Ambition Mission

Microsoft will be launching a program on March 3rd called Open Value Subscription (and yes licences purchased under this program can be part of the Big Easy promotion).

Basically, this is Microsoft’s “lease” program for software.  I will explain the program in terms of a customer buying Office Profesisonal:

 FORGIVE ME IF THE NUMBERS ARE OFF - THIS IS JUST TO ILLUSTRATE THE PROGRAM

via OPEN license - customer pays ~$440 now & gets to USE the license forever, etc…

via OPEN VALUE license - customer pays ~$290 now (which is 1/3 the license + SA cost), $290 in a yr, $290 in 2 years and then ~ $110/yr forever to keep benefits

via OPEN VALUE SUBSCRIPTION - customer pays ~$180/yr forever to keep USE RIGHTS & Benefits

Here are some other goodies:

1. If the customer has Office Pro already EVEN IF OEM (current version or 1 version back) then the FIRST YEAR payment is only ~$90/license
2. If the customer starts off with 15 PCs, then within the next year, they add 5 more, they can install software and won’t have to pay for 20 until a full year after the agreement started.  This also works down, if the client looses 5 staff, then on the anniversary date they would now only pay for 10 licenses.  (this is trued up or down annually)
3. It works out to be ~$10 more per license to make the desktop “Company wide” which will encourage more of Windows upgrade licenses and fewer license violations and less headaches with needed upgrades (or downgrades)
4. OVS licensing is avail for Office Pro, Office SB, Core CAL, SBS CAL, Windows Upgrade, plus SB Desktop Suite & Desktop Pro Suite

 Microsoft has Partner Lice Meeting sessions to learn more:

• Jan 10th 9:00-10:30 AM PST
• Jan 17th 9:00-10:30 AM PST
• Jan 23rd 8:00-9:30 AM PST
• Jan 29th 11:00-12:30 AM PST
• Feb 6th 8:00-9:30 AM PST
• Feb 14th 9:00-10:30 AM PST
• Feb 19th 1:00-2:30 AM PST
• Feb 28th 9:00-10:30 AM PST

visit  http://www.msreadiness.com/newopenvalue to register or for more info.

Email me if you want the slidedeck for more info! 

Happy Selling!

Attention all Microsoft Partners!  Want $$$$ from Microsoft?  Here you go!!!

Microsoft is about to roll out an enormously, broad incentive to all Partners called the Microsoft Big Easy Promotion.

• Valid for all partner levels! (registered, certified, gold)
• money for practically any licensing purchase! (Open Company Wide will get you more $ than normal Open)
• all products! (will get more $ when customer buys different types of products)
• all product versions! (will get more $ selling Advanced vs. Standard Server)

 I think Microsoft was sick and tired of hearing Partners complain that they never get anything from Microsoft and that the incentives are too specific and too complex to understand, and that it doesn’t fit their perticular niche, etc.. blah blah blah… so here it is, no excuses.  Every Microsoft Partner should get money from Microsoft on this one.

The Microsoft Big Easy Promotion will be for purchases made from 2/1/08 through 6/27/08 (end of Microsoft’s fiscal year).  More details can be found at http://www.msreadiness.com/bigeasy along with webcasts Microsoft is conducting to explain this, well BIG subsidy promotion.  Webcasts begin next week on 1/23/08 so visit the site today!

Good luck and happy hunting!

Matt

I am happy to announce that I will be a featured speaker at this Spring’s SMB Nation event here in NJ at Montclair State University.  The conference will be focused upon Response Point with some business sessions, such as a 3 hour content filled session from yours truly:

use promo code AMBITION

Session BIZ1-NY: How to SELL managed services!
OK, so you know WHY you should be selling managed services, but do you know HOW? In this information packed session, you’ll learn from the expert - Matt Makowicz, a guy who grew his IT practice from a one man shop and has been selling managed services for the last five years before recently writing a book on the subject and dedicating himself to training others to do the same. You’ll take away techniques that can be implemented immediately such as how to handle common objections when presenting service contracts, building value and presenting agreements to compel prospects, and of course, how to convert existing hourly clients to your new offering! The specific outline is:

Register today at www.smbnation.com use promo code AMBITION

In talking with hundreds of Partners in the last few weeks both in the Ambition Mission Community and around the country at events, goal setting seems to either be a lost practice or a “I should have one but keep it to myself” activity.

Successful people are different from unsuccessful people in the fact that successful people actually set goals.  Sometimes the process of setting goals and the resulting actions they dictate are more powerful than even achieving the goal itself.   It is for this reason that I promote a 3 tiered goal setting approach which is called Must Do, Should Do, Could Do.

The Could Do is the real stretch goal - you know the one you’re afraid to tell people because they may laugh at you.  (which means it is set appropriately)

The Should Do goal is based upon YOUR past performance and capabilities with one added ingredient - consistency!

The Must Do is like a contingency plan when striving for the Could Do.  Sometimes life happens.

Finally, goals should be S.M.A.R.T.

Specific (more specific goals are more likely to have daily actionable tasks and therefore more likely to be accomplished.)

Measurable (you and others must be able to KNOW when the goal is achieved)

Actionable (without action, the goal is merely an empty dream)

Realistic (think of hours in the day, not merely what has been done before)

Timely (depends upon the lenght of the goal)

So a Happy New Year to all, and to all those setting goals for 2008 - “Think Big.”

What a great crowd in Cleveland at the TS2 seminar event yesterday!  Lots of good questions and great table side discussions about getting started with managed services, how to convert existing customers who are not so eager to move away from time & materials, what tools make the most sense to use, and much more!

I also had the pleasure of having lunch with my good friend Terry Soltzberg who owns a very successful IT practice in the Cleveland area and is on the board of the Cleveland IAMCP.  If you’re not already aware, the IAMCP (International Assoc. of Microsoft Certified Partners) is a tremendous organization to be involved with to foster solid business relationships with other complimentary IT providers.  As past president of the chapter in NJ, I can atest first hand for the business that can be gained from such a group. 

The IAMCP has close to 40 chapters nationwide and is in approx 30 other countries as well.  Membership is open to Microsoft Partners of ALL LEVELS, and costs $125/yr or $199/yr depending upon your partnership level.  It’s a great investment in your business.

Be on the look out for an event (or several) with the IAMCP chapter(s) in Ohio focusing upon managed services training in early February.  More to come later!

Hope to see you at the TS2 events in -
Tue 12/11 -Columbus (Power Series event) = 8:00 AM start of TS2, 1:00 PM MS101 begins
Thurs 12/13 - Cleveland (TS2) = 1:00 PM start
Tues 12/18 - D.C. (Power Series event) = 8:00 AM start of TS2, 1:00 PM MS101 begins
Thurs 12/20 - Greensboro (TS2)  = 1:00 PM Start

I hear the footsteps of the 800 lb gorilla!

One of the partners I work with in South Florida sent me a link to a CRN about DELL getting closer and closer to offering what will appear to be directly competing with the small IT provider.

Take a look!

Re:  Dell’s recent aquisition:

Among its products are … an IT Support Services package, which the company bills as a comprehensive offering of remote, desktop management solutions.

Dell executives say the company is working to announce a new, comprehensive channel program by year’s end.

So maybe DELL is just looking to offer more services THROUGH partners in a “Microsoft like” partner program???

Or maybe not…

A Dell spokesman said the … company would continue to provide … technology to managed service providers and resellers through its upcoming channel program, but that Dell would also deliver the products and technology directly.

Here’s what I say, Bring it on DELL!  An IT provider who delivers proactive services can protect themselves with a packaged set of offerings and a trusted advisor relationship with the clients.  As for those providers who may not have yet adopted a proactive approach to services by the time DELL (and others) offer proactive IT services directly to end clients, be very afraid.

As for the rest of us who get it and know that our success (and survival) depends upon our adapting to offer proactive services, I say I hear the footsteps of the gorilla approaching and I am not afraid.  The gorilla will have more than enough to do picking off the low hanging fruit - the clients of break/fix T&M/block of hour providers.

if you haven’t yet read “Who Moved My Cheese” it may be time to pick that book up, because the cheese is moving!

click this link to see the full article: http://www.crn.com/managed-services/203101109

(Thanks to Richard Blanco from Miami for bringing this article to my attention)

At the TS2 event today in West Palm Beach, several attendees were scribbling furiously when we went through a scenario to help convert a break/fix customer to a managed services contract.  Here is the example, and it’s just one of many methods to help the client make that jump… Susie = Office Manager & IT designee; Joe = Business Owner, last year Joe spent $4,000 on his IT support and now we are proposing a full service, comprehensive managed services offering for $1,000/mo.  It is an $8,000 increase in what he paid last year.  Or is it?

Salesperson: “Joe, how many hours per day does Susie spend working on IT problems?”

Joe: “I wouldn’t say it’s every day, but probably about 2 or 3 hours per week.”

Salesperson: “and how much do you pay Susie?”

Joe: “$40,000 per year.”

40,000 x 1.35 = $54,000 (35% is for payroll taxes, heath benefits, etc… that reflect costs of having an employee), $54,000 divided by 52 weeks in a year and then divided by 40 hours in a week is just about $26/hr.  Susie spends 2.5 hrs per week times 52 weeks = 130 hours.  130 x $26 = $3,380.  (do math with customer)

Salesperson: “So Joe, it costs you (the company) $26/hr for every hour that Susie works and based on the time she typically spends on IT issues, it actually cost you $7,380 for IT support last year, because we’ll have to add the $3,380 to the $4,000 that shows up on your P&L.”

Joe: “Wow!”

Salesperson: “it get’s better.  What’s your company revenue and how many total employees do you have?”

Joe: “$20 million with 20 employees.”

Salesperson: “So, it is fair to say that since everyone’s roll is vital to the success of the company, each employee is effectively responsible for $100,000 in revenue for the company.”

“$100,000 divided by 52 weeks, divided by 40 hours = just about $48/hr - that’s what Susie makes your company for every hour she works, which is great because she only costs you $26/hr.”

“but since she was working on IT issues for 130 hours, the company lost $6,240 in revenue.  Add that to the total we had before, and IT support last year ACTUALLY cost your company close to $14,000!” 

Joe: “Holy *&%!” 

Salesperson: “and I’m not even adding in the amount of time Susie spent managing vendors, other employees downtime when Susie was “fixing” their issues, etc… so you see, the $1,000/mo is ACTUALLY saving you money.  Plus you’ll have less downtime, more reliability, more productivity, more efficiency - and you get all of Susie back!  It will be like you just hired a PT person.”

Joe: “I’ll take it!”

P.S.  I have always done this type of analysis “on the fly” with a prospect as if it something I just thought of doing with them at that time.  That technique has always proved very effective for me.  If you like to have it more formalized and structured, then Erick Simpson and MSPU developed a fantastic Excel Spreadsheet that helps illustrate this point and more for presentation to the client.  The spreadsheet is available on the CD-Rom of his first book and as a member of MSPU.

Lesson for today:  Don’t underestimate the power of a free t-shirt!

So, at the Miami TS2 event this afternoon, there were lots of attendees who wanted to grow their businesses.  We had “ah-ha” moments all over the place and the feedback was awesome. 

Something blog worthy occured at the end of the event.  Set the scene—at the end of the event, I waited at my table for the last few people who wanted to buy my book and sign up with Ambition Mission Community.  I shared the table with the Miami user group that was giving away free t-shirts at the end of the event.  So after partners announced thier successes after reading my book and attending my seminars (activities that I promote as being worth $100K or more), where do you think the line was at the end of the event? 

The clamoring and agressiveness shown to get a t-shirt and passing by my table, to me puts the value of the t-shirts around $100,000. 

I will be at the TS2 events in Miami and West Palm Beach tomorrow and Thursday.  If you’re in the area, stop by and learn how to grow your business.  Register at www.ts2seminrs.com