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Cloud Computing Crash Course
 

Cloud Computing Crash Course

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  • We have noticed three different commission types:STANDARD USAGE BASED — The provider pays according to the current contract in place for other services — typically 10-25% of the MRR. COMMITMENT BASED — The customer will commit to an agreed resource utilization (e.g., CPU power, RAM, storage/SAN, bandwidth, etc) for an definite term (12, 24, 36 months).ONE-OFF NEGOTIATED. Many partners are new to cloud and do not have an agent program. They seek to cut you a contract on the fly.

Cloud Computing Crash Course Cloud Computing Crash Course Presentation Transcript

  • Track One:Cloud Computing Crash Course
    Moderator:
    Clark Atwood, Vice President, Concierge Communications (catwood@conciergecom.com)
    Panelists:
    Jason Baker, CTO ReliaCloud(jason.baker@reliacloud.com)
    William Hiatt, CTO, RapidScale(william.hiatt@rapidscale.net)
    Brandon Peccoralo, Sourcing Consultant, COLOTRAQ (bpeccoralo@colotraq.com)
    Andrew Pryfogle, President & CEO, Terrapin Solutions, LLC (APryfogle@Terrapin-Solutions.com)
    Hannah Smitterberg, CEO, Cost Effective Technologies (hannah.smitterberg@gocetech.com)
  • Cloud Computing Crash Course
    September 20, 2010
  • Agenda
    • Please silence your phones
    • Review the opportunity
    • 10 minutes
    • Hear from experts on making money and best practices in Cloud Computing
    • 10 questions
    • 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
  • What is Driving Cloud Computing?
    Cloud Computing
    SW/ HW Updates
    Reduce Labor
    Compliance
    Cost Reduction
    Legislation
    Extensibility
    Scalability
    Mobility
    Consumption
    Customers
  • 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
    Cases, TCO
    • 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)
    • Deployment
    • Sustainment
  • 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
    • Tradeoffs
    • 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
    • Locations
    • Employees
    • Revenue
    • Cost of downtime
    • Lost Productivity
    • Lost Billings
    • 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?
  • The Key: Increase Share of Wallet
    STOP thinking “Total Telecom Spend”
    START thinking “Total Technology Spend”
    Cloud Computing Recurring Revenue Sources
    • Virtualized Servers - $250 - $400 per server
    • Cloud Storage - $200 - $500 per SAN
    • Desktop Virtualization - $125 - $250 per desktop
  • 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 (catwood@conciergecom.com)
    Panelists:
    Jason Baker, CTO ReliaCloud(jason.baker@reliacloud.com)
    William Hiatt, CTO, RapidScale(william.hiatt@rapidscale.net)
    Brandon Peccoralo, Sourcing Consultant, COLOTRAQ (bpeccoralo@colotraq.com)
    Andrew Pryfogle, President & CEO, Terrapin Solutions, LLC (APryfogle@Terrapin-Solutions.com)
    Hannah Smitterberg, CEO, Cost Effective Technologies (hannah.smitterberg@gocetech.com)
  • Thank you!