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BaaS Extended


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This presentation is part of the Cloudy Channel Discovery Seminar

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BaaS Extended

  1. 1. Cloudy Channels Discovery Laurent Glaenzer dimanche 28 juin 2009
  2. 2. Time to rethink IT Distribution dimanche 28 juin 2009
  3. 3. Understand the new channels dynamics Diagnose your own distribution readiness dimanche 28 juin 2009
  4. 4. Agenda 8.45: Seminar Introduction 9.00: Attendees self introduction 9.30: Business as a Service presentation 10.30: Break 10.45: Distribution Readiness Workshop 12.00: Conclusions 12.30: Wrap Up dimanche 28 juin 2009
  5. 5. Business as a Service Laurent Glaenzer dimanche 28 juin 2009
  6. 6. Recruiting and Developing Channels for IT Companies in EMEA and US dimanche 28 juin 2009
  7. 7. Features Expertise >200 years of cumulated experience in business/channel management Wide knowledge across IT (Hware, Software, Telecom & Services) Coverage Europe, Middle-East & Africa, U.S. coverage SaaS/Cloud Expertise In depth local knowledge Services designed for SaaS & Cloud Companies Chosen by leading Companies Partnership Celsius International: market and customer data Compubase: channel data Flexibility Easy to turn on and off - Immediately operational Easy to expand or contract Cost effectiveness Result driven compensation The right skills for the right job dimanche 28 juin 2009
  8. 8. €10B in 2009 40% CAGR 75% of Companies use one application in SaaS In 2010, 45% of Companies will spend > 25% of their IT budget on SaaS compared to 23% today dimanche 28 juin 2009
  9. 9. dimanche 28 juin 2009
  10. 10. New Internet Bubble? Massive & global opportunity Very fast growth Viral and ground-up expansion Capital available for SaaS players Many ill-defined business models dimanche 28 juin 2009
  11. 11. Business as a Service Software as a Service Infrastructure as a Service Any application Server Virtualization licensed for its usage Storage Virtualization on demand (mostly Advanced lease over the web) infrastructure (pay per use) Business as a Service New Way of Buying New Way of Selling dimanche 28 juin 2009
  12. 12. Key Factors of Success Competitive value proposition Cloud SaaS Sustainable World class Business Model Go to Market dimanche 28 juin 2009
  13. 13. Customer View Pros Cons Lower cost Higher dependency on Pay as you go provider Zero Capex Security/confidentiality No or minimal IT Design limitation resources Faster time to use Performance Flexibility/scalability Offline access dimanche 28 juin 2009
  14. 14. SaaS/Cloud customers New Customers SaaS/Cloud 20 % is Shifting a new application Customers for the Company SaaS/Cloud replaces 80 % existing applications (mostly on-premise) dimanche 28 juin 2009
  15. 15. Business Development Large Companies Mid market 2008 2009 SME 2010 Soho 2011 2012 dimanche 28 juin 2009
  16. 16. Disruptive for Customers Acknowledge the benefits for their own business compare to existing solution Decision Pattern Support the idea of an externally hosted model Define what to do with existing assets (save waste) Accept transition costs + workload Check possibility of changing budget allocation from Capex to Opex dimanche 28 juin 2009
  17. 17. Disruptive for ITC Channels Long customer decision cycles IT Require market expertise Resellers Revenues cannibalization risk Limited room for IT services (design) Revenues cannibalization risk Service Limited presence in SME Integrators Require market expertise Limited IT knowledge Telcos Lack of agility dimanche 28 juin 2009
  18. 18. Think beyond the box Find two ways of connecting the 4 dots with 2 lines only dimanche 28 juin 2009
  19. 19. Think beyond the box 1 2 dimanche 28 juin 2009
  20. 20. Converting Channels Creating Channels dimanche 28 juin 2009
  21. 21. Converting Channels Creating Channels dimanche 28 juin 2009
  22. 22. IT Resell Channels Established in the 80s to resell PCs and on-premise solutions Involved in middleware services (i.e: maintenance) Well known by IT and purchase departments Interested Not interested Recurring revenues Low revenues Hype Requires market Customer request expertise Defend installed base Cannibalization risk dimanche 28 juin 2009
  23. 23. Motivate IT Resell Channel Channel proposal to be at least as rewarding as infrastructure + on- premise software (ie: extra services) Remuneration scheme to be rewarding at customer contract sign off Identify business for them and coach their business development efforts dimanche 28 juin 2009
  24. 24. LNA Infrastructure reseller (PC, Printers, on-premise software, networking) Focus on service business (middleware, virtualization,...) Created a SaaS Department to chase incremental business dimanche 28 juin 2009
  25. 25. Systems Integrators Established in the 70s with the emergence of IT Involved in IT design solutions and organization issues Well known by CEOs, CFOs and ITs Interested Not interested IT Services (solution Ready made solutions design, organizations) Low revenues Hosting/branding Little room for services applications Cannibalization risk dimanche 28 juin 2009
  26. 26. Motivate System Integrators Channel proposal to be integrated in a broader service proposition to customers Possibility to host application or customer data for the SI to propose outsourcing package Solid technical interface dimanche 28 juin 2009
  27. 27. Example Cap Gemini Pegasystem is a Business Process Management application provider Has cooperated with CapGemini to launch a new «BPM as a Service» platform Benefits for CapGemini: sell services and recurring revenues Dedicated Cloud Computing department at CapGemini dimanche 28 juin 2009
  28. 28. Telcos Long time established Companies Radical portfolio extension since the Internet appearance Well known by Purchase dpts and more and more IT Interested Not interested Portfolio extension Aligned with business Requires IT knowledge model Disruptive for IT Data & application decision makers hosting dimanche 28 juin 2009
  29. 29. Motivate Telcos Possibility for the Telco to host application or customer data (branding option) Solid on-boarding program for sales & technical teams Dedicated teams to do out-band prospection dimanche 28 juin 2009
  30. 30. Example BT Porfolio expansion through a multi solutions offering Data/Applications hosted by BT Complementary to broadband internet offering dimanche 28 juin 2009
  31. 31. Converting Channels Creating Channels dimanche 28 juin 2009
  32. 32. Vertical Channel Need Identification Vertical Channel Point of Service Customer purchase Provider dimanche 28 juin 2009
  33. 33. A Massive Presence IT Companies Business Resellers Services Integrators Companies 120 000 Companies* 1 800 000 Companies** (*) EMEA Source Compubase (**) Western Europe Source IDC dimanche 28 juin 2009
  34. 34. Services categories Accounting Collaboration Sales & Marketing Manufacturing HR Finance/Insurance Business Marketing Outsourcing HR consultants Accounting consultant Agencies services Companies Business Marketing Training Business Consultants Business agencies Companies Consultants Consultants Accounting Accounting Business Companies Companies Consultants dimanche 28 juin 2009
  35. 35. Non-Contractual Resellers Role Compensation Referral • introduce the product to customer • 10% discount • register the customer • no upfront payment • introduce the product to customer • 20% discount Interface • register the customer • no upfront payment • invoice the customer • introduce the product to customer • 30% discount Facilitator • register the customer • Online training • invoice the customer • no upfront payment • train the customer dimanche 28 juin 2009
  36. 36. Vertical Channel Platform dimanche 28 juin 2009
  37. 37. Business Services Huge variety of Companies 90% between 1-10 employees (many free-lance) In all businesses Interested Not interested Portfolio extension Certification/ upfront Services opportunity contract Recurring model Complicated process Credibility Technical involvement dimanche 28 juin 2009
  38. 38. Motivate Vertical Channel Turnkey solutions Hassle free resell platform Direct customer support/hot line Room for consulting services dimanche 28 juin 2009
  39. 39. Example Lixao Communication / Web design agency Mostly involved in communication design and web development for SMEs Has added Emailing, data hosting, collaboration tools for their customers Benefits: tracking their customer evolution and keep the conversation open dimanche 28 juin 2009
  40. 40. Example Accounting Accounting Company with 130 employees Has never been involved in reselling IT equipment or software Often asked advices by SMEs without IT management Would consider including SaaS/ Cloud solutions in their offering dimanche 28 juin 2009
  41. 41. Aggregators Applications Aggregators Channel Providers Application Hosting Customers Data Hosting Servicing Resellers (billing) dimanche 28 juin 2009
  42. 42. Aggregators Mostly startup Companies Various business models Various services offering Interested Not interested Solid value proposition Room for hosting No markup possibility application & data Recurring model dimanche 28 juin 2009
  43. 43. Motivate Aggregators Make sure there is room in your business models for them to provide: access to specific channels, customers or complete your service offering One on one negotiation dimanche 28 juin 2009
  44. 44. Example Revevol 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 dimanche 28 juin 2009
  45. 45. The new channel map Converted Channels Vertical Channels IT Channels Consultants System Integrators Accountants VARs Marketing Agencies Telcos SaaS Resellers/Dist OEMs Application Hosting Direct Data Hosting Direct Play Aggregators dimanche 28 juin 2009
  46. 46. Don’t push on a rope dimanche 28 juin 2009
  47. 47. Demand Demand Fulfilment Generation dimanche 28 juin 2009
  48. 48. Fulfilment vs Generation Demand Fulfilment Generation Comments Full dedication IT Vendor direct ***** ***** Limited capacity Great coverage IT Vendor Channel **** * Limited mindshare Good coverage Integrators *** *** Good push Proactive demand Vertical Channel * **** No supply chain dimanche 28 juin 2009
  49. 49. There is no perfect channel There is only a perfect balance dimanche 28 juin 2009
  50. 50. Dealing with complexity Expanding to Expanding to US How to get channel loyalty? Europe How to compensate the channel? How to reach Converting channel or resellers? Direct or Indirect? creating channels? How to build a platform for vertical resellers? How to get reseller How to train commitment? resellers? How to follow up their business plan? How to negotiate a contract? dimanche 28 juin 2009
  51. 51. Cloudy Channels dimanche 28 juin 2009
  52. 52. 5 Step Process Business Channel Channel Channel Channel Identification Framework Hiring Ramp Up Management dimanche 28 juin 2009
  53. 53. Expansion Cost InHouse Lemon Operations 300 300 225 150 150 75 50 80 0 1 Country 2 Countries dimanche 28 juin 2009
  54. 54. Expansion Time InHouse Lemon Operations 0 3 6 9 12 Months 12 3 dimanche 28 juin 2009
  55. 55. Channel Expertise Acquisition InHouse Lemon Operations 0 1 2 3 Years NOW dimanche 28 juin 2009
  56. 56. Benefits Immediate access to Cloud/SaaS business management expertise when you need it Immediate access to most European, Middle East and African countries Immediate access to U.S. Result driven & cost effective services Led by IT Senior Business Managers dimanche 28 juin 2009
  57. 57. Thanks! dimanche 28 juin 2009
  58. 58. dimanche 28 juin 2009