10 March 2008
by Simon Quicke
The decision by Microsoft to extend its hosted services model into the SME space has been met with a mixed response from the channel.
Until last week the vendor had only made its online services available to firms with more than 5,000 seats, but that barrier is being removed in an effort to increase
its hosted software business around Exchange, Sharepoint and Office Communications.
Clare Barclay, head of UK partners at Microsoft, said small and medium-sized enterprises had embraced online services, which offer flexible payment and take the strain of running the IT functions, and this was creating an opportunity for resellers.
"We are seeing double the growth compared with traditional models. Online is growing much faster and resellers that are not doing it need a way of getting on that bandwagon.
"It plays into our broader strategy of helping partners increase their profitability."
One reseller said it made sense to widen out the online services programme, but for some dealers it could have an impact if they were already offering a rival service.
"I can understand it, and if I was setting up a small business I would do it myself, but in saying that for £9 a month you can have Exchange on our servers, they have taken my server sale away," he said.
Gordon Davies, managing director at Adepteq, said Microsoft’s move represented a fillip for the channel.
"It will expose smaller companies to technology, and when they want help they will go to the channel," he said.
"If you ask most small businesses what their priority is, they want to remain competitive but have the right tools that are tailored in the right way."
