3 Critical Success Factors for MSPs Moving to the Cloud


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This presentation was delivered at the Cloud Partners Conference in Chicago on September 11, 2013. It describes the 3 Critical Success Factors for MSPs who are transforming their business model to become a Cloud Service Broker.

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3 Critical Success Factors for MSPs Moving to the Cloud

  1. 1. 3 Critical Success Factors for MSPs Moving to the Cloud Wednesday, September 11 9:30 – 10:15 a.m. McCormick W471b
  2. 2. presenter Dave Zwicker Partner & Co-founder MSPexcellence @cspcommunity www.cspcommunity.com
  3. 3. The Cloud: Threat or Opportunity?
  4. 4. Is the Cloud a Threat to MSPs?
  5. 5. Or is the Cloud an Opportunity?  Public cloud services doubling to $210B by 2016, IaaS growing the fastest with 40% CAGR  3 in 10 midsize firms plan to implement public cloud solutions and 2 in 10 plan to add private cloud solutions  Channel partners will increase their reliance on cloud software and services from 22% to 27% from 2013 to 2014  Study finds channel partners selling cloud solutions experience double gross profits and faster growth
  6. 6. How Do MSPs Profit From the Cloud? • As a Cloud Service Broker (CSB): • Reseller • Integrator • Aggregator • Other • As a Cloud Hoster/Service Provider • Hybrid Models are Everywhere • Some combination of VAR/MSP/CSB/CSP
  7. 7. Three Critical Success Factors 1. Build a Cloud Business Growth Plan • Business Model • Revenue Trajectory • Growth Targets 2. Create High Value Cloud Solution Bundles • Cloud Service Offerings • Added Value Services • Solution Bundles and Pricing 3. Build a Cloud Solutions Sales Engine • Selling Business Outcomes • Funnel and Pipeline Management • Integrated Marketing Machine
  8. 8. CSF#1: Cloud Business Growth Plan • Business model • Revenue sources • Deal economics • Revenue trajectory • Cost of acquisition • Cash flow • Profitability • Operating plan • Performance targets
  9. 9. CSF#2: High Value Solution Bundles Map Cloud Services to the Major Adoption Trends: • Unified Communication and Collaboration • Mobility Solutions (including BYOD) • Hosted Business Applications (SaaS and VDI) • Virtual IT Infrastructure (IaaS and PaaS) • Security and Business Continuity (BDR) • Total Service Management (Hybrid IT environments)
  10. 10. CSF#2: High Value Solution Bundles Create Cloud Solutions with Professional Services: • Planning & Design Services • Customization & Integration Services • Deployment & Migration Services • Technical Support Services • Administrative & Operational Services • Strategic Advisory Services
  11. 11. CSF#3: The Cloud Solutions Sales Engine Checklist: The Top 10 Sales Engine Essentials:  Sales model (direct/indirect, in/outside, FTE/agents)  A formal program for hiring, onboarding and training  Solution sales tools and customer-facing materials  A solutions-based lead qualification process  A formal sales process (sales cycle stages)
  12. 12. CSF#3: The Cloud Solutions Sales Engine The Top 10 Sales Engine Essentials (continued):  Performance metrics (sales quota & funnel metrics)  Aligned targets (leads, conversion, oppty’s, bookings)  Cost of customer acquisition (under 12 months GM)  Ongoing solutions sales training and assessment  CRM integration and reporting (funnel metrics)
  13. 13. The Customer Acquisition Process Measure, Monitor & Manage Your Funnel Metrics  Conversion Rate  Qualification Rate  Close Rate Suspects Prospects Opptys Lead Generation  Lead Volume  Lead Source  Cost per Lead Customer Acquisition Quantity Focused Quality Focused  Sales Cycle Time  Marketing ROI Value Focused  Avg. Sales Value  Avg. Margin Value  Customer Acq. Rate  Customer Acq. Cost
  14. 14. CSF#3: The Cloud Solutions Sales Engine Checklist: The Top 10 Marketing Engine Essentials:  Value proposition, target markets and customer profile  Evidence of your cloud solution business outcomes  Solutions content on website and marketing materials  Consistent website traffic and sales inquiries  Effective use of blogging & social media
  15. 15. CSF#3: The Cloud Solutions Sales Engine The Top 10 Marketing Engine Essentials (continued):  Webinars and events for consistent lead flow  Consistent lead-to-opportunity conversion rate  Consistent sales pipeline customer close rate  Lead nurturing program (cultivate followers into buyers)  Integrated marketing plan (programs, targets & budget)
  16. 16. Solutions Marketing Engine Plan Call To Action Fulfillment Proposal Content Marketing Strategy WHY? HOW? WHAT? Customer Experience and Business Outcomes Best Practices and Methodologies Products, Services, and Technologies Educate, Inform, Establish Trust, Demonstrate Leadership Sales Tools Literature Presentations Sales Enablement Telemarketing Email Events Outbound Marketing PPC-SEO-PR Social Media Website-Blog Inbound Marketing Execute
  17. 17. Materials For Attendees • Business Modeling Tool • 3-Year Cloud Business Revenue and Profitability Model • Driven by customer value and acquisition rate assumptions • CSBadvisor Service – Readiness Assessment • Self-Assessment Form (7 business readiness categories) • Free 1-hour review session (conducted by MSPexcellence) • eBook: “3 Critical Success Factors …” • Overview of the concepts and strategies presented today • Available at www.CSBcommunity.com (information site)
  18. 18. QUESTIONS
  19. 19. contact Dave Zwicker Partner & Co-founder MSPexcellence dave@mspexcellence.com @csbexcellence www.csbcommunity.com