Cloud Champion - Week 5: Go To Market

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This is round five of our Cloud Champion course, focusing on Going to Market. Mobility, social, Big Data and the cloud – these are the four megatrends driving budgets out of IT and into lines of business including HR, Finance and Marketing. It means a profound shift in how we reach and influence Business Decision Makers. And a rethink on how we focus our sales and marketing efforts on industries with the biggest opportunities for Microsoft Partners.

Catherine Vissiere, a senior marketer at Microsoft, shares local research on the Australian market opportunity and what to consider when building a marketing plan targeting Business Decision Markers.

Cloud Champion is Microsoft Australia's 12-week step-by-step program to help our partners be successful with selling Cloud solutions. For more information on the course, please visit www.aka.ms/CloudChampionBlog.

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  • Firstly, I’m going to give you a brief snapshot of a large piece of research we conducted to assess where is the opportunity for Microsoft and our partners this FY.
  • Environment is cluttered – with the advent of digital media, the challenge isn’t so much our to reach your audience, nor how to engage with your customers, it’s how do your break through the noise.The other challenge is that we need to change the type of realtioship we have we our audienceAs we evolve from a licencing model to a subscription model, so must our customer relationship.Gone are the days you spoke to your customer once a year or before the agreement is up for renewal.With online services, we need to evolve into an always on relationship, one where you are perceived and are constantly be adding value to your customer. Support, maintenance, and managed service require a different model by which we manage the relationship with the customer
  • Firstly, I’m going to give you a brief snapshot of a large piece of research we conducted to assess where is the opportunity for Microsoft and our partners this FY.
  • This graph shows you the industry with the greater opportunities based on an index that combines 20 factors that indicate the level of IT maturity, the addressable revenue. Opportunity index score is driven by High % of businesses using Virtualisation technologyHigh % of businesses with plans to have increased BI capabilityHigh % of businesses with plans to have increased Mobility capabilityHigh % of businesses with plans to have increased cloud capabilityThis gives us an industry view.#1 Professional services (which aggregates legal, accounting, architecture and engineering services as well as computer system design.) TOTAL APPROX 11K organisation, just under 1M employees all up. In FY 14 we project that PS will grow at 4.1 % p.a# 2 Small BusinessApprox 820K businessesTotal Employee pop 4.5MThe SMB segment in Australia, employs >4.5Million people7SMB accounted for 57% of the private sector industry value added in 2010/117SMB technology spend continues to rebound following the GFC in 2008/09.5 The SME of the future are expected to benefit from household outsourcing, increasing entrepreneurial opportunities, lesser reliance on capital and lenders prepared to look at cash flow lending.4There will be a swing towards tactical IT spending, where solutions and productivity will drive decisions and not price6# 3 Financial Services* 8200 businesses and employs 194KpeopleFinance and insurance is one of Australia’s largest sectors, generating 10.2% of gross value added in FY12.Australia ranked 5th amongst the world’s leading financial systems and capital markets in the 2012 World Economic Forum Financial Development report.Australia’s strong growth outlook, commodity prices and trading links to Asia will continue to make it an attractive option for international investors.3#4 EducationAustralia enjoys a highly educated workforce with an average of 37% of employed persons holding a tertiary degree or higher1International education is Australia’s fourth largest export industry5Going forward, there will be strong demand for up-skilling and vocational education. To ensure Australia’s competitiveness in the global education market, the industry must embrace technology advancements and new paradigms powered by superfast broadband.1#5 Healthcare* Just under 50K businesses, employs 1.3M peopleThe Healthcare sector currently employs 1.35 millions workers, and is predicted to become Australia's biggest industry division and employer by 2050.4Government Healthcare budgets are under significant cost pressures due to changing demographics and increasing cost of care.3Health Insurers see technology as a key vehicle to increase member interaction and customer loyalty.
  • Growth for the industry is projected at 4.1 per cent p.a. to 2017 on the back of strong domestic demand, profits and investment activity.3Key workloads:Productivity applicationsERPOSDatabaseVirtualisation and Management
  • SMB accounted for 57% of the private sector industry value added in 2010/117SMB technology spend continues to rebound following the GFC in 2008/09.5Workloads with highest growth forecasted up to 2017ERP, ProductityandOS
  • Includes capital markets, banking and insurance Finance and insurance is one of Australia’s largest sectors,.Australia ranked 5th amongst the world’s leading financial systems and capital markets in the 2012 World Economic Forum Financial Development report.Australia’s strong growth outlook, commodity prices and trading links to Asia will continue to make it an attractive option for international investors.3The insurance sector has been impacted by a number of natural disasters from 2010/12, Despite this the sector is projecting 4.0 per cent growth p.a. to 2017.3FSI business is one of the prime industry using older echnology – ripe for refresh both Server & OS
  • Growth is mostly in Medium and small business – EPG is actually growing backwardsHuge opp to lead with devicesOpportunity for MSAll state dpts currently covered by 3-5yr EES agreements.Look to areas beyond ESS such as Bing and VisioHigher Education: Continued growth in IT spend leading to opportunity in Cloud, Licensing of virtualisation of end devices and premium products (CRM and Azure). Private Sector: Faces the most competition by Apple devices leading to downside pressure on desktop products. Opportunity is with premium products and cloud services
  • Microsoft Share of Addressable SW market (FY12) 46%Opportunities for Microsoft. Big Opportunity for OS refresh New models of care that innovate the way care is delivered: Tele health (Lync, Skype, Active Directory, Mobile Devices)Consumer empowered healthcare: Healthvault, Xbox LiveClinical Mobility and BYODData sharing initiatives (BizTalk, SQL repositories) and Big DataPrivate and Public CloudTop Workloads:Data baseProductivityOUR BIGGEST OPPORTUNITIES in terms of addressable market is with in small to medium size businesses (below 250PC) as MSFT only have 14% of the that market vs very saturated in EPG 95% and smb is growing the fasted at 8.8% CAGR
  • I’m going tocover some mega trends in the market place that are shifting our industry as a whole.You might think these trends are applicable to consumers only, and if you are selling to businesses, why should you care? Well, chances are the business you are selling to is probably selling to consumers.So I’d like you to think of these data points as all relating to your business, whether directly (the way your market yourself) or indirectly (this are the trends your customers are experiencing)
  • MobilityWe know is driven by Employees who want to be mobileWe also know CIOs are telling us Mobile and Tablets are a top priority for them .So mobility means many things: devices, delivery of services to remote groups (we talked about education and health as examples)Finally I won’t spend much time on this but research talks about multi screen here, but there is also new behaviours development in the way users consume content in a multi screen environements . Our Friends at Mi9 have done loads on resarhc on this. For anyone interested please contact me.BIG DATADiff between local and global trendsBig data seems to be more important outside of IT – CMO, CFOCLOUDMeans a lot of thingsPriorities if private cloud.Polarised view of cloud computing with 40% of CIOs rating as very important and 40% not on agendaKey cloud workloads mentioned were website hosting and e-commerce 41% rated regulatory compliance as key priorityOther data points shows that SMBs are the slowest to adopt cloud, Server and Storage virtualisation projects are still happenining but there is a growing propotion of bsuinesses moving to a managed services model.SOCIALOne-quarter(25%) of businesses are doing a project collaboration initiative in 2013, and the same number are doing knowledgebase management projects.Businesses are also using social tools to connect outside organisation boundaries (20% have an external collaboration project and 14% will deploy social CRM).
  • All C-level execs are proactively involved in ICT-led change in 20% to 40% of businesses– signifying it’s importance to modern day business. I don’t have comparative figures, but I’d suggest this is one of the major changes in ICT and business over the past 5 or 6 years. No surprise that the CIO is the executive most likely to be proactively driving ICT-led innovation in the organization (27% say the CIO does this to a great extent, and 25% say a lot).the CEO is the second most involved executive in driving ICT-led innovation This may contrast with the received wisdom that the CMO is today a leading player in driving ICT, and is indeed starting to take over some ICT budgets.In fact, the CMO in ANZ is less influential – with businesses saying the Customer Service Leader , COO, CFO and Sales director are more active in ICT innovations.
  • Cloud Champion - Week 5: Go To Market

    1. 1. www.aka.ms/CloudChampionBlog
    2. 2. THECLOUDCHAMPIONJOURNEY Full agenda listed on www.aka.ms/CloudChampionBlog Join MPN Training Time Eye on the Opportunity Transform the Business Go To MarketDemo ArmyCompeteSell Cloud Deploy Cross Sell/Upsell Introduce ISVs Change Management 5
    3. 3. Agenda - What’s different? - The opportunity - The mega trends
    4. 4. What is different?
    5. 5. Rules of marketers & sellers We are all storytellers
    6. 6. Where is the opportunity?
    7. 7. Industry opportunity index comparison 58.7% 46.6% 37.6% 31.7% 62.1% 56.5% 37.4% 49.8% 53.7% 59.2% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Financial Services Government Manufacturing Retail and consumer goods Professional services Education Telecommunications Mining, Oil and Gas Healthcare Small Business $522m $70m $599m $318m $489m $838m $802m $1,977m $1,632m $220m Opportunity index Very Low 0% Very High 100% 1st 2nd 3rd Opportunity index created by rating and ranking industries based on 20 factors that indicate level of IT Maturity and the potential impact of disruptive forces. Source: Capitalis, 2013 4th 5th
    8. 8. #1 Professional Services - AU Forecast addressable market 58 92 98 31 59 0 20 40 60 80 100 120 Database ERP Productivity Virt & Mgt OS $m Top Workloads/SW addressable ($M) Industry overviewAnalysts predictions  Business service / outsourcing  Creative & enabling software  Cloud computing  Big Data & Analytics  110k businesses  914k employees  Projected growth 4.1% p.a to 2017
    9. 9. #2 Small Businesses- AU Forecast addressable market 224.5 381.5 300 246.6 261 0 50 100 150 200 250 300 350 400 450 Database ERP Productivity Indentity & Security OS $m Top Workloads/SW addressable ($m) Industry overview Analysts predictions  BYOD  eCommerce  Apps to compete  Remote workers  Cloud  Mobility  820k businesses  4.5m employees  Will outpace enterprise (8.7% vs 5.5%)  Swing towards tactical IT spend driven by solution & productivity not price
    10. 10. #3 Financial Services - AU Forecast addressable market 360.4 184.6 148 227 149.7 0 50 100 150 200 250 300 350 400 Database Identity & Security Productivity Virt & Mgt OS $m Top Workloads/SW addressable ($M) Industry overviewAnalysts predictions  Commoditisation of transactions  Video conferencing  Outsourcing of non core functions  Big Data and BI  Cloud IT  BYOD  33.7k businesses  421k employees  Projected growth 4% p.a to 2017
    11. 11. #4 Education- AU Forecast addressable market 50.7 53 46.7 44.6 37.7 0 10 20 30 40 50 60 Database Identity & Security Productivity Virt & Mgt OS $m Top Workloads/SW addressable ($m) Industry overviewAnalysts predictions  Virtual delivery  Cloud computing  BYOD  12K businesses  898K people  Projected growth 4.5% p.a to 2017
    12. 12. #5 Healthcare - AU Forecast addressable market Industry overviewAnalysts predictions Top Workloads/SW addressable ($m) 37 24.7 30 26 26.5 0 5 10 15 20 25 30 35 40 Database ERP Productivity Virt & Mgt OS $m  Analytics & Research  BYOD & Mobility  Remote Health & Telemedicine  Remote Data Capture  49.4k businesses  1.35m people  Projected growth 4.5% p.a  #1 with oldest OS technology
    13. 13. The Mega Trends
    14. 14. IT megatrends Mobility Big Data Cloud Social  42% CIOs: ‘workers want to be mobile’  Priorities: Mobile (52%) & Tablets (66%)  Growing importance globally, but CIOs struggle to reconcile big data projects  Locally 44% CIO have no opinion on the issue  40% of CIOs say very important, 40% not  Website hosting & e- commerce  41% regulatory compliance = top priority  25% of business are exploring social initiative (collab & knowledge base)  20% social tools to connect outside of org
    15. 15. But… things are changing • Simple • IT speak • Single or dual audience • Business decides, IT implements • In a connected world we can’t just talk to a single workload Old New
    16. 16. My top 3’s

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