Beating the Odds - Strategies for Successful Alliances
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Beating the Odds - Strategies for Successful Alliances
- 1. Growing Profitable Strategic Alliances in a Complex Global Economy Case study in managing co-opetitive alliances The Conference Board October 20, 2011 Hotel Intercontinental, New York, NY
- 2. “Alliances have become crucial to many companies in this competitive global economy and yet more than half of them fail. This session will identify and discuss key elements critical to the development and management of successful alliances.” —Managing an alliance ecosystem —Fostering trust with partners —Partnering with competitors Presentation Abstract 2 Copyright © 2011 CA. All rights reserved.July 19, 2015
- 3. —CA Technologies Overview − Market dynamics, technology alliance program —Cloud − Mapping to CA’s Alliance strategy —VCE alliance: Market and corporate drivers, objectives, CSF’s − Ecosystem: Building trust in a co-opetitive environment − Increasing strategic relevance Presentation Agenda 3 Copyright © 2011 CA. All rights reserved.July 19, 2015
- 4. #1 Management Software Vendor* $4.5 billion annual revenue and strong profit Customers in virtually every country, including a majority of the Forbes Global 2000 ~$500 million and ~5,000 people annually designing and supporting software 30+ years in business managing complex heterogeneous environments Ranked among top 50 Greenest US companies CA Technologies leads the way globally *Source: Forrester Research, Inc., “Who’s Who in IT Management Software 2.0” by Jean-Pierre Garbani and Thomas Mendel, August 12, 2010 CA Technologies is an IT management software and solutions company. Our products enable customers to automate, manage and secure IT environments and deliver more flexible IT services. CA Technologies makes agility possible.
- 5. Partnering Taxonomy Global Service Providers/Outsourcers CSC, EDS Systems Integrators: Accenture, Deloitte Service Providers - traditional, cloud, SaaS. PaaS Technology Alliances: Microsoft, Cisco, SAP, VMware… Technology Integration Partners: An ecosystem of low to medium touch technology partners that deliver integrated add-on products to enhance CA’s solutions and align to meet CSU needs OEM/Resale/M&A Volume Channel 5 CA CONFIDENTIAL - Internal Use Only Charter: To develop market- changing, global technology- based alliances which provide material impact to market share, competitive differentiation and revenue for CA and its partners.
- 6. Technology Partner Stratification Strategic Alliances Technology Alliances Platform Partners Technology Partner Program Strategy alignment Revenue opportunity Sponsorship Scope Scale Feasibility Commitment Benefits, investment
- 7. CEO Priorities Apply innovation Can we drive growth and competitive differentiation through innovation? Maintain cost efficiencies Can we support continued cash and profit generation? Build/maintain a positive public reputation Can we grow our market share through a positive image? CIO Challenges Business Expectations have never been higher 7 CEO priorities of ‘return to growth” drive new implications for CIOs Increase business impact Can you explore new ways to serve the business? Increase business impact Can you explore new ways to serve the business? Improve quality of service Can you meet the performance demands of the organization — cost efficiently?Improve quality of service Can you meet the performance demands of the organization — cost efficiently? Manage risk Can you see risk to control it? Manage risk Can you see risk to control it? Reduce IT costs Can you embrace innovation for competitive differentiation and reduce costs? Reduce IT costs Can you embrace innovation for competitive differentiation and reduce costs? Provide transparency Can you see and resolve risk and performance issues in your business? Provide transparency Can you see and resolve risk and performance issues in your business? CEO priorities of “return to growth” drive new implications for CIOs CIO ChallengesCEO Priorities Grow through innovation Can we drive growth and competitive differentiation through innovation? Maintain cost efficiencies Can we support continued cash and profit generation? Attract and retain new customers Can we grow our market share through a positive corporate image? Increase speed and agility Can you find new ways to serve the business by delivering services faster and more cost effectively? Mitigate risk Can you see and resolve risk and security issues transparently for your business? Reduce IT costs Can you embrace innovation for competitive differentiation and reduce costs? CA Technologies VSA Overview Copyright © 2011 CA. All rights reserved.
- 8. 8 CIO’s are living with a “new normal”…but enterprise IT needs a game changer New Normal Demand Shorter Cycle Times Transformative Market Opportunity Consumerization of IT Collapse Cycle Times IT Budget Business Demand for IT Services Public Private IaaS SaaS PaaS
- 9. Cloud: the “IT Light Switch” Use Computing power . . . − On demand − Only for the time you need it − Give it back when you are finished − Pay for metered usage
- 10. 10 Customers choose different paths to cloud Do It Yourself Tools Converged Stacks Turnkey Solutions Service Provider Solutions CUSTOMER CHOICE CA’s mission: To provide exceptional value to our customers around cloud, no matter how it is acquired
- 11. Application Modernization Mobility Collaboration SAP, Oracle, MS Dynamics, PeopleSoft, Siebel, CA Clarity Virtual Desktop, Workspace Management, Mobile Applications Cisco QUAD, SharePoint, Exchange, Unified Communications, Knowledge Management Drive Adoption – Lower TCO – Migrate Application Workloads “Converged Stacks” form the basis for private clouds
- 12. SaaS Middleware Database Virtualization/ Operating System Cloud Computing/ SaaS Applications Enterprise Data Center/Private Cloud Cloud creates additional complexity; requires a new management model Top 5 challenges of cloud computing Management of hybrid world Performance monitoring Reliability/service assurance Automating service delivery across platforms Security Middleware Database Virtualization/ Operating System Public Cloud SaaS Infrastructure SaaS Applications Virtualization / Operating System Database Middleware Servers Storage Networking Applications All trademarks, trade names, service marks and logos referenced herein belong to their respective companies 12
- 13. Market sizing 13 Copyright © 2011 CA. All rights reserved.July 19, 2015
- 14. Global Launch: Breakout Innovation and New Market Entry “CA Technologies and VCE announced a global strategic alliance to deliver integrated private cloud solutions for VCE Vblock™ Infrastructure Platforms that help customers increase agility, reduce risk and lower costs…” May 4th Press Release Intranet/Extranet Presence EMC World, May 9-12, Las Vegas, NV
- 15. Customer ROIReduces deployment cost & risk Shared customer base Complementary offerings Provisional balance sheet for a technology alliance Shared competitors “Startup” – like operating model Sales & marketing alignment Competitive roadmap from other participants Matching speed, direction Channel scope Leveraged investment Trust, aligned execution & governance Revenues & margins Assets Targeted outcomes Liabilities / challenges
- 16. Plan of Record Set, staff, measure, interlock, govern 16 Strategy: Provide a portfolio of solutions for enterprises and service providers which directly impact economics, risk and time to market for Vblock-based services. Create market changing dynamics with partner/competitors. Objectives: 1 – Revenues 2 – Wins vs. HP, IBM 3 - Demonstrate first to market innovation Measures: 1 – Sell with and sell through revenues by geo 2 – Competitive wins vs. parent company offerings 3 – Routes to market Tactics: 1 – Assymetrical investment 2 – Level the playing field vs. parents’ competitive roadmap 3 – Establish references to create self sustaining momentum Dependencies: 1 – Alliance management and funding 2 – Marketing and development funding 3 – Sales & RTM enablement SWOT, gap analysis, solutions roadmap Committed business plan, shared incentives Market assessment, steering committee gates, exec sponsorship Aligned operating plans, contracts, partner enablement Balanced scorecard, GTM interlock Gates Staffing, risk mgmt, governance gates
- 17. 17 Offset weaknesses with strengths The Power of the Portfolio Source: CA Global Analysis Team Disclosed at CA Investor Day 29 July 2011 *As a percentage of 60% cross sell Lead ~20%* Service & Portfolio Management Virtualization and Automation Lead ~20%* Security ManagementService Assurance Lead ~40%* Lead ~20%* 60% of CA’s transactions are cross sells
- 18. CA VCE Parent A Parent B Parent C Product A Parity / second source Weak - Preferred Product C Weak Weak Preferred Product Cap Strong - Limited - Product Sec Strong Strong Product SA Strong Emerging Product N Strong Emerging - Solution V Entry Entry Solution I Entry Entry RTM A Strong Strong Strong Strong Weak RTM U Strong Limited Weak Strong Strong RTM F Weak Strong Strong Strong Strong ISV 1 S Strong Limited Limited Limited Limited Alliance Compete/collaboration mapping Requires clear communication and Rules of Engagement 18 Copyright © 2011 CA. All rights reserved.July 19, 2015 Lead / collaborate Proceed with caution / RoE Compete Concede
- 19. Risks and Mitigation 19 ProbabilityofOccurence High >75% Low <25% Impact (Deadlines, Costs, Quality, Revenue) Low High Medium 25%-75% 1 2 3 4 6 5 7 1. Alliance participant buys competitor 2. Alliance participant develops competitive offering 3. Joint Venture is disbanded 4. … 5. … 6. RTM expansion not realized 7. … 8. … 9. Enablement 10. Fail to align GTM Medium 8 910
- 20. Alliance virtual team structure – Strategy – Governance – Contracts – Alliance Launch – RTM Enablement – Portfolio Leverage – Reference Architecture – Field Technical Enablement – Sales & Pre-sales Interlock – Engagement Support – Solutions Strategy – Product Management – Engineering Interlock – Portfolio Leverage – Launch and Integrated Marketing – Communications, Events – Field Enablement – Collateral – Launch Mgmt – AR/PR GSPs GSIs Solution Providers Direct BU Solution s Alliance Marketing Alliance Program mgmt Field – Solutions mgmt – Solutions marketing – Channel enablement
- 21. Post Contract Roles: Alliance through Launch Invest- ment Review Strategy / Market req’mts definition Devel. & product mgmt PRD and roadmap Launc h Sales Partner sales RTM Auth Enabl e Enabl e Enabl e Lead organ. / partner Inter- dependency Alliance governance EMT/GM Alliance / strategy ** * * Developme nt Design Build Release Marketing ** ** Sales RTM Partner
- 22. 1. Shared interests are the cornerstone − Maintain interlock across sponsors, functions & geos − Build trust through honesty, communication and performance − Focus on the shortest path to first wins 2. Set clear, objective metrics, roles, boundaries and governance 3. Have frank discussions early and often − Level match, identify areas of sensitivity/contention, anticipate challenges − Pre-emptive conflict resolution and re-focus on intersecting interests. Focus on the issues, but don’t forget individual perspectives & bias. − Test boundaries and admit fault. 4. Never assume the situation will remain constant − Competitive pressures will mount − When the facts change, change the plan − Evolve the relationship Managing co-opetitive alliances 22
- 23. Questions?
- 25. FY’12 Summary of Operational Metrics Metric Measure Source Market Influence # partner press releases GSI demand pull CA website, All. Mkg, corporate commun. Team, GSI offerings Partner Monetization OEM Royalty Revenue to CA SAP tracking for SKUs Bookings from resold products Bookings by SKUs Influence Bookings from Joint selling/marketing SFDC, w/tech partner specified Partner Satisfaction Partner satisfaction score Alliance expansion Annual survey QBR scorecards Amendments, HC Technology Enablement Certifications (product and program) Day 0 support for new releases In Prime process Beta customers Solutions SKU’s In Prime process Advance funding Beta customers 25 CA CONFIDENTIAL - Internal Use Only Corporate Goals Accelerate Growth Delight Customers Thought & Technolog y Leader 14,000 People Cascaded goals throughout organization
- 26. AlignmentAlliance PlanStrategy Creation Execution with Partner(s) Market-Driven Strategic Alliance Development OWNER: Alliance Mgr CO-Owner EMT Sponsor DESCRIPTION: Partners OWNER: Alliance Mgr Co-Owner: EMT Sponsor DESCRIPTION: OWNER: Alliance Manager Co-Owner: EMT Sponsor DESCRIPTION: OWNER: CSU GM CO-OWNER: EMT, SBD DESCRIPTION: CA’s most strategic alliances executed as clearly defined programs with deliverables, executive sponsorship, committed resources, and objective measures for success. Go /no go Go /no go Go /no go
Editor's Notes
- Copyright © 2010 CA. All rights reserved.
- [Click] CA Technologies is a leading IT management software and solutions company operating globally in virtually every major IT market. Our products enable customers to automate, manage and secure IT environments and deliver more flexible IT services. #1 management Software Vendor according to Forrester Research 30+ years in business managing complex heterogeneous environments $4.5 billion annual revenue and strong profits ~$500 million and ~5,000 people annually designing and supporting software Customers in virtually every country, including majority of Forbes Global 2000 Ranked among the top 50 Greenest US companies by Newsweek Magazine
- Strategic Alliances: Formal relationships with industry recognized, global market leaders and market makers that 2 or more CA BU’s require for their strategic growth and revenue generation Global relationships that deliver potential for complementary technology where CA adds value Exploration of, and involvement in, new/emerging market opportunities for incubation Emerging Strategics: Formal relationships with industry emerging global market leaders and market makers that 2 or more CA CSU solutions perceive will significantly impact CA’s strategic growth Relationship focused on opportunities in emerging markets, new business models and alternative delivery models, such as service providers, Web, MSP, telcos and others Organizations that materially impact CA’s routes to market Organizations that materially change IT purchasing habits of CA’s customers Examples: Google, SalesForce.com, Amazon, (and other established partner/customers such as Verizon, BT, etc)
- 6
- [Click] As the global economy emerges from a prolonged slump, we’re seeing a “return to growth” mentality. Among CEOs that mentality manifests itself in a demand for: Innovation that can drive growth and enhance competitiveness; A desire to attract and retain new customers by delivering a positive image to the marketplace; and Continued pressure for cost efficiencies. These are CA Technologies views, but they also map pretty well to the results of a recent Gartner survey of over 2000 CIOs*. In that study, the top 3 business priorities for organizations in 2011 are 1) increasing enterprise growth, 2) attracting and retaining new customers and 3) reducing enterprise costs. These business demands have implications for IT – and for the CIO. The CIO is under pressure to: Increase speed and agility to more rapidly serve the needs of the business; Mitigate risk; and Reduce overall IT costs. CA Technologies has the broadest and most robust IT Management portfolio in the industry and this presentation will give you an understanding of our capabilities to help you meet the demands of your business. *Gartner Executive Programs Worldwide Survey of More Than 2,000 CIOs Identifies Cloud Computing as Top Technology Priority for CIOs in 2011 – January 21, 2011
- CA’s mission: Provide portfolio of solutions to design, build, manage, secure and assure heterogeneous environments 66% of Enterprises pursuing a private cloud strategy by 2015** 35-50% Operations and infrastructure resources that can be freed by moving to public cloud* = THE INNOVATION DIVIDEND *Source: “Gartner: Most CIOs have their heads in the clouds,” Beta News, 1/24/2011 **Source: “Private Cloud Computing Ramps Up in 2011”, Bittman and Scott, 3/3/2011, Gartner
- NIST definition When you ask the business to explain what they expect from IT with regard to their cloud they say . On demand Only for the time I need it Give it back when I am finished Pay for metered usage
- Hello. I’m xxxxxx. . . I’m here to talk to you about Accelerating the Benefits of Cloud and Converged Infrastructure through CA Service Management. First I’d like to read you this paragraph from our press release from May 4, 2011 “CA Technologies application migration and management capabilities address one of the biggest challenges CIOs face today, how to modernize application architectures and platforms. Whether migrating from distributed to virtual, or from mainframe to converged infrastructures, the CA Technologies solutions, coupled with Vblock, will deliver repeatable, consistent results.” <Click for BUILD> Why is this important? CA Technologies and VCE help customers use and provide cloud-based services that transform IT for agility, efficiency and business innovation. Providing services on Vblock Infrastructure Platforms from VCE represents a unique collaboration in deploying and implementing services designed to reduce risk and costs when moving applications to a private cloud computing environment. CA Technologies application migration capabilities “de-risk” the greatest challenge CIOs face (what I mentioned in the quote) of how to modernize application architectures and platforms. By implementing CA capabilities on VCE Vblock Infrastructure Platforms, organizations can employ a strategy for Vblock platform application migration to a cloud computing environment that is easy to deploy, helps reduce the cost of IT to customers, is consistent and repeatable. In this presentation, I’m going to discuss CA Technologies and VCE’s solution to accelerate the deployment and adoption of converged infrastructure and cloud based computing models that dramatically reduce the cost of IT while improving time to market for organizations. Key Takeaway: Now, more than ever is the time to get accelerate the deployment and adoption of converged infrastructure and cloud-base computing models that dramatically improve application performance and reduce IT operations risks and costs. To help you better understand the opportunity, here is my agenda for the next 30 minutes: < next slide>
- To realize the benefits of moving to cloud computing environment, you need a converged infrastructure. WHY <Click for BUILD> Faster time to market The Vblock infrastructure Platforms are built for virtual and cloud workloads deployments. These integrated units of infrastructure enable your IT organization to rapidly deploy a virtualized infrastructure that not only provides a quick return on your IT investment but saves IT time in deploying each separate component. <Click for BUILD> Better resource utilization The Vblock platform encapsulates networking, virtualization and storage in a single integrated system, rather the your organization having to deal with the complexity of integrating and managing multiple components. <Click for BUILD> -Helps to reduce risk The Vblock platform is the only platform that blends cloud computing with integrated, consistent enterprise security and compliance, and performance. The uniformity and consistency of infrastructure elements, ensure consistent and repeatable service delivery, thereby helping to reduce risk to the organization. <Click for BUILD> Lowers cost These pre-integrated and validated infrastructure platforms help reduce total cost of ownership. Consolidation and simplification through better use of resources and new mechanisms to procuring and managing these resources helps to lower costs. <Click for BUILD> -Also need Management Software Combining the integrated technologies of Vblock platforms with CA Technologies end-to-end management solutions on “CA-Technologies-ready” Vblock platforms provides your business greater out-if-the-box capabilities and quicker time to value. CA Technologies take the complexity out of managing business services, with easy-to-use solutions covering multiple management disciplines like automation, assurance, and security, that are integrated in our own labs, not on our customers' sites (saving your business money on integration costs) < next slide>