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Cloud: Space for the Channel?,[object Object],Justin Pirie,[object Object],@justinpirie,[object Object],blog.mimecast.com,[object Object],jpirie@mimecast.com,[object Object],IAMCP - London,[object Object],December 14th 2010,[object Object],matthewbradley,[object Object]
Analyst Blogger,[object Object]
Community Manager,[object Object]
Social Media Influence,[object Object]
Where I work,[object Object]
Cloud Services for Microsoft Exchange,[object Object],tipiro,[object Object]
Cloud Wrapper,[object Object]
Email Security,[object Object],matthewbradley,[object Object]
Email Continuity,[object Object],neilalderney123,[object Object]
Email Archive,[object Object],dolescum,[object Object]
How the problem used to be solved...,[object Object]
Benefits of Google Apps,[object Object]
For Microsoft Exchange,[object Object]
What do users get?,[object Object],minifig,[object Object]
Unlimited Storage,[object Object],mescon,[object Object]
Fast Search,[object Object],Ronan_C,[object Object]
Uptime,[object Object],szeke,[object Object]
Over 600,000 users can’t be wrong!,[object Object]
Cloud: Space for the Channel?,[object Object],matthewbradley,[object Object]
2010 Hype Cycle,[object Object]
2010 Hype Cycle,[object Object]
How did I get here?,[object Object],Paul Wicks,[object Object]
To understanding Cloud,[object Object],Wen Nag (aliasgrace),[object Object]
Not the train,[object Object],Andrew®,[object Object]
Or my Brompton,[object Object],Ben Cooper,[object Object]
It was lots of this...,[object Object],nep,[object Object]
And this... 8 years running a VAR,[object Object], ParaScubaSailor,[object Object]
Inthe beginning...,[object Object],LIVING_BY_THE_MOMENT,[object Object]
What is IT for?,[object Object],le niners,[object Object]
What do we do?,[object Object],Daniel Mohr,[object Object]
Production Function of IT?,[object Object], bewarenerd,[object Object]
Sound Academic?,[object Object],a_sorense,[object Object]
Combination of Inputs,[object Object]
To produce Outputs,[object Object],edwin.11,[object Object]
IT’s are hard to find,[object Object],ilovememphis,[object Object]
Sales: Prospects into Orders,[object Object],labanex.com,[object Object]
Supply Chain: Orders into Invoices,[object Object], jamesjyu,[object Object]
Finance: Invoices into Cash,[object Object],alancleaver_2000,[object Object]
What does IT do?,[object Object],Daniel Mohr,[object Object]
IT Production Value #1 = Speed,[object Object],TexasEagle,[object Object]
Strategy into execution,[object Object],Jeffrey Barke,[object Object]
Fast as Possible,[object Object],Warren D,[object Object]
IT needs to be Responsive,[object Object],Chris Devers,[object Object]
Not a bottleneck,[object Object],Domingos Soares Neto,[object Object]
IT Production Value #2 = Scale,[object Object],....Tim,[object Object]
Take Operations,[object Object],Detroit Public Library,[object Object]
Increase Capacity, Reduce Cost,[object Object],ABB,[object Object]
IT Should Equal Agility,[object Object],Picture Taker 2,[object Object]
Traditional IT Dept.,[object Object],@appirio,[object Object]
Idea = Agile,[object Object],Picture Taker 2,[object Object]
Reality for IT = Quicksand,[object Object],sasamaster,[object Object]
What users got...,[object Object],xetark,[object Object]
Business feeling about IT,[object Object]
Outsourced IT Dept.,[object Object],@appirio,[object Object]
Cheaper Labour...,[object Object],stev.ie,[object Object]
Contracts, Change Requests,[object Object],Kevin H.,[object Object]
Business feeling about IT,[object Object]
IT using Managed services,[object Object],@appirio,[object Object]
In Control?,[object Object],CarbonNYC,[object Object]
Getting on better...,[object Object],Arno & Louise,[object Object]
Cloud Utopia,[object Object],@appirio,[object Object]
Reality,[object Object],Picture Taker 2,[object Object]
Align IT and business,[object Object],technicallyCreative,[object Object]
Why is Cloud Different?,[object Object],tipiro,[object Object]
You don’t worry about Scale,[object Object],Dru!,[object Object]
Or Technical Details,[object Object],Rev. XanatosSatanicosBombasticos (ClintJCL),[object Object]
Continuous Updates,[object Object],The Doctr,[object Object]
Game Driven Design,[object Object],Earl - What I Saw 2.0,[object Object]
Loosely Coupled Systems,[object Object],ElenahNeshcuet,[object Object]
Separated Config and Code,[object Object],sadashotit,[object Object]
Fewer Dependencies,[object Object],Dave ®,[object Object]
Reconfigure Faster,[object Object],Phillie Casablanca,[object Object]
Faster Gratification,[object Object],lisatozzi,[object Object]
Agile Systems,[object Object],Picture Taker 2,[object Object]
Lessons Learnt,[object Object]
Cloud Annual Investment,[object Object]
Cloud Cumulative Investment,[object Object]
“100% ROI in less,[object Object],than 100 days.” ,[object Object],Chris Petrie, IT Director,[object Object]
Cloud Paradigm Shift,[object Object],tipiro,[object Object]
What does this mean for the Channel?,[object Object],massdistraction,[object Object]
Perfect Storm Approaching?,[object Object],terren in Virginia,[object Object]
From CapEx,[object Object],Ian Muttoo,[object Object]
To OpEx,[object Object]
Cloud: Shift in Focus,[object Object],ihtatho,[object Object]
Away from Technology,[object Object],Daveblog,[object Object]
Towards Business,[object Object],Lars Plougmann,[object Object]
Why is the Cloud Scary for Channel?,[object Object],Fellowship of the Rich,[object Object]
Offers a lot of what the channel used to,[object Object],pixelpyro,[object Object]
Disrupts the Financial Model,[object Object],DavidDMuir,[object Object]
And the skills required,[object Object],jypsygen,[object Object]
Represents a Massive Change,[object Object],416style,[object Object]
Why?,[object Object],jessicafm,[object Object]
“We're rebooting, re-pivoting, re-transitioning the whole company around betting big on cloud services” ,[object Object],Kevin Turner, CFOWPC 2010   ,[object Object]
“A "SaaS first" policy is being enacted in the majority of small and midsize businesses”,[object Object],Feb 2010,[object Object]
Channel needs to embrace Cloud,[object Object],Ben McLeod,[object Object]
What’s Next?,[object Object],.reid.,[object Object]
Critical to Retain Trusted Advisor Status,[object Object],thorinside,[object Object]
Means YOU need to be doing the Educating,[object Object],katrinalopez.,[object Object]
Cloud is Evolution AND Revolution,[object Object]
You need to join in,[object Object],quinn.anya,[object Object]
Which means reselling Cloud Services,[object Object],pixelpyro,[object Object]
#1 Construct your Portfolio,[object Object],bucklava,[object Object]
#2 Eat your own Dog Food,[object Object],playerx,[object Object]
#3 Sell Support,[object Object],markhoekstra,[object Object]
#4 Add Services around Cloud,[object Object],abbyladybug,[object Object]
#5 Cross Sell, Up sell. Keep IT Budget!,[object Object],nataliej,[object Object]
#6 Do Due Diligence,[object Object],Leo Reynolds,[object Object]
#7 Guide Cloud in Safely,[object Object],Auraelius,[object Object]
#8 Deliver “On-Ramp” Cloud Services,[object Object],Podknox,[object Object]
#9 Leverage Cloud and On-Prem: Hybrid,[object Object],Hammer51012,[object Object]
#10 Focus on Business Transformation,[object Object],Esthr,[object Object]
Not HOW IT,[object Object],davestfu,[object Object]
But WHY IT?,[object Object],nccarf_au,[object Object]
Just because Customers could DIY...,[object Object],el clinto,[object Object]
Doesn’t mean they will,[object Object],ktpupp,[object Object]
How can you dip your toes in?,[object Object],kate e. did,[object Object]
Cloud and Perpetual mixing- Not Good,[object Object],oschene,[object Object]
Set up Cloud Business Unit,[object Object],orangeacid,[object Object]
And Let Keen Jump In!,[object Object],JKönig,[object Object]
Run Perpetual like a Cash Cow?,[object Object],Gary Denness,[object Object]
Leave Cautious Customers,[object Object],marimoon,[object Object]
Fence off Perpetual Revenue,[object Object],code poet,[object Object]
Nurture Subscription Revenue,[object Object],Pink Sherbet Photography,[object Object]
Before Perpetual is Critical...,[object Object],bowbrick,[object Object]
The Economics of Cloud are hard,[object Object],gxdoyle,[object Object]
You’ve got a head start,[object Object],Team Traveller,[object Object]
But moving too fast could end in Disaster,[object Object], jeffc5000,[object Object]
Subscription Businesses worth 2-3x Services,[object Object],jo'nas,[object Object]
Trust but verify,[object Object]
“You have to dive in,[object Object],     to learn the lessons”,[object Object],Mark Brewer, CIO,[object Object]
© gapingvoid,[object Object]
Cloud Transforms IT guy,[object Object],redteam,[object Object]
Into a business enabler,[object Object],shindohd,[object Object]
Thanks to:,[object Object]
Any Questions?,[object Object],Justin Pirie,[object Object],@justinpirie,[object Object],blog.mimecast.com,[object Object],jpirie@mimecast.com,[object Object],IAMCP - London,[object Object],December 14th 2010,[object Object],matthewbradley,[object Object]

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Cloud: Space for the Channel?

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Editor's Notes

  1. Intro Myself and where I workAnswer the key question- is my data safeWhat are the hurdles we have to cross? What are the actionable things we can do?Why should you consider going to the cloud?
  2. Security
  3. Continutity
  4. Archive
  5. Bringing all the benefits of Google apps- horizontal scalability, reliability, etc
  6. To Microsoft Exchange
  7. Intro Myself and where I workAnswer the key question- is my data safeWhat are the hurdles we have to cross? What are the actionable things we can do?Why should you consider going to the cloud?
  8. 2010 Gartner Hype Cycle for emerging technologies
  9. 2010 Gartner Hype Cycle for emerging technologies
  10. How did I get here to be presenting in front of you about building the case for cloud?
  11. To my understanding of the cloud and the benefits it brings
  12. Not by first great western
  13. Or my brompton
  14. It was many years crawling under desks
  15. And fixing issues running a medium sized value added reseller. A VAR
  16. In the beginning...
  17. At a time of reinvention- it is really important to ask what IT is for?
  18. What do we do for the business?Or more specifically- what is the production function of IT???http://blogs.gartner.com/mark_mcdonald/2010/06/27/what-is-the-production-function-of-it/What is the Production Function of IT?by Mark McDonald  |  June 27, 2010  |  1 CommentUnderstanding IT’s role in the enterprise is complex and incomplete.  IT is the subject of great debate as some see it as the source of competitive advantage and others see it as an enabling function.  CIOs and IT professionals themselves have a tough time answering the question about IT’s role.Why?  because I believe we are asking the question in the wrong way.We need to ask,“What is the production function of IT?”Production function, sounds kind of academic right, but its simply the output you get for all the combination of inputs.   Its what you take and what you make.Every part of your enterprise has a production function.  So, when you ask different parts of the enterprise what they take and make you get answers like:SALESTOP LINE REVENUE: We take prospects and turn them into ordersSUPPLY CHAINPROFIT: We take orders and turn them into invoicesFINANCECASH: We take invoices and turn them into cashIT?????? Silence  ??????I know its silence because I have asked the question to dozens of IT leadership teams.  They look at each other and cannot put IT’s contribution in a simple answer.  It is not because IT is more complex than these other functions.  No its more that IT professionals have thought of themselves as something apart for the enterprise, something special and therefore not falling under the same rules.There are two production functions for IT that can be summarized in two words SPEED and SCALE.SPEED:  We take strategy plans and turn them into operational performanceIT’s production function is to deliver speed of execution against the company’s strategy and plans.  Strategy execution involves change and change requires IT participation.  The faster IT is able to execute its processes, deliver results and accelerate strategy execution the better.IT drives speed when it concentrates on reducing its own internal cycle times for providing IT services, solution development and governance.  Concentrating internal operations on speed of execution makes IT more responsive and innovative.  IT organizations operating at speed give their business a steady stream of value that actually expands ITs role and enterprise flexibility.Without speed, IT is a bottleneck to strategic execution and operational performance.  It is the reason we cannot go faster.  This is the reason why change is expensive.  The reason why I have to control IT costs, because if they cannot go fast enough for me, then I had better make sure that they do not cost too much.SCALE:  We take operations and increase their capacity and reduce their average costIT’s other production function is to create scale of operation across the enterprise.  Scale in this sense is the ability to IT to aggregate activities and deliver greater capacity at a lower average cost.  IT creates scale through its infrastructure and operations activities that make the modern enterprise possible.  IT is one of two scale functions in the enterprise.  The supply chain is the other scale function.IT drives scale through the infrastructure by constantly aggregating operations, virtualization and active contract management to gain the benefits of being bigger.  Without this scale, growing transaction volumes and the cost of operating disparate infrastructures would literally consume the company’s profit.Without scale, operations drown in a combination of complexity, duplicate cost and faltering service levels.  You see this with high growth companies that are heroes that suddenly fail – because they do not have scale.***What is IT’s production function?  To deliver speed and scale to the enterprise.Speed and scale can seem as two different things, and that can be part of the reason why they are difficult for CIOs and IT leaders to articulate.  Most go “ah ha” when they think about their role in speed and scale.But, when you boil it down, we know why an enterprise has a sales function, a supply chain, a finance function, etc.  We had thought that IT existed to manage the technologies that these functions depend on.That is true in terms of the activities IT provides, but ‘to what end’Speed of execution andScale of operation.
  19. But it’s a question I didn’t ask myself seriously enough until recently- sounds academic though doesn’t it?
  20. It is a bit- but hopefully it’ll help you understand what we’re here for, just like it helped me. What does production function mean?
  21. It’s the combination of all the inputs
  22. Which create the outputs.
  23. The problem is, that in IT, they’re hidden. Hard to find.Let me contextualise it for you- What do Sales do?
  24. They turn prospects into orders. What does the supply chain do?
  25. They turn orders into invoices.What does finance do?
  26. The turn invoices into cash.So what does IT do?
  27. What do we do for the business?Or more specifically- what is the production function of IT???http://blogs.gartner.com/mark_mcdonald/2010/06/27/what-is-the-production-function-of-it/What is the Production Function of IT?by Mark McDonald  |  June 27, 2010  |  1 CommentUnderstanding IT’s role in the enterprise is complex and incomplete.  IT is the subject of great debate as some see it as the source of competitive advantage and others see it as an enabling function.  CIOs and IT professionals themselves have a tough time answering the question about IT’s role.Why?  because I believe we are asking the question in the wrong way.We need to ask,“What is the production function of IT?”Production function, sounds kind of academic right, but its simply the output you get for all the combination of inputs.   Its what you take and what you make.Every part of your enterprise has a production function.  So, when you ask different parts of the enterprise what they take and make you get answers like:SALESTOP LINE REVENUE: We take prospects and turn them into ordersSUPPLY CHAINPROFIT: We take orders and turn them into invoicesFINANCECASH: We take invoices and turn them into cashIT?????? Silence  ??????I know its silence because I have asked the question to dozens of IT leadership teams.  They look at each other and cannot put IT’s contribution in a simple answer.  It is not because IT is more complex than these other functions.  No its more that IT professionals have thought of themselves as something apart for the enterprise, something special and therefore not falling under the same rules.There are two production functions for IT that can be summarized in two words SPEED and SCALE.SPEED:  We take strategy plans and turn them into operational performanceIT’s production function is to deliver speed of execution against the company’s strategy and plans.  Strategy execution involves change and change requires IT participation.  The faster IT is able to execute its processes, deliver results and accelerate strategy execution the better.IT drives speed when it concentrates on reducing its own internal cycle times for providing IT services, solution development and governance.  Concentrating internal operations on speed of execution makes IT more responsive and innovative.  IT organizations operating at speed give their business a steady stream of value that actually expands ITs role and enterprise flexibility.Without speed, IT is a bottleneck to strategic execution and operational performance.  It is the reason we cannot go faster.  This is the reason why change is expensive.  The reason why I have to control IT costs, because if they cannot go fast enough for me, then I had better make sure that they do not cost too much.SCALE:  We take operations and increase their capacity and reduce their average costIT’s other production function is to create scale of operation across the enterprise.  Scale in this sense is the ability to IT to aggregate activities and deliver greater capacity at a lower average cost.  IT creates scale through its infrastructure and operations activities that make the modern enterprise possible.  IT is one of two scale functions in the enterprise.  The supply chain is the other scale function.IT drives scale through the infrastructure by constantly aggregating operations, virtualization and active contract management to gain the benefits of being bigger.  Without this scale, growing transaction volumes and the cost of operating disparate infrastructures would literally consume the company’s profit.Without scale, operations drown in a combination of complexity, duplicate cost and faltering service levels.  You see this with high growth companies that are heroes that suddenly fail – because they do not have scale.***What is IT’s production function?  To deliver speed and scale to the enterprise.Speed and scale can seem as two different things, and that can be part of the reason why they are difficult for CIOs and IT leaders to articulate.  Most go “ah ha” when they think about their role in speed and scale.But, when you boil it down, we know why an enterprise has a sales function, a supply chain, a finance function, etc.  We had thought that IT existed to manage the technologies that these functions depend on.That is true in terms of the activities IT provides, but ‘to what end’Speed of execution andScale of operation.
  28. IT’s production value number 1 is Speed.
  29. Turning organisational strategy into execution
  30. As Fast as possible- to deliver results to the business
  31. And to do that IT has to be as responsive as possible
  32. Because without speed IT is a bottleneck to operational performance.
  33. Take operations
  34. increase their capacity and reduce their average cost to again deliver operational performance.
  35. IT should equal agility. Yet when we’re purchasing systems, rarely does agility factor heavily enough.
  36. Traditional IT departmentIn the past, the only way for a company to maintain control of their business process was to completely own the technology supporting the process.  The rationale was that a company's most strategic, differentiating processes are unique and therefore have to built by the company either from scratch or by heavily customizing packaged applications.  This also meant owning the entire technology stack supporting the process and the application.  So, while the intent was to create differentiated processes that were agile and differentiating, the reality has become that the technology stack is an albatross around the IT team's neck that prevents them from moving as quickly and as efficiently as they would like to.The result is that while IT organizations are keen to support the business, they are unable to go much beyond providing basic services.  The solution to the problem of managing the entire stack was traditionally either hosted/managed server services or outsourcing, but each introduces its own problems.http://blog.appirio.com/2009/05/do-your-most-strategic-apps-belong-in.html
  37. OutsourcingIn the case of outsourcing, the enterprise gains cost savings but relinquishes control of their business process and has to adhere to the provider's "best-practice" process.  This clearly means that outsourcing can only be applied to commodity processes rather than any differentiating processes or processes where innovation is needed.  The IT team's role shifts to primarily vendor management with little ability to innovate or drive the business.
  38. Hosted/Managed ServersHosting gets a bit closer to solving the problem because it reduces some of the IT team's pain in terms of managing infrastructure.  However, the IT team still needs to spend a lot of their time maintaining the application and the middleware stack, i.e., applying patches and bug fixes, implementing upgrades, maintaining integrations, etc.  In addition, the team also needs to manage their relationship with the hosting vendor.  So, again, the main impact is some cost savings but no real gains in terms of agility or ability to innovate or support the business.
  39. IT department in the cloudCloud computing changes the decision process completely.  No longer do companies face a choice between relinquishing all control of their business process for cost savings or dealing with the high costs and complexity of supporting an entire software stack.Platforms like Force.com and Google App Engine give companies a way to control the parts of the stack that matter most, the application and business process layer and abstract away the management of the infrastructure.  This means that the IT team can focus their energies on driving innovation and supporting the business.
  40. #1 Not having to worry about scaling- the provider does
  41. . #3 The provider is constantly updating its software,
  42. But the provider has to focus on game driven design- to make sure the customer acquisition costs remain OK and you users can adopt quickly
  43. #4 Creating Loosely coupled systems enables greater integration for less cost and dependency
  44. . #2 By separating configuration and code, it enables IT to rapidly reconfigure operations
  45. Less dependencies
  46. Means you can Reconfigure faster
  47. Aligns cost to value- Which means time to value is much quicker
  48. Creates Agile, Business Aligned Systems
  49. Green?
  50. What does this mean for the channel?
  51. Cloud Represents a Perfect Storm for Channel partners
  52. A shift from Capex
  53. To Opex
  54. A shift in focus
  55. Away from a technology focus
  56. Towards a business focus
  57. So why is the cloud so scary for the channel?
  58. The cloud offers a lot of what the Channel used to.
  59. Disrupts the financial model
  60. And the skills
  61. Why should you go to Cloud? The momentum is with Cloud.
  62. So I think the Channel needs to embrace the Cloud
  63. So what to do now?
  64. The most important thing is to retain the status of the trusted advisor
  65. Which means you need to be educating the customers, not them educating you
  66. Cloud is an Evolution and a Revolution
  67. But you need to start taking part
  68. Which means reselling Cloud Services, Changing your mix of services
  69. Construct your portfolio
  70. Eat your own dog food
  71. Selling Support
  72. And Services around cloud offerings
  73. Cross sell other Cloud Services- don’t lose budget
  74. Provide Due-Diligence to choose the right solutions
  75. Bring Cloud to the Customer’s network safely and smoothly
  76. Deliver On-ramp services, that enable customers to get to the cloud
  77. That Leverage Cloud and On Prem – “Hybrid” I hate that term!
  78. More focus on Business Consulting
  79. – not “how IT”
  80. but “Why IT”
  81. Just because Customers could do it themselves
  82. Doesn’t mean they will. It is not the end of the channel. It’s just going to be differentMost people haven’t got the time or inclination to do it themselves. No one would have cleaners or builders if they did it themselves.
  83. How can you dip your toe in the water?
  84. Cloud and Perpetual don’t mix well at all- like oil and water
  85. Set up a new business unit focused on Cloud
  86. Enable customers who want to move to the cloud to do so
  87. Run your perpetual business like a cash cow
  88. Leave the customers that are happy with the old model in there (Cloud isn’t secure)
  89. Without cannibalising your existing business
  90. Develop a subscription revenue stream.
  91. So when the perpetual business does die- you can fold it into the subscription business
  92. The economics of Cloud are hard. The best providers typically spend 1 years revenue to acquire a customer
  93. You’ve got a head start
  94. But trying too quickly to Cloud will lead to disaster- so Watch out
  95. Oh and subscription businesses are worth 2-3x a services business.
  96. Green?
  97. Intro Myself and where I workAnswer the key question- is my data safeWhat are the hurdles we have to cross? What are the actionable things we can do?Why should you consider going to the cloud?