Cloud Computing Crash Course


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  • We have noticed three different commission types:STANDARD USAGE BASED — The provider pays according to the current contract in place for other services — typically 10-25% of the MRR. COMMITMENT BASED — The customer will commit to an agreed resource utilization (e.g., CPU power, RAM, storage/SAN, bandwidth, etc) for an definite term (12, 24, 36 months).ONE-OFF NEGOTIATED. Many partners are new to cloud and do not have an agent program. They seek to cut you a contract on the fly.
  • Cloud Computing Crash Course

    1. 1. Track One:Cloud Computing Crash Course<br />Moderator:<br />Clark Atwood, Vice President, Concierge Communications (<br />Panelists:<br />Jason Baker, CTO ReliaCloud( <br />William Hiatt, CTO, RapidScale(<br />Brandon Peccoralo, Sourcing Consultant, COLOTRAQ (<br />Andrew Pryfogle, President & CEO, Terrapin Solutions, LLC (<br />Hannah Smitterberg, CEO, Cost Effective Technologies (<br />
    2. 2. Cloud Computing Crash Course<br />September 20, 2010<br />
    3. 3. Agenda<br /><ul><li>Please silence your phones
    4. 4. Review the opportunity
    5. 5. 10 minutes
    6. 6. Hear from experts on making money and best practices in Cloud Computing
    7. 7. 10 questions
    8. 8. 4 minutes per answer
    9. 9. Review a case study from an agent
    10. 10. Please make notes
    11. 11. Hold questions until the end</li></li></ul><li>What is Cloud Computing?<br />Quality questions and answers are harder to come by than a crisp $2 bill<br />Different views<br />Communications view<br />Network centric<br />IT Solution Provider view<br />Client technology centric<br />
    12. 12. Cloud Computing is ______.<br />Tiffany Bova<br />Research VP for Gartner<br />“How tech is delivered”<br />“How tech is acquired”<br />xChange Americas – August 2010<br />
    13. 13. “The Cloud”<br />Servers<br />Operating Systems<br />Applications<br />Hosting<br />Security<br />Public Network<br />CoS/QoS<br />Private Networks<br />Internet<br />Connectivity<br />Legacy<br />PSTN<br />Connectivity<br />Security<br />Premises Infrastructure<br />Equipment<br />End User Devices<br />Others<br />Single/Multiple Locations<br />
    14. 14. What is Driving Cloud Computing?<br />Cloud Computing<br />SW/ HW Updates<br />Reduce Labor<br />Compliance<br />Cost Reduction<br />Legislation<br />Extensibility<br />Scalability<br />Mobility<br />Consumption<br />Customers<br />
    15. 15. Cloud Opportunity<br />Eric Martorano<br />Director, Channel Strategy, Incentives and Partner Marketing at Microsoft <br />“Cloud services opportunities are six times that of hardware.”<br />xChange Americas – August 2010<br />
    16. 16. Who Supplies Cloud Computing?<br />Cloud Computing<br />Communication Providers<br />IT Support Companies<br />Hardware Manufacturers<br />Online Retail Companies<br />Etc……..<br />“Ultimately it is technical sales people that supply Cloud Computing.”<br />Clark Atwood<br />Channel Partner Expo – Sept 2010<br />
    17. 17. The fight is on!<br />Microsoft<br />Azure<br />Storage<br />Windows<br />BPOS<br />ForeFront<br />InTune<br />Bing<br />More…<br />Amazon<br />EC2<br />S3 & EBS<br />??<br />SQS & SNS<br />??<br />CloudWatch<br />??<br />More…<br />IBM<br />IBM Cloud<br />IBM SBS<br />??<br />Lotus<br />??<br />IBM SBD<br />??<br />More…<br />Google<br />??<br />Storage<br />Chrome<br />Apps<br />Postini<br />??<br />Google<br />More…<br />Dell<br />Oracle<br />Cisco<br />HP<br />
    18. 18. Panel of Experts<br />Educating Prospects<br />Industries to Capture<br />Desktop as a Service<br />Security<br />Mobility<br />Disaster Recovery<br />What’s Next<br />Sales Barriers<br />Commission Example<br />Program Overview<br />
    19. 19. Client Learning<br />Education is always a challenge to the sales process of any product. Your company looks at five different ways to help companies learn about Cloud Computing. Which one of this is best in a particular sales situation?<br />
    20. 20. Best ways to sell cloud<br /><ul><li>Tailor pitch to your audience
    21. 21. Business: Webinars, Use </li></ul> Cases, TCO<br /><ul><li>Technical: Let them play </li></ul> with it<br />13<br />
    22. 22. Industry Targets<br />You have an impressive client list posted on your Web site by industry. What are the top three industries that embrace Cloud Computing and what is the secret to penetrating them?<br />
    23. 23. Hot Industries for Cloud<br />Environmental<br />Lifecycle<br />Cyclical Resource Utilization<br />Don’t think vertical, think application<br />Rate of adoption<br />Potential Scale<br />
    24. 24. Monthly Fees<br />How do you transition businesses into a monthly fee for Desktop as a Service (Daas) instead of paying once for a computer and software and keeping it for five plus years?<br />
    25. 25. <ul><li> Some customers already used to paying for part of desktops as a fee
    26. 26. EX: Microsoft Enterprise Licensing Agreement
    27. 27. Position it by the numbers
    28. 28. Look at desktop costs
    29. 29. Procurement (Buy vs. Lease)
    30. 30. Deployment
    31. 31. Sustainment</li></li></ul><li>Security<br />Many security solutions are being embedded into product offerings or utilizing existing security options like SSL. <br />Where is Cloud Security headed and how does that affect the indirect channel?<br />
    32. 32. Hybrid<br />Private<br />Company A<br />Public<br />Company B<br />Company B<br />Company A<br />Company C<br />Company D<br />Company D<br />Company C<br />Company E<br />Company E<br />Public, Private, Hybrid?<br /><ul><li>Standardization & reputation
    33. 33. Size of organization
    34. 34. Tradeoffs
    35. 35. Type of data </li></ul>SIMPLE | SMART | SECURE<br />
    36. 36. Mobility<br />How does mobility play in the Cloud space and how do agents make money combining mobility and Cloud Computing?<br />
    37. 37. “40 Million Americans occasionally “Tele-work” every month.” –<br />Cloud Computing is a Huge Driver for Mobility<br />Wi-Fi-connected Laptops are not sufficient when “Always On” is the requirement<br />3G & 4G Connectivity is Critical<br />Big Up-front & Recurring dollars being paid out.<br />- AT&T, Verizon, Sprint<br />
    38. 38. Disaster Recovery<br />Disaster Recovery as a Service (DRaaS) is needed by any business that wants to survive a disaster. You list some common threats on your Web site. How do you position this service, which the client hopes they will never use, and still help the customer feel they are paying for something valuable?<br />Reasons for Disaster Recovery<br />•    Hackers •    Major power failures •    Terrorist attacks •    System administration errors •    Natural Disasters and •    Computer Viruses<br />•    Other<br />
    39. 39. <ul><li>Size of business
    40. 40. Locations
    41. 41. Employees
    42. 42. Revenue
    43. 43. Cost of downtime
    44. 44. Lost Productivity
    45. 45. Lost Billings
    46. 46. Challenge vs. opportunity
    47. 47. Outsourcing vs. doing it themselves</li></li></ul><li>The Next Wave<br />E-mail and CRM have enjoyed some rapid growth<br />in the Cloud Computing space. What is the next wave <br />of Software as a Service that we should be preparing <br />to see take market share from its premises-based sibling?<br />
    48. 48. Software<br />as a Service<br />I.T. Service<br />Providers<br />Infrastructure<br />as a Service<br />Developer<br />Platforms<br />XaaS – Everything as a Service<br />CSC<br />MSI<br />Kaseya<br />BMC<br />ConnectWise<br />Etc.<br /> Amazon EC2<br /><br />VMWare<br />Citrix<br />Etc.<br />Google Apps<br /><br />Zoho<br />Microsoft (Well,<br />Sort Of!)<br />Etc.<br />Google <br />App Engine<br /><br />Microsoft<br />Azure<br />Customer Size<br />Small Mid-Sized Large<br />XaaS<br />A comprehensive solution that <br />combines IT Services with IaaS & SaaS <br />in a platform that is designed specifically for<br />small & mid-sized organizations<br />SIMPLE | SMART | SECURE<br />
    49. 49. Sales Barriers<br />In the survey you did earlier this year, you identified eight potential barriers to adopting Cloud Computing. How do overcome these and other barriers in the sales process?<br />
    50. 50. Overcoming Barriers in the Sales Process<br /><ul><li>Biggest Barrier: Giving up control
    51. 51. Biggest Competitor: In-house IT
    52. 52. Walk before you run
    53. 53. Identify first App to cloudify
    54. 54. Storage is the low-hanging fruit
    55. 55. Prove the business case first</li></li></ul><li>High Dollar Sales<br />Agents are seeing their existing base of MRC crumble under price compression as most solutions move to a commodity. What products in Cloud Computing hold the greatest promise for commissions?<br />
    56. 56. The Key: Increase Share of Wallet<br />STOP thinking “Total Telecom Spend” <br />START thinking “Total Technology Spend”<br />Cloud Computing Recurring Revenue Sources<br /><ul><li>Virtualized Servers - $250 - $400 per server
    57. 57. Cloud Storage - $200 - $500 per SAN
    58. 58. Desktop Virtualization - $125 - $250 per desktop</li></li></ul><li>Agent Programs<br />Commissions vary in Cloud Computing from small onetime payments to residual income streams. Can you give us some examples of Cloud Computing Agent programs and what to expect in commissions?<br />
    59. 59. Commission Structure<br />STANDARD USAGE<br />COMMITMENT BASED<br />ONE-OFF NEGOTIATED<br />Provider pays according to the current contract in place for other services — typically 10–25% of MRR. <br />Provider pays commission based on a fixed monthly charge, no commissions paid on charges for exceeding committed monthly usage.<br />Commissions are negotiated for each individual deal.<br />
    60. 60. 9/23/2010<br />Terrapin Solutions Confidential<br />32<br />A Cloud Case StudyTexan HyundaiBrought to you by Terrapin Solutions, your Cloud Services Master Agency<br />
    61. 61. 9/23/2010<br />Terrapin Solutions Confidential<br />33<br />Customer Intro<br />Owners bought a defunct auto dealership in Houston, TX<br />Inherited an 8-year old PBX and some old PCs and old network infrastructure<br />2 Driving Goals<br />Keep cash investment on infrastructure to a minimum<br />Open store in under 30 days<br />
    62. 62. 9/23/2010<br />Terrapin Solutions Confidential<br />34<br />The Initial Opportunity<br />Single PRI<br />T1 DIA<br />Total Revenue Opportunity? < $1,000 MRR<br />
    63. 63. 9/23/2010<br />Terrapin Solutions Confidential<br />35<br />Just a Few Extra Questions<br />Can you tell me about your computing environment?<br />Servers?<br />Storage?<br />Desktops?<br />Mobile Workers?<br />The Answers we got<br />Need to run ADP<br />ADP required huge hardware investment in servers and desktpos<br />Was about to spend over $75,000 on infrastructure<br />Was about to sign a IT Support contract for $80,000 per year<br />
    64. 64. 9/23/2010<br />Terrapin Solutions Confidential<br />36<br />The Winning Solution<br />Virtual-Q Cloud Computing<br />Virtualized Desktops<br />New HP Thin Clients at <$300 per machine<br />Cloud-based storage, processing, and auto-backups<br />Fully Virtualized their ADP platform<br />7x24 Live Support<br />Appia Hosted VoIP<br />Cisco IP Phones on Every Desk, No PBX or Voicemail Hardware<br />Custom Auto Attendant <br />Appia MPLS<br />QoS for Voice, CoS for Virtual-Q Traffic<br />Installed Entire State-of-the-Art Solution in <30 Days<br /><$10,000 in CAPEX<br />
    65. 65. 9/23/2010<br />Terrapin Solutions Confidential<br />37<br />The Final Revenue Picture<br />Virtual-Q - $3,200 per month<br />Appia Hosted VoIP - $1,850 per month<br />Appia MPLS - $750 per month<br />Total Monthly Revenue: $5,800 per month<br />Almost 6x Greater than Original Opportunity<br />Note: Resulted in over $100,000 Reduction in TCO<br />
    66. 66. 9/23/2010<br />Terrapin Solutions Confidential<br />38<br />Summary<br />If Cloud Services is Not part of your portfolio, you’re LEAVING MONEY ON THE TABLE<br />Add “Just a Few More Questions” to your Selling Process<br />You don’t have to be expert in the Cloud to start – Rely on Experts<br />Texan Hyundai Ownership Group is now doing this again at up to 7 more locations in the next 6 months.<br />Will have turned a $1,000 opportunity into a $40,000+ opportunity<br />
    67. 67. 9/23/2010<br />Terrapin Solutions Confidential<br />39<br />Time to Grow Revenue with The CloudThank you<br />
    68. 68. Track One:Cloud Computing Crash CourseAudience Questions & Answers<br />Moderator:<br />Clark Atwood, Vice President, Concierge Communications (<br />Panelists:<br />Jason Baker, CTO ReliaCloud( <br />William Hiatt, CTO, RapidScale(<br />Brandon Peccoralo, Sourcing Consultant, COLOTRAQ (<br />Andrew Pryfogle, President & CEO, Terrapin Solutions, LLC (<br />Hannah Smitterberg, CEO, Cost Effective Technologies (<br />
    69. 69. Thank you!<br />