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May 9, 2024
Ulrik Lehrskov-Schmidt

Preferred Pricing Partner

We have helped Independent Software Vendors (ISVs) in the Microsoft Ecosystem bring technologies to market and transition from license-based on-prem models to SaaS.

In collaboration with Ulrik we made a review of our costs, visualized the added value in a way that would make sense for the head of the claims department and ensured the legal framework of our contracts, so we would not have to renegotiate every time we had to adjust the prices”

Company
Microsoft
Stage
Corporate
ARR
$50-150M

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Ulrik is the only one we have found, who can make the bridge between all these new technologies and cost structures and turn it into a profitable business.”

Dirk Kooreman, Partner Development Manager

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Issue

Microsoft has a large network of partners from Independent Software Vendors (ISVs) to System Integrators (SIs) who are all part of Microsoft’s overarching strategy to grow Azure market share and top-line revenue.

However, Microsoft often faces two key issues: partners typically struggle to build effective SaaS pricing and business models, and they don’t know how to account for variable Azure cloud costs in their pricing. Unpredictable costs introduce unknown risks, which software vendors either pass on to customers through equally unpredictable and complex pricing models or absorb themselves reducing profitability.

Microsoft needed an external advisor who could balance the complexity of the Azure cost structure with practical pricing models for ISVs that end-customers would understand and accept.

Preferred pricing partner

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“We initially entered into contact with Ulrik, because we had a mission to complete within Microsoft. In our team we work with software houses, and our customers can be anyone who develop software to sell to their customers. Our division is here to help software houses make the digital transformation shift to cloud technologies.”

Dirk Kooreman, Partner Development Manager

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The network of partner managers across Microsoft Western Europe regularly introduces us to relevant ISVs and SIs when pricing, SaaS transformation, or hybrid revenue models (e.g., time & material + recurring revenue) are needed.

We engage directly with these partners without commercial involvement from Microsoft. As independent advisors, we do not represent Microsoft or Azure, and have no obligation to favor that relationship—ensuring our advice is always in the client’s best interest.

Select Microsoft customers

We have helped and continue to help local Microsoft ISVs across Denmark, Norway, Sweden, the Netherlands, Belgium, Germany, France, Portugal, Italy, Spain, Switzerland, and Poland.

We’ve completed around 40 projects within the Microsoft ecosystem, including:

Create and implement packaging and pricing for large financial software solutions.

  • Transition market leading technology from on-prem perpetual to cloud based SaaS.
  • Increasing net margin from 60% to 85% for a $100M ARR software solution by raising prices
  • Building a global product division and product strategy for a large System Integrator
  • Designing a pricing model for a global health tech product with zero Azure cost risk - even under 3-year fixed-price hospital contracts
  • Developing financial SaaS metrics and aligning them with reporting frameworks for large SIs
  • Designing land-and-expand models to ensure profitability under EU tender constraints (e.g., Belgian municipalities)
  • Advising AI scaleup on pricing and offering to sell to large enterprise customers.
  • Create profitable global partner model for large open source software solution.
  • Conducting price calibration and discount strategies based on competitor price analysis
  • Building partner and reseller strategies, contract frameworks, and pricing models
  • Facilitating joint venture tech partnerships
  • Leading procurement negotiations that saved $15M annually in SaaS vendor costs
  • Supporting commercial negotiations for enterprise SaaS deals ranging from €500K to €60M annually
  • Assisting in SaaS company M&A deal structuring
  • Acting as long-term commercial advisors on retainer to executives guiding SaaS business expansion

Notable mention includes TietoEVRY, AGFA Group, SAXO Bank and Cegeka.

Results

The partnership with Microsoft has lasted and grown since early 2018.

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Rethink how much you charge.

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