The Long Tail of the SME Market

How BT and Microsoft are partnering

to SaaS empower ISV‘s

Alan Bennett – Microsoft Solution ArchitectJoseph Black – BT Director - Emerging Business and Technology

HostingConsumersService ProvidersISV’s

Platform Providers

Data ProvidersWhere should I

focus for results?

Content

Providers SME

Large Organisations

Hosted Service

Components

Web Hosting Data Hosting ISV Applications

Infrastructure Components

Server Purposing

ISV Customization

Centralized Management

ISV Customization

Service Provisioning

ISV Customization

Monitoring and Reporting

ISV Customization

Update Management

ISV Customization

Platform ComponentsMicrosoft Windows Server System

ISV ApplicationsISV ApplicationsISV Applications

Service Delivery

ISV’s and Content Providers

End User

Service Provider

Hos

ting

Org

anis

ation

Hosting View

Service Delivery Platform (SDP)

End User

Service Provider

ISV’s and Content Providers

Hosting organisations

Service Provider View

Single Coherent view for the end user

Call Control

PresenceLocation

SMS

Billing

SupportPayment

Order Handling

Service Aggregation

Connected Services Framework

Connected Services FrameworkBT Service Delivery Platform

• The CSF forms the core of the BT SDP for BT Retail

• The SDP was developed in partnership with Microsoft to decrease cycle times and costs associated with new service deployment

• BT currently provides a small but growing set of services to the SME market

• Now– Microsoft Exchange– Data Backup (Novell)– Web Hosting (Hostopia)

• Q1 2007– Security (Authentium)– Remote Access (Citrix)

• Q3 2007– Microsoft CRM– Microsoft Enhanced Voice

• Q4 2007– Microsoft Office Live

SME Long Tail SaaS Opportunity

• The cost to deliver software has been significantly reduced

• The formerly inaccessible SME market is now available to ISVs

• 2009 SME Market for SaaS in the UK is £144M

SME Long Tail SaaS Challenges

• Demand– Indentifying market

demand– High cost of search results

in missed opportunities

• Supply– Service offerings geared

towards a broad horizontal market

– What about niche demand?

BT TradespaceBT Application Marketplace

• BT Tradespace is the SME version of the popular MySpace.com social networking site, providing an effective way for SMEs to share content with their customers

• BT Application Marketplace is a Tradespace community for ISVs to distribute their applications through a BT branded & marketed environment– An active search tool allows SMEs to easily locate products they

know they are interested in– ISV promotion is also facilitated through customer product

reviews or the readership of service focused bogs

BT ISV Partner ProgramISV Review Board

Single Channel Launch

Multi-Channel Launch

• BT’s and Microsoft’s Goal is to have 100 registered ISVs by June– 71 registered ISVs currently

• Several Microsoft ISV partners have already registered– Sales-i– Mamut– NitroSale

BT Web21C SDK

Short Message Service

Voice Call

Conference Call

Location

Presence

Authentication

Profile

• The BT SDK is a set of libraries that makes it simple for developers to consume Web Services exposed by BT

• The SDK abstracts the services interface and serialization classes by providing the developer with a simple object model to interact with.

• The SDK implements features of WS-Security and WS-Trust to enable communication with the BT SDK Services freeing the developer to focus on creating their application

Microsoft Connected Services Sandbox

• Live, proof-of-concept CSF environment where an ecosystem of ISVs, Systems Integrators, Network Equipment and Telecommunications providers can collaborate to develop new and innovative services based on the Microsoft Connected Services Framework

• BT a founding member of the Connected Services Community

• BT sponsoring the first series of “Managed Network Mashups” managed by TopCoder

• BT’s services are at the core of these competitions

• Managed Network Mashup competitions created to encourage the development of innovative new services that merge traditional telecommunications offerings with Web 2.0 applications

• BT Business the sponsor of the first series of managed network mashup design and assembly competitions

• Winner of the first competition is a collaborative logistics mashup offering transport companies a revolutionary way to cut costs and streamline logistic operations

• Mashup utilizes BT’s Location, SMS, Authentication and Presence services,

combined with the MapPoint API

BT & MicrosoftEmpowering SaaS ISVs

Enablement and Incubation

• Microsoft SaaS ISV Partner Programs A set of varied ISV enablement and incubation initiatives geared towards SaaS ISVs of varying maturity, providing them with business and application design and development services, reliable and secure hosting infrastructure and special software pricing

• BT APIs and Software Development Kits – www.sdk.bt.com A set of highly secure services that ISV developers can integrate into their offerings through a series of SDKs with a wide range of interfaces, including .NET, allowing ISVs to integrate the power of BT's global infrastructure into their software with as little as one line of code

• Microsoft Connected Services Sandbox – www.networkmashups.com A live proof-of-concept environment designed to facilitate an ecosystem of customers, ISVs and other partners to collaboratively integrate and demonstrate the value of the Connected Services Framework (CSF) and other Microsoft and Microsoft Partner products and solutions

Distribution

• BT SaaS ISV Partner Program - www.isvpartner.bttradespace.com ISVs have a quick and effective way to promote their applications to BT’s fast growing online community of SMEs, called Tradespace, and thereby grow their business through the BT online Application Marketplace Tools to facilitate the discovery of ISV products through both active and passive search for SMEs will grow their business and help BT identify partners whose applications could become part of the BT product portfolio, launched via our SDP and marketed to over 500,000 and growing SME broadband customers who are increasingly interested in on-demand software services

Conclusion• There is a huge opportunity for ISVs in the SME Market - BT and SMEs want your hosted

applications

• BT and MSFT have programs and a platform to get you to market

• BT has tools to help you leverage BT’s assets – W21C SDK and WES SDK

• Sign up for the Connect Services Sandbox and WES enable your applications– www.networkmashups.com

• Download the .NET W21C SDK– www.sdk.bt.com

• Set up your Tradespace and Register in the Application Marketplace– www.bttradespace.com– www.isvpartner.tradespace.com

© 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be

interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.