS INTELLIGENCE AT A BETTER PRICE UP TO 72% LESS

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Inside JULY 2011 ✱ VOLUME 6 ✱ NUMBER 7 20 DEPARTMENTS 11 Channel Report BUSINESS: From Lifestyle to Growth ...... 11 SHARE: Windows 7 Use Grows to One-Third of OS Global Market ...... 12 HARDWARE: 4 Killer Windows Devices ...... 13 TRENDS: The End of Device-Based Licensing? ...... 14 CLOUD: Oracle Databases Come to Amazon Web Services ...... 14 DEALS: Hoster Intermedia Bought by Private Equity Firm ...... 16 MOBILE: Apple’s ActiveSync Momentum ...... 16 MERGER: Cloud Sherpas Acquires Omnetic ...... 18 “The solution incentive program ... puts CLOUD: San Francisco Moves E-Mail real meat behind the gold competency. to Exchange Online ...... 18 It starts to provide additional revenue opportunities for partners that are able to COLUMNS go off and achieve that gold competency.” ON GROWTH: Mike Harvath Cursed with Growth ...... 45 CHANNEL CALL: Keith Lubner Turn Cloud Opportunity into Action ...... 47 CHANNELING THE CLOUD: Jeff rey Schwartz Intel Taps Hybrid Clouds for SMBs ...... 48 FEATURES 20 Hire-Wire Act In an exclusive interview with RCP, Jon Roskill, Microsoft’s top SPECIAL PULLOUT SECTION channel executive, talks about the challenges of his ﬁ rst year and the huge opportunities he sees for partners in year two.

28 Energized by ‘Windows 8’ Citing “cool” factor, partners see the next OS interface as unifying Microsoft’s platforms. 34 Same Grid, New Buildings In interviews at Microsoft Convergence, partners and customers are ﬁ nding the cloud is just one more reason to re-emphasize good old-fashioned services. PARTNER’S GUIDE TO VIRTUAL SECURITY 40 Review: Offi ce 365 As virtualization proliferates, expertise in With its much-anticipated suite, Microsoft is providing solid locking down hypervisors, virtual machines and value at many diff erent price points. virtualized desktops is becoming critical. By Scott Bekker

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

RCPMAG.COM + JULY 2011 + VOLUME 6 + NUMBER 7

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

@RCPmag.com ART STAFF Creative Director Scott Shultz Senior Graphic Designer Joshua Gould EXCLUSIVELY ONLINE BLOGS PRODUCTION Director, Print Production Jenny Hernandez-Asandas RCP MAGAZINE ON LINKEDIN Production Coordinator Charles Johnson Be sure to join the Microsoft Partner Group for Redmond RCPU ONLINE/DIGITAL MEDIA Channel Partner magazine. Join Site Editor Gladys Rama a current discussion (“Why is Stay tuned to channel Editor, RCP Update Lee Pender SharePoint’s potential beyond news with the Redmond Director, Online Media Becky Nagel Online News Editor document sharing diffi cult to Channel Partner Update Kurt Mackie realize?”) or start your own and Associate Web Editor Chris Paoli have your questions answered by e-mail newsletter, written Site Administrator Shane Lee fellow readers and RCP editors. by Lee Pender. Designer Rodrigo Muñoz linkd.in/mDe63s ADVERTISING AND SALES Associate Publisher Dan LaBianca MICROSOFT ROADMAP UPDATES ON KEEPING WINDOWS 8 ON TABLETS, OFF OF PCS Don’t forget that the RCP Microsoft Account Manager Danna Vedder Sure, IT administrators and other pros love Windows 7. That’s Sales Manager Al Tiano editors continue to update the cool. I get that. But as a consumer and a low-level offi ce Advertising Sales Associate Tanya Egenolf Microsoft Product Roadmap as (and Offi ce) user, all I want from an OS is pretty much what I new announcements are made want from other people’s kids: to be seen and not heard, and throughout the year. Recent addi- preferably to not be seen all that much, either. Just leave tions include Offi ce 365, Windows me alone. I have a feeling that most consumers—and, really, President Henry Allain Vice President, Publishing Matt Morollo 8 and Microsoft Dynamics CRM 11. we’re all consumers on some level—feel the way I do. RCPmag.com/PenderA0711 Director, Marketing Michele Imgrund RCPmag.com/Roadmap2011 Online Marketing Director Tracy Cook

WINDOWS MOBILE 6.X ON WHY WE’LL NEVER SEE ANYTHING LIKE THE PHASEOUT PLANS MICROSOFT ANTITRUST CASE AGAIN With Windows Mobile 6.5.3 But we look at the withering of Microsoft from terrifying President & Neal Vitale titan to mere giant from a broader perspective. The reason Chief Executive Offi cer being the last Windows Mobile Senior Vice President & Richard Vitale OS Microsoft releases, users will Microsoft isn’t an antitrust threat anymore is because other Chief Financial Offi cer be moved to the Windows Live companies have out-innovated the folks in Redmond, and Executive Vice President Michael J. Valenti SkyDrive storage service and the ’Softies, by contrast, have under-innovated in recent years. We haven’t forgotten, as many seem to have, that Microsoft Senior Vice President, Abraham M. Langer Windows Mobile 6.x support is Audience Development scheduled to end in about 1.5 years. bailed out Apple ﬁ nancially in 1997 when the hipster company & Digital Media was on the brink of extinction. RCPmag.com/Mackie0711 Vice President, Christopher M. Coates RCPmag.com/PenderB0711 Finance & Administration Vice President, Erik A. Lindgren Information Technology BY THE NUMBERS & Application Development Vice President, Carmel McDonagh Attendee Marketing A Little Air Goes Out of the PC Market Vice President, Event Operations David F. Myers

With the benefits of half a year’s Previous Forecast New Forecast Chairman of the Board Jeff rey S. Klein data, analysts at Gartner Inc. revised their 2011 PC forecast Reaching the Staff downward, below the double- 10.5% 9.3% Staff may be reached via e-mail, telephone, fax or mail. digit threshold. A list of editors and contact information is also available online at Growth Growth RCPmag.com. E-mail: To e-mail any member of the staff , please use the SOURCE: “GARTNER PC AND MEDIA TABLET FORECAST UPDATE, 2Q 2011” following form: [email protected] Framingham Offi ce (weekdays, 9:00 a.m. – 5:00 p.m. ET) Telephone 508-875-6644; Fax 508-875-6633 Redmond Channel Partner (ISSN 1556-2727) is published monthly by 1105 Media, Inc., 9201 Oakdale Avenue, Ste. 101, Chatsworth, CA 600 Worcester Road, Suite 204, Framingham, MA 01702 91311. Periodicals postage paid at Chatsworth, CA 91311-9998, and at additional mailing offices. Complimentary subscriptions are sent Irvine Offi ce (weekdays, 9:00 a.m. – 5:00 p.m. PT) to qualifying subscribers. Annual subscription rates payable in U.S. funds for non-qualified subscribers are: U.S. $39.95, International Telephone 949-265-1520; Fax 949-265-1528 $64.95. Annual digital subscription rates payable in U.S. funds for non-qualified subscribers are: U.S. $39.95, International $39.95. 4 Venture, Suite 150, Irvine, CA 92618 Subscription inquiries, back issue requests, and address changes: Mail to: Redmond Channel Partner, P.O. Box 2166, Skokie, IL 60076-2872, Corporate Offi ce (weekdays, 8:30 a.m. – 5:30 p.m. PT) 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 Telephone 818-814-5200; Fax 818-734-1522 Mail Agreement No: 40612608. Return Undeliverable Canadian Addresses to Circulation Dept. or IMS/NJ. Attn: Returns, 310 9201 Oakdale Avenue, Suite 101, Chatsworth, CA 91311 Paterson Plank Road, Carlstadt, NJ 07072. Copyright Statement: © Copyright 2011 by 1105 Media, Inc. All rights reserved. Printed Redmond Channel Partner 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 The opinions expressed within the articles and other contents magazine has not undergone any formal testing by 1105 Media, Inc. and is distributed without any warranty expressed or implied. herein do not necessarily express those of the publisher. 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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Why ‘Mango’ Will Matter BY SCOTT BEKKER

n mid-May, Microsoft seemed to be going nowhere in the smartphone and tablet market. Key developers were leaving, Windows Phone 7 share continued to fall and the silence on Microsoft’s tablet plans remained deafening.

What a diff erence a month makes. Since that time, Microsoft have Mango-ready handsets ready for the Mobile Business President Andy Lees previewed the next release fall launch. of Windows Phone 7, code-named “Mango,” and several execu- It’s an open question whether the tives simultaneously showed off the tablet-focused interface of massive Symbian user base will follow I“Windows 8.” Nokia to the Windows Phone 7 platform Windows 8 is hugely important, and we’ve devoted an entire (and it’s not clear that Nokia CEO Stephen feature article to partners’ reactions to the UI, which is widely Elop can keep his job long enough to described as the biggest change to the UI since Windows 95 (see execute the strategy amid shareholder “Energized by ‘Windows 8,’” p. 28). In this space, though, I’d like and employee discontent). Nonetheless, to lay out three reasons why I think Mango will ﬁ nally move the Mango is now the stage upon which this needle for Microsoft in the smartphone market this fall. partnership will either succeed or fail Tile-and-App UI: Windows Phone 7 delivered something new App Momentum: Microsoft is showing to mobile UIs with its tile-and-app design. Microsoft is doubling fairly strong momentum with apps, which down on the design with “Mango,” and opening up the OS to allow is what matters when it comes to smart- app developers to provide more information in the tiles and access phones. Lees put the number of Windows services and other apps across the phone. Phone 7 apps at 18,000 in late May, and it’s The design of Mango here is less important than the fact that probably north of 20,000 by now. Windows 8 will mimic the phone UI closely. Until early June, the When developers look to focus their Windows Phone 7 interface was a weird little outlier in a world limited resources, though, they look at of icon-based phones. With Microsoft’s plans for Windows the two platforms where all the users 8, however, Mango becomes the release sporting the mega- are—Apple and Google—and that’s mainstream interface. where they develop. Nokia Handsets: Another structural element going for Mango is This is another reason that the Windows the deal with Nokia, by which the Finnish company is ditching its 8 UI is so important for Mango. If Mango Symbian smartphone platform for Windows Phone 7 software. is seen as a stalking horse for the entire Nokia announced a huge shift in February—abandoning plans Windows user base, Microsoft’s relative for developing its own smartphone software platforms to put lack of traction among mobile developers its handset development eff orts behind the Microsoft platform. could change very fast. Somewhat surprisingly, Lees announced that Nokia would already Do you think Mango has a chance? E-mail me at [email protected]. • PHOTOGRAPH BY KATHERINE LAMBERT KATHERINE BY PHOTOGRAPH

6 Redmond Channel Partner JULY 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. 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. Zenith Infotech Takes Business

Continuity to the Cloud Expert Data Labs, LLC

Joe Nardone Founder & President

Company: Expert Data Labs Beaver Falls, PA Expert Data Labs Web Site: http://expertdatalabs.com Business Challenge: Lead small to midsize Sees Bright Future businesses to transition from traditional IT infrastructure and in doing so, realize the in the Cloud with benefits of hosted infrastructure and cloud-based solutions. SmartStyle Computing Solution: The business continuity features inherent in Zenith Infotech’s SmartStyle “Our return on investment is probably 10 MirrorCloud provide an excellent incentive for organizations to embrace hosted times what it would be with other vendors.” infrastructure while also increasing their – Joe Nardone, Founder and President, Expert Data Labs reliance on managed service providers. Results: In partnership with Zenith After about 25 years in the IT business, Joe Nardone realized that Infotech, Expert Data Labs has enjoyed the traditional model for IT infrastructure (onsite servers, desktops remarkable business growth over the past and in-house technical support staff) had to give way to something two years, while enabling their customers better. So in 2007, he founded Expert Data Labs (EDL) as a to experience IT savings on the order of 30 managed services provider offering IT solutions and support – 50% of what they may have spent on to companies as they began taking advantage of the latest traditional infrastructure models. developments in computer network services and technology. Maintenance for Windows Servers Today, Joe says his business ventures have never experienced the and Desktops: A revolutionary business “opportunity to grow as rapidly as they have during the past two continuity application, SmartStyle years.” A big contributor to that success has been partnership with MirrorCloud brings affordable protection Zenith Infotech, which includes offering Zenith’s SmartStyle from data loss and system failure to a Computing private-cloud solution. private cloud solution with: • Continuous data mirroring Based in Beaver Falls, PA, just north of Pittsburgh, EDL specializes • Failover virtualization in providing managed services, business continuity and hosted • Live bare metal restore infrastructure solutions to a broad customer base. Joe sees clients • Granular exchange recovery coming from manufacturing, healthcare, financial services and • Off-site transfer education. Those organizations may have anywhere from two to • Expandable storage 400 IT users, though Joe says most have about 25 – 30 employees. To meet the needs of such a diverse lot, Joe says, “We don’t build solutions first and try to sell them. We package the different tools together for our customers based on their specific needs.” Continued on back

www.zenithinfotech.com Zenith Infotech Brings Business Continuity to the Cloud

“MirrorCloud continuously duplicates content of Joe recognized SmartStyle Computing However, the business continuity Windows-based systems to as the ideal solution for his clients on a protection provided by SmartStyle the SmartStyle environment number of levels, starting with Zenith MirrorCloud has proven to be an on a near real-time basis. If Infotech’s outlook. “Zenith Infotech is excellent ice-breaker. “Everybody a 21st Century company,” he says.” needs business continuity to some there’s a server failure, we Many companies operate out of a degree,” Joe explains. “MirrorCloud is can achieve virtualization 1950s model and try to shoehorn a wonderful entrée — the first step in just a few minutes.” new technology into that old model. to a robust cloud solution.” Zenith looks at things as a blank – Joe Nardone, Founder and sheet of paper and leverages all the MirrorCloud is an add-on software President, Expert Data Labs flexibility that’s now available in agent to the SmartStyle Computing technology to produce solutions Platform. “MirrorCloud continuously that are powerful, inexpensive and duplicates content of Windows-based unique in the marketplace.” systems to the SmartStyle environment Joe also greatly appreciates the care in near real-time,” Joe explains, “If Zenith Infotech takes in cultivating the Joe saw SmartStyle fitting perfectly there’s a server failure, we can achieve relationship the company has with its with EDL’s infrastructure hosting service. virtualization in just a few minutes.” partners. “Zenith has a vested interest With such features as continuous data in my success and is consistently mirroring, failover virtualization, live Additionally, Joe notes that scalability looking for ways to expand what we do bare-metal restore and expandable makes SmartStyle Computing a “very for our customers,” he says. As examples, storage, Zenith’s private-cloud solution flexible and dynamic offering” for Joe points to the development of best would provide Joe’s customers with a customers large or small, no matter practices through seminars and way to cut significant costs from their how quickly they grow. training, and Zenith encouraging IT expenditures. “With hosted solutions, active dialogues within its partner our customers are seeing savings of “With Zenith, you have one vendor community which uncover new 30 – 50% over what people were who gives you a turnkey solution. opportunities for all. doing with the traditional IT models,” They take responsibility for it and Joe says. Furthermore, he expects manage it,” Joe observes. “You have Joe wants to see Zenith Infotech grow those numbers to only improve as a company that’s focused on making stronger and more successful as well. organizations realize additional that solution function as intended. “One of the reasons we’ve had success benefits of virtualization and as greater That really takes 90% of the weight is that we’ve embraced the relationship economies of scale come into play. off us.” As a result of “focused energy” with a win-win attitude. We come to from Zenith Infotech, Joe estimates, them and say, ‘How can we help you?’ Of course, breaking with tradition isn’t “Our return on investment is probably In the process Zenith is very gracious easy for many organizations, despite 10 times what it would be with in everything they do. It’s a friendship.” the promise of budgetary rewards. other vendors.”

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{Business} From Lifestyle to Growth With eff ort, a little prodding and help from peers, Jamison West took a “one-man band” to a 30-person ﬁ rm. His company, JWCS, acquired two other Seattle companies in the last year and relaunches as Arterian this month. By Scott Bekker

icrosoft will often refer “I did a 180 in my head around reactive to its partners as if they time and materials versus managed belong in one of two services,” West says. “At that time, I had camps, either lifestyle a conversation with my family about partners or growth lifestyle or grow the business.” Mpartners. With his family’s support secured, West The prototypical lifestyle partner is incorporated Jamison West Consulting the IT pro who has built a comfortable Services on Jan. 1, 2007, and converted business for himself with perhaps nearly all of his clients to managed an employee or two and is earning a services contracts. By June 2010, he decent living working as many or as had about 10 employees and started few hours as he’d like to fi t around his talking to Cogent Growth Partners, an family life. The growth partner, on the Atlanta-based M&A advisory fi rm focused other hand, is focused on increasing exclusively on the IT and managed revenues, improving profi ts, adding staff , services space. “For two days in a row, I expanding markets and gaining share talked to them,” West says of Cogent, with the constant goal of becoming a which charges a monthly retainer and larger company. The defi nitions are fl uid. earns a success fee when a deal closes. A stalled growth company can become an A day later, he was talking to his unintentional lifestyle company. Some colleague Brad Benner, founder and lifestyle companies grow very fast. principal of X-BAR, a local fi ve-person Occasionally, a lifestyle partner will “I did a 180 in my head company that had built his business have an “aha” moment and make the around reactive time models and pricing almost identically to conscious decision to transform into a West’s. “I went back and told Brad [about growth partner. and materials versus the conversations with Cogent], and he For Jamison West, that moment managed services. said, ‘Well, I’m fi rst,’” West says. happened in 2006 at an SMB Nation That deal closed on July 1, 2010. conference. West had started his At that time, I had a Through organic growth, the combined Seattle-based IT practice in 1995. “It was conversation with my company increased to 20 people by the kind of a one-man band for the better part family about lifestyle end of the year. On March 1, West closed of 10 years. I was just going around doing another deal to acquire Titanium Ant break-fi x work,” West says. or grow the business.” Inc., a 15-year-old enterprise consulting To cope with extra work in 2005, West Jamison West, Founder, Arterian services fi rm in the Seattle area with nine hired an administrator and another tech. (formerly JWCS Inc.) employees. But at SMB Nation, he met Arlin Sorensen, “Now we’ve got roughly 29 to 30 folks,” founder of the Heartland Technology Group, West says. “We’ve tripled in a year.” which specializes in peer-to-peer business The company is now structured in three planning for small IT services companies. departments. The managed services

RCPmag.com JULY 2011 Redmond Channel Partner 11 CR Visit RCPmag.com for daily news updates

{Business}

department consists primarily of {Share} JWCS and X-Bar staff , and the professional services department is mostly Windows 7 Use Grows to One-Third Titanium Ant staff . A third account- management department, built from of Global OS Market the JWCS core, is focused on virtual StatCounter metric for the OS increased 1.31 percentage points from April to May. CIO services. “Often, even in an 80 to By Chris Paoli 90 person company, they don’t have a CIO,” West said of the opportunity. Windows 7 ended May with 33.22 “Organizations discovered for the fi rst Combining three companies percent of the global OS market, accord- time during the [Windows] Vista era provides a deep bench of Microsoft ing to data collected by StatCounter. that they actually could skip an upgrade,” expertise. JWCS was a Gold Certifi ed Between April and May, the latest said Sam Gross, Unisys vice president for Partner and Small Business Specialist. Microsoft OS increased its share by 1.31 Global IT Outsourcing Solutions, during Titanium Ant brought membership in percentage points, continuing its steady a recent phone interview. “IT said: ‘We the U.S. VAR Champions Club and the growth since its release in October 2009. have something that’s supportable and Cloud Champions Club. The pooled Windows XP, which is scheduled to works, so we’ll just sit this one out.’” resources equate to silver competen- lose free security update support in Third-party vendors are anticipating cies in Desktop, Identity and Security, April 2014, is still the leading OS with a an impending wave of Windows 7 migra- worldwide market share of 45.83 percent, tions, with several touting their Windows according to the StatCounter numbers. XP-to-Windows-7 migration services at However, Windows XP share has declined the recent Tech·Ed conference. JWCS launches a new name and as that of Windows 7 has grown. As for the rest of the worldwide OS moniker for its combined company Windows 7 U.S. market share market, StatCounter numbers show that poised for growth. surpassed Windows XP in April, accord- Windows Vista, while still continuing to ing to StatCounter. lose market share, is still in third place Midmarket Solution Provider, Server Microsoft announced in April that it with 12.53 percent, a decrease of 6.93 Platform and Volume Licensing. had sold 350 million licenses of Windows percentage points year-over-year. Both And the company has done it 7, the majority of those to consumers. As Mac OS X and Linux have remained without taking on massive debt. “We for enterprise migrations, an April survey relatively stable, with market shares didn’t pull credit for either acquisition,” by Unisys Corp. found that 25 percent of 6.35 percent and 0.81 percent, West said. “With Cogent Growth of IT professionals were considering an respectively. • Partners, it can include any mix of upgrade to Windows 7, with 21 percent equity, down payment, guaranteed of respondents saying their enterprises cash over a period of time or cash based have already started or fi nished making Chris Paoli is the associate Web editor for the on revenue over a period of time. We’re the move. 1105 Enterprise Computing Group. able to mitigate a lot of the cash issues.” Growth also means outgrowing the name. The JWCS moniker that made StatCounterStatCCounnter GlobGlobalbal StatsStatsts sense in the “one-man band” days TopTop 5 OpOperatingperating SSySystemsstemsm on MMayay 11 is creaking under the weight of the acquisitions. On July 1, in an event at WindowsWinndows XP the Microsoft Store in Bellevue Square, WindowsWWindows 7 JWCS will launch a new name for the combined company—Arterian. Windowsndoows VistaVista The name comes from the Latin MacMac OS X root word for “artery,” and the name is designed to be suggestive of building a LinuxLinux path for technology and systems. • OtherOther

0% 10% 20% 30% 40% 50% Scott Bekker is editor in chief of Redmond Channel Partner magazine.

12 Redmond Channel Partner JULY 2011 RCPmag.com SPECIAL PULLOUT SECTION

PARTNER’S GUIDE TO Virtual Security As virtualization proliferates, expertise in locking down hypervisors, virtual machines and virtualized desktops is becoming critical. Fortunately, a number of resources and tools are coming online as the virtualization security industry matures. By Scott Bekker

irtualization is seeping into almost consolidation toward more automated private every niche of IT—getting deeper into cloud models for their IT needs,” wrote IDC analyst the enterprise, working its way through Reuben Miller in describing the results. Although the midmarket and even beginning to costs for an individual blade server are higher than fi nd cracks inside small and midsize for a single-purpose server, the drop in overall cost Vbusiness (SMB) shops. Partners involved in almost per application is driving adoption across many IT any aspect of IT are increasingly fi nding that having sectors, according to Miller. some knowledge of virtualization is becoming a One thing this rush to virtualization is exposing requirement to stay on the short list for more and is the very special security concerns that virtualized more customer engagements. environments create. Virtual security is far, far In IDC’s most recent quarterly tracking survey, back on the maturity curve compared to regular IT blade servers, which power many virtualization security. A common assumption is that good security solutions, saw their factory revenues increase by practices for physical systems map pretty well to the 23 percent in the fi rst quarter—nearly double the virtual world, but that’s only partly true. growth rate of the rest of the server industry. Fortunately for partners who are fi nding “As virtualization adoption matures in the x86 themselves either drawn to—or forced into—the server market, IDC sees customers moving from virtual security fi eld, the resources available for SHUTTERSTOCK

RCPmag.com JULY 2011 Redmond Channel Partner 1 RCP FEATURE | VIRTUAL SECURITY

getting up to speed on the issues and the tools for protecting 1. It adds layers of technology, increasing the security against virtual vulnerabilities are emerging. management burden and requiring additional security It’s also a fruitful time to start looking at virtual security. For controls. one thing, vendors are paying more attention to the market, 2. The combination of many virtual systems on a single as the mid-May VMware Inc. announcement of its plans to physical computer makes the potential security compromise purchase Shavlik Technologies shows. Shavlik provides of that physical system many times worse than in a single- security and management software for desktops and servers, purpose system environment. and the acquisition demonstrates the increasing focus both on 3. While some virtualization systems off er the convenience virtual security and on virtualization for SMBs. of easy sharing of information between them, that sharing can At the same time, customers appear more willing to spend turn into an attack vector. on security than they have been since the start of the recession. 4. The dynamic nature of virtualized environments adds According to the recent Gartner Inc. report, “Market Share to the complexity of creating and maintaining security Analysis: Security Software, Worldwide, 2010,” the security boundaries. industry saw a resurgence in 2010 after dropping in 2009. Gartner reported a 12.2 percent increase in worldwide IT security solutions sales, from “As virtualization adoption matures in the $14.7 billion in 2009 to $16.5 billion in 2010. x86 server market, IDC sees customers The growth was driven in part by new delivery models and new types of technologies being moving from consolidation toward more introduced. Signifi cant growth trends were seen automated private cloud models for their IT in the categories of Security as a Service, security Reuben Miller, Analyst, IDC information and event management, and secure needs.” Web gateway products. “Products within the security market are undergoing rapid evolution, in terms of both new delivery VIRTUAL SECURITY CHECKLISTS models—with Security as a Service showing increasing The NIST document also provides standard recommendations popularity—and new technologies being introduced, often by for securing hypervisors, guest OSes and virtualized desktops. startup companies,” said Ruggero Contu, principal research The hypervisor may be the most important element. analyst at Gartner, in a prepared statement. “Because of the hypervisor’s level of access to and control over the guest OSes, limiting access to the hypervisor is critical to VIRTUAL SECURITY PRIMERS the security of the entire system,” the NIST report states. The resources available to partners trying to familiarize Basic steps for keeping a hypervisor secure are similar to themselves with the intricacies of virtualization security are many server security steps. NIST’s recommendations include: also proliferating. ✱ Installing updates and patches for the hypervisor as soon In February, the National Institute of Standards and as a vendor releases them. Technology (NIST) released its fi nal “Guide to Security for Full ✱ Restricting administrative access to the hypervisor’s Virtualization Technologies.” The U.S. government report joins management interfaces. an expanding library of guidance on securing virtual environ- ✱ Synchronizing the virtualized infrastructure to a trusted ments. Similar documents are available from the Center for authoritative time server. Internet Security, VMware, Microsoft and Citrix Systems Inc. ✱ Disconnecting unused physical hardware, such as The NIST document provides a solid outline of the ways removable disk drives and NICs, from the host. in which virtual environments reinforce the need for tradi- ✱ Disabling hypervisor services such as fi le sharing between tional security practices while introducing entirely diff erent guest and host OSes. requirements. The document also details how virtualizing ✱ Monitoring the hypervisor carefully for signs of compromise. environments naturally improves security in some ways, while For guest OSes, NIST recommends: simultaneously amplifying security problems in others. ✱ Admins should follow normal recommended practices for In the executive summary, the NIST establishes a golden a physical OS, such as time synchronization, log management, rule for virtualized security: “Organizations should have authentication and remote access procedures. the same security controls in place for virtualized operating ✱ Installing guest OS updates promptly. systems as they have for the same operating systems running ✱ Backing up virtual drives used by the guest OS regularly. directly on hardware. The same is true for applications ✱ Disconnecting unused virtual hardware, especially virtual running on guest OSes.” drives, in each guest OS. The NIST outlines four major negative security implications ✱ Maintaining separate authentication credentials for each of virtualization: guest OS.

2 Redmond Channel Partner JULY 2011 RCPmag.com ✱ Associating virtual devices for the guest OS only with the images and snapshots. “In a server environment, the ability to appropriate physical devices on the host system. create and manage images is usually limited to administrators. ✱ In case of compromise, assume that all guest OSes on the But in desktop environments, end users often have the ability same hardware have been compromised and revert each guest to create, modify, duplicate and delete images,” the NIST OS to a known good image. report states. “It may not be possible for the organization Among all the lockdown recommendations, Gartner analyst to ensure that the guest OS images meet the organization’s Neil MacDonald suggested the quick-patching recommenda- security policy requirements, such as being patched regularly.” tions, while the most basic, are probably the most important. “Gartner research shows that 90 percent of successful MOVING FORWARD attacks occur against previously known vulnerabilities for Getting staff engineers and consultants up to speed on virtual which a patch or secure conﬁ guration standard was already security concerns now is a smart move for partners, even for available. If you haven’t already, make sure you’ve secured those not confronting virtual opportunities yet. While virtual your virtualization platform layer,” MacDonald blogged in an security has been moving fairly quickly, industry observers entry about the NIST report. anticipate the technology will advance very quickly over the next few years. With virtualization serving as a foundation technology for not only virtualized “Products within the security market are datacenters but also for private cloud off erings undergoing rapid evolution, in terms of both and public cloud infrastructures, the pace of change should ratchet up rapidly. new delivery models—with Security as a Clearly a big part of the partner opportunity Service showing increasing popularity—and right now is in making sure that customers are applying best practices with existing security new technologies being introduced, often by technologies to virtual environments. In other startup companies.” words, designing and deploying networks Ruggero Contu, Principal Research Analyst, Gartner Inc. and virtual systems with solid host-based ﬁ rewalls, host-based antivirus and security patch-management tools. But already a new generation of virtualized technology is VIRTUAL DESKTOPS becoming available, MacDonald wrote in a June 6 blog post As Virtual Desktop Infrastructure, or VDI, gains traction, called, “Is Single Instance Security the Future?” security procedures around desktop virtualization must also “Today, there are many off erings coming to market develop. It’s here, according to MacDonald, that the NIST that use virtualization to make the security protection of goes beyond the existing reports. “NIST adds to this collective multiple virtual machines more effi cient and eff ective,” he knowledge and expands it with some interesting reading on wrote. “Those tools include agentless antivirus solutions and desktop virtualization,” he said. hypervisor-neutral technologies.” From what NIST writes about desktop virtualization, it MacDonald continued: “You can imagine the same appears that even partners simply looking to secure desktop approach being used for security policy enforcement such environments in a general sense may be able to help their as behavioral monitoring, host-based intrusion prevention, customers by bringing desktop virtualization into the application control and data-loss prevention. Single-instance discussion. security in a virtualized environment provides the best of “Desktop virtualization can be used to improve security both worlds: the insight and context of a host-based agent by providing a well-secured guest OS image for the desktop combined with the single-instance ease of management of a environment. A number of virtualization vendors provide network-based approach.” solutions that will allow organizations to deploy a managed In a few years, virtual security, rather than being at the desktop guest OS on unmanaged computers,” the report periphery of the security market, could be closer to the core, authors write. MacDonald argues: “These approaches are so powerful that The NIST report also notes that desktop-virtualization we project that 40 percent of security controls used within scenarios present organizations with the opportunity to datacenters will be virtualized in 2015 up from less than 5 manage virtual machines, or VMs, as appliances that expire percent at [year end] 2010.” • after a set amount of time and are then replaced with more up-to-date appliances. They’re not real computers, NIST suggests, so why manage them that way? Scott Bekker is editor in chief of Redmond Channel Partner magazine. Of course, it’s not all peaches and cream in the VDI world. David Nagel, executive editor of 1105 Media’s online education One problem virtualized desktops can create is out-of-control publications and electronic newsletters, contributed to this report.

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Acer AC100 Killer Windows Devices “sheet” battery that can keep the laptop Microsoft showed off some slick new hardware in Taiwan, including touchscreen powered for more than 15 hours. Specs are desktop PCs and innovative tablet computers from Acer, ASUS and Sony. an Intel Core i5, 500GB hard drive, AMD During his keynote at Computex in Taipei Radeon HD6250 GPU, up to 10 hours of Radeon HD 6470M and 4GB of RAM. The last month, Microsoft OEM chief Steve battery life and a weight of 3.5 pounds VAOI SB, available now, starts at $999. Guggenheimer introduced the latest and with the optional dock. greatest Windows-based hardware. On Honorable Mention: ASUS Eee Slate stage and on display in the Microsoft booth Acer AC100 While the ASUS Eee Slate had a starring at the Taiwan show were 130 devices from For partners installing Windows Small role, the slate was a repeat performer, as it 50 manufacturers. Below are some of the Business Server (SBS) at customer sites, was also featured in the Microsoft keynote most eye-popping systems with the best Acer last month launched the AC100. The during the Consumer Electronics Show in potential for Microsoft partners. black box of a system starts at $1,300 and Las Vegas in January. comes with Intel Xeon E3 and Core i3 CPU, Guggenheimer highlighted the slate’s up to 8GB of RAM and 6TB of storage. use by a guest DJ at the beginning of In a video tour of the Microsoft the Computex keynote, and Microsoft showcase booth, Nick Parker, vice Senior Product Manager Ryan Asdourian president of worldwide marketing for the demonstrated apps that took advantage Microsoft OEM Division, said the AC100 of the multitouch and digital pen capabili- runs the recently released Windows SBS ties of the device. —S.B. Essentials 2011. “As you can see, this great furniture Acer ICONIA Tab W500 form factor really packs in all of the value A highlight of the keynote, with all the that you’d expect in a small business or recent attention on tablets and slates, a home setting. And, in fact, by means was the Acer ICONIA Tab W500. “This is of an update pack, you’ll be able to get the new Acer W500, and if I pull this up, access to hybrid cloud services, such you’ll notice it’s got full touch capability. as Offi ce 365 with SBS 2011, as well But the nice thing is I can undock it from as things such as Windows Phone 7,” its keyboard, and at the same time, if I Parker said. walk, I can simply dock it back in there. So I have the best of both worlds,” said Sony VAIO SB Guggenheimer, corporate vice president of One of the more stylish devices the Microsoft OEM Division. introduced at Computex was the Sony The device is available now for $550. VAIO SB, with its white or black The specs include an AMD C-50 Dual Core aluminum case. The device includes USB 1GHz CPU, 2GB of RAM, 32GB SSD, AMD 3.0, a backlit keyboard and an optional Sony VAIO SB

{ For more killer systems on display at Computex, visit RCPmag.com/KillerDevices. }

RCPmag.com JULY 2011 Redmond Channel Partner 13 CR Get WPC Coverage at rcpmag.com/wpc

{Trends}

{Cloud}

Oracle Databases Come to Amazon Web Services Two licensing models are available for running Oracle 11G Release 2 on the Amazon infrastructure. Amazon Web Services (AWS) is support- ing Oracle 11G Release 2 databases on its Relational Database Service (RDS). Gurdeep Singh Pall demos Microsoft Offi ce Communications Amazon is off ering two key licensing Server “14” at Microsoft Tech·Ed as Microsoft Server and models for those who want to run Oracle Tools President Bob Muglia (partially obscured) watches. on RDS: “License Included” and “Bring Your Own License.” Pricing for the version that includes The End of Device-Based Licensing? a license starts at 16 cents per hour for a Forrester Research report suggests the cloud and mobility combination will small instance. That price includes soft- heavily disrupt the current Microsoft licensing model. By Kurt Mackie ware, hardware and RDS management capabilities. For those with larger-scale A recent Forrester Research Inc. report be available every three years if Microsoft requirements, pricing for large instances is suggests Microsoft may soon require keeps to its general lifecycle product 64 cents. Extra-large, double-extra-large its business customers to pay Software schedules on a timely basis. But opting for and quadruple-extra-large instances are Assurance (SA) licensing fees. SA is still just a bet for organizations. At available for 85 cents, $1.70 and $3.40, The report, entitled “Consider These the same time, SA represents a 29 percent respectively. Five Criteria When Choosing a Microsoft premium for Microsoft for its Windows For those who want to bring their own Volume Licensing Program,” lists some and Offi ce products and a 25 percent licenses, the rates start at 11 cents for a strategies for IT management to consider premium for Microsoft for its Client Access small instance and 44 cents for a large when assessing Microsoft’s various Licenses, according to the report. instance. Extra-large instances are 65 volume licensing programs. According Most organizations typically acquire cents, double-extra-large instances cost to the report, Microsoft’s possible move SA coverage automatically when they $1.30 and quadruple are $2.60. to SA licensing fees would be the result of buy Enterprise Agreement licensing “As is generally the case with AWS, forthcoming developments in mobility from Microsoft. SA also provides access we’ll be adding even more functionality and cloud-based server access. to training resources and the Microsoft to this service in the months to come. “The twin revolutions of client mobility Desktop Optimization Pack. Already on the drawing board is support and cloud servers will kill device-based According to the Forrester report, for enhanced fault tolerance,” said AWS licensing, which is Microsoft’s existing the fi ve basic criteria to consider evangelist Jeff Barr in a blog post. model,” the report said. when electing to purchase Microsoft “When I demonstrate Amazon Microsoft gets about 30 percent of volume licensing are price, upgrade RDS to developers I get the sense that it its revenue from its multiyear volume cycles, budget, value and SA benefi ts. really changes their conception of what a licensing agreements. Not only are they Organizations wanting a better deal will database is and how they can use it,” Barr profi table, but the agreements bring in have to have an alternative program in wrote. “They enter the room thinking of the kind of regular revenue preferred by mind before negotiating with Microsoft, the database as a static entity, one that fi nancial-market analysts that scrutinize according to Forrester. • they create once in a great while, and Microsoft’s performance as a company, leave thinking that they can now create according to the Forrester report. databases on a dynamic, as-needed The Microsoft SA licensing option off ers Kurt Mackie is the online news editor for the basis for development, experimentation,

a software upgrade beneﬁ t, which might 1105 Enterprise Computing Group. testing and the like.” —J.S. SHUTTERSTOCK

14 Redmond Channel Partner JULY 2011 RCPmag.com

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{Deals} {Mobile} Exchange Hoster Intermedia Apple’s Bought by Private Equity Firm ActiveSync Deal involves change in leadership for 16-year-old New York-based Microsoft partner. By Jeffrey Schwartz Momentum Hoster fi nds Apple leading even Private equity fi rm Oak Hill Capital among business users of Exchange. Partners acquired Exchange hoster Even among business users running on Intermedia in May for an undisclosed Microsoft Exchange, Apple Inc. has the amount. momentum when it comes to smart- New York-based Intermedia is a major phones and tablets, according to statistics provider of Exchange hosting services, released by one of Microsoft’s largest managing 320,000 Exchange seats Exchange hosting partners. and boasting 38,000 customers that Intermedia last month released are serviced by 6,800 partners. While device-activation numbers for all of April Intermedia is a Microsoft partner with for its 320,000 hosted Exchange premium three gold competencies, its off erings “We intend to build e-mail accounts. According to the New also compete with the Microsoft Business Intermedia into York-based hoster’s numbers, new device Productivity Online Suite (BPOS) and the activations in April broke out as follows: forthcoming Offi ce 365. a leading provider ✱ 59 percent were iPhones With Intermedia’s founder and of a broad suite of cloud ✱ 30 percent were Google Android majority shareholder Michael Choupak devices stepping aside, former Savvis Inc. CEO services to SMBs and ✱ 8 percent were BlackBerry devices Phil Koen has been named Intermedia’s the channels that serve That leaves 3 percent of activations for new chairman and chief executive. Koen them, with Microsoft all other smartphone platforms, including is a seasoned CEO, having served as CEO Windows Phone 7, Symbian and Palm. of Savvis from 2006 to 2010, as well as Exchange e-mail as the The April activations also show president of Equinix Inc., a provider of core service.” how radically Intermedia’s overall datacenters and Internet services. Phil Koen, CEO, Intermedia mix of synchronized smartphones is “As a pioneer and now signifi cant changing. Counting all activations to date, player in cloud-based IT services, BlackBerry leads with 46 percent, followed Intermedia has tremendous potential by iPhone with 33 percent and Android for further growth by delivering more with 9 percent. That leaves 12 percent for cost-eff ective solutions to companies “We’re proud to have built this company the other platforms. • —S.B. whose on-premises IT is moving to the from a startup to a profi table, major cloud,” Koen said in a statement. “We player in the IT hosting industry, with intend to build Intermedia into a leading no outside investments,” Choupak, who provider of a broad suite of cloud services founded the company in 1995, said in Total ActiveSync Devices to SMBs and the channels that serve them, a statement. “It’s very exciting to see Under Management with Microsoft Exchange e-mail as the Intermedia take this important step to % core service.” the next level as it aligns itself with great 61 Intermedia said it plans to expand its partners to drive further growth.” portfolio of cloud-based services via new Serguei Sofi nski, Intermedia CEO % products and acquisitions. The company and a shareholder, was also leaving the 22 % has already begun that expansion through company in the deal, which was expected 17 the off ering of hosted PBX, security, to have closed in Q2. • archiving, backup and mobility services. iPhoneiPhone OtherOther AndroidAndro The company also said it will continue ((Palm,Palm, to invest in 24x7 support and cloud Jeff rey Schwartz is executive editor of Windows7Windows 7, migration services. Redmond Channel Partner magazine. others)

16 Redmond Channel Partner JULY 2011 RCPmag.com

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{Merger} Cloud Sherpas Acquires Omnetic

Deal gives Cloud Sherpas the largest concentration of Google “The addition of Omnetic signifi cantly enhances our presence Apps Certifi ed Deployment Specialists outside of Google. on the West Coast,” said Cloud Sherpas CEO Jon Hallett in a statement. “With an offi ce and a highly trained staff in San Google Apps reseller Cloud Sherpas acquired Google solution Francisco, we can bolster relationships with regional clients provider Omnetic Inc. for an undisclosed sum. and prospects, and with Google itself, which will be critical as With the June acquisition, Cloud Sherpas says it will have Google introduces new products and programs for customers the largest concentration of Google Apps Certifi ed Deployment and partners.” Specialists outside of Google Inc. Cloud Sherpas says it has Cloud Sherpas also pointed to Omnetic’s customer base, migrated 800,000 users to Google Apps, while Omnetic has which includes National Geographic Society, Dr. Martens, moved 100,000. Design Within Reach, Mazda Raceway and the Schumacher The move by Atlanta-based Cloud Sherpas to acquire Omnetic Group. will give it a West Coast presence, as Omnetic is based in San In addition to providing integration services, Cloud Sherpas Francisco. Besides its Atlanta headquarters, Cloud Sherpas has off ers the SherpaTools IT admin tool for Google Apps, which the offi ces in Austin, Texas; Chicago; New York; Philadelphia; and company said is installed on 16,000 domains, accounting for 3 Washington, D.C. million users. • —J.S.

{Cloud } San Francisco Moves E-Mail to Exchange Online

The city of San Francisco plans to migrate of administering them was a key factor in He was well-aware of the outage, though from its farms of Lotus Notes and Exchange its decision to move e-mail to the cloud. the San Francisco government wasn’t servers to the cloud with the Microsoft The fact that the city is a heavy user of among the customers that went completely service. Microsoft Offi ce and SharePoint and down. “The reality of it for us is e-mail Some 23,000 users across 60 depart- has started to use the Windows Azure outages unfortunately are not something ments and agencies in the City and County cloud service weighed heavily in choosing that haven’t happened to us before,” he of San Francisco will move to Exchange Exchange Online, according to Walton. said, noting the outage in San Francisco’s Online over the next 12 months, Microsoft Walton’s announcement came about a case only led to a delay in delivery of and the city announced in May at a press week after a high-profi le Exchange Online messages of four hours. teleconference held in San Francisco. Also outage, which left many customers fuming. “We actually see what happened ... considered were Google Apps and with the Microsoft outage as really LotusLive. demonstrating why we think we The deal is valued at $1.2 million made the right decision,” Walton per year, amounting to $6.50 per user said. “We were able to have a single per month, San Francisco CIO Jon point of contact. Microsoft kept Walton said. “That’s a signifi cant us very up to speed. We lost no savings to the city, and, as a matter messages.” of fact, was one of the key ways that As for Offi ce 365, Walton isn’t the Department of Technology was ruling that out for the future, but able to achieve its 20 percent budget it’s not in the current plan. “We’re reduction target for this fi scal year, certainly interested in [Offi ce] 365, which was directed from the mayor’s because we have budget challenges offi ce,” Walton said. here in the city. I think it will come The city is currently operating down to a conversation about cost,” seven e-mail systems, and the cost he said. • —J.S. SHUTTERSTOCK. STAFF ILLUSTRATION/RCP

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“The feedback I was getting from partners back in the January-February time frame as they were going through this, was, ‘You’re making us go through a lot here.’ Yeah, we are.” Jon Roskill

In an exclusive interview with RCP, Jon Roskill, Microsoft’s top channel executive, talks about the challenges of his ﬁ rst year—the cloud transition, the MPN switchover—and the huge opportunities he sees for partners in year two. By Scott Bekker W PHOTOS BY BRIAN SMALE

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T RCPmag.com JULY 2011 Redmond Channel Partner 21 RCP COVER STORY | WPC PREVIEW

ince Jon Roskill took over the Microsoft its partners have made toward the cloud over the last year. “I think Worldwide Partner Group (WPG) in Microsoft and its partner community is so underestimated right late June 2010, he’s faced a set of three now,” Roskill contends. “I don’t think anybody understands how interlocking challenges. far along we are—with over 100,000 customers using the beta of On the one hand, he was tasked with Offi ce 365 and over 16,000 partners reselling it.” delivering the message to partners that Part of the cloud message last year was the launch of a pair of Microsoft was “all in” with the cloud and programs called Cloud Essentials and Cloud Accelerate. trying to accelerate the movement of the In the United States, requirements to participate in Cloud Essentials Microsoft channel toward Microsoft for a sales or services partner are having a Microsoft Partner Profi le, cloud products. signing a sales agreement and a services agreement with Microsoft, Next, he inherited the massive, programmatic evolution from completing some training, and essentially making some sales to stay the Microsoft Partner Program to the Microsoft Partner Network in the program. For those modest requirements, and with no annual (MPN). While his predecessor of eight years, Allison Watson, had fee, the program brings internal use rights (IUR) for 250 seats of Offi ce overseen the design and a lot of the pitching of the MPN to Microsoft’s 365, 250 seats of Dynamics CRM Online, management of 10 PCs on 600,000-partner channel, it fell to Roskill to fl ip the switch on the Windows Intune and a raft of Windows Azure services. largest part of the MPN launch on Nov. 1 and to shepherd Microsoft’s The Cloud Accelerate program has similar IUR benefi ts but also huge partner community from the old system to the new. includes substantial marketing benefi ts, such as pre-sales and technical Finally, the MPN was in the midst of a major overhaul of its partner support hours and business development tools. Those benefi ts come incentives program throughout the Microsoft fi scal year that just ended. with a price tag of $1,850 in the United States, and a sales require- All of that occurred against the backdrop of partners wondering ment—partners must have closed three cloud deals for a minimum more seriously than they have in years whether Microsoft was up to the total of 150 seats to join, have three customer references and make a competitive challenges in the cloud and around the consumerization commitment to sell at least eight deals for a minimum total of 500 seats. of IT, as media tablets and smartphones get more important every day. “Every country is beating their Cloud Essentials and Cloud Questions from Microsoft partners about whether they’re betting on the Accelerate targets” for a set number of partners to enroll in each right horse when they commit to Redmond have been louder than ever. program, Roskill says. Asked early last month if he knew what he was getting into a year ago, Microsoft has focused on signing partners up to its cloud programs Roskill was unequivocal: “Yeah, I did.” The answer would hardly be a this year largely to get partners positioned to start selling Offi ce 365, surprise to the many partners who have talked to Roskill in his fi rst year which is entirely a Microsoft Fiscal Year 2012 initiative. The WPC this as corporate vice president of the WPG. His standard conversational year closely follows the June 28 general availability of Offi ce 365, the gambit is to ask what you want to talk about, listen carefully, answer next version of the Business Productivity Online Suite (BPOS), which questions directly and still manage to get across all the things he wants adds Offi ce Web Apps, some Lync Server functionality and the first to say. He’s not a person who gets knocked off balance easily. opportunity to buy the Offi ce suite in a monthly subscription. He credits his ability to handle the job in the fi rst year largely to To Roskill, Office 365 presents a much bigger opportunity for the inheritance of one other thing from Watson—her partner team Microsoft and its partners than BPOS did. of executives, such as Julie Bennani and Ross Brown, who stayed in “From the start, it’s got a SKU lineup that was designed to be our the same roles they held. Roskill and Watson essentially switched bread and butter, our core SKU lineup,” Roskill says. positions, with Watson becoming corporate vice president of the U.S. Because of the fl exibility, the partner opportunity will range from Business & Marketing Organization. the deskless or kiosk plans for retail and factory fl oor workers at $2 That he was confi dent about his ability to tackle the challenges per user per month, all the way up to the full enterprise desktop with doesn’t mean he’s arguing the fi rst year wasn’t tough. “It was a bit of the Offi ce Professional suite installed and full Lync voice capabilities a high-wire act,” Roskill says. “It’s been a year of major transition both for $27 per user per month. for Microsoft and for partners.” “The way it opens up the SKU lineup is incredibly well thought out,” Coming up on his second Microsoft Worldwide Partner Conference Roskill says, adding that Microsoft cloud off erings can now match the (WPC) this month in Los Angeles, where Microsoft expects a record solutions that partners have the expertise to sell. “Thousands and 15,000 attendees, Roskill points to strong progress between Microsoft thousands of partners out there who are reselling our stuff know how and its partners in all three transition areas. While substantial chal- to do this already. The fact that some SKUs have Offi ce inside them lenges remain, he’s excited about the opportunities for partners with makes the subscription incredibly powerful.” Microsoft in the year ahead. With his marketing background, Roskill also thinks Offi ce 365 has something else going for it: “We’ve joked about how the branding of BPOS sounds like all sorts of things. Offi ce 365 is a brand that we can TRANSITION #1: CLOUD really get behind as a company.” The little “we’re all in” clouds were all over Microsoft WPC 2010, In his ongoing conversations with partners over the last year, one and Roskill says he’s happy with the progress that Microsoft and of the biggest areas of partner pushback around cloud involved direct

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billing. With BPOS, Microsoft bills customers directly and reimburses He acknowledges that Microsoft is asking a lot of longtime partners, partners later. Many partners, especially managed services providers, with the competency changes, the customer satisfaction requirements, say the approach doesn’t fi t with their business models of bundling the higher fees for gold competencies, the more intensive training services and providing one bill, which gives them better control over requirements and the personnel requirements for each competency. their margins. Having Microsoft own that billing relationship with “The feedback I was getting from partners back in the January- customers also takes partners out of what many consider a critical February time frame as they were going through this, was, ‘You’re touchpoint with customers, although some are happy to avoid the making us go through a lot here.’ Yeah, we are,” Roskill says. frequent headaches of customer billing. Having just completed a tour of fi ve of Microsoft’s 13 geographic The issue came up during one of Roskill’s partner town hall meetings areas, Roskill says he’s getting begrudging acknowledgement from late last year, when he fi elded a question about billing, acknowledged partners that the process was worth it, especially for gold competencies. the point, made the case for the company’s existing model and promised “The feedback from the partners is that it’s very valuable,” he says. that the company was looking into it. While Microsoft is only in the middle of the re-enrollment process, While many partners have said privately they hope the issue will Roskill says overall re-enrollments are going very well. “At this point be resolved around the time of the Offi ce 365 release, Roskill didn’t I feel very, very good about the work that’s been done in the Partner have any news on that score last month. Network team, and with the partners,” he says. “I don’t have anything to say beyond what [I’ve said before]. We’re Although many partners tell us they’re holding off on re-upping their continuing to examine and evaluate. I would say the partner requests gold competencies while they assess the value, that’s not necessarily for that are still there. So, absolutely, I’ll continue to acknowledge counter to what Microsoft was aiming for. To Roskill, the gold numbers that,” Roskill says. are a bright spot. At the same time, Roskill says partner requests for billing control “We have well over 5,000 organizations out there who have earned have been declining: “If I had to go off my last six months of feedback, well over 8,000 gold competencies. We’re slightly ahead of our plan those requests have attenuated somewhat.” on gold,” Roskill says. He points instead to Microsoft’s March announcements about What Roskill’s numbers underscore is how radical a change that licensing mobility that allow enterprise customers to pick, choose and is from Microsoft’s previously permissive attitude toward the Gold move between on-premises licenses and in-the-cloud seats. “We’ve had Certifi ed Partner level. In April 2009, the last time that RCP received huge positive feedback around that, obviously, from hosters who like detailed fi gures from Microsoft, there were 16,000 Gold Certifi ed being able to talk to their customers about private cloud and moving Partners worldwide. Admittedly it’s an apples-to-oranges comparison, back and forth,” he says. “There’s been a very strong, positive response but the change represents a 68 percent decrease in the number of from the reseller community that we are loosening the constraints.” partners who can call themselves gold under the new defi nition versus In all, Roskill asks solution providers to consider Microsoft’s entire the old. By any measure, gold has become much more exclusive. record as a cloud partner. “I think we’ve continued as a company to If the transition has gone according to plan on gold, persuading make moves that I believe are perceived as being partner-friendly,” partners of the value of the silver level is proving harder than expected. Roskill says. “I think these points are accruing. People are seeing that One of Roskill’s two keynotes at the WPC this month will be on “The our intent is really what we’re saying, that our actions are proving out Value of the MPN.” Bet that part of the presentation will focus on the what we’re saying. We are the vendor that’s going to go to the cloud benefi ts of the U.S. $1,850 silver competency. with the partner.” “Silver, which was tracking a little bit behind, has been an area of focus. It’s a place where we needed to do a better job,” Roskill says, and transitions into the pitch for the competency level: “Silver is not TRANSITION #2: MPN second best, that’s not how people should be thinking about it. It puts The cloud transition may be the one longest in the making. you in the elite top 5 percent of the Microsoft Partner community. Partners were eyeing what was then known as the Software as Many partners don’t understand that it’s unlimited support on sales a Service trend heading their way back in 2005. A close second, opportunities greater than $3,000. Then, of course, the internal use though, is the MPN transition, elements of which Microsoft began rights software ...” telegraphing to partners in 2008. The trouble with getting partners to sign up for silver helps explain In a lengthy planning process befi tting a change to a program that why MPN General Manager Julie Bennani was blogging about “The affects hundreds of thousands of partners and impacts hundreds Value of Silver” in May, when she noted, “We have heard from some of billions of dollars in ecosystem revenues, Microsoft established partners that they are still not clear on the value of a silver competency several core goals for the MPN. One of the biggest was diff erentiation vs. Action Pack subscriptions.” of partners. Microsoft wanted to make its most specialized partners Where is Microsoft on silver and where does the company want to be stand out and shape the program to help highlight those partners and in terms of numbers of partners? Roskill isn’t saying, but the 5 percent their expertise—and reinforce their success. fi gure indicates the company is aiming for about 30,000 organizations TheThe fi nalnal totouchesuches on tthehe tthathat trtransitionansition wwentent inintoto eeffff ecectt wi withth t hethe wiwithth silversilver competencies.comppetencies. WhileWhile it’sit’s notnot a directdirect matchmatch withwith thethe oldold llaunchaunch of the ggoldold comcompetenciespetencies on Nov. 1, 2010, a few months after Certifi ed Partner level, that groupgroup consisted of 18,000 partnerspartners in RoRoskillskill totookok ooverver ththee WPWPG.G. ApAprilril 2009, so MicrosoftMicrosoft had aapparentlypparently aimed to nearlnearlyy double the

24 RedmondRedmond CChannelhannel PaPartnerrtner JULY 20120111 RCRCPmag.comPmag.com “I think we’ve continued as a company to make moves that I believe are perceived as being partner friendly. I think these points are accruing. People are seeing that our intent is really what we’re saying, that our actions are proving out what we’re saying. We are the vendor that’s going to go to the cloud with the partner.”

“I think Microsoft and its partner community is so underestimated right now. I don’t think anybody understands how far along we are—with over 100,000 customers using the beta of Office 365 and over 16,000 partners reselling it.”

“The solution incentive program ... puts real meat behind the gold competency. It starts to provide additional revenue opportunities for partners that are able to go off and achieve that gold competency.”

RCPmag.comRCPmag.com JJULYULY 20120111 RRedmondedmond CChannelhannel PPartnerartner 25 RCP COVER STORY | WPC PREVIEW

WPC 2011 LINEUP “Another big set of changes that we had going into this year was around incentives,” Roskill says. “We’ve made some substantial updates, and I think very positive changes have been rolled out.” Although Jon Roskill played a major public role at the Microsoft A key element of the new incentives is matching the workloads Worldwide Partner Conference (WPC) in 2010, he had just stepped around which Microsoft organizes incentives with the MPN’s new into a job previously held for many years by Allison Watson. The competency structure. “Workloads line up with competencies now; 2011 WPC will be Roskill’s fi rst at the helm for both the planning and that’s what’s exciting about it. [In Dynamics CRM, for example], we execution of the conference. Here’s the keynote lineup: can say we’ve got X number of CRM gold competent partners around the world and Y number of silver competent partners around the Monday, July 11 world, and we’re going to go to market with them and grow and take ✱ Jon Roskill, corporate vice president, Worldwide Partner Group, share,” Roskill says. “Celebrating Partners” In a Microsoft Partner Network Interactive Leadership Forum a few ✱ Steve Ballmer, Microsoft CEO, main keynote: Much of the news months earlier, Ross Brown, vice president of Microsoft Worldwide out of the show will come from Steve Ballmer’s keynote; for now, Partner Sales, explained some of the other changes to partner incentives Microsoft is coy about what Ballmer will talk about other than over the last year. “Microsoft’s vision and commitment to partners” and “business “We’ve been trying to ... create a more standard framework around opportunities for partners” our channel incentives, and really try to limit the amount of short-term ✱ Tami Reller, corporate vice president and CFO, Windows & Windows promotional activity that’s going on in lieu of more structured, stable Live, will join Ballmer to talk about Microsoft services and devices; last programs that [are] consistent both in terms of how you claim and the year, Reller introduced Windows Intune during her WPC keynote qualifi cation process, as well as consistent in the economic benefi ts,” Brown said. Tuesday, July 12 Another mention of incentives in the online forum covered eff orts ✱ “Winning with the Cloud” to drive solution incentives to gold competency partners who are not ✱ Satya Nadella, president, Servers & Tools Business necessarily doing the licensing transactions. “The solution incentive program ... puts real meat behind the gold ✱ Kurt DelBene, president, Microsoft Offi ce Division competency. It starts to provide additional revenue opportunities for ✱ Kirill Tatarinov, corporate VP, Microsoft Business Solutions partners that are able to go off and achieve that gold competency,” ✱ “A World of Smart Devices” Roskill said during the forum. Brown said pilot versions of the solution incentive program were running in the United States and some other ✱ Andy Lees, president, Mobile Communications Business Microsoft subsidiaries. ✱ Steven Guggenheimer, corporate vice president, OEM Division

Wednesday, July 13 TRANSITION FY ’12: MONEY ✱ Roskill, “The Value of the MPN” With a year of major transitions behind the WPG, Roskill is looking forward to exploiting the position that Microsoft and its partners ✱ Orlando Ayala, corporate vice president, chairman for Emerging Markets and chief advisor to the COO, “National Priorities: Partnering have developed in FY ’11 to make money together in FY ’12. to Strengthen the Local Economy” “I love to talk strategy, but I like to get into execution. This year has been really about execution. The thing that’s exciting about coming out ✱ Kevin Turner, Microsoft COO, “Winning Together” of this year is now we can look forward,” Roskill says. As an example of ✱ Richard Branson, founder/president, Virgin Group, guest speaker a large opportunity among many, he adds, “Now we’re really set up for —S.B. Offi ce 365 in our FY ’12.” He says Lync looks poised for hockey-stick-like growth and points to partner excitement around Dynamics CRM, Windows Azure, Windows Intune and Windows Phone. At the partner conference starting on July 11, Roskill says Microsoft important group of partners who have signifi cantly more qualifi cations will put the focus on partners in keynotes, videos and sessions. “I than Action Pack subscribers but less than gold competency partners. want to make this much more about partner success,” Roskill says. In other words, partners holding off on pursuing gold are playing “Partners have a choice where they can work with us or they can work into Microsoft’s strategy. But because partners also seem to be holding with other companies.” off on qualifying for silver, Microsoft could be developing gaps in its He says he regularly reminds Microsoft employees why partners distribution of qualifi ed partners across regions and vertical industries. work with Redmond, where they’ve been central to Microsoft’s success for more than 30 years. “These guys are there as a business. We need to be able to help them make money.” • TRANSITION #3: INCENTIVES Tightly related to the MPN transition is an overhaul of the way Microsoft distributes its $4 billion in incentives for partners. Scott Bekker is editor in chief of Redmond Channel Partner magazine.

26 Redmond Channel Partner JULY 2011 RCPmag.com The customer sees supply chain management. You see supply chain solutions.

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28 Redmond Channel Partner JULY 2011 RCPmag.com ‘Windows 8’ Citing “cool” factor, partners see the next OS interface as unifying Microsoft’s platforms. Concerns surround how the touch orientation will translate to the desktop, and whether thorny OEM and development issues ﬁ nd quick resolutions. By Scott Bekker

RCPmag.com JULY 2011 Redmond Channel Partner 29 RCP FEATURE | ‘WINDOWS 8’

The Windows 8 UI is the most dramatic overhaul of the GUI since Windows 95. The Microsoft demo video instantly calls to mind the interface of Windows Phone 7 and its follow-on, code-named Windows Phone 7 “Mango.” Applications appear as tiles, and Harris moved between screens of tiles by swiping his fi nger across the surface. He introduced some new UI motions, such as sequentially cycling through running apps by swiping them in from the side, snapping apps into place to fi ll part of the screen and a new touch keyboard that puts half ith a four-minute, 30-second sneak peek in early June, Microsoft the keyboard in the lower-left corner of the screen and the other half whipped what had been passing industry-wide interest in the in the lower right. next version of Windows up to a fever pitch. Microsoft had been so secretive about the OS until that point PARTNERS APPLAUD THE NEW UI that the company wouldn’t confi rm “Windows 8” as the code name, Partners almost universally applauded the interface, especially for not even after CEO Steve Ballmer referred to the OS as Windows tablet-style use. 8 in a speech. “My initial impression is that the UI for Windows 8 will be a huge Such secrecy didn’t actually imply that anything particularly step forward for partners,” says Barb Levisay, owner of Marketing for special was going on. Windows and Windows Live Division President Partners in Ruckersville, Va. “Partners have thrived working with the Steven Sinofsky customarily says the absolute minimum about current business decision makers because this generation is comfortable pre-release code, and very few observers were expecting Microsoft with Microsoft. As the next generations—the technology natives—take to off er an exciting response to the burgeoning slate/media tablet over the strategic purchasing decisions, we have to present information market that Apple Inc. has been making with the iPad. on their terms. Windows 8 looks like it has hit that mark.” But the short Web video demo, tied to Microsoft speeches at both Levisay added that Windows 8 could bring something else to the the D9 Conference and the Computex electronics show, changed Microsoft channel. “The partners’ ability to attract talent is clearly all expectations for Windows 8. aff ected by the coolness factor. With app development and touch, The Microsoft partner community, for the most part, appeared Windows 8 could give us back some cool. We need young, energetic energized by the demo run by Jensen Harris, director of program entrepreneurs that are proud to sell Microsoft products—just like the management for the Windows User Experience Team. In interviews, partners of today were in the ’80s and ’90s,” she says. Microsoft partners said they were enthusiastic about the design Howard Cohen, a New York-based consultant to IT vendors and and the tablet potential of Windows 8, although some harbored channel partner companies, says he was most encouraged by how concerns about how the touch-orientation will translate to desktop Microsoft referred to “re-imagining” Windows, a step he believes was work, and about where the platform leaves developers and OEMs. long overdue. “Let’s remember the two things everyone said when

WHAT THE PUNDITS ARE SAYING ABOUT ‘WINDOWS 8’ “Anyone who thinks that the ‘touch ﬁ rst’ Windows 8 interface will just be another layer on top of an old, By Microsoft’s own assertion, “Windows 8” is the bloated Windows code base is in for a surprise. If they’re biggest change to the Microsoft ﬂ agship interface a Microsoft competitor, they’re in for a rude shock.” since Windows 95. Here’s how the pundits have reacted Ed Bott, ZDNet so far:

“Windows 8, unfortunately, is designed to be everything for everybody: touchscreen tablet interface and full- “This UI is genius ... Windows 8 has been billed as the ﬂ edged PC OS with all the trimmings. It needs to be just biggest change to Windows since Windows 95. the former. Let Windows XP or Windows 7 ... handle And for once, I think, reality matches the hyperbole.” the PC stuff . Windows 8 is great, Microsoft, for what it Paul Thurrott, SuperSite for Windows needs to be: your weapon against the iPad juggernaut.” Lee Pender, Editor, RCP Update Newsletter

30 Redmond Channel Partner JULY 2011 RCPmag.com Windows 7 came out: ‘Hey, it’s Vista except it works,’ and ‘Hey, they’re trying to make it look more like a Mac!’” Cohen says. “Well, now they’ve ﬁ nally leapfrogged Apple and delivered a more natural, comfortable interface that really gets out of the users’ Would you want to touch that screen? A big ques- way and lets them concentrate on doing tion with the Windows 8 what they came to do.” UI is whether users will He added: “For the ﬁ rst time in a long actually want to touch not time, I feel like Microsoft may finally only a tablet screen but a reclaim a leadership position in user inter- desktop screen. The HP TouchSmart 610 that had face design.” its debut at Computex is Amy Babinchak, president of Harbor available now, but would Computer Services in Michigan, says it’s essentially be Windows too early to say what business opportunities 8-ready for users who Windows 8 might present, but she called like the idea of tapping and dragging on a the release exciting. “I traded in my iPhone desktop monitor. for a [Windows Phone 7-based device] a few months ago and haven’t looked back,” she says. “I think the live tile interface with touch, keyboard and mouse is going to burst open the world of devices. This is a very exciting time to be in IT.” Describing the interface as a “really huge move by Microsoft” was Jerry Weinstock, business development manager for CRM Innovation LLC in Lenexa, Kan. “The new Windows 8 UI is a sea change event that will make the user experience between computing platforms—desktops, notebooks, phones and tablets—a more seamless process,” he says. “Touchscreen

“Windows 8 may take a hard left turn down a cliff with a “It brings everything out to the surface, and you don’t complete UI redesign that will dumb down the interface even have to launch anything to get info from it. The but make it more practical for tablets and phones. ... icon-based apps for Apple would seem kludgy compared This new approach, which mimics the iPhone and to this. I think Microsoft, as a result of this, has actually Android OS GUI ... will essentially kill desktop computing taken the lead in driving the next generation of UI design. once and for all—at least, for Microsoft.” I’m really impressed.” John C. Dvorak, Columnist, PC Magazine Scott Shultz, Creative Director, 1105 Media LLC

“Gartner doesn’t expect Windows 8 to ship before “The new GUI is cool, but I wonder how much it would [2H 2012], about three years after Windows 7 ... Gartner clash with the older one. For instance, I once imagined believes that many organizations will evaluate Windows blending the iPad with a Mac laptop. Then I realized they 8 tablets and other alternative form factors, but will were two very diff erent machines.” standardize PCs around Windows 7 and skip Windows 8.” Doug Barney, Editor in Chief, Redmond Michael Silver, Stephen Kleynhans and David Smith, Analysts, Gartner Inc.

RCPmag.com JULY 2011 Redmond Channel Partner 31 RCP FEATURE | ‘WINDOWS 8’

technology is fi nally reaching its promise. I can’t wait to see how this core change in the OS will enhance business applications like Microsoft Dynamics CRM.” Geno Cenci, Microsoft national practice director for ePlus Technology Inc., says he was impressed with the demos he’d seen. “They seem to have completely focused on tablets/touch/usage/ apps/Web/cloud, and so on, and even getting involved with the hardware,” he noted. “While their competitors take a mobile OS and attempt to optimize it for larger devices, Microsoft took an extremely diff erent approach by developing an OS that’s capable on both traditional machines and portable devices,” Cenci says. “As the UI interface was slick, I think customers will start to ask about open integration with other online services besides Windows Live in the operating system and its core applications.” An open question for Microsoft has been if or how Windows will really work on what the world calls a tablet, and on what Microsoft calls a slate or media tablet. “[Windows 8] is their answer: This is the way a tablet is going to work. If you can get it into the right profi le hardware, that’s going to be incredibly cool,” says Dave Sobel, founder and CEO of Evolve Technologies LLC in Fairfax, Va. “I’m kind of excited about where this could go.” Mike Angiulo, Microsoft corporate vice president of Windows Planning, Hardware and PC Ecosystem, shows off the new DESKTOP QUESTION MARKS “Windows 8” start page at the Computex event in Taipei, Taiwan, June 2, 2011. One partner who doesn’t share the view that Windows 8 leap- frogs Apple is Karl Palachuk, CEO of KPEnterprises Business Lieberman fi nds the interface neither revolutionary nor particularly Consulting Inc. in Sacramento, Calif. “My fi rst impression is that interesting. “It’s clear that this is a kneejerk reaction to the iPad and you can’t help thinking it looks like an iPad,” he noted. While a vain attempt to provide something comparable,” he says. “I really Palachuk liked the fast, clean interface for handheld devices, hope they still support the existing icon-based interface. Otherwise, he and many other partners weren’t sure it would work on the Windows 8 will be the next version of Windows BOB.” desktop. Sobel noted that the demo exposed a Windows 7 interface that’s “I don’t think most people want to reach across their desk to put clearly still there, and Palachuk agreed that the ability to easily switch their hands onto a 22-inch monitor to get their work done. Perhaps interfaces will be important. “I suspect this new interface has some very we’ll see touch monitors that eliminate the keyboard and sit at an cool features that no one will use after the fi rst month. Like Windows angle on the desktop,” Palachuk says. “The most obvious change for Aero,” Palachuk says. the channel is that we can see touchscreens and ergonomic discus- Babinchak suspected clients would require a mix of interfaces that sions in our future. While the ‘Star Trek’ concept of wall computing partners would need to help them confi gure. “The Windows desktop looks cool, it would be exhausting to reach up all day to work on a has been around for a long, long time. Some people have had a hard screen. That means the screen has to come down and the hands have time letting go of the [Windows] XP desktop experience. Getting to come down. If you’ve got one surface for typing and viewing, then those same people to move into tiles is going to be interesting. I think your head tilts down. Ergonomically, this interface doesn’t seem to we might see a distinct separation between the dinosaurs and the make sense on the desktop.” productive workers,” she says. Sobel had almost the same reaction to the desktop question. “I’m sitting at my conventional desktop with my 27-inch display. THE TILE-AND-APP APPROACH How much do I really want to touch it to interface with it? Really, There was a lot of excitement about the tile-and-app approach not that much,” he says. among partners, although some were eager for more details. And the attitude of partners certainly isn’t unanimous that the During the video demo, Microsoft’s Harris explained the model. new direction is the right approach, or even good at all. Philip “Tiles are better than icons for a couple of reasons. They have a little Lieberman, president of Lieberman Software Corp., says: “So, the more space for the app to show its personality,” Harris said. “We intro- geniuses at Microsoft decided that the best thing to do is to transport duced a new platform, based on standard Web technologies—HTML5 the weird and unsuccessful user interface of Windows Mobile 7 to and JavaScript—and it allows the millions of developers who know their PC. I think that Microsoft has lost their mind and someone how to use those technologies to create a new kind of app for Windows is attempting to implement a self-destruct of their most valuable 8. These apps are full-screen. They’re beautiful. They’re designed for

franchise—Windows desktop.” touch, but of course they work great with mouse and keyboard, as well.” MICROSOFT

32 Redmond Channel Partner JULY 2011 RCPmag.com Sobel noted that all the apps in the demo appeared to be Microsoft more eff ectively against Apple’s single device, the iPad, and against apps. “The other piece we need to get into to make this truly exciting is the profusion of Google-based tablets. to understand what the development requirements are to make apps Some members of the normally tight-lipped OEM community run in that world,” he says. “What you don’t want to see is some guy are unhappy enough to speak about the plan to the media. “They’re not write his app well. Say one of those squares has some pixilated really controlling the whole thing, the whole process,” Acer Inc. CEO image that doesn’t do anything right. Let’s be totally fair—that’s not and Chairman J.T. Wang told Bloomberg, in a reference to Microsoft. Microsoft’s fault—but they will take the heat for it.” “They try to set the game rules,” he said, and chip suppliers and PC Microsoft may face pushback from development partners, as well. makers “all feel it’s very troublesome.” In a blog post, Andrew Brust, CEO of Blue Badge Insights in New The open confl ict among normally chummy alliance partners York City, says he likes both the “totality” of Windows 8 and that demonstrates how wide open the market is, and how massive the Microsoft is aiming high, but adds that certain aspects of Windows major OEMs believe the opportunities are. 8 make him “woozy.” Solution provider partners just hope the OEM confl icts get ironed “What about the HTML5 and JavaScript bit? My pedigree is one of out and the development issues get addressed sooner rather than a .NET developer, after all, so this one makes me woozy,” Brust wrote. later so they can do some business. “The thing I’m now waiting “It’s really a lot like Windows Phone 7 but with us using HTML5 instead for most is the future development, specifi cally between x86/x64 of XAML as the syntactic sugar. And, yeah, we’re using JavaScript, but and ARM,” ePlus’ Cenci says. “The framework looks great and so did version 1.0 of Silverlight, and then managed code made its way traditionally Microsoft is very strong with development tools. I just in there. Maybe the same will happen here.” hope this is adopted and used to its fullest potential to help develop The non-Silverlight focus of the demos also sent Microsoft scurrying architecture for future Windows releases.” for the second time in recent months to reassure developers who’ve committed to Silverlight that the Internet application framework has A UNIFIED PLATFORM a strong future with Microsoft. For years Microsoft has talked about Windows as an advantage An unrelated fl ap involves Microsoft steering Windows back into the for mobile phones and potential slates because it’s a unifi ed multiplatform mix with Windows 8. For several consecutive Windows platform. The problem was that users didn’t want to interact releases, OEMs and system builders had settled into the relatively with their phones or tablets through a Windows desktop interface. Suddenly, with an overhaul of Windows 8, Microsoft is looking at a top-to-bottom inter- “When you look at the selection of face that’s more handheld-device friendly, and onscreen keyboards in Windows 8, I think partners are saying they’re interested in where that leads. you see their clear fl ag that this is what “I’ve written recently about the concept and the they intend to provide: a singular interface importance of having a CUE—a Consistent User Experience—across all form factors and device for PC, laptop, tablet, handheld and types,” Cohen says. “When you look at the selection probably even dashboard devices.” of onscreen keyboards in Windows 8, I think you see their clear fl ag that this is what they intend Howard Cohen, Consultant to provide: a singular interface for PC, laptop, tablet, handheld and probably even dashboard familiar situation of having only Intel and AMD chips underneath devices. This is every bit as important to the front-end of the new Windows-based systems. Microsoft’s support for low-power chip redefi nition of business agility we’re seeing as the rapid adoption technology from ARM Holdings Plc in Windows 8 tablets is shaking of cloud computing is at the back-end.” up all those relatively stable alliances. Sobel added that if you throw the Xbox Kinect motion sensor By adding ARM technology, Microsoft’s list of chipmakers expands technology and the new Windows 8 gesture interface into the mix, beyond Intel and AMD to include Nvidia Corp., Qualcomm Inc. and scenarios get very interesting, very fast. Texas Instruments Inc. “What if I use the Kinect to make those motions? The interface A few days before the interface demonstrations, Microsoft on Xbox is not all that diff erent from what we’re seeing in Phone 7, issued a statement to rebut allegations from an Intel presentation Mango and now Windows 8. Microsoft is actually quietly standard- gone viral about the Windows 8 capabilities of various ARM izing on interface,” Sobel says. Add the Skype acquisition, which platforms. Then, right before the UI demos, Bloomberg reported Microsoft has said is a priority to get on Xbox, and Sobel says, “I that Microsoft would use incentives to seek to restrict Windows 8 can see business applications with that combination. I think there’s tabletmakers to working with one of the handful of ARM providers, something there that partners can get involved with.” • and vice versa. The goal, apparently, would be to put more marketing strength behind a smaller number of tablets—allowing Microsoft to compete Scott Bekker is editor in chief of Redmond Channel Partner magazine.

RCPmag.com JULY 2011 Redmond Channel Partner 33 RCP FEATURE | PARTNER SERVICES

Same Grid, New Buildi

34 Redmond Channel Partner JULY 2011 RCPmag.com SHUTTERSTOCK.COM

With Microsoft rolling out more of its key business applications in the cloud, the channel must prepare. But in interviews at Microsoft Convergence, partners and customers are ﬁ nding the cloud is just one more reason to re-emphasize good old-fashioned services. , By Barb Levisay ings RCP FEATURE | PARTNER SERVICES

hile the cloud will to multiple organizations in the same industry. Dynamics CRM and SharePoint are components of many of the new vertical packaged undoubtedly aff ect services, building the deal size and off ering more value to the customer. partner services John Hendrickson, CEO of InterDyn BMI, a Dynamics VAR in Minnesota, explains his company’s approach to target industries. models, many part- “We bundle the solution based on our knowledge of the industry requirements—not so much pure IP, but business process with nersW are already taking steps to expand workfl ow,” Hendrickson says. “Core GP solutions plus linkage with their relationships with customers to the best-of-breed industry solutions create a valuable package. Then we build reporting to bring it all together.” build services revenue streams. During Other simplifi ed services models that are helping partners build revenue include: Microsoft Convergence, the annual ✱ Fixed-fee project pricing with strict adherence to Sure Step, the Dynamics customer and partner confer- offi cial Dynamics implementation methodology from Microsoft. ✱ Out-of-the-box repeatable, functional workflows (such as ence held this April in Atlanta, partners, automating the purchasing process) using Dynamics plus SharePoint. ✱ Modifi ed SQL Reporting Services (SRS) reports built to meet customers and Microsoft executives industry-specifi c government compliance reporting requirements shared their impressions of how part- and packaged for resale. ✱ Dynamics CRM confi gurations that address unique sales and ners are delivering services that meet customer service requirements for industries from boat rentals to real estate management. the changing needs and expectations George Mackiewicz, owner of CAL Business Solutions, a Dynamics of customers. There were three themes VAR in Connecticut, says his company has found success with an industry focus. “We’ve developed middleware to connect line-of- that emerged from the conversations: business applications with GP to provide industry solutions. There’s no need to build the functionality on GP if you can successfully partner “packaged” services are more profi t- with someone else,” Mackiewicz says. able; strategic planning with customers PLAN WITH THE CUSTOMER adds value to the relationship; acting in Whether it’s called a Business Process Review or an Annual Check-Up, working with the customer to build a technology plan the customer’s best interest pays off . that supports the organization’s strategic goals clearly benefi ts the partner and customer. SIMPLIFY THE SERVICES MODEL “With the roadmap, your relationship with the customer becomes Partners are fi nding a number of ways to package their services to strategic and helps them plan their projects and expenditures with make them more repeatable, profi table and cloud-friendly. you,” Hendrickson says. Customers were equally supportive of—and Managed Services. A growing number of Dynamics partners willing to pay for—a yearly meeting to evaluate the current system are expanding on the platform managed services provider (MSP) eff ectiveness, discuss processes in need of improvement and explore model by adding Microsoft SharePoint and Dynamics support to the technologies that could enable business improvement. package. Both service areas are fast-growing and high-margin. These Some partners go so far as to off er a money-back guarantee on partners monitor and maintain servers and applications through a the value of results from an annual check-up. Charging customers monthly service package. for formal business system evaluations can make underutilized Robbie Morrison, director of Technology and Professional Services consultants billable and uncover opportunities for additional product for Solugenix Corp., a Dynamics AX VAR based in California, describes sales and service contracts. his company’s managed services approach: “We fully manage the Doug Kennedy, vice president of Microsoft Dynamics Partners, environment and hardware so all the customer has to do is use the believes that too many partners are undercharging for these system,” he says. “It’s a natural progression to the cloud off erings business-planning services that bring best practices and technology we plan to add.” knowledge to clients. Vertical Solutions. Long evangelized by Microsoft, partners seem “Customers aren’t deriving the most value out of their systems and to be fi nding practical ways to ease into vertical markets without partners can help them,” Kennedy says. Partners need to appreciate major investments. Vertical solutions are defi ned by most partners the value of their own knowledge and experience enough to feel as repeatable implementation, confi guration and reporting delivered comfortable charging for sharing their expert advice, he contends.

36 Redmond Channel Partner JULY 2011 RCPmag.com Helping Your Business THRIVE

Redmond Channel Partner is designed to help make Microsoft partners more successful. The Microsoft channel contends with a unique set of technical, business and even political issues. Redmond Channel Partner directly serves the channel and off ers advice on how to expand businesses, develop fruitful partnerships, build a services-oriented business, work more closely with Microsoft, develop and market unique areas of expertise and satisfy customers.

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Partners often mentioned that an added benefit from the common complaint heard from customers was about partners who expanded MSP concept is an increased familiarity with the day- attempt to implement applications or modules they don’t know to-day operations of those clients. With more insight into the instead of bringing in experts. One Chicago customer described operations of an organization, the partner can suggest process a botched Analytical Accounting (AA) module implementation improvements proactively. “Business advisor” has long been the performed by a partner who fi nally admitted they had not imple- role that Dynamics and platform partners have aspired to—perhaps mented AA previously. that day has arrived. Another customer talked about having to fi nd an expert on her own to implement HR and payroll when their partner was unable to BUILD CUSTOMER TRUST answer basic confi guration questions. Through an Internet search— Most partners get it: There’s a direct relationship between the rather than a partner recommendation—she found Integrity Data, partner’s concern for the best interest of the client and partner a Dynamics GP HR/Payroll ISV, whose extensive knowledge made success. As Gretchen Freeman-Cromar, VP of Client Services for the implementation a showcase. the Oregon-based Dynamics VAR eSoftware Professionals, puts Bringing the best the channel has to off er to your clients builds it: “We work to cultivate trust by demonstrating that we have a trust and expanded service opportunities. team of experts who want to partner with our clients to make the “We can plug in where we’re needed. The local partner builds the best use of technology, and not just treat them like a dollar sign.” relationship and the software manufacturer [ISV] delivers the domain Successful partners don’t jeopardize long-term relationships by expertise to a portion of the project,” says Michael Lilek, president of trying to provide services outside their areas of expertise. The most Shining Brow LLC, a Dynamics fi eld service ISV. “Customers appreciate

“Customers aren’t deriving the most value out of their systems and partners can help them.” Doug Kennedy, VP, Microsoft Dynamics Partners

38 Redmond Channel Partner JULY 2011 RCPmag.com that. We delight the customer and save them gobs of money over the important to all the players in the Microsoft business solutions enterprise solutions.” market and how they’re responding to change. The cloud Whether it’s the partner’s desire to keep all service dollars or fear was a topic, but the challenges customers face—operational that clients will think less of them for not knowing a product, some effi ciency, faster communication, expanding markets, green partners hesitate to bring in the experts. Several ISVs noted that, initiatives, business insight, the list goes on—were the real as vertical solutions are expected from customers, partners should focus of Convergence conversations. Partners that deliver feel confi dent in the value of bringing the subject matter experts in cost-eff ective solutions to help organizations improve their to improve project success. business operations have and will continue to fi nd the silver As Jeff Holway, director of Sales and Marketing for Experlogix Inc., that’s lining those clouds. • a confi gurator ISV for Dynamics, explains: “Our partners love this model. It doesn’t make sense for them to learn the services because we’re a niche product. We come in as the subject-matter experts and make sure the product is deployed correctly. We make the partner Barb Levisay owns Marketing for Partners, a marketing and service look good and keep the customer happy.” delivery leadership fi rm for Microsoft Dynamics, SharePoint and ISV partners. She serves as the event chair on the Board of Directors for THE CLOUD IS NOT THE END GAME the Washington, D.C., chapter of the International Association of The Microsoft Convergence conference provides a unique Microsoft Channel Partners and writes the Marketing Matters blog opportunity to hear from partners and customers about what’s on RCPmag.com.

Best Practices: 3 Key Steps to Build Customer Satisfaction and Services Business As partners look for ideas to refi ne services off erings to build profi tability, a few best practices stand out as bringing signifi cant value to the partner and customer.

Add Customer Events to Your Marketing Calendar. Partners and customers alike talk about the value of getting customers together to share best practices and 1. learn new products. Several partners we talked to hold annual customer conferences that attract more than 100 customers.

Engage the Customer in Development Requirements. Partners unanimously agree that development is the trickiest service to deliver profi tably every time. Gretchen Freeman-Cromar, of eSoftware Professionals, says it best: “We’re taking 2. a more sophisticated approach to manage development projects. We ask clients to take more of a role in requirements defi nition and then set fi rm acceptance criteria for healthier client relationships and more profi table projects.”

Be the Educator. Make sure you’re the one educating your client about new technologies. Cloud adoption hasn’t taken off for most partners, but they’re talking to their clients about cloud computing anyway. Your entire team, from marketing to 3. consultants, should be versed in your new technology messaging so that customers get the right story early and often. —B.L.

RCPmag.com JULY 2011 Redmond Channel Partner 39 RCP FEATURE | OFFICE 365 ILLUSTRATIONBYRYANETTER

40 Redmond Channel Partner JULY 2011 RCPmag.com With its much-anticipated suite, Microsoft is providing solid value at many diff erent price points. The Offi ce suite subscription option, especially, should jumpstart a lot of customer conversations.

BY J. PETER BRUZZESE

When you put the word “Offi ce” in front That’s it. At the core, Offi ce 365 is a re-launched BPOS with of any product coming out of Redmond, some Offi ce options. For those of us who use BPOS, it’s an awesome off ering just because it takes us to the next release folks that aren’t in-the-know are bound of Exchange, SharePoint and Lync. The benefi ts in Exchange to assume it’s the next fl avor of the Offi ce may be lost on the average Outlook user, who would typically suite. I cannot tell you how many people use an Outlook Anywhere or RPC-over-HTTP type connection. have asked me when Word 365 was being But if you connect to your BPOS with Outlook Web App you released. Let’s put this one to rest at the will be pleased when looking at the 2010 SP1 polished version of Outlook Web App. And for SharePoint users, the polished outset: Offi ce 365 is not a new fl avor of 2010 Foundations version you’ll be using when working with Offi ce (not yet, anyway—you never know Offi ce 365 will really impress you, no doubt. if the name catches on what Microsoft will do with it going forward). THE ADMINISTRATIVE SIDE It is, however, the next generation fl avor From an administrative perspective, Offi ce 365 is as easy to work with as any hosted Exchange solution, assum- of the Microsoft Business Productivity ing you have worked with one of these before. Simply Online Suite, which is essentially Exchange, put, it requires much less administrative ability than an SharePoint and Communications Server on-premises deployment of Exchange, SharePoint or Lync. (now Lync Server) all being upgraded Microsoft is handling all of the administrative back-end, including the infrastructure, assurance of high availability from 2007 to 2010 (2010 SP1 in the case (backed by a Service Level Agreement) and recoverability. An of Exchange). It is a per-user, per-month administrator has the ability to confi gure Offi ce 365 through subscription plan to these services that the Web interface that has a small subset of the on-premises allows you to pay-as-you-grow. And there Exchange confi guration options. The biggest worry is creat- are two ways that the “Offi ce” in ce Offi 365 ing users, which involves several screens for entering their information, assigning a role and user location, assigning a is a factor. Users can use the stripped-down, license and confi guring who gets the results e-mail (which browser-based Offi ce functionality known as includes the user name and temporary password). Offi ce Web Apps to perform light editing of The main focus of Offi ce 365 revolves around Exchange Offi ce documents. Plus, for more money per and user creation; however, SharePoint administration is month, higher-end Offi ce 365 subscriptions also made easy through the administration center, which allows for confi guration and management of site collections, allow for monthly fee-based access to the confi guring InfoPath Forms Services, managing user profi les, full desktop version of the Offi ce 2010 suite. managing the term store and more. Lync provides for instant ILLUSTRATION BY RYAN ETTER

RCPmag.com JULY 2011 Redmond Channel Partner 41 RCP FEATURE | OFFICE 365

messaging, as well as audio and video online meeting ability, and this also requires some confi guration through the Admin Overview dashboard that is provided upon fi rst login (see Figure 1). This review covers the public beta for Offi ce 365—general availability was slated to coin- cide with a Steve Ballmer-hosted launch event in New York City on June 28. However, there are promises of a connection piece coming that will bridge the gap between Offi ce 365 and on-premises Exchange with the release of the second service pack for Exchange 2010. This hybrid co-existence connector is supposedly going to introduce a wizard that will allow mailbox moves and make confi guration and management of hybrid environments a bit easier. In addition, Small Business Server 2011 Essentials is also going to have a special connection wizard that will allow SBS admins to easily create and manage user mailboxes that are hosted in the cloud through Offi ce 365.

THE PLANS You may be wondering: If Office 365 is Figure 1. The Admin Home Page in Offi ce 365 shows how few tasks remain for simply an online or hosted version of famil- administrators to handle in the Offi ce 365 scenario. This view shows a version of iar on-premises solutions from Microsoft, Offi ce 365 with Exchange Online, Lync Online, SharePoint Online and Microsoft what is the motivation for relinquishing Offi ce Desktop Apps. that administrative control customers have grown accustomed to over the years? It’s going to come down to three things: price comparison between handling these solutions on-premises and having them handled for you through Offi ce 365; limitations of the Offi ce 365 solution that may be deal breakers for you or your customers; and security concerns or fears internally on placing some of these mission-critical solutions in the hands of another. Because the security and SLA concerns tend to be broader discussions about comfort with the entire category of applications in the cloud or the reputation and capabilities of Microsoft across all of its hosted off erings, we’ll focus our attention here on the nitty gritty of the plans. The Offi ce 365 subscription plans range from $2 to $27 per month. The absolute lowest end versions are for so-called kiosk workers (sometimes referred to by Microsoft as deskless workers in other products). The proﬁ le of typical kiosk workers is that they spend less than 10 percent of their time on a PC, share a terminal with other kiosk workers and haven’t had access to a corporate Figure 2. A service health dashboard shows the administrator the status of the mailbox in the past. Organizations can pay services an organization subscribes to through Offi ce 365.

42 Redmond Channel Partner JULY 2011 RCPmag.com $2 per month for Exchange Online Kiosk. The fi rst real Offi ce 365 suite, though, is called Offi ce 365 K1 (K is for kiosk), and it costs $4 and adds SharePoint Online Kiosk to the Exchange off ering. The top kiosk suite, K2, is $10 per month and it adds the Offi ce Web Apps capability for editing, rather than just viewing, Offi ce documents in a browser. Where Microsoft expects to see the most activity is around Offi ce 365 P1, a $6-per-month Offi ce 365 suite for small businesses and professionals. According to Microsoft, about 70 percent of the participants in the fi rst Offi ce 365 beta were small businesses. Designed for one to 25 users, P1 will support workgroups of up to 50 people. It includes Offi ce Web Apps, a 25GB mailbox for each user and Exchange Online, SharePoint Online and Lync Online. There’s no option to subscribe to the full Offi ce software package in the small business plan, but the product works with regularly licensed 2007 or 2010 editions of Offi ce. Figure 3. Offi ce 365 provides a new way to license the Office suite The group of four plans that brings the most fl exibility, and with Offi ce Professional Plus. some of the most interesting scenarios, is called the Plan E Family (with E standing for enterprise). Mapping most closely to the current BPOS off ering is the E1 plan, which will cost $10 per user per month. It’s designed for organizations with more than 50 users that already have Offi ce or don’t need the suite or any browser-based Offi ce document-editing capability. Next is E2, which pulls in the Offi ce Web Apps, for a total of $16 per user per month. Above those two plans are the E3 and E4 versions that include Offi ce Professional Plus. This is a new licensing model from Microsoft in that it provides a pay-as-you-go option for Offi ce licensing. Users get the full version of Offi ce to install on their desktops, but the organization pays for Offi ce on a month-to- month basis through the Offi ce 365 subscription. (In the event that a user’s Offi ce 365 account is discontinued, the subscription is cancelled and the already-installed Offi ce goes into reduced functionality mode.) What this means is that every organization will need to pull out their calculator and fi gure out what the Figure 4. The feature parity with Exchange 2010 means Outlook Web most cost-eff ective way to license Offi ce is going forward—a App users of Offi ce 365 will be pleased with the polish of the UI. great opportunity for partner consulting engagements with strong customer ROI potential. The E3 plan, the foundation for the Plan E Family beta, costs $24 per user per month and includes Offi ce Professional Plus, voicemail, advanced archive capabilities, services for Forms, Access, Excel and Visio, and some higher-end Exchange and SharePoint functionality. The $27-per-user, per-month E4 edition adds voice capability, called Lync Plus. Pay-as-you-go add-on options include SharePoint Online Storage at $2.50 per GB, extranet capability at $2 and BlackBerry support for $10 per user per month. Now, I mentioned there were limitations in the off ering. These limitations may, in fact, be deal breakers for your organization and typically it comes down to reading the service descriptions for each product (Exchange/SharePoint and Lync) and looking toward the appendix of each to see a comparison between what you have with an on-site version compared to the online version. Figure 5. Higher-end versions of the Offi ce 365 Plan E Family provide For example, in the various enterprise plans there’s a 25GB escalating levels of Lync functionality. mailbox storage limitation. That may be plenty for some, but it

RCPmag.com JULY 2011 Redmond Channel Partner 43 RCP FEATURE | OFFICE 365

may not be acceptable for others. There are also message size limitations (max attachment size) of 25MB, recipient limits of 500 recipients/per day, and message rate limits of 30 messages per minute. Outlook 2003 is not supported. Neither are Windows Mobile 5.0+ devices (Windows Phone 7 devices are supported). Public folders are also not supported (the direction has been to move those to SharePoint and in the Office 365 world that is the only option). On the SharePoint side many of the features are the same due to the Web-oriented nature of SharePoint to start with; however, there are many search features that are not included with the SharePoint Online offering. Lync Online off ers only a small portion of what the on-premises ﬂ avor provides. Again, we were still working with the beta for this review. There’s no substitute for going through the documentation on the General Availability version to see which features and functionality made the ﬁ nal cut. Figure 6. View of the basic Offi ce 365 UI for end users. FINAL WORD ON OFFICE 365 Usually when I give a final word on a product I like to feel my in the 21st century are going to be a bit more open-minded about words are going to be read without bias. The debate over cloud- cloud-based infrastructure, platform and services. Again, the hybrid based solutions has become religious in nature, at this point, so I’ll capabilities of Offi ce 365 give you a chance to keep your on-premises try and cater to all sides here. solution while getting your feet wet in the cloud. I believe Offi ce 365 provides value for enterprise customers looking So, is Offi ce 365 the be-all, end-all of hosted communication and to do the following: collaboration? Price aside, based solely on features and polished look ✱ Provide a robust and familiar experience for users with regard and feel, I’d say absolutely. Bringing price into the picture, I’d say it to communication and collaboration depends on the needs of your company or customer. But I believe ✱ Deliver an easy way to upgrade end users to the latest Offi ce Microsoft has given us something of value for the price tag and a lot platform on their desktops and immediately provide the appear- of price tag/feature bundles to match many diff erent requirements. ance of a whole infrastructure (but without the pain of having The only real negative in this discussion are the limitations found in to set up and manage the solution) the service descriptions. I understand the reasoning behind some of ✱ Off er very tight integration with on-premises Exchange, allowing the size limits and missing features but when comparing on-premises for hybrid deployments that are going to be easy to manage to cloud solutions there will be some who will be able to say “see, they As you can see, I have not compared the cost to other solutions, such aren’t exactly equal.” The more equal they are, the easier it is to debate as Google Apps. Cost is always going to be a factor and the question the move to a cloud-based solution over on-premises. is two-fold: Do you get what you pay for with Offi ce 365? I believe In the end, you’re just going to have to consult with your custom- you do. Do you need all that you are paying for? In my case, and the ers on whether Offi ce 365 is all that they’re looking for within their case of many others, I do need and want all of those features. So I feel environments. • there is real value to the off ering. Every company has diff erent needs. Some customers won’t need as robust an off ering, nor the price tag that comes along with it. For those customers, another solution—less J. Peter Bruzzese (Triple-MCSE, MCT, MCITP), an Exchange MVP, is the polished, perhaps—may be what they need. co-founder of ClipTraining, an Exchange and SharePoint Instructor for Then there are those who are adamant about maintaining their own Train Signal, as well as a well-known technical author for Que/Sams and infrastructure. That is a religious viewpoint at heart. “I was born an others. Bruzzese is also a technical speaker for Techmentor, Connections in-house infrastructure admin and I’ll die an in-house infrastructure and Tech·Ed and is the Enterprise Windows columnist for InfoWorld. admin!” they bellow. Well, those of us who want to stay employed Follow him on Twitter at Twitter.com/JPBruzzese.

44 Redmond Channel Partner JULY 2011 RCPmag.com ON GROWTH BY MIKE HARVATH

VISIT RCPMAG.COM FOR LINKS TO HARVATH’S ENTRY IN RCP’S 2010 MARCHING ORDERS Cursed with Growth SPECIAL REPORT

RCPMAG.COM

is concentration on strategy—the big picture, as it were; the former is the gravitational pull toward the tactical—the nuts and bolts of managing day-to-day The simple truth is that IT services operations. It’s easy to get caught up in managing the operations, as most of the executives have to be constantly looking entrepreneurs who own and run small ahead two and three years. to midsize services fi rms come from the technology side and it’s their fi rst love. re you grappling with the Information Technology, as well as the Growth is not a divine right. It has to curse of growth? You know internal constraints that quickly consume be planned for objectively and executed what that is. Your business IT services executives. relentlessly and skillfully. We’ve seen is growing, but as you It’s this dynamism that drives many executives who’ve adopted what we move to the next revenue growth and prosperity, and it’s the one call a lifestyle approach to their business. Aand profi t milestone, you realize that the characteristic that separates this industry That is, they’re quite satisfi ed having strategies that got you to Point A aren’t from all others. No moss grows on this achieved a size that’s comfortable for the ones that’ll get you to Point B, or the rolling stone, as every day sees the them, and they’re content to stay at that ones that got you to Point B aren’t the introduction of new ideas, technologies, size. For those we say, good for you … but ones that’ll get you to Point C, and so on. products and services, with no end be careful. It may not last as long as you’d It’s a good problem to have, but a problem in sight. You’ve often heard Revenue like. You may fi nd yourself easy prey for nonetheless. Rocket speak of the need to stay ahead those with a more robust growth appetite. At certain growth intervals you’re of what we call the Innovation Cycle. For those with a heartier appetite, you forced to confront the question of whether It’s that four-and-a-half-year window need to know that you’ll hit a revenue you have the horsepower to get to the made up of three distinct periods, each and profi t wall in your growth. The time next level in terms of talent, geography, about 18 months long, which we know to prepare for this eventuality is not service off ering, resources, infrastructure, as growth, stagnation and—inevitably, when you slam into this wall, but long capital and the like. The growth strategies regrettably—decline. before. Ideally it shouldn’t be about that work for a $5 million company won’t Keeping yourself in the growth stage changing your vision, your focus or your get you to $10 million, or those for a $15 means always staying one step ahead of specialization. It should be about how million company won’t get you to $25 business model innovation: externally by to complement your vision with new million. It’s an immutable law of business keeping your company in sync with the strategies that advance your cause. How in the IT industry. ever-changing innovations that defi ne and what your new growth strategies The simple truth is that IT services the industry, and internally by imple- ought to be depends on a number of executives have to be constantly looking menting the need-to-change innovations factors, but shifts may include mergers ahead two and three years. The reason that defi ne your business. Those and acquisitions, adding new offi ces is equally simple: Ours can be an unkind executives that have the wherewithal to and new channels, getting into adjacent industry for those without a forward- do so will fi nd themselves perpetually in markets, or revamping your sales and looking and aggressive, profi table the growth stage. marketing or delivery apparatus. growth imperative, because if you’re not The key to keeping your company Whatever it is you’re contemplating growing you’ll soon fi nd yourself on the perpetually in the growth stage is to doing, the time to start thinking about wrong side of prosperity. It’s an industry adopt a mode of management that and planning for 2013 and 2014 is now. • in which the impediments to growth are moves from “working in” the business inherent in the very dynamism that is to “working on” the business. The latter Mike Harvath ([email protected]) is CEO of Revenue Rocket Consulting Group, an Next Time: Insights from WPC Panel on Growth

ILLUSTRATION BY JILLIAN SCHNARE IT services growth consultancy.

RCPmag.com JULY 2011 Redmond Channel Partner 45 FREE WEBCASTS!

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of selling one product after another, across vendors. What I mean is that partners would sell Product A from Vendor A, but were A few key marketing tactics can start missing opportunities to dovetail the initial sale with Product B from Vendor you on the road to getting more customers B. Therefore, we created a simple in the cloud. cross-selling/up-selling guide that allows partners to map their solutions ven the Microsoft Cloud to do this is to create either an industry and services into an easy spreadsheet. Champions, the U.S. VAR expertise or a domain expertise. The partners were then able to visually stars of online services sales, For instance, to get specifi c guidance see all the available opportunities to sell need a little help when it on tax issues, I use an accounting fi rm products and services to their prospects comes to accelerating their because they’re the experts and have a and customers. businessE in the cloud. reputation for providing their clients with The root of this tool came from surveys I recently completed a project with RCP excellent advice. This reputation arose we did. The surveys told us that success- sales columnist Ken Thoreson, president of because they write articles and guest ful partners had at least four cloud the Acumen Management Group, and with lecture at events. They created the market products or services in their portfolio. Microsoft. We worked with the Microsoft perception that they’re experts in what The partners who were struggling only Cloud Champions group to specifi cally fi nd they do—and, naturally, people have had approximately two. It’s simple in ways to help these partners accelerate their started to gravitate toward them. that, the more entry points there are cloud practices. We all know that in order The same holds true with a technology to your prospect, the higher likelihood to grow, we must increase marketing and services provider. Everyone can claim you’ll sell something to them. Map your sales pipelines. With the cloud, the task to sell Offi ce 365 or Microsoft Dynamics portfolio and you’ll increase your chances takes on even greater signifi cance because CRM, but not everyone can claim to be of success. we need multiple cloud opportunities for experts on the usage of offi ce tools within every on-premises opportunity. a certain industry or on understanding Action The long-term benefi ts of having a the privacy and security components In order to make anything work, includ- client in a cloud solution are tremendous: when it comes to cloud computing. See ing the guides discussed here, partners predictable revenue, stickiness of the the diff erence? One angle of approach need to take action. The smallest step relationship, ability to more easily is product-focused, and the universe is forward is still a step forward. Take introduce additional products and more. fi lled with partners. The other angle of that step! • The diffi culty is in getting there. A few key approach is expert-driven—narrowing marketing tactics can start you on the road down the available partners by quite a to getting more customers in the cloud. bit. Which group do you want to be in? Keith Lubner is managing partner of Channel Mind you, this is a subset of the overall The partners that are starting to really Consulting Corp., a global consulting guides we developed. take off are the ones who’ve implemented organization focused on channel strategy, some sort of thought leadership into their design, enablement, outsourcing and training Create Thought-Leadership Campaigns marketing campaigns. for growing companies. For more information I’ve written a few times on this topic over about Lubner and his organization, be the last several years, but the notion of Create Cross-Sell/Up-Sell Guides sure to visit channelconsultingcorp.com, implementing these sorts of campaigns When it comes to the cloud, partners or you can e-mail him your questions at became even clearer during the work on were unaware of the natural progression [email protected]. the cloud project. Partners in the cloud need to create a gravitational market Next Time: The Last Mile for KPIs

ILLUSTRATION BY JILLIAN SCHNARE pull toward their business. The only way

RCPmag.com JULY 2011 Redmond Channel Partner 47 CHANNELING THE CLOUD BY JEFFREY SCHWARTZ

that enables the pay-as-you-go service. Intel Taps Hybrid The AppUp service catalog consists of a variety of solutions, which include: ✱ ERP as a Service: Running Windows Clouds for SMBs Server 2008 R2, Intuit QuickBooks and fi rewall, backup and antivirus software from partners in the catalog ✱ Collaboration as a Service: Windows SBS with Exchange and SharePoint, backup and antivirus software ✱ Security as a Service: Astaro Unifi ed threat-management suite ✱ Backup as a Service: Vembu StoreGrid backup software allows customers to back up locally and to a cloud provider Everybody benefi ts in this model, explained Bridget Karlin, general manager for Intel Hybrid Cloud. “The small business benefi ts because they get access to the pay-as-you-go software. They have cloud access to the software catalog for the applications that are important to them, and they have their data on-site, with no capital expenditure upfront for the server hardware,” Karlin said. For a physician’s offi ce, delivering electronic medical record (EMR) solutions may be out of reach for some, Karlin explained. But if it can be delivered in a

ntel has rolled out what it describes Customers will have a server on-premises based as a hybrid cloud service that will allow small and midsize busi- on the Intel reference architecture by OEM nesses to deploy bundled solutions partners that will be delivered by the MSP. on-premises that will be adminis- teredI by a managed services provider. Platforms, Microsoft, Novell, Symantec cloud model, where the offi ce can pay for Think of it as having the benefi ts of and Vembu, among others. it on a subscription basis yet keep the data paying for Software as a Service, in that Customers will have a server securely on-premises (a key requirement), customers pay for usage, but having the on-premises based on the Intel reference that might address many of the barriers to data and apps on-premises. Still, it’s architecture by OEM partners that will deploying the EMR solution. managed by an outside provider. be delivered by the MSP. Initially single- MSPs and ISVs also benefi t, Karlin said, The Intel AppUp Small Business Service socket Xeon servers will be available from in that they can immediately convert Catalog is kicking off with solutions from Lenovo and white-box server vendors, with their customers to a subscription model about two-dozen software vendors whose dual-socket servers to follow from Acer or take on customers that were otherwise off erings will run on the Intel Hybrid and NEC, and perhaps others in the future. out of reach. Cloud Platform. Among the software Customers can lease the servers from the And, she noted, the OEMs and white-box vendors and ISVs whose off erings are in MSP or the vendors, Intel offi cials said. server vendors benefi t because they have the catalog are Allscripts, Asigra, Astaro, The Intel Hybrid Cloud software the opportunity to deliver their hardware Coversant, GFI, Intuit, KineticD, Level stack provides secure usage monitoring in this new hybrid cloud model. •

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

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