Incentives Partner Guide
Incentives Partner Guide
Incentives Partner Guide
Thank you for your support. At the Worldwide Partner Conference in July 2011, Microsoft announced a set of incentives that will help you grow and pursue opportunities in new and competitive markets. This book contains channel incentives summaries for Microsofts Fiscal Year 2010 (FY12). We are providing you with this guide as a way to help you learn more about them. You can direct questions to your Regional Service Center.
Sincerely,
INCREASED
Rates after Oct 1, 2011
NEW RATES
GLOBAL
NEW!
Suites
Example: ECI
10% 7% 5%
Enterprise Standard
20% 10%
Enterprise
20%
Standard
10%
Application Integration Business Intelligence CRM Data Platform ERP Identity & Security ISV / Software Portals & Collaboration Server Platform System Management Virtualization
Application Integration Business Intelligence Data Platform Identity & Security Server Platform Systems Management Virtualization Desktop Identity & Security Server Platform Systems Management Virtualization
Unified Communications Gold Unified Communications Silver Communications Gold Communications Silver
Partner Sales Exchange (PSX) for Pipeline Mgmt & Deal Registration Channel Incentive Platform (CHIP) for Enrollment & Payment July 1, 2011 to June 30, 2012
Partner Benefits
Microsoft is offering a rich set of financial rewards that: Give partners more growth opportunities across our product offerings and customer base, Recognize partner choice in their business model, and supports profitability goals of a diverse mix of partners, Reward activities that drive revenue and customer value across the sales cycle, Are competitive with those offered by other vendors, Simplify the incentive structure for our partners, with a stronger link between incentives, MPN competencies and customer needs.
Customer Benefits
The introduction of solution incentives has increased partner focus on providing Microsoft solutions to critical customer challenges and greater alignment between customer needs and partner competencies and activities.
Products
SMSE SMSD ECI (allocation System Center & Forefront)* SCE SCVMM VDI SCOM SCCM SCDPM WEDM Forefront UAG
Incentives
30%
Virtualization
20%
5%
5%
*ECI Microsoft only incents for the allocated Management & Security product value Note: Microsoft reserves the right to change Incentive rates after 1/1/2012
The minimum deal size is $5K. Partners can receive up to $50K in incentives for one deal. Incentives are based on first-year billed revenue of New and Add-On license deals. For specific eligible product SKU eligibility information, please check the Program Guide.
Windows 7
Desktop Virtualization Systems Management Identity & Security Server Platform
Partner Sales Exchange (PSX) for Pipeline Mgmt & Deal Registration Channel Incentive Platform (CHIP) for Enrollment & Payment July 1, 2011 to June 30, 2012
Partner Benefits
Microsoft is offering a rich set of financial rewards that: Give partners more growth opportunities across our product offerings and customer base, Recognize partner choice in their business model, and supports profitability goals of a diverse mix of partners, Reward activities that drive revenue and customer value across the sales cycle, Are competitive with those offered by other vendors, Simplify the incentive structure for our partners, with a stronger link between incentives, MPN competencies and customer needs.
Customer Benefits
The introduction of solution incentives has increased partner focus on providing Microsoft solutions to critical customer challenges and greater alignment between customer needs and partner competencies and activities.
Products
Windows 7 Enterprise (requires SA) With MDOP Windows 7 Enterprise (requires SA) MDOP Standalone
Rate (Current)
$5/license
$3/license $2/license
7% 5%
The minimum deal size is $10K. Partners can receive up to $50K in incentives for one deal. Incentives are based on first-year billed revenue of New and Add-On license deals with MDOP Attach licenses eligibility. SA (Windows 7 Enterprise rights) is required for eligibility for all VL Pricing Levels For specific eligible product SKU eligibility information, please check the Program Guide.
Application Platform
SOLUTION INCENTIVES | OCTOBER 2011
Objective
Solution Incentives reward partners for driving sales of specific Microsoft solutions, chosen for their growth and market potential. The program creates opportunities for partners to build new sustainable revenue streams and increase their value to customers.
Partner Sales Exchange (PSX) for Pipeline Mgmt & Deal Registration Channel Incentive Platform (CHIP) for Enrollment & Payment July 1, 2011 to June 30, 2012
Partner Benefits
Microsoft is offering a rich set of financial rewards that: Give partners more growth opportunities across our product offerings and customer base, Recognize partner choice in their business model, and supports profitability goals of a diverse mix of partners, Reward activities that drive revenue and customer value across the sales cycle, Are competitive with those offered by other vendors, Simplify the incentive structure for our partners, with a stronger link between incentives, MPN competencies and customer needs.
Customer Benefits
The introduction of solution incentives has increased partner focus on providing Microsoft solutions to critical customer challenges and greater alignment between customer needs and partner competencies and activities.
Products
Enterprise Edition Datacenter Standard Workgroup
Incentives
20% 10%
The minimum deal size is $25K. Partners can receive up to $50K in incentives for one deal. Incentives are based on first-year billed revenue of New and Add-On license deals. For specific eligible product SKU eligibility information, please check the Program Guide.
Lync
Systems
Partner must have access to the following systems
Partner Sales Exchange (PSX) for Pipeline Mgmt & Deal Registration Channel Incentive Platform (CHIP) for Enrollment & Payment July 1, 2011 to June 30, 2012
Term
Partner Benefits
Microsoft is offering a rich set of financial rewards that: Give partners more growth opportunities across our product offerings and customer base, Recognize partner choice in their business model, and supports profitability goals of a diverse mix of partners, Reward activities that drive revenue and customer value across the sales cycle, Are competitive with those offered by other vendors, Simplify the incentive structure for our partners, with a stronger link between incentives, MPN competencies and customer needs.
Customer Benefits
The introduction of solution incentives has increased partner focus on providing Microsoft solutions to critical customer challenges and greater alignment between customer needs and partner competencies and activities.
Products
Enterprise Server Standalone Enterprise CAL Plus CAL Standard Server Standalone Standard CAL
Incentives
20%
Lync Standard
10%
The minimum deal size is $5K. Partners can receive up to $50K in incentives for one deal. Incentives are based on first-year billed revenue of New and Add-On license deals. For specific eligible product SKU eligibility information, please check the Program Guide.
25%
Windows Intune and Office 365 Promotional Incentive on Year 1 Year 1 Years 2+
5% 2% 0.5%
Sign Microsoft Online Services Partner Agreement Sign Microsoft Online Services Partner Agreement
Partner Benefits
These incentives provide partners with a rich set of financial rewards that: Give partners more growth opportunities across our product offerings and customer base, Recognize partner choice in their business model, and supports profitability goals of a diverse mix of partners, Reward activities that drive revenue and customer value across the sales cycle, Simplify the incentive structure for our partners, with a stronger link between incentives, MPN competencies, and customer needs.
Earning Incentives
A partner must be associated with a customer Microsoft Online Services Agreement as a Partner of Record to automatically start earning incentives.
How are partners paid? Incentives will be calculated for all eligible revenue within the fiscal quarter, and paid out to partners either monthly (for partners with more than 150 active seats), or quarterly (for partners with less than 150 active seats. How are incentives for Government Customer deals being handled? In certain geographies, partners earn incentives for Public Sector customers. Please ask your Partner Account Manager for more details. How will Microsoft incent partners that purchase Office365 and Windows Intune subscriptions purchased through the EA? Office365 and Windows Intune subscriptions transacted within the Enterprise Agreement will be incented through the EA deployment incentive, not this Online Advisor incentive. How are Advisor Incentives for CRM Online paid? The Advisor Incentives for CRM Online are paid through the CRM Solution Advisor incentives program.
Partner Benefits
Online incentives provide partners with a rich set of financial rewards that: Give partners more growth opportunities across our product offerings and customer base, Recognize partner choice in their business model, and supports profitability goals of a diverse mix of partners, and Reward activities that drive revenue and customer value across the sales and deployment cycle.
Program Highlights
The EA Deployment incentive will be paid starting with the January 2012 payment processing. At that time, payments will be processed against all eligible assigned seats deployed since July 1, 2011 for Windows Intune and any seats deployed from Office 365 General Availability. Transacting LARs will be eligible for this incentive as long as they have an eligible solution practice and are validated and associated with an updated EA as the MOS Partner of Record. Specific details on this program are available on www.quickstartonlineservices.com Individual partner attach forms must be filled out to be identified as Office 365 and/or Windows Intune partner of record and earn fees against these individual offers.
Earning Incentives
A partner must be associated with a customer updated EA to be the Partner of Record for the deployment, and automatically earn incentives. To establish this relationship between the partner and customer for deployment, a form must be sent into the local Regional Operations Center. Attach forms are available now, and payments will be made retroactively for all activity since July 1, 2011, starting January 2012. The partner will earn the fee for every net-new deployed seat. If a customer requests a change of partner, the new partner will earn the fee on additional net-new deployed seats. Seats migrated from BPOS to O365, where Microsoft has already made an incentive payment, are not eligible for this incentive.
Can a partner be the deployment incentives-earning partner, without being the EA Partner of Record? No.
Windows Azure
Objective
The Windows Azure Incentives reward partners for selling Windows Azure, creating opportunities for partners to build new sustainable revenue streams and increase their value to customers as partners of choice in the migration to the cloud.
Partner Benefits
Online incentives provide partners with a rich set of financial rewards that: Give partners more growth opportunities across our product offerings and customer base, Recognize partner choice in their business model, and supports profitability goals of a diverse mix of partners, and Reward activities that drive revenue and customer value across the sales and deployment cycle.
Payment is quarterly. Maximum payout of $50,000 per opportunity. July 1, 2011 to June 30, 2012
Process
Eligible partners will sign agreements with Microsoft Eligible partners are invited to Partner Sales Exchange to register opportunities After opportunity is at 100% MS Win and approved by the Partner Account Manager (PAM), opportunity is validated by incentives team. Incentives are paid on a quarterly basis
Partner Benefits
Channel Developer Online Incentives provide partners with a rich set of financial rewards that: Give partners more growth opportunities across our product offerings and customer base, Recognize partner choice in their business model, and supports profitability goals of a diverse mix of partners, and Reward activities that drive revenue and customer value across the sales and deployment cycle.
Eligible Revenue
MOSCD partner can earn incentives on all eligible revenue for their Online Advisor partners (Office 365 and Intune). These channel partners must have a MOSP agreement, and must be selling to customers who are purchasing Microsoft Online Services through MOSA.
Earning Incentives
A Channel Developer partner must be associated with the partners described as the customers Partner of Record, to automatically earn incentives. To establish this relationship between the Channel Developer partner and the Online Advisor partners, the MOSP partner must identify their Online Distributor or record when they sign the MOSPA. Please contact your Partner Account Manager for more information. The partner will earn the fee for every net-new seat. If a customer requests a change of partner, the new partner will earn the fee on additional net-new seats.
The MOSCD Partner Dashboard is located at http://partnerdashboard.microsoft.com. To ask any questions about the Commerce Dashboard, please contact your Regional Service Center.
Online Services incentives are customer-segment and partnertype agnostic. Partners need to meet eligibility requirements, and be selected by SMBD subsidiary leadership, and each participating channel partner needs to meet the eligibility criteria.
Is there a claim process required? No. Once the relationship between a Channel Developer partner and the channel partners is established, earning and payment is automatic. How are incentives for Government Customer deals being handled? In certain geographies, partners earn incentives
for Public Sector customers. Please ask your Partner Account Manager for more details.
Partner Requirements
In order to participate in this incentive program, partners must meet the following criteria: Partners must meet the Gold SAM competency requirements in the Microsoft Partner Network (once worldwide) A Partner Solution Plan must be in place for the SAM Services Workload in each country in which the partner plans to request incentive approval for work under this program The consultant delivering the engagement must be an employee and have passed the 70-673 SAM MCP
These engagements will also increase opportunities for qualified partners to engage new customers to demonstrate the value of SAM solutions, or to engage existing customers in new ways in order to develop deeper relationships and new revenue opportunities.
Eligible Engagements
A set of uniform SAM engagement descriptions which cover three strategic engagement scenarios are eligible for this incentive, as follows: SAM Baseline: inventory of deployed Microsoft assets, review of corresponding customer license documentation, virtual, hosted, or cloud-based solutions, and identification of any opportunities for improvement. SAM Assessment: review of customers existing processes against SAM Optimization Model framework, identifying improvement opportunities and associated ROI. SAM Deployment Planning: provides deployment planning for SAM capabilities relating to deployment, metering, inventory and control through a proof of concept using System Center, MDOP AIS, Windows Intune or MAP.
To ensure full transparency of the engagement details for all parties, the defined deliverables must be provided to Microsoft in order for an engagement to be eligible for incentives under this program.
Will the partner need to disclose to the customer that they are getting compensated from Microsoft?
Yes. Partners must also disclose to customers that they will be sharing the required deliverables with Microsoft as part of the incentive program.
Partners may request a SAM Services incentive for eligible engagements with customers with at least 250 desktops and one or more of the following volume licensing contract types: Enterprise Agreement Enterprise Agreement Subscription Select License Select Plus Academic Select
Which customers are eligible to have SAM Services engagements funded through this incentive program?
PSX is the interface for partners to share and manage their SAM engagement opportunities with the Microsoft SAM Engagement Managers. PSX opportunity creation and related incentive requests are required for a partner to earn an incentive. PSX is globally implemented and available to partners. Contact your Partner Account Manager for further information regarding training and registration.
Open License, Open Value, GSA Select, Campus Agreement, School Agreement, and all other licensing programs not explicitly called out in the above list as being eligible are excluded from this program. Customers who are eligible for SAM Service Delivery under ESA are also excluded from eligibility.
CHIP is the vehicle for partners to enroll in the SAM Services Incentive Program. It also provides partners with a dashboard view of their incentives and is the means to calculate and disperse incentive payments. CHIP enrollment for SAM Services is planned for September 2011.
What if a customer doesnt want to share the engagement results with Microsoft?
Under this program we will only pay incentives for those engagements where the required documentation is shared with Microsoft. Partners will need to discuss the disclosure requirements with customers before applying for the incentive, and should work directly with customers to pay for work delivered outside the approved incentives.
Enrollment is automated through CHIP. Partners who meet the eligibility requirements can receive training from their PAM. They will automatically receive an invitation after which they will be able to enroll in the program.
Partners can charge for any additional services beyond what is required in the predefined SOW from Microsoft. This additional work would need to be paid directly by the customer at the rate negotiated between the partner and customer.
What if the customer wants more assistance than what is provided through the Microsoft-defined SOW and incentives?
Partner Resources
SAM Services on Microsoft Partner Network: https://partner.microsoft.com/samservices SAM Engagement Resources: https://partner.microsoft.com/global/licensing/40092820 General SAM Questions: [email protected]
Incentive rates have been determined based on fixed fee schedule aligned with local market rates. Complete rate schedules are available in the SAM Services Incentive Program Guide.
Open VL - Core - Growth & Incubation Global Incentives 70% Local Accelerators 30% Selected At Area Level (or EU/EFTA)
Open VL, FPP, PKC Core Growth & Incubation Office Professional Office Windows Server Windows 7 InstallBased Upgrade Open Renewal Annuity Open SMB Attach
Aggressive Rates
Local Accelerators 30% Selected At Area Level (or EU/EFTA) OVS Growth Anti-Piracy Renewals Public Sector
Windows Server SQL Server Exchange Server SharePoint Server Development Tools
Managed Resellers
Overview
Managed Resellers are strategic partners for Microsoft because they leverage their various strengths and strategic focus to help extend Microsofts reach into the market for Open Licenses. For some, these strengths include nationwide or multi-country coverage, focus primarily on direct marketing activities such as selling online and through outbound telesales teams, sell in high volumes, and differentiate themselves through their licensing expertise. For others, these strengths include local and regional brands, established solutions practices, and sales and marketing engines. In most markets, a relatively small number of Managed Resellers transact a significant portion of the Open revenue. This group of Managed Partners are also critical to Microsofts compete plans and will be a significant sales engine for Cloud offerings. The Managed Reseller incentives provide rewards for those partners who help Microsoft increase its Open License customer reach through marketing and sales activities. Incentives will include both marketing (coop) and cash rebates to help expand the Open License market opportunity and support marketing investments that benefit both Microsoft and its Managed Reseller partners. Managed Reseller status does not automatically qualify the partner for incentive eligibility. Eligibility requirements include: Have a MS Sales ID; MPN Large Account Resellers (LARs) Silver in Midmarket Solution Provider or SIP-related Competencies for other Managed Resellers Resell Open revenue (TTM) above $75K/year in Mature Markets or $50K/year in Emerging Markets. These market maturity markets are defined by Microsoft with local input; The Microsoft Partner Account Manager (PAM) or Tele-PAM (TPAM) will notify partners of their selection into the program. The eligible partner is required to sign a program letter each year.
Partner Benefits
By leveraging the Managed Reseller incentives, partners can: Grow and extend customer base with enhanced rebates; Use Coop investments to extend marketing reach and accelerate sales; Increase profitability by broadening product/solution offerings into high-growth market segments
Partner Eligibility
Managed Resellers are selected by Microsoft based on their sales history, Microsoft Partner Network (MPN) certifications, local management status, and market coverage on behalf of Microsoft.
Incubation
Resources
More information on the Managed Reseller incentives can be found through Microsoft Partner Network - https://partner.microsoft.com Regional Service Center
Managed Reseller incentives are based on 6-month earnings and claim business cycles, and are split between rebates and coop funds (guidance is for a 50-50 split). Earnings are based on the calculation of the sum of all eligible products multiplied by the published rate for both rebates and coop.
Commercial Distribution
FY12 PARTNER INCENTIVES | JULY 2011
Overview
Commercial Distributors are strategically important partners that make significant contributions to Microsofts success, especially in the Small and Mid-sized market segments. Microsoft offers a set of incentives to its qualified Commercial Distributors as a reward for the value these partners deliver and the work they perform in helping Microsoft achieve its business objectives. The Incentives incorporate slightly different versions in mature and emerging markets. The Microsoft FY12 Channel Incentives for Commercial Distributors include both cash rebates and Cooperative Marketing Funds (Coop). The Coop program provides funds to participating Distributors to help differentiate and build channel preference and awareness for Microsoft products through increased demand generation, market development, and readiness activities.
Partner Eligibility
To be eligible for Commercial Distribution incentives, a partner is required to have the following: A Distribution agreement with Microsoft and authorization specifying entitlement to sell finished goods products Authorization agreements detailing the licenses for products (Open Licenses, FPP, or PKC) it is allowed to sell.
Microsoft Partner Network Gold Competencies for Authorized Distributor and Volume Licensing
Once a partner has been designated by Microsoft as a Commercial Distributor, they automatically become eligible to earn incentives (once the program letter is signed by the partner).
Partner Benefits
By leveraging the Distribution incentives, Partners can: Grow and extend their partner ecosystem with enhanced rebates; Use Coop funds to enable and accelerate channel readiness, marketing and support; Increase profitability by broadening product/solution offerings into high-growth market segments.
Core Growth
High Market Share Stable Growth Medium or High Market Share, Fast Growth Market Introduction: Low Market Share, Fast Growth Potential
Office (VL), Windows Client, Windows Server Exchange, SharePoint, SQL Server, Project, Visio, Development Tools, BizTalk, MDOP Office Communications Server (OCS), Lync, Security & Identity, Server Management
Incubation
Commercial Distribution incentives are paid on the licenses and pricing types below.
Pricing Level FPP and PKC (Office) Open Open Value, Open Value Subscription Commercial/Government New, Upgrade, PKC Open L, Open SA Renewal, Open L&SA OV (New, Recurring, Renewal), OVS New, Recurring, Renewal) Academic FPP Academic Open Academic, Open Gov School (New, Recurring, Renewal), OVS-ES
Resources
Please refer to the FY12 Commercial Distribution Incentives Guide for more information. For more information on Commercial Distribution Coop, and eligible coop activities: http://partner.microsoft.com/distributionkit Microsoft Partner Network - https://partner.microsoft.com
Partner Eligibility
To be eligible for VAD incentives, a partner needs to Maintain an annual VAD channel agreement and an Open License Authorization; Have a channel authorization that specifies the entitlement to sell finished goods products, and authorization agreements that detail the product licenses (Open) it is allowed to sell; Earn Microsoft Partner Network Gold Competencies that align to the solutions for which it is being authorized as a VAD; Provide a 12-month Business engagement strategy plan (after initial three-year plan for first year).
Partner Benefits
By leveraging the incentives, VAD Partners can: Enhance profitability and fund innovation; Foster improved longterm planning; Drive growth for strategically targeted solutions in the Small and Mid-market business segments; Better target competitive products and growth markets.
Open L, Open SA Renewal, Open L&SA OV (New, Recurring, Renewal), OVS New, Recurring, Renewal), OVS-ES
The products listed in the table below are classified as incubation products with high growth potential. VADs can be certified for one or more of these product categories.
Products Lync and Office Communications Server Commercial/Government OCS Standard, OCS Enterprise, OCS CAL, Office Live Meeting Services, Office Communicator and Connectors, Lync Enterprise CAL, Lync Enterprise Server, Lync Standard CAL, Lync Standard Server, Lync Plus CAL, Hosted Lync, Lync Other ForeFront Server, ForeFront Identity Manager, ForeFront Security Suite, ForeFront Client Security, ForeFront TMG and UAG System Center Client ML, System Center Servers
In addition, VADs earn incentives for Windows Server, SQL Server, Exchange Server, SharePoint Server, and Developer Tools sales, when sold as part of the solution. VADs can also attain eligibility to earn Solution Incentives.
Resources
Please refer to the following resources: Microsoft Partner Network - https://partner.microsoft.com Coop Eligible Activities must be submitted for approval by email at [email protected] before they are performed and must otherwise meet the requirements as further defined in the Coop Guide. Contact your Regional Support Center