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 Impacts on Channel
Personal Computers Cloud Computing 80s 90s 00s 10s 20s History of IT Channels Internet
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
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
SaaS/Cloud customers Shifting Customers SaaS/Cloud replaces existing applications (mostly on-premise) New Customers SaaS/Cloud is a new application for the Company
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
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 Distributors Cloud Computing
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
Consulting Company assisting large Companies in their IT decisions
Becomes involved in reselling IT solutions with the Cloud Computing
Signed agreements with several SaaS/Cloud players including Google Aps
Just bid with Valeo for the installation of 30 000 users with Google offering
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
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
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 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?
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, 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