roundtable: office 365 advisor to csp conversion

1Proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission.

ROUNDTABLE

Office 365 Advisor to CSP Conversion

Sean OberholtzerApril 1, 2015

Note: The information herein describes products/services that may be in a pre-release stage.

Actual features and functionality may differ and are subject to change without notice

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What is Advisor? And What is CSP?

COMPARISON CHART: OFFICE 365 Open Advisor CSP

Monthly billing flexibility X X

Partner controlled billing and margins X X

Automated monthly billing within Cloud Marketplace X

Ability to true up / down monthly X

Simplified procurement and management within Cloud Marketplace X

Free technical support desk through Cloud Ignite X

Advanced reporting within Cloud Marketplace X

Available to bundle with SkyKick Migration Suite X

Available to bundle with Service Desk (to provide customer support for VAR community)

X

Available value-add cloud service bundles from Cloud Marketplace X

Ability to increase upsell and attach opportunities X X

Use existing systems for sales motions X X

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Program Objective

Take advantage of the

benefits of the CSP program

Earn additional recurring margin over the

next 12-18 months

Convert existing O365 Advisor seats to

MS CSP

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Program Concept

How Does It Work?

Reseller does not renew

Advisor subscription to O365

Reseller purchases same O365 via Ingram Micro Cloud

Marketplace O365 with SkyKick migration

Ingram Micro performs migration services

Migration tool cost to be jointly funded by Ingram Micro and

the Reseller

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Reseller Benefits

More than double gross margin on O365 subscriptions

sold through CSP (4% Advisor vs. 9.1% CSP)

Increase ~2-4% Net Margin

Annual Renewal “License” shifts to Monthly “Auto

Renewal Subscription”

Take control back of your customer billing and support for

MS O365

Reclaim your business as trusted advisor including

support with your customers on ALL products and services

Ability to bundle and consolidate invoicing5Proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission.

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Case Study – A US Reseller

2,206 Total Seats

Renewing from April 2015

to March 2016 (12 months)

829 Seats of O365 E1 at

$8.00 per seat

1,355 Seats of O365 E3

at $20.00 per seat

22 Miscellaneous seats


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Case Study – Revenue and Margin Analysis

$-

$50,000

$100,000

$150,000

$200,000

$250,000

Year

1

Year

2

Year

3

Year

4

Year

5

CSP GrossMargin

Advisor GrossMargin

All data in the table is

cumulative each year

So, year 2 totals represent

the sum of years 1 and 2

Year ACV Revenue

Advisor

Gross Margin

CSP

Gross Margin

Per

Seat Delta

1 407,804 209,104 8,364 19,039 4.84

2 815,608 616,672 24,667 56,147 14.27

3 1,223,412 1,024,240 40,970 93,256 23.70

4 1,631,217 1,431,808 57,272 130,364 33.13

5 2,039,021 1,839,376 73,575 167,473 42.56

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Issues / Barriers Tenant-to-tenant migrations are

complex and require

automation and monitoring

End customers must have

minimal impact

Partners must be ready to

support recurring billing and

Level 1 customer support

Partners must engage and

manage customer expectations

roundtable: office 365 advisor to csp conversion

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