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“The Public Cloud Is Leaving The Private Cloud In The Dust.”
Matt Asay June 03, 2014 Readwrite
Public Cloud : Add New Revenue & Profitability to Your Existing
Hosting Business
Craig Deveson
Founder & CEO
Cloud Manager Inc
BIG 4 – The Hyperscale Vendors
Who are they ?
What they have in Common
• Lots of cash
• Other Profitable businesses
• AWS, Microsoft & Google are matching
price cuts !
• Partner Eco systems
• Great for new for Customers !
Huge Data Center Spend
$27B Invested Last Year alone !
Cloud Revenue Breakdown
Customers looking for new
alternatives
The Public Cloud Challenge
Are your customers asking you about it ?
“If they’re not - they are either trialing it
themselves or asking some-one else”
What’s your answer going to be – we can
help you or try to sell against it !
Public Cloud can be Complex
Amazon Web Service’ Achilles Heel : Comple
xity GIGAOM – Bob Darrow July 7 2014
Example Customers AWS & Azure
Existing Service Providers
Service Provider Snapshot
• Existing Leases • Existing Technology
• Option to re-tool & re-skil
l
• Option to buy, build or partner
• Scale & Efficiencies • Existing Customer Base
Torrential Changes
Infrastructure Services
• Commoditazation is driving the
need for differentiation
• Value promotion and prevention
based services are critical
success factors
• The are challenges but significant
opportunities
Source : Gartner
Amazon Competitor or Opportunity
?
Opportunities
Problem
• Enterprises have planned to move to the cloud
• “There is a growing recognition that the public cloud will win !
“ It drives lower cost & more flexible"
• “Service providers to are looking for tools to help”
Migrating to the cloud is a headache.
Cloud Management Services
• Standing up Serv
ers
• Security
• Compliance • Scaling & Auto scali
ng
• Capacity Planning & Monitori
ng
• Backup / DR
• Cost Management • Analytics
Move to Managed Cloud Services
Servers Providers need to sell
wider !
Partner to Succeed
Cloud Service Broker
Changing Roles for SP’s
Opportunity or Threat
?
Cloud Pricing is Confusing
• AWS – On Demand – Reserved – Spot
• Azure – PAYG – 6 – 12 & Enterprise Plans
• Google – Sustained Use Discount & Sub Hr Billing
Great Consulting Opportunity
Cloud Tools
Products & Revenue Models
• Promote Your Value
• Prevent Their Pain
• Productize Your Portfolio
2nd Watch – 451 Take
2nd Watch is a good example of a new-style IT services player that is growing as part of the
AWS ecosystem.
Enterprise buyers are typically looking for a little more tender loving care than suits Amazon's
business model, so this is a growing service opportunity. However, it is a positive sign that
2nd Watch is coming to market with 'productized' work packages via its CM3 methodology,
which is better aligned to the cloud-consumption ethos than traditional contracts based on
time and materials.
Managed services run the services once they are implemented
Summary
Solving – The Cloud Complexity
Customers : Single Platform / Managed Service provider relationship
CSB’s : Manage Multiple Clouds to make it easier for customers
Cloud Vendors : Large Eco System to deliver value added services
Thank You
Craig Deveson
Founder &CEO
Cloud Manager Inc
craig@cloudmgr.com +61 438790035
craigdeveson @cloudmgr

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Public Cloud - Add New Revenue & Profitability to Your Existing Hosting Business

  • 1. “The Public Cloud Is Leaving The Private Cloud In The Dust.” Matt Asay June 03, 2014 Readwrite Public Cloud : Add New Revenue & Profitability to Your Existing Hosting Business Craig Deveson Founder & CEO Cloud Manager Inc
  • 2. BIG 4 – The Hyperscale Vendors
  • 4. What they have in Common • Lots of cash • Other Profitable businesses • AWS, Microsoft & Google are matching price cuts ! • Partner Eco systems • Great for new for Customers !
  • 5. Huge Data Center Spend $27B Invested Last Year alone !
  • 7. Customers looking for new alternatives
  • 8. The Public Cloud Challenge Are your customers asking you about it ? “If they’re not - they are either trialing it themselves or asking some-one else” What’s your answer going to be – we can help you or try to sell against it !
  • 9. Public Cloud can be Complex Amazon Web Service’ Achilles Heel : Comple xity GIGAOM – Bob Darrow July 7 2014
  • 12. Service Provider Snapshot • Existing Leases • Existing Technology • Option to re-tool & re-skil l • Option to buy, build or partner • Scale & Efficiencies • Existing Customer Base
  • 14. Infrastructure Services • Commoditazation is driving the need for differentiation • Value promotion and prevention based services are critical success factors • The are challenges but significant opportunities Source : Gartner
  • 15. Amazon Competitor or Opportunity ?
  • 17. Problem • Enterprises have planned to move to the cloud • “There is a growing recognition that the public cloud will win ! “ It drives lower cost & more flexible" • “Service providers to are looking for tools to help” Migrating to the cloud is a headache.
  • 18. Cloud Management Services • Standing up Serv ers • Security • Compliance • Scaling & Auto scali ng • Capacity Planning & Monitori ng • Backup / DR • Cost Management • Analytics
  • 19. Move to Managed Cloud Services
  • 20. Servers Providers need to sell wider !
  • 23. Changing Roles for SP’s Opportunity or Threat ?
  • 24. Cloud Pricing is Confusing • AWS – On Demand – Reserved – Spot • Azure – PAYG – 6 – 12 & Enterprise Plans • Google – Sustained Use Discount & Sub Hr Billing Great Consulting Opportunity
  • 26. Products & Revenue Models • Promote Your Value • Prevent Their Pain • Productize Your Portfolio
  • 27. 2nd Watch – 451 Take 2nd Watch is a good example of a new-style IT services player that is growing as part of the AWS ecosystem. Enterprise buyers are typically looking for a little more tender loving care than suits Amazon's business model, so this is a growing service opportunity. However, it is a positive sign that 2nd Watch is coming to market with 'productized' work packages via its CM3 methodology, which is better aligned to the cloud-consumption ethos than traditional contracts based on time and materials. Managed services run the services once they are implemented
  • 29. Solving – The Cloud Complexity Customers : Single Platform / Managed Service provider relationship CSB’s : Manage Multiple Clouds to make it easier for customers Cloud Vendors : Large Eco System to deliver value added services
  • 30. Thank You Craig Deveson Founder &CEO Cloud Manager Inc craig@cloudmgr.com +61 438790035 craigdeveson @cloudmgr

Editor's Notes

  1. Accoding to 451 Research Hyperscale operators drive data centre efficiency by exploiting economies of scale, pushing up utilization, quantifying productivity and innovating both with the facilities and throughout their organizations. As a result, they are able to increase their IT service transactions per dollar of data center cost and reallocate resources that might otherwise be spent on operations to growth. Over time, this will drive efficiency throughout the industry because competing operators and even enterprise datacentres will be under pressure to match the hyperscale efficiency - and to better understand their own costs. Amazon is thought to have spent $12bn on Data Centers since 2005. Last year the capital expenditures are belived to be almost equal to the revenues. Google has reportedly spent $23bn on its internet infrastruture and Data Centers. Microsoft recently disclosed that it has spent more that $18Bn on its Data Centers since 2005 Softlayer – Plans to spend over 1B in the next year
  2. Good news: Amazon has more instance types and higher-level services than any competitor. Bad news: that means a ton of complexity and tracking challenges for users. Amazon Web Services leads the league in public cloud services. By a lot. Even after big strides by Microsoft and Google, Gartner analyst Lydia Leong estimated that AWS alone still has five times more IaaS compute capacity than the aggregate total of the other 14 cloud providers Gartner tracked. That’s not to say AWS is invulnerable. Even devout fans acknowledge that Amazon’s resources are unwieldy to track and monitor. Attendees of Google’s cloud event in March included many AWS users who were very enthusiastic about Google’s sustained usage price model, which kicks off discounts automatically when certain utilization levels are met.
  3. Not surprisingly 34% of the respondents said they wouldn’t deal with AWS as they were a competitor but the more interesting part of the survey was that 18% the industry said they would adopt AWS moving forward. This is interesting because it reflects a growing belief that the industry will start to incorporate AWS into their product offerings. When you look further at the numbers you see issues such as current technical skills (14%), inability to monetize (16%) or the perception that AWS is hard to work with (8%). If you add these together it amounts to 38% which makes the largest group. The ones I would call out here are technical skills and business models. The industry is developing tools that assist Managed Service Providers and better knowledge is developing around ways to monetize new cloud opportunities.
  4. In the Cloud the lines are blurring between Hosting Companies, Traditional MSP’s & SI’s – It is giving rise to the Cloud Services Broker
  5. Cloud optimization consulting and providing tools to assist is another great revenue opportunity.
  6. RightScale Cloud Portfolio Management enables enterprises to accelerate delivery of applications that engage customers and drive top-line revenue while optimizing cloud usage to reduce risk and costs. With RightScale, IT organizations can deliver instant access to a portfolio of public, private, and hybrid cloud services across business units and development teams while maintaining enterprise control Gravitant is a software company that enables enterprises and solution providers to become IT service brokers. Our flagship software solution, cloudMatrix, is the most effective and production-hardened Cloud Services Brokerage and Management Solution in the market. cloudMatrix is used by multi-billion dollar organizations across the globe to get the most out of cloud computing and effectively deliver IT-as-a-Service. Bitnami Cloud Hosting is a server management solution that makes it incredibly simple to launch and manage apps on Amazon Web Services Cloudmgr provides a Cloud Brokerage Solution for AWS. Cloudmgr takes the most commonly used Cloud Tools on AWS puts them into a easier interface and provides an easy connector and management service
  7. Enhance Public Cloud Offerings Customers Need Help Manage – Increase Margins
  8. Services 2nd Watch has four main types of offerings: Professional services around architecture design, workshops and strategic planning to migrate workloads to AWS 2W Insight helps enterprise IT operations managers or CIOs break down projects and assignments and predict costs MIS Impact Report3/11/2014 Report View – Short 2W Atlas governs and manages the cloud within a corporate governance framework Managed services run the services once they are implemented