FY14 Partner Incentives Investments
The start of our new fiscal year on July 1st is an exciting time for Microsoft Partner Incentives, as we focus our incentives strategy and design on the business impact of our product portfolio and how we can help our partners capitalize on the industry transformation to devices and services. 
Looking back, in fiscal year 2013 we focused our attention on business stability, solving some execution and operational issues, as well as improving our tools ease of use, to grow the business profitability for our broad partner base.  The foundation we were able to establish in FY13 now allows us to pivot our incentives portfolio to drive revenue and growth opportunities that will help you catalyze customer transformation to devices and services.
FY14 – Capitalizing on the Industry Transformation
For FY14, we have created a rich portfolio of incentives that will ease your transition to a business profile that can better harness the opportunities the new market transformation will bring.  The value proposition for Partner Incentives is quite clear: 
In a rapidly evolving marketplace, Microsoft and partners jointly generate customer demand for our devices and services. Microsoft Partner Incentives – the richest in the industry – accelerate growth through a focus on cloud services, devices, solutions, and annuity, leading to new customer acquisition and strong customer retention.
The market potential is huge, as the global cloud market is expected to hit $367B by 2016*.  The time to move is now, to make the business model changes needed to capitalize on this huge opportunity.  A great example of this is Solution Incentives; partners who have invested in robust solution practices in the past year have accelerated profitability and are well positioned to leverage the market shift moving forward.   The largest area of growth in our incentive portfolio is Cloud Services, and we expect that in 3 years – more than 50% of our incentive investment will be focused on Cloud Services, devices, and solutions.
Strategic Focus Areas
Across our portfolio in FY14, we are making key investments within our strategic focus areas that will accelerate your revenue and growth opportunities moving forward.  These include: 
·    Cloud Services:  This is our top area of investment to accelerate customer Cloud adoption, regardless of how customers choose to utilize Cloud Services.
·    Solution:  We invest to build partners’ technical selling capacity that allows them to unleash their services practice to leverage the explosive industry transformation to IT-as-a-Service with Microsoft’s Enterprise solutions.
·    Annuity:  Microsoft richly incentivizes Annuity, which secures customer relationships, enables cross-sell and upsell, and fosters a seamless transition to the Cloud through a partner’s licensing and sales expertise
·    New Customer Acquisition:  Partners can accelerate expansion of their customer base and introduce new revenue streams through incentives aimed at cost of acquisition.
All FY14 incentive launch materials can be found on the Partner Incentives MPN Site.  We look forward to seeing many of you at our Worldwide Partner Conference next week where we will be discussing FY14 partner incentives in more detail. 
FY14 is the year to move so you can capitalize on this exciting industry transformation.
*(Gartner – excluding cloud advertising)​