In Microsoft's cloud channel, ISVs are kings

In his keynote address on Wednesday, Steve Guggenheimer, Microsoft chief evangelist, explained the programs to incentivise ISVs, tied to the existing silver and gold competency program.

"We need to find the right way to support the ISVs, connecting them with all the other partner types and creating an even richer ecosystem as the importance of software and unique IP continues to grow. How do we create a connection between those companies that build on the Microsoft platforms, and our traditional sales force and our traditional partner force?"

The more apps that an ISV develops, the greater the rewards. If the ISV drives consumption of Azure, Microsoft may start to offer co-marketing. As consumption grows, Microsoft's field sales reps could start to push the product, said Guggenheimer.

"The further we go together, the more we can do custom go-to-market materials. We can connect your sales force with our sales force. We want to do as good a job as possible to connect the ISV side of our partner community, not just with our sales force and marketing engine, but with all of you as partners."

For incoming global channel chief Gavriella Schuster, who oversaw the Microsoft Partner Network (MPN) before replacing her former boss Phil Sorgen, there is a significant redefinition of what the channel actually is.

"MPN becomes truly what the name says – the partner network, that creates the connections that enable them to go to business together and build their business with Microsoft, without Microsoft being in the middle, without being the hub, but really by creating a whole lot of little solar systems," said Schuster.

What about those resellers that don't want to become software developers?

"Not all resellers are going to go that way, One of the awesome things about our VAR channel is they know the customer really well. They are trusted. We want to say – don't change. Be that local face. Here is more we can give you to sell. We are going to fill up every socket you sell," said Schuster.

And how about the resellers that want to stick to their knitting? The ones that are sick of hearing about cloud and apps and ISVs?

"You do have your laggards like in any curve," said Schuster. "For those partners that say, 'I don't want to change', we go, 'OK you don't have to change'. If you are making money and you're happy, that's fine. We're probably not going to pour a lot of investment back into you… but we have nothing against you."

Steven Kiernan was a guest of Microsoft at Worldwide Partner Conference