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Microsoft Partner Profitability Modeler Tool & Guide

By Philip Evans,2014-12-23 20:34
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Microsoft Partner Profitability Modeler Tool & Guide

    Microsoft Partner Profitability Modeler Tool

    Frequently Asked Questions (FAQ)

    PURPOSE

    The purpose of the Microsoft Partner Profitability Modeler Tool is to provide a financial estimate of a Microsoft partner’s new business opportunities. It provides confidential, detailed 3-year quarterly profit & loss (P&L) estimates including revenues, costs, margins, ROI and investment analysis forecast.

    GENERAL QUESTIONS

    Q: What will this tool provide?

    A: The tool provides the user with a confidential estimate of their own P&L financials, based on a selection of Microsoft solution scenarios. It provides business guidance and Microsoft online resources for planning and executing the new business opportunity. It also provides a way to save and download a P&L created Report.

Q: Who is this tool for?

    A: The tool is for Microsoft partner business executives in any country who need to estimate, plan and execute new business strategies. It can be used by Microsoft partner support staff to help partners understand Microsoft based opportunities. This may include users who are:

    ; Seeking new Microsoft business solution opportunities

    ; Looking for guidance on evaluating new business models such as Partner Hosting and Services-led

    ; Interested in increasing profitability metrics for revenues, margins, annuity cash-flow streams

Q: What is the value of using this tool?

    A: The value of this tool is that it helps estimate detailed 3-year, Quarterly estimates for:

    ; Revenues, Costs, Margins, and ROI

    ; Comparison of different scenarios to see which scenario maximizes growth and profitability

    ; A way to evaluate different delivery models and associated P&L details for:

    o On-premise

    o Partner Hosted

    o Microsoft Online

Q: Which Microsoft workload / solutions are included?

    A: Microsoft solution scenarios in tool are:

    ; Business Productivity (Information Worker) Solutions:

    o Business Intelligence

    o Enterprise Content Management / Portals & Collaboration

    o Enterprise Project Management

    o Enterprise Search

    o Unified Communications

    ; Mobility Solutions:

    o Mobility enablement with Small Business Server (SBS) / Essential Business Server (EBS) / Exchange

    o Mobility enablement with SharePoint

    o Mobility support for Microsoft Dynamics AX

    o Mobility support for Microsoft Dynamics CRM

    o Mobility support for Microsoft Dynamics NAV

    o Mobility integration with Unified Communications

    o Mobile Device Management (MDM)

    o Application Development / ISV

    o Provisioning devices with 3rd party applications

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    ; Partner Hosting

    o Managed Exchange Service: Customer On-premise vs. Partner Hosted

    ; Business Productivity Online Standard Suite:

    o Exchange only

    o SharePoint only

    o Suite: Exchange, SharePoint, Live-Meeting, and Office Communications Server

    ; CRM Online solutions: which includes CRM Professional and Professional Plus

Q: Is training required to use this tool?

    A: No training is required as this is a self-serve framework tool.

Q: What size and type companies should use this tool?

    A: Any revenue size company estimates can be calculated. There are no minimum or maximum calculation limits.

    The business rule assumptions are based on annual revenues from approximately $5M up to $100M in size. FUNCTIONALITY & FEATURES

    Q. What are the basic functions?

    A: There are four sequential functional steps after the user signs into the tool.

    ; Sign-on. Log-on to the tool via URL link.

    ; Step 1: Profile User selects Primary Business, Solution Area, and Customer Size Estimates:

    o Company headquarters location which determines analysis labor rates by country

    o Primary Business type (7 options)

    o Current Services Offered (9 areas)

    o Average Deal Size per Customer (11 options ranging from 0 to > 10,000)

    ; Step 2: Revenue and Profitability User selects proposed Deal Metrics (Deal quantity per quarter and Ave.

    Deal Size), and the Delivery Model Type (On-premise, Partner Hosted, Microsoft Online).

    ; Step 3: Business Impact User evaluates the P&L calculations for their business as compared to their

    existing Annual Revenues, Net Income, and estimated Annual Revenue Growth %. The user can change

    the P&L numbers or percentages to better match their own specific business needs.

    ; Step 4: Next Steps Final step provides user with strategic business guidance for:

    o Marketing

    o Sales

    o Technical Training & Delivery

    o Operations & Support

    ; Saving a File or Download a Report To Save or Download their created calculations user must first create

    an account with a secure email address and associated password. After creating an account, the user can

    also re-enter the tool & guide at a later time to edit, resave, or created new files.

Q. What features does this tool provide?

    Tool provides the user with a simple to use, yet powerful resource to thoroughly evaluate real-world business

    scenario calculations and analysis for their own company. These features can help the user to plan and execute

    core business making decisions. It includes:

    ; Complete financial P&L calculations. Provides user with top-to-bottom financial statement profit and loss

    calculation estimates that can be modified to users’ company unique business needs.

    ; Provides various Services offerings. Provides default list and choice of ten (10) services revenue types,

    which are used in calculating the P&L based on the selected scenarios. Revenue types include:

    o Process Consulting

    o Architecture and Integration consulting

    o Software Development Services

    o Systems Integration Services

    o Setup and Installation Services

    o Managed Support Services

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    o Project Management

    o Training Services

    o Hosting Services

    ; Calculates Labor Resources by Country. Provides default list and choice of eleven (11) labor categories,

    which are used in calculating the P&L based on the selected scenarios. Labor resources are adjusted by

    country to fit local markets which is based on Step 1 selection of ‘Company Headquarters Location’.

    Resource categories:

    Labor Categories Labor Types

    ; Architect ; Software/Solution ; Full-time equivalent (FTE)

    ; Customer Management Specialist ; Outsourced (10-99)

    ; Designer ; Tester ; Off-shore

    ; Process Consultant ; Break-Fix Support

    ; Project Manager ; Help Desk Support

    ; Software Developer ; Engineering Support

    ; Self-Serve. Is available 24/7 hours and does not require any special training or skills. There is no charge to

    Microsoft partner to use this resource.

    ; Report and File creation. Has file Save, Reopen, Print, and Reporting features.

    ; Secure Hosted Environment. Tool is hosted in a secure IT environment and requires no special user rights,

    privileges, or certifications.

Q: What language is this tool available in?

    A: Version 4.0 (released July, 2009) is in English only.

Q: What currencies can be used to calculate the financial numbers?

    A: All major world currencies are available (83 total) and can be easily changed by the user. MODELING CALCULATIONS

    Q: What does tool calculate?

    A: It calculates an estimate of a financial P&L statement, including:

    ; Revenue

    ; Costs

    ; Margin %

    ; Net Income

    ; Cash Flow (for annuity calculations)

Q: How are the calculations made?

    A: The user selects default and scenarios tables, using preset defaults. All estimates and defaults can be changed by the user. All calculations are made from Microsoft based Excel tables and formulas using a dynamic refresh function that updates displayed P&L and report data in a real-time mode.

Q: What are the calculation assumptions, how were they made?

    A: All P&L based estimated calculations and assumptions were based on scenarios using publically available pricing and industry standard comparisons where possible, and hypothetical estimates following Generally Accepted Accounting Principles (GAAP) guidance where data was currently unavailable. Any actual calculations are solely the responsibility of the user to substantiate and validate within their own context.

Q: Are there any minimum calculation quantities?

    A: No, the tool can calculate as small as one (1) deal with (1) seat minimum.

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GUIDANCE

    Q: What guidance is provided?

    A: The user can evaluate their scenario calculations against a template of decision making resources, including:

    ; Marketing

    ; Sales

    ; Technical Training & Delivery

    ; Operations & Support

    The guidance parameters are general business decision making principles that can help a decision maker plan their next steps in pursuing new business opportunities. Any actual calculations are solely the responsibility of the user to substantiate and validate within their own context.

    SECURITY AND PRIVACY

    Q: What security and privacy processes are there to protect the user’s information?

    The user’s analyses are protected via a username and password so that only they can access their information. Q: What information (if any) does Microsoft have access to?

    A: Microsoft is not provided any user information, except in the form of tool usage metrics. See the Microsoft Privacy Policy: http://privacy.microsoft.com/en-us/default.aspx

    ADDITIONAL RESOURCES

    Q: Where can I find out more information about Business Productivity solutions?

    A: Visit this site: http://sellmsbpi.com

    Q: Where can I find out more information about Partner Hosting (Managed Services: Exchange) solutions? A: Visit this site: https://partner.microsoft.com/global/productssolutions/40057328

Q: Where can I find out more information about Mobility based solutions?

    A: Visit this site: https://partner.microsoft.com/global/productssolutions/mobility

    Q: Where can I find out more information about Business Productivity Online Suite based solutions? A: Visit this site: http://www.microsoft.com/online/

Q: Where can I find out more information about CRM Online based solutions?

    A: Visit this site: http://crm.dynamics.com/

    Q: Where can I find out more information about the Microsoft Software plus Services? A: Visit this site: https://partner.microsoft.com/US/productssolutions/productssoftwareplusservices

Q: Where can I provide comments or feedback on the Partner Profitability Modeler Tool?

    A: Contact Don Hiebert at Microsoft: dhiebert@microsoft.com

Q: Is there a tool technical support contact?

    A: For tool support critical issue: support@alinean.com

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