E245 agora week8

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E245 agora week8

  1. Agora<br />2/22/2011<br />
  2. Agora – V6<br />· For enterprise segment, higher touch model with direct sales force<br />· API support for buyers’ developers / IT admin staff· Live 24/7 customer support <br />· Online support forum<br />Buy-side· Reduced cloud compute infrastructure cost through capacity planning· Better, easier way of finding the right compute to match their needs<br />Sell-side: <br /><ul><li>Channel with low acquisition cost
  3. Better planning for demand variability ·
  4. Develop a working prediction algorithm & build product
  5. Develop matching algorithm for compute & build portal
  6. Sign up keystone customers to test product
  7. Develop relationships with cloud compute vendors</li></ul>· Technology partners – cloud vendors, management tools· Payment processor· Law Firm· PR / Marketing Firm· VC/Investor<br />Buy-side (most important):·High compute needs with high variability in usage <br /><ul><li>Primarily large enterprise· Companies engaged in image and video processing, conversion and rendering (e.g. digital media companies)· Scientific data processing (e.g. biotech research companies)· Financial modeling and analysis (e.g. hedge funds)·</li></ul>Sell-side (secondary- will follow if we are able to attract buyers): · Cloud infrastructure service providers<br />· Direct field sales force to enterprise customers<br /><ul><li>Inside sales for entry level</li></ul>· Integrators / consultants (e.g. Accenture)<br />· Physical – AWS· Brand – “efficiency in the cloud”· Intellectual property – prediction algorithm· Development resources – UX and scalable distributed backend· Inside & field sales force · Biz dev (channel partners and technology partners)· Support · Financial – angels and VCs. Amount TBD.<br /><ul><li> Subscription charge to buyers
  8. Pricing table scales based on # of servers and # of seats, with tiers
  9. % fee to sellers from channel activities
  10. Derivative products
  11. Customer acquisition costs – Demand creation + Field sales for enterprise, demand creation + inside sales for entry-level
  12. Revenue share with channel· Development Costs· Infrastructure costs – will scale with # transactions (a function of # customers and frequency of transactions per customer per day), and staff level· Support costs – will scale with # transactions· Legal costs – filing patents, incorporations, etc</li></li></ul><li>Agora – V7<br />· For enterprise segment, higher touch model with direct sales force<br />· API support for buyers’ developers / IT admin staff· Live 24/7 customer support <br />· Online support forum<br />Buy-side· Reduced cloud compute infrastructure cost through capacity planning· Better, easier way of finding the right compute to match their needs<br />· Real-time monitoring of cloud services to help avoid problems and enforce SLA enforcement <br />Sell-side: <br /><ul><li>Channel with low acquisition cost
  13. Better planning for demand variability ·
  14. Develop a working prediction algorithm & build product
  15. Develop matching algorithm for compute & build portal
  16. Sign up keystone customers to test product
  17. Develop relationships with cloud compute vendors</li></ul>· Technology partners – cloud vendors, management tools<br />· System integrators / Consultants<br />· Payment processor· Law Firm· PR / Marketing Firm· VC/Investor<br />Buy-side (most important):·High compute needs with high variability in usage <br /><ul><li>Primarily large enterprise· Companies engaged in image and video processing, conversion and rendering (e.g. digital media companies)· Scientific data processing (e.g. biotech research companies)· Financial modeling and analysis (e.g. hedge funds)·</li></ul>Sell-side (secondary- will follow if we are able to attract buyers): · Cloud infrastructure service providers<br />· Direct field sales force to enterprise customers<br /><ul><li>Inside sales (web/ telesales) for SMB / Departments</li></ul>· Integrators / consultants (e.g. Accenture)<br />· Physical – AWS· Brand – “efficiency in the cloud”· Intellectual property – prediction algorithm· Development resources – UX and scalable distributed backend· Inside sales force (web & telesales)<br />· Field sales force · Biz dev (channel partners and technology partners)· Support · Financial – angels and VCs. Amount TBD.<br /><ul><li> Subscription charge to buyers
  18. Pricing table scales based on # of servers and # of seats, with tiers
  19. % fee to sellers from channel activities
  20. Derivative products
  21. Customer acquisition costs – Demand creation + Field sales for enterprise, demand creation + inside sales for entry-level
  22. Revenue share with channel· Development Costs· Infrastructure costs – will scale with # transactions (a function of # customers and frequency of transactions per customer per day), and staff level· Support costs – will scale with # transactions· Legal costs – filing patents, incorporations, etc</li></li></ul><li>Integrators/ consultants as partners<br />Value to us<br />Recommendations to their clients<br />Fulfillment<br />$ from channel sales <br />Ability to scale<br />Value to them<br />Better technology to offer to their clients<br />Publicity of exciting partnership<br />Higher cost savings leaves $ in customer budget to spend on services<br />Possible revenue share <br />Cost <br />Cost of sales to channel (BD) as well as channel sales support & management<br />Revenue share (up to ~20%)<br />Exclusivity<br />Possible by region (but not likely)<br />
  23. James the Integrator<br />VP of Technology of a small IT consultancy firm focused solely on cloud, with established clients base in small and midsize business<br />His firm provides full consulting services in cloud, including vendor evaluation, software customization, deployment, and support<br />His team needs better tools to better serve his clients. In particular:<br />tools to effectively select the right set of services given his client needs<br />tools to effectively measure the performance and SLAs of the service providers<br />
  24. Other enabling relationships<br />
  25. Sales Cost Breakdown<br />Inside Sales<br />Sales Rep OTE: $125K<br />Overhead: $75K<br />Total: $200K<br />Field Sales<br />Account Executive OTE:$250K<br />Sales Engineer OTE: $125K<br />Overhead + Entertainment Expenses: $125K<br />Total: $500K<br />
  26. Two-Tier Sales Model<br />Inside Sales (web and telesales)<br />SMBs<br />Departments<br />Field Sales<br />Enterprises<br />Example: Salesforce.com<br />
  27. Income Statement: 1 year after launch<br />

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