UPDATED 12:29 EST / JULY 10 2017

CLOUD

Microsoft bundles Office 365 with Windows to boost channel sales

The estimated 17,000 attendees at Microsoft Corp.’s Inspire partner conference this week will have plenty to talk about between sessions.

In conjunction with the opening keynote of Chief Executive Satya Nadella (pictured) this morning, the company debuted two new product bundles that make some of its most important offerings available under a single subscription. They’re an evolution of the Secure Productive Enterprise suite introduced at last year’s event that Microsoft hopes will appeal to a broader range of buyers.

Microsoft 365 Enterprise, the first bundle, targets the same kind of large organizations as its predecessor. It includes the top-end corporate editions of Windows, Office 365 and Enterprise Mobility + Security. The latter toolkit includes about half a dozen services that cover most of everything from mobile device management to malware detection.

As is usually the case with software offerings geared toward high-volume buyers, Microsoft 365 Enterprise allows for customization. Specifically, companies can choose between buying E3 and E5 flavors of the products in the bundle. They differ in several areas: Windows E5, for instance, packs a firewall with AI-powered threat detection features that isn’t included in the E3 version.

The other new package that was unveiled today is Microsoft 365 Business, which is designed for more budget-conscious companies. It combines a few core services from the Mobility + Security suite with the Premium editions of Windows and Office 365.

Citing company insiders, ZDNet’s Mary Jo Foley wrote that Microsoft 365 Business will sell for $20 per user per month. The Enterprise bundle can be expected to be offered at around the $36 to $54 range if the pricing for the original Secure Productive Enterprise is anything to go by.

Microsoft made the packages more cost-efficient than individually purchasing the products in a bid to create new upselling opportunities for partners and by extension boost its own income. According to a report that the company commissioned from Forrester Research Inc., the packages could help resellers increase revenue by up to 50 percent. It’s part of a broader effort by Microsoft to drive ecosystem growth that also extends to independent software vendors.

The company launched a new program alongside Microsoft 365 that let ISVs buy the embedded versions of Dynamics 365, PowerBI and other data presentation products at an up to 50 percent markdown. Partners can use the tools to make their own offerings more competitive. A startup that sells a cloud-based accounting service, for instance, could include PowerBI graphs in the interface to visualize expenditures.

Hardware makers play a role in Microsoft’s ecosystem plans as well. Alongside the business updates, Microsoft announced the launch of the long-anticipated Azure Stack, an appliance that lets companies host services from its public cloud in their data centers. Dell Technologies Inc, HPE Co., Cisco Systems Inc. and a number of other suppliers will sell the appliance in configurations that incorporate their respective hardware products.

Image: Microsoft

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