Annuity Renewal Discussion

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Annuity Renewal Discussion

• Vicky McCullough
• Accordo Group

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Who are Accordo Group

• Software licensing consultants
• Do NOT sell licenses
• Work with various Microsoft subs around the APAC
  region
• Carry out annuity renewal call downs to NZ and
  Australian customers on behalf of Microsoft
• Have gained an understanding of what customers
  are experiencing

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Field Feedback

• What objections have you come across?

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Learnings from Customer call downs

• Value of annuity generally not at all well
  understood
• Often are not engaged with their reseller (MM
  mainly)
• Too difficult and too much time involved for them
  to assess current position, let alone options
• Feel they are in a position of comfort with
  versions effectively in the bank
• Are often choosing to not renew but not making
  that decision on the basis of financial
  considerations

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Agenda

• Its really not rocket science the basic facts!
• Understanding the customer
• Where they are already at with this process?
• Their entitlements
• Their current deployment position
• Their technology vision
• Dealing with versions in the bank!
• Positioning SA Benefits
• Making sense of all this financial modelling!
• Help the customer understand the financial impact
  of non-renewal
• Track the order!

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Its really NOT rocket science!

• Remember the rules of thumb
• If the customer is going to upgrade their apps or
  sys products within 3.5 years SA will be
  cheaper!
• If a customer is going to upgrade their server
  products within 4 years - SA will be cheaper!
• Believe in it! It is a viable cost effective
  solution for most customers!
• NZ renewal rate in MM exceeds 75. Aust renewal
  rate exceed 80
• Dont forget customers appreciate someone else
  making sense of it all!
• And remember if the customer doesnt renew, we
  likely wont see revenue from them for up to 3
  years!

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This is just like a recipe!

• First you need to do is gather all the
  ingredients!
• Then you need to bake the cake!
• And never forget the customer is always more
  confused than you are!

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Understanding where the customer is at?

• Our process with MM customers (up to 1,000 seats)
• Always ask first where their thinking is at!
• They may already have decided to renew if so,
  establish what they will be renewing and when
• Would they like some help making sense of all the
  information and the options available to them?
• Have they seen the communication?
• Did they understand it?
• Do they realise the importance of the 90 day
  window?
• Are they engaged with their reseller

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Understanding the customers current entitlement

• Before you call, make sure you get clear in your
  mind what versions they are entitled to as a
  result of their expiring UA/SA
• Understand how many agreements they have coming
  up for renewal and when is there an opportunity
  to rationalise their licensing agreements?
• Dont underestimate what a big help this is for
  customers!

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Customers current deployment position

• Spend time with the customer understanding what
  they have deployed today!
• This is important information for Microsoft!
• This will also help you position and understand
  future upgrade cycles with the customer

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Customers technology vision

• Get an understanding from the customer of their
  technology vision preferably on a product by
  product basis!
• Be prepared that they may not know!
• If they dont, get clarity from them on when they
  deployed their last version upgrade

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Dealing with versions in the bank

• Dont be concerned that they might be entitled to
  versions later than they have deployed!
• Customers will often react with this this is
  part of the process and a very valid concern but
  is completely able to be overcome and positioned
  positively!
• Take them out of their current comfort zone
• Remember to position the opportunity for them to
  effectively have versions in the bank at the end
  of their next agreement
• Focus on cost of Year 4 in L only strategy!

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Financial Modelling

• Now you have all the ingredients!
• Making sense of all the information
• price up their various options
• make a recommendation
• Be aware you may need to model out as far as 6
  years!
• Incorporate and price the value of the SA
  Benefits if needed

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SA Benefits

• Our experience is that customers are often NOT
  aware of these!
• Focus on particularly
• The Home Use Program
• Training Vouchers
• Problem Resolution Support
• eLearning
• Use explore.ms SAB Report and the Microsoft SAB
  calculator
• If you need to, price up the benefits for them
• Note this is viewed by customers as the
• icing on the cake
• and not the reason for renewal!

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L only dont be afraid

• This can be a viable option for some customers
  particularly if they are leaning away from
  Microsoft products!
• If there is a competitive threat advise
  Microsoft!
• BUT ensure they understand the impact of Year 3
  or 4 costs!

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Track that order!

• Once you get agreement from the customer
  forecast the revenue opportunity and the month it
  is due to fall
• Track the order, because if the customer doesnt
  place it in time they may lose the opportunity to
  do so!
• Absolutely stay in touch with the customer
  throughout the whole process!

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3 Points to Take Away

• Challenge the Customer
• Follow a methodology
• Stay with the customer

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Software Asset Management (SAM) for Customers

• Microsoft offer support for SAM through
• SAM seminars promotion let us know if you are
  running a SAM seminar or want to
• SAM collateral - printed SAM guide
• SAM on-line Website
• Licensing Compliance Service in MM
• Managing security updates is driving people to
  better understand their software management
  processes

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SAM - What is available for Partners?

• SAM online guide www.microsoft.com/australia/partn
  er/licensing/sam
• On-line interactive tutorial for each section
• Partner/Customer ready tools - word PDF format
• Templates/scripts
• Opportunity to be listed as referral partners
• Be listed as a provider of services or tools
• Updated SAM guide being printed now and available
  for customers in Sept.
• Launch of Licensing/SAM competency in Q2/Q3
• Pick up an Intellectual Property QA from
  Licensing Lounge or speak with License Compliance
  Manager, Suzanne Caldwell

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Questions..vicky.mccullough_at_accordo.com