leveraging the cloud to lower your wireless networking costs
DESCRIPTION
Presented on May 3, 2012 for InnoTech Oregon. All rights reserved.TRANSCRIPT
Leveraging the Cloud to Lower Your Wireless Networking Costs – “Wireless Control in the Cloud”
Jim SteinbacherDirector of SalesPowerCloud Systems
Rick LindahlPresidentInvictus Networks
Agenda
o Overview
o Why Cloud?
o What is Available?
o How to Make/Save
$$
o Solutions in Action
Corporate Overview
o Invictus Networks • Founded in 1990 by Rick Lindahl
• A leading Northwest expert supplying Wi-Fi for MSPs & SMB
verticals
• Broad-based expertise in RF planning and implementation
o PowerCloud Systems• Developer of CloudCommand
• Global leader providing Networking as a Service (NaaS)
• VC-backed spinout from PARC labs; Qualcomm lead investor
• CloudCommand enables VARs to earn recurring revenue
(subscript)
What is “The Cloud” ?
It’s really pretty simple!• If you use GMail, Yahoo, or
any web email• If you use a web-based tool• If you use Amazon or other
online vendors• If you use online backup
from Mozy, Intronis, Carbonite, etc.
• If you use Dropbox
You already use the cloud!
What is “The Cloud” ? (cont.)
“Cloud” is basically a virtualized, distributed, computing platform
• Public, Private, Hybrid• Allows for rapid product scaling and
deployment• Reduces costs for both end users and
developers
Market Overview: Rush to the CloudSMB Adoption in 2012
o SMB cloud market grew 25% last year
o SMBs with <20 employees are 3x more likely to choose cloud services over on-premise services (due to cost, flexibility & management)
o SMBs will increase 100% spending for cloud applications by
2015
Parallels Research 2012SP / MSP Adoption in 2012
o >70% are “on track” to offer cloud-based managed services in 2012
UBM Channel Research 2012
The Traditional Methods of WiFi DeploymentController Based
o Feature rich
o Expensive to deploy, especially for multiple sites
o Often requires expertise beyond the scope of many VARs and
MSPsStandalone (ala’ a Linksys from Frye’s)
o Limited featureso A security nightmareo No remote managemento Low margin on resale
Cloud based solutions bridge the gap
• Low cost for both the end user and the Reseller
• Moves system costs from CapEx to OpEx
• Scales both up and down• Remote management ‘from anywhere’• Enterprise level security• Features not available in standalone• HIPAA and PCI compliance
Why VARs and MSPs Should Buyo $$ - Revenue Opportunity
Build business managing Wi-Fi
o Manage Multiple Customers 1 pane of glass empowers MSPs to see/control multiple sites simultaneously
o Remote ManagementAny browser, anywhere, anytime
o Plug ‘n ConnectZero config; Drop ship to customer; eliminate truck rolls!
o Email & SMS alerts
o Site Survey Rogue Detection
o Auto Firmware Updates
o Low Cost to Deploy/Manage
o Firewalled Hotspot & Guest Access$$, customizable, auto-scheduling & more
o Enhanced SecurityPatented IDA to add/remove/track per-device activity
o Multiple Location RoamingTransparent security all locations; great for branch, multi-store, home
Why Customers Should Buyo Increased Security for
Their Network
o Affordable
o Both MSP and Customer Can Manage the WiFI
o Adding Additional Coverage for One or Multiple Locations is Easy
o Firewalled Hotspot & Guest Access
o Multiple Location Roaming
o Compliance
Three Basic Business Models:
o Reseller sells solution to the end user and end user manages
o MSP sells equipment to end user and manages for a monthly fee
o MSP ‘leases’ equipment to end user and manages for a monthly fee
How to Boost Profits…
Traditional VAR Model:
Real numbers…End User Hardware Price $ 79.95
MSP/VAR AP Hardware Cost $ 70.00
End User Initial Cloud Price $ 129.95
MSP/VAR Initial Cloud Cost $ 75.00
End User Renewal Price $ 99.95
MSP/VAR Renewal Cost $ 65.00
Number of Customers
10 20 50 100
Average Number of APs per Customer
1 $ 998.50 $ 1,997.00 $ 4,992.50 $ 9,985.00
1.5 $ 1,497.75 $ 2,995.50 $ 7,488.75 $ 14,977.50
2 $ 1,997.00 $ 3,994.00 $ 4,992.50 $ 19,970.00
3 $ 2,995.50 $ 5,991.00 $ 14,977.50 $ 29,955.00
MSP Model One:
Real numbers…End User Hardware Price $ 79.95
MSP/VAR AP Hardware Cost $ 70.00
End User Initial Cloud Price $ 129.95
MSP/VAR Initial Cloud Cost $ 75.00
End User Renewal Price $ 99.95
MSP/VAR Renewal Cost $ 65.00
Business model A monthly billing charge $ 10.00
Burden Rate (%) 30%
Number of Customers
10 20 50 100
Average Number of APs per Customer
1 $ 2,678.50 $ 5,357.00 $ 13,392.50 $ 26,785.00
1.5 $ 4,017.75 $ 8,035.50 $ 20,088.75 $ 40,177.50
2 $ 5,357.00 $ 10,714.00 $ 26,785.00 $ 53,570.00
3 $ 8,035.50 $ 16,071.00 $ 40,177.50 $ 80,355.00
MSP Model Two:
Real numbers…End User Hardware Price $ 79.95
MSP/VAR AP Hardware Cost $ 70.00
End User Initial Cloud Price $ 129.95
MSP/VAR Initial Cloud Cost $ 75.00
End User Renewal Price $ 99.95
MSP/VAR Renewal Cost $ 65.00
Business model A monthly billing charge $ 35.00
Burden Rate (%) 30%
Number of Customers
10 20 50 100
Average Number of APs per Customer
1 $ 3,780.00 $ 7,560.00 $ 18,900.00 $ 37,800.00
1.5 $ 5,670.00 $ 11,340.00 $ 28,350.00 $ 56,700.00
2 $ 7,560.00 $ 15,120.00 $ 37,800.00 $ 75,600.00
3 $ 11,340.00 $ 22,680.00 $ 56,700.00 $ 113,400.00
Add Best-in-Class Hardware
Ubiquiti Unifi AP Family (UAP, LR, Pro, Outdoor)o 300Mbps speed
o 500ft range
o Preferred product
More platforms soon!
How to Sell OPENMSPs95% don’t have a cost effective Wi-Fi solution for SMB customers
Small Office Medical VerticalHIPAA compliance is required – OPEN provides it with IDA, event capture & per-device reporting
HospitalityOPEN’s affordability means even Tier 3 hotels can offer guest Wi-Fi that works (indoors/outdoor) – managing it for a fraction of traditional costs
Come Inside & Expand to Wi-FiWISPs in the outdoor market and resellers and others who are new to wireless sales & support – can immediately expand their business footprint and build new channels
Success in Action
Hospitality Healthcare Education
Jim SteinbacherDirector of Sales
PowerCloud [email protected]
(971) 563-2164
http://open.cloudcommand.com
Questions?
Visit us at the Invictus Booth