A recent press release from Microsoft states:
"REDMOND, Wash. -- June 30, 2008 -- Microsoft Office Live Small Business (http://www.smallbusiness.officelive.com) has reached a pivotal milestone: In less than two years since its November 2006 commercial debut, the online service that helps entrepreneurs take, promote and manage their businesses online has surpassed more than 1 million subscribers. This milestone demonstrates that increasing numbers of small businesses -- particularly those with fewer than 10 employees, for which the Office Live Small Business service is specifically designed -- are realizing the importance of having a Web presence. "
My question is "how many of those engagements came via Microsoft partners?" A question most likely without an answer! Microsoft has had ample time to develop a channel program or at the very least a commission and referral program that would help partners generate engagements. The key here is the ability to create relationships, not so much profits from the "Microsoft Office Live Small Business Service." After all, any profits would be minimal at best; the real business opportunity would come from getting the foot in the door with a new small business customer and being able to provide services beyond what Microsoft Office Live Small Business offers. Most of those small businesses signing up for the service from Microsoft are still unaware of important business services, ranging from backup and disaster recovery to professional Web design.
By ignoring the potential of the channel, Microsoft has created a service that competes against its very own partners, and the news only gets worse. The next version of Microsoft Small Business Server will offer integration with Office Live Small Business; will that combo further cut Microsoft's SMB partners out of the mix? Only time will tell.