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Microsoft: Repeat, Cloud Delivery Won’t Displace Channel

May 21, 2009 - News

Microsoft Corp. executives are once again trying to assuage VAR fears that they will be cut out of the company’s hosted software business.

Ray Ozzie, chief software architect, and Ron Markezich, corporate vice president, speaking at two events this week, said Microsoft gets 90 to 95 percent of its revenue from the channel. In addition, Ozzie said there is a need for customization that is not eliminated by the delivery mode.

Markezich told that Microsoft's decision to offer delivery models, including self-hosted, partner-hosted and on-premises software, means continued choices for VARs as well as customers. VARs can even garner consulting opportunities to help customers select the right delivery model for their needs.

Besides, he said, cloud delivery lets partner focus on higher value services like app development and systems integration.

This is little consolation to hosting partners with their own hosted apps since Microsoft’s undercutting them on price, driven in part by competition from Google Inc.


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