Microsoft recently did its best to promote its Software Plus Services strategy at its S+S: Are you ready to evolve? event in London.

The software giant’s chief executive officer, Steve Ballmer, addressed executives, Gold partners and IT managers and professionals at its London partner summit about how Microsoft is responding to changes in the IT market.

At Microsoft’s World Partner Conference (WPC) in July, Microsoft signalled a shift in its Software as a Service (SaaS) strategy, announcing that partners can net six per cent annual recurring revenue.

Under the partner pricing model, partners receive 12 per cent of the first-year contract price and six per cent for every remaining year of the contract.

Steve Ballmer, chief executive officer of Microsoft, said: “Technologies are changing and our partner network needs to change with it. Adaptable partners are growing, loving the new technologies and finding new ways of adding value.

“Our vision is to create seamless experiences that combine the magic of software, powering the world of internet across different devices – that is what we believe in.”

Ballmer said S+S will provide partners with additional business models such as online subscriptions, adverts, transaction processes and billing services all on one platform.

“Not every partner has to throw their hat into the ring yet. Despite the economy going through tough times at the moment we are looking for partners that are ready to take S+S from a learning overhead to real business opportunities - we are on board to work together,” added Ballmer.

Scott Dodds, general manager for SMEs at Microsoft, said: “There has been a wave of interest in S+S and we want to ensure that any concerns from our partners are addressed.”

Steve Clayton, chief technology officer for the Microsoft Partner Group, said: “We want to give customers and partners the notion of choice. With broadband and the amount of devices that can now connect to the internet there is a lot of choice, but there is still the ambiguity of different devices working together.”

Clayton explained that Microsoft is adding 10,000 servers per month to its data centres to keep up with the demand for S+S.

David Mitchell, senior vice president for IT research of analyst Ovum, said: “For a business to succeed it should come in leading with IT services and consulting offerings.

“They should also be industry specific when offering professional services – tailor them for finance, construction, insurance for example.”

Mitchell said businesses should remember to secure intellectual property (IP) within their portfolio, so they can make the most of their revenues.

“Owning IP means that a business can deliver at a lower cost – IP driven services are key,” said Mitchell.

Mitchell stressed the importance of a flexible portfolio: “If your customer does not want hosted services then offer them onsite, instead of a discount on something they do not actually want.

“Flexibility is key but keep it simple - too many choices and the customer will choose not to make a choice.”

He encouraged Microsoft partners to consider cloud computing, claiming that SaaS is architectural bullying.

He added: “Businesses offering SaaS on its own cuts out other revenue streams – there is money to be made in a mixed estate. Spread your bets without bankrupting the company.”

Maggie Chang Jones, global software and services field lead at Microsoft, concluded: “We want our partners to leverage S+S around consultant services. It adds more opportunities; partners can integrate their own services either in the cloud or on premise.”