By 2016 cloud CRM revenues will be higher than non-cloud CRM revenues for the first time ever. By 2018, 62% of the CRM market will be cloud, with a CAGR of 20% vs. a -4% decline for non-cloud revenues as detailed in the IDC Successful Cloud Partner 2.0 eBook which provides excellent research conducted about cloud profitability from the International Data Corporation (IDC). The CRM app market shift to Cloud `is a wake-up call for Microsoft Partners, as well as for Microsoft with the arrival of the mobile-first, cloud-first strategy laid out by CEO Satya Nadella. As a result of its research, IDC concluded that cloud partners grow more quickly and more profitably than their counter partners (cloud partners have 1.5x the gross profit % compared with other partners, and as high as 1.7x the gross profit vs. the bottom group of partners surveyed).

There are a range of research, business-planning, sales and marketing resources made available from Microsoft that can help Partners get going. For more information on profitability in the cloud, visit the Microsoft Cloud Solution Provider (CSP) resource center and read the recent blog posts by Brent Combest, Director of Profitability & Compete. Additional login credentials may be required. For more, read The Second Inning of Cloud Computing and the Rise of Vertical SaaS, a retrospective on growth and future opportunity in the cloud that leverages the IDC research, resources from Microsoft and other experts.                            

Convergence 2015 EMEA served as a powerful moment in time for Microsoft, partners and customers. Over 5,100 partners and customers were reached in Barcelona and many more around the globe through media coverage, social outreach, the live stream of the first day’s keynote, and on demand at the Convergence EMEA website. Over the coming weeks more content will be made available as results are analyzed, including pipeline impact, and preparations are made for Convergence 2016 in April.

For online access to the keynote and breakout sessions from this event plus prior Convergence events, visit the Convergence Video Library.

Stay connected via Facebook, Twitter (#CONV15), LinkedIn and YouTube.

Forrester Research, a leading technology and market research company, has developed the Dynamics CRM Online Estimator, a tool that assesses the Dynamics CRM Online vs. an on-premises CRM solution now made available to Partners. The Dynamics CRM Online Estimator allows you to enter a broad spectrum of key information, such as organization size, marketing spend, annual revenue growth, existing CRM conditions, costs of expansion, etc., to generate a multi-year impact report on resulting cash flow and ROI, and detailing cost and benefit estimates. Forrester interviewed four organizations using Dynamics CRM online and surveyed 68 respondents across three geos to create the tool.

For more background on the Forrester TEI Tool and access to additional analyst tools, please visit the Analyst Tools and Content page.

faveo was a typical NAV partner. To get started in the cloud, Christoph Eberz, Owner faveo AG, and his team sat down two years ago and asked “Where should our position be in this new market? What solution can we offer in the volume cloud business?” They came to the conclusion that part of the answer was to leverage Office 365 and Azure. In partnership with the Microsoft Team that included PSE’s Dirk Stelzner and Tortsen Staschik, PTS Schimon Mosessohn, PMM Thomas Kombrecht and DX Daniel Heckmann, they passed the RAMP Transformation workshops and launched faveo365 in July of this year. While the business started slowly, it is now catching on with 30 new customer adds in the first few months.

At the six-month mark, Eberz knew it was really a go. Still, as Eberz and his team progressed, intensive market research was required to determine what segment they should target. They decided a horizontal approach would be more successful vs a niche vertical approach. Combined with the Office365 story, this direction gave faveo365 a much broader perspective and has provided a great narrative for upselling as they span all different types of industries. It is a clear unique selling proposition for the German SMB market with Office 365 attached.

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What three things does Christoph recommend when moving to the cloud?

1. Think about which segment to leverage (volume vs vertical)
2. Build out your marketing practice so that you can do it on your own and not require an external agency
3. Just do it