Greg Dixon - 2011 ScanSource POS & Barcoding Partner Conference

Intellectual Property
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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

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

There is opportunity in the
Cloud
To Resellers:
The Cloud is still complex to many users.
integration/interoperability, change mgt. and business process consulting opportunities
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
Resource pooling
Rapid elasticity
Measured service
Servers & Storage Mix
Source: CompTIA

The Cloud is still cloudy to me.
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.
Still unclear on value prop
Might work fine for a very limited solution set
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
Merrill Lynch estimates
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

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

“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

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)

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%

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

Greg Dixon - 2011 ScanSource POS & Barcoding Partner Conference

by ScanSource on Sep 23, 2011

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