In this podcast I interview Tom O'Neil - a public sector and channel veteran - to discuss Microsoft's U.S. Education business transformation.
Tom currently leads sales strategy for small and medium-sized education customers in the US, and is helping partners transform to the cloud in that space.
Tom has focused on the public sector space his entire career and spent 17 years at Accenture managing business strategy and large scale system implementation projects for a wide variety of governmental and academic organizations. For the past 9 years Tom has been developing robust partner channels for Microsoft in the public sector with SIs, ISVs, and Channel Resellers.
In our podcast we discuss the importance of education to Microsoft as CEO Satya Nadella has called out education as one of Microsoft's top 6 company-wide priorities. This also dovetails with Microsoft's mission to "Empower every person and organization on the planet to achieve more".
Many of our partner listeners might remember that U.S. Education VP, Margo Day, was once the US Channel Chief at Microsoft. Tom and I discussed her priorities around the business around three core priority areas and the opportunity for partners, they are:
* Cloud Services at Scale - Partners can help deploy and run managed cloud services at scale such as: security, communications, collaboration, identity and device management. Cloud Services help virtualize the scarce services humans provide at scale - i.e. identity management. You don't need to be in this business and I can help you.
* 21st Century Learning - Development and delivery of new methods of learning as well as curriculum and content. Static textbooks are moving to more dynamic learning and there are both traditional as well as new content providers emerging. Microsoft is a platform and provides classroom support tools like OneNote. Minecraft is becoming a Learning Platform that is both interactive and stimulating. Partners can be developers or facilitators of the content as Cloud Services brokers.
* BI (Business Intelligence) & Analytics - The collection of "big data" is being used to support greater insights and decisions in areas such as student development and personalized learning. Tom speaks to the strong upside opportunity here for partners in developing applications that providing insights to student development and learning.
Our conversation moved to overall channel evolution from selling traditional "widgets" - devices and software licenses - to the innovative delivery of services models and learning how to monetize them.
I asked Tom, "what has fundamentally changed for partners in education with Microsoft's transformation?". Tom's response was the business model is shifting moving from a "gross margin on transaction" or "revenue from delivery of professional services" model to "how to get the right margin from delivering cloud services".
Commitment from partners is key to success with Microsoft, in each of my interviews there has been a reoccurring theme here that "partners need to take the long-view, commit to the new business and monetization models being offered."
Tom discussed the role of Service Agencies such as BOCES as a way for partners to scale and reach large groups of K12 customers in education.
AESA is the National Trade Organization for all of the Service Agencies its a great place to see how big this business is and what some of the business trends are for these organizations. Also, www.coloradoboces.org is the Colorado version and a good example of what these organizations do.