1. 1/10/2018 9:18 AM
Microsoft 365 Business Introducing a fully integrated solution for SMBs updated 8/2/17
© Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

2. Agenda What does today look like? What is Microsoft 365 Business?
Succeed with Microsoft 365 Business
This presentation will explain how Microsoft 365 Business - our new, fully integrated, cost-effective solution for small businesses - will help you simplify your sales cycle, increase your profitability, expand your services, and retain your customers.
The following slides outline why we’ve created Microsoft 365 Business to respond to the needs of small businesses, what this product is, how it can lead to more profitability in your business and how you get it into the hands of new and existing customers today.

3. What does today look like for your customers?
Employees using personal mobile devices
IT purchasing decisions made “on the spot”
What does today look like for your customers?
PCs refreshed when dead
NO TECHNOLOGY STRATEGY
New PCs bought adhoc
“GOOD ENOUGH” PLATFORMS
FRAGMENTED
END-POINT SOLUTIONS
LEGACY BACK OFFICE
This is how things look for a lot of small businesses today.
Customers’ IT infrastructure is becoming increasingly fragmented as they attempt to improve workforce productivity and try to work within budget constraints. The irony is that this fragmentation means the customer is spending more money, but you aren’t necessarily making more profit.
When customers add new services and solutions to fill the real and perceived gaps in their IT, they are holding onto legacy systems that are ‘good enough.’ These legacy systems take more time to manage, which also impacts your profit margins.
Meanwhile, your customers are using many different devices, and whether they know it or not, have a mobile workforce that needs additional security and protection. Studies show 60% of small companies go out of business within six months after a cyber-attack!* It is cumbersome for you to sell and implement a compelling security and business continuity offering because you need to source different best-of-breed solutions outside the Microsoft stack.
*[footnote]
Source: Small Business Trends, CYBER SECURITY STATISTICS – Numbers Small Businesses Need to Know, Jan. 3, 2017
Local Logins /MSA

4. What does today look like for you?
Increased security exposure
Cross-platform device management requirements
INREASINGLY COMPLEX CUSTOMER DEMANDS
Race to the bottom pricing impacts deal profitability
Custom solutions required for interoperability
Need to source best of breed solutions
Difficulty differentiating brand
Greater effort to maintain customer base
MULTIPLE TECH PRODUCTS
TOUGHER COMPETITIVE ENVIRONMENT
Increased implementation and management complexity
We are hearing from the CEOs of our IT reseller and managed services partners about the increasingly complex dynamics that are making the sales cycle harder than it should be.
It is harder to establish yourself as THE technology partner who can manage-it-all for your customers when there are so many competing products in the mix, and new competitors are stepping onto the scene every day.
Even if you can establish yourself as your customer’s central management vendor, you aren’t necessarily able to make more profit from that account because the infrastructure takes so much time to implement and manage.
Yet, until you establish yourself as the trusted advisor, the reality is that the customer will be harder to retain and grow over the long term.
So, do you accept reduced margins in favor of becoming that trusted advisor and securing on-going revenue streams?
No. This isn’t sustainable. This doesn’t lead to growth.
Multiple technology vendors servicing single client

5. Bringing together best in class solutions…1
Bringing together best in class solutions…
Office 365
Windows 10
Best of EMS 1
Microsoft 365 Business
Desktop Apps
Word, Excel, PowerPoint, and more
Online Services
Exchange, OneDrive, Skype, Microsoft Teams
Business apps
Microsoft Bookings, Outlook Customer Manager, MileIQ1
Everything in Windows 10 Pro2
Plus…
Windows Defender Security Controls
Windows Autopilot
Automatic Office apps deployment
App protection for Office mobile apps
Device Management for Windows 10 PCs
Selective wipe of company data
Microsoft 365 Business will help you to compete more efficiently, sell more services and retain customers because it brings all of the technology that small business need at a single per-user/per-month price point.
Microsoft 365 Business brings together the security and innovation of Windows 10 with the power and familiarity of Office 365 and streamlined management and maintenance capabilities built specifically for small and mid-sized businesses. Microsoft 365 Business is designed to help keep company data secure while ensuring employees are their most productive, in the office or on the go.
With productivity apps such as Word and Excel, cloud storage, and calendaring, and an exceptional chat-based workspace to bring teams together, your customers will be able to achieve more as they create and collaborate with people inside and outside their company in ways that they never dreamed possible.
Microsoft 365 Business standardizes your customer’s devices on Windows 10, the most secure Windows ever. Building upon this strong foundation, Microsoft 365 Business adds cloud-based management and servicing which helps ensure that customer devices are properly configured to take advantage of the security innovations in Windows 10 and significantly reduces the businesses risk profile.
Microsoft 365 Business also includes mobile application data and device management, even on personal devices. With this functionality, when an employee leaves the organization, or loses their device, for example, you are going to be able to protect your customers’ company data, while reassuring the employee that her pictures and text messages remain private on her personal device.
Since Microsoft 365 Business is cloud-delivered and enabled, you can count on automatic updates to keep your customers’ apps and devices current with the latest and greatest security protection and features from Microsoft. Your customers will get to host their data on the same cloud that hosts data from over 85% of Fortune 500 companies.
This is all made more efficient for you through the Admin Console. The admin console not only simplifies things on your end, but gives you self-service tools that can create lower delivery costs and increased consulting and managed services margins. This frees up time on your end to invest in new capabilities that expand your business into new market areas.
One Admin Console
[1] Available in US, UK, and Canada only [2] ncludes upgrade rights for Windows 7 or 8/8.1 Professional licensed PCs to upgrade to Windows 10 Professional

6. What does Microsoft 365 Business mean for you?
TOUGHER COMPETITIVE ENVIRONMENT
INREASINGLY COMPLEX CUSTOMER DEMANDS
MULTIPLE TECH PRODUCTS
Cross-platform device management requirements
Custom solutions required for interoperability
Increased security exposure
Race to the bottom pricing impacts deal profitability
Greater effort to maintain customer base
Difficulty differentiating brand
Increased implementation and management complexity
Multiple technology vendors servicing single client
Need to source best of breed solutions
Expand Your Services
Upsell managed services more easily
Increase addressable markets
Recapture services revenue
Increase Your Profitability
Accelerate the sales cycle
Avoid sourcing solutions from multiple vendors
Implement quickly
Drive Customer Retention
Become a trusted advisor
Demonstrate unique value
Address security concerns
We’re hearing from partners like you that you want a way to increase profitability now and in the long term AND you want to create predictable, recurring revenue streams.
Doing this requires finding a simple way to scale and standardize, so that your managed services are an easy, natural value addition requiring less time from you.
You also want to be able to assure your customers that as their business grows, their infrastructure does not need to become more complicated – they can simply scale up and scale down as business needs change. And you can retain that customer for the long term.
Introducing Microsoft 365 Business, a new integrated solution that will help you to compete more efficiently, sell more services and retain customers because it brings all of the technology that small business need.

7. What Microsoft 365 Business can do for you
This is what we’ve been waiting for. Our customers can get everything they need from one vendor which greatly simplifies things for them. It fits our business model perfectly.
– Cloud Sales Manager, Microsoft 365 Business Early Adopter
What Microsoft 365 Business can do for you 8%
10%
20%
Anticipated percentage point increase in managed services margins.
Expected percentage point increase in managed services attach rate.
Anticipated percentage point increase in deployment and advisory services revenue.
Microsoft has been building solutions for SMBs for a long time, but historically, you had to put the pieces together yourself. This is one solution, combining the top features that small businesses need to be productive and secure in today’s business world, sets you up to be your customer’s one-stop-shop for always-up-to-date technology.
A Total Economic Impact Study conducted by Forrester Consulting this year found that Microsoft 365 Business will enable partners like you to increase profits through higher managed services attach rates (add +10% to existing attach rates) and margins (add +8% to existing margins), increased CSP channel revenue and greater implementation consulting services revenue (add +20% to existing revenue).
The partners that participated in the study also reported a couple of other benefits that underpin the quantifiable benefits we just described. Sales cycles are accelerated because the Microsoft 365 Business story is compelling and the simplified licensing model makes the buying decision easier. Microsoft 365 Business also makes partners stickier with their customers because they are viewed as a trusted advisor and because of multi-year managed service contracts.
That’s pretty compelling feedback.
Source: A Forrester Total Economic ImpactTM Study, "The Partner Opportunity For “Business Cloud Suite".” June 2017

8. /year $1,320 (10–99 employees) In 2016, SMBs spent: Per employee.
Profitability also comes from the opportunity to capture a larger share of the money your customers are spending on IT every year as recurring revenue.
With Microsoft 365 Business you can broaden your services offerings, making it easier for you to sell more to new AND existing customers.
According to survey conducted by IDC in January 2017, of the average total spend of $1,320 per employee, per year for businesses with less than 100 employees, 42.7% is spent on hardware, 27.5% is spent on software, 18.1% is spent on IT Services and 11.7% is spent on Cloud Services.
Until now we have not had an all-in-one solution like this for small customers, which has made it hard for partners like you to secure a larger share of this budget.
Many of our managed services partners are looking for ways to capture more revenue in areas such as incident level user support, managed security services and training/optimization and advisory services.
With Microsoft 365 Business, for example, you can easily create a BYOD-as-a-service offering, with integrated security features, and the ability to deliver data protection across Windows and mobile devices, which could get you a much bigger share of that per employee budget, and a much bigger profit margin.
Per employee.
On their IT.
Source: U.S. Small and Medium Business Forecast, : PCs and Peripherals, Systems and Storage, Telecom Equipment, Software, IT Services, and Business Services; #US , May 2017

9. What’s right for your customer?
Microsoft 365 Enterprise
Highest level of productivity, management & security
Support for hybrid environments
Modern voice with cloud PBX
Microsoft 365 Business
Integrated productivity, management & security
Best of Office 365 apps & Windows 10 Business
Now let’s talk about who this solution is for… As you’ve seen, Microsoft 365 Business will give you the ability to expand your customer base, expand your user base within existing customers and offer new services.
Consider Microsoft 365 Business for customers looking for a comprehensive solution which can help them protect their business from security threats, while enabling their employees to work on the go. Microsoft 365 Business has Azure AD, making it the solution for customers who want to go all-in to the cloud.
Consider offering Microsoft 365 Enterprise, based on the following:
Microsoft 365 Business is available up to 300 seats, with a sweet spot of seats. Consider Microsoft 365 Enterprise if your customer’s organizational size is outside this range.
if your customer is in a highly regulated industry (for example: healthcare, legal)
If your customer needs to have an on-prem domain controller
If your customers need to use a specific feature, like e-discovery, which is only available with the enterprise products.
Consider offering Office 365:
If your customer is not ready to go all-in to the cloud, and is looking to make a first step.
If the customer’s org size is very small.
Office 365
Fast path to modern productivity & collaboration
Automatic security and feature updates

10. Microsoft 365 Business Launch details
Public preview begins August 2
$0 preview SKU on CSP Price List
Support available via standard CSP support channels
GA towards the end of the calendar year (price to be $20/mo/user)

11. Get Ready for Microsoft 365 Business
We’re helping our customers leverage technology in ways they never have before…
– CEO, Microsoft 365 Business Early Adopter
Join the Cloud Solution Provider Program, if not already
Get ready to sell Microsoft 365 Business partners.office.com/Microsoft365Business
Extend your managed services offerings with the power of Microsoft 365 Business
Be part of the public preview, offer Microsoft 365 Business to your customers now
All in all, having a fully integrated, cross-platform solution for you to sell to small businesses is very exciting for Microsoft, and we hope for you too.
We’re excited because we see the potential for you to create so much more value for our shared customers, in a way that increases your profit margins, captures recurring revenue for the long term and allows you to scale to more customers around the world.
We anticipate much excitement amongst small businesses when they find out that they can leverage the same solutions and infrastructure that the world’s largest organizations use today.
Microsoft 365 Business will help you simplify your sales cycle, increase your profitability, expand your services and retain your customers.
So get started today!