RAM | Reseller Advocate Magazine: Issue 43



		By Beatrice Mulzer
		Too many times have I heard the phrase "think outside the box." So what's really out there? I sure would like to know. The one thing I do know is what's inside the box, the Microsoft Windows Small Business Server (SBS) server machine box. SBS 2003 is the fourth major generation release of Microsoft's BackOffice bundle bundle for small businesses. I consider it the moneymaking box, because this time Microsoft nailed it right on the "S" in SMB (small-medium business) market. No, this isn't a Microsoft commercial, but I will show you how to make money by knowing how to position SBS 2003 and by using a simple business model. I can make this audacious statement because one of my multiple personalities makes her living as an SBS 2003 consultant. SBS 2003 is an affordable product ($599 retail for Standard Edition) geared toward small business, bundled with Exchange Server 2003, Microsoft Outlook 2003, Windows SharePoint 2.0, Microsoft Shared Fax Service, and a whole lot of wizards running on top of the Windows Server 2003 core operating system. The Premium Edition ($1,499 retail) includes ISA Server 2000 (soon ISA 2004) as well as SQL Server 2000 and Front Page. For more product details check out www.microsoft.com/SBS. First of all, I have to dispel some myths about SBS 2003 and do a little explaining on the features included. Yes, all the applications have to be loaded onto the same server box because of optimizations invoked by the SBS development team. No, there are no issues with running Exchange and other apps like ISA 2000/2004 or SQL 2000 together on SBS 2003. The old adage that Microsoft gets it right on the third try holds true with SBS. It hit its stride with the third release (SBS 2000) and this fourth release finds it running at a full sprint. So, if you had horrific experiences with SBS 4.5 in the late 1990s, its time to put those memories aside and take another look at the product. For all you MCSE types out there, I used to pride myself in knowing the ins and outs of NT 4.0 and being a tech head. Now that I have matured some, my focus has shifted from playing with IT to making money with IT. I have learned that the wizards in SBS 2003 are really my friends. I let them do what they were intended to do. Contrast that with my prior MCSE-like behavior when I'd use native tools and even the command line to reach under the hood (a no-no in the SBS world!). That's the beautiful thing about SBS 2003. The product is positioned by Microsoft as an easily installable out-of-the-box networking and productivity solution. It's so easy that end-users can install it on their own and have a fully-functional, foolproof, immediately available, productivity-generating machine. Ahem, yeah right, one thing Microsoft forgot to check is the reality of small business out there, which is that owners and employees are so busy that they hardly have time to read the installation manual, let alone have the know-how to figure out the appropriate hardware, network gear and workstation requirements, a skill you just don't acquire over the weekend. But to a seasoned techie, SBS is easily digestible and quickly consummated. OK, back to the wizards. Designed with end users in mind, simplified wizards will be your moneymakers and time savers. You can literally install an SBS 2003 network within a few hours. That includes setting up the Internet connection and user accounts, joining clients to the domain, configuring remote access, and configuring email. Any IT professional will be able to walk through the SBS 2003 install, configure the SBS box and services, and walk away clean. It used to be that you weren't allowed to have additional domain controllers (DC) on the network, but with the 2003 release, you now can add additional DC's. This allows for hosting Line-of-Business (LOB) applications or Terminal Services in application sharing mode on a separate box to support individual business's mission critical applications. Mobile computing support for SBS 2003 is excellent and so easy to set up that I almost want to call it "the best kept secret." SBS clearly extends features in Exchange 2003 and Windows Server 2003 not to be had in any other product. SBS 2003 installs a Web-based user interface called "Remote Web Workplace" right out of the box that allows users to connect from just about any client and browser interface (best used with IE6.0) over the Internet to their particular XP-based workstation. A wizard called the Connect E-mail and Internet Connection Wizard (CEICW) will also configure Outlook Web Access and Outlook Mobile Access as well as RPC over HTTP. There are no white papers, no registry hacks, and no scratching heads; just click "Next" in the CEICW. SBS 2003 supports WAP 2.x and XHTML browser-based devices. I have an HP6315 PocketPC where I can receive my email, sync my schedule and contacts, and with Active Sync 3.8 receive SMS messages from Exchange and sync my task list and Global Address List. RPC over HTTP essentially allows the full MAPI client to send encapsulated RPC commands to retrieve your email from Exchange. So when I am staying in a hotel or at an Internet café, I no longer have to VPN in to get my email. All I do is launch my Outlook 2003 client once I am connected to the Internet, and Outlook will connect over the Internet to the Exchange Server automatically. Fetch, Fido, fetch. Anyway, there is plenty more cool stuff included in SBS 2003, but I want to get the point across that it is a mature, reliable product. Otherwise, I wouldn't sell it to my clients or tell you about it. If you come from the usual environment and have the MCSE (enterprise) mentality, you should get appropriately acquainted with SBS 2003. Thinking you can just show up and run wizards without knowing about them is not good karma. SBS is a different mindset and it takes some adjusting to. For a quick adjustment, I highly recommend the Small Business Server 2003 Best Practices and Advanced Windows Small Business Server 2003 Best Practices books written by Harry Brelsford, also dubbed the "SBS 2003 Guru" worldwide. If you are unfamiliar with SBS, tackle the Small Business Server 2003 Best Practices first. You can purchase bundled sets at www.smbnation.com, and while you are there, sign up for the free monthly SBS 2003 newsletter. Now that I have established that this really is a product worth looking into, let's talk about the moneymaking side. We don't need to discuss software resale margins or that installing networks can practically be done by any high school kid. Installing a SBS 2003 Server will yield around $3,000, configuring most server-side settings as mentioned above. The one-time server install is a commodity, but you now want to focus on value-add services. There are several avenues where most resellers miss the boat. They don't finish what they started. They install the stuff, sell some additional software, and are done with the job instead of asking for more business. They walk out and don't ask for more opportunities like offering training or customizing applications. You could offer mobile device integration, mobile client setup with VPN, remote access with Remote Web Workplace, RPC over HTTP, Outlook Web access — you get the idea. Now you can start billing high-dollar amounts because you are truly providing a value-added service. The best thing is that all these complicated, high tech-sounding services are wizard-based setups will take very little of your time but provide great value to your client. Do you have to have an MCSE to look good? Not in this case. You are catering to small business and want to distinguish yourself by being knowledgeable and experienced in the small business space, so consider becoming a Microsoft Small Business Specialist. Yes, you heard right. Currently there are three different types of Microsoft Partner programs: Registered, Certified, and Gold Certified. Microsoft is now adding a fourth partner program to its ranks, the Small Business Specialist. This program has been mentioned in bits and pieces at public-facing Microsoft events such as last year's Worldwide Partners Conference (WWPC) in Toronto. It's going to be officially launched at the WWPC in July 2005 in Minneapolis. The Small Business Specialist program is being created to show Microsoft's support for technicians and consultants that service the small business space. In order to achieve this credential, you must pass one of two Microsoft certifications, complete a sales assessment, purchase the Microsoft Action Pack, and complete the sign-up process. With respect to the certification exam requirement, you can take either 74-134: Pre-installing Microsoft Products using the Pre-installation Kit certification exam (www.microsoft.com/learning/exams/74-134.asp), or 70-282: Designing, Deploying, and Managing a Network Solution for a Small- and Medium-Sized Business certification exam (www.microsoft.com/learning/exams/70-282.asp). The 74-134 exam, available as of January 2005, is a Partner Competency exam that validates that individuals are efficient and capable of deploying multifaceted IT solutions using multiple Microsoft products and technologies. This exam became available in January of 2005. The exam covers using the OEM pre-installation kit (OPK) tools to preinstall an operating system; creating and applying pre-installation images, applications, drivers, and updates; licensing requirement compliance; troubleshooting; and, of course, the pre-installation of SBS 2003. If you are more consulting-oriented, you could choose the route of 70-282. This certification exam measures your ability to design and implement solutions for the small- and medium-sized business by using Windows Small Business Server 2003 and the Windows Server System. It covers designing a business technology solution for small- to medium- sized businesses, installing and configuring SBS 2003, and supporting, maintaining and expanding the SBS 2003 network as well as installing and configuring Windows Server 2003. Harry Brelsford's study book Microsoft Small Business Specialist Primer & 70-282 Exam Preparation Guide is in the making and will become available beginning July 2005. The Exam Preparation Guide will cover the Small Business Specialist partner level and the 70-282 exam prep in detail. It will also include chapters on 74-134 and the sales assessment. If you decide to support small business networks and want to partner with Microsoft, you will have all the essentials at your fingertips. Besides needing to have the hands-on knowledge which will help you very much in this exam, I would check out microsoft.granitepillar.com/partners, a free online training site for Microsoft Partners regardless of what partner level you are currently at. If you have not signed up, become a Registered Partner (competency requirements are not needed for participation), which will get you started with oodles of free training, sales, and marketing tools. By the way, if you are not getting the Action Pack ($299 first year, $199 thereafter) yet, run over to www.microsoft.com/partners and sign up, because last time I checked it contained the SBS 2003 OEM OPK. The Action Pack also contains a license for SBS 2003, so you can install and play with it, ten licenses for XP Pro and Office 2003, Virtual PC, and more. Last and not least, venturing into SBS-land is easy since there is a very active support community out there headed by several Microsoft MVPs from Australia to Israel back to the US. It doesn't matter at what time of day or night you visit the SBS 2003 community. Virtually every time zone is covered and you won't wait long for an answer. The SBS community is located at www.microsoft.com/sbs. Click on the Support link in the left pane, and then click on Newsgroup support. Now we have come full circle. You have a core product (SBS), get certified (Small Business Specialist), partner with a well known name (Microsoft), receive free sales and marketing kits (Action Pack), and have SBS community support. SBSers in general don't carry a chip on their shoulders and welcome newcomers with open arms, sharing their knowledge and experience. But who should you target with this product? Truly, this is a niche product, and I recommend marketing to "the three As": accountants, attorneys, and architects, although SBS will fit into any type of business. I also have chiropractors, dentists, fishing businesses, retail, real estate, construction, and not-for-profit business clients. Here is a business model example on a ten-user network and the money to be made: You get a one-time charge of $3,000 for the server software install and basic configuration. Build the server for $2,500. The client is running an LOB (point-of-sale or proprietary application), so charge a $500 flat fee for the installation, or charge by the time spent installing and configuring such ($125/hr). Training users in the new environment fetches $100 per user. The client also decides decides if it needs five new workstations at $600 each. Then your client requests VPN connectivity or you configure email on their handhelds and charge $100 per device (or by time). The maintenance contract covers software and hardware support for $1,000. Initially, our example here would gross $11,000 for one installation. Give and take, use this sample table with your own price schedule and see what you come up with. Having established monthly maintenance contracts, you continue to gross $12,000 annually per client plus any additional services you provide during the year. And trust me, there is a lot more once you learn about your clients business. The idea is now to do one SBS install a month, so multiply this by 12 and you are looking at $131,000 annually for initial services. Continue to build the clientele, so you have 12 maintenance contracts from the first year installs, which will gross $78,000 (First client 12-month contract for $12,000, second client 11 months to end of year for $11,000, third client 10 months to end of year for $10,000 a.s.o). If you continue to add 12 new clients the next year, by the end of the second year you will have made $222,000 in existing maintenance contracts and $131,000 in new installs. When you start your third year, you expect $288,000 on existing contracts plus $78,000 for new contracts and $131,000 for new installs, and so on. Replace the figures in the guide with your own amounts, products, and services as only you know what your market will bring. Think this doesn't work? Stick to the plan and start thinking inside the box.

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