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FY22 – SMB
Global Partner Solution
Strategy
Directions EMEA 2021
Justine VendrameWW SMB Channel lead for Business Applications
Microsoft Business Applications
Partner Confidential. Not for
External Use.
Agenda
FY22 Sales Play
Partner Strategy
Resources
SMB opportunity
Activate Digital
Selling
FY22 Sales Plays – Business Applications
Customers buy solutions, not products.
By grouping products into customer-centric
solutions that align to business outcomes,
we lead with addressing the customer’s
needs instead of leading with product
features.
Enable Always
On Service
Personalize
Customer Experience
Connected
Commerce
Optimize Financial
and Operating
Models
Discover Business
Insights
Rapidly
Build Apps
Build a Resilient
Supply Chain
Automate Business
Processes
Sales Play
A customer conversation that paints a vision
on how the customer can achieve better
business outcomes through a set of scenarios
Use Cases
An area of the core business process that
enables the customer to solve a specific pain
point to achieve their desired business
outcome
Microsoft Product
Is the lead product that delivers capabilities
to enable a specific business outcome
Small and Medium Businesses Key Heroes
Sales Play Overview
Data &
Intelligence
Fraud
Protection Marketing
Customer
Service
Customer
Voice
Field
Service
Customer
Insights
Connected
Store
Guides
Product
Visualize
Remote
Assist
Project
Operations
Supply Chain
Management
Commerce
Human
Resources
Finance
Power
BI
Power
Virtual Agents
Power
Automate
Power
Apps
Sales
Business
Central
Business Central drives better alignment of business
operations across the entire company – Including
financial management, sales, service, projects, supply
chain, warehousing, manufacturing, and distribution
with solutions that are easy to deploy, simple to use
and are cost-effective
Sales Professional empowers customers to increase
business agility, boost seller productivity and build
better customer relationships with a modern
solution that is easy to deploy and works inside other
Microsoft products
Power Apps allows organizations to modernize and
innovate faster, to eliminate inefficiencies and solve
challenges across any part of the business
Single product foundation
Dynamics 365 Business Central
Enhance through the sales play
Use Case: Maximize Financial
Visibility and Profitability
• Dynamics 365 Business Central
• Dynamics 365 Power Apps
• Microsoft 365 Teams
Expand across sales plays
Use Cases: Maximize Financial
Visibility and Profitability, create
holistic view of customer and build
solutions at scale to support every
line of business
• Dynamics 365 Business Central
• Dynamics 365 Sales Pro
• Dynamics 365 Power Apps
• Dynamics 365 Power Automate
• Dynamics 365 Power BI
• Microsoft 365 Teams
Optimize Financial and Operating Models
Connect use cases to grow opportunity
Regular
Sale
+4.5X
+11X
Microsoft internal Research. Percentage increases based on Average Deal Size based on FY22 Pipeline. It’s an approximation for example purpose.
Agenda
FY22 Sales Play
SMB opportunity
Partner Strategy
Resources
Business Applications total addressable market in SMB
79,000,000total accounts
$42.4BBy 2027 Is the forecasted
value for the Cloud ERP
market. Business Wire
Top UnmanagedEnterprise look-alikes
544K accounts1
Medium Business25-300 employees
6.4M Accounts
Small Business10-24 employees
6.3M accounts
Very Small Business1-9 employees
66M accounts
1Includes – (1) User based (300+ employees) = 340K accounts; and (2) Compute based ($10K ACR 3-year potential) = 218K accounts
Microsoft Business Applications Partner
Confidential. Not for External Use.
Optimize Financial and Operating Models partner
opportunity
Cloud Market Opportunity Services Opportunity
$16-to-$1Service Revenue to
Licensing Margin ratio
2020 2024 projected 2024 projected
$24 Billion1
Service-
Centric ERP
$496 Billion2
Service-Centric ERP
$31 Billion1
Service-Centric
ERP
Microsoft Business Applications Partner
Confidential. Not for External Use.1Microsoft internal research, 2020 2Forrester TEI, 2019 and Microsoft internal research, 2020
2023 projected
$582 Billion2
$116BDigital Selling
Activate Digital Selling partner opportunity
Cloud Market Opportunity Services Opportunity
$7-to-$1Service Revenue to
Licensing Margin ratio
Microsoft Business Applications Partner
Confidential. Not for External Use.
2023 projected
$194 Billion1
$55BDigital Selling
2020
$104 Billion1
$31BDigital
Selling
1Microsoft internal research, 2020 2Forrester TEI, 2019 and Microsoft internal research, 2020
Rapidly Build Apps an unparalleled opportunity
$51BLow-code apps
TAM 2023
3xServices
Opportunity
2xRevenue
Growth YoY
700+ Partner Solutions on Marketplace
Sources: Microsoft internal research, 2020
Microsoft Business Applications Partner
Confidential. Not for External Use.
Agenda
FY22 Sales Play
SMB opportunity
Partner Strategy
Resources
Get onboarded in the Partner Business
Central Journey
LAND | EXPAND | REALIZE
Build capability, increase capacity and accelerate go-to-market.
Understand the partner value
and opportunity
Build and reinforce your Business
Central Practice
Build a Practice content >
Build and Publish Your Offer
Create repeatable offering and
publish it on AppSource
Visit AppSource > Leverage Microsoft Programs
Learn more about Microsoft
programs eligible to Business
Central Partners
Skill your Team and hone Your Competency
Get you technical team trained and certified
Explore certifications >
Zoom-in strategic lead generation motions
Grow customer acquisition landing lead
generation campaigns and navigating through
new routes to sell
Learn more>
0103
05
02
04
1 | Understand the partner value and opportunity
For each Sales Play, we provide assets
to enable you to activate this
opportunity with your customers.
• To-Partner Assets: Resources to help
you and your team understand the
practice opportunity and skill your
sales team
• Thru-Partner Assets: Resources to
accelerate your time to market, lead
generation, including BDM and TDM
pitch decks and prospecting resources
Visit the Sales Play pages on the Dynamics
365 Partner Hub
Partner Opportunity
and Sales Card Financial Models
Evidence of SuccessCustomer Pitch Decks
Financial Models Zoom-in
year 1 year 3 year 4
12 36 48
Resourceing (FTE's) year 1 year 3 year 4
Demand Generation Marketing 1.0 1.0
Business Analyst 3.8 7.5
Average D365 Deal Size (Full Users) 8 Customer Success Manager 1.0 2.0 2.0
Average D365 Deal Size (Limited Users) 10 Onboarding Specialist 2.0 5.0 6.0
Business Development Rep 1.0 1.0 1.0
Upfront Project Fees (new) $27,000
Ongoing Annual Project Fees $12,000
Dynamics 365 Subscription Fee (Full) $70 5% 3 $1,000
Dynamics 365 Subscription Fee (Limited) $8 Other Fixed Investments year 1 year 3 year 4
Initial Own IP Subscription Fee (Average) $35 Other R&D
Upsell Own IP Subscription Fee (Average) $25 Training
ISV Subscription Fee (Average) $50 Incremental G&A
End User Support Fee (Average) $30
Dynamics Base Margin* 22% 10%
Dynamics Base Incentives 4.75%
Dynamics Product Accelerators 5.00% year 2 year 4
Dynamics Customer Add Incentives 20% 10% 20%
Upfront Project Fee Margin Sharing 20%
End User Support Margin Sharing
Partner IP Margin Sharing 55%
Cloud Services Manager $90,000 5%
Business Analyst $75,000 Maximum Users/CSM 600
Customer Success Manager $65,000 Maximum Customer Adds/BDR 100 year 1
Developer $80,000 Annual Utilization Hours 1,090 Revenue $377,914
Onboarding Specialist $55,000 Deployment Hours/Seat 7 Contribution Margin $3,714
Business Analyst BMUR 1.5
Business Development Rep $90,000
Demand Generation Marketing $65,000
* adjust based on your Indirect Provider program
Margin Structure
Annual Delivery Resource Costs
Annual Sales & Marketing Resource Costs
Upfront Partner IP Attach Rate
Upsell Partner IP Attach Rateyear 3
15%
End User Support Attach Rate
Key Operating Ratios
Customer
Add Incentive
year 2
Annual Subscription Churn
$250
Legend
Customer Acquisition &
Retention Variable Costs
Variable
Sales Cost
Cost per
Qualified Lead
Leads to
Closed Deal
Variable Fields (enter appropriate assumption)
Calculated Fields (override with caution)
Dynamics 365
1.3
1.0
3.0
Fee Structure
New Customer Add Metrics
Annual BC Customer Adds24
year 2
year 2
0.5
1.0
P&L Impact
Recommended Working Capital
$100,000
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
1 2 3 4
Year
Revenue Composition
Managed Services
Solution Delivery
Own IP Subscriptions
Dynamics 365 Subscriptions
© Partner Economics 2020. All rights reserved.
Calculate your Business Value Impact
Key Business variables
P&L Impact Detail
Cash Flow Impact
Deal Anatomies
Users
Financial Models Zoom-inNEW: Power Apps
Key Business variables
P&L Impact Detail
Cash Flow Impact
2 | Skill Your Team and hone your competency
Do you have the skills for Optimize Financial
and Operating Models? Try our role-based
certifications
Set yourself apart by demonstrating depth and
credibility with our new SMB Cloud Competency
and Advanced Specialization
Dynamics 365 Business Central Functional
Consultant Associate (Exam MB-800)
Small and Midmarket Cloud Solutions
Competency
Additional Certifications:
• Dynamics 365: Finance and Operations Apps Developer
Associate Exam MB-500
• Dynamics 365: Finance and Operations Apps Solution Architect
Expert** (Exam MB-700)
• Power Platform Functional Consultant Associate (Exam PL-200)
• Power Platform Developer (Exam PL-400)
• Data Analyst Associate (Exam DA-100)
Small and Midsized Business Management Advanced
Specialization
Microsoft Low Code Application Development
High Volume Capability Framework
3 | Build your offeringFixed Price, Fixed Scope, Fixed Timeline
Join Directions Session ‘8 Capabilities Needed to Double your Customer Ads’
START NOW: 8 Step Learning Path to
Accelerate your practice
Case Studies
Focusing on a
Specialization or
Industry
Creating
Differentiated
Solutions
Packaging and
Pricing Offers
Generating
Demand
Accelerating Virtual
Sales Cycles
Fast-Tracking Time
to Value
Increasing
Customer Lifetime
Value
Driving Scale
and Growth
Differentiation
Buyer persona
definition
Sales and marketing
process map
Demo plans
Remote sales
enablement video
asset identification
and development
Repeatable emotional
proposals, presentations
& SOW
Alignment emails
Engagement plans
Identification of core
industries focus and
market segmentation
Market segmentation
Vertical industry GTM
Value proposition
definition
IP prioritization map
Software subscription
offers
Risk reducing,
compelling migration
offers
Prioritized asset
development plan
Website engagement
optimization
Fixed price
quick start
implementation
packages
Leveraging of time
saving ISV tools to
accelerate migration &
implementation
Next best offer
identification
Land and expand
motion
Defining
customer success
engagement rhythm
90, 60, 30 day
renewal plan
Measuring
and providing
outcomes
Case study motion
Emotional messaging
framework
Fixed priced, outcome
quick start offers
Customer success and
optimization
subscription service
offers
12-month nurture
content calendar
Marketing campaign
development
Proactive
customer support
and optimization
subscription services
Process streamlined
P2P channel strategy
AppSource and
Azure Marketplace
Optimization
Expand into new
markets and new
solutions areas
3 | Build your offering
What Business Central
partners have to say
about their experience
with Neural Impact
4 | Zoom-in strategic lead generation motions
Better Together
Campaign & Partner
to Partner Model
NEW Business Central to
customer campaign
Start with
identifying
whom to target
with our
predictive model
Cloud Ascent
What:
SMB Predictive Models, AI and ML driven models using hundreds of signals.
D365 – Propensity is available for D365 Finance & Operations, D365 Business Central, and
D365 Sales Pro soon to Power Apps
• Key Customer Attributes
• Salesplays
• Customer Propensity
• SMC Type Summary
Why:
Identify intelligent
leads with deep
insights
How:
Login into Partner Center > Insights
> Customer opportunities > Download
> Select the Report ‘D365 propensity >
Generate
Cloud Ascent
4 | Zoom-in strategic lead generation motions
Better Together
Campaign & Partner
to Partner Model
NEW Business Central to
customer campaign
Start with
identifying
whom to target
with our
predictive model
Cloud Ascent
Better together campaign
There’s no better time to sell Dynamics 365
~2% 35% 84% 2x
2%
penetrationMicrosoft 365 customer base
with Dynamics 365
35% YoY
growthCapture your share of the
total 35% YoY Dynamics 365
and PowerApps net
revenue growth
84% revenue
increaseIncrease average revenue
per Microsoft 365 user
(ARPU) by up to 84%
Double Azure
revenueAdding Dynamics 365 doubles
Azure revenue in an existing
Azure customer
Source: Microsoft Cloud Ascent, Internal Microsoft Research
STEP 1
Understand the business
opportunity
STEP 2
Get trained
STEP 3
Generate
opportunities
STEP 4
Work with a
Dynamics Expert
Be inspired by other partners and review partner success stories
Better Together campaign
Partner Action Plan
Cloud Ascent
Business Central Financial Model
[NEW] Power Apps Financial Model
Partner to Partner Opportunity
[NEW] Power Apps Partner
opportunity deck
[NEW] Better Together Video
[NEW] SMB All Up Business case
template
[NEW] Dynamics SMB All Up Messaging
and Positioning Framework
[NEW] SMB Partner Pitch Deck All Up
Dynamics
[NEW] Power Apps conversation guide
[NEW] Sales Professional
conversation guide
[NEW] Business Central
conversation guide
[UPDATED] In a Box Marketing Content
Ebook – Social Post – Emails – Guide –
Landing Page – Atomized content
Power Apps Galery
[NEW] Power Apps envisioning and
Hackathons guide
[NEW] SMB Customer Pitch Deck All Up
Dynamics
P2P overview
[NEW] How to package and price your
offer: High Volume Practice content
AppSource
Partner to Partner (P2P) model
The customers
Looking for new CRM
and/or move to a CRM
cloud solution
MDW Reseller
Trusted technology
advisors with existing
modern workplace or
Azure business practices
Indirect provider
Dynamics 365 bundled offers
that you can sell to your
customers while continuing
to own and maintain your
customer relationshipsYOUR
COMPANYD365 Partner
Customer
relationship
Margin
+ incentives
Bundled offerings
+ services
Support
options
Packaged
solution
4 | Zoom-in strategic lead generation motions
Better Together
Campaign & Partner
to Partner Model
NEW Business Central to
customer campaign
Start with
identifying
whom to target
with our
predictive model
Cloud Ascent
To-customer campaign – NEW!
Optimize Financial and Operating Models for Small and Mid-sized
Organizations
What: Curated assets to help you reach, engage
and convince customers that now is the time to
build a truly resilient organization with
Dynamics 365 Business Central!
How to use:
1Use one or more of these assets in your own
campaign and digital properties – Available for
easy download on the Partner Marketing Center
2Sign up for the Digital Marketing Content
OnDemand (DMC) tool to activate an automated
12-week campaign with pre-written emails, social
posts and blog copy using these same assets
[This powerful social syndication tool is available
globally to all Microsoft partners at no-cost. Emails and
social posts can be localized, but assets are available
only in English.]
OR,
Get onboarded in the Partner Business
Central Journey
LAND | EXPAND | REALIZE
Build capability, increase capacity and accelerate go-to-market.
Understand the partner value
and opportunity
Build and reinforce your Business
Central Practice
Build a Practice content >
Build and Publish Your Offer
Create repeatable offering and
publish it on AppSource
Visit AppSource > Leverage Microsoft Programs
Learn more about Microsoft
programs eligible to Business
Central Partners
Skill your Team and hone Your Competency
Get you technical team trained and certified
Explore certifications >
Zoom-in strategic lead generation motions
Grow customer acquisition landing lead
generation campaigns and navigating through
new routes to sell
Learn more>
0103
05
02
04
5 | Leverage Microsoft Programs
Pre-Sales
offers
Migration
Big deals
motions
Incentives
Use Microsoft Presales Offers
Pre-Sales offers
The FY22 Pre-Commit Partner offers continue to be aligned to each sales plays to help customers and
partners adapt to rapidly changing business needs and create new business opportunities. Microsoft will
continue to provide a rich set of investments to our partner community for driving specific pre-sales and
post-sales activities.
NEW this year is the eligibility for qualification, which has decreased from $50k → $20K in deal size to
help more partners participate in this program!
Presales Offers
Learn more
Catalyst Offers
Envisioning
Business Value Assessment
Proof of value
In a day Workshops
Pilots
5 | Leverage Microsoft Programs
Pre-Sales
offers
Migration
Big deals
motions
Incentives
Bridge to the Cloud
Migration
Benefits:
Bridge to the Cloud Promotion (microsoft.com)
WHO?
WHEN?
WHAT?
Support existing Dynamics Price List (DPL)
on-premises customers (Dynamics NAV, GP, SL,
Business Central on-premises) committed to
move to the cloud
September 1, 2021 – June 30, 2022. 1-year initial
agreement with 3 optional renewals
(4 years total)
Enables existing customers that are active on
their Enhancement Plan (EP) to renew through
the Cloud Solution Provider (CSP) program and
receive Dynamics 365 Business Central online
licenses
1 Price point equal to Enhancement Plan renewal quote
2Dual use and downgrade rights to their current
on-premises Dynamics Price List (DPL) product
(Dynamics 365 Business Central, on-premises,
Dynamics NAV, Dynamics GP, and Dynamics SL)
3Monthly billing option (subject to CSP partner
approval)
4Enhancement Plan benefits for the duration of the
promo term
5Dynamics 365 Business Central (cloud) licenses for
migration to the cloud
Note: The Bridge to the Cloud promotion is a new option for customers to renew their EP. Customers continue to have the option to annually renew their EP via Dynamics Price List (DPL) for their on-premises solution
Need a hand in your customer migration journey? Leverage
our ‘coaches’Coaches are experienced and independent experts which can support you in maturing your practice, developing your offerings for Business Central online or
help you with migration your customers
The collaboration with 1ClickFactory has helped us to
speed up our own Move2SaaS program by providing
support with building migration tooling so that we
could focus on modernizing and improving our
products. We also collaborated in scaling up and
advancing our Upgrade Experts unit to make sure we
have the delivery power ready for all migration needs
of the futureTobias Fenster, Cosmo Consult Group
Alletech has proven to be a reliable
partner with a lot of know-how on
Business Central and surrounding
Microsoft technologies in a cloud
environment. Their team of
professionals is engaged with
helping out in our challenges and
are happy to go the extra mile to
achieve the best result in our
cooperationBenny Dor, Aptean
Cloud Ready Software has literally
shifted our focus from on-prem to
SaaS, and then helped us to put
our big vertical on AppSource and
to align our reseller channel. This
past year has been an amazing
journey togetherMiguel Flaminio, tegos Group
The personal connection with
ENAVATE was crucial to us. It was
there not just in the sales phase,
but it followed into the building of
the projectDavid Verreth,
HR Software, SD Worx
Utilizing the ISV Acceleration Program,
we could benefit from QBS experience
and resources to accelerate our
transition into the cloud. Next to
bringing Our app into AppSource,
we received a new viewpoint in our
cloud offering and recommendations
to accelerate our sales offering in
the cloudMichael Ebinger, Yaveon
Ciellos has been Serenic’s coach for two different
Microsoft-enabled programs and we could not be
happier with the level of knowledge within the Ciellos
team and the way they engage and collaborate with
us. I have no doubt that partnering with Ciellos was a
solid business decision as we were able to lean into
them for assistance across so many different areas,
whether it was coding, deployment process, licensing,
or data migration!Donna Smiley, Serenic
Innova accelerated our efforts on transforming our ISV
solution into different AppSource Apps. They helped us
in modernizing our go to market approach and to
bring our solutions into AL. In the close collaboration
they respected our priorities and provided extremely
useful daily support, from solution design, to
application best-practices at coding processes and give
us options on how to monetize our apps. It has been a
real pleasure to actively working with Innova Advanced
ConsultingAndrés Sáenz, TIPSA S.L.
Building visibility in the online market is as important
as building an actual cloud product. This journey starts
on the website and goes through marketing, sales, and
pricing. Overall, it’s about finding the right mindset for
effective and efficient customer onboarding. Neural
Impact was a huge booster for us in every phase of our
project. We have been able to reduce our average
customer onboarding effort by over half. To every ISV
out there, we strongly recommend taking this journey
with Neural ImpactMark Fahrni, SwissSalary
We’ve been very impressed with the
level of involvement from Stratos Cloud
Alliance (SCA) as we prepared for
product launch. SCA has put together
focus groups for us, given us feedback
on the product itself, recommendations
on bundling, and advice on how to get
our product on Microsoft AppSource
Andrew Kurtz, Kopis
5 | Leverage Microsoft Programs
Pre-Sales
offers
Migration
Big deals
motions
Incentives
Business Central Concierge
Big deals motions
3-6 months
Free
$100K Deals
Duration
For partners and customers
Recommended/up for
discussion per case
What implementation partners* getFree of charge resources for coaching regarding requirements, implementation and preparation to
partner for a named customer case*
What Microsoft gets
• Confident partners who can handle larger implementation project at scale
• Future customer references
• Feedback to refine Business Central capabilities, tools and processes
You can register in the Concierge Program at the following links: Registration link
* Certain criteria applies in order to be eligible
Account SwarmingThere will be opportunities where a seller
requests additional resources to close
large or strategic deals. In these cases,
we will encourage Specialists from the
SMC-Corporate team to provide support,
and they will receive revenue credit
*Only cloud opportunities, Dynamics 365 and Power Platform included
$100k
Deal value
Developed
$50k
Deal Value
Emerging
5 | Leverage Microsoft Programs
Pre-Sales
offers
Migration
Big deals
motions
Incentives
Reward partner for driving Cloud Solution Provider revenue,
adding customers and selling strategic products
Incentives
Eligible CSP Indirect
Resellers
Eligible CSP Direct Bill
partners
Eligible CSP Indirect
Providers
Core – Business
Applications billed
revenue
4.75%
Global Strategic Product
Accelerator – Tier 1Business Central
5%
Global Strategic Product
Accelerator – Tier 2Sales Pro, Power Apps
10%
Customer Add
Accelerator – Business
Applications1
20%
The CSP incentive program Product Addendum is the governing document detailing product applicability for each CSP incentive earning opportunity. Partners can access the Product Addendum on the Microsoft partner website
1See FY22 Incentive Guide for upcoming changes and supporting detail
Microsoft Business Applications Partner
Confidential. Not for External Use.
Agenda
FY22 Sales Play
SMB opportunity
Partner Strategy
Resources
Key Resources
Bookmark these key resources to re-visit throughout your practice
development journey
Dynamics 365
Partner Hub
Microsoft Partner
Center
Microsoft Partner
CommunityMicrosoft Learn
Access go-to-market
resources, partner
stories and readiness
resources for Sales
Plays and by product
Access your tools you
need to manage your
relationship with
Microsoft and with
your customers
Get partner news and
foster connections
with experts at
Microsoft as well as
peer-to-peer
connections
Access skilling and
readiness resources
that can help your
team learn across
various lengths,
skill levels and
role-specific needs
➤ Visit the Partner Hub ➤ Visit Partner Center ➤ Join the Community ➤ Visit Microsoft Learn
There is no better time to be a Microsoft Business Applications partner
