Office 365 can serve as an anchor to cross-sell complementary hosted solutions, according to an AMI report.
Starting with its June 28th release, Microsoft's hosted productivity
and collaboration suite, Office 365, is poised to make a big splash
with U.S. small to medium-size businesses, which IT analytics firm
AMI-Partners considers businesses with under 1,000 employees. Priced at
only $6 per user per month, SMBs get all of the Office Suite
applications (Word, Excel, PowerPoint, Outlook), plus document
storage/collaboration and video/Web conferencing (Lync). An AMI report
suggested such a hosted productivity suite offers much more sales
opportunity than its stand-alone value might suggest.
Office 365 can serve as an anchor to cross-sell complementary hosted
solutions, as shown in AMI's U.S. SMB Cloud Playbook - Strategic and
Tactical GTM Planning Guide. Forty-two percent of U.S. SMBs indicated
they would be interested in purchasing a hosted
productivity/collaboration suite for a low fixed monthly cost in the
next twelve months. These SMBs are two times more likely than other
SMBs to be interested in also purchasing hosted CRM and Accounting
solutions, as well as other services such as email security, storage,
wireless broadband, and PC security, the survey found.
With the release of Office 365, SMBs will begin to evaluate their
current provider and determine whether their solutions offerings meet
their needs as they begin moving more of their IT into the cloud, the
report predicted. AMI researchers said cloud service providers should
ensure that their customers have the option for a hosted solution such
as Office 365 and other hosted solutions and services, or risk customer
attrition and/or forfeited revenue. Office 365 can also aid in customer
retention, said Jessica Efta, manager of SMB client services at
AMI-Partners.
"SMBs are three times more likely to switch their communications
service provider in the next 12 months in order to procure hosted
productivity suites than those who switch for routine reasons," she
said. "Purchasing integrated solutions from a single provider is
important to SMBs who wish to keep their IT management simple."
AMI's 2011 U.S. SMB Cloud Playbook - Strategic and Tactical GTM
Planning Guide provides a tactical framework for architecting
cloud-based services offerings to meet the growing demand for cloud
services "bundles" and a perspective on cloud-related dynamics shaping
up in the SMB space, including cloud-related needs among four types of
SMB segments; behavioral and usage characteristics; future adoption
plans, cloud and ICT spending, market opportunity, price sensitivity,
service bundling preferences and demand uplift; vendor value
propositions and offers/bundles and purchase channel mix and
capabilities.
Nathan Eddy is Associate Editor, Midmarket, at eWEEK.com. Before joining eWEEK.com, Nate was a writer with ChannelWeb and he served as an editor at FierceMarkets. He is a graduate of the Medill School of Journalism at Northwestern University.