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Microsoft reveals its subtle services strategy

Douglas Hayward Ovum

Published: 26 Aug 2005 17:05 BST

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Senior UK staff from Microsoft Services claim the company is creating a series of standardised service modules, known internally as SKUs — short for 'stock-keeping units'. These are basically a mix of software, services and Microsoft-developed intellectual property that deliver 'predictable results' for clients. Multiple SKUs can be combined to form a Service Delivery Solution (SDS) — essentially a pre-packaged services engagement aimed at solving a particular problem. Microsoft is considering whether to allow partners to license and sell SKUs, which seems likely — though probably with a snappier name.

Second, Microsoft Services is making more noise about its Lighthouse programme. This is a series of high-profile software implementation projects, led or assisted by Microsoft consultants, which showcase key Microsoft technology and generate case-study material for marketing. These engagements always involve Microsoft partners, and are meant to pass new skills to partners as well as build demand for future partner engagements.

Lighthouse projects often involve leading-edge use of Microsoft technology — the consultants sometimes work with Microsoft Research staff to develop new technologies to deploy within SKUs. Some engagements will generate new SKUs that can then be resold elsewhere. Although Microsoft often primes Lighthouse projects using its own consulting force (it has 200 consultants in the UK alone), it passes about two-thirds of all Lighthouse work to independent systems integrators (SIs).

Third, Microsoft has developed an IT consulting service called Microsoft Technology Strategy Service (MTSS). An MTSS engagement is led by an enterprise strategy consultant (ESC) — a Microsoft employee whose salary is paid by the customer (or sometimes by a Microsoft partner). The aim is to advise clients on...

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