The Cloud and The Channel: How ISVs and VARs Can Transform Their Existing Channel
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As core applications continue to evolve into cloud solutions, so too must the supporting applications from Independent Software Vendors (ISVs) and services from partners that power customers niche and industry requirements. This transformation goes way beyond connectors and technical development, to strategy and sales models that help maximize the opportunity for these partners. View this presentation to learn the technical and strategic objectives that a cloud provider can meet to help extend your offerings in the channel.
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The Cloud and The Channel: How ISVs and VARs Can Transform Their Existing Channel
- 1. The Cloud and The Dynamics Channel How ISV’s and Partners Can Transform Their Existing Channel
- 2. Today’s Speaker Rob Curls • Information Technology Architect • Over 15 years experience • Specialties include Microsoft Dynamics, Modern DataCenter, Windows Azure, Microsoft Exchange Server, Active Directory, Hyper-V, and High Availability Solutions with Microsoft Clustering Services
- 3. • The Case for Cloud • The Compliant Cloud • The Hybrid Cloud • Q&A
- 4. The Case for Cloud in the Channel
- 5. The Industry is Going Cloud
- 6. Cloud Based Offerings Subscription Gross Margins Source: Pacific Crest 2014 Saas Survey 30% 28% 32% 32% 38% 39% 54% 43% 50%+ Cloud Revenue 20% to <50% Cloud 10% to <20% Cloud <10% Cloud Returning Revenue % New Customers % What Was Your Recurring Revenue % And Your New Customer %? Source: IDC 2014, n=690 partners
- 7. Year 1 2 3 4 Subscription Revenue $324,765 $3,025,836 $8,419,009 $17,043,231 Consulting Revenue $102,000 $416,400 $776,660 $1,241,650 Software & Hosting Costs -$53,550 -$576,045 -$1,522,860 -$2,895,525 Consulting Costs -$76,500 -$311,103 -$568,717 -$887,528 Sales & Marketing Costs -$1,588,167 -$1,581,808 -$2,625,240 -$3,511,376 Incremental R&D Costs -$300,000 -$200,000 -$150,000 -$150,000 net cash flow -$1,591,452 $773,280 $4,328,851 $10,840,451 Profitability – Cloud Solutions Cloud’s Impact on the P&L
- 8. Profitability – Cloud Solutions
- 9. How Does Your Solution Stack Up
- 10. Your Cloud Service Provider and You Brings you Opportunities Extends your VAR Channel Technical Sounding board Extends your Competencies
- 11. What your CSP do for you • Enhance your VAR network • Supplement your VAR’s abilities
- 12. What your CSP do for you • Provide Technical Expertise • Augment your teams abilities
- 13. What your CSP do for you • Provide Additional Revenue Streams
- 15. Cloud Success Story Company Profile: • Florida based health and human services technology company working with more than 500 agencies in 42 states • Provides innovative solutions that connect, collaborate and coordinate care and services across their Health and Human Services, Education, Justice & Public Safety, Community Service Providers consumers Cloud Successes: • Addressed strong compliance needs around HIPAA and justice center data • Able to build complex environments with integrations across multiple public agencies • Utilized customized tiered pricing structure allowing company to be much more competitive in their marketplace while still offering the highest quality solutions • Concerto’s largest gross producer due to large complex deals
- 16. Not All Clouds Are Equal • ISC2 and CSA have partnered to offer a new Cloud Security Certification – SecurityWeek: ISC and CSA Partner for Certification offering • Amazon S3 Poor Configuration Puts Sensitive Data at Risk – SecurityWeek: Amazon Puts S3 Data At Risk • Web Application Attack Challenge Cloud and On- Premise Infrastructures – SecurityWeek: Web Application Attacks Increase • Trust in the Cloud? – SecurityWeek: Lieberman: IT Doesn't Trust the Cloud
- 17. What’s So Troubling About Cloud Security?
- 18. How Cloud Providers Can Address Concerns • Transparency/Control Over Datacenter/Data Locality/Security Audibility • Verifiable End-to-end Encryption – Data in Transit • Industry/Government Regulation Compliance • Proven Tools and Control with Restricted Access • Control Over Security/Encryption • Dedicated Resources/Data Isolation • Provide Proven References • Industry Standards for Data Privacy and Security • Explicit Contractual Responsibilities for Service Levels/Security • Provider Certification Standards • Region/Country Specific Datacenter Locations
- 20. Hybrid Solutions
- 21. Taking Stock Have you cautiously tested the cloud market? Considered offering one solution with a hosted option? Watched and waited to see where the market is going? Tentatively pieced together a SaaS solution?
- 22. Differentiate Image Source: 451 Research
- 23. FOR MORE INFORMATION: (844) 760-1842 www.concertocloud.com info@concertocloud.com
Editor's Notes
- Over 200K business world wide use Dynamics 18% are already using cloud 52% of the market is either cloud or looking to go cloud Skate where the puck is going to be Products aren’t ready for newer versions, this is hindering the deployment of the apps and
- The financial benefits alone are enough to compel many providers to make the switch to a cloud based offering. What do your current margins look like? How do they compare? What percentage of your revenue is projectable? Are you earning as much or more from your new customers as your existing customer base?
- So what does moving to a MRR model really mean to your bottom line?
- Success in the cloud – What cloud enablement looks like: Adobe as an example – they decided six years to sell only in cloud. Their revenue went down and then drove up like crazy. It was a very smart move.
- Many solutions out there that are still legacy applications ISV has no Cloud solution App doesn’t work with the new version / rappid deployment cycle How can you get cloud ready?
- Find a few good CSP to partner with, leverage their relationships with VARS to have a go to, market ready solution
- Your CSP is your partner Not all VAR’s have a good cloud story, by having a solid relationship with a CSP your solution may outlive the VAR’s relationship with the customer. Your CSP may be working with VARs you’re not By marketing to your VARs that you’re certified to run on a platform like concerto breads confidence, it can also show your partners that you’re ready to go in the cloud
- Your CSP can help to cloud enable your existing solution, either in conjunction with Dynamics or possibly as a stand along solution Technical abilities beyond your own teams Knowledge of industry verticals
- Show me the money. Jerry McGuire Wither its from enabling a cloud solution that you go to market with, or mealy offering some referral incentives your CSP can help you grow revenue
- You may have a cloud solution, There may be items that a CSP can still help you with. Having a Private option Industry certifgied environments like PCI, ITAR, HIPAA
- Finally, your CSP can help take you into the future. Customers will be deploying hybrid solutions that leverage public cloud services, private cloud, and on premise systems. Your CSP has the ability to establish the connectivity build these hybrid solutions. Leverage their investments so you can focus on your core competencies of the industry solutions that you specialize in.
- Assessing where you are today: Most companies have customers asking so they have some type of basic or rudimentary model. Ask the hard questions: What is working? What are our next steps? Are we all in for cloud? Are we prepared to be all in for cloud? "A significant chunk of the channel is cautiously dipping into cloud computing": The channel is now all in on the cloud, with 93% of firms characterizing their cloud solutions as mature or somewhat mature.
- Customer requirements should drive your differentiators! Call out price being far down the list in differentiators