The chatter between Microsoft Channel Chief Jon Roskill, cloud integrators and solutions providers continues. In recent weeks, Roskill has hinted multiple times that he’s listening closely to channel feedback regarding Microsoft’s cloud billing strategy for Office 365 and Business Productivity Online Suite.
Some partners have expressed concern that Microsoft directly bills end-customers for cloud applications like Exchange Online and SharePoint Online. In stark contrast, rivals like Google Apps allow channel partners to manage end-customer billing.
So what’s new? Roskill has sent a five-point email to Redmond Channel Partner on the topic. The upshot: Microsoft is listening closely to partners but the top priority involves getting Office 365 — the forthcoming successor to Microsoft Business Productivity Online Suite (BPOS) — out the door.
Now, a confession: I like Jon Roskill. I think he’s responsive to the channel. He accurately points out a bunch of ways VARs can become the partner of record for Microsoft’s cloud deployments. He concedes Microsoft isn’t perfect. But most of all: I think he’s buying time. Sources close to Microsoft tell me there will be more billing-related progress later this year… though those sources stop short of saying partners will control end-customer cloud billing.
Either way, Redmond Channel Partner accurately states that the cloud billing topic has struck a nerve. I suspect only about 5 to 10 percent of Microsoft’s channel partners want to manage end-customer cloud billing. But that minority is very vocal. And some have already fled Microsoft and embraced rival hosted Exchange offerings from folks like Intermedia.
Roskill needs to solve this… for partners. And for Microsoft’s credibility in the channel.
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Good piece Joe. From my experience talking with partners at shows the number is higher than 5-10% that want to maintain the billing relationship. Many of them don’t bother vocalizing this because they don’t feel like Microsoft is listening and are wary of Microsoft threatening their status classification if they don’t sell the service. I heard that same message from no fewer than a dozen current Microsoft partners at the last show I attended. Perhaps they were telling me what I wanted to hear because of who I work for, but if a dozen of them all came up with the exact same answer, there has to be some merit to it.
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I have attended a lot of Partner Events, and I have met few partners who wouldn’t prefer to provide just one bill to their clients for all their services, including Microsoft Cloud services. The client base has already shown, I think, that they consider vendor management an important part of the service that VARs or MSPs provide. I don’t think Microsoft was necessarily sinister in their choice to bill the clients directly, but it was a tone-deaf move with regards to the channel…
Sean@1: You could have a point. Perhaps I’m understating the # of partners who are upset. And thanks for disclosing your shameless plug in a creative way. We try to make sure our comment areas aren’t filled with endless self-promotion from readers. Your tongue-in-cheek approach made it past out censors
Bruce@2: I think you nailed it. Nothing sinister here. Definitely tone deaf. But why hasn’t Microsoft heard the music at this point? Strange…
-jp