1.
80%
Cloud Is Changing the Game
45%
62%
52%
56%
60%
45% $84.6B
$127B – IT’s WW public cloud services
spend by 2018 with a 22.8% CAGR1
0
20,000
40,000
60,000
80,000
2010 2011 2012 2013 2014 2015 2016 2017
Worldwide Cloud Software Revenue
22.8%
CAGR1
Partners are in a unique position to capitalize on the opportunity
1: Gartner, “Three Factors Will Significantly Impact Enterprise Cloud Use in the Near to Midterm Future”, http://www.gartner.com/newsroom/id/2581315, August 2013.
2: http://www.infosys.com/newsroom/press-releases/Pages/cloud-ecosystem-integrator.aspx
3: http://www.infosys.com/newsroom/press-releases/Pages/cloud-ecosystem-integrator.aspx
4: 451 Research, 2014. Hosting and Cloud Study 2014 Hosting and Cloud Go Mainstream.
Other sources: Gartner Press Release, “Gartner Says Nearly Half of Large Enterprises Will Have Hybrid Cloud Deployments by the End of 2017”, October 1, 2013; Forrester Research, Inc., The Public Cloud Market Is Now In Hypergrowth: Sizing The Public Cloud Market, 2014 To 2020. April 24, 2014
IDC eBook, sponsored by Microsoft, Successful Cloud Partners 2.0, May 2014

2.
Talk to your Microsoft account representative about the CSP Program
Register your interest www.MicrosoftCSP.com
Visit http://aka.ms/cloudsolutionprovider to learn more
Own and
Control the
Billing
Provision,
Manage and
Support
Sell
Integrated
Offers and
Services
Microsoft has expanded the CSP program to more
partners with access to new Azure cloud services, more
markets and new capabilities.
Own the end-to-end customer lifecycle and
relationship with direct provisioning, billing, and
support of Microsoft cloud services.
Partners create the offer, set the price, and own the
billing terms with their customers.
Partners can attach and/or bundle their own
services with Azure.

3.
•
•
•

4.
Understanding Pay-as-you-Go in CSP

5.
Increase profitability with a
Managed Services practice around Azure
Unlock Lucrative Opportunities
with Managed Services
Offer new cloud and hybrid solutions
to customers
Enhance Your Solution
Portfolio

6.
Offer new cloud and hybrid solutions to customers based on IaaS services from Azure

7.
Platform Services
Security &
Management
Infrastructure Services
Datacenter Infrastructure (24 Regions, 19 Online)
Web
Apps
Mobile
Apps
API
Management
API
Apps
Logic
Apps
Notification
Hubs
Content
Delivery
Network (CDN)
Media
Services
HDInsight
Machine
Learning
Stream
Analytics
Data
Factory
Event
Hubs
Mobile
Engagement
Active
Directory
Multi-Factor
Authentication
Automation
Portal
Key Vault
Biztalk
Services
Hybrid
Connections
Service
Bus
Storage
Queues
Store /
Marketplace
Hybrid
Operations
Backup
StorSimple
Site
Recovery
Import/Export
SQL
Database
Document
DB
Redis
Cache Search
Tables
SQL Data
Warehouse
Azure AD
Connect Health
AD Privileged
Identity
Management
Operational
Insights
Cloud
Services
Batch
Remote
App
Service
Fabric
Visual
Studio
Application
Insights
Azure
SDK
Team
Project
VM Image Gallery
& VM Depot

8.
Azure’s global presence takes you to
new markets
100+ datacenters
One of the top 3
networks in the world
2x AWS and 6x
Google—number
of offered regions
G Series—largest VMs
available in the market
Operational Announced
20+ regions online and growing

9.
ISO/IEC 27001 SOC 1 SOC 2 PCI DSS L1 version 3 Cloud Security Alliance
Cloud Security Matrix
HIPAA
(Healthcare)
FedRAMP FIPS 140-2 Life Sciences GxP Family Educational Rights
& Privacy Act
European Union
Model Clause
China
Multi Layer
Protection Scheme
United Kingdom
G-Cloud
Singapore
Multi-Tier Cloud
Security
China
CCCPPF
Australian Signals
Directorate I-RAP
Assessment
Criminal Justice
Information System
Defense Information
Systems Agency L2
Sarbanes Oxley ITAR Defense Information
Systems Agency L3-5
ISO / IEC 27018
Global
United
States
Regional
Coming
soon

10.
Extend
your Datacenter with
hybrid offerings
Use Azure to Build New, Cloud only
offerings
Backup On-premises
Workloads
Backup On-premises
Databases
Support a Customer in
a New Region
Disaster Recovery of
Existing Customer Apps
Disaster Recovery of
SQL Databases
Managed
SQL Server
Highly Available
LOB Apps
Dev/Test
Desktop-as-a-
Service
N-Tier Apps (Windows
or Linux)
Web Apps

11.
Increase profitability with a Managed Services practice
and reach new customers globally with Azure

12.
• Education
• Assessments
• Strategy definition &
roadmap
• Lift & Shift
• App re-platform
• New App Development
• App Optimization
• Workload Migration
• Service Delivery
• SLA
• Support
• Operations & Monitoring
• Security
• Analytics
• Tools & Processes
• Backup & Recovery
• App optimization
• Governance
• Compliance
• Managed Billing
Expand your practice bi-directionally to become the cloud vendor of choice
for customers along their cloud journey

13.
Managed Services Opportunities
Cloud Readiness
Assessment
Solution Analysis, Scope,
& Design
Data Architecture Design
Workflow Creation in
SharePoint
User Experience
Consulting
Training
Business Opportunity
Identification
Systems Integration
Datacenter Migration
Backup & Storage
Deployment
Disaster Recovery
Deployment
Proof of Concept
App re-platform
Database Infrastructure
Development
Deployment Services
Proactive Backups &
Anti-Virus Monitoring
Update & Patch
Management
Reactive Help Desk
Support
User Rights & Account
Management
Performance and App
Troubleshooting
Desktop & Device
Support/Management
VoIP Maintenance
Critical Response Support
Health Checks
Hybrid Environment
Support
Security Management &
Identity Protection
Virtual Machine
Management & Upgrading
Network Monitoring
Cloud Usage Forecasting
Billing Management
Capacity Planning
3rd Party Application
Management
Remote Device Monitoring
Mobile Device Management

14.
Predefined Bundles – Flat Rate Predefined Bundles – % of Cloud Spend
A La Carte

15.
Feb
March
Basic
Advanced
Premier
Customer Azure Spend
April
MSP revenue
Service Basic
(20%)
Advanced
(30%)
Premier
(40%)
Azure Fundamentals – Subscription
management, OS patching, IaaS
management, basic authentication
  
Usage and Billing management (Basic)–
Monthly Azure consumption reporting   
Usage and Billing management
(Advanced)– Capacity planning, usage
forecasts, billing concierge, usage forecasts
by workload/deptt

Monitoring (basic)– OS monitoring, network
monitoring, ticket/service request logs, 24/7
help desk
  
Monitoring (Advanced) – Workload/App
monitoring, log analytics, audit reporting,
alerting and proactive troubleshooting,
superior response time SLA (e.g. 15 min)

Security management – firewall, antivirus,
security updates, data encryption, compliance  
Business Continuity Services – Automated
disaster recovery and backup, monitoring,
and testing
 
Charge customers as a percentage of cloud spend—actual percentage depends on the Managed Services
tier

16.
CSP has enabled partners to launch unique service offerings around Azure
Managed Cloud for Microsoft Azure Fanatical Support for Microsoft Azure
Azure Cloud Start Package

17.
• Monitoring/ Management:
Patching, Monitoring, Break Fix, Service
Management
Add new offers to your portfolio
Managed
Services
• Usage management, capacity planning
• Optimization: Improved user experience,
Performance, BI Capabilities, Security, Billing
management, Dev Ops management
• Outsourcing: Migrations, Cloud Integration,
Workload discoverability
Hybrid Offers
• Disaster Recovery
• Backup
• Capacity Bursting
• Identity & Access
Management
Geo Expansion
Supporting customer’s
growth without new capital
investments
New App
Development
• Dev Ops framework
• App Life Cycle
management
• SAP/Oracle/Sharepoint
on Azure
Advanced Services
• Azure ML
• HD Insight
• Advanced Analytics
• Modern DW
• IOT Suite
• Power BI
Resell
• Multi-Cloud IaaS
• Dev/Test Scenarios
• Cloud Marketplace
Traditional
datacenter
management
Cloud managed
services = More $$

18.
Azure business scenarios
(deep-dive)

19.
Extend
your Datacenter with
hybrid offerings
Use Azure to Build New, Cloud only
offerings
Backup On-premises
Workloads
Backup On-premises
Databases
Support a Customer in
a New Region
Disaster Recovery of
Existing Customer Apps
Disaster Recovery of
SQL Databases
Managed
SQL Server
Highly Available
LOB Apps
Dev/Test
Desktop-as-a-
Service
N-Tier Apps (Windows
or Linux)
Web Apps

20.
Profitability Model*
CSP
Discount
Managed
Services
ADVANCED
Tier
$8,264
$2,197
$3,138
Annual Revenue = $163,184
Annual Profit = $43,306
Gross Margin = 27%
Year 1
Discount
Multi-geo Support
LeverageAzuretosupportacustomerinanewregionwherethecustomer/partnerdoesnot
haveadatacenterpresence
Total
Monthly
Revenue
=
$13,599
Scenario Description
Partner Opportunity

21.
North America
VPN
Australia
Azure (Australia East)
Service Provider Cloud
N-Tier Application
N-Tier Application
Customer Branch Office
Partner Datacenter
Customer HQ
Multi-geo Support
LeverageAzuretosupportacustomerinanewregionwherethecustomer/partnerdoesnot
haveadatacenterpresence
Customer Environment Customer Environment

22.
CSP
Discount
$2,732
$726
$1,038
Annual Revenue = $53,953
Annual Profit = $14,318
Gross Margin = 27%
Year 1
Discount
Managed
Services
ADVANCED
Tier
Total
Monthly
Revenue
=
$4,497
Disaster Recovery of On-premises Applications
Disasterrecoveryofexistingcustomerappsinapartner/customerdatacenter
toAzureusingAzureSiteRecovery*
Profitability Model*
Scenario Description
Partner Opportunity

23.
Existing Connection
Customer HQ
Azure
Service Provider
Customer Environment
Customer Environment
VMM DNS
ExpressRoute
Partner Datacenter
Customer Environment
DNS
Azure
Partner Datacenter
Customer HQ
Disaster Recovery of On-premises Applications
Disasterrecoveryofexistingcustomerappsinapartner/customerdatacenter
toAzureusingAzureSiteRecovery*
ASR

24.
CSP
Discount
$585
$155
$148
Annual Revenue = $10,656
Annual Profit = $2,664
Gross Margin = 25%
Year 1
Discount
Managed
Services
BASIC Tier
Total
Monthly
Revenue
=
$888
Backup On-premises Applications
BackupofexistingcustomerapplicationsrunninginapartnerdatacentertoAzure(usingeither
SystemCenterDataProtectionManagertoAzureorAzureBackupServertoAzure)
Profitability Model*
Scenario Description
Partner Opportunity

25.
Existing Connection
Azure
Service Provider
Customer Environment
DPM
Customer Environment
Azure
Backup
Partner Datacenter
Customer HQ
Backup On-premises Applications
BackupofexistingcustomerapplicationsrunninginapartnerdatacentertoAzure(usingeither
SystemCenterDataProtectionManagertoAzureorAzureBackupServertoAzure)

26.
Profitability Model*
CSP
Discount
$9,753
$2,592
$2,469
Annual Revenue = $177,768
Annual Profit = $44,442
Gross Margin = 25%
Year 1
Discount
Managed
Services
BASIC Tier
Total
Monthly
Revenue
=
$14,814
Scenario Description
Partner Opportunity
Backup Hosted Databases
ReplicationofexistingMicrosoftSQLdatabasesrunninginapartnerdatacentertoAzure(using
MicrosoftSQLAlwaysOnavailabilitygrouptechnology)

27.
Existing Connection
VPN
Azure
Service Provider Cloud
Customer Environment Customer Environment
Partner Datacenter
Customer HQ
Backup Hosted Databases
ReplicationofexistingMicrosoftSQLdatabasesrunninginapartnerdatacentertoAzure(using
MicrosoftSQLAlwaysOnavailabilitygrouptechnology)

28.
Profitability Model*
CSP
Discount
$3,553
$945
$1,349
Annual Revenue = $70,168 + $1,500
Annual Profit = $18,621
Gross Margin = 27%
Year 1
Discount
Setup Fee
$1,500
Managed
Services
ADVANCED
Tier
Protect on-site SQL databases via SQL Server AlwaysOn
Total
Monthly
Revenue
=
$5,847
Scenario Description
Partner Opportunity

29.
ExpressRoute
Azure
Service Provider Cloud
Customer Environment Customer Environment
Partner Datacenter
Customer HQ
Protect on-site SQL databases via SQL Server AlwaysOn

30.
Profitability Model*
CSP
Discount
Setup Fee
$1.90
$0.50
$300
Year 1
Discount
Total
Monthly
Revenue
=
$2.90
Backup hosted databases to Azure blobs for cost-effective, long-term retention
Scenario Description
Partner Opportunity

31.
Redundant
Copy (LRS)
Azure (West US)
Service Provider Cloud
Customer Environment
Customer Environment
Partner Datacenter
Customer HQ
Backup hosted databases to Azure blobs for cost-effective, long-term retention

32.
CSP
Discount
$623
$166
$158
Annual Revenue = $11,362
Annual Profit = $2,840
Gross Margin = 25%
Year 1
Discount
Managed
Services
BASIC Tier
Total
Monthly
Revenue
=
$947
Quickly deploy SQL Server solutions and bundle Managed Services
Profitability Model*
Scenario Description
Partner Opportunity

33.
Customer Environment
Azure
Customer
Managed
Service
Provider
Quickly deploy SQL Server solutions and bundle Managed Services

34.
CSP
Discount
$5,116
$1,360
$1,943
Annual Revenue = $101,025+$555
Annual Profit = $26,810
Gross Margin = 27%
Year 1
Discount
Setup Fee
$555
Managed
Services
ADVANCED
Tier
Total
Monthly
Revenue
=
$8,419
Provide highly available SQL Server solutions in regions with no datacenter presence
Profitability Model*
Scenario Description
Partner Opportunity

35.
Customer Environment
Azure (East US)
Customer Environment
Azure (West US)
Managed
Service
Provider
Customer
Provide highly available SQL Server solutions in regions
with no datacenter presence

36.
CSP
Discount
Managed
Services
PREMIUM
Tier
$4,879
$1,297
$2,470
Annual Revenue = $103,757+$900
Annual Profit = $28,904+$618
Gross Margin = 28%
Year 1
Discount
Setup Fee
$900
Total
Monthly
Revenue
=
$8,646
Deploy SQL Server on high performance VMs for advanced customer solutions
Profitability Model*
Scenario Description
Partner Opportunity

37.
VPN
Azure
Service Provider
Customer Environment Customer Environment
Partner Datacenter
Customer HQ
Deploy SQL Server on high performance VMs for advanced customer solutions

38.
CSP
Discount
$12,198
$3,242
$6,176
Annual Revenue = $259,392
Annual Profit = $72,259
Gross Margin = 28%
Year 1
Discount
Managed
Services
PREMIUM
Tier
Total
Monthly
Revenue
=
$21,616
Line of business applications (e.g. SharePoint) running in Azure
Profitability Model*
Scenario Description
Partner Opportunity

39.
Customer
Environment
Azure
Internet
Managed
Service
Provider
Customer
Line of business applications (e.g. SharePoint) running in Azure

40.
Profitability Model*
CSP
Discount
$14,421
$3,833
$7,302
Annual Revenue = $306,671
Annual Profit = $85,430
Gross Margin = 28%
Year 1
Discount
Managed
Services
PREMIUM
Tier
Total
Monthly
Revenue
=
$25,556
Scenario Description
Partner Opportunity
Highly available line of business applications (e.g. SharePoint) running in Azure in a dual
datacenter configuration

41.
Customer
DNS
ExpressRoute
Service Provider Datacenter
Existing Connection
Managed
Service
Provider
Highly available line of business applications (e.g. SharePoint) running in Azure in a dual
datacenter configuration
Service Provider Cloud Azure

42.
Profitability Model*
CSP
Discount
$13,667
$3,633
$3,460
Annual Revenue = $249,120
Annual Profit = $62,280
Gross Margin = 25%
Year 1
Discount
Managed
Services
BASIC Tier
Total
Monthly
Revenue
=
$20,760
Scenario Description
Partner Opportunity
Leverage Azure for Dev/Test in high-scale scenarios

43.
Internet
Customer
Environment
Azure
Customer
Managed
Service
Provider
Leverage Azure for Dev/Test in high-scale scenarios

44.
Profitability Model*
CSP
Discount
$494
$131
$188
Annual Revenue = $9,750
Annual Profit = $2,587
Gross Margin = 27%
Year 1
Discount
Managed
Services
ADVANCED
Tier
Total
Monthly
Revenue
=
$813
Scenario Description
Partner Opportunity
Hosting VDI environments in Azure

45.
Customer Environment
Azure
Customer
Internet
Managed
Service
Provider
Hosting VDI environments in Azure

46.
Profitability Model*
CSP
Discount
$112,283
$29,847
$56,852
Annual Revenue = $2,387,784
Annual Profit = $665,168
Gross Margin = 28%
Year 1
Discount
Managed
Services
PREMIUM
Tier
Total
Monthly
Revenue
=
$198,982
Scenario Description
Partner Opportunity
N-tier Windows-based app powering a high scale website

47.
Internet
Azure
Managed
Service
Provider
N-tier Windows-based app powering a high scale website
Customer

48.
Profitability Model*
CSP
Discount
$61,778
$12,973
$24,711
Annual Revenue = $1,037,870
Annual Profit = $289,121
Gross Margin = 28%
Year 1
Discount
Managed
Services
PREMIUM
Tier
Total
Monthly
Revenue
=
$86,489
Scenario Description
Partner Opportunity
N-tier LAMP app powering a high scale website

49.
Internet
Customer Environment
Azure
Customer
Managed
Service
Provider
N-tier LAMP app powering a high scale website

50.
Profitability Model*
CSP
Discount
$1,446
$384
$732
Annual Revenue = $30,748
Annual Profit = $8,565
Gross Margin = 28%
Year 1
Discount
Managed
Services
BASIC Tier
Total
Monthly
Revenue
=
$2,196
Scenario Description
Partner Opportunity
Run a highly scalable web-app with Azure PaaS services

51.
Azure
Run a highly scalable web-app with Azure PaaS services
CDN
CDN
CDN
Managed
Service
Provider
End users
End users
End users
Azure Traffic
Manager