the office 365 opportunity. is it right for msps?

© 2015 N-able by SolarWinds. All rights reserved.© 2015 N-able by SolarWinds. All rights reserved.

The Office 365® OpportunityIs it right for MSPs?

© 2015 N-able by SolarWinds. All rights reserved.

Presented By

Ali MahmoudProduct Marketing

@alimahmoud_


Microsoft® 2013-2014


Microsoft 2013-2014 Revenue (USD)

Product 2014 2013 % change

Microsoft Office system $24,323 $22,995 +5.8%

Windows PC operating system 16,856 17,529 -4.0

Server products and tools 17,055 15,408 +10.7

Xbox Platform 8,643 7,100 +21.7

Consulting and support 4,767 4,372 +9.0

Advertising 4,016 3,387 +18.6

24bn - http://www.microsoft.com/investor/reports/ar14/index.html


Office vs Windows

24.3

16.9

10

15

20

25

Office Windows

Bill

ion

s

24bn - http://www.microsoft.com/investor/reports/ar14/index.html


Office User Base

45 million iPad® downloads

7.1 million Office 365 Home & Pro

1.2 Billion Office UsersRoughly 1 in 6 people on the planet

Users - http://news.microsoft.com/bythenumbers/index.html


Office Users vs Revenue

0.6% of User Base

O365 7.1mn users

Total office users = 1.2 Bn Total office revenue = $24.3 Bn

O365 $2.5 billion USD

10% of Revenue

Users - http://news.microsoft.com/bythenumbers/index.html24bn - http://www.microsoft.com/investor/reports/ar14/index.html2.5 - http://www.channelpartnersonline.com/news/2014/05/partner-enthusiasm-for-office-365-is-rising.aspx)


Challenges for selling Office 365


MSP challenges

1. Microsoft going direct to consumer

2. Low license margin

3. Limited project based revenue


1. Microsoft selling directWhole O365 strategy is to get straight

to the consumer/business

430,000 partners(160mn mutual customers)

50,000Partners selling O365

129%YoY licenses sold by partners


2. Low license margin

MSP cannot mark up or customer goes direct

On-Prem Server Office 365

Consider a hybrid option


3. Limited project based revenue

Microsoft’s migration tools are getting better

One-time revenue

Managed Services

35%

Consulting & customization

66%

Migration & integration

46%


Your core business is still your core business

• A la carte managed offerings are higher revenue and more profitable

• Proactive and fully managed customers are still your strongest source of profitable recurring revenue and high business valuation


Automation Manager

Help Desk Manager

ReportManager

Remote Control

Manager

SecurityManager

Backup Manager

Patch Manager

Audit Manager

Mobile Manager

N-central RMMAn MSP’s complete toolkit


Remote Management Made Easy

www.n-able.com

http://www.n-able.com/


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the office 365 opportunity. is it right for msps?

Technology

nable technologies

ncentral trademarks

exclusive property of

office usersroughly

trademark office

office user base45

office vs windows24

bn total office revenue