Ambition Mission

SMB IT Providers are about to be bombarded with invitations to the 2008 conferences.  This is actually a good thing, in fact a very good thing. 

Choice is good!  It was only 4-5 years ago when the pickings were slim, in fact there was really only one, SMB Nation (www.SMBNation.com).  A few years ago, Microsoft took an idea from Harry Brelsford’s playbook and decided to do a pre-day conference to the World Wide Partner conference and the Microsoft Small Business Symposium was born.  (no link yet - this link goes to the 2007 WPC http://www.microsoft.com/partner/events/wwpartnerconference/).  Then, out West was born a great collaboration of SMB companies and the SMBTN was formed along with the SMB Summit, now in its 4th year (www.SMBSummit.com).  But that’s not all!  Industry guru Jeff Middleton, creator of the widely popular swing migration, decided to put on a different type of conference and 2008 will see his second conference (www.SBSMigration.com).  Other organizations, such as the ICCA, are in a resurgence and are having an SMB focused conference in 2008 as well (www.ICCA.org). 

So many choices!  What is an SMB IT provider to do?  What conference is going to hold the most value?  What conference should you attend?  Most smaller SMB IT providers can usually only budget for one, unless there happens to be another in their backyard.  Even larger players in the SMB space are confused, though deciding what the “deal & feel” for each event will be and trying to determine where to best place their conference budgets.So, for what it’s worth, here is my two cents on the “skinny”, the “deal” and the “feel” of each event.  Of course, because I am focused on helping and training Partners, I will be at all of them - with different content, different focuses, etc.. all aimed with a different attendee in mind. 

So here goes, I hope it proves helpful:In order of the date the conferences occur (you can also check out the www.AmbitionMission.com/events for more info):

• SMB Nation (East) - NY/NJ March - SMB Nation is the original.  The 3rd annual East derivative of this conference with approx 200+ attendees is geared to “sbsers,” IT consultants and SMB IT providers looking to grow their business.  The event in NJ will have business sessions and a ton of info on Microsoft Response Point, which if you haven’t heard, is Microsoft’s phone system for the SMB Market.

• SMB Summit - Dallas, TX April - the 4th annual conference is shaping up to be a tremendous event.  The focus is two fold for this 4 day conference - the first 2 days are all about Cougar (next version of SBS) & Centro (a mid market version of SBS).  - the last two days are all about business sessions.  One Man shops be warned, a lot of the sessions are geared to IT providers with 3 + employees.  Expect about 500+ partners in attendance.

• SMB Nation (East) - not a typo - in early May, SMB Nation East is in Toronto.  This conference will likely be very similar to the one in NJ with one significant difference - no Response Point (it’s not available in Canada yet).  Our friends in the Great White North don’t get conferences up there too often, especially focused on SMB so I am expecting more than the 200+ attendees than in NY/NJ.  This will be a mostly business focused conference and I’m looking forward to seeing what is all abooot.  (couldn’t help it)

• SBS Migration - New Orleans - May.  Jeff Middleton is not a fan of the normal power point session lecture style conference.  Expect a lot of interaction learning from experts with experience.  This is an intimate (and fun - hey it’s in New Orleans) hands on conference with from 150+ in attendance.  As an added bonus, after the 3 day conference, expect about 1/3 to 1/2 of the attendees to board the Carnival Fantasy cruise ship for another 5 days of interaction with fellow SMB providers and a daily conference session on the ship.  I was disappointed I missed the inaugural conference last year, and have heard all good things and after extensive conversations with Jeff, I know this will be even better.

• ICCA - Washington, DC - early June - I am just getting to know this organization and have spoken at some of their Chapter meetings.  The “Independent” part of the name suggests that this conference will be attended by approx 200+ one man shops looking to grow.  The ICCA is serious about its membership so this should be a valuable event.

• Microsoft Small Business Symposium and WorldWide Partner Conference - Houston, TX, July - this is the big one.  WPC is 3 days preceded by the SB Symposium which is a full day.  While WPC is over $1,000 to attend, the SB Symposium is free to SBSC partners (at least it has been the last 2 years).  WPC will host 15,000 attendees representing 5,000+ partners from around the world.  The SB Symposium reaches the 600-1000 attendee marks.  While some SMB IT providers come in town for the Symposium and then split, I think the WPC is one of the best conferences to attend because you get a chance to see a lot more than you’re used to and meet partners who were small once too… It’s expensive, but I think worth it.  Register early for savings (a good tip for all conferences btw).

General conference tips:

• Come early stay late - plan on arriving the early part of the day prior to the first day - there is always something valuable going on.  There is also always something fun and valuable the evening after the last session.  (hint - don’t book an early morning flight - 11:00 AM should be the earliest)
• Plan ahead - get an idea of sessions you don’t want to miss and put them on your calendar with reminders before arriving in town.  You will get engrossed in fantastic conversations with other partners in the “hallways” of the event that you may miss sessions you were looking forward to (most are NOT recorded for later viewing)
• Get a room mate - this cuts your hotel bill (one of the largest travelling expenses) in half
• Bring LOTS of business cards and notebook paper - also develop a system and put time in your schedule upon returning from the conference for the follow up you’ll want to do - otherwise your investment will be (at least partially) wasted
• Listen more than you talk - ask partners questions.  People love to talk about their business.  Be willing to share as well.  These conversations will be the most valuable take a ways upon your return home.

Have fun, safe travels, and I will see you at (one of) the conference!Matt Makowicz“Let Ambition Be Your Mission.”

If you’re planning to go to SMB Summit this year in Dallas, GOYA and book your room.  The OMNI Mandalay Hotel, which is a beautiful place normally charges $249 and up for rooms per night but the conference block has rooms for only $149.  So register today for the conference and reserve your room.

Conference registration at www.SMBSummit.com

Room reservations at http://www.omnihotels.com/FindAHotel/DallasMandalay/meetingfacilities/SMBsummit2008.aspx

Good luck and see you in Dallas!

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.