Many of our clients look to the channel programs of large vendors for leadership. Vendors like Microsoft, Cisco and IBM. Our ‘Four Minute Expert’ series is designed to get you up to speed with the structure of these key programs quickly and simply. In this ‘Four Minute Expert’ guide we’re looking at the Microsoft program.
PROGRAM HISTORY
• The current Microsoft Partner Network (MPN) replaced the old Microsoft Partner Program (MSPP) during 2010. The old MSPP, which had been launched in 2004, pre-dated SaaS solutions.
• The old MSPP had three tiers which were Registered, Certified and Gold, with attainment based on a points system.
• Around 350,000 partners worldwide transitioned from the old MSPP to the new MPN, and 95% of Microsoft’s revenue comes through partners.
• In 2017 Microsoft created the One Commercial Partner (OCP) organization which manages the processes and resources that support MPN.
PROGRAM STRATEGY
The launch of the new Microsoft Partner Network (MPN) saw a major shift towards competency and customer satisfaction as differentiators of partner value in the program. It also saw a shift from reselling as the core model, towards an ecosystem of inter-connected partners selling each other’s technology. In line with this, there has been increased focus on ISV partners who develop solutions on Microsoft platforms, and in particular on the creation of application marketplaces which allow ISV’s to market their solutions to customers (AppSource Marketplace) and to other partners (Azure Marketplace).
PROGRAM STRUCTURE
There are four partner tracks in MPN, reflecting the varying business models in the Microsoft ecosystem:
Build Partners: who create customer solutions on Microsoft technologies, a big focus for MPN. Often called ISV’s.
Deliver Partners: who provide outsourced hosting of IT infrastructure on a monthly fee basis. Often called MSP’s.
Integrate Partners: who support deployment of customer solutions, offering consulting and design. Often called SI’s.
Resell Partners: who transact license sales, or who act as distributors selling to other resellers. A lesser focus for MPN.
Broadly, partners in each track are offered the following journey, through four program tiers:
Network Member: free enrolment and access to sales, marketing and technical resources. Requires completion of a business profile.
Microsoft Action Pack: membership is around $500 per year, and gives access to free software and training.
Silver and Gold Competency: requires the partner to have trained Microsoft Certified Professionals and to provide customer case studies. Competency is in one of twenty technology specialisations and is offered at Silver or Gold level.
PROGRAM COMPETENCIES
In order to achieve a competency a partner must:
• Exhibit sales performance in relevant solutions
• Pass exams to have Certified Professionals
• Provide customer case studies
• Pay the required fee
Each of the twenty competencies has specific requirements to attain Silver or Gold status. Achievement of status in a competency opens up access to range of valuable sales and marketing benefits, including account management and marketing resources. It also opens up access to various Microsoft Programs.
A key program available to partners with cloud competency is the Microsoft Cloud Solution Program (CSP). This program allows partners to integrate their solutions with Microsoft solutions, and to offer bundled managed services, where they directly bill and support customers.
Another key program is the IP Cosell Program. This allows partners to register deals with Microsoft and access increased sales support. This program has seen huge growth in the last eighteen months.
STAND OUT FEATURES
In our view at Kovendi, the following features of the Microsoft program stand out as models for other vendors, and are worth your attention:
• Shift of focus from resell to cloud application partners. Microsoft has led the industry in creating a program that focuses on developer and service partners, rather than resellers.
• Customer value and differentiation. Using competencies and customer case studies, Microsoft is linking higher program status to customer value and differentiation.
• Program tracks. Clear program pathways based on the partner business model, so that ISV partners engage differently to MSP or SI partners.
As with all large vendor programs, the Microsoft Partner Network is sophisticated, offering a wide range of best practices for other vendors building out their partner models. At Kovendi we understand these best practices, and can help you apply them in your business. Contact us to find out more.