2. Creating the Microsoft Dynamics 365 Partner of the Future
Microsoft Worldwide Partner Conference 2016
5/20/2018 5:01 AM
CE141
#WPC16
Creating the Microsoft Dynamics 365 Partner of the Future
Jeff Edwards
Director, Channel Strategy
© 2016 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

3. Partner of the future Dynamics Partner Customer Leads with the Cloud
Offers a comprehensive solution
Telephony
ERP
CRM - Customer Engagement
Deeply understands customers’ business processes
Document Management & Workflows
Owns customers’ technology strategy
Dynamics
Partner
Office 365
Owns solution integration and validation
Customer
BI, IoT, Dashboards
Owns the billing relationship
Business Consulting
Mobile Access
Offers managed services including support

4. However…. We were not making it easy
Microsoft Worldwide Partner Conference 2016
5/20/2018 5:01 AM
However…. We were not making it easy
Different pricing models
Different licensing models
Inconsistent depth of integration
Silos focused on product categories
© 2016 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

5. Microsoft Worldwide Partner Conference 2016
5/20/2018 5:01 AM
The digital world
A New Unified Approach to Business Applications
Sales
PowerApps
Flow
Marketing
Comprehensive business processes
Start with just what you need 
Office 365 integration
PowerApps and Flow included 
Intelligence built-in
CRM
ERP
Microsoft Dynamics 365
Project
Service
Finance
Field Service
Operations
Customer Service
© 2016 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

6. The Cloud Solution Provider (CSP) Program
Worldwide Partner Conference 2015
5/20/2018 5:01 AM
The Cloud Solution Provider (CSP) Program
Dynamics CRM Online
Enterprise Mobility Suite
Microsoft Azure
Office 365
Dynamics
ERP
Microsoft continues to expand the CSP program to more partners with access to new cloud services, more markets and new capabilities.
Partners own the end-to-end customer lifecycle with direct provisioning, billing and support of Microsoft cloud services.
Partners create the offer, set the price and own the billing terms with their customers.
Sell Integrated Offers and Services
Own and Control the Billing
Provision, Manage and Support
** Dynamics AX
coming soon!
© 2015 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

7. CSP business models Microsoft Microsoft CSP Indirect Provider
MBS
5/20/2018
CSP business models
Direct Channel
Indirect Channel
Microsoft
Microsoft
CSP Indirect Provider
CSP Direct Partner
CSP Indirect Reseller
Unmanaged Reseller
Customer
Customer
© 2013 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

8. CSP business models – Dynamics 365
MBS
5/20/2018
CSP business models – Dynamics 365
Direct Channel
Indirect Channel
Primary approach for existing Dynamics partners
Only recommended approach for Dynamics AX – with a few caveats
Familiar approach for the business applications market
Opportunity to expand the Dynamics 365 business into the Office 365 channel
New business models and innovative offerings
© 2013 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

9. CSP business models – Dynamics 365
MBS
5/20/2018
CSP business models – Dynamics 365
Direct Channel
Indirect Channel
Primary approach for existing Dynamics partners
Only recommended approach for Dynamics AX – with a few caveats
Familiar approach for the business applications market
Opportunity to expand the Dynamics 365 business into the Office 365 channel
New business models and innovative offerings
Partners have the choice of one or the other…. Or both!
© 2013 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

10. MPN Competency Evolution
5/20/2018 5:01 AM
MPN Competency Evolution
Transition from To
A differentiated approach based on the Cloud maturity of each respective market
CRM Competency based on either on-premises or Cloud revenue/seats, exams and customer references
Cloud CRM Competency
Packaged, repeatable solutions via unique industry IP
Cloud CRM Competency based on Cloud assigned seats, exams and customer references
ERP Competency based on on-premises revenue, exams and customer references
ERP Competency based on on-premises or cloud performance
© 2014 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

11. MPN Competency Evolution
5/20/2018 5:01 AM
MPN Competency Evolution
Transition from To
Dynamics 365 Competency Impacts
To be determined
Appropriate time to transition
Rich and expanding training offerings on the connected solution
CRM Competency based on either on-premises or Cloud revenue/seats, exams and customer references
Cloud CRM Competency
Packaged, repeatable solutions via unique industry IP
Cloud CRM Competency based on Cloud assigned seats, exams and customer references
ERP Competency based on on-premises revenue, exams and customer references
ERP Competency based on on-premises or cloud performance
© 2014 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

12. Microsoft Dynamics Industry Partner Program
Support the transformation of the channel to cloud-based, repeatable vertical solutions
Includes both CRM and AX partners – expanding to NAV/GP in the coming year
Provides clarity to the field and prospects by clearly identifying our most qualified partners by vertical
Provides training, recognition, a logo/brand and leads to the partners that qualify for the program
Increases opportunity pipeline and win rates while reducing sales cycle times
>100 partners worldwide

13. Microsoft AppSource
One destination for business users to discover, trial, and acquire line-of-business apps
Simplifies the discovery, trial, and acquisition of line-of-business apps
An ecosystem to help business users get started using apps faster
Helps business users do more with their existing Microsoft apps

14. Focus drives results Vertical Strategy Cloud Services Mobile Workforce
Professional Services (AEC, Accounting & IT Consulting)
Manufacturing (Industrial Equipment & Life Sciences)
Cloud Services
Dynamics 365 (CRM)
Azure
Mobile Workforce
Use-case solutions (Activity Buddy, Colleague, Attendee, etc.)

15. Industry/Segment strategy
Turn business away that is not strategic
We don’t chase Financial Services deals
We refer out SMB deals to other partners
Focus 100% of our marketing efforts on Industry
Events, branding, digital marketing, inside sales
Subject matter experts
Sales
Delivery

16. Cloud transformation Live and breath the cloud
All internal development is on Azure
O365 deployed internally
Targeted marketing to legacy on-prem customers
Cloud transformation offerings
Strategic selling cycles with Microsoft (create incentives to move)
“Cloud Only” mentality
All new projects are Cloud

17. Mobile first Consumption depends on the Mobile strategy
Mobile drives maximum adoption and usage
Mobile development is “use-case” specific
Dynamics 365 addresses the Macro needs
Mobile development should address the Micro needs
Mobile IP can be horizontal
Identify needs that all your Dynamics 365 customers require

18. Should we invest in a vertical strategy?
Our Experience
Two successful vertical efforts (small markets)
Over 45,000 seats of Dynamics CRM
4 Partner of the Year Awards
Our Methodology
100% Focus on A/E/C and Legal
Pre-configured industry IP (repeat, repeat and repeat)
Pre-built data synchronization and harvesting tools
Best Practices for Business Process and Implementation
Benefits of Approach
Industry recognition, acceptance and momentum
Ability to complete (win percentage and speed to win)
Implementation success and referenceability
REAL $$$ VALUE! (recurring revenue and leverage)

19. Why do you win with a vertical sales process?
What are customers in these vertical markets asking for?
Do I have a partner that understands my business?
Does Microsoft have solutions that fit my business?
How can I reduce my investments cost(s)?
How can I reduce my risks?
How can I leverage all the data that I have in house?
How can I get my users to actually use the system?
How can I leverage the investments we have made in technology?

20. Vertical Strategy: “Win – Win – Win”
Microsoft Win(s)
Industry partner drives new opportunities
Compete more effectively against the bad guys
Larger number of seats per install and expansion
Longer on-going relationship (vertical stickiness)
Clients Win(s)
Speed to install (time to value)
Reduced cost of delivery and implementation
Less risk
Higher user adoption
Partner Win(s)
Quicker Wins against less viable competition
Highly differentiated approach
Reduced pressure to discount
More deal revenue: (CSA, application layer, Services and On-going support)

21. Deepening Your Relevance – Increasing Your Win Rate
5/20/2018 5:01 AM
Deepening Your Relevance – Increasing Your Win Rate
20/50/80
© 2014 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

22. Agenda: Dynamics Partner Incentives
Worldwide Partner Conference 2015
5/20/2018 5:01 AM
Agenda: Dynamics Partner Incentives
FY17 Partner Incentives Strategy
Cloud Solution Incentives
On Premise Solution Incentives
© 2015 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

23. FY17 Partner Incentives Strategy
5/20/2018 5:01 AM
FY17 Partner Incentives Strategy
Cloud-First strategy
Simple and stable
Make incentives easier
Drive usage
© 2014 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

24. Dynamics Cloud Solution Incentives
Continue to deliver solution selling incentives
Optimize for EA and CSP
Introduce Online Services Usage incentive
Retire OSA – Manage incentive

25. OSA Sell – Partner Incentive for EA Timeline Overview
Microsoft Worldwide Partner Conference 2016
5/20/2018 5:01 AM
OSA Sell – Partner Incentive for EA Timeline Overview
July - Oct
Nov-Dec
H2FY17+
CRM OL
Sell & Manage
Sell & Manage
Sell & Usage
AX Cloud
Sell
Sell
Sell & Usage
Dynamics 365 Plans, Sales and Operations
Sell
Sell & Usage
Dynamics 365: Rest of Apps
Sell
Sell &Usage as available
© 2016 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

26. OSA Sell – Partner Incentives for EA
Worldwide Partner Conference 2015
5/20/2018 5:01 AM
OSA Sell – Partner Incentives for EA
Consistent incentive rate and structure as Dynamics transitions packaging to Dynamics 365
CRM
Online
Dynamics AX
Microsoft Dynamics 365
Enterprise Edition
Plan 2
Plan 1
Operations
Incentive
Other Apps
Sell*
26%
65%
65%
26%
Usage**
10%
10%
10%
10%
*Based on 12 months billed revenue
**Usage Incentive is coming in H2FY17
© 2015 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

27. CSP– Partner Incentives
Worldwide Partner Conference 2015
5/20/2018 5:01 AM
CSP– Partner Incentives
CSP incentives for Dynamics 365 are consistent with AX and CRM incentives
CRM Online
Dynamics AX
Dynamics 365
Enterprise Edition
Dynamics 365 Business Edition
Plan 2
Plan 1
CSP
Incentive
Operations
Other apps
Financials App
Direct
Discount
Rebate
25% 8%
30% 8%
30% 8%
25% 8%
30% 8%
Indirect Reseller
Discount
Rebate * 8% * 8% * 8% * 8% * 8%
*Discount provided by the Indirect Distributor
© 2015 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

28. On Premise Solution Incentives
Microsoft Worldwide Partner Conference 2016
5/20/2018 5:01 AM
On Premise Solution Incentives
SPA
CSA
Tier
Mature Market Threshold
Emerging Market Threshold
License Discount A
$1M
$500K
50% B
$250K
45% C
$100K
$50K
40% D $0
20%
Product Line
Mature Market Threshold
Emerging Market Threshold
License Incentive Rate* AX
$250K
$125K
35%
CRM
(July 2016 – April 2017) $0
12%
(From May 2017-)
$100K
$50K
License Incentive Rates will be reduced in FY18
Software Assurance only fee will remain unchanged at 5%
FY17 Top partner License Incentive Rate
AX in EA Partners ($1.3M + USD) 40%:
CRMOP Partners ($2.5M + USD) 14%.
FY17: Top SPA-Only Partners ($4M+ USD): 55% License Discount
Enhancement Plan incentives remain unchanged
© 2016 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

29. 2007 America’s Cup
Winner – Swiss Team
Skipper – Brad Butterworth

30. Today’s America’s Cup Winner – New Zealand Team
Skipper – Peter Burling

31. Recommendations Take an end-to-end vertical approach
5/20/2018 5:01 AM
Recommendations
Take an end-to-end vertical approach
Sell the cloud – opens up your opportunity, fully leverages Microsoft
Expand and strengthen your solution offerings – Microsoft technologies that will be easier to sell, install and integrate than ever before
Build new IP using Dynamics platforms, PowerApps and Flow to deepen your relevance and differentiation to prospects and customers
Validate and promote your new solutions in AppSource for maximum market exposure and quality assurance
© 2014 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

32. 5/20/2018 5:01 AM
The channel remains our critical route to market and competitive advantage – we do not win if you do not win
© 2014 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

33. Complete your evaluations… for a chance to win a prize!
Complete your session and conference evaluations here: aka.ms/wpcevals or though the mobile app
Thank you partner. We value your feedback.
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for completing a session evaluation
for completing the overall conference evaluation
to the non-profit organization Right to Play, a Microsoft YouthSpark Partner

34. 5/20/2018 5:01 AM
© 2014 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

35. Expanding your Offerings, Revenues and Profits
5/20/2018 5:01 AM
Expanding your Offerings, Revenues and Profits
Reiterate Satya’s key points from July 6th release
Offering shift from independent silos to seamlessly integrated solutions delivered via Azure
Sales, licensing, deployment, management and upgrades of the solution will reflect this shift
It will be easier for the partner to deliver, and more compelling for the customer to buy, than ever before
Microsoft is truly bringing all of its weight to bear fully behind business applications – the point of the spear
The channel remains our critical route to market and competitive advantage – we do not win if you do not win
© 2014 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.