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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

Greg Dixon - 2011 ScanSource POS & Barcoding Partner Conference Greg Dixon - 2011 ScanSource POS & Barcoding Partner Conference Presentation Transcript

  • 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
  • Greg DixonChief Technology Officer
    ScanSource, Inc.
  • The Future isCloudyGreg DixonCTOScanSource, Inc.
  • 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
  • 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
  • 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
  • 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
  • 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
  • 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
  • 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
  • 5 Essential Attributes
    There is opportunity in the
    Cloud
    • To Resellers:
    • On-demand self-service
    • The Cloud is still complex to many users.
    • integration/interoperability, change mgt. and business process consulting opportunities
    • Broad network access
    • No matter how ubiquitous, never fully eliminate on-premises hardware
    • End devices and network devices still need Value Added Services
    • Resource pooling
    • Private Cloud - Server Virtualization on-premises
    • Rapid elasticity
    • Not done everyday
    • Users will still call the reseller for help
    • Measured service
    • Account billing = account ownership
    • Sell an OpEx package
    • Cloud/services/software/hardware/other
    On-demand self-service
    Broad network access
    Resource pooling
    Rapid elasticity
    Measured service
    Servers & Storage Mix
    Source: CompTIA
  • 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:
    • Still waiting on a clear definition
    • 56% say they still don’t know what it really is.
    • On-demand self-service
    • Still unclear on value prop
    • Might work fine for a very limited solution set
    • Broad network access
    • Still don’t completely trust the “net”
    • Come to expect 5 nines
    • Amazon’s crash didn’t help
    • Resource pooling
    • I can do that – virtualization (SCSC example)
    • Rapid elasticity
    • Not done everyday – or if I will ever need that
    • Not sure of the value
    • Measured service
    • Like OpEx if it saves money or helps cash flow
    • Accounting Rules change
    Super Data Center
    Source: CompTIA
  • App Portfolio in 2000- 2005
    The Cloud likes SMB.
    • Early SaaS Adopters…SMBs
    • 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
  • App Portfolio Today
    The Cloud likes the big guys too.
    EMail
    Marketing
    • Everyone Using More Apps
    • SMB - Are Heavy Adopters of Cloud
    • 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
  • 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
  • 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
  • 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
  • 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
  • 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
  • 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)
  • 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%
  • 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…
  • 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”
  • ScanSource Online Resources
    The Cloud is in all about partners.
  • 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
  • Thank You