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Cloud and the Channel- A Perfect Storm?

Editor's Notes

  • #2 The Secrets of Successful Cloud Adoption: what they don’t tell you Cloud has a seemingly unstoppable momentum behind it- but is it clear at the outset what the benefits of Cloud are beyond the shift from cap-ex to op-ex? What exactly are these benefits and how do we access them to adopt Cloud successfully?
  • #8 Security
  • #9 Continutity
  • #10 Archive
  • #18 I love being thrown in the lions den- being a SaaS specialist- I sit at the top of the food chain… So I’m probably quite delicious fodder for you datacenter guys Need analogy
  • #19 There has been so much talk about Cloud over the past few days
  • #20 I don’t want to hear any more about cloud!
  • #21 The good news is that datacentres aren’t going away- it’s just getting a whole lot more interesting
  • #22 Over the next hour I want to dig beneath the hype to the real reasons for going cloud- from the business perspective and not the DC perspective…
  • #23 Because that’s what’s really driving cloud
  • #27 So- who’s using it?
  • #28 So- who’s using it?
  • #29 So- who’s using it?
  • #30 So- who’s using it?
  • #37 You’ve got to understand the cloudonomics
  • #38 Because that defines when you should use Private Cloud- assuming no security risk
  • #39 And when to use hybrid cloud
  • #47 From the Mimecast Cloud Adoption Survey http://www.mimecast.com/events-press/press-releases/article/view/cloud-computing-delivering-on-its-promise-but-doubts-still-hold-back-adoption/462/
  • #48 From the Mimecast Cloud Adoption Survey http://www.mimecast.com/events-press/press-releases/article/view/cloud-computing-delivering-on-its-promise-but-doubts-still-hold-back-adoption/462/
  • #49 From the Mimecast Cloud Adoption Survey http://www.mimecast.com/events-press/press-releases/article/view/cloud-computing-delivering-on-its-promise-but-doubts-still-hold-back-adoption/462/
  • #50 From the Mimecast Cloud Adoption Survey http://www.mimecast.com/events-press/press-releases/article/view/cloud-computing-delivering-on-its-promise-but-doubts-still-hold-back-adoption/462/
  • #51 2010 Gartner Hype Cycle for emerging technologies
  • #52 2010 Gartner Hype Cycle for emerging technologies
  • #53 What’s the problem?
  • #54 How did I get here to be presenting in front of you about building the case for cloud?
  • #55 Not by first great western
  • #56 Or my brompton
  • #57 It was many years crawling under desks
  • #58 And fixing issues running a medium sized value added reseller. A VAR
  • #60 Oh and subscription businesses are worth 2-3x a services business.
  • #61 Double edged sword
  • #62 Cloud Represents a Perfect Storm for Channel partners
  • #63 A shift from Capex
  • #64 To Opex
  • #65 A shift in focus
  • #66 And a shift from a technology focus
  • #67 To a business focus
  • #68 So why is the cloud so scary for the channel?
  • #69 The cloud offers a lot of what the Channel used to.
  • #70 Disrupts the financial model
  • #71 And the skills
  • #73 Although cloud adoption has been growing rapidly, it is still unclear where and how the channel can and will add value. Because of this, channel companies have been hesitant to invest, leaving end users with limited access to help when they need it.
  • #74 I don’t want to hear any more about cloud!
  • #75 2010 Gartner Hype Cycle for emerging technologies
  • #77 The challenges facing enterprises building private cloud services or leveraging public cloud services are significantly more complicated than just the technology. Fundamental change is needed in culture, business models, IT architecture, service management and politics — all opportunity areas for the channel to provide business consulting, but very different from the channel's traditional role.
  • #78 Greenfield sites
  • #79 Business processes
  • #88 Hybrid architectures
  • #89 Mean professional services
  • #90 Carrot and stick
  • #91 Any company that relies on the product transaction (hardware or software) to drive attached services revenue supported by ongoing maintenance contracts will have to rethink how and what it offers its customers today and in two or three years.
  • #92 If traditional channel partners don't react quickly enough to the changes in the market, they will be replaced by other channel partners in their accounts.
  • #94 More and more IT providers are attempting to go directly to end-user customers with their cloud solutions only to find out that customers need more than they are willing to provide. This will mean increasing channel capacity to meet demand.
  • #95 The two biggest challenges facing IT providers today are the lack of capabilities contained in their current partner ecosystem and the lack of new entrants with the skills required to further the adoption of various cloud services. Without these capabilities, the entire market will have slower adoption, regardless of the service.
  • #96 Cloud Pro Services in Europe today is $560 million in 2010
  • #97 European Enterprises Will Spend $8.2 Billion on Cloud Professional Services in 2015
  • #98 The new IT environments will have elements of traditional IT, private cloud, and public cloud, and management and integration will become a challenge for which European enterprises will typically choose to hire an external service provider, driving further growth in the cloud professional services market."
  • #99 IDC sees a clear trend that new outsourcing contracts include cloud services, and as much as 25% of cloud professional services will be delivered as part of outsourcing contracts. This has a major influence on the choice of provider for professional services as well as for cloud services: the provider needs to be able to manage both the traditional and the new environment under one contract and needs to be able to migrate larger parts to the new environment during the life of the contract.
  • #100 "Some believe that cloud is just plug and play, but that is not the case for the more complicated existing or new solutions. So professional services will not go away, but they will change and in the longer run beyond 2015 — when migration is complete — account for a much smaller proportion of IT costs.
  • #101 "Another important point is that service providers need to prepare for the rapidly growing request for cloud professional services and have the resources available. Right now, demand is mainly for business cases and roadmaps, requiring both business competence and architectural competence, but on a limited scale. But in a just slightly longer time frame, most if not all consultants need to understand cloud. Vendors have substantial investments ahead of them in creating the necessary capabilities to support this rapidly evolving market."
  • #102 So I think the Channel needs to embrace the Cloud
  • #103 Or face irrelevance….
  • #104 So what to do now?
  • #106 The most important thing is to retain the status of the trusted advisor
  • #107 Which means you need to be educating the customers, not them educating you
  • #108 Cloud is an Evolution and a Revolution
  • #109 Through 2015, cloud service brokerage (CSB) will represent the single largest revenue growth opportunity in cloud computing. The channel has an opportunity to play a significant role in aggregation and brokerage services, yet few have begun to invest in becoming a CSB.
  • #111 Eat your own dog food
  • #114 Selling Support
  • #115 And Services around cloud offerings
  • #116 Cross sell other Cloud Services- don’t lose budget
  • #117 Provide Due-Diligence to choose the right solutions
  • #118 Bring Cloud to the Customer’s network safely and smoothly
  • #119 Deliver On-ramp services, that enable customers to get to the cloud
  • #120 That Leverage Cloud and On Prem – “Hybrid” I hate that term!
  • #121 More focus on Business Consulting
  • #122 – not “how IT”
  • #123 but “Why IT”
  • #124 Just because Customers could do it themselves
  • #125 Doesn’t mean they will. It is not the end of the channel. It’s just going to be different Most people haven’t got the time or inclination to do it themselves. No one would have cleaners or builders if they did it themselves.
  • #126 How can you dip your toe in the water?
  • #127 Cloud and Perpetual don’t mix well at all- like oil and water
  • #128 Set up a new business unit focused on Cloud
  • #129 Enable customers who want to move to the cloud to do so
  • #130 Run your perpetual business like a cash cow
  • #131 Leave the customers that are happy with the old model in there (Cloud isn’t secure)
  • #132 Without cannibalising your existing business
  • #133 Develop a subscription revenue stream.
  • #134 So when the perpetual business does die- you can fold it into the subscription business
  • #135 The economics of Cloud are hard. The best providers typically spend 1 years revenue to acquire a customer
  • #136 You’ve got a head start
  • #137 But trying too quickly to Cloud will lead to disaster- so Watch out
  • #138 Oh and subscription businesses are worth 2-3x a services business.
  • #140 Green?
  • #145 The Secrets of Successful Cloud Adoption: what they don’t tell you Cloud has a seemingly unstoppable momentum behind it- but is it clear at the outset what the benefits of Cloud are beyond the shift from cap-ex to op-ex? What exactly are these benefits and how do we access them to adopt Cloud successfully?