To understand the Microsoft Partner Program, it is beneficial to understand the culture of Microsoft.  Part of that is to understand that deeply rooted in the Microsoft corporation is an understanding that developers and ISVs are a critical part of their success.  Microsoft is clearly a software company.  Their success as an organization requires that they have hoards of developers and ISVs building applications that require their software, and many partners that install, configure, and support deployments of their software, and hardware vendors that pre-ship with their operating systems and software.  If you look at the partner program, you will see these in spades.  Microsoft places a very high priority in their business on their partner program and directly in partners - this is a core value in the Microsoft organization.

It is also necessary to shed a few common misconceptions about Microsoft in order to properly understand the value of the partner program and how to work with Microsoft.  In the consumer market, Microsoft sells to millions of people, and it is just not possible for Microsoft to have a one-to-one relationship with these customers.  In the consumer space, Microsoft needs strong partners in order to support those customers.  Unfortunately, this creates a separation of the consumer customer and Microsoft and you will see and hear people venting their frustrations against Microsoft as this big faceless organization.  This is just a consequence of the type of relationship Microsoft has with the end consumer.  That said, there is a completely different face for the Microsoft organization if you approach them as a developer.  Developers get this amazing program called MSDN which gives developers licenses of all the Microsoft applications, documentation, and even technical support.  Microsoft sponsors a number of developer communities and has a number of events that are tuned for a close relationship between Microsoft and the developer customer.  As a developer, you will see a completely different side of Microsoft.  Microsoft spends even more time and effort in their partner program, resulting in one-to-one relationships with partners.  Once you become a partner and start engaging Microsoft, you will see a whole other side of the organization.

The Microsoft Partner Program has three basic levels - Registered, Certified, and Gold Certified.  The Registered Member level is free and simply requires some registration information in order to participate.  There are still a number of benefits to becoming a registered member partner, but the real benefits are in the higher partner levels.  The Certified Partner level is reserved for companies that meet basic qualifications, including earning 50 partner points and paying an annual fee.  The Gold Certified Partner level is the highest partner designation and is obtained by earning 120 partner points.  Please see the following url for information about the overview of the various partner levels: Microsoft Partner Program Overview

There are a lot of different types of companies that partner with Microsoft, so Microsoft has added the concept of 'Competencies' to their partner program.  These competencies have to be earned by partners and help partners demonstrate that they are competent and specialized in particular areas within the partner ecosystem.  There are a number of different competencies and most of the recent changes in the partner program are in the area of designated competencies.  Partners earn points by obtaining competencies and the partner logo includes room for 4 competency designations.  Each competency, once earned, includes additional benefits in the partner program.

At the time of writing this article, there are 13 competencies.  For more information on the competencies and the requirements and benefits of each, please see the following url: Microsoft Competencies Overview

The Certified and Gold Certified levels use a points system as part of the requirements to earn those specific certifications.  It takes 50 points to become a certified partner and 120 to reach the gold level.  The good news is that there are a lot of different ways to earn points.

Points can be earned by obtaining competencies.  Your first competency will earn you 30 points, and with a current 'special' running right now, there is an additional 20 points, giving you the 50 points you need to become a certified partner.  With or without the bonus points, obtaining competencies is the fastest and easiest way to earn points within the program.  There are a maximum of 60 points that can be earned based on competencies alone.

Points can be earned by getting your staff trained and certified.  This gives your staff professional designations that help you demonstrate your competence to your customers in addition to providing points to the partner program.  Each designation has a different number of points, but for a few examples, MCSE, MCSD, and MCDBA earn 3 points each, and MCSA earns 2 points, and MCPs earn 1 point.  Keep in mind that anyone that passes a single exam automatically gets an MCP designation.  The maximum points for certified professionals is 40.

ISVs can earn additional points by having their products tested.  When an ISV tests a product, they earn both an ISV competency as well as additional points based on the tests.  A maximum of 70 points can be earned in this category.

2 points can be earned by customer references.  Customer references are required to earn competencies, but you can earn up to 20 additional points by providing additional customer references.

There are other ways to earn points, based on customer satisfaction surveys, Microsoft sales performance, becoming an SMB specialist, and other activities such as attending the worldwide partner conference, customer assessments, and becoming part of the ISV royalty program.

The nice thing is that if your business goals include providing professional services and products that align with the Microsoft platform, you will likely want to have your staff and product certified anyways, and successfully implementing projects will give you the necessary customer references to obtain the competencies and earn sufficient points to become a certified or gold certified partner.

Please see the following url for the partner points estimator, which is an online tool that allows you to see how many points you will earn as you achieve particular goals within the partner program:  Partner Points Estimator

The microsoft partner program has so many benefits that it is hard to list them all in this article.  In addition to the official program benefits, your organization should realize a lot of additional benefits in partnering with Microsoft.  The highlights of the official program benefits include software licenses, MSDN and TechNet subscriptions, technical services consulting hours, access to professional marketing and sales materials including demonstration toolkits, assistance in sales processes, and my favorite - business critical phone support.

Software licenses are provided for internal use and for demonstration use.  The products that are licensed and the number of licenses are dependent on your partner level plus the competencies that you obtain.  For example, at the Certified Partner level, there are 25 licenses for internal use of Office 2007 Enterprise, and ad the Gold Certified Partner level, this increases to 100 licenses.  If you also obtain the Information Worker competency, Certified Partners receive an additional 5 licenses and Gold Certified partners an additional 25 over and above the base licenses included in their level.  For more information, please see the following url: licensing benefits summary

I recommend that you consider partnering with Microsoft a strategic move for your organization.  Don't approach it lightly; approach it with a strategy with clear objectives and goals.  Your plan should include selecting relevant competencies that you can earn.  Pick the competencies that line up with your own business plan - don't pick competencies that do not have meaning for your organization.  Use the partner points calculator and determine your best strategy for obtaining Certified Partner and Gold Certified Partner levels within a reasonable period of time and effort.  You should be able to build a project plan that would include training your staff, meeting competency requirements, and other activities that will earn you enough points to obtain your desired partner level.

You should also spend some time filling out your company profile information and the solution finder profile for your company products and services.

Finally, I would highly recommend that any new partner attend the Microsoft Worldwide Partner Conference that is held in the US each summer.  This conference will give you the appropriate contacts and information to learn how to leverage the partner resources available to you from within the Microsoft organization.  The website for this annual event is at the following url: Worldwide Partner Conference Website

I also recommend reading Partnering With Microsoft: How to Make Money in Trusted Partnership with the Global Software Powerhouse from cover to cover.

Your success in partnering with Microsoft will depend on many factors, including how well your business goals align with Microsoft's and how you operate within the partner program.  The partner program has many benefits, but remember that a good partnership is not a one-way relationship.  To maximize the value you get out of a partnership with Microsoft, you will also have to put effort into it and be a good partner to Microsoft as well.  It is advised that you pay close attention to Microsoft priorities and ensure that your business aligns as much as possible to those priorities where they overlap with your services.

Microsoft has put a lot of thought, effort, and value into their partner program.  Microsoft recognizes the value of their partners and will continue to have one of the strongest and highest value partner programs in the industry.  The partner program will continue to evolve, but Microsoft has demonstrated in the past that changes will be made carefully and with great forethought to the impacts on the program and their partners.  Partnering with Microsoft should not be about hanging another logo up on your wall - it should be a strategic initiative that is done with forethought and deliberance.  Once you get into the basic partner programs you will come into contact with various Microsoft staff.  The staff that run the partner program are there to help you with your partnership.  They have a lot of experience working with Microsoft and helping other partners do so.  Listen to their advice and consider them your best ally.  Make sure that they truly understand your business and how it can help improve Microsoft's bottom line.