cloud computing : rethink your channel
DESCRIPTION
You sell or intend to sell SAAS or IAAS no doubt that the role of the traditional channel will be significantly impacted by the rapidly evolving on-demand services market, there is still plenty of room for innovative channel organizations to operate. There are also plenty of opportunities for new channel partners to succeedTRANSCRIPT
Cloud Computing Impacts on Channel
Personal Computers
Internet
Cloud Computing
80s 90s 00s 10s 20s
History of IT Channels
Solutions as an.... UTILITY
UTILITY becomesVERSATILITY
On
eN
eed
On
eA
pp
€10B in 200940% CAGR75% of Companies use one application in SaaS
In 2010, 45% of Companies will spend > 25% of their IT budget on SaaS compared to 23% today
New Internet Bubble?
Massive & global opportunity
Very fast growth
Viral and ground-up expansion
Capital available for SaaS players
Many ill-defined business models
Business as a Service
Software as a ServiceInfrastructure as a Service
Business as a Service
Any application licensed for its usage on demand (mostly over the web)
Server VirtualizationStorage VirtualizationAdvanced lease infrastructure (pay per use) Grid Computing
New Way of BuyingNew Way of Selling
Disruptive for Customers
• Acknowledge the benefits for their own business compare to existing solution
• Support the idea of an externally hosted model
• Define what to do with existing assets (save waste)
• Accept transition costs + workload
• Check possibility of changing budget allocation from Capex to Opex
Deci
sion P
att
ern
Disruptive for ITC Channels
Limited room for IT services (design)Revenues cannibalization riskLimited presence in SME
Long customer decision cyclesRequire market expertiseRevenues cannibalization risk
Require market expertiseLimited IT knowledgeLack of agility
IT Resellers & Distributor
s
ServiceIntegrators
Telcos
PurposeAre common IT Business
Rules applying to
Cloud Computing?
IT Distribution today
No infrastructure to sell
No service to sell
No supply chain
IT/Telecom Resellers
VARs/Integrators
Distributors
CloudComputing
Time to rethinkIT DistributionTime to rethinkIT Distribution
Converting Channels
CreatingChannels
Converting Channels
CreatingChannels
Motivate IT Resell Channel
Channel proposal to be at least as rewarding as infrastructure + on-premise software(ie: extra services)
Remuneration scheme to be rewarding at customer contract sign off
Identify business for them and coach their business development efforts
Motivate System Integrators
Channel proposal to be integrated in a broader service proposition to customers
Possibility to host application or customer data for the SI to propose outsourcing package
Solid technical interface
Motivate Telcos
Possibility for the Telco to host application or customer data (branding option)
Solid on-boarding program for sales & technical teams
Dedicated teams to do out-band prospection
Example BT
Porfolio expansion through a multi solutions offering
Data/Applications hosted by BT
Complementary to broadband internet offering
Converting Channels
CreatingChannels
Vertical Channel
Customer
VerticalChannel
Point ofpurchase
Service Provider
Need Identification
A Massive Presence
120 000 Companies*
IT CompaniesResellers
Integrators
BusinessServices
Companies
1 800 000 Companies**
(*) EMEA Source Compubase
(**) Western Europe Source IDC
Services categories
CollaborationSales &
Marketing Manufacturing HR
AccountingFinance/
Insurance
Business consultantMarketing agencies
Accounting Companies
Marketing AgenciesTraining
CompaniesBusiness
Consultants
Outsourcing servicesBusiness
Consultants
HR consultantsBusiness
ConsultantsAccounting Companies
Accounting CompaniesBusiness
Consultants
Hybrid Model
Direct
Contractual ChannelNon-Contractual
ChannelResellersResellers + ServicesIntegrators/ OEM
ReferralsInterfaceFacilitator
Non-Contractual Resellers
Role Compensation
Referral• introduce the product to
customer• register the customer
• 10% discount• no upfront payment
Interface
• introduce the product to customer
• register the customer• invoice the customer
• 20% discount• no upfront payment
Facilitator
• introduce the product to customer
• register the customer• invoice the customer• train the customer
• 30% discount• Online training• no upfront payment
Vertical Channel Platform
Business Services
Interested Not interested
Portfolio extension Services
opportunityRecurring model
Credibility
Certification/ upfront contract
Complicated process
Technical involvement
Huge variety of Companies90% between 1-10 employees (many free-lance)In all businesses
Motivate Vertical Channel
Turnkey solutions
Hassle free resell platform
Direct customer support/hot line
Room for consulting services
Aggregators
ApplicationHosting
DataHosting
Servicing(billing)
Resellers
Customers
ApplicationsProviders
Aggregators Channel
Aggregators
Interested Not interested
Solid value proposition
Room for hosting application & dataRecurring model
No markup possibility
Mostly startup CompaniesVarious business modelsVarious services offering
Motivate Aggregators
Make sure there is room in your business models for them to provide: access to specific channels, customers or complete your service offering
One on one negotiation
Example RevevolConsulting Company assisting large Companies in their IT decisions
Becomes involved in reselling IT solutions with the Cloud Computing
Signed agreements with several SaaS/Cloud players including Google Aps
Just bid with Valeo for the installation of 30 000 users with Google offering
The new channel map
Converted Channels
Direct Play
Vertical Channels
Aggregators
IT Channels
System Integrators
VARs
Telcos
OEMs
Direct
Consultants
Accountants
Marketing Agencies
Application Hosting
Data Hosting
SaaS Resellers/Dist
Don’t push on a rope
Demand Generatio
n
Demand Fulfilment
Fulfilment vs Generation
Demand Fulfilment Generation Comments
IT Vendor direct ***** ***** Full dedicationLimited capacity
IT Vendor Channel **** * Great coverageLimited mindshare
Integrators *** *** Good coverageGood push
Vertical Channel * **** Proactive demandNo supply chain
There is no perfect channel
There is only a perfect balance
Dealing with complexityExpanding to
Europe
Expanding to US
How to compensate the channel?Converting channel
or creating channels?
How to get channel loyalty?
How to reach resellers?
How to get reseller
commitment?
How to train resellers?
How to follow up their business plan? How to negotiate a
contract?
How to build a platform for vertical
resellers?
Direct or Indirect?
Cloudy Channels
5 Step Process
BusinessIdentification
ChannelFramework
ChannelRecruitment
ChannelRamp Up
ChannelManagement
Recruiting and Developing Channelsfor IT Companiesin EMEA and US
Features>200 years of cumulated experience in business/channel managementWide knowledge across IT (Hware, Software, Telecom & Services)
Europe, Middle-East & Africa, U.S. coverageIn depth local knowledge
Services designed for SaaS & Cloud CompaniesChosen by leading Companies
Celsius International: market and customer dataCompubase: channel data
Easy to turn on and off - Immediately operationalEasy to expand or contract
Result driven compensationThe right skills for the right job
Expertise
Coverage
SaaS/Cloud Expertise
Partnership
Flexibility
Cost effectiveness
BenefitsImmediate access to Cloud/SaaS business management expertise when you need it
Immediate access to most European, Middle East and African countries
Immediate access to U.S.
Result driven & cost effective services
Led by IT Senior Business Managers