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The future of pricing models in the Microsoft partner ecosystem with Ben Vollmer
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#3. Ben Vollmer is a Senior Vice President at RSM US responsible for growing their Power Factory offering. He is probably best known in the Microsoft community as the former global director of Microsoft’s Dynamics 365 Field Service business. Ben’s a prolific presenter at Microsoft conferences with a reputation for helping partners level up their pricing and delivery models.
Ben and I have a fascinating discussion about the evolution of pricing and how Microsoft partners and customers might exchange value. Traditionally, partners have delivered services and charged based a timesheet and a rate card. How is that model changing?
One option we discuss is outcome-based pricing, but do customers really want outcome-based pricing? There are challenges here too.
We also pull apart the user-story point estimation and pricing approach that Superware uses.
And, we ask whether blended teams are necessary for success and how customers should eventually assume full ownership of the applications partners build.
KEY LESSONS
- The Evolution of Pricing Models. The conversation delves into the shift from traditional time-based pricing to outcome-based pricing and other innovative pricing models. Ben offers a deep dive into how pricing can both reflect and drive a company's culture and strategy. While value-based pricing presents opportunities, implementing it successfully remains a challenge.
- Empowering Customers. Ben emphasizes the importance of customer empowerment and enablement. He suggests that partners need to focus on training and ensuring clients have the knowledge to manage applications independently post-deployment. As Neil Benson notes, building empowerment capabilities could be a key area of growth for Superware, aligning with the need for blended teams and client self-sufficiency.
- Focusing on Micro Verticals. Ben advises honing in on micro vertical segments — niche markets where tailored solutions can bring significant value. This focus allows for streamlined implementations, enhancing client satisfaction and business predictability.
TIMESTAMPS
00:00 The end of traditional agile waterfall methodologies
00:33 Introduction to Practice Leading and Ben Vollmer
02:25 Evolution of pricing models in Microsoft partnerships
02:43 How pricing drives a Microsoft partner's culture
05:07 Pricing strategy for ISVs and services
06:32 The shift from implementation to enablement and managed services
08:05 Challenges with outcome-based pricing
11:48 Discussing pricing methods tied to customer value
15:48 Importance of blended teams and customer ownership
18:16 Micro vertical expertise and predictable revenue for partners
24:17 Necessity of enablement and training in service models
30:35 Final thoughts on pricing and practice growth strategies
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