How to Leverage Business Partners Migration to SaaS / Cloud

How to Leverage Business Partners ’ Migration to SaaS/Cloud ? Loic Simon [email_address] +33 6 76 75 40 71 http://www.linkedin.com/in/loicsimonibm http://www.twitter.com/cluballiances http:// www.cluballiances.com Business Development Executive - Club Alliances Business Partner Organization - IBM France

Agenda Creating & Leveraging SaaS/Cloud Channels Questions & Discussion ! Cloud/SaaS : Situation & Challenges Club Alliances : Lessons & Perspectives

Cloud Computing – a NIST* Definition

« Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction ».

* National Institute of Standards and Technology [US]

What is driving Cloud Computing ? Fast growth of connected mobile devices Skyrocketing costs of power, space, maintenance, etc. Advances in multi-core computer architecture Explosion of data intensive applications on the Internet Growth of Web 2.0-enabled PCs, TVs, etc.

Technology advances that support massive scalability & accessibility

Emergence of data intensive applications & new types of workloads

- Large scale information processing, i.e. parallel computing

- Web 2.0 rich media interactions

- Light weight run anywhere web apps

Description of Cloud Computing

Despite the hype, few customers are adopting cloud today Source : MI analysis; Gartner, “User Survey Analysis: Cloud Computing Requires More Education and Specific Approaches in 2009,” June 2009; N=473 When it comes to cloud computing, which statement most closely describes the situation within your organization? Only 11% of respondents have a plan or are implementing cloud computing initiatives in 2009 71% of respondents are unfamiliar or are in the education phase. Portion of survey respondents Planning or implementing Not interested or waiting Buyer Behavior Other We expect to develop a plan related to cloud computing in 2009 We have already developed a plan or plans related to cloud computing and will be implementing them in 2009 We have done research and are waiting to see what cloud-computing providers emerge before we determine any kind of action plan I have heard of the term but don't know what it means We have looked into cloud computing and don't expect to develop any plans related to it or to get involved with it in 2009 I have not heard of cloud computing We are researching cloud computing and trying to see if and where it might benefit us Educating

Companies like IBM are rapidly growing their Portfolio of Offerings across Cloud framework Cloud Ecosystem Consulting Services Infrastructure-as-a-Service Business Process-as-a-Service Application/Software-as-a-Service Platform-as-a-Service Enterprises SMB Internet / Intranet LotusLive MBPS Offerings Tivoli Service Providers Information Protection Services Virtual Cloud Storage Desktop as a Service Computing On Demand* DB2 Websphere Rational SoFS Security Cloud Svcs Test Cloud SEP Security Cloud Svcs RMIS / eRMIS AOD*

The majority of RSIs/ISVs in Europe use or plan to use SaaS or Appliances to deliver Software % « Longer-term acceptance of SaaS for mission-critical business processes is growing -- not only with SMB customers, but Large Enterprises » Source : Saugatuck 2008

SaaS : Not only for CRM & Collaboration! « Although collaboration and CRM continue to lead the SaaS charge, "core" systems of record (e.g., finance, HR) and BI / CPM are growing quickly as well ». Source : Saugatuck 2008

Market moves to « Everything as a Service » !

SaaS ISV Context : The Big Switch !

ISV embracing SaaS face Challenges in many Areas HCM SaaS Solution Delivery [Run] SaaS Solution Enablement [Build] SaaS Business Integration [Implement] Integration Change Management Business Consulting Infrastructure Architecture Development Platform [PaaS] Application Architecture Managed Services Delivery Platform [IaaS] Delivery Architecture SaaS Business Development [Sell] Lead Generation & Pre-Sales Partners Recruitment & Enablement Marketing Strategy SaaS Business Model [Package] SaaS Operations & Customer Service Marketing & Distribution Channels Solution Packaging Need for : Expertise [Consulting, Models, Templates…] & Services [Support, Skills, Resources, Platforms…]

Major key Challenges include :

Financing of SaaS Business

High expense to revenue & profitability issues in first years

Business Model migration & Culture changes

SaaS revenue recognition

Evolution of existing Partnerships

Moving from « products » to « services », from « projects » to « annuity »…

Client/Server

Upfront revenue

Significant margins

Established GTM/distribution model

Project integration require PS capabilities

CIO budget

Web-native Service Enabled Application Platforms -SEAP-

Monthly subscription fees

Low margins

Role of partners not clear

Turn-key solution with little integration requirements

Functional budgets

SCENE On-premise Applications Market SaaS Applications Market

Clear GTM model from vendors

High margins

One/Two tier models in place

Importance of SI’s

Distribution with little value-add

Clear rules: MDF, Coop, etc.

Customers can contract directly with vendors

Low margins, from monthly fees

Who does what?

Turnkey solutions, agile integration projects

PS automation

Light contractual environment

Vertical market integration

SCENE On-premise Applications Market SaaS Applications Market

Migration from VAR/SI to Business Integrator !

"For traditional partners who made their money on finding IT complexity and solving it, a lot of that goes away with Software as a Service."

Darren Bibby, IDC

Make yourself essential to customers by lending business process expertise to improve their SaaS experience.

Make yourself indispensable to SaaS manufacturers top line revenue production with your sales, marketing and referral capabilities.

Provide system integration to legacy applications and across customers SaaS systems

"The Emerging SaaS Channel", 2007 IDC research report

SaaS : Need for Integration & Customization Partners

Will use MSPs as SEAP hub for customers Will build their own complete SEAP solution Will take off-the-shelf HW/SW and propose customized solution platform Will recommend IT solutions to their customers (virtual CIOs) Will recommend business solutions to their customers

Assemblers Consultants Vendors Trusted Business Advisors (TBA’s)

CPA’s

Accounting Firms

Outsourced CFO Firms

Web-Designers (B2B, B2C)

Marketing Consultants

Venture Capital &

Investment Firms

Current Webex Customers

IT Consultants

Management Consultants

Green IT Consultants

Lawyers

Aggregators Partner Ecosystem Application Environment Functional End-User Customers (non-IT) IT Environment

SaaS/Cloud Distribution & Influence Channels will take various forms…

… including « Vertical Channel »

… with various and complementary roles

SaaS/Cloud Ecosystems

SaaS/Cloud Actors : « Augmented Reality » !

Multiple Business Models, blurred !

Distribution & Go-To-Market as a Key Differenciator for « SaaS/Cloud Platforms »

Club Alliances is an Initiative to increase IBM France’s « Force of Gravity »

The IBM France Club Alliances Initiative

ISVs, Integrators and Consultants collaborate to…

Formalize

Sell

Deliver…

… Business Solutions, powered by IBM…

for Industry Verticals

and Lines of Business…

… as-a-service :

BPaaS [Business Process as a Service]

SaaS [Software as a Service]

PaaS [Platform as a Service]

IaaS [Infrastructure as a Service]

ISVs, Integrators and Consultants come to Club Alliances to develop their « as a service » Business by :

Forming relevant partnerships and alliances

Co-building, co-marketing, co-selling, co-delivering Business Solutions « as a service ».

Sharing best practices and mutualizing resources

Getting « powered by IBM »

Club Alliances promotes a Solution as a Service Model

Solutions as a Service for Industry Verticals and LOB Industry Sector Manufac-turing Transpor-tation Healthcare Retail Sales & Marketing CFO R&D … LOB HR Local Gvt … CIO

Contractual relationships for Solutions as a Service Club Alliances SaaS Platform Partners End Customer Club Alliances Members Business Integrator Large Customer or Federation MARKET IBM

How end-user customers buy today - They…

rely on the Internet for information – not their sales rep

do Google searches

ask friends in their social network

check forums or online groups or blogs

get feedback in Twitter or other micro blogs”

hate cold calls

increasingly ignore advertising

have spam filters and popup blockers

throw junk mail into the waste basket

have no patience for the traditional sales process

A clear Need for Marketing 2.0 ! Source IDC, estimate is at the lower boundary of the market numbers Reaching 200k+ Mid-Market companies in France is uneconomical through “push” marketing alone. “ Pull” marketing is key to reach the full breadth of the French Mid-Market. IDF Ouest: 396 840 companies Main Sectors : Agriculture, fishing industries, meat and all agro industries, Telco, Industry (electronics, mechanic equipments boat construction, Services (tourism) IDF: 688 775 companies Main Sectors : Services (to enterprises), Retail, R&D, Industries (printing, consumer goods, pharma, perfumes, equipments, auto), Media and Telco.

Credibility & Visibility to « Pull » Leads

Marketing Mutualization : The “Las Vegas” or “Place Vendôme” model !

Prospects are pushed & pulled to a specific Industry or LOB “Club” where they find :

A fair choice of Coopetitive Solutions, covering key challenges/needs

Best of Breed or Whole Solutions to cover most of their Industry or LOB needs

An “ as as Service ” Business Value Proposition, including “powered by IBM”…

Channels 1.0 Channels 2.0 What’s Going Out What’s Coming In Responsiveness is critical

Thanks – Q/A ! The best way to predict the future is to invent it - Alan Kay Loic Simon [email_address] +33 6 76 75 40 71 http://www.linkedin.com/in/loicsimonibm http://www.twitter.com/cluballiances http:// www.cluballiances.com Business Development Executive - Club Alliances Business Partner Organization - IBM France