managed wi-fi for maximum recurring revenue · • 80% of your customer base ... proactive...

Partner Summit 2014

Michelle SoutherlandProduct Manager, ProServices, Enterprise

Networks Division

Managed Wi-Fi for

Maximum Recurring

Revenue

Alex DizonGeneral Manager, Valley

Business Solutions

ADTRAN Company Confidential® ADTRAN, Inc. 2014 All rights reserved 2

You are not only a value added reseller.

You are a solutions provider. A trusted advisor, well

practiced in the art of consultative selling and “hands

on” interaction with the customer.


WLAN Market Overview

Enterprise WLAN: $5B• Approximately 10% derived

from SPs

• 50% in North America

20% + annual growth since

2010

Controller revenue flat as

market shifts to a services

and software approach• Q1 2013 estimates that

upwards of 35% of AP

shipments could be cloud

managed

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

CY12 CY13 CY14 CY15 CY16 CY17 CY18

Historical Forecast

Millio

ns

Access Points Controllers

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

CY12 CY13 CY14 CY15 CY16 CY17 CY18

Historical Forecast

Millio

ns

Asia Pacific CALA EMEA North America

Source = Infonetics

Source = Dell’Oro


The world is going wireless, and users need to

connect to the network wherever they are• Consumerization: Average North American user

has three devices

Next gen devices only connect wirelessly

Apps moving to the network requiring always-

on network connectivity

The emergence of new faster standards

(802.11ac)

Demand is spreading from core adopters

(healthcare, education, retail, hospitality) to

new adopters such as assisted living, finance,

etc

What’s Driving Growth


Your Customers Need Wi-Fi…and they

Need YOU to Deliver It

Growing need for business-

class Wi-Fi• Security concerns

• Scale for BYOD

Need for reliable, always-on

service• Critical to business operations

Limited technical resources and

budget constraints

Desire to offload solution

Push to virtualization and cloud


Wireless LAN Market

Wireless LAN business MARKET IS GROWING

• Continued growth YoY, QoQ

• Worldwide cloud managed infrastructure and managed

services • $653 M in 2014

• $2.5 B by 2018

• ~$1.5 B in growth in four years

• Continued growth YoY, QoQ since 2010

Source:


But Why Cloud Wi-Fi?

Minimize upfront

capital expense

Security and

Compliances

Redundancy (High

Availability)

Management

across multiple

networks

Reduces Power

and Operational

Consumption

Growing desire to move entire solutions and

applications into a cloud environment: data

storage, security, voice…Wireless

Scalability

Cloud Managed Services = Monthly Recurring Revenue


You sell 0.01% of wireless services today: $65,300 in

2014

Grow with market without gaining new revenue, so about

$37,500 in growth each year

But wait… it is Recurring Revenue

Putting it Into Perspective

Year Revenue / Yr Revenue / Mo

2014 $65,300 $5,442

2015 $102,800 $8,567

2015 $140,300 $11,692

2016 $177,800 $14,817

2017 $215,300.00 $17,942

2018 $252,800.00 $21,067


Doesn’t include installation services

Doesn’t include hardware refreshes or upgrades or

pull through of switches or other LAN refreshes

Doesn’t include on-premises solutions, wireless hot

spots, or carrier offload

Doesn’t include ancillary services like captive portal

development or mobile device management

Putting it in Perspective

Hosted and Managed Wireless is Huge.


If you aren’t supporting your

customer’s wireless, someone

else is.

Now is the Time for Wireless LAN

Lead with wireless. Or pull it through with your other verticals and products.


Costs –capital

and opex?

Defining Target

Customer

Price Points?

Challenges

Challenges can delay your time to

market.


What is your existing target customer profile?• 80% of your customer base

Do you have other cloud or monthly recurring

services you can bundle?• Security

• Storage

• VOIP

What are new target customer profiles?• New verticals?

• Upstream to larger accounts?

Defining the Target Customer


Vertical Focused Solutions: K12

3 out of 5 schools in America lack the wireless needed to

deploy technical education tools

Leverage technology to maximize learning and minimize

disruption to the class• BYOD, 1:1 initiatives

• Category 2 e-rate fundingSpeak Up 2012 National Findings: K-12 Students


Must have wireless services

Initiative to monetize the wireless

Sensitive to guest user experience

Vertical Focused Solutions: Hospitality


Magnified pain point of limited IT staff

Generally remain underserved area for wireless services

Convenience, minimal upfront capital expense

Turnkey offering

Vertical Focused Solutions: Small to

Medium Business

Small to medium business wireless market

opportunity has been estimated to approach

$1.3B in the next few years (Dell’Oro)


Wireless “Nice to Have”

Wireless is Necessary

How do I monetize wireless?

How can wireless drive

business transformation?

Evolution of Wireless

The reseller that provides business

transformation is a trusted advisor.


Complete MRC

• Hardware

• Cloud Services

• Customizations (splash pages, help desk)

• Professional Services –Installation separate

Hybrid

• Hardware upfront NRC

• Cloud Services, Customizations, monthly charges

• Professional Services –Installation separate

Complete NRC

• All components purchased up front

Recurring Cloud


NRC MRC

Recurring Cloud


Wireless Operational Overhead

Technical Expertise• Wireless modeling, RF analysis

• Implementation services

Staffing• Ongoing management

• 7x24 support

• Help Desk for Guests

Trusted Advisor, Total Solution• PCI compliance or HIPPA

• Wireless network overlay to wired network

• Firewalls, Routers, etc.


Wireless Operational Overhead

Planning

Install

TestingManagement

Support

“Over the top”

offerings for

additional revenue in

every phase

Standardize and

automate


Dashboard and

Customer Friendly

Tools

ReportingMonitoring,

AlertsProactive

Management

Wireless Management: Differentiator for

Success

Automate

Repetitive business that feels

highly customized


With ADTRAN, it’s Easy.

ProServices for vWLAN

Survey

ProStart

ProCare

ProCloud

ProServices makes

entering the wireless

space SO EASY…

Bring your customer

and ProServices will do

the rest.


Power of ProCloud Wi-Fi

INSTANTLY BECOME A WIRELESS MANAGED SERVICE

PROVIDER BY RESELLING PROCLOUD WI-FI

Hosted Infrastructure for vWLAN

Managed software patches and upgrades

7x24 Proactive Monitoring and Alerts

Automatic ADTRAN trouble ticket generation

Priority SLAs

Monthly Management Reports

Move / Add / Change Support

Ongoing maintenance and AP

hardware replacement

Restricted customer access


1

• Get to Market Faster

• New Monthly Reoccurring Revenue Stream

2• Established pricing and cost structures

3

• Extend your footprint

• Minimize exposure to competition

Benefits of Turnkey

Turnkey is easy!


• Remote predictive site survey

• Onsite implementationPlanning and

Implementation (ProStart)

• Redundant hosted infrastructure

• Complete proactive management, alerts, reporting

Hosting and Management (ProCloud)

• End user and guest wireless connectivity supportHelp Desk

(ProCare)

Turnkey


Remote predictive site survey

Dedicated Project Manager and Project Engineer

Custom data gathering and configurations

Onsite installation

Test and turn up support

Remote training

2 week labor warranty

Planning and Installation


Resolve wireless user connectivity problems

Problem escalation

1-800 Number Provided

Answer as “ADTRAN Help Desk”

Power of Help Desk

Libraries

K12

Restaurants

Assisted Living

MDU (Multi Dwelling Units)


Services for Success

Wireless is redefining customer

expectations and is a tremendous

recurring revenue opportunity

Cloud based, managed wireless

maximizes recurring revenue and

leverages what you do best• Consultative selling

• Trusted advisor

Partnering with ADTRAN is preparing

for success

managed wi-fi for maximum recurring revenue · • 80% of your customer base ... proactive...

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