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Greg Dixon - 2011 ScanSource POS & Barcoding Partner Conference

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  • Be the Cloud I’m not suggesting that you compete with Amazon or RackSpace. But you also don’t want to be the cobblers children who had no shoes. Embrace this technology in your own company. Sell the CloudSell to the Cloud
  • Be the Cloud I’m not suggesting that you compete with Amazon or RackSpace. But you also don’t want to be the cobblers children who had no shoes. Embrace this technology in your own company. Sell the CloudSell to the Cloud
  • Transcript

    • 1. Intellectual Property
      All materials from this deck are confidential and for intended use only* and cannot be distributed outside this use without prior written consent of ScanSource.
      * Copyright © 2011.  All Rights Reserved. Unless expressly authorized in writing by the copyright owner, any copying, reproduction, exhibition, export, distribution or other use of this product or any part of it is strictly prohibited. External sources and external trademarks are the property of the referenced sources.
      ScanSource, Inc. Confidential
    • 2.
    • 3. Greg DixonChief Technology Officer
      ScanSource, Inc.
    • 4. The Future isCloudyGreg DixonCTOScanSource, Inc.
    • 5. Topics
      The Future is the Cloud
      The Future is Cloudy
      Understanding the Cloud
      Hosting services
      Data Centers
      Colocation
      Virtualization
      X as a Service
      The Weather Report
      It’s coming – like it or not
      How big and when?
      How to weather the storm
      Adjustments to your business model
      The Cloud and ScanSource
    • 6. What is “the cloud” ?
      The Cloud is a concept.
      Wide Area Network Diagram
      Cloud Computing is a model for enabling remote network access to a shared pool of computing resources
      (e.g., servers, storage, applications, and services)
      3 Service models
      software as a service, platform as a service, and infrastructure as aservice
      4 Deployment models
      private cloud, community cloud, public cloud, and hybrid cloud
      5 Essential Attributes
      on-demand self-service, broad network access, resource pooling, rapid elasticity, and measured service
      Source: CompTIA
    • 7. The Cloud is some of this and some of that.
      HostingLandscape
      Unmanaged
      Managed
      Colocation
      On
      Premises
      Custom
      Wholesale
      Retail
      Traditional IT Department
      Hybrid
      Hybrid
      Dedicated
      Standard
      Shared
      Shared
      Hosted
    • 8. The Cloud is everywhere.
      HostingLandscape
      “The Cloud”
      Unmanaged
      Managed
      Colocation
      On
      Premises
      Custom
      Wholesale
      Retail
      Traditional IT Department
      Hybrid
      Hybrid
      Dedicated
      “The Cloud”
      Standard
      Shared
      Shared
    • 9. 3 Service Models
      The Cloud is Alphabet Soup.
      Infrastructure as a Service (IaaS)
      Servers, storage, networks, and other fundamental computing resources required for running applications.
      Cooling, power, security (P&D), network access - “Ping-Power-Pipe”
      Platform as a Service (PaaS)
      Platform or environment upon which ISVs and developers can develop and deploy custom application software
      Focus on development and innovation without worrying about the infrastructure – hardware, O/S, middleware, web services, databases
      Build and/or host a web-based application for SaaS delivery
      Examples of Platforms: Microsoft Azure, Salesforce.com’s Force.com, and Google’s App Engine, Rackspace’sOpenStack
      Software as a Service (SaaS)
      Standard application software running remotely through a browser.
      Examples: Gmail, Google Apps, Microsoft Office 365
      Other examples: Broadsoft (voice), Salesforce.com (CRM)
      Under development: Your Software as a Service
      End Users
      SaaS
      Software
      Developers
      PaaS
      Network
      Engineers
      IaaS
    • 10. 4 Deployment Models
      The Cloud is virtual.
      Private cloud
      Private – on-premises or Co-Located
      build and operate their own private cloud infrastructures
      virtualized servers and thin client apps (maybe)
      Virtual Private Cloud
      may be hosted and/or managed by hosting company
      Community cloud
      Cloud resources shared by several organizations that have shared concerns or functions
      Still emerging
      Public cloud
      Provided by Hosting Companies
      a shared infrastructure accessible over the public Internet for cloud-based and remotely delivered services.
      Hybrid cloud
      a combination of two or more of the others – usually Private-on, Private-off and Public
      Hybrid clouds are the most common form of cloud computing implementation today
      Virtual Machine
      Virtual Storage
      Hypervisor
      Virtualized Switching
      Fabric
      Virtual Machine
      Virtual Storage
      Hypervisor
      Virtualized Switching
      Fabric
    • 11. 5 Essential Attributes
      The Cloud is a promise to be fulfilled.
      On-demand self-service
      provision computing capabilities as needed
      Broad network access
      requires persistent network connectivity
      Resource pooling
      servers and storage are shared
      virtualization, multi-tenancy, load balancing
      this makes Cloud affordable
      Rapid elasticity
      expand and scale their technology consumption at will – more or less
      Measured service
      operational expense, recurring, predictable payment model
      only pay for what you use
      Tower Server Racks
      Source: CompTIA
    • 12. 5 Essential Attributes
      There is opportunity in the
      Cloud
      • To Resellers:
      • 13. On-demand self-service
      • 14. The Cloud is still complex to many users.
      • 15. integration/interoperability, change mgt. and business process consulting opportunities
      • 16. Broad network access
      • 17. No matter how ubiquitous, never fully eliminate on-premises hardware
      • 18. End devices and network devices still need Value Added Services
      • 19. Resource pooling
      • 20. Private Cloud - Server Virtualization on-premises
      • 21. Rapid elasticity
      • 22. Not done everyday
      • 23. Users will still call the reseller for help
      • 24. Measured service
      • 25. Account billing = account ownership
      • 26. Sell an OpEx package
      • 27. Cloud/services/software/hardware/other
      On-demand self-service
      Broad network access
      Resource pooling
      Rapid elasticity
      Measured service
      Servers & Storage Mix
      Source: CompTIA
    • 28. 5 Essential Attributes
      The Cloud is still cloudy to me.
      On-demand self-service
      Broad network access
      Resource pooling
      Rapid elasticity
      Measured service
      • To End Users:
      • 29. Still waiting on a clear definition
      • 30. 56% say they still don’t know what it really is.
      • 31. On-demand self-service
      • 32. Still unclear on value prop
      • 33. Might work fine for a very limited solution set
      • 34. Broad network access
      • 35. Still don’t completely trust the “net”
      • 36. Come to expect 5 nines
      • 37. Amazon’s crash didn’t help
      • 38. Resource pooling
      • 39. I can do that – virtualization (SCSC example)
      • 40. Rapid elasticity
      • 41. Not done everyday – or if I will ever need that
      • 42. Not sure of the value
      • 43. Measured service
      • 44. Like OpEx if it saves money or helps cash flow
      • 45. Accounting Rules change
      Super Data Center
      Source: CompTIA
    • 46. App Portfolio in 2000- 2005
      The Cloud likes SMB.
      • Early SaaS Adopters…SMBs
      • 47. Big Firms used…Webex
      Dozens of Apps
      EMail
      Marketing
      10%
      Desktop
      Compliance
      Collaboration#1
      A few Apps
      Billing
      Benefits
      Payroll
      Inventory
      70%
      Desktop
      Partner Portal
      Conferencing
      EMail
      Web Site
      Desktop
      2%
      SaaS
      CRM
      Collaboration
      Project Mgmt
      Intranet
      CRM
      Blog
      Bus.Unit #1
      Analytics
      Server-Based
      (inhouse)
      28%
      SaaS
      Billing
      Accounting
      E-Commerce
      Bus.Unit #2
      88%
      Server
      Payroll
      Conferencing
      IndustryApp #1
      Office
      SaaS
      2%
      Server
      Office
      Advertising
      General Ledger
      IndustryApp #2
      <100 Employees
      Small Firms
      >1,000 Employees
      Big Firms
    • 48. App Portfolio Today
      The Cloud likes the big guys too.
      EMail
      Marketing
      • Everyone Using More Apps
      • 49. SMB - Are Heavy Adopters of Cloud
      • 50. Big – still in transition
      Collaboration#1
      General Ledger
      Collaboration#2
      Compliance
      Billing
      Benefits
      15%
      Desktop
      Payroll
      Recruiting
      Partner Portal
      Inventory
      Intranet
      Advertising
      EMail
      Web Site
      Bus.Unit #1
      Supply Chain
      Collaboration
      Project Mgmt
      Bus.Unit #2
      CRM
      40%
      SaaS
      9%
      Desktop
      Desktop
      CRM
      Blog
      Bus.Unit #3
      Analytics
      Billing
      Accounting
      Bus.Unit #4
      E-Commerce
      Payroll
      Conferencing
      Office
      IndustryApp #1
      Server-Based
      (inhouse)
      90%
      SaaS
      Presentation
      Advertising
      Presentation
      IndustryApp #2
      45%
      Server
      Spreadsheet
      Social
      Public Co.#1
      IndustryApp #3
      SaaS
      1%
      Server
      Document
      Personal
      Productivity
      Public Co. #2
      IndustryApp #4
      Dozens of Apps
      Small Firms
      Hundreds of Apps
      Big Firms
    • 51. The Cloud is getting big.
      The Cloud is still small..
      Statistics
      Gartner estimates  global market for cloud computing
      $40.7 billion in 2011
      $177 billion by 2015
      $241 billion by 2020
      Merrill Lynch estimates 
      $160 billion by 2011
      AMI Research estimates
      SMB cloud spending alone will reach $100 billion by 2014.
      SaaS revenue will grow 5 times faster than traditional packaged product.
      (which in serious decline) (IDC)
      50 million physical servers in the world – as of Oct. 2010
      By 2013 10% will be virtualized with 10 VMs per server
      Half of the 8M servers sold each year go into Data centers (Business Week)
      Google has 1M servers
      10M in 10 years.
      Data Centers (public)
      33,157 Worldwide
      23,656 U.S.
      Regardless of the exact numbers or the exact definitions of what
      the “Cloud” really is…
      The Cloud is large and growing fast.
      Faster than any other area of IT spending.
      But…
      if Gartner is even close…
      Total spend on Cloud in 2010 is 2% of total I.T. spend.
      In 2015 it will be just 5%
      Apple’s New Data Center in N.C. 1 million sq ft
      Google Data Center
      A C / Chiller units
    • 52. Disruptive Technology
      The Cloud is disruptive and scary.
      End User Customers see cloud as a means to disrupt…
      software licensing status quo
      hardware acquisition patterns
      obsolescence / replacement and upgrade schedules
      OpEx is advantageous to CapEx in many ways.
      Standardized Servers
    • 53. Business Transformation
      The Cloud is sticky and viral.
      Make a business plan and write it down
      Begin to talk to your customers about it now
      Shift your customer base gradually
      As customers learn about Cloud applications they will expect you to respond.
      Don’t give it away – (WTMTM)
      Cloud Services tend to:
      Be “sticky” - they stay over time
      Be “viral” - they lead to other Cloud services
      Be commoditized more rapidly – the mystery goes out faster because of an abundance of hype and information.
      Wholesale Colocation Facility
    • 54. Business Transformation
      There is money in the Cloud
      “Can I make money?”
      Consider a Cloud-based solution for certain businesses
      Change / grow / shrink rapidly
      Have a hosted offering for customers who ask
      Voice – Video Conferencing – Video Surveillance
      Remember, the Cloud is a service model, so…
      Sell Solutions that include Cloud Services along with your other services.
      Embrace a monthly billing model. You can charge more if you bill monthly. MSPs do this.
      Create a recurring revenue stream.
      Healthy MSP model: 30-40% or revenue should come from monthly services
      So, start with one customer and build a practice
      “How do I pay my sales people?”
      Think Agent model or Life Insurance model
      Year 1 – 10% / Year 2 – 5% / Year 3 – 0%
      Network Operations Centers
    • 55. Business Transformation
      “I am the
      Cloud.”
      Own the relationship
      Don’t let your customers connect to the Cloud Provider directly
      Private Label your Cloud Product Offerings
      Don’t sell “The Cloud”
      The Cloud is just a new and (still) optional delivery method.
      You have new messages for your customers:
      “I can save you money.”
      “I can improve your business communications.”
      “I can provide system redundancy / data backup / data security / business continuity.”
      “My services include scalable resources – seasonal / project related.”
      “I am your Cloud provider.”
      Retail Colocation Facilities
    • 56. Business Transformation
      The Cloud is
      [Your name here]
      “Be” the Cloud (to your customers)
      Don’t have to compete with Amazon or RackSpace
      When your customers think of the Cloud, they should think of [__Fill in your company name here __]
      To your customers, you ARE THE CLOUD.
      Sell the Cloud (Cloud Services)
      Basics – backup and recovery, raw data storage, e-mail by the seat, collaboration, synchronized “Drop Box” type service,
      Advanced – IaaS - Website hosting, Cloud Servers, …
      As a Service – Hosted VoIP, Video conferencing, Unified Communications, Video surveillance, others…
      Your Cloud Services – SaaS version of your App. implementation, training, MAC, on demand services, etc…
      Sell to the Cloud (Data Center)
    • 57. Business Transformation
      The Cloud is
      in the building.
      “Be” the Cloud
      Don’t compete with Amazon or RackSpace
      When your customers think of the Cloud, they should think of you.
      To your customers, you ARE THE CLOUD.
      Sell the Cloud
      Basics – e-mail by the seat, collaboration, synchronized “Drop Box” type service, raw data storage, backup and redundancy
      Advanced – Website hosting, “Cloud” Servers, content delivery,
      As a Service – Hosted VoIP, Video conferencing, Unified Communications, Video surveillance, others…
      Your Cloud Services – implementation, training, MAC, add/remove resources on demand,
      Sell to the Data Center
      Most of “the Cloud” is still inside the enterprise’s four walls…
      or placed in a Colo by the Enterprise
      Get to know the market
      Learn from Vendor’s Data Center message
      Develop a specialty
      Switching, security, compliance,…
      Develop a Solution Set
      Virtualization/Server/Switching/Storage
      95%
    • 58. Business Transformation
      The Future
      is the Cloud,
      like it or not
      So, be nimble – be prepared
      Change is inevitable – so is Cloud Computing
      It will affect each of us differently
      You can weather the storm if you are prepared!
      We can help…
    • 59. Your Cloud Distributor
      The Cloud
      is Channel Ready.
      We are your connection to Cloud Vendors.
      Education and understanding of the technology, solution sets and opportunity.
      Consolidate resources for Cloud-based Solutions
      Hardware, software, cloud services, professional services, etc…
      Cloud Solution Set
      Virtualization/Server/Switching/Storage
      Storage/backup/recovery
      Synchronized drop box
      E-mail by the seat
      Software as a Service
      “Solution as a Service”
    • 60. ScanSource Online Resources
      The Cloud is in all about partners.
    • 61. Facilitating the Channel
      VAR
      Connections
      Communications
      Vendor
      End
      User
      ScanSource
      Partnerships
      Innovation
      Expertise
      Reach
      Integrity
      Affiliate
      ISV
      Cloud Services Marketplace
      Leads
      SUMOPartner
      ISV Source
      AppSource
      Cloud Marketplace
      The Source
      Cloud
      Services Marketplace
    • 62. Thank You