A Customer Perspective Growth through satisfaction Happy Customers Buy More

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A Customer PerspectiveGrowth through
satisfaction Happy Customers Buy More
Presentation title goes here, usingSegoe
Regular, in sentence case.
Phil Carrier Licensing Sales Director
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Agenda

• Purpose Intent Role of The Licensing Group
• Building on a firm foundation
• Key focus areas for FY06 and beyond
• What customers have to say!
• QA

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(No Transcript)
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Purpose Intent

• 2 big Bets for MS in FY06
• Make Licensing a positive experience
• Make Security a positive experience
• Grow the Licensing Business.
• Annuity is Key for all segments verticals
• Not move business from partner to partner
• Be a Licensing Channel advocate inside out MS.
• Understand the Customer Partner pain address.
• Focus on all customers (by segment vertical).
• Ensure a competitive focus is front and centre.
• Less Process More Selling!
• Licensing Brains Trust.
• Ensure positive market perceptions.

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Building on a firm foundation

• Channel Strategy
• Closer Business Relationships with Customers and
  Partners
• Build the channel for growth
• Communications Internal and External
• To increase satisfaction within Customer and
  Partners
• Integration with the Corporation Regional Teams
• Skills Training
• Internal within MS
• External with Partners
• Sales Process
• Forums to allow deal discussions
• Effective escalation processes quick decisions
• Customer Strategy
• By Segment/vertical
• Customer information forums with Partners
• Compliance
• New Product Licensing Strategy
• Work with Corporation, Partners Customers to
  address areas of concern

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Customer Study Feedback

• A Customer PerspectiveGrowth through
  satisfaction Happy Customers Buy More

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Study Background

• Global customer satisfaction survey
• Conducted 2004/5
• Account View
• Community View
• Global scorecards/country reports
• Process built to optimise insight and action
  locally

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2005 Australian Sample Profile

• ACCOUNT VIEW RAW WEIGHTED
• Strategic 106 70
• Major 59 34
• Corporate 242 164
• FSI 23 14
• Public Sector 141 92
• Commercial 77 52
• ISV 19 19
• Managed Partners 116 67
• Telemanaged 89 146

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2005 Australian Sample Profile

• COMMUNITY VIEW RAW WEIGHTED
• IT Professional - Total 774 300
• Core 91 66
• Dual 229 104
• Extra Industry 454 130
• Developer 236 78
• Affiliates 594 406
• Small Business 99 118
• Medium Business 68 120
• Information Worker 101 87
• Consumer 105 60

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2005 Australian Sample Profile

• COMMUNITY VIEW ACT NSW NT QLD SA TAS VIC WA
• Strategic 6 49 0 28 0 0 23 0
• Major 14 11 0 0 6 0 10 18
• Corporate 23 52 4 41 25 8 75 13
• Enterprise 43 112 4 69 31 8 108 31
• ISV 1 15 1 1 0 0 1 0
• Managed Partners 10 49 0 15 8 0 20 13
• TeleManaged - - - - - - - -
• ACCOUNT VIEW
• IT Pro (from NMC file) 0 10 0 4 5 0 12 2
• IT Pro (from NMIT file) 10 76 3 41 18 6 60 19
• Developer - - - - - - - -
• Affiliates - - - - - - - -
• Small Business - - - - - - - -
• Medium Business 0 23 0 9 3 1 25 7
• Information Worker - - - - - - - -

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Understanding the Issues
To gain greater clarity and understanding of the
key issues driving satisfaction we looked at two
open-ended response questions

• What one specific improvement could Microsoft
  make that would have the greatest impact on your
  satisfaction with them?
• For each low rating factor Specifically, what
  kind of experiences have you had with Microsoft
  that made you rate them as you did?

• Results have been split these into 4 groups
• Hierarchy of Pain Common Pain
• Customer Verbatim
• Positive Comments
• Areas for Improvements

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Licensing Customer Hierarchy of Pain

• The type of pain organizations experience around
  licensing becomes more complex with the size of
  the company
• Small and mid-size companies are concerned with
  fundamental issues of integration, while larger
  organizations are concerned with more complex
  issues such as licensing flexibility and contract
  terms
• Companies of all sizes are concerned with larger
  issues around value, financial terms, comparing
  licensing programs and receiving assistance from
  Microsoft

Universal Pain
Common to All
(Overall Value, SA, Financial Terms, Comparing
Licensing Options, Receiving Assistance from MS )
Complex Pain
LORG Specific
(Flexibility of Licensing Program, Level of Trust
in Vendor, Fairness of Contract Terms, Keeping up
with Changes )
Advanced Pain
MORG Specific
(Integrating Systems with Vendor )
Basic Pain
SORG Specific
(Microsofts Knowledge of End-Customer
Environment, Integrating Systems with Microsoft)
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Security
Microsoft is renowned for poor security however,
I believe that this is a consequence of being one
of the worlds largest software providers and
security breaches are specifically targeted at
Microsoft products. My experience is that whilst
Microsoft react quickly to new vulnerabilities,
they are not always able to provide complete
solutions. Strategic
?
Patching is one reason. Their philosophy of
having things open until you shut them, rather
than competitors who have things closed until you
open them. Strategic
I guess because of their popularity they seem to
be targeted more and therefore we seem to have to
do more patch updates etc. Strategic
Trick question right? How about having to
continually patch the OS and Office products.
Trying to keep on top of this in a 2700 seat
organisation is 'fun'. Corporate
Known holes/bugs take time to get fixes rolled
out across our network. Strategic
In general, third-party products are required to
try to prevent infestations from viruses, worms,
trojans, key-loggers, browser hijackers, and
other malware. Strategic
Numerous incompatible patch methodologies within
product sets cause maximum confusion. Corporate
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Licensing
Still too complex. The seemingly constant change
to the Usage Rights and the effect this has on
licensing. The requirement to re-purchase
technology (search facility in Site Server
reappears in SPPS at additional cost). Major
?
The licensing programs seems to change every
three or so years and the options available are
not easily understood. Strategic
Totally inflexible if you only want to use a
small part of a large product bundle eg. SQL
Report Services would still cost us 35k per
processor. Strategic
Price aside, Willingness to work through
issues, adapt to needs, flexible and product
managers advice on how to purchase upgrade
products. Minimal fuss where we have had
difficultly tracking PCs and software. Corporate
Too expensive, unattractive terms, too frequent
product upgrades with little value to the
customer, no license upgrade as per old scheme
just means that we are less likely to move to a
newer product. Corporate
It is over-priced. It costs a lot of money and
is hard to understand licensing and obligations
of licenses. Get flexibility in licensing models.
Mostly it is about the cost and complexity of
licensing. It is too hard to understand and is
too extensive. Corporate
The flexibility of options are pretty good.
Also, the way it's presented is reasonably clear
with what you're provided. Corporate
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Pricing Issues
'Inflexible licensing programs. Licensing is
built to suit MS and not the customer
'when you compare product pricing with other
products on the market, they are very competitive
?
'Why would I pay 1000 for Office XP when I can
get 70-80 of the same features for free in
OpenOffice? Most people don't use anywhere near
the full feature set of Office, and so are paying
a lot for features they never use
'Microsoft is generally cheaper than most of the
competition but we have to do a lot of work to
stabilise some of the products
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Power to the Licensing Partner

• A recurring theme is that the licensing partner
  relationship is a significant driver of overall
  Customer Satisfaction.
• What can we do in our business relationship
  together to maximise these thoughts?

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The Positives from Customers

• Customers are over licensing 6 changes.
• They like the SA Benefits (if they are made aware
  of them!).
• Customers with EAs are usually happier than
  transactional customers.
• Those customers who have bought into the MS Stack
  get the most value and can do things quickly.
• Customers like our position on hyper threading
  and Multi-core CPUs.
• Customers like the MVLS website.
• Microsoft is becoming more flexible and is
  willing to listen and respond.
• Customers with Support agreements are happier
  than non-Supported customers.
• MM customers like having the ability to spread
  the payments under OLV
• Customers in general feel we are cost effective.

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Areas for improvement are

• Large agreements with lots of pages lots of
  signatures.
• Few Competitive Upgrades.
• Transparency around international agreements.
• We need to show flexibility without it appearing
  complex.
• Software licensing is still too confusing to
  some.
• Terminating Pools under a Select Agreement is
  hard/complex.
• Still question the need for a Channel Partner.
• Feel few people can articulate the holistic
  licensing picture.
• Pricing an issue sometimes (But we are more
  flexible now).
• More regular informed contact needed from
  MS/Partners.
• Little joint engagement from MS partner once
  agreement is signed.

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Call to Action

• If you want a session to discuss
• Your customers Licensing Satisfaction
• How we can work together to improve it
• Please email me
• Philca_at_microsoft.com (copy your Acc. Mgr.)
• Please remember..

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Building on a firm foundation

• Channel Strategy
• Closer Business Relationships with Customers and
  Partners
• Build the channel for growth
• Communications Internal and External
• To increase satisfaction within Customer and
  Partners
• Integration with the Corporation Regional Teams
• Skills Training
• Internal within MS
• External with Partners
• Sales Process
• Forums to allow deal discussions
• Effective escalation processes quick decisions
• Customer Strategy
• By Segment/vertical
• Customer information forums with Partners
• Compliance
• New Product Licensing Strategy
• Work with Corporation, Partners Customers to
  address areas of concern

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Thank You

• QA