Cloud Computing Impacts on Channel
Personal  Computers Cloud Computing 80s 90s 00s 10s 20s History of IT Channels  Internet
Solutions as an.... UTILITY
UTIL IT Y becomes VERSATIL IT Y One Need One App
<ul><li>€ 10B in 2009 </li></ul><ul><li>40% CAGR </li></ul><ul><li>75% of Companies use one application in SaaS </li></ul>...
 
New Internet Bubble? <ul><li>Massive & global opportunity </li></ul><ul><li>Very fast growth </li></ul><ul><li>Viral and g...
Business as a Service Software as a Service Infrastructure as a Service Business as a Service Any application licensed for...
Customer View Pros Cons Lower cost Pay as you go Zero Capex No or minimal IT resources Faster time to use Flexibility/scal...
SaaS/Cloud customers Shifting  Customers SaaS/Cloud replaces  existing applications (mostly on-premise) New Customers SaaS...
Disruptive for Customers <ul><li>Acknowledge the benefits for their own business compare to existing solution </li></ul><u...
Disruptive for ITC Channels <ul><li>Long customer decision cycles </li></ul><ul><li>Require market expertise </li></ul><ul...
Purpose Are common  IT Business Rules  applying to  Cloud Computing?
IT Distribution today No infrastructure to sell No service to sell No supply chain IT/Telecom Resellers VARs/Integrators D...
Time to rethink IT Distribution Time to rethink IT Distribution
Key Factors of Success Competitive  value proposition Sustainable Business Model World class Go to Market Cloud SaaS
Converting  Channels Creating Channels
Converting  Channels Creating Channels
Motivate IT Resell Channel <ul><li>Channel proposal to be at least as rewarding as infrastructure + on-premise software (i...
Motivate System Integrators <ul><li>Channel proposal to be integrated in a broader service proposition to customers </li><...
Motivate Telcos <ul><li>Possibility for the Telco to host application or customer data (branding option) </li></ul><ul><li...
Example BT <ul><li>Porfolio expansion through a multi solutions offering </li></ul><ul><li>Data/Applications hosted by BT ...
Converting  Channels Creating Channels
Vertical Channel Customer Vertical Channel Point of purchase Service  Provider Need  Identification
A Massive Presence 120 000 Companies* IT Companies Resellers Integrators Business Services  Companies 1 800 000 Companies*...
Services categories Collaboration Sales & Marketing  Manufacturing HR Accounting Finance/Insurance Business consultant Mar...
Hybrid Model Direct Contractual Channel Non-Contractual Channel Resellers Resellers + Services Integrators/ OEM Referrals ...
Non-Contractual Resellers Role Compensation Referral <ul><li>introduce the product to customer </li></ul><ul><li>register ...
Vertical Channel Platform
Business Services <ul><li>Huge variety of Companies </li></ul><ul><li>90% between 1-10 employees (many free-lance) </li></...
Motivate Vertical Channel  <ul><li>Turnkey solutions </li></ul><ul><li>Hassle free resell platform </li></ul><ul><li>Direc...
Aggregators Application Hosting Data Hosting Servicing (billing) Resellers Customers Applications Providers Aggregators Ch...
Aggregators <ul><li>Mostly startup Companies </li></ul><ul><li>Various business models </li></ul><ul><li>Various services ...
Motivate Aggregators  <ul><li>Make sure there is room in your business models for them to provide: access to specific chan...
Example Revevol <ul><li>Consulting Company assisting large Companies in their IT decisions </li></ul><ul><li>Becomes invol...
The new channel map Converted Channels Direct Play Vertical Channels Aggregators IT Channels System Integrators VARs Telco...
Don’t push  on a rope
Demand Generation Demand Fulfilment
Fulfilment vs Generation Demand Fulfilment Generation Comments IT Vendor direct ***** ***** Full dedication Limited capaci...
There is no perfect channel There is only a perfect balance
Dealing with complexity Expanding to Europe Expanding to US How to compensate  the channel? Converting channel or creating...
Cloudy Channels
5 Step Process Business Identification Channel Framework Channel Recruitment Channel Ramp Up Channel Management
Recruiting   and   Developing   Channels for   IT Companies in   EMEA  and  US
Features >200 years of cumulated experience in business/channel management Wide knowledge across IT (Hware, Software, Tele...
Benefits <ul><li>Immediate access to Cloud/SaaS business management expertise when you need it </li></ul><ul><li>Immediate...
Thanks! [email_address]
 
Also for IT Channel Sales Cycle Short Term Revenues What ITaaS brings LONG LOW What IT Channel like SHORT HIGH
Vertical vs Horizontal Customer Vertical Channel Horizontal Channel I know what I need I don’t know what I need <ul><li>Ad...
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Cloud Computing : rethink your channel

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You sell or intend to sell SAAS or IAAS
no doubt that the role of the traditional channel will be significantly impacted by the rapidly evolving on-demand services market, there is still plenty of room for innovative channel organizations to operate. There are also plenty of opportunities for new channel partners to succeed

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  • History of IT Channels can be split in 3 major waves: - 80s: PC computers rise IT democratization and need for partners to cover a very wide market to resell heterogenous solutions to resell additional services - 90s: Internet new business models web 2.0 / Amazon - 10s: Cloud Computing The emergence of the third channel revolution with the Cloud Computing What are the 2 factors that makes Cloud Computing a revolution for the channel?
  • First one: Cloud Computing distributes IT like an utility. Think of Electricity or water. Just a plug to install. No need for infrastructure anymore.
  • Second One: Because there is no infrastructure any longer, the applications are pretty much ready made and addressing the end users directly for their own need, as opposed to the IT.
  • This is partly why when the first Cloud-SaaS vendors went to talk - to IT resellers and tell them they don’t have infrastructure to resell they found little interest - same with the VARs/Integrators with the fact they don’t have much service to resell - to the distributors alike when they say they don’t have supply chain to worry about This is why Companies such as Microsoft, Oracle, SAP, IBM and most of the others have had very difficult times in trying to recruit active resellers in the Cloud.
  • Cloud Computing : rethink your channel

    1. 1. Cloud Computing Impacts on Channel
    2. 2. Personal Computers Cloud Computing 80s 90s 00s 10s 20s History of IT Channels Internet
    3. 3. Solutions as an.... UTILITY
    4. 4. UTIL IT Y becomes VERSATIL IT Y One Need One App
    5. 5. <ul><li>€ 10B in 2009 </li></ul><ul><li>40% CAGR </li></ul><ul><li>75% of Companies use one application in SaaS </li></ul>In 2010, 45% of Companies will spend > 25% of their IT budget on SaaS compared to 23% today
    6. 7. New Internet Bubble? <ul><li>Massive & global opportunity </li></ul><ul><li>Very fast growth </li></ul><ul><li>Viral and ground-up expansion </li></ul><ul><li>Capital available for SaaS players </li></ul><ul><li>Many ill-defined business models </li></ul>
    7. 8. Business as a Service Software as a Service Infrastructure as a Service Business as a Service Any application licensed for its usage on demand (mostly over the web) Server Virtualization Storage Virtualization Advanced lease infrastructure (pay per use) Grid Computing New Way of Buying New Way of Selling
    8. 9. Customer View Pros Cons Lower cost Pay as you go Zero Capex No or minimal IT resources Faster time to use Flexibility/scalability Higher dependency on provider Security/confidentiality Design limitation Performance Offline access
    9. 10. SaaS/Cloud customers Shifting Customers SaaS/Cloud replaces existing applications (mostly on-premise) New Customers SaaS/Cloud is a new application for the Company
    10. 11. Disruptive for Customers <ul><li>Acknowledge the benefits for their own business compare to existing solution </li></ul><ul><li>Support the idea of an externally hosted model </li></ul><ul><li>Define what to do with existing assets (save waste) </li></ul><ul><li>Accept transition costs + workload </li></ul><ul><li>Check possibility of changing budget allocation from Capex to Opex </li></ul>Decision Pattern
    11. 12. Disruptive for ITC Channels <ul><li>Long customer decision cycles </li></ul><ul><li>Require market expertise </li></ul><ul><li>Revenues cannibalization risk </li></ul>Limited room for IT services (design) Revenues cannibalization risk Limited presence in SME Require market expertise Limited IT knowledge Lack of agility IT Resellers & Distributors Service Integrators Telcos
    12. 13. Purpose Are common IT Business Rules applying to Cloud Computing?
    13. 14. IT Distribution today No infrastructure to sell No service to sell No supply chain IT/Telecom Resellers VARs/Integrators Distributors Cloud Computing
    14. 15. Time to rethink IT Distribution Time to rethink IT Distribution
    15. 16. Key Factors of Success Competitive value proposition Sustainable Business Model World class Go to Market Cloud SaaS
    16. 17. Converting Channels Creating Channels
    17. 18. Converting Channels Creating Channels
    18. 19. Motivate IT Resell Channel <ul><li>Channel proposal to be at least as rewarding as infrastructure + on-premise software (ie: extra services) </li></ul><ul><li>Remuneration scheme to be rewarding at customer contract sign off </li></ul><ul><li>Identify business for them and coach their business development efforts </li></ul>
    19. 20. Motivate System Integrators <ul><li>Channel proposal to be integrated in a broader service proposition to customers </li></ul><ul><li>Possibility to host application or customer data for the SI to propose outsourcing package </li></ul><ul><li>Solid technical interface </li></ul>
    20. 21. Motivate Telcos <ul><li>Possibility for the Telco to host application or customer data (branding option) </li></ul><ul><li>Solid on-boarding program for sales & technical teams </li></ul><ul><li>Dedicated teams to do out-band prospection </li></ul>
    21. 22. Example BT <ul><li>Porfolio expansion through a multi solutions offering </li></ul><ul><li>Data/Applications hosted by BT </li></ul><ul><li>Complementary to broadband internet offering </li></ul>
    22. 23. Converting Channels Creating Channels
    23. 24. Vertical Channel Customer Vertical Channel Point of purchase Service Provider Need Identification
    24. 25. A Massive Presence 120 000 Companies* IT Companies Resellers Integrators Business Services Companies 1 800 000 Companies** (*) EMEA Source Compubase (**) Western Europe Source IDC
    25. 26. Services categories Collaboration Sales & Marketing Manufacturing HR Accounting Finance/Insurance Business consultant Marketing agencies Accounting Companies Marketing Agencies Training Companies Business Consultants Outsourcing services Business Consultants HR consultants Business Consultants Accounting Companies Accounting Companies Business Consultants
    26. 27. Hybrid Model Direct Contractual Channel Non-Contractual Channel Resellers Resellers + Services Integrators/ OEM Referrals Interface Facilitator
    27. 28. Non-Contractual Resellers Role Compensation Referral <ul><li>introduce the product to customer </li></ul><ul><li>register the customer </li></ul><ul><li>10% discount </li></ul><ul><li>no upfront payment </li></ul>Interface <ul><li>introduce the product to customer </li></ul><ul><li>register the customer </li></ul><ul><li>invoice the customer </li></ul><ul><li>20% discount </li></ul><ul><li>no upfront payment </li></ul>Facilitator <ul><li>introduce the product to customer </li></ul><ul><li>register the customer </li></ul><ul><li>invoice the customer </li></ul><ul><li>train the customer </li></ul><ul><li>30% discount </li></ul><ul><li>Online training </li></ul><ul><li>no upfront payment </li></ul>
    28. 29. Vertical Channel Platform
    29. 30. Business Services <ul><li>Huge variety of Companies </li></ul><ul><li>90% between 1-10 employees (many free-lance) </li></ul><ul><li>In all businesses </li></ul>Interested Not interested Portfolio extension Services opportunity Recurring model Credibility Certification/ upfront contract Complicated process Technical involvement
    30. 31. Motivate Vertical Channel <ul><li>Turnkey solutions </li></ul><ul><li>Hassle free resell platform </li></ul><ul><li>Direct customer support/hot line </li></ul><ul><li>Room for consulting services </li></ul>
    31. 32. Aggregators Application Hosting Data Hosting Servicing (billing) Resellers Customers Applications Providers Aggregators Channel
    32. 33. Aggregators <ul><li>Mostly startup Companies </li></ul><ul><li>Various business models </li></ul><ul><li>Various services offering </li></ul>Interested Not interested Solid value proposition Room for hosting application & data Recurring model No markup possibility
    33. 34. Motivate Aggregators <ul><li>Make sure there is room in your business models for them to provide: access to specific channels, customers or complete your service offering </li></ul><ul><li>One on one negotiation </li></ul>
    34. 35. Example Revevol <ul><li>Consulting Company assisting large Companies in their IT decisions </li></ul><ul><li>Becomes involved in reselling IT solutions with the Cloud Computing </li></ul><ul><li>Signed agreements with several SaaS/Cloud players including Google Aps </li></ul><ul><li>Just bid with Valeo for the installation of 30 000 users with Google offering </li></ul>
    35. 36. The new channel map Converted Channels Direct Play Vertical Channels Aggregators IT Channels System Integrators VARs Telcos OEMs Direct Consultants Accountants Marketing Agencies Application Hosting Data Hosting SaaS Resellers/Dist
    36. 37. Don’t push on a rope
    37. 38. Demand Generation Demand Fulfilment
    38. 39. Fulfilment vs Generation Demand Fulfilment Generation Comments IT Vendor direct ***** ***** Full dedication Limited capacity IT Vendor Channel **** * Great coverage Limited mindshare Integrators *** *** Good coverage Good push Vertical Channel * **** Proactive demand No supply chain
    39. 40. There is no perfect channel There is only a perfect balance
    40. 41. Dealing with complexity Expanding to Europe Expanding to US How to compensate the channel? Converting channel or creating channels? How to get channel loyalty? How to reach resellers? How to get reseller commitment? How to train resellers? How to follow up their business plan? How to negotiate a contract? How to build a platform for vertical resellers? Direct or Indirect?
    41. 42. Cloudy Channels
    42. 43. 5 Step Process Business Identification Channel Framework Channel Recruitment Channel Ramp Up Channel Management
    43. 44. Recruiting and Developing Channels for IT Companies in EMEA and US
    44. 45. Features >200 years of cumulated experience in business/channel management Wide knowledge across IT (Hware, Software, Telecom & Services) Europe, Middle-East & Africa, U.S. coverage In depth local knowledge Services designed for SaaS & Cloud Companies Chosen by leading Companies Celsius International: market and customer data Compubase: channel data Easy to turn on and off - Immediately operational Easy to expand or contract Result driven compensation The right skills for the right job Expertise Coverage SaaS/Cloud Expertise Partnership Flexibility Cost effectiveness
    45. 46. Benefits <ul><li>Immediate access to Cloud/SaaS business management expertise when you need it </li></ul><ul><li>Immediate access to most European, Middle East and African countries </li></ul><ul><li>Immediate access to U.S. </li></ul><ul><li>Result driven & cost effective services </li></ul><ul><li>Led by IT Senior Business Managers </li></ul>
    46. 47. Thanks! [email_address]
    47. 49. Also for IT Channel Sales Cycle Short Term Revenues What ITaaS brings LONG LOW What IT Channel like SHORT HIGH
    48. 50. Vertical vs Horizontal Customer Vertical Channel Horizontal Channel I know what I need I don’t know what I need <ul><li>Additional Revenues </li></ul><ul><li>No supply chain </li></ul><ul><li>Recurring Revenues </li></ul><ul><li>Good margin </li></ul>

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