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How CSP Can Build a New 30%-profit
Revenue Stream on Cloud Computing?
Marina Ionova
Partner Manager:
marina.ionova@itglobal.com
1. Why we are here?
• Telecom Services market current situation, opportunities and challenges
• IaaS Market growth: how 5G, IoT, and digital transformation drive IaaS business
2. Finding the new revenue stream: 3 ways to start IaaS business
• Hyperscalers resale: sale commissions and prerequisites
• In-house Cloud DataCenter: estimated CAPEX for start and ROI
• ITGLOBAL.COM White-label Partner Program: base conditions and profitability
3. Live Demonstration
4. Q&A and gift for attendees
Agenda
1
5
Data Centers in 5 countries
on 4 continents
200+
Employees around the
world
Since 2008
VMware Service Provider
20+
Partners
12+
Years’ experience in
virtualization
1000+
Corporate clients
ITGLOBAL.COM in Numbers
2
Why we are Here?
Current Market Situation
• Traditional telco services do not generate
as much profit as they did a few years ago
• Value Added Services generate a thin
revenue stream and are often difficult to
implement and sell
• CSPs are searching for new non-telco
revenue streams
• The Enterprise segment evolution is driven
by digital transformation, mobility, high-
tech solutions and cloud technologies
Challenges:
3
Brazilian Cloud Computing Market
290
338 330
463
626
774
0
100
200
300
400
500
600
700
800
900
2019 2020 2021 2022 2023 2024
Millions of U.S. Dollars
Forecast: Cloud System Infrastructure Services
(IaaS) End-User Spending (Gartner)
x2,3 growth
IaaS spending to increase more than twofold
in Brazil by the 2024
This presents both an opportunity and a
challenge for telecoms operators that are
seeking to capture a share of this growing
market and its associated connectivity
revenue.
A big driver
for cloud compute:
5G and IoT
4
Telcos and ISPs are extremely well positioned to play a significant role in
delivering cloud services to their customers
Advantages of local CSP:
• Strong existing customer relationships
• Good understanding of customer requirements
• Connectivity infrastructure
• Strong IT skillset combined with extensive sales
capabilities
Opportunities:
• Open new business opportunity as a
IaaS provider
• Discover new solid revenue stream
• Increase ARPU for B2B customers
Why You are in the Best Position?
5
3 Ways to Start IaaS Business
Global IaaS hyperscaler
partnership (AWS, Azure, etc.):
• Low profitability (5-10%)
• No CSP branding
• Certification
In-house cloud datacenter launch:
• Costly for initial deployments
• CAPEX: $200 - $600K (per location)
• High OPEX: min $5000 month (per location)
• Long ROI
ITGLOBAL White Label Program:
• High profitability (>30%)
• Short TTM (<1 month)
• Low OPEX (Website, Marketing campaign)
6
There are challenges and complexities for CSPs offering infrastructure-
as-a-service though and it is not as simple as it seems at first sight.
3 Ways to Start IaaS Business
Global IaaS hyperscaler
partnership (AWS, Azure, etc.):
• Low profitability (5-10%)
• No CSP branding
• Certification
In-house cloud datacenter launch:
• Costly for initial deployments
• CAPEX: $200 - $600K (per location)
• High OPEX: min $5000 month (per location)
• Long ROI
ITGLOBAL White Label Program:
• High profitability (>30%)
• Short TTM (<1 month)
• Low OPEX (Website, Marketing campaign)
6
There are challenges and complexities for CSPs offering infrastructure-
as-a-service though and it is not as simple as it seems at first sight.
3 Ways to Start IaaS Business
Global IaaS hyperscaler
partnership (AWS, Azure, etc.):
• Low profitability (5-10%)
• No CSP branding
• Certification
In-house cloud datacenter launch:
• Costly for initial deployments
• CAPEX: $200 - $600K (per location)
• High OPEX: min $5000 month (per location)
• Long ROI
ITGLOBAL White Label Program:
• High profitability (>30%)
• Short TTM (<1 month)
• Low OPEX (Website, Marketing campaign)
6
There are challenges and complexities for CSPs offering infrastructure-
as-a-service though and it is not as simple as it seems at first sight.
3 Ways to Start IaaS Business
Global IaaS hyperscaler
partnership (AWS, Azure, etc.):
• Low profitability (5-10%)
• No CSP branding
• Certification
In-house cloud datacenter launch:
• Costly for initial deployments
• CAPEX: $200 - $600K (per location)
• High OPEX: min $5000 month (per location)
• Long ROI
ITGLOBAL White Label Program:
• High profitability (>30%)
• Short TTM (<1 month)
• Low OPEX (Website, Marketing campaign)
6
There are challenges and complexities for CSPs offering infrastructure-
as-a-service though and it is not as simple as it seems at first sight.
Structure of partnership
8
PRODUCT and LOCATIONS:
WEBSITE, MARKETING
NL US MY RU …
Partner
ITGLOBAL.COM
7
Revenue sharing model (30% profitability for Partner)
What makes us different?
AWS 3276
Vultr 2850
Linode 2516
DigitalOcean 2260
Serverspace
3772
Functionality for Customers
1. Compute (Cloud servers)
2. Networks (private networks, direct connect, DNS, SSL)
3. Storage (block storage, object storage)
4. Managed services (Monitoring,
5. Developer tools (API, CLI)
6. 24/7 Support
Coming soon:
1. Kubernetes as a service
2. 1-click apps for cloud servers
9
Functionality for Partners
Partner gets:
• Quick start
• Supported payment models: prepayment, post-payment
• Payments in local currency (payment gateways, billing, etc.)
• Billing every 10 minutes
• Partner API + documentation for Partner and Client
• Integration with marketing platforms (GetResponce, Google analytics)
• Ticket support system
• Regular automatic platform updates
• New Data Centers & New Services
8
• ITGLOBAL.COM provides:
• Infrastructure (Computing resources)
• 24/7 Support
• Development
• Branding
• Landing?
Let’s go to
Serverspace.io
Live Demo
11
Shared revenue
12
Zones of responsibility
and revenue
Platform Hardware Marketing
30% revenue for Partner ITGLOBAL.COM ITGLOBAL.COM Partner
60% revenue for Partner ITGLOBAL.COM Partner Partner
Success Stories
9
Partner Sales Growth Rate
ER-Telecom Vega
ER-Telecom
• $15000 sales turnover increase per month
• Loyalty increase
• B2B subscribers base growth
• New service offer
Vega
• $15 000 turnover growth per month in less than 6 months
• 30% profitability
• Loyalty increase
• B2B subscribers base growth
• New service offer
Next Steps:
our gift for attendees
500€ credit on your Serverspace.io account
Contact your Partner Manager:
marina.ionova@itglobal.com
15

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Cloud Program for resellers, ISP, integrators

  • 1. and start making money in 2 weeks How CSP Can Build a New 30%-profit Revenue Stream on Cloud Computing? Marina Ionova Partner Manager: marina.ionova@itglobal.com
  • 2. 1. Why we are here? • Telecom Services market current situation, opportunities and challenges • IaaS Market growth: how 5G, IoT, and digital transformation drive IaaS business 2. Finding the new revenue stream: 3 ways to start IaaS business • Hyperscalers resale: sale commissions and prerequisites • In-house Cloud DataCenter: estimated CAPEX for start and ROI • ITGLOBAL.COM White-label Partner Program: base conditions and profitability 3. Live Demonstration 4. Q&A and gift for attendees Agenda 1
  • 3. 5 Data Centers in 5 countries on 4 continents 200+ Employees around the world Since 2008 VMware Service Provider 20+ Partners 12+ Years’ experience in virtualization 1000+ Corporate clients ITGLOBAL.COM in Numbers 2
  • 4. Why we are Here? Current Market Situation • Traditional telco services do not generate as much profit as they did a few years ago • Value Added Services generate a thin revenue stream and are often difficult to implement and sell • CSPs are searching for new non-telco revenue streams • The Enterprise segment evolution is driven by digital transformation, mobility, high- tech solutions and cloud technologies Challenges: 3
  • 5. Brazilian Cloud Computing Market 290 338 330 463 626 774 0 100 200 300 400 500 600 700 800 900 2019 2020 2021 2022 2023 2024 Millions of U.S. Dollars Forecast: Cloud System Infrastructure Services (IaaS) End-User Spending (Gartner) x2,3 growth IaaS spending to increase more than twofold in Brazil by the 2024 This presents both an opportunity and a challenge for telecoms operators that are seeking to capture a share of this growing market and its associated connectivity revenue. A big driver for cloud compute: 5G and IoT 4
  • 6. Telcos and ISPs are extremely well positioned to play a significant role in delivering cloud services to their customers Advantages of local CSP: • Strong existing customer relationships • Good understanding of customer requirements • Connectivity infrastructure • Strong IT skillset combined with extensive sales capabilities Opportunities: • Open new business opportunity as a IaaS provider • Discover new solid revenue stream • Increase ARPU for B2B customers Why You are in the Best Position? 5
  • 7. 3 Ways to Start IaaS Business Global IaaS hyperscaler partnership (AWS, Azure, etc.): • Low profitability (5-10%) • No CSP branding • Certification In-house cloud datacenter launch: • Costly for initial deployments • CAPEX: $200 - $600K (per location) • High OPEX: min $5000 month (per location) • Long ROI ITGLOBAL White Label Program: • High profitability (>30%) • Short TTM (<1 month) • Low OPEX (Website, Marketing campaign) 6 There are challenges and complexities for CSPs offering infrastructure- as-a-service though and it is not as simple as it seems at first sight.
  • 8. 3 Ways to Start IaaS Business Global IaaS hyperscaler partnership (AWS, Azure, etc.): • Low profitability (5-10%) • No CSP branding • Certification In-house cloud datacenter launch: • Costly for initial deployments • CAPEX: $200 - $600K (per location) • High OPEX: min $5000 month (per location) • Long ROI ITGLOBAL White Label Program: • High profitability (>30%) • Short TTM (<1 month) • Low OPEX (Website, Marketing campaign) 6 There are challenges and complexities for CSPs offering infrastructure- as-a-service though and it is not as simple as it seems at first sight.
  • 9. 3 Ways to Start IaaS Business Global IaaS hyperscaler partnership (AWS, Azure, etc.): • Low profitability (5-10%) • No CSP branding • Certification In-house cloud datacenter launch: • Costly for initial deployments • CAPEX: $200 - $600K (per location) • High OPEX: min $5000 month (per location) • Long ROI ITGLOBAL White Label Program: • High profitability (>30%) • Short TTM (<1 month) • Low OPEX (Website, Marketing campaign) 6 There are challenges and complexities for CSPs offering infrastructure- as-a-service though and it is not as simple as it seems at first sight.
  • 10. 3 Ways to Start IaaS Business Global IaaS hyperscaler partnership (AWS, Azure, etc.): • Low profitability (5-10%) • No CSP branding • Certification In-house cloud datacenter launch: • Costly for initial deployments • CAPEX: $200 - $600K (per location) • High OPEX: min $5000 month (per location) • Long ROI ITGLOBAL White Label Program: • High profitability (>30%) • Short TTM (<1 month) • Low OPEX (Website, Marketing campaign) 6 There are challenges and complexities for CSPs offering infrastructure- as-a-service though and it is not as simple as it seems at first sight.
  • 11. Structure of partnership 8 PRODUCT and LOCATIONS: WEBSITE, MARKETING NL US MY RU … Partner ITGLOBAL.COM 7 Revenue sharing model (30% profitability for Partner)
  • 12. What makes us different? AWS 3276 Vultr 2850 Linode 2516 DigitalOcean 2260 Serverspace 3772
  • 13. Functionality for Customers 1. Compute (Cloud servers) 2. Networks (private networks, direct connect, DNS, SSL) 3. Storage (block storage, object storage) 4. Managed services (Monitoring, 5. Developer tools (API, CLI) 6. 24/7 Support Coming soon: 1. Kubernetes as a service 2. 1-click apps for cloud servers 9
  • 14. Functionality for Partners Partner gets: • Quick start • Supported payment models: prepayment, post-payment • Payments in local currency (payment gateways, billing, etc.) • Billing every 10 minutes • Partner API + documentation for Partner and Client • Integration with marketing platforms (GetResponce, Google analytics) • Ticket support system • Regular automatic platform updates • New Data Centers & New Services 8 • ITGLOBAL.COM provides: • Infrastructure (Computing resources) • 24/7 Support • Development • Branding • Landing?
  • 16. Shared revenue 12 Zones of responsibility and revenue Platform Hardware Marketing 30% revenue for Partner ITGLOBAL.COM ITGLOBAL.COM Partner 60% revenue for Partner ITGLOBAL.COM Partner Partner
  • 17. Success Stories 9 Partner Sales Growth Rate ER-Telecom Vega ER-Telecom • $15000 sales turnover increase per month • Loyalty increase • B2B subscribers base growth • New service offer Vega • $15 000 turnover growth per month in less than 6 months • 30% profitability • Loyalty increase • B2B subscribers base growth • New service offer
  • 18. Next Steps: our gift for attendees 500€ credit on your Serverspace.io account Contact your Partner Manager: marina.ionova@itglobal.com 15