Track One:Cloud Computing Crash Course Moderator: Clark Atwood, Vice President, Concierge Communications (firstname.lastname@example.org) Panelists: Jason Baker, CTO ReliaCloud(email@example.com) William Hiatt, CTO, RapidScale(firstname.lastname@example.org) Brandon Peccoralo, Sourcing Consultant, COLOTRAQ (email@example.com) Andrew Pryfogle, President & CEO, Terrapin Solutions, LLC (APryfogle@Terrapin-Solutions.com) Hannah Smitterberg, CEO, Cost Effective Technologies (firstname.lastname@example.org)
Cloud Computing Crash Course September 20, 2010
Please silence your phones
Review the opportunity
Hear from experts on making money and best practices in Cloud Computing
4 minutes per answer
Review a case study from an agent
Please make notes
Hold questions until the end
What is Cloud Computing? Quality questions and answers are harder to come by than a crisp $2 bill Different views Communications view Network centric IT Solution Provider view Client technology centric
Cloud Computing is ______. Tiffany Bova Research VP for Gartner “How tech is delivered” “How tech is acquired” xChange Americas – August 2010
“The Cloud” Servers Operating Systems Applications Hosting Security Public Network CoS/QoS Private Networks Internet Connectivity Legacy PSTN Connectivity Security Premises Infrastructure Equipment End User Devices Others Single/Multiple Locations
Cloud Opportunity Eric Martorano Director, Channel Strategy, Incentives and Partner Marketing at Microsoft “Cloud services opportunities are six times that of hardware.” xChange Americas – August 2010
Who Supplies Cloud Computing? Cloud Computing Communication Providers IT Support Companies Hardware Manufacturers Online Retail Companies Etc…….. “Ultimately it is technical sales people that supply Cloud Computing.” Clark Atwood Channel Partner Expo – Sept 2010
The fight is on! Microsoft Azure Storage Windows BPOS ForeFront InTune Bing More… Amazon EC2 S3 & EBS ?? SQS & SNS ?? CloudWatch ?? More… IBM IBM Cloud IBM SBS ?? Lotus ?? IBM SBD ?? More… Google ?? Storage Chrome Apps Postini ?? Google More… Dell Oracle Cisco HP
Panel of Experts Educating Prospects Industries to Capture Desktop as a Service Security Mobility Disaster Recovery What’s Next Sales Barriers Commission Example Program Overview
Client Learning Education is always a challenge to the sales process of any product. Your company looks at five different ways to help companies learn about Cloud Computing. Which one of this is best in a particular sales situation?
Best ways to sell cloud
Tailor pitch to your audience
Business: Webinars, Use
Technical: Let them play
with it 13
Industry Targets You have an impressive client list posted on your Web site by industry. What are the top three industries that embrace Cloud Computing and what is the secret to penetrating them?
Hot Industries for Cloud Environmental Lifecycle Cyclical Resource Utilization Don’t think vertical, think application Rate of adoption Potential Scale
Monthly Fees How do you transition businesses into a monthly fee for Desktop as a Service (Daas) instead of paying once for a computer and software and keeping it for five plus years?
Some customers already used to paying for part of desktops as a fee
EX: Microsoft Enterprise Licensing Agreement
Position it by the numbers
Look at desktop costs
Procurement (Buy vs. Lease)
Security Many security solutions are being embedded into product offerings or utilizing existing security options like SSL. Where is Cloud Security headed and how does that affect the indirect channel?
Hybrid Private Company A Public Company B Company B Company A Company C Company D Company D Company C Company E Company E Public, Private, Hybrid?
Standardization & reputation
Size of organization
Type of data
SIMPLE | SMART | SECURE
Mobility How does mobility play in the Cloud space and how do agents make money combining mobility and Cloud Computing?
“40 Million Americans occasionally “Tele-work” every month.” – workingfromanywhere.org Cloud Computing is a Huge Driver for Mobility Wi-Fi-connected Laptops are not sufficient when “Always On” is the requirement 3G & 4G Connectivity is Critical Big Up-front & Recurring dollars being paid out. - AT&T, Verizon, Sprint
Disaster Recovery Disaster Recovery as a Service (DRaaS) is needed by any business that wants to survive a disaster. You list some common threats on your Web site. How do you position this service, which the client hopes they will never use, and still help the customer feel they are paying for something valuable? Reasons for Disaster Recovery • Hackers • Major power failures • Terrorist attacks • System administration errors • Natural Disasters and • Computer Viruses • Other
Size of business
Cost of downtime
Challenge vs. opportunity
Outsourcing vs. doing it themselves
The Next Wave E-mail and CRM have enjoyed some rapid growth in the Cloud Computing space. What is the next wave of Software as a Service that we should be preparing to see take market share from its premises-based sibling?
Software as a Service I.T. Service Providers Infrastructure as a Service Developer Platforms XaaS – Everything as a Service CSC MSI Kaseya BMC ConnectWise Etc. Amazon EC2 Rackspace.com VMWare Citrix Etc. Google Apps Salesforce.com Zoho Microsoft (Well, Sort Of!) Etc. Google App Engine Force.com Microsoft Azure Customer Size Small Mid-Sized Large XaaS A comprehensive solution that combines IT Services with IaaS & SaaS in a platform that is designed specifically for small & mid-sized organizations SIMPLE | SMART | SECURE
Sales Barriers In the survey you did earlier this year, you identified eight potential barriers to adopting Cloud Computing. How do overcome these and other barriers in the sales process?
Overcoming Barriers in the Sales Process
Biggest Barrier: Giving up control
Biggest Competitor: In-house IT
Walk before you run
Identify first App to cloudify
Storage is the low-hanging fruit
Prove the business case first
High Dollar Sales Agents are seeing their existing base of MRC crumble under price compression as most solutions move to a commodity. What products in Cloud Computing hold the greatest promise for commissions?
Agent Programs Commissions vary in Cloud Computing from small onetime payments to residual income streams. Can you give us some examples of Cloud Computing Agent programs and what to expect in commissions?
Commission Structure STANDARD USAGE COMMITMENT BASED ONE-OFF NEGOTIATED Provider pays according to the current contract in place for other services — typically 10–25% of MRR. Provider pays commission based on a fixed monthly charge, no commissions paid on charges for exceeding committed monthly usage. Commissions are negotiated for each individual deal.
9/23/2010 Terrapin Solutions Confidential 32 A Cloud Case StudyTexan HyundaiBrought to you by Terrapin Solutions, your Cloud Services Master Agency
9/23/2010 Terrapin Solutions Confidential 33 Customer Intro Owners bought a defunct auto dealership in Houston, TX Inherited an 8-year old PBX and some old PCs and old network infrastructure 2 Driving Goals Keep cash investment on infrastructure to a minimum Open store in under 30 days
9/23/2010 Terrapin Solutions Confidential 34 The Initial Opportunity Single PRI T1 DIA Total Revenue Opportunity? < $1,000 MRR
9/23/2010 Terrapin Solutions Confidential 35 Just a Few Extra Questions Can you tell me about your computing environment? Servers? Storage? Desktops? Mobile Workers? The Answers we got Need to run ADP ADP required huge hardware investment in servers and desktpos Was about to spend over $75,000 on infrastructure Was about to sign a IT Support contract for $80,000 per year
9/23/2010 Terrapin Solutions Confidential 36 The Winning Solution Virtual-Q Cloud Computing Virtualized Desktops New HP Thin Clients at <$300 per machine Cloud-based storage, processing, and auto-backups Fully Virtualized their ADP platform 7x24 Live Support Appia Hosted VoIP Cisco IP Phones on Every Desk, No PBX or Voicemail Hardware Custom Auto Attendant Appia MPLS QoS for Voice, CoS for Virtual-Q Traffic Installed Entire State-of-the-Art Solution in <30 Days <$10,000 in CAPEX
9/23/2010 Terrapin Solutions Confidential 37 The Final Revenue Picture Virtual-Q - $3,200 per month Appia Hosted VoIP - $1,850 per month Appia MPLS - $750 per month Total Monthly Revenue: $5,800 per month Almost 6x Greater than Original Opportunity Note: Resulted in over $100,000 Reduction in TCO
9/23/2010 Terrapin Solutions Confidential 38 Summary If Cloud Services is Not part of your portfolio, you’re LEAVING MONEY ON THE TABLE Add “Just a Few More Questions” to your Selling Process You don’t have to be expert in the Cloud to start – Rely on Experts Texan Hyundai Ownership Group is now doing this again at up to 7 more locations in the next 6 months. Will have turned a $1,000 opportunity into a $40,000+ opportunity
9/23/2010 Terrapin Solutions Confidential 39 Time to Grow Revenue with The CloudThank you
Track One:Cloud Computing Crash CourseAudience Questions & Answers Moderator: Clark Atwood, Vice President, Concierge Communications (email@example.com) Panelists: Jason Baker, CTO ReliaCloud(firstname.lastname@example.org) William Hiatt, CTO, RapidScale(email@example.com) Brandon Peccoralo, Sourcing Consultant, COLOTRAQ (firstname.lastname@example.org) Andrew Pryfogle, President & CEO, Terrapin Solutions, LLC (APryfogle@Terrapin-Solutions.com) Hannah Smitterberg, CEO, Cost Effective Technologies (email@example.com)