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03/09/19
17:41
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Originally posted by Vmk Research:
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LVT has had co-seller status with MSFT for at least 2 quarters. There is a significant difference between a MSFT re-seller agreement and a co-seller agreement (as Im sure most folks who follow tech closely know) In a re-seller arrangement (Which LVT also has) MSFT agrees to allow the vendor to sell software through MSFT's vast network of re-seller partners. You present at MSFT conferences and sign bilateral agreements with the myriad of agents and IT firms that sell MSFT Azure, 365 etc. If you are good at working within the MSFT eco-system and know how to attract partners/re-sellers and teach them, one by one, the advantages of your product, you can do very well. Many great products have got their start this way. A co-seller arrangement takes you to a whole new level. As a co-seller you walk into the room with MSFT. There are hundreds of thousands of re-seller arrangements. The co-seller is a much smaller universe that provides access to the largest enterprises. The average co-seller sale is 6X the size of a reseller deal, LVT has already gained this status because MSFT loves the quality of LVT UX and the way it makes MSFT products more attractive. The merger with Wizdom strengthens this position. It is even possible that MSFT introduced Wizdom and LVT to each other, even if they did not, it is certain that they encouraged and smiled benignly on the deal. It puts together MSFT's two most important UX portals into a single whole. So.....its not new news that LVT is a MSFT co-seller. Although it is good to remind us! It is news that LVT has added Teams to the menu of the core LVT Design portal. To understand this, we have to realize the competition between Teams and Slack (and a few other good products out there). MSFT sees this as very important high ground that they must capture to keep them at the center of enterprise software. MSFT are encouraging all their resellers and inside sales teams to push AI and Teams. Doubtless they reach out to their co-sellers who they view as special relationships to include a Team plug in for their software. Those that don't will not get the same introductions as those who do. LVT has responded quickly. It not a surprise , but it is further reassurance of the deepening relationship that LVT is building within the MSFT ecosystem.
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Yeah saw the 6x coseller deal at the recent conference...LVT have no choice but to build on Teams it is actually displacing LVT...not sure MS would be that stupid to pay up for a business who's main asset is goodwill from inflated acquisitions. 1. Microsoft is a products company...MS margins are very high because it sells the same thing over and over again 2. LVT is a solutions company...LVT margins are negative because it customises each implementation for its enterprise client base Microsoft like LVT because they can transfer risk to LVT who are dependent on MS for its existence. 2 unequal partners as born out by the financial statements Sell into the CR