How Microsoft Partners and CSPs Can Use IURs to Increase Cloud Profitability

For many direct and indirect CSP partners in the Microsoft network, the main goal is to stand out from competitors by providing excellent customer service and unique products and services.

Doing so profitably, however, can be difficult.

There is a significant investment required in tracking – sales, customer tickets for incident management, remote monitoring and management tools, billing automation and even customer portals as marketplaces for self-service. All these tools and systems require significant investments and these costs are borne by partners.

However, by properly leveraging one of the Microsoft Partner Ecosystem’s built-in benefits: your Internal Use Rights (IURs) costs can be significantly reduced.

How to Leverage Your IURs

Microsoft partners with competencies receive IURs for Microsoft Online services and some on-premise products at different levels. These services and products can be worth more than $100,000 for Gold partners. The Gold partners in the Microsoft eco-system are rewarded with the IURs for the distinguished record in training internal resources, demonstrating sales expertise and receiving customer testimonials for their effort.

The chart below shows a summary of some of the IUR grants. Microsoft partners receive Core Benefits as part of the partnership level or status – either Action Pack, Silver or Gold levels and then additional license grants depending on the specific Competency.  

 

Core Benefits

Benefit 

Silver Grant 

Gold Grant 

Microsoft Office 365 E3 

25 

100 

Power BI Pro 

25 

100 

Microsoft Dynamics 365 – Customer Engagement 

15 

60 

Microsoft Azure 

US$100 per month 

Enterprise Mobility Suite 

25 

100 

MSDN Subscriptions 

5 

10 

 

In addition to the above core benefits, Partners with Specific competencies in the Cloud receive additional license grants. 

 

Cloud Platform 

Benefit 

Silver Grant 

Gold Grant 

Microsoft Azure 

US$ 6,000 / year 

US$ 12,000 / year 

Visual Studio Enterprise Subscription 

5 

25 

 

Cloud Productivity

Benefit 

Silver Grant 

Gold Grant 

Microsoft Office 365 E5 Seats 

25 

100 

Skype for Business PSTN Conferencing 

25 

100 

Enterprise Mobility Suite 

25 

100 

Microsoft Dynamics CRM Online – Portal 

1 

1 

 

The benefits range from Messaging to Productivity Services. However, the one main application IUR is for the Dynamics 365 Customer Engagement Plan. 

The Customer Engagement Plan for Dynamics 365 includes applications such as

  • Sales
  • Service
  • Basic Marketing and Campaign Management
  • Project Service Automation
  • Field Service
  • CRM Portals

 

With the Dynamics 365 Customer Engagement Plan, it is possible to run all your end customer facing transactions and management in one system including Invoicing and Billing for Cloud Services, and Project services with Work 365.

 

How Work 365 Helps Microsoft MSPs and CSPs  

Work 365 supports the management of various service type scenarios including Subscription and One-time Billing scenarios.

Our latest update, Work 365 Version 1.5 supports License type subscriptions, Usage, and Service type subscriptions.

In future releases, the application will support Effort based Scenarios. With these services and subscriptions types, Partners are able to manage billing and sales scenarios by involving any combination of services.  

 

  1. License type subscription allows partners to manage quantities across any provider and product type. This type of subscription is usually a product service like Office 365 or Dynamics 365 licenses that are provisioned or even self-provisioned for ISVs using Work 365.  
  2. Service type subscription is not provisioned and like a license type subscription has a quantity and price that can be bundled. 
  3. Usage type subscription is used for Azure billing scenarios where consumption for products it tracked and billed to the end client.  

 

All these Services and Subscription types capture details like Change Logs and Usage Details within Work 365 to enable subscription billing automation. A Billing Contract in Work 365 can include one or more of any of these types of subscriptions for the end customer.

Additionally, with the Self-Service Portal end, customers can directly manage the license quantities and monitor usage for Azure and view their invoices.  

For Microsoft Direct Partners – Work 365 support a two-way synchronization with the Partner Center that keeps all the Licenses and Changes Logs all in place within Work 365

 

Work 365 Features for Cloud Profitability

Work 365 includes enhanced dashboards with a consolidated view of business insights and action items. Graphical insights into your Cloud and Service operations gives you a quick view of general telemetrics with an alert and call to action related to your business.

 graphical reports work 365

 

Also, reports are available for overall business profitability as well as for individual products or services you are selling.

Product profitability reports can tell you how individual products or services are performing along with details around your customer specific profitability.

These profitability reports, factor in discounts at the billing contract level and using the software cost and sales price to determine GP.

 

Final Thoughts on Cloud Profitability

We hope that this post has given you insight into how to improve your Cloud Profitability by leveraging your IURs.

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