How to Make Money Around Microsoft Office 365

How to Make Money
Around Microsoft
Office 365
A Guide to Generate New Revenues for
Solution Providers, Integrators, VARs, and
Services Organizations
Taking Command of Office 365
The concept of the “desktop” is forever changing, and Microsoft and Office 365 have
accelerated that change. Everything about desktop applications is dramatically transformed
from static applications delivered on-premise to desktop and laptops. Today, users access a
more dynamic and amorphous grouping of applications; employing a myriad of end-point to
devices. These applications are hosted and delivered via ‘the cloud’ – and the corresponding
data is stored and managed on the cloud, as well. The market understands how Microsoft
makes money. The question is how can your company make money around this new market
There are five revenue generating opportunities around Office 365: Assessments, Proof-ofConcepts, Migration Services, Microsoft Fees, and Building Value-Added Services. This paper will
capsulize the first four opportunities and focus on this concept of building value added services.
Developing a Strategy for Office 365
Almost every organization needs to develop a strategy to incorporate Office 365 into its
operations. The appropriate methodology to develop this strategy is to: 1. Assess its current
environment versus the environment of its future; 2. Implement a Proof-of-concept to validate its
findings; 3. Develop a migration strategy; 4. Migrate to Office 365; and 5. Manage its new
applications. Organizations that fail to follow this methodology will also fail to maximize the
potential productivity and efficiencies offered by Office 365. Office 365 is not just a new way of
accessing Microsoft Office and Exchange (email). Office 365 includes an opportunity to
integrate website development; Office web applications; Instant messaging, presence, and
conferencing; File Sharing; Managing Projects, Collaboration; and Mobility – in a more secure
environment. And, partners of all types can benefit from helping their clients navigate this new
The channel has devalued assessments and proof-of-concepts over the past two decades –
often performing assessments for free – in order to sell commoditized products and services
(usually at lower margins). Most assessments around Office 365 can be delivered remotely at a
very low cost to the partner. Microsoft has developed programs that are “fee-based” to allow
partners to deliver these assessments and proof-of-concepts at little or no cost to their clients
and still generate new revenues.
Migration services offer real value to clients and, therefore, command new opportunities to build
service revenues around Office 365. Migration services in the SMB market range from $5,000 to
$25,000 per client (200 – 1,000 users). Migration services to larger and enterprise organizations
command upwards of $25,000 - $80,000 (1,000 – 5,000 users).
Partner fees from Microsoft for Office 365 are 21% for the first year and reoccurring fees of 4%.
Microsoft may allow partners to resell Office 365, but those margins will be 14% unless further
discounted by the partner.
Building Value-Added Services with 365 Command
As more and more companies adopt Office 365, they will face greater pressures to reduce the
complexity and costs of managing Office 365. This is the area that affords partners and providers
an opportunity to build value-added services around the management of Office 365 for clients.
The keys for your organization is the ability to eliminate the administrative burden of managing
Office 365; provide an affordable, reliable, and secure cloud management platform; deliver
services by being fully mobile to manage on the go, and provide detailed reporting and analysis
of your clients’ Office 365 environments.
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Taking Command of Office 365
365 Command is the application that allows organizations to easily manage and gather data
from any device, anywhere, and replaces the command line interface of Windows® PowerShell
with a rich, HTML 5 web interface. 365 Command enables partners to manage their clients’
environments through a single login to perform common administrative tasks and troubleshoot
Partners can provide 365 Command to their clients or use 365 Command and manage their
clients’ Office 365 environments that will generate an ongoing, reoccurring revenue stream—
greatly, enhancing value to clients. Any level IT administrator can administrate Office 365 using
365 Command. Your organization can reset passwords (with options for never expire), set
mailbox permissions, set mailbox folder permissions, set forwarders on mailboxes, create shored
mailboxes, and more – from a simple GUI. Organizations can deliver reports with a click of a
button with detailed charts and graphs that include mailbox sizes, archive sizes, quota usage,
mobile devices, mailbox permissions and more.
Make money in three ways – A partner can resell 365 Command; a partner can perform the
tasks with 365 Command for their clients … managing Office 365 for their clients; or hybrid
Command 365 – resell it to their clients and manage Office 365 using Command 365 as the tool
and reporting mechanism.
The delivery of applications and data to users has changed forever – and will continue to
change. The traditional revenue streams for partners are changing as well. The challenge for
partners is to recognize and seize new revenue opportunities in this new market paradigm. What
will be the ultimate market share for Microsoft and Office 365? And, how can partners share in
the revenue opportunities created by this market shift? Finding new applications and tools, like
Command 365, is one vital key to the future of cloud applications and to the success of partners.
Learn more by visiting or call 877-788-1617.
MessageOps• 791 Park of Commerce Blvd., Suite 200
Boca Raton, FL 33487
Phone: 877-788-1617
Fax: 561-997-4043
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