Microsoft and Telstra form alliance to sell business services

The deal, officially announced today, means the two companies will offer hosted business applications through Telstra’s T Suite portal where businesses can access software applications, mobile services and devices, and integrated computer and telephone services over Telstra’s Next IP and Next G networks.

Mobile services and devices will include an all-in-one mobile email, calendar, contacts, web browser, business software and phone solution including security features, automatic software upgrades, support and data plan.

A new user-interface developed by Telstra will give users access to its business applications on Windows Mobile phones.

Finally, Unified Communications (UC) will integrate Telstra’s IP Telephony service (TIPT) with Microsoft Office applications, including Office Communicator.

According to Nick Mayhew, group manager, partner strategy and marketing team for Microsoft, it is not changing the role of the reseller but introducing a new option for customers to buy.

“We don’t see this as being a cannibilsation of the market. From a partner channel margin perspective, they will be in a better situation today,” said Mayhew.

“For the reseller community there will be new ways to add services and make money, the game evolves as always. It creates new opportunities to acquire new customers,” he added.

The companies said the first products will be introduced to the market by mid 2009 but they are still finalising governance of the services. They would not disclose their agreement on revenue sharing.

Speaking at the launch in Sydney was Holly Kramer, group managing director, product management, Telstra and Tracey Fellows, managing director, Microsoft Australia.

“Our customers are seeing convergence between networks and applications and between fixed and mobile devices. We are turning this convergence into meaningful products that deliver a better user experience and productivity benefits for their businesses,” said Kramer.

According to Fellows, the alliance based services will be sold through existing Microsoft and Telstra resellers.

“There are thousands of Australian IT businesses, consultants and partners who resell or distribute Microsoft and Telstra products and through this planned alliance we intend to help them take advantage of new opportunities to invest and grow their businesses and open up new markets,” Fellows said.

Mayhew added that there will not be a huge change for Australian resellers and said he was always looking for feedback from partners.

“Of course, there will be some concerns but it is our job to understand and turn it into a positive. We see it as an additional channel to market rather than a change,” he added.

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