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Q&A from Windows Small Business Server 2003 Service Opportunities, Part 2 of 2 webcast

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Below are the follow-up questions & answers from the Thursday, September 27, 2007, webcast “Windows Small Business Server 2003 Service Opportunities, Part 2of 2” https://www.msreadiness.com/CourseDetail.aspx?id=6511). To download the PowerPoint presentation, please visit BOB Wired at: https://oem.microsoft.com/bobwired. Look for BOB Decks: US System Builder Webcast Slide Decks to find a link with a username & password to access a number of BOB Team documents.

We have also announced all twelve winners of the book giveaway in the Windows SBS 2003 Service Opportunities Book Giveaway Winners posting. As always, thanks for attending!

I also wanted to thank our Microsoft partners who participated during the webcast and answer your questions below.

· Karl Palachuk, KPEnterprises Business Consulting Inc., Hardware as a Service

· Dana Epp, Scorpion Software, Security

· Robert Guchee, Parsec Computer Corp., Windows Mobile

· Scott Scrogin, Heartland Technology Solutions, Business Process Improvement

Q: Where can I learn more about all of the events in the 5W/50 series?

A: Please visit https://www.mssmallbiz.com/sbstraining.

Q: Where can I download the PowerPoint presentations for the 5W/50 series?

A: We have created a Windows Live SkyDrive, please visit https://cid-63265f352b9da32c.skydrive.live.com/browse.aspx/5W50%20Webcast%20Downloads/.

Q: When is the webcast on the Business and Technology Assessment Toolkit?

A: This event is available for on-demand viewing, please visit https://www.msreadiness.com/CourseDetail.aspx?id=6425.

Q: When is the webcast on Managed Services?

A: This event is available for on-demand viewing, please visit https://www.msreadiness.com/CourseDetail.aspx?id=6448.

Q: Do you do an assessment first before implementing Hardware as a Server (HaaS)?

Karl: Well, all our clients need to be on our Platinum Managed Service Agreement (MSA) before we'll sell HaaS. So there's a separate process for making sure the entire environment is up to spec. HaaS equipment is all new, and software is all new, so there's no need to add an additional assessment. Taking a step back: Clients do need to have assessment in order to go onto a managed service agreement.

Q: What if the customer decides to end the MSA in the middle of the contract period because they have a change in management, philosophy or just plain think it’s too expensive?

Karl: We have a buyout that is based on a percentage of the original equipment price. Basically, we make that pretty easy. We've only been doing this for 8 months, but so far no problems.

Q: When a technician works on a computer at a customer's site where all the computers are not covered by HaaS, how do they know that it is covered by HaaS and how do they let AR know it was a HaaS service as opposed to a non-HaaS service?

Karl: First, our clients must be on Platinum MSA, so all machines are covered. The only issue would be if there were a hardware problem. We tag the machines with our own asset tags, so it says "Property of KPEnterprises” on the machine, and work gets done under the HaaS service agreement. The tools we use are Kaseya and Connectwise.

Q: Is the MS Financing in your name or in the client's name?

Karl: Financing is in our name. Note: ALL HaaS agreements must be on a credit card. So the client's card gets charged on the first of each month. And we pay Microsoft the same day. So we have our profit in the bank on the first day of the month. I love the first day of the month!

Q: Is depreciation handled on your books?

Karl: Yes. We own the equipment, so both value and depreciation go to our bottom line. This is a good way to increase the measured value of your business: you have assets.

Q: If you own the equipment, are you liable for your customer’s business continuity?

Karl: Yes, to the extent that the HaaS machines are business critical. This is no different from a standard managed services agreement. All of our MSAs cover servers. So we're responsible for uptime companywide to all of our clients. HaaS doesn't change that.

Q: Does HaaS include LOB applications, anti-virus software, etc., and the associated maintenance agreements?

Karl: It can cover anything because we use a formula that allows the client to pick whatever they want and we'll just throw it into the HaaS "magic formula." Basically, we add a premium for the managed service piece and then run a calculation on the financing payment so we get three years worth of payments in 24 months. Year 3 is 100% profit.

Q: Who is the software licensed to? You or your client?

Karl: Software is provided through SPLA. So we are "renting" it to clients. So more details, please visit https://www.microsoft.com/licensing/programs/spla/default.mspx.

Q: How do you partner with cellular service providers?

Robert: It’s rather informal at this time, just personal relationships with the business service providers at Verizon and AT&T. We did have them attend and present at our mobility events as well.

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