Microsoft Unveils Pricing and Partner Model for Web-Based Messaging and Collaboration Services

Stephen Elop, president of the Microsoft Business ivision, today announced new pricing, packaging and partner compensation details for Microsoft Online Services. Microsoft Corp. is introducing two new suites of subscription services as part of the Microsoft Online Services family. The new offerings are tailored to meet the needs of the entire work force -- from employees who use a PC infrequently to information workers who require advanced capabilities.

"Today we are taking an important next step in delivering Microsoft Online Services, and we're doing so with a broad set of Microsoft partners, that are crucial to bringing this solution to our customers," Elop said at the annual Microsoft Worldwide Partner Conference in Houston. "Microsoft Online Services is a key component of the software plus services initiative, and we're seeing customers, partners and even competitors embrace this flexible approach to the cloud."

Microsoft Online Services delivers enterprise-class Microsoft software as subscription services to businesses of all sizes hosted by Microsoft and sold with partners, and include Microsoft Exchange Online, Microsoft Office SharePoint Online, Microsoft Office Communications Online, Microsoft Office Live Meeting, and Microsoft Dynamics CRM Online.

Microsoft Online Services is priced to meet the diverse needs of today's workers and provide businesses with a cost-effective means to equip their work force with the tools they need.

Microsoft is introducing Exchange Online Deskless Worker and SharePoint Online Deskless Worker. These new offerings are designed to meet the needs of deskless workers, those people who typically spend a small portion of their workday using a computer but still need to communicate and collaborate with colleagues and partners.

A Deskless Worker Suite, including Exchange Online Deskless Worker and SharePoint Online Deskless Worker, will be available for $3 (U.S.) per user, per month. Customers can also subscribe to each service independently. Exchange Online Deskless Worker will provide e-mail, calendars, global address lists, anti-virus and anti-spam filters, as well as Outlook Web Access Light for access to company e-mail. SharePoint Online Deskless Worker will provide easy access to SharePoint portal and team sites and search functionality, giving employees read-only access to important information such as company policies, training and benefits.

For information workers, businesses can provide an online business productivity suite of Microsoft's enterprise-class communication and collaboration software as a subscription service. The suite includes the following:

• Exchange Online for desktop and mobile e-mail and calendars with Outlook Web Access and full Office Outlook integration
• Office SharePoint Online for portals, collaboration, search and customized team sites
• Office Communications Online for instant messaging and presence
• Office Live Meeting for Web conferencing and videoconferencing

The suite will be available for $15 per user, per month (U.S.). Customers can also subscribe to each service independently.

"Microsoft Online Services is the right solution for our business, as the subscription model enables us to provide our employees with the right software on a variable-cost basis," said Marv Toland, chief financial officer for Eddie Bauer. "This helps Eddie Bauer meet the needs of its employees by ensuring that we are continually upgraded to the most current releases. With Microsoft running these services, our IT department is able to focus on strategic, value-enhancing projects. We believe that this is the model for the future."

Microsoft Online Services creates a new opportunity for Microsoft partners to win new customers, increase revenue and boost sales velocity. Partners are seeing new opportunity to migrate, combine and customize Microsoft Online Services. In addition, partners that sell Microsoft Online Services will receive a recurring revenue stream for as long as their customer subscribes to the services.

"Microsoft is committed to software plus services, and we are equally committed to embracing this opportunity together with the Microsoft partner community," said Allison L. Watson, corporate vice president of the Worldwide Partner Group at Microsoft. "The success of Microsoft Online Services depends on the partners that sell, customize and provide consulting, migration and managed services for customers. The end result is an environment where both customers and partners win. Partners will have a tremendous opportunity in the midmarket, where customers can get enterprise-class software delivered on a predictable, pay-as-you-go basis."

Partners that sell the Microsoft Business Productivity Online Suite, Deskless Worker Suite or any of their components receive 12 percent of the first-year contract price and 6 percent of the subscription fee ongoing. This can translate into 18 percent of the subscription value in the first year of the partner's relationship with the customer.

Today, leading Microsoft partners such as Accenture, Ascentium Corp., Atos Origin SA, BT Group plc, CDW Corp., Evolve Partners, Inc., Getronics NV, HCL Technologies Ltd., K2, M3 Technology Group, Mamut Software Ltd., Neudesic LLC, PointBridge, Susquehanna Technologies, ThoughtBridge and Unisys Corp. have become authorized resellers of Microsoft Online Services. To help partners start to take advantage of this new opportunity, Microsoft today launched Quickstart for Microsoft Online Services, which provides partners with the guidance they need to discover, enroll in and activate the services.

Customer and partner interest in Microsoft Online Services remains high. Customers including Belay Development, Clean Power Research LLC, Cowan, Gunteski & Co., P.A., Eddie Bauer, Gunteski & Co. P.A., PFT-Medway and Transpara Corp have begun using the new services as part of a beta trial. In addition, a growing number of large enterprises have chosen Microsoft Online Services for their messaging and collaboration needs, including A.P. Moeller-Maersk Group, Aviva plc, Doosan Infracore Co. Ltd. and Nokia.

Founded in 1975, Microsoft (Nasdaq: MSFT) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

Source: Microsoft