Microsoft Dynamics CRM 2011

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Untitled-1 1 5/24/11 8:53 AM Dynamics CRM 2011 Review; Opportunities with Lync

RCPmag.com ✱ June 2011

PARTNER SALARIES PLATEAU

In RCP’s 5th annual Salary Survey, we found salaries are ﬂ at for the most part. But while pay is stuck on a plateau, the grass up there is deﬁ nitely looking $greener this year than last. NUMBER 6 VOLUME 6 ✱ VOLUME BETTER BUSINESS INTELLIGENCE AT A BETTER PRICE UP TO 72% LESS

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Availability: All offers subject to availability. Lenovo reserves the right to alter product offerings and speciﬁcations at any time, without notice. Lenovo is not responsible for photographic or typographic errors. Pricing: Pricing valid through 06/30/11. Prices do not include tax, shipping and handling or any recycling fees and are subject to change without notice. Your speciﬁc contract discount prices may vary and cannot be combined with prices shown. For question on your current pricing, contact your sales rep. Reseller prices may vary. Warranty: For a copy of applicable warranties, write to: Warranty Information, P.O. Box 12195, RTP, NC 27709, Attn. Dept. ZPYA. Lenovo makes no representation or warranty regarding third-party products or services. Visual is representative. Trademarks: The following are registered trademarks of Lenovo: Lenovo, the Lenovo logo and ThinkPad. Intel, the Intel logo, Intel Core and Core Inside are trademarks of Intel Corporation in the U.S. and other countries. Microsoft and Windows are registered trademarks of Microsoft Corporation. Other company, product and service names may be trademarks or service marks of others. ©2011 Lenovo. All rights reserved. MMG_US_HPA_Q1_12_21879 Inside JUNE 2011 ✱ VOLUME 6 ✱ NUMBER 6 [ 2011 RCP ANNUAL SALARY SURVEY ] DEPARTMENTS 18 9 Channel Report CLOUD: 7 Key Features of the Offi ce 365 Beta ...... 9 IUR: The Long Road to the Action Pack for SBS 2011 ...... 10 SURVEY: Top 10 Microsoft Products ...... 12

MSPS: Nor Rain, Wind, Thunder, Fire ...... 13 ROADMAP: 2013 Likely Time Frame for Windows 8 ...... 16 CORPORATE REP: Google Jumps to No. 1...... 16 BPOS: Microsoft Online Suite Gets FISMA Clearance .... 17

SMBS: Google Apps No Longer Free for Small Businesses ...... 17

COLUMNS SELLING: Ken Thoreson Strategic Sales Management for the Cloud ...... 38 CHANNEL CALL: Keith Lubner P = Performance ...... 39 CHANNELING THE CLOUD: Jeff rey Schwartz A Lesson from the Amazon Outage: Speak Up ...... 40

$FEATURES

18 Partner Salaries Plateau SPECIAL PULLOUT SECTION (and That’s OK) RCP’s 5th annual Salary Survey ﬁ nds partner salaries in 2011 are holding steady. That’s a big improvement after the drop last year, and many partners see reasons for optimism about their personal fortunes as they look into their pipelines for the remainder of 2011.

26 Reach Out and Touch Someone Partners are ﬁ nding ways to use Lync and related UC technologies to transform the way customers communicate.

33 Microsoft Dynamics CRM 2011 PARTNER’S GUIDE TO THE CLOUD DECISION MATRIX When it comes to build versus buy versus resell, Putting the latest version of the Microsoft CRM tool through its the cloud holds an overwhelming number of paces, we found many worthwhile improvements among the options. Here’s a guide to ﬁ nding the right path. 500 or so new features that give Microsoft partners an even more By Scott Bekker solid competitor to Salesforce.com and Oracle.

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

RCPMAG.COM + JUNE 2011 + VOLUME 6 + NUMBER 6

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 ADRIAN JONES: Production Coordinator Charles Johnson HOW THE HP SUPERSTAR’S CAREER WENT SIDEWAYS RCPU ONLINE/DIGITAL MEDIA In an online exclusive, Scott Bekker Site Editor Gladys Rama reports on how the former HP Stay tuned to channel Editor, RCP Update Lee Pender Americas channel chief’s move news with the Redmond Director, Online Media Becky Nagel to Oracle Corp. is in limbo amid Online News Editor Kurt Mackie accusations of a “secret relation- Channel Partner Update Associate Web Editor Chris Paoli ship” with an HP subordinate and e-mail newsletter, written Site Administrator Shane Lee stealing company trade secrets. by Lee Pender. Designer Rodrigo Muñoz RCPmag.com/Bekker062011 ADVERTISING AND SALES Associate Publisher Dan LaBianca MARKETING MATTERS: ON THE CONVERGENCE 2011 ANNOUNCEMENT THAT Microsoft Account Manager Danna Vedder CLOUD MESSAGING MICROSOFT PLANS TO HOST DYNAMICS ERP Sales Manager Al Tiano The cloud may be everywhere For Microsoft, hosted ERP will probably be a good thing, an Advertising Sales Associate Tanya Egenolf these days, but that doesn’t attractive option for companies that aren’t quite ready to necessarily mean everyone— sign on to the full Dynamics experience yet. For hosting especially your own prospects— partners, Microsoft’s move is likely bad news. But for the understands what it actually is. President Henry Allain bulk of Dynamics partners, depending on how Microsoft Vice President, Publishing Matt Morollo Barb Levisay drills down on compensates the channel for bringing in cloud customers Director, Marketing Michele Imgrund how to take the opportunity to and how much customization work there is left to be done in Online Marketing Director Tracy Cook enlighten and empower your the cloud model, hosted Dynamics could pose an excellent customers so they can fully grasp revenue opportunity. the new technology. The most RCPmag.com/PenderA0611 President & Neal Vitale important aspect? Start simple. Chief Executive Offi cer RCPmag.com/Levisay0611 ON CRAIG MUNDIE’S VIEW OF THE TABLET MARKET Senior Vice President & Richard Vitale We don’t mean to put words in Mundie’s mouth here, but he Chief Financial Offi cer PDF BACK ISSUES seems to be saying that some sort of tablet-smartphone love Executive Vice President Michael J. Valenti Missed an issue? Now you can child is going to emerge at some point. Along with it will exist Senior Vice President, Abraham M. Langer download PDFs of the magazine—all the PC in some sort of less portable, more powerful laptop Audience Development the way back to the inaugural July form. & Digital Media 2005 issue. RCPmag.com/PenderB0611 Vice President, Christopher M. Coates RCPmag.com/PDFIssues Finance & Administration Vice President, Erik A. Lindgren Information Technology & Application Development BY THE NUMBERS Vice President, Carmel McDonagh Attendee Marketing Of Eggs and Baskets Vice President, Event Operations David F. Myers

Must be the economy. Very few RCP readers who participated in this Chairman of the Board Jeff rey S. Klein year’s salary survey relied wholly on Microsoft as a partner. We asked: Is Microsoft ... Reaching the Staff My company’s only vendor partner: One of several vendor partners: Staff may be reached via e-mail, telephone, fax or mail. 8% 60% A list of editors and contact information is also available online at My company’s most important A less signiﬁ cant vendor RCPmag.com. 24% 8% E-mail: To e-mail any member of the staff , please use the vendor partner: partner: following form: [email protected] Framingham Offi ce (weekdays, 9:00 a.m. – 5:00 p.m. ET) SOURCE: RCP SALARY SURVEY, MAY 2011 Telephone 508-875-6644; Fax 508-875-6633 600 Worcester Road, Suite 204, Framingham, MA 01702 Redmond Channel Partner (ISSN 1556-2727) is published monthly by 1105 Media, Inc., 9201 Oakdale Avenue, Ste. 101, Chatsworth, CA Irvine Offi ce (weekdays, 9:00 a.m. – 5:00 p.m. PT) 91311. Periodicals postage paid at Chatsworth, CA 91311-9998, and at additional mailing offices. Complimentary subscriptions are sent Telephone 949-265-1520; Fax 949-265-1528 to qualifying subscribers. Annual subscription rates payable in U.S. funds for non-qualified subscribers are: U.S. $39.95, International 4 Venture, Suite 150, Irvine, CA 92618 $64.95. Annual digital subscription rates payable in U.S. funds for non-qualified subscribers are: U.S. $39.95, International $39.95. 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. Telephone 818-814-5200; Fax 818-734-1522 POSTMASTER: Send address changes to Redmond Channel Partner, P.O. Box 2166, Skokie, IL 60076-9282. Canada Publications 9201 Oakdale Avenue, Suite 101, Chatsworth, CA 91311 Mail Agreement No: 40612608. Return Undeliverable Canadian Addresses to Circulation Dept. or IMS/NJ. Attn: Returns, 310 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 The opinions expressed within the articles and other contents Redmond Channel Partner, 16261 Laguna Canyon Road, Ste. 130, Irvine, CA 92618. Legal Disclaimer: The information in this herein do not necessarily express those of the publisher. magazine has not undergone any formal testing by 1105 Media, Inc. and is distributed without any warranty expressed or implied. Implementation or use of any information contained herein is the reader’s sole responsibility. While the information has been reviewed for accuracy, there is no guarantee that the same or similar results may be achieved in all environments. Technical inaccuracies may result from printing errors and/or new developments in the industry. Corporate Address: 1105 Media, 9201 Oakdale Ave. Ste 101, Chatsworth, CA 91311 www.1105media.com. Media Kits: Direct your Media Kit requests to Dan LaBianca, Associate Publisher, 972-687-6702 (phone), 972-687-6799 (fax), [email protected]. Reprints: For single article reprints (in minimum quantities of 250-500), e-prints, plaques and posters contact: PARS International Phone: 212-221-9595. E-mail: [email protected]. www.magreprints.com/QuickQuote.asp. List Rental: This publication’s subscriber list, as well as other lists from 1105 Media, Inc., is available for rental. For more information, please contact our list manager, Merit Direct. Phone: 914-368-1000; E-mail: [email protected]; Web: meritdirect.com/1105.

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Microsoft’s Once-Shiny Brand Needs Some Polish BY SCOTT BEKKER

icrosoft’s brand is kind of like a retirement account that’s growing in value but isn’t keeping up with infl ation. Independent market reports released in May have Microsoft trailing M other technology leaders in brand value and corporate reputation. Millward Brown, whose inaugural BrandZ list of the 100 most Now Apple is fi rst with an estimated valuable global brands in 2006 put Microsoft at No. 1, now has brand value of $153 billion, Google is Microsoft at No. 5. A Harris Interactive survey had Microsoft second at $111 billion and IBM is third falling from No. 7 last year to No. 16 in a rating it developed called at $101 billion. Microsoft sits in fi fth the reputation quotient. place at $78 billion, and is behind a There are some bright spots, however. On the Fortune magazine non-technology company (McDonald’s) list of the World’s Most Admired Companies from earlier this for the fi rst time. year, Microsoft went from No. 11 in 2010 to No. 9 this year. Of To recap: From 2006 to 2011, Microsoft course, Apple is No. 1 there. And in the Redmond Channel Partner went from $62 billion to $78 billion, reader survey earlier this year, partners said the Microsoft brand while Apple raced from $16 billion to overwhelmingly continues to be a benefi t for business. $153 billion in brand value and IBM Yet looking at the Microsoft brand through the lens of the soared from $36 billion to $101 billion. Millward Brown ranking shows how its value has been stuck in Is a turnaround for the Microsoft neutral. brand possible? You bet. Look at what’s In 2006 as the No. 1 brand worldwide, Microsoft’s closest happened to IBM and Apple since peers were non-technology companies such as GE and Coca-Cola. 2006. Apple did it with market-making Google and IBM had a little more than half of Microsoft’s brand products (the iPhone and iPad devices). value—Apple at $16 billion had about a quarter of Microsoft’s Unless Microsoft has some tremendous $62 billion in BrandZ value. At the time, Microsoft seemed like an innovation up its R&D sleeves, maybe it unstoppable technology juggernaut. had better look to Armonk, N.Y., to fi gure Microsoft dropped to No. 2 behind Google in 2007 and held on out how the IBM logo regained its luster. to that spot for two more years in 2008 and 2009. In 2006, Gold Certifi ed Partners had a Last year, the list was shaken up to Microsoft’s detriment, with golden badge atop a golden brand. Now IBM and Apple taking second and third place behind Google. the Gold Certifi ed Partner level is gone, Microsoft wound up fourth. and the brand isn’t as shiny, either. Is customer perception aff ecting your decisions to carry some Microsoft products, or at least to lead with them? Or is this still a consumer story that’s not leaking into the business world? Let me know at [email protected]. • PHOTOGRAPH BY KATHERINE LAMBERT KATHERINE BY PHOTOGRAPH

6 Redmond Channel Partner JUNE 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. MSP Update to Your Inbox

MSP Update e-Newsletter %HVWSUDFWLFHV FDVHVWXGLHVDQGEXVLQHVVDQG WHFKQLFDOLQVLJKWVIRUJURZLQJ\RXU 0DQDJHG6HUYLFHV3URYLGHUSUDFWLFH Subscribe Today. It’s Free! RCPmag.com/newsletter SPECIAL PULLOUT SECTION

PARTNER’S GUIDE TO THE Cloud Decision Matrix When it comes to build versus buy versus resell, the cloud holds an overwhelming number of options. A guide to ﬁ nding the right path. By Scott Bekker

t’s no great insight to say there’s been a lot of hype businesses (SMBs) may prefer that route. Others will around cloud computing. In fact, the hype cycle is have a mix of traditional servers, private clouds and already pretty well into the backlash phase. Many public cloud services. Ihot technologies in the history of IT at fi rst appear Partner companies that want to have a foothold in a to be a panacea, then rapidly fall into niches as various market where growth beats the overall industry trend, realities set in. Cloud computing appears to be follow- however, need to be in the cloud, according to analysts. ing that pattern, but at a pretty large scale—the niche “Worldwide revenue from public IT cloud services for the cloud still has the potential to be pretty massive. exceeded $16 billion in 2009 and is forecast to reach Will the cloud replace so much that every organiza- $55.5 billion in 2014, representing a compound annual tion’s IT infrastructure will simply become smartphones growth rate (CAGR) of 27.4 percent,” market research and laptops on a wireless network connected to the cloud fi rm IDC wrote in a research announcement last year. for all of the services formerly provided in the backroom? “This rapid growth rate is over fi ve times the projected Nope. Start-ups may do that. Some small and midsize rate of growth for traditional IT products (5 percent).”

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www.kineticd.com/rcp 1.866.430.2406 | [email protected] “Worldwide revenue from public IT cloud services exceeded $16 billion in 2009 and is forecast to reach $55.5 billion in 2014, representing a compound annual growth rate (CAGR) of 27.4 percent.” IDC Research Announcement

Even by 2014, however, public IT cloud off erings will still represent only 12 percent of the size of traditional IT spending budgets, IDC noted, under- scoring the need for services providers to keep that other foot planted in traditional lines of business. More partners are understanding that they need a strategy sooner rather than later for addressing a technology category that IDC projects will be driving IT growth for Infrastructure as a Service (IaaS) platform, or building the next 20 years. your own infrastructure from scratch. Each has advantages “I think people are past the denial stage,” Arlin Sorensen, and disadvantages. founder of the Heartland Technology Group (HTG), said in summarizing the opinions of HTG members at a recent BUILD HTG Summit in Texas. “I think everybody knows that it’s The build option is where a lot of partner companies a real deal and it’s going to happen.” headed a few years ago before a lot of big vendors At the same time, Sorensen notes that the vendors have took up the SaaS mantle. Even as IT’s biggest players settled down a bit, as well. “I have seen the ‘cry wolf’ stuff offer intimidating competition to small shops, new kind of stop,” he says. A case in point is Microsoft. With virtualization technology and private cloud-enabling its seriousness about the cloud established with the “all software from some of those same vendors are making in” message last year, Microsoft is back to emphasizing its private datacenters easier and more cost-eff ective for full portfolio of on-premises, hybrid and cloud products. partners to maintain and to open to customers. There are a few key decisions that every partner The most obvious advantage of private datacenters is company needs to make. The fi rst is which technologies the higher margins partners can command when they to off er customers in the cloud—storage, backup, e-mail, control everything. The partner has complete control of communications, server management, business applica- the customer billing and knows exactly how, where and tions and so on. That decision is specifi c to the roots of when customer data is backed up and knows all about every solution provider, but no matter the answer, the the applications that are running. next question is more universal: What’s the best way to The disadvantages are just the fl ip side of the advantages. put that service in the cloud? The higher margins only come after the capital expenses The main options are reselling a Software as a Service of building, maintaining and staffi ng the datacenter are (SaaS) provider’s solution either under the existing brand recouped. The risk is multiplied—when there’s an outage,

SHUTTERSTOCK or white label, buying software and setting it up on an there’s no commiserating with the customer about the

RCPmag.com JUNE 2011 Redmond Channel Partner 3 RCP FEATURE | CLOUD MATRIX

major IT vendor or hoster. It’s down to the partner to fi x the customers and keep them running. Under many off erings, problem, working all night or all weekend if necessary, and partners merely need to sign up the customer with the honor the Service Level Agreement. vendor and point the customer’s systems to the right cloud addresses and the SaaS off ering is running with recurring BUY monthly commissions arriving in the partner’s mailbox. Using an IaaS platform is an option that’s growing in avail- Up-front risk for the partner is minimal, and far less invest- ability. Major vendors like Amazon.com Inc. and Microsoft ment is required in technical know-how and back-end have built out massive datacenters for the model, and the hardware and software. same virtualization and private cloud technology that But those advantages come at a price. The ease of customer can help partners set up their own datacenters is making setup makes customer relationships less sticky. In cases of it easier for pure-play hosting companies to offer IaaS direct billing, the partner has no control over margins. The themselves. literal price of handing off all that responsibility to the vendor The approach minimizes up-front costs. A partner getting is lower margins on the service. Those margins—and the into cloud only has to buy or write the software that either lowered need for technical staff on SaaS solutions—result in loads on the IaaS platform or feeds data to the IaaS storage a radically diff erent business model for SaaS partners: lighter targets. Back-end maintenance is no longer a concern, and the on engineers and heavier on sales. IaaS costs scale with demand. Under the model, the partner The loss of control in the IaaS scenario is amplifi ed with has a lot of control over margins and billing, with the ability SaaS—the vendor not only controls the infrastructure but also to charge customers for precisely what they’re using and to the application. That means even fewer support headaches for the partner, but it means there are almost no problems that a partner can fi x on a customer’s behalf. Customization options “I think people are past the denial are also greatly constrained. A recent example of the loss of stage. I think everybody knows control in a SaaS environment was the Microsoft Business Productivity Online Suite outage over several days in May, that it’s a real deal and it’s going when problems with malformed e-mails caused message to happen.” backlogs of six to nine hours in some cases. Microsoft first offered very little communication Arlin Sorensen, Founder of the Heartland Technology Group (HTG) about the problem and later seemed mystifi ed as to why a normally minor problem caused such major e-mail pileups. abstract those costs within their overall service. The partner also The case shows how this brave new world of scale can presumably profi ts from the benefi ts of datacenter-management introduce problems that stump even the foremost experts scale. In theory, the hosting company has top-fl ight people and on a given technology. processes in place to off er much better uptime than a smaller company could provide. FINDING A PATH In reality, a lot of the major cloud vendors are building data- Every one of the options has pluses and minuses. Partners centers of such scale that they’re encountering new categories who go in with open eyes, and realize that every option has of server-management problems. As one contractor working signifi cant drawbacks, will be in a better position to expect on a large vendor’s monstrous new class of datacenters told those problems, negotiate aggressively with their vendors, RCP on a not-for-attribution basis, every 40,000 additional set their customers’ expectations and deal with the issues servers is creating entirely new types of system problems that when, not if, they arrive. have to be discovered, then analyzed, then fi xed. The only sure way to fail, or at least stagnate, is to not make Vendor communication during outages can also be a problem. one of the hard choices on cloud and add a service line to the A partner and its customer are only a small sliver of the customer on-premises work. As companies from the micro-SMBs up base for an IaaS provider. Amazon.com’s recent four-day outage to the largest enterprises drift up to the cloud, partners must at a Northern Virginia datacenter sparked outrage from custom- have an off ering. ers who couldn’t get their data, and several high-profi le social “I think partners are realizing that it’s not all or nothing and media companies saw their businesses slow to a crawl during that there are a series of steps to migrating their businesses the outage. Ultimately, Amazon.com concluded that a tiny over,” Sorensen says. “Most of us can’t just shut one off and fraction of the data lost in the outage would never be recovered, start the other one up. I think there’s a lot more reality in but a tiny fraction at Amazon.com’s scale is a lot of lost fi les. the discussion than there was. I think it’s a really healthy discussion.” • RESELL The other major option is to partner with a SaaS provider. When it works, this model is the easiest one to spin up Scott Bekker is editor in chief of RCP.

4 Redmond Channel Partner JUNE 2011 RCPmag.com TRENDS ISSUES Channel ANALYSIS REPORT June 2011

{Cloud} 7 Key Features of the Offi ce 365 Beta A ﬁ rst look at the public beta of the much-anticipated successor to the Microsoft Business Productivity Online Suite. By Jeffrey Schwartz

icrosoft has released the general beta of Offi ce 365, and there’s a lot to see. Announced in October,M Offi ce 365 is perhaps the company’s most ambitious eff ort yet to transition its traditional software business to the cloud. Offi ce 365 will replace the Microsoft Business Productivity Online Suite (BPOS). Set for release later this summer, Offi ce 365 is a major upgrade of BPOS. The latter consists of Exchange Online, SharePoint Online and Offi ce Communications Server (OCS) Online. Offi ce 365 brings Exchange, SharePoint and the Microsoft successor to OCS, called Lync Server. While Offi ce 365 vastly improves upon those products, it also brings many of the featuresurees ViewingViewi a Word document in a Mozilla Firefox browser with of the traditional Offi ce suite to the cloud. But to becl eeaclear,r, tthehe Offi ce 365 beta. Microsoft is touting a hybrid approach to Offi ce5 .365. TTh eThe typical user will run the Offi ce client when they ehave access access an improvedim experience with faster page loads and to it, and the Web version when that’s the only option,on, hihighergh fi delity. according to Microsoft. Offi ce 365 is also designedto tolet let 2. MicrosoftM Office Professional Plus. For enterprises users collaborate with others in the cloud, whether orr not that ddon’t want to shell out several hundred dollars for a they have access to Offi ce. ppermanenterm Offi ce license, Offi ce Professional Plus off ers the If you sign up to test the beta, here’s a condensed lolookook aatt bebenefine ts of the full Offi ce suite with the services eredoff by some of the features you’ll see: Offi cec 365 online for a monthly fee. This will appeal to shops 1. Office Web Apps. Users can view and edit Word, that haveh fl uctuating headcounts or those that don’t want Excel, PowerPoint and OneNote documents with a WebWeb to investinv capital in software licenses. Included are all the browser. The documents can also be accessed by anyny appsapps off ered in Offi ce 2010 Professional such as Word, Excel, team member using the traditional Offi ce client.ull Multipletiple PowerPoint,Powe Outlook, Access and Publisher. It also includes users can edit documents and spreadsheets from thehe SharePointShar Workspace 2010 and Lync Server 2010. Offi ce Web client. The updated Silverlight-based Web appp boastsbooasts ProfessionalProfe Plus includes support for Offi ce Web Apps, MICROSOFT

RCPmag.com JUNE 2011 Redmond Channel Partner 9 CR

{Cloud}

which enable sharing of documents on SharePoint Online. A key feature in the Offi ce Professional Plus suite is the ability to coauthor, allowing for both client and Web-based collaboration of documents and spreadsheets. 3. Feature Parity in Exchange. With the delivery of Exchange Online and Offi ce 365, Microsoft says there’s feature parity with the on-premises and online versions. Each user can store up to 25GB per mailbox and send messages up to 25MB apiece. 4. Collaboration. Administrators can empower end users to create SharePoint Team Sites where {IUR} members of groups can collaborate on documents. Individuals can create The Long Road to the Action virtual teams and shared contact databases. Users can post documents Pack for SBS 2011 to SharePoint Online sites. Workgroup Problems posting the server software and product keys delayed release of the members don’t need an Offi ce 365 product to the Microsoft partner digital distribution portal. By Scott Bekker subscription. 5. Conflict Resolution. When people After a 45-day delay, partners can get In his role as the public face of are simultaneously editing a docu- Windows Small Business Server (SBS) Microsoft to partners, it has fallen to ment, Offi ce 365 has a confl ict resolu- 2011 through the digital distribution Ligman to bear the brunt of partner tion engine. When there’s a confl ict in portal, where partners with Action Pack frustration with the delay. any of the Offi ce 365 document types, subscriptions or gold or silver competen- Later that month, Ligman wrote, users receive an alert. Users can see cies go for internal use rights software. “Thank you to all of our partners for their who’s sharing a document. Microsoft had originally planned to patience as we worked to resolve all of 6. Smartphone Access. Users can make SBS 2011—which is a key product the regional certifi cation compliance access Offi ce documents in their for partners and especially the large Small processes needed in order to bring you native format from SharePoint Business Specialist community— the bits and keys online. We truly appreci- Online if they have phones based on available by the end of February. But ate your partnership, understanding and Microsoft Windows Phone 7. For those Microsoft ran into unspecifi ed problems utilization of the workaround methods using iPhones, Android devices or with posting the server software and we provided for you in the interim.” BlackBerry devices, the data appears Multiple Activation Key product keys to The update covers SBS 2011 Standard in a browser. the portal, and delayed the release to Q2. and Essentials. SBS 2011 Standard was 7. Lync Online. An IM window allows In a blog posting announcing released to volume licensing customers users to see who’s online in their the availability of SBS 2011 on the on March 17. Engineering work on SBS network. It works with Offi ce 365 digital download portal in mid-April, Eric 2011 Essentials was fi nished on March users as well as anyone connected to Ligman, director of worldwide partner 29 and general licensing availability—as Exchange Server 2007/2010. Lync experience for the Microsoft Worldwide well as the fi rst systems with the software also can connect external users with Partner Group, wrote that he was “very preloaded—was planned for early May. • Windows Live IDs. Users can chat, happy” to provide the update. He was so make telephone calls, videoconference, happy, in fact, that he put the “very” in all share desktops and conduct meetings. caps and in red letters. Scott Bekker is editor in chief of RCP. A free Web app lets you invite non-Lync users to a meeting. •

Visit RCPmag.com for daily news updates Jeff rey Schwartz is executive editor of RCP. ILLUSTRATION SHUTTERSTOCK.COM BY

10 Redmond Channel Partner JUNE 2011 RCPmag.com

CR Follow us at twitter.com/RedmondPartner

{Survey}

Top 10 Microsoft Products Partners rate the products that are most important to their businesses.

n the past, Microsoft said its portfolio includes as many as 350 products that partners sell. Which ones matter the most to the partners who build their businesses on Microsoft software sales? Exchange Server (Rating When we surveyed average: 1.84) The Microsoft 5ﬂ agship e-mail server, which has IMicrosoft partners in January for our essentially won its drawn-out war of annual Redmond Channel Partner attrition with Lotus Notes/Domino, is magazine reader survey, we also asked huge for partners. what Microsoft products were most important to their businesses. Partners were able to rate each SQL Server (Rating average: 2.17) product as “very important,” which SQL Server has been inserted so 4deeply into the Microsoft stack gave it three points; “important,” that it’s almost impossible to deploy a which gave it two points; “somewhat Microsoft-based solution without the important,” giving it one point; and database. “not important,” for no points. The maximum possible score in the rating average was three, and the minimum Windows Client (Rating average: 2.25) Just because the Windows was zero. About 550 partners 3client is the foundation of answered this question in the survey. Microsoft’s business doesn’t mean it’s In reverse order, here are the 10 necessarily the foundation of partners’ products that partners rated as the businesses—but it’s close. most important in the solutions they provide to customers. Microsoft Office (Rating average: 2.31) Even more important to 2partners’ bottom lines than System Center Configurationurattiion Windows Small Business ServerServer WindowsWi is Microsoft Offi ce, with its and Operations Managementgemment ((Ratingg average:g 1.54)) Not all customizationcus potential and integration 10 Tools (Rating average: 1.23)1.223) 8papartnersrtners sserviceervice ssmallmall businessbusinness possibilitiespos with various Microsoft Partners rated Microsoft’s integratedateed ccustomers,ustomers, but those who do ﬁ nd SmallSmall servers.ser and automated management solu-u- BusinessBusiness Server vital.vital. tions, which seem aimed primarilyy att in-house IT departments, above suchucch Windows Server (Rating average: other prpproductsoducts asas thethe DynamicsDynamics family,faammily, SharePointSharePoint Server (Rating(Rating 2.40) And the winner is ... Windows cloudcloud platform,platform, ForefrontForefront securitysecurityy and 1Server, the foundation of all the average: 1.59)159) SharePointSh P i t WindowsWindows PhonePhone products.products. 7has been the up-and-comingng bback-offiac ce deployment projects that MicrosoftMiMiccrosoft productprp oduct forfor yearsyey ars now andannd hhaveav been partners’ bread and butter for thethe collaborationcollaboration server is wewellll intintoo tthehe momore than a decade. Hyper-V/VirtualizationHyper-V/Virtualization (Rating(Raating MicrosoftMicrosoft billion-dollar productsproducts club.cllub. average: 1.45) 1 45) VirtualizationVirtualizationn 9products have been growingg inin Cloud may be a big part of the importance within the Microsoft portfo-porrtfo- future,fut but when partners rate VisualVisual StudioStudio anandd OtOtherher lio in recent years, as market demandand hashas Developer Tools (Rating avaverage:eereragaage:e what’swh important to their businesses pushed Microsoft toward the technologyhnoology 61.81) Customization is king forfor nonow,w it’s all about implementation- faster than its licensing-focused beanbeaan MiMicrosoftc partners, and nothing iss betterbeetter relrelateda products—especially SQL counters would probably prefer. fforor ccrafting a specialized Microsoftt SeServer,r Windows, Microsoft Offi ce sosolutionlu than the Visual Studio suite.ite.. andand Windows Server. • —S.B.

12 Redmond Channel Partner JUNE 2011 RCPmag.com Next Month: Microsoft WPC Coverage

{MSPs} Nor Rain, Wind, Thunder, Fire North Carolina partner spins customers’ servers back online by Monday morning after weekend tornado wrecks main facility.

Petronella Computer Consultants Inc. faced the ultimate break-fi x problem. Company President Craig Petronella got a call from one of his biggest managed services customers on the evening of Saturday, April 16, that a tornado had destroyed the customer’s offi ces. Severe storms ripped through North Carolina earlier that day, when what the National Weather Service called a “family of tornadoes” killed 22 people. Petronella and one of his three full-time techs worked late into the night on a plan for getting the customer, a military medical equipment supplier in Fayetteville, N.C., back online. Petronella and tech Mitch Greene left fi rst thing on Sunday morning to drive the 60 miles to the customer’s site from Raleigh, N.C., where Petronella Computer Consultants, a managed IT “When we fi red up the servers, we thought they were computer network support going to catch on fi re because there was a bunch of services company and a Registered Member of the black smoke.” Craig Petronella, President, Petronella Computer Consultants Inc. Microsoft Partner Network, has its headquarters and datacenter. thoughtthou they were going to catch on fi re because there was a Petronella and Greene arrived at 10 a.m. to meet thee oownerwwner bunchbunc of black smoke,” he said. and a few other employees of the military medical supplyplyy ThatTh would have been recoverable because his company had company at their wrecked offi ce in a strip mall. backupsback ready for all the machines, Petronella said. Fortunately, “The glass was all blown out the front, and the place wasas tthehe customer’sc servers had apparently only inhaled fi ne debris— pretty much deemed uninhabitable,” Petronella said. Inn a rrackack ththee teamt concluded the servers must have continued to run after next to a concrete wall, the company’s four servers were sparedsppared tthehe mainm damage occurred until the power went out. any damage from fl ying glass or other heavy debris. The groupgrroup PetronellaPe and Greene headed home after a 14-hour work- packed up the servers in a crate and pulled them out of thehe offioffi ce dayday ono Sunday. Fellow tech Justin Deff enbaugh continued the on a trailer attached to a military Segway PT, Petronella said.saaid. jjobob oof reconfi guring the servers from their former on-premises The next problem was getting the hardware to his car.r. “We“We role tto a new hosted environment on Sunday evening, and basically had to park in the back and go through a downedneed DwiDwightg Snow fi nished the work overnight. fence, downed powerlines and carry the equipment.” By Monday morning, the customer’s servers were online Back in the Raleigh datacenter, Petronella and Greenene aass if nnothing had happened, although the military supplier’s

PHOTOS COURTESY CRAIG PETRONELLA CRAIG COURTESY PHOTOS hooked up the servers. “When we ﬁ red up the servers, wee worworkersk were accessing the servers from their homes. • —S.B.

RCPmag.com JUNE 2011 Redmond Channel Partner 13 Project1 10/16/09 8:17 AM Page 1

Advertisement Beyond the Ink

Up until last year, Daniel Haurey’s Exigent Technologies had experienced 64.9 percent revenue growth. Now the company is using managed services so that it can build upon its success. By Jabulani Leff all

COMPANY Exigent Technologies, LLC k Daniel Haurey, President and CEO

SERVICES OFFERED Full-service information technology consulting, system implementation, help desk, electronic medical records and managed IT services. www.exigent.net

here are literally hundreds During that three-year period of thousands of small beginning in 2005, Haurey’s Exigent businesses in any given Technologies experienced 64.9 percent state, let alone the country. revenue growth; out of 658 IT com- So when the 2009 panies nationwide, he was counted “Inc. 5000” list from Inc. among the best. But he took the TMagazine came out and Daniel magazine fete and the business Haurey’s company was on it, he was success in stride and with humility. pleased because his company had “It’s all about devoted staff members grown, based on revenue growth from that are passionate about customer 2005 through 2008, at a rate that only service and continual improvement, 4,999 others had, according to the especially Gerry Busardo, our service list criteria. delivery manager,” Haurey said at the Project1 10/16/09 8:17 AM Page 2

“With Zenith we collectively thought that the combination of features and functionality, mixed with a reasonable pay-as-you-go model made for an excellent value.” —Daniel Haurey, President and CEO, Exigent Technologies

time, adding that his fi rm’s focus on Haurey says there’s a large demand “I personally spoke to several Zenith the recession-resistant health-care sec- for electronic medical records imple- partners that were already quite happy tor had been particularly benefi cial. mentation and in order to chase that with the platform, and these were But as quickly as he gained recogni- business, Exigent has and will continue people whose opinions I valued,” he tion, like any accolade or distinction, to streamline its own client services says. “I think the good references really Haurey hung up the magazine clipping process. made the diff erence. in a place where it could provide inspi- “We found that physician practices “What we have in Zenith is a power- ration and spent the remainder of 2009 are grossly underutilizing technology. ful platform that we can easily extend doing what he’d done before the hype. They’re essentially using the same to our customers without the hassles “It’s a 12-year-old company, so system they used 50 years ago, and burdens that come with some of we’ve been around” Haurey says. “I’d antiquated paper charts.”” he explains. the other competing products. been working in consulting at a “The big movement right now that “I think the future for IT services is corporation and I’d always wanted to we’re capitalizing on is the conversion a promising one,” Haurey adds. “In the start my own fi rm and always had an from paper to an electronic medical short term, we’re seeing the eff ects of entrepreneurial spirit about me. One record. confusion in the marketplace among day when one of my assignments was This is where managed services consumers. Confusion usually leads to ending, I decided rather than go to partners such as Zenith Infotech price and margin pressures. But I see a another one, I would form my own Ltd. come in. Haurey believes Zenith bright future for the managed services company.” gives his company “capabilities that model as a whole.” Back then Haurey wasn’t thinking our customers want at an aff ordable Haurey believes it’s clear that about verticals to specialize in or what price. In the local health-care market, Zenith will be one of the companies to managed services partnerships customers want services from a single help foster that growth. would do for his business; he was just source and that’s what we were able to “It’s increasingly clear to me that the consumed with scooping up all the do with Zenith.” leadership [at Zenith] has their fi nger clients he could. on the pulse of the partner community.” “There were many small and midsize What made Exigent companies that didn’t even have a LAN choose Zenith? at the time, so we became technology “We’re a ConnectWise partner, and Sponsored by generalists. With the expansion Zenith always had an excellent pres- of the Internet came a plethora of ence at the annual summits in Florida,” opportunity. There was really no need he remembers. “My technical staff to specialize.” looked at a few diff erent options very objectively. We collectively thought Leveraging Streamlined that the combination of features and Services Off erings functionality, mixed with a reasonable As time went on, Exigent began to pay-as-you-go model made for an specialize in health care, which is now a excellent value.” focus for the company, given it’s one of What clinched the deal is what VISIT ZENITHINFOTECH.COM TO GET STARTED! the more recession-resitant industries. Haurey likes to call the “social proof.” CR Coming soon: In-Depth Look at Office 365

{Roadmap}

Corp. and AMD Inc. were working on x86 SoC architectures for the new OS. Cherry also speculated about a 2013 release for an x64-based “Windows Server 2012” OS, which similarly hasn’t been named or announced by Microsoft. Windows client and server OSes have shared the same code base since the release of Windows Vista. Consequently, new releases of both client and server Windows OSes might be expected to appear at roughly the same time. The possibility that ARM-based Windows Server products might eventually emerge wasn’t discounted by Cherry. 2013 Likely However, he noted that nothing has been announced by Microsoft. Time Frame for Windows 8 New embedded OSes from Microsoft In a briefi ng, Michael Cherry of Directions on Microsoft says many signs point to may similarly be released in 2013. Possibly, “Windows Embedded Standard a release date two years out for the next version of Windows. By Kurt Mackie 8” for x86 hardware and “Windows According to one Directions on Microsoft “Windows Next” client OS, as announced Embedded Compact 8” for ARM will be analyst, Windows 8—or whatever at the International Consumer seen in that time frame, Cherry said. Also Microsoft calls its next OS—might be Electronics Show (CES) in January. The expected then will be “Windows Phone 8” released in 2013. company hasn’t used the “Windows for ARM-based devices. • As part of a briefi ng near the end of 8” term. At CES, Microsoft announced April, analyst Michael Cherry speculated a future Windows for ARM-based SoC on Microsoft’s future Windows roadmap. processors; it also announced that Intel Kurt Mackie is online news editor for 1105 ECG. He said that OEMs and ISVs already have early builds of Windows 8, and that the general public might get a fi rst {Corporate Rep} glimpse of the Windows 8 code as early as September, at the Microsoft Professional Developers Conference. Google Jumps to No. 1 Cherry’s talk focused on the fi rst Microsoft falls out of the Top 10. By Gladys Rama service pack for Windows 7 and Windows Google Inc. is the most reputable company in the United Server 2008 R2, which Microsoft States, according to a recent released in February. survey by market researcher Harris Interactive Inc. We may see Windows 8 for x86 and x64 For its most recent “Annual RQ Summary Report,” hardware—as well as system-on-chip Harris asked more than 30,000 (SoC) components—by 2013 or beyond, survey participants to list the 60 “most visible” U.S. companies, and then to rate the Cherry speculated. The SoC development reputation of each company according to 20 attributes that make up what Harris calls may enable low battery power consump- the reputation quotient (RQ). tion for Windows-based devices, such as Improving from its No. 3 ranking in 2010, Google topped the 2011 survey with an RQ what’s available with the new Apple iPads. of 84.05 (an RQ greater than 80 is considered “excellent”). Other technology companies Cherry didn’t claim to have inside informa- that placed in the top 10 were Apple Inc. (No. 5), Intel Corp. (No. 6) and Amazon.com Inc. tion on the 2013 date, so it’s unconfi rmed. (No. 8). Microsoft was ranked No. 7 in 2010, but fell to No. 16 in this year’s survey. • Cherry also noted that Microsoft

has only disclosed the existence of a Gladys Rama is the site editor for RCPmag.com. MICROSOFT/TECHED PHOTO:

16 Redmond Channel Partner JUNE 2011 RCPmag.com Subscribe to the RCPU e-mail newsletter

{BPOS} Microsoft Online Suite Gets FISMA Clearance

Security certification is a key stamp {SMBs} of approval for winning government contracts. Google Apps The Microsoft Business Productivity Online Suite (BPOS), a cloud-based No Longer suite of productivity applications, is now certifi ed for government use Free for Small under the Federal Information Security Management Act (FISMA). Businesses BPOS for the federal government, or Micro SMBs still don’t pay for the BPOS-Federal, received an “authorization service. Google says the change will to operate” (ATO) clearance from the U.S. allow for investments in the system. Department of Agriculture (USDA). Google Inc. is changing the terms of its free “The certifi cation and accreditation service for small businesses, requiring any has resulted in an offi cial ‘Authorization organization with more than 10 users to to Operate’ issued on April 19 by the U.S. subscribe to its paid Google Apps for Business. Department of Agriculture for Microsoft excluded from competitive-bidding The move took eff ect May 10 but Business Productivity Online Services- contract considerations when Microsoft excluded schools and nonprofi ts, Google Federal, which includes Exchange won a BPOS-Federal contract with that announced in a blog post. Only new users are Online, SharePoint Online and Offi ce government organization. impacted by the new rule; existing customers Communications Online,” Microsoft Microsoft has since returned (with up to 50 users) are grandfathered. announced in a blog post. fi re. Earlier this month, a Microsoft “This change will allow us to deliver Government IT systems must meet attorney asserted that Google Apps for on the expectations of our small business security certifi cation and accreditation Government lacks FISMA certifi cation. customers and invest in new features that standards specifi ed by the 2002 However, the U.S. General Services will help them succeed,” Google said. Among FISMA law. Administration (GSA), which issues those expectations are customer support, Software products aren’t certifi ed FISMA certifi cation and accreditation more storage and 99.9 percent Service Level as “FISMA-compliant” per se, but the approvals, weighed in, stating that Google Agreements. systems running them do have to meet Apps Premier was “FISMA compliant in Google Apps for Business is the FISMA standards. July of 2010” and that Google Apps for company’s Web-based productivity, Microsoft had received authorization Government uses the same controls. The collaboration and messaging service. for its datacenters in November based GSA currently is just assessing some The company also announced a new on FISMA requirements. However, it had added security controls in the Google monthly pricing option for customers. Those lacked such authorization for its hosted Apps for Government suite. who sign up for the annual $50 plan can pay in applications that ran in those datacenters. Microsoft will update its BPOS line of monthly installments. Also, those that don’t Now, with the added authorization, hosted applications with a new off ering want to commit to an annual contract can opt the way is cleared for BPOS-Federal called “Offi ce 365,” which is currently for a new $5 per month plan. applications to be rolled out to 120,000 available for testing as a beta release. The move came just one week after USDA employees. Microsoft expects to roll out Offi ce 365 Microsoft released its Offi ce 365 beta. The Still, a legal dispute could dog services commercially this summer. small business version of Offi ce 365, known Microsoft along the way—at least in After that commercial release, Microsoft as Plan P1, will cost $6 a month. • —J.S. terms of obtaining some government plans “to pursue FISMA certifi cation and contracts. A lawsuit fi led by Google Inc. accreditation for Offi ce 365,” according to in October against the U.S. Department the company’s blog post. • of Interior alleges that Google was —K.M.

RCPmag.com JUNE 2011 Redmond Channel Partner 17 RCP COVER STORY | 2011 RCP ANNUAL SALARY SURVEY PARTNER SALARIES PLATEAU (and That’s OK)

18 Redmond Channel Partner JUNE 2011 RCPmag.com 2011 RCP SALARY SURVEY

$93,793 RCP’s 5th annual Salary Survey ﬁ nds partner AVERAGE SALARY OF RCP salaries in 2011 are holding steady. That’s a big READERS WHO SELL DYNAMICS SOLUTIONS OR SERVICES improvement after the drop last year, and many partners see reasons for optimism about their personal fortunes as they look into their pipelines for the remainder of 2011. By Michael Domingo

2010

MEDIAN $81,000 OVERALL SALARY 2011 $89,000

2010 AVERAGE $92,572 ANNUAL BASE SALARY 2011 $92,222 42% OF RESPONDENTS EXPECT TO RECEIVE A 1 PERCENT TO 3 PERCENT RAISE IN THE NEXT 12 MONTHS SURVEY CONTINUES, NEXT PAGE >>>

RCPmag.comRCPmag.cocom JUNJUNEE2E 22011011 RedRedmondmondCd CChannelhannel PaPartnerrtner 19 RCP COVER STORY | 2011 RCP ANNUAL SALARY SURVEY

threeree thinthingsgs about the last 12 months:

The Microsoft partner 1 program has gone through a name change and revamp First, of the program. Microsoft has been pushing 2 its technology higher into For Microsoft, 2010 has been a mixed bag of successes andnd not-nnot- the cloud and pushing quite-successes, so there’s no telling how the next 12 monthshs will new partner opportunities turn out. The same could be said of the compensation of Microsoftcroosoft up there. partners and the people who work for those companies. Salariesalaaries overall, in fact, were fl at this year, with highlights balanceded out 3 Microsoft had record by a few low spots. Windows 7 sales. For starters, average base salary of all RCP respondentsents is $92,222 (see p. 19), which is $350 shy of the 2010 results—less than the 12-month data plan you were billed for that first- generation iPad. Rounded to the nearest percent, the average He’s now making more as a senior consultant at a large Gold base salary change was zero. In other words, good news is nothing. Certifi ed Partner software consulting company in Omaha, Neb. If we look back to the 5 percent drop from 2009 to 2010, we could make the argument that a fl at result for 2011 is one of WHAT HAPPENED TO RAISES, BONUSES? the highlights. Keeping and retaining talent with incentives seemed to be An even brighter spot is that the salary median has gone up by the mantra last year, and we often saw incentives expressed $8,000 (see p. 19), or nearly 10 percent better than the $81,000 in raise or bonus fi gures. But because last year companies median from a year ago. found revenue was still a challenge, and with most companies Compensation depends mainly on the health of the companies basing raises and bonuses in large part on company perfor- that provide the jobs. But poor jobs data and a slow-motion mance (for that data, see p. 24), there wasn’t much by way economy the last 12 months pretty much guarantees Microsoft of raises to dole out. In fact, 37 percent of respondents partners will approach reviews with a bit of caution or come in reported no raise and another 4 percent actually had their low with new hires to keep the corporate pulse beating. pay cut (see p. 22). “Most companies are hurting, [and] any employees laid off On the bright side, fewer respondents this year believe that in the past and then replaced with a new hire were replaced at their companies won’t incentivize through raises or cut pay in a lower salary this year,” said Richard S., president of a health the next 12 months. That’s a good sign that morale in the work software consultancy. place is looking up, and many companies are starting to make “We’ve carried a tight budget, but looks like this year’s success some revenue headway. will bring us to a positive gain,” said Bohdan P., who presides And even brighter: Of the respondents who said they got raises, over a Gold Certifi ed Partner software fi rm in Illinois. But even 42 percent expect a 1 percent to 3 percent raise bump in the next then, he acknowledged that, “we still have to build a reserve for year. Nearly all raise ranges are predicted to be higher, except for future uncertainties.” those who received raises in the range of 16 percent or more. (Of Farther down the career ladder, people like Dustin H. saw course, we won’t know how that optimism pans out until next the writing on the wall. “The recession caused a significant year’s survey, so stay tuned.) downturn in the amount of overall development work at my The generally fl at attitude companies had on raises has been previous employer and had a defi nite aff ect on the ability of the perhaps even more defl ated when it came to bonuses. Companies company to increase compensation and provide benefi ts.” It’s for the most part were stingy toward them, with an average what spurred him to action—more accurately, to change jobs. reward of $5,941. That’s a precipitious 37 percent drop from

20 Redmond Channel Partner JUNE 2011 RCPmag.com 2011 RCP SALARY SURVEY DOWNLOAD THE 2011 RCP SALARY SURVEY AT RCPMAG.COM/SS2011

AVERAGE OF BONUSES LIKELY TO BE AVERAGE HOURLY RATE $62,000 RECEIVEDVED IINN THTHEE NENEXTXT 1122 MOMMONTHS CHARGED FOR SERVICES 1 Year $112,153 2010 2010 25-30 years $9,479 $110

AVERAGE SALARY 2011 2011 BY YEARS IN IT $5,941 $124

AVERAGE SALARY LEVEL IN THE MICROSOFT PARTNER NETWORK (MPN)

Partners with Microsft, but not part of MPN $94,005 Purchased an MPN Subscription $88,716 “A big factor in where Joined the MPN $93,899 salaries will go ... is Small Business Specialist $94,374 whether or not Mid-Market Silver $107,875 employees will be able Mid-Market Gold $85,508 to embrace and Silver Competency $86,985$, quickly get up to speed Gold Competency $97,297$9$ on new technologies. Those who are able to keep up with the fast AVERAGE SALARY BBYY TYPE OOFF OORGANIZATIONRGANIZZAATION AVERAGE AGEAGAGE OFO pace of change will 20102010 201120011 RESPONDENTSRESPONDENTS have a good shot at Hosting Services ProviderPrrovider $88,738$888,738 $9$$96,02596,6 025 being on the 2010 Large Account ReReselleresseller $$115,733115,733 $7$77,98777,987 increase end.” Systems Integrator $96,605 $103,1201003,120 Dustin H., Omaha, Nebraska Independent Software Vendor $102,255 $103,5201003,520 46 Consultant $100,313 $93,83593,835 Distributor $78,480 $69,28769,287 20112011 VAR $88,389 $83,17483,174 Other $85,899 $84,40784,407 46.5 Reseller $72,066 $66,18266,182 SURVEY CONTINUES, NEXT PAGE >>>

RCPmag.com JUNE 2011 Redmond Channel Partner 21 RCP COVER STORY | 2011 RCP ANNUAL SALARY SSURVEYURVRVEY

AVERAGE SALARY BYY ROROLELE HOW MUCH RAISE IN BASE 2010010 2011 SALARY HAVE YOU RECEIVED IN LAST 12 MONTHS? (PERCENTAGE) Business owner $114,063 $106,507 37% 37% Co-owner or part owner $97,647 $96,559 Work full time for partner company $88,816 $91,506 Work part time for partner company $88,415 $103,116 13% Other $86,354 $83,827 4% 3% 3% .7% 2% AVERAGE SALARY BYY JJOJOBB TITITLETLE 1-3 4-6 7-9 10-12 13-15 16+ 0 Decrease

2010010 2011 Vice President $116,585 $122,480 HOW MUCH RAISE IN BASE SALARY CEO and/or Chairman DO YOU EXPECT TO RECEIVE IN THE $129,880 $114,639 NEXT 12 MONTHS? (PERCENTAGE) Other C-level executive $119,057 $116,125 42% Co-owner or part owner $101,046 $85,517 27% Manager $86,969 $96,149 Business owner $85,924 $97,973 18% Engineering (non-managerial) $84,872 $88,538 5% Sales, Marketing $76,382 $70,442 4% .8% 2% 2% Other $73,553 $78,806 1-3 4-6 7-9 10-12 13-15 16+ 0 Decrease

last year (see p. 21). Many companies saw revenue in 2010 to be interesting here is that year over year, business owners earned less, a big challenge, and company performance was a major factor in while those who work part time for a partner company made major bonus compensation. strides in earnings. Overall, respondents seem to maintain a positive attitude about We break down salaries by job title as well, with vice presi- compensation, with 56 percent eyeing increased compensation in dents getting the largest salaries ($122,480) this year, followed the next 12 months. by Other C-level executives ($119,057) and then CEOs and/or Chairmen ($114,639). On the low end is sales and marketing, who MANY SLICES OF THE SALARY PIE earned $70,442. As we do every year, we also like to see how salaries break out based on several factors. For one factor, we like to see how A PARTNER COMPETENCY’S WORTH salaries look based on type of organization (see p. 21). This This year, we’ve got some data on those who’ve achieved a level year top earners were those working for consulting firms, at of competency within the new Microsoft Partner Network and $103,520, followed closely by a mere $400 by independent the results are interesting. Those with the Silver Midmarket software vendors. Hosting services providers came in slightly Solution Provider Competency earned more than six figures below the six-ﬁ gure threshold, at $96,025. ($107,875), followed by any Gold Competency ($97,297) and Hosting providers made the biggest gains based on percentages, Small Business Specialist ($94,374), which edged out by a few at little more than 8 percent year over year, followed by systems hundred bucks the category of “Partners with Microsoft, but not integrators (6 percent) and then ISVs (1 percent). All other categories part of the MPN.” saw a percentage drop from a year ago. But take these numbers for what they’re worth: Those with the When we look at salaries based on one’s role in an organization, Gold Midmarket Solution Provider Competency earned the least, business owners got the biggest slice, at $106,507, followed by those at $85,508. (We just report it as we see it, and some things can’t who work part time for a partner company, at $103,116. What’s be explained.)

SURVEY CONTINUES, PAGE 24 >>> 22 Redmond Channel Partner JUNE 2011 RCPmag.com TRUSTED GUIDANCE. COMPETITIVE ADVANTAGE.

Brian Jacobsen General Manager, Slalom Consulting Member since 2005 Competencies include: Gold Business Intelligence

It’s a true story of mutual success for both partner and customer. Partners that earn gold and silver competencies demonstrate high levels of capability and commitment within targeted solution areas. By looking for partners with competencies, FXVWRPHUVFDQPRUHHDVLO\ÀQGWKHSDUWQHU WKDWÀWVWKHLUEXVLQHVVQHHGDQGNQRZWKH\·UH investing in proven expertise. The Microsoft Partner Network brings together the right people and the right solutions.

Winning Together. Working within the Microsoft Partner Network is a smart investment.

Learn why competencies matter at microsoft.com/mpnadvantage RCP COVER STORY | 2011 RCP ANNUAL SALARY SURVEY

HOW DO YOU BELIEVE YOUR HOW ARE BONUSES CALCULATED? HOW DO YOU BELIEVE YOUR SALARY/GROSS EARNINGS SALARY WILL CHANGE IN COMPARECOMPARE WITH OOTHERSTHERS INI THTHEE NENEXTXXT 1122 MOMONTHS?NTHSS? YOURYOUR FIELD?FIELDD? Based on Higher Stay the company’s same Same Other proﬁ tability 12% 21% 27% 36% 40% 56% Will increase 52% 41% 11% Lower Combination Based on personalpep rsonal oror salessas les performanceperformance 4% WillWill decreasedecrease

Check out the PDF version of this article for salaries within the ololderlder Microsoft Certifi ed Partner program, as well as other compensationattionn data that we couldn’t fi t in the print edition of this report (you cancann download it from RCPmag.com/SS2011). “I have actually found more SALARY DYNAMICS Since we’re a publication aimed at partners, it only makes senseennse opportunities as for us to break out salaries based on the types of Microsoft solu-oolu- companies rely again tions they specialized in. Salaries for those whose companiesnies sold Dynamics products was $93,739, for an improvementmeentt on obtaining the of 9 percent over last year. Actually, it’s the only category thatthhatt services of senior improved. Salaries for those working for companies sellinglingg infrastructure solutions/services went down a bit over 1 percent,ceent, developers to solve to $91,684. Salaries for companies who sold both was $91,110,110, current issues. or lower by 5 percent. (You’ll fi nd the supporting chart for thosehose breakdowns only in the PDF version.) Companies might not Speaking of the PDF version, it’s there that you’ll fi nd gobs moremmore be able to hire stars, data: salaries by regional break downs (states, major metro areas);eaas); salaries based on size of company; salaries based on employee tenure;nuure; but still see their value and how readers rank their satisfaction with their salaries, otherthherr to projects.” compensation provided by their companies and fringe benefi ts,s, to name a few. D. L., Atlanta

YOUR THOUGHTS ON 2011 PARTNER SALARIES We hope this information offers some perspective on youryoour IT career or helps you with future salary negotiations. Letet us know what you think of the results, and if you have an ideaa forfoor improvements or additions to this survey next year, write too me MethodologyMethodology at [email protected]. • A link to this year’s survey was e-mailed to print issue and online newsletter subscribers for which we had e-mail addresses. Within a two-week period in April, we obtained Michael Domingo is the executive editor of new media for the 1105 1,067 responses, which was whittled down to 671 responses Enterprise Computing Group. after we culled bad responses or responses with missing data.

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As Microsoft’s sustained eff orts in uniﬁ ed communications are starting to draw customers’ attention, partners are ﬁ nding ways to use Lync and related UC technologies to transform the way those customers REACH communicate. By Doug Barney OUT AND

TOUCSOMEONEH

The Microsoft unified communications (UC) platform can radically transform how enterprises work. Partners who put their muscle behind UC are off ering customers integrated presence, whiteboards, video conferencing and chat. UC can also reduce client telecommunications costs with cheaper end-user devices packed with more power and the potential to displace expensive proprietary private branch exchanges (PBXs). UC can transform the economic and communication fundamentals of today’s enterprises, but it’s taking a bit of work and smart, dedicated partners to get there.

THE BIG PICTURE UC entails a complex array of features, and can be done on a big or small basis. Currently, the ultimate Microsoft vision brings together a bevy of software tools and off ers an abundance of new features. Here’s the scenario: A customer ponies up for Offi ce 2010 with Outlook 2010, SharePoint 2010, Exchange Server, SQL Server and Offi ce Communications Server (OCS)—or the most recent version of OCS, Lync Server. IT pros and their partners can make all of this work together. UC seems complex at ﬁ rst, but with a little work, the picture becomes clearer. Ian Guyer, principle of Cetiﬁ ed Partner Guyer Consulting, spent two years researching, testing and, later, planning and installing Microsoft UC software. Now he totally gets it. “Initially it’s diffi cult to work with,” Guyer says. “The off erings and deployment were confusing. If you’ve never seen the product, you only know what it does and how it does

26 Redmond Channel Partner JUNE 2011 RCPmag.com RCPmag.com JUNE 2011 Redmond Channel Partner 27 RCP FEATURE | UNIFIED COMMUNICATIONS

Another thing to watch for is customers that already have a Microsoft Enterprise Client Access License (ECAL). “When we walk into an environment where the customer already owns the ECAL, 90 percent of the licensing is already purchased,” Tosado says. “I’m in a compete situation right now with Avaya, with a company that has ECALs. Avaya’s proposal all-in is about $1.4 million, ours is $800,000. The reason we’re able to be so drastic is that the customer has already purchased the ECAL suite,” he says. Tosado says a third factor driving enterprises to Lync right now is an increase in corporate mandates for teleconferencing to cut down on travel. “Depending on the customer, that can be anywhere from a couple of thousand to tens of thousands in savings,” he says.

SMALL CUSTOMERS NEED NOT APPLY? Microsoft aimed Lync at customers of a certain size and didn’t intend it for small organizations. “You need multiple servers, you need licensing, telephones,” Tosado says. “For right now, I think that Lync is going to be more widely adopted in companies that are larger than 150 or 200 computers. Eventually, I think that there are going to be more and more cloud off erings that include Lync that are going to be more and more acces- sible to small businesses.” “When we walk into an environment That said, some partners are making OCS and Lync work at smaller where the customer already owns organizations. When Guyer started looking into OCS, he heard directly from the Microsoft engineering team that it wasn’t intended for small the ECAL, 90 percent of the licensing organizations. “They said the product was not really thought of as a is already purchased.” product to use in the Windows Small Business Server [SBS] environment and they tried to discourage me,” Guyer says. He pressed on. Ben Tosado, Vice President of Professional Services, Conquest Technology Services “I can install a 15-user SBS 2008 R2 Premium with Lync Server 2010 for about $50,000. A 30-user system costs about $60,000,” he says

it by what you read. As always, Microsoft created its own language PICKING FROM THE UC MENU for the product, making it more diffi cult to understand. If you don’t Some users nibble a small portion of the full UC meal, while install it and overcome all the problems, you’ll probably never really others munch on the whole buff et. Alec Spyrou, an enterprise IT understand what it is, what it does or how it does it,” he says. architect in Australia, chose a full, hearty UC meal. His company That complexity, of course, is exactly what the channel thrives uses Exchange for general messaging such as e-mail, fax, voice- on—both in showing potential customers how the products can mail, SMS and RSS. transform their businesses and in putting all the pieces together after The company uses OCS 2007 R2 for “real-time messaging, including the sale to make the transformation happen. IM and presence; Web conferencing; desktop sharing; click-to-call [remote control of desktop handset]; and federation with B2B [busi- GETTING A FOOT IN THE DOOR ness to business] for IM and presence,” Spyrou explains. Spyrou’s The word of mouth around Microsoft UC products is improving, company is now looking at video conferencing and is interested in but partners are fi nding a few business scenarios provide the best telepresence systems that cover the desktop as well as meeting rooms, openings for getting a customer into a Lync system. and is also exploring OCS soft phones. “One is a really aging telephone system,” says Ben Tosado, vice president of professional services at Conquest Technology Services. STARTING SMALL “Lync can provide a bunch of new functionality at a pretty low cost.” Most clients start small, and then embrace higher-level functions. Joe Schurman, founder of Gold Certified Parnter Evangelyze “Microsoft Exchange Server is typically already deployed and in use, Communications, a UC ISV and consultancy, says the state of an so really the main tool fi rst adopted is enterprise instant messaging,” existing telephony contract is crucial. “Based on what I have seen, Schurman says. “Moving to Microsoft Lync for enterprise voice, as unless the project is co-funded, a customer will wait until the contract with any other new enterprise voice solution, requires a company to terms are up for renewal with their existing telephony provider before either rip and replace or start with an augmented solution and then even considering a switch,” he says. “If a customer decides to deploy, migrate over time.” the time frame can be as short as six months and as long as one year Guyer led his customers along that path. Once IM was running, for most enterprise organizations.” Guyer embraced desktop and fi le sharing. One of Guyer’s clients

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USER RESPONSE All this technology sounds pretty cool, but if end users don’t understand or appreciate it, all is for naught. Spyrou, who has been through it all, advises UC newcomers in IT to sell end users on the fact that they’ll have central control over a broad array of previously discrete communication tools. Those that have taken the UC plunge have no regrets. “You couldn’t tear UC out of their cold, dead hands. With the integration of Exchange UM, SharePoint for internal information gathering and Lync tying it all together, they’ve not only accepted the technology, they wouldn’t be able to do what they do without it,” observes Guyer. The only thing his users miss is that the Microsoft UC solution doesn’t record calls easily, “but this is available through third parties,” Guyer says. He’s also heard that “reporting is diffi cult—but again, it’s available from third parties.”

COMMUNICATIONS COMPETITORS Microsoft isn’t the only car blasting down the UC speedway. Legacy telecommunications, hardware and networking companies such as IBM Corp. and Cisco Systems Inc. are on the track as well. Cisco is one competitor Spyrou looked at, but he went with “Microsoft Exchange Server is Microsoft instead. “We see most of UC as a software solution, and typically already deployed and most of the Cisco solutions in this space are made up of acquisi- tions, which at the time had yet to be consolidated into a coherent in use so really the main tool fi rst strategy, or have a heavy hardware approach that we didn’t fi nd adopted is enterprise instant appropriate,” he says. Guyer thinks Microsoft got UC right. In his view, Lync Server 2010 messaging.” is the core of the strategy, and most key Microsoft applications tie Joe Schurman, Founder, Evangelyze Communication directly in. This, Guyer believes, is an advantage over companies like Cisco. “The seamless interface to Outlook—and SharePoint in has already moved onto the higher-level PBX replacement. “When particular—puts Microsoft miles ahead of all other UC providers. they were looking for a new VoIP [Voice over IP] phone system, I told The not-so-seamless but extraordinarily powerful integration to them that the IM system was now advertised as a PBX solution. In Exchange is icing on the cake. Incorporating UC into Active Directory the process of implementing the OCS solution, the old 3Com VoIP is also a plus that’s not available to any other UC vendors I’m aware died. They said bring it up, and do it now,” he says. of,” says Guyer. “The strategy is clear: Build UC into every product This all happened last summer, and the UC platform has been that makes sense, and make it as simple and consistent as possible humming along ever since. In fact, it received a top endorsement for the end user. Microsoft may own the telephony marketplace recently when Guyer’s client’s board of directors used OCS to host a down the road.” board meeting, allowing remote directors to tie in. “It worked so well, they want to have all but the annual meetings UC ECONOMICS 101 done with UC from now on,” says Guyer. “This alone will save the Moving to UC clearly costs money. There are software licenses, company thousands of dollars per year in travel and expenses. And hardware, networks and admins to support it all. But if done they can record it, so meeting minutes will never be the same again.” right, productivity can vastly improve and ultimately telco costs can plummet as you move to more and more IP telephony and soft APP INTEGRATION phones, and maybe get rid of that PBX at last. One aspect that makes UC so confusing is the fact that you can For Registered Member Aspect Software Inc., the ROI is terrifi c. choose from the core menu that includes IM, presence, Web “Aspect expected to save 80 percent on conferencing—about $1 million— and video conferencing, and voice. But one can also tie in core and ended up saving 99 percent instead. Hundreds of thousands of Microsoft apps such as Offi ce (and Outlook in particular), SQL dollars are saved annually through trunk consolidation, maintenance Server and SharePoint. and support as well,” says Steven Daugherty, lead UC solutions architect At fi rst blush, this application integration seems daunting—but it for Aspect. “Our customers have enjoyed similar results, especially when turns out that’s only rarely the case. they already own Lync licenses. This is particularly true of Lync, which “All Microsoft products integrate into UC. For SharePoint and has a much lower server count requirement.” Offi ce—most importantly Outlook—integration is automatic and Spyrou notes that further savings can be found in less obvious seamless. There’s not much to do. It just happens,” Guyer says. places. “Deploying voicemail on Exchange removes the need for

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MICROSOFT LYNC PARTNERSRS an ongoing investment in a dedicated voicemail system from BULLISH ON SKYPE DEAL ourou telco. Why have one system running e-mail and the other runningru voicemail? On top of this, the voicemail in Exchange While most of the analysis of the Microsoft $8.5 billion acquisitionuisition enablesen data-management capabilities such as e-discovery,” he of Skype has focused on the consumer aspects of the deal, partnerspartners says.say “UC will change organizations the way the PC changed are responding enthusiastically and are seeing some opportunitiestunities themth 30 years ago.” for Skype alongside Microsoft Lync. One of Spyrou’s clients examined the economics after UC was Skype runs a global videoconferencing and voice communicationnication installedins last summer: “From increased productivity—less people network with 170 million subscribers. Entry-level service is freefree and abable to do more work with less over time—and decreases in operating paid services allow multipoint conferences and communicationstions costsco due to less long distance and no travel meetings, they calculated with non-Skype users. itit iimproved the bottom line by $183,000.” When announcing the deal in mid-May, Microsoft CEO Steveeve Ballmer mentioned the company’s Lync platform several times:mes: CHARTINGCH THE UC FUTURE “We want to extend the reach of Skype by connectingng IP telephony has been around for years, with mixed results. Skype users with users of our Outlook products, ourr LyncLync VoiceVo quality in particular held it back—it just didn’t sound enterprise unifi ed communications product, Xbox LLive,ive, riright.g UC is also an old concept. More than a decade ago, and other opportunities like Messenger and Hotmail,”ail,” companiesco such as Novell pitched a single client for e-mail and Ballmer said. voicevo messaging. Now, years later, UC is halfway here. It works “I’m thrilled. I think that this is a great move by Microsoft,”t,” wewell for the pioneers, but is still waiting to gain mass appeal. says Benjamin Tosado, vice president of professional serviceses at Now these pioneers are plotting their next moves. For Spyrou, Conquest Technology Services, which has a fast-growing Lyncnc pprac-rac- itit mmeans merging UC more fully into his company’s business apps. tice. “It further extends their capabilities in the communicationstions OnOne item: making it so that a Web visitor gets a click-to-call request arena and will help them put together a communications solutionolution anand a company consultant can tap into the CRM software to fi nd that can seamlessly and securely connect people and organizationszations thethe closest employee that can respond. all over the globe using software and the Internet.” Doug Kinzinger, a senior network engineer with Certifi ed Partner Tosado sees a lot of common elements between Skype andnd Lync.Lync. MCSMC Offi ce Technologies, plans more “phone integration, even- “They’re both IP-based voice, video and IM platforms. They’rey’re bbothoth tualtua PBX virtual machine replacement—likely through Exchange engineered to work over unmanaged networks,” he notes. UM—andUM presence. I doubt we’d ever do public federation between To him, the diff erence is the target audience, with Lync oforr nenetworks regarding IM, but I know some will,” he says. organizations and Skype for consumers. “I could see Skype federat-federat- ing with Lync and off ering seamless IP-based communicationsons LYNCLY LESSONS across organizations and consumers alike,” Tosado says. OCSOC 2007 planted a major Microsoft UC fl ag. The latest and Ryan Risley, chief technology offi cer for Brittenford Systemsems ggreatest,re Lync Server 2010, shipped last November and replants Inc., sees an opportunity with Skype for partners to have thatth same fl ag in tons of cement. something to recommend in place of Microsoft Response Point,oint, tthehe Lync is a bold enough advance that Redmond saw fi t to rename small to midsize business-focused phone system that Microsoftosoft OCOCS to Lync—defi nitely catchier. So what do partners see as major discontinued. LyLync advances? For Spyrou, Lync integrates far better with his “I still see Skype primarily as a consumer-based collaborationation cocore telephony systems. And “the ability to provide granular and system. Skype has a number of business options for call routing,uting, popowerful network control for audio and video is a big plus. This which could appeal to smaller businesses—as it already does,”s,” wiwill help get people responsible for the management and health Risley says. ooff the network onboard, as it answers many of their requirements,” Ian Guyer, a principal with Guyer Consulting, says the Skypeype he believes. purchase may also help overcome customer objections to Lync:ync: Guyer sees Lync as one step closer to off ering full PBX functionality. “This will make Lync more mainstream, or in other words ‘anan easiereasier “It’“It’ss closing the core-capabilities gap with the traditional PBX world, choice’ for the buyer.” susuch as E911, branch survivability and the ‘basic dozen’ phone Adds Tosado, “This will defi nitely help us with objectionss aboutabout ffeatures. Asea a UC platform, Microsoft is the only truly unifi ed approach integration with organizations and users that don’t run Lyncc andand fforor both the user side and management and provisioning,” Guyer says. platforms that Lync doesn’t support.” UC has a great potential payoff , and if you drive the process Risley is concerned that the price of Skype based on its profitsts mmayay youyo may just become an IT hero. But it may take more than a fair cause Microsoft some problems, but says that may be outweighedhed by bitbit of learning. • the Skype brand value. “The consumer value of the loyal followingwing of Skype users could be a boost for the mobile and Windows Liveve platforms and help compete with Google Talk,” Risley says. “[Skype’s]Skype’s] DougDo Barney is editor in chief of Redmond. Scott Bekker contributed kind of global reach is hard to put a price on.” —S.B.S to this report.

32 Redmond Channel Partner JUNE 2011 RCPmag.com RCP FEATURE | DYNAMICS CRM 2011 Microsoft Dynamics CRM 2011

Putting the latest version of the Microsoft CRM tool through its paces, we found many worthwhile improvements among the 500 or so new features that give Microsoft partners an even more solid competitor to Salesforce.com and Oracle. By Paul Schnackenburg

There’s no doubt that a customer relationship management (CRM) system can make a company more efficient at retaining existing customers and gaining new business. It’s also a fact that many CRM implementations fail to meet their goals because of poor user adoption. A good CRM system must be customized to the way the business and people work, and must not try to force people to adjust to the system. The CRM battle has heated up with the release of the latest Microsoft off ering in January—a cloud solution in the form of Microsoft Dynamics CRM Online—which was followed in February by the on-premises solution. One major competitor to Microsoft is Salesforce.com Inc. Microsoft is playing heavily on the fact that Dynamics CRM 2011 Online can be accessed in the cloud, either from Microsoft or from third-party hosting partners, as well as be installed on-premises, whereas Salesforce.com is online-only. Dynamics CRM Online is priced at $34 per seat per month (for the ﬁ rst year), which also adds to the appeal because it’s a lot less than Salesforce.com’s $125 per month Enterprise service.

RCPmag.com JUNE 2011 Redmond Channel Partner 33 RCP FEATURE | DYNAMICS CRM 2011

CUUSTOMMEER-CENNTTRRIC SEERRVIICEE A few years ago, CRM was regarded by many businesses as “nice to have,” but now it’s a necessity. Smart businesses are making sure that more staff have access beyond just the marketing and sales departments. Having one central repository for all staff with all of the information about your company’s inter- action with everyone else is a powerful productivity booster. CRM used to be about sales, marketing and customer service, but the scope has widened considerably over the last few years. Now it’s about xRM: relationships with more than just customers, such as contractors, suppliers, resellers and others. The recovering economy also makes excellent customer service important. Furthermore, consumers are more discerning and have unparalleled access to vendor information, as well as social networks to give them instant feedback on particular brands or products. Figure 1. New tabs at the top, along with left-hand categories, make for less clicking overall. INNSTALLLAATIOON If you opt to run Dynamics CRM 2011 on-premises, it runs only on Windows Server 2008/2008 R2 x64 (Standard, Enterprise and Datacenter, as well as Small Business Server 2008), and requires SQL Server 2008 x64 SP1 (Standard, Enterprise and Datacenter) as the storage back-end. Dynamics CRM can run in a virtual server on Hyper-V or any other hypervisor on the Microsoft Windows Server Virtualization Validation Program (SVVP). A quad-core, 2GHz-plus CPU is recommended, as is 8GB of RAM; minimum requirements are 2GB of memory and an x64 1.5GHz or faster CPU. There are two on-premises flavors: Figure 2. Easily customize your own view into CRM with quick Dynamics CRM 2011 Server, which has no access to the data that matters most to you. user limits, allows multiple organizations and lets you spread the server roles across several machines; and Dynamics CRM Workgroup Server 2011, which can only be installed on one server with a single organization and is capped at ﬁ ve users. A FRRESH OUTLOOOK Dynamics CRM 2011 is available in 41 While Dynamics CRM 4.0 has an Outlook-integrated client, Dynamics CRM languages, and global organizations can show 2011 takes this to the next level with a single installer for both the online and the UI in the local language while still having a on-premises client, as well as supporting both 32-bit and 64-bit versions of single, central database. The Web client that’s Offi ce. The client is updated through Microsoft Update and can connect to used for both cloud and on-premises requires multiple Dynamics CRM organizations; the most noticeable improvement either Internet Explorer 7, 8 or 9, running on is the polished integration with Outlook. Many users might not even realize Windows XP or later. they’re not using Outlook but are in fact interacting with Dynamics CRM, as

34 Redmond Channel Partner JUNE 2011 RCPmag.com Online to provide tracking and routing of e-mails for users who use the Web client. New in the 2011 version is that the e-mail router supports Exchange 2010 and Exchange Online and also works with Autodiscover to let Outlook automatically ﬁ nd the right settings and conﬁ gure itself.

USSING DYNAAMICCSS CRMM 20011 For users of Dynamics CRM 4.0, the most noticeable difference will be the new Offi ce ribbon-inspired UI in both Outlook and the Web client that’s contextual and adapts to the task at hand. Figure 3. Quickly see which areas in CRM you’ve been to, and pin records Quality of data is crucial in a CRM system, for easy access. and a frequent problem when staff are adding information is the creation of duplicate records. When you enable it, Dynamics CRM 2011 can automatically detect duplicates when importing from a fi le, when creating a new contact or when Outlook goes online after having been offline. Filtering views will be familiar to users of the equivalent feature in Excel. Another example of Offi ce integration is the ability to export lists to Excel, make changes and then easily import the data again. Dynamics CRM 4.0 only allowed export to Excel. Inline data visualizations make it easy to understand data and trends, whereas user- confi gured conditional formatting lets you highlight important information. Dashboards have been improved, and it’s now easy for a user to set up their own view of all the important information they need (Figure 2, Figure 4. Use one of the included security roles, or customize to create opposite page). Dashboards are also dynamic, your own roles. so you can click through charts to drill down to the underlying data. Goal management has been improved and can now be set on any characteristic, not just sales volume for salespeople, but cases closed for customer service personnel, for instance. At the heart of any xRM system is the it behaves just like Outlook. An extra tab shows up in the ribbon, and there concept of managing relationships. Dynamics are a few Dynamics CRM-specifi c buttons as well as a new section for your CRM 2011 improves this considerably by company (Figure 1, opposite page). introducing a new section devoted to connec- Contacts are easily imported and kept in sync. The new tracking pane makes tions, where users can defi ne relationships it easy to keep tabs on e-mails and appointments with particular customers. The between contacts and accounts easier than client also off ers the ability to control which e-mails, appointments and tasks are in earlier versions of CRM. Competitors can pushed to Outlook through new personal fi lters. Outlook in Microsoft Offi ce 2003 also be tracked, including entering a Strengths, SP3, Offi ce 2007 SP2 and Offi ce 2010 is supported for Dynamics CRM 2011 on Weaknesses, Opportunities and Threats Windows XP or later. (SWOT) analysis of them. If all users are using Outlook as their client for Dynamics CRM, there’s no need Other little details that will make a diff er- for the optional e-mail router. The Dynamics CRM 2011 e-mail router helps with ence to end users’ productivity are record both online and on-premises scenarios and interfaces with Exchange or Exchange pinning (which saves particular accounts

RCPmag.com JUNE 2011 Redmond Channel Partner 35 RCP FEATURE | DYNAMICS CRM 2011

as favorites) and an overall reduction in clicks required to navigate the UI. There’s also a list of most recently used areas that makes it easy to go back to an account you’ve just worked on (Figure 3, p. 35). Recurring appointments is a new feature and will work well for service organizations that provide scheduled services. Multiple products and services can be bundled together and sold as product kits, with corresponding discounts.

FOOLLOWW THEE CUUSSTOOM Even the simplest CRM implementation requires some customization, and fortunately this has been made easier in Figure 5. Wrap up and export your hard customization work in a few easy Dynamics CRM 2011. Forms now have steps. customizable headers and footers that stay put even when content in between is scrolled, and drag-and-drop is fully supported when designing forms. Another powerful addition is sub-grids, which can show lists of records in one form, where Dynamics CRM 4.0 had to open separate pages for each record. Dynamics CRM 4.0 had a fi xed list of activities, whereas now organizations can defi ne their own activities—for instance, creating “onsite repair,” which can then be tracked. In Dynamics CRM 4.0, each activity had to be opened individually to change the status; this can be done in bulk in the new release. When you want to collect a fair bit of information from a user or provide a guided approach for Figure 6. Integrating SharePoint and Dynamics CRM is now just a few clicks problem solving, Dynamics CRM 2011 now and a simple installation away. off ers a guided dialog feature that presents a set of screens (a wizard) for the user to input data. These process-oriented dialogs can also incorporate the powerful workfl ow features of Dynamics CRM 2011. For more advanced customization, it pays to know that Dynamics CRM 2011 is Auditing of actions in CRM 2011 is now written in the Microsoft .NET Framework 4, enabling the use of C# assemblies; it built-in, as is field-level security. Another also lets you call third-party Web services. Developers can also incorporate Silverlight, powerful addition is role-tailored views, Windows Communication Foundation and Language Integrated Query (LINQ) while which can hide or show certain fi elds in a form, developing cloud-capable solutions. depending on who’s viewing the informa- Another big boon for ISVs is the ability to package an add-on into a solution. This tion. This can be used not only as a security wraps up custom code, scripts, HTML pages and other elements into a single package feature, but also to make sure users focus on and also allows the author to control what parts can and can’t be changed with versioning the information their job role demands. A support (Figure 5). Dynamics CRM 2011 is also Windows Azure-aware, which opens up user can have one or more roles assigned to the possibility for developers to create highly scalable solutions easily. The fact that the them, and roles can be scoped to geographical Visual Studio Workfl ow designer can be used to build workfl ows directly for Dynamics locations (Figure 4, p. 35). CRM will also make developers’ jobs lighter. There are new mobile-friendly forms, and the fact that scripts and Web resources can be SOCCIAL NETWORRKS AND CRM stored in reusable libraries instead of having There’s no doubt that the likes of Facebook, LinkedIn and Twitter are changing the to be copied to each individual form should way businesses look at marketing. In this increasingly interconnected world, it’s prove very popular with developers. vital that a company is aware of what’s said about it and its products. Gathering

36 Redmond Channel Partner JUNE 2011 RCPmag.com information about potential customers and competitors is ISVs can easily reach potential customers with their extensions. also key. Even though it’s early days for the Marketplace, there’s a good There’s a Social Networking Accelerator for Dynamics CRM 4.0, and selection of add-ons for Dynamics CRM 2011. Here are some of an updated version is coming for Dynamics CRM 2011. Unfortunately, the more interesting packages; all of these work with CRM 2011 there’s no date as of yet. For users who access Dynamics CRM through on-premises, and all but Vibe and InsideView for Sales work with Outlook, many social networking benefi ts can be had today through Dynamics CRM Online: the excellent Outlook Social Connector for Outlook 2003/2007/2010. Vibe from Sonoma Partners LLC is free and is like Facebook for Dynamics CRM 2011. It gives employees, especially geographi- SHARE AND SSHHARE ALIKKE cally dispersed ones, the ability to “chat” with other staff members SharePoint is the premier Microsoft fi le and collaboration tool; and follow what they’re doing. in Dynamics CRM 4.0, it required custom coding to integrate it. Dynamics CRM Online Quick Start Template by Zero2Ten Inc. In what is possibly the most important new feature of Dynamics provides templates to help you get up and running much CRM 2011, integrating the two is now a very simple process quicker than you can with vanilla Dynamics CRM, and give (Figure 6 opposite page). Note that it’s possible to integrate an you a leg-up in adapting Dynamics CRM to work the way your on-premises Dynamics CRM with a hosted SharePoint environ- business works. ment (Office 365), or Dynamics CRM Online with SharePoint Customer Portal by Microsoft Dynamics Labs is a free add-on from on-premises (provided it can be accessed from the Internet)—and Microsoft that gives you a portal for your customers and allows even Dynamics CRM Online with SharePoint Online. If you don’t them to interact with Dynamics CRM (examples include lead use SharePoint, the traditional method of fi le attachments is still generation, service scheduling, case management, event calendar, available in Dynamics CRM 2011. product registration, self-help knowledge base and content If you’re using Business Connectivity Services in SharePoint (BCS, management). called Business Data Catalog in SharePoint 2007), it can be connected MobileAccess 5.0 by TenDigits Software Inc. lets your people to Dynamics CRM 2011. For those businesses that have opted for access Dynamics CRM while on the road, whether from Microsoft Lync for their communication needs, Dynamics CRM 2011 BlackBerry devices, iPhones or iPads. The concept of “one product integrates well with it and provides presence and communication for all smartphones” is popular, as is the power of the tool. tools directly in the UI. InsideView for Sales by InsideView Inc. integrates company information from LinkedIn, Facebook and more than 20,000 Web THE BEST OF BOOTH WORLLDDS? sites and blogs, as well as Twitter, to give sales a good insight into If you’re looking to implement Dynamics CRM 2011 on-premises, all sources of information. there’s a fair bit of planning involved, depending on the size of the Scribe Replication Services by Scribe Software Corp. provides business. Microsoft has a good planning document available that reassurance if you’re worried about all your CRM data living in the outlines each step, and also provides additional documents and cloud, or have regulatory requirements to have data on-site as well checklists. The on-premises path will suit organizations that have as in the cloud. Replication seamlessly keeps the data in the cloud in deep customization needs or who want to integrate Dynamics sync with a SQL Server on-site. CRM with other business applications. Some businesses have requirements that stipulate that the data has to stay in-house, but STRRONG PLAAY BBY MICROSOOFTT many businesses in today’s economy will have more operational Dynamics CRM 2011 has more than 500 improvements, integrates budget than capital expense budget. Going with Dynamics CRM seamlessly with Outlook and Offi ce and provides an outstanding Online also makes it easy to get started quickly. Another powerful CRM environment. Whether this new version, its price and the feature is that moving from one to the other really just involves accompanying promotions are enough to give Salesforce.com a copying confi guration and data. Many companies fi nd their feet run for its money remains to be seen. with a pilot in Dynamics CRM Online before proceeding with a One important thing for Dynamics CRM partners to realiz e is full-scale, on-premises implementation. that their role will change. A business can now set up a trial of Microsoft is currently off ering a promotion (until June 30, 2011) Dynamics CRM 2011 Online in a matter of minutes, without involving where an organization will receive $200 per user for switching from a a partner. On the other hand, this is likely to put Dynamics CRM competitor’s product to Dynamics CRM 2011 Online. The minimum in the minds of many businesses that might not otherwise have purchase is 15 licenses, and you have to sign up for a two-year licensing considered it, and the key to any successful CRM implementation subscription. The maximum number of licenses that can receive the is customization—something most businesses will need partner payment is 250. Competing products have to be from either Salesforce. assistance with.• com (Pro, Enterprise or Unlimited Edition) or Oracle Corp. (Siebel CRM or CRM On-Demand). Paul Schnackenburg, MCSE, MCT, MCTS and MCITP, started in IT in EXTEND DYNNAMMICS CRM 2011 the days of DOS and 286 computers. He runs IT consultancy Expert At the same time as releasing Dynamics CRM 2011, Microsoft IT Solutions, which is focused on Windows, Hyper-V and Exchange also opened up the Microsoft Dynamics Marketplace so that Server solutions.

RCPmag.com JUNE 2011 Redmond Channel Partner 37 SELLING MICROSOFT BY KEN THORESON

VISIT RCPMAG.COM FOR THORESON’S Strategic Sales SALES MANAGEMENT GURU BLOG Management RCPMAG.COM for the Cloud my blog I’ve written extensively on this topic. My main rule is: Become a member Analyze your existing customer base and of—not a vendor to—the market. Going determine if you already have a certain vertical is as much of a philosophical change as a business change. level of expertise within a market that you ✱ Fix the Funnel. Develop a marketing can leverage. funnel that’s designed to properly feed your sales funnel. You need to know the ecently we surveyed Suite (BPOS) market; no more than a metrics of each stage of your sales funnel, a variety of Microsoft three-step sales process by compacting such as the number of opportunities and partners who are focused multiple steps into one event; and Web dollars required to exceed your monthly on developing a cloud conferencing tools such as Live Meeting sales objectives, the number of ideal practice. The results and your Web site to sell your fi rm and clients/prospects in your marketing essentiallyR confi rmed what I’ve found with your off erings. funnel, the number of campaigns per my consulting clients: Most partners are ✱ Precision Management Is Critical. quarter you need to run (double the simply struggling to fi nd their way and are If you’ve been in the product business number you’re doing today for a cloud partly cloudy on the approach to leading along with your Microsoft practice, then practice) and the number of leads their sales teams. There has been a lot of you understand margin management. required from marketing each month to marketing noise about the cloud: its impact Build a sales, marketing and operations enter your sales funnel. on the market, what segments to attack dashboard specifi cally for your cloud ✱ Sales Compensation. If your practice and its impact on the partner business practice. Create goals and track results in the cloud is strategic, then consider model. Very little has been done to deliver for gross profi t, leads from each market- a compensation plan that’s based on to Microsoft partners specifi c tactical tools ing source, number of sales calls per week, the annual revenues off the recurring to drive this transforming business. quotes per week and seats sold per month. revenues and build a quarter-to-date Microsoft’s marketing teams have ✱ Go Vertical! Analyze your existing cloud revenue per seat goal. When those advised that, to succeed, partners must customer base and determine if you numbers are exceeded, pay a fl at bonus increase lead volume, increase sales already have a certain level of expertise amount. If the client is a net new, pay an velocity, shorten the sales cycle and within a market that you can leverage. additional bonus commission on all other consider a vertical approach. However, Every partner should have at least one sales to that client for the fi rst 12 months. it’s left to the partners to fi gure it out. So vertical off ering: your marketing costs But the fi rst decision you must make this month I’d like to share some detailed will go down, your cost of sales will be is why you want to enter the cloud. suggestions for building a successful reduced and your revenues will grow. In More than ever before, creating a solid cloud practice. fact, I believe you can triple your sales business plan that’s both strategic and ✱ Create a Practice Statement. This in three years with a vertical approach. tactical is critical. • simple process of asking some internal Here’s how: Find a market, do research questions will improve your focus. What on competition and regulations, deter- products and services do you off er? What mine the market size and opportunity, Ken Thoreson is president of Acumen markets do you serve? What benefi ts will determine the market’s “business chal- Management Group Ltd., a North American customers achieve? What makes you lenges,” call 100 prospects to determine consulting organization focused on improving unique? What after-the-sale services do the market acceptance, interview 10 sales management functions within growing you off er? organizations and lay out an 18-month and transitional organizations. You can reach ✱ Shorten Your Sales Cycle and Reduce marketing plan. In past columns and Thoreson at [email protected]. Cost of Sales. Some best practices we’re seeing include using inside telesales for Next Time: Look for Thoreson’s Next Column in August the SMB/Business Productivity Online ILLUSTRATION BY JILLIAN SCHNARE

38 Redmond Channel Partner JUNE 2011 RCPmag.com CHANNEL CALL BY KEITH LUBNER VISIT RCPMAG.COM FOR LUBNER’S PREVIOUS COLUMNS ON KEY PERFORMANCE INDICATORS AND THE “GEARS” OF THE CHANNEL P = Performance RCPMAG.COM

This ties directly into sales and will help the vendor determine good cross- selling and up-selling opportunities. If a It’s one thing to be productive, but if your product is not selling as much as it should and the number of resellers enabled on productivity comes at a high cost, you lose— that product is low, it’s a fairly simple therefore it’s important to also be effi cient. correlation. However, you’d be amazed at how ast month I started discussing to produce consistent and predictable many vendors simply don’t track this metrics and the importance revenue. information. of measuring your channel. The same goes for Average Growth Number of Deals by Solution Selling Specifi cally, I narrowed Per Reseller. If growth rates maintain Reps vs. Non-Solution Selling Reps. the focus to a few sales and a positive trend, then you know produc- This KPI goes right to the core of training marketingL key performance indicators tion is OK. The reverse holds true, too. and will help you draw a correlation to (KPIs) outside of the norm. This month, If growth rates plateau or decline, the training needs of your sales team. I’ll look at a few more specialized KPIs. something in the production chain must Also, it lets you easily justify investing be fi xed. in training if the numbers warrant the Expanded Categories With Average Sales Per Reseller investment. While the bulk of the KPIs my team Per Month, we naturally think “sales has developed fall into the sales and indicator.” Look at this from a trending Performance marketing bucket, our team expanded perspective, however, and you start to The entire reason for developing into other categories for measurement. shift your thoughts to productivity. KPIs exists with the middle word of For instance, we took a look at KPIs that phrase: performance. The three within the productivity, effi ciency and Effi ciency categories listed here—productivity, enablement categories as they relate to It’s one thing to be productive, but if effi ciency and enablement—are critical the channel. your productivity comes at a high cost, gears in increasing the performance of These areas may sound familiar to you, you lose—therefore it’s important to also your company. because earlier this year I wrote a series be effi cient. Track these areas well, derive of columns on the optimal “gears” within For instance, take a look at your meaningful insight and watch your a channel. Well, this is a way to measure Revenue to Expense Ratio on Channel company thrive. • those gears. Deals. That is, create a KPI specifi c to this and start tracking it. What will happen is Productivity that you’ll start to really pay attention to Keith Lubner is managing partner of Some productivity KPIs already exist the expenses on each deal, making your Channel Consulting Corp., a global within the sales category, but you need team become as effi cient as possible in consulting organization focused on channel to get very granular and break some KPIs the process. strategy, design, enablement, outsourcing out into diff erent categories. For instance, and training for growing companies. one of the KPIs within productivity is Enablement For more information about Lubner Average Revenue Per Reseller. Wait, Number of Resellers Enabled on and his organization, be sure to visit isn’t that a sales indicator? Non-Performing Products vs. Total channelconsultingcorp.com. You can It is and it isn’t. This really is an Number of Resellers Enabled. It’s a long also reach Lubner via e-mail at indicator of productivity. If your KPI name for a really interesting metric. [email protected]. average revenue steadily grows month over month, then you know that there Next Time: The Last Mile for Metrics

ILLUSTRATION BY JILLIAN SCHNARE exists systems and processes in place

RCPmag.com JUNE 2011 Redmond Channel Partner 39 CHANNELING THE CLOUD BY JEFFREY SCHWARTZ

statements on the situation as it A Lesson from the was unfolding (though it was in direct communication with aff ected customers). Considering how visible Amazon Outage: Amazon technologists are on social media, including Twitter, a mere refer- Speak Up ence to the dashboard felt shallow. “The fact that disaster is inevitable is why good communications skills are so crucial for any company to develop, and why Amazon’s anemic public response to the outage made a bad situation far worse than it needed to be,” noted PundIT analyst Charles King, in a research note. I remember during the dot-com boom more than a decade ago when companies like Charles Schwab, E-Trade and eBay had highly visible outages that aff ected many thousands of customers. They took big PR hits for their lack of availability, but their Web businesses prospered nonetheless. Though the Amazon outage will upgrade the discussion to the importance of resiliency and redundancy (those discussions were already happening), it seems highly unlikely that it will alter the move to cloud computing, even if it serves as a historic speed bump. To its credit, Amazon acknowledged he Amazon Web Services “Every day, inside companies all its mistakes. In a detailed post mortem four-day outage in late April over the world, there are technology issued four days after it resumed service, was a defi ning moment in the outages,” Rackspace Chief Strategy Amazon promised to improve communi- history of cloud computing— Offi cer Lew Moorman told The New York cations in the future. “We would like our not only for its impact, but for Times. “Each episode is smaller, but they communications to be more frequent Tthe way the company handled it, which add up to far more lost time, money and and contain more information,” the can serve as a good lesson to any provider business.” company said. “We understand that of services. As for the Amazon outage, he added: during an outage, customers want to The widely reported outage at the “We all have an interest in Amazon know as many details as possible about Amazon Northern Virginia datacenter handling this well.” Did Amazon what’s going on, how long it will take left a number of sites crippled for several handle this well? Let’s presume the to fi x, and what we’re doing so that it days. However, the company acknowl- company did everything in its power doesn’t happen again.” edged that .07 percent of the Elastic Block to remedy the problem and get its While the Amazon outage was a black Storage (EBS) volumes wouldn’t be fully customers back online. eye for cloud computing, providers recoverable. This was perhaps the most The problem was that Amazon went of all sizes—including Amazon—will signifi cant cloud outage to date, but dark from a communications perspec- undoubtedly learn from the mistakes that certainly it was not the fi rst time a Web tive. Sure, it posted periodic updates were made, both technical and proce- service, network or datacenter on its Service Health Dashboard, but dural. Hopefully, that will include better went down. the company issued no other public communications moving forward. •

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

40 Redmond Channel Partner JUNE 2011 RCPmag.com

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