Yes, you're right Microsoft are co-selling LiveTiles products. Which is amazing! But LVT can also co-sell Microsoft products. It doesn't matter who gets the lead initially. They have the opportunity to sell both products under the same deal.
Notice who gets the contract at the end. The partner. So LiveTiles in this instance. I would think revenue would be reported under the normal customer receipts, just like any other contract.
It's early days in this co-sell arrangement. It only came into place in September. So I suspect we've yet to see the full impact of this arrangement on LVT's revenue.
Also back then, there were only 13 million active users on Microsoft Teams. Now there are over 70 million active users and that's continuing to grow at a rapid pace.
As far as the US government co-sell approval, that's a very exciting opportunity for LVT. It sounds they've already started to reap the rewards. Karl recently mentioned in an interview that they've signed some big health-related contracts in US as a result of covid.
This approval means LVT may also be able to benefit from the $10 billion dollar JEDI contract Microsoft won with the US Defence Force. Though that has unfortunately be held up due to a court injunction from Amazon. But hopefully that should be resolved in the near term as Amazon is running out of reasons to hold up the contract.
Sure, anyone can get Teams for free. You can also sign up for Gmail for free. But how many enterprise customers/businesses use the free version of Gmail as their email service?
I'm not suggesting LVT's Telehealth Teams product/integration (whatever you want to call it) is the be all end all of telehealth solutions. Obviously that's not the case. But the fact is, they have a large addressable market due to their strong Microsoft partnership. At lot of customers in the health field already use MSFT products. And it's much easier to integrate telehealth into their existing solutions, than to roll out an entirely new product. So if LVT can tap into even a small portion of those MSFT customers wanting a telehealth solution, that gives them an opportunity they didn't have before.
Now that covid has forced telehealth into the mainstream, and patients and medical staff become used to it, I expect we'll only see this area grow. With phone-based appointments replaced by video-based appointments. After all, how do you do a physical examination over the phone?
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