The document discusses how managed service providers (MSPs) can build a profitable next generation AWS practice, including evolving from traditional to next generation services, opportunities in the growing cloud managed services market, building the business with investments in tools and enablement through the AWS Partner Network.

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David Lim
APAC – Head of Consulting & MSP Partners
Building a Profitable Next Generation
AWS MSP Practice

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Evolution of Managed Services
Next Gen MSP Opportunity
Building the Business
Next Gen Tooling
Partner Enablement
Key Takeaways
Agenda

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Evolution of Managed Services

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Traditional MSP Next Generation MSP
Run and operate focus Design, architect, automate
Hardware based solutions Cloud and software based solutions
Centralized operations Distributed operations and resources
Device based SLAs Solution/Application based SLAs
Complex, manual change management
DevOps, CI/CD
self-healing solutions, infrastructure as code
Static monitoring with fixed thresholds
Dynamic monitoring, anomaly detection,
machine learning
Security risk mitigation Security by design, continuous compliance
Outsourcing vendor Trusted advisor and partner
Evolution of Managed Services

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Evolution of Managed Services
“I need help migrating, running, and optimizing my AWS workloads.”

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Evolution of Managed Services
What our MSP Partners are saying
“We’re focusing on how we can provide next-generation managed
security services, leveraging new technologies such as artificial
intelligence.”
EVP, NA partner
“The strategy phase is where you educate and engage
the customer on what the realm of possibilities are.
You really help them think through their existing
infrastructure, tool sets, and processes, and determine
how much of that can be or should be leveraged in a
cloud environment. You determine those foundational
services that really need to be in place for these
organizations to be able to effectively migrate to the
cloud.”
EVP, NA partner
“The ideal scenario begins when we do an engagement
with the clients quite early on in their client journey,
helping them with their cloud strategy. Then we do the
migration work, and then, at the back end of that, the
customer will come into one of our different operating
models, and we’ll manage it for them going forward.”
Co-founder, EMEA partner
Forrester Consulting: The Business Case for Next-Generation AWS MSPs: A TEI Study for AWS APN Partners, 2017

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Next Gen MSP Opportunity

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Worldwide Public Cloud
Services Market
Global Cloud Managed
Services Market
Market Opportunity
$246.8B in 2017
$383.4B in 2020
15.8% CAGR
$27.2B in 2017
$53.8B project by 2022
14.6% CAGR
Full lifecycle services
Exponential opportunity
Gartner: Forecast Analysis: Public Cloud Services, WW,
2014-2020, 4Q16 Update
Market & Markets Research: Cloud Managed Services
Market, 2017

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MSP Partner Opportunity
57%: Managed Services gross margin
50%: Practice gross margin
35%: Practice operating margin
Forrester Consulting: The Business Case for Next-Generation AWS MSPs: A TEI Study for AWS APN Partners, 2017

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Speed to market
Increased agility
Improved service
to customers
Lower latency
Increased assurance
Faster and more reliable releases
No application refactoring
with initial migration
HA needs not met
Single points of failure
Application releases
deployed manually
Inflexible database
Rearchitecture of
application with focus
on automation
Infrastructure as code
Versioned changes
Consolidation and deployment
on demand
Full refactoring
AWS Elastic Beanstalk with
SQL backend
MSP Partner Opportunity
Case Study: API Talent & Radium
Challenge Solution Benefits

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Building the Business

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Building the Business
Join the APN Understand
benefits &
requirements
Training &
certification
Build a
business plan
Define &
differentiate
your offering
Marketing
opportunities

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Building the Business
Next gen MSP practice
Cloud Center of
Excellence
Consultancy as
a starting point
Full lifecycle
services
Emerging
pricing models
Sales
compensation
models
Continual
investments
Long lasting
customer
relationships

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Building the Business
Investments

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Next Generation Tooling

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Next Generation Tooling
Key categories
Monitoring Compliance DevOps
CI/CD
Billing & Cost
Optimization

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Scalability
&
Intelligent
Monitoring
Automated
Recovery
Application
Performance
Reduced
Investigation
Time
Monitoring

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Shared
Responsibility Model
Fill the Gap
Infrastructure as
Code
A Compliant Service
Catalog
Configuration Drift
Ensure change
meets compliance
requirements
Auto-Remediation
Correct or
Quarantine Non-
Compliant
Resources via AWS
Lambda
Compliance

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DevOps
Transformations
Enable your
customers to use the
cloud
Infrastructure is
Code
DevOps is not just
for your customers
Tooling
Build and maintain
tool chains for your
customers to use, so
they don’t have to
Training
Help customers
update their
processes and
integrate with your
tools
Continuous Integration/Deployment

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AWS Reseller
Benefits
Understand Cost
& Usage Reports
Manage Multi-
Tenant Billing
Select a 3rd Party
Tool
Billing and Cost Optimization

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APN Partner Enablement

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APN Partner Enablement
Building the Business
Join the APN Understand
benefits &
requirements
Training &
certification
Build a
business plan
Define &
differentiate
your offering
Marketing
opportunities

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Learn More: https://aws.amazon.com/partners/service-delivery/
Differentiation via service level
Help AWS Customers quickly locate partners
who deliver specific AWS services
Help APN Partners engage more closely with
AWS product and service teams
Service-specific benefits and enablement for partners

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Learn More: https://aws.amazon.com/partners/competencies/
Differentiation in specialized solution areas
Demonstrate established solution area expertise
Aligned with key verticals and key workloads
Partners eligible for additional funding and marketing benefits

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Learn More: https://aws.amazon.com/partners/managed-service/
Recognizes the evolution of managed services
in cloud environments
Raises the bar for next-gen AWS MSPs
Third-party audit to review partners’ capabilities
Emphasizes delivering quality customer solutions & experiences

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APN partner enablement
MSP Program Validation Checklist
Business health & management
Solution design
Infrastructure & application migration
Security managementBilling & cost management
Process & cost optimization
Customer obsession
Service desk & customer support DevOps & automation
SLAs & reporting

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APN Partner Enablement
What our MSP partners are saying
“Thank you [all] at AWS for helping us achieve this
transformation. It’s been a long time coming and I am
delighted we can now take our services to the next
level. I particularly appreciate AWS’ effort, rigor of the
process, and thoughtfulness behind the checklist. We
are a stronger provider for having gone through the
process.”
Sr. Director Cloud, NA Partner
“The two days of audit were extremely useful
and will help us in improving our systems and
process and be a more efficient and customer
centric organisation.”
Founder/Director, APAC Partner
“The AWS MSP audit program was instrumental in
positioning our business as a leader in next generation
managed cloud services on AWS, resulting in us being
recognised as a challenger in the Gartner Magic
Quadrant for Public Cloud Infrastructure Managed
Service Providers Worldwide. “
Exec. Dir. Cloud Practice, APAC Partner

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AWS MSP Partner Program

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Key Takeaways

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Key takeaways
Visit AWS MSP Program webpage
Download and read “The Business Case for Next-Gen AWS MSPs”
(Available on the APN Blog)
Download and review AWS MSP Program Validation Checklist
(Available on APN Partner Central)
Work with your AWS Partner Manager