NEW ORLEANS – Allison Watson’s job as Microsoft (NASDAQ: MSFT) worldwide channel chief can be best described as daunting. With approximately 640,000 channel partners around the world, Microsoft has one of the biggest networks of solution providers in the IT industry.
This channel network is probably the most diverse in the industry, with large global service providers down to the one-man development shop. And Watson is responsible for all of that.
At the worldwide partner conference, held here, Watson announced one of the more extensive channel programs in the history of IT.
Called the Microsoft Partner Network, it’s based on three pillars: capability, customers and connections. This plan also levels the playing field for all partners and will bring major changes to those with Gold partner status. Also, for the first time, partners will be asked to obtain a benchmarked customer satisfaction score. The Canadian subsidiary already has this in place with its Excellence Program.
CDN was the only Canadian channel publication to interview Watson one-on-one about the new Microsoft Partner Network program, its upcoming retail strategy and its relationship with Nortel Networks.
The following is an edited transcript.
CDN: Why did you want to create a program such as Microsoft Partner Network?
Allison Watson: Well, five years ago in Toronto we released a generic program. We took that program and made it specialized. The impetus for this is to help channel partners differentiate. Microsoft is big in business intelligence, databases and portals, and how does a customer know which partner is better? The (old) program today does not really do that. Customers want to connect to the best partners and they want to know who are the best. That was the impetus the customers wanted from us.
The second pillar is don’t change the value proposition and partners want to make money with Microsoft whether it is hosted, telcos or those who service the home market. So we’re making a home for those. We felt it was time to take advantage of the network and the community and that why we created the Microsoft Partner Network program. It’s a new brand and now they can stand in front of customers with us.
CDN: What impact will there be on the channel now that Microsoft is committed to opening up retail stores?
A.W.: Kevin Turner (Microsoft COO) talked about the stores. Partners have told us to get in the game with Apple. But there is only so much we can do on TV. One of the things we found was that it is hard for large retailers to have breath of hardware. To push that technology platform in stores. We’re building very few stores. I don’t think there will be one in Canada. We don’t have a strategy to be in the retail business like Apple. So we will do concept stores so that we can bring out and showcase the breath of style and innovation.
There is a perception in the world today that PCs that run Microsoft are just black. We don’t have that depth of style and innovation. The hardware will come from vendor partners and the stores will showcase connectivity instead of just selling mobile phones.
We see Microsoft at retail as an end-to-end connected experience with Web, mobility, and TV. We’ll showcase creativity, design and a rich set of experiences. It will be more interesting and we hope that consumers will learn from us and help bring more ideas to market.
CDN: Nortel is here at the Worldwide Partner Conference. They just issued a press release about the two-year old Microsoft-Nortel alliance. Given their struggles how has the Nortel arrangement worked out for Microsoft?
A.W.: I know I talked to you about that in Denver (the Worldwide Partner Conference in 2007), but I don’t know and I am not the right person to speak on that.
CDN: At the recently concluded Cisco Partner Summit in Boston, Cisco executives said that the Microsoft/HP alliance with unified communication would lead to more direct business and that Microsoft chose the wrong vendor to partner with. How to you respond to those statements?
A.W.: I am not familiar with those statements or what might have prompted them. I know this is about the OCS business and we’re just trying to increase the opportunity for partners and bring more opportunity for customers and therefore HP is just one partner in our ecosystem of thousands. I think Stephen Elop showed the innovation with OCS and what we know is that the market is willing to pay for a solution that reduces travel and telephone costs. This is a clear and compelling value proposition for Office Server technology. The HP alliance for us is one example in a thousand examples. Microsoft and HP together will be in large accounts and OCS can save a load of money for those customers.
CDN: What do you do on a daily basis to increase channel partner margins?
A.W.: I will tell you my vision is not to increase partner margins. That’s up to them. My job is to make sure a partner is a profitable partner with me and can influence the market so they can have great top line revenue. I can help them by cutting out costs in the partner program and that can equal to more profits or margins. And, I wake up every morning thinking about it.
