the systems management and security business opportunity leo hanna sales director – system center,...
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The Systems Management and Security Business
OpportunityLeo Hanna
Sales Director – System Center, Microsoft Corporation
Your objectives IT challenges The systems management market Why Microsoft Why Microsoft System Center System Center opportunities Helping you succeed Summary and next steps
Agenda
Your Objectives
Become a trusted technology advisor/partner Generate services revenue at a profit Provide exemplary service and exceptional
business value Build competencies on industry-leading solutions
that enable long-term value and stability
Add new business value for customers Use management as a differentiator Management and Security solutions are
becoming more important to driving down cost Lots of low hanging fruit (Exchange Server,
Windows Vista deployments, Microsoft SQL Server)
Aligns with Microsoft’s sales priorities and initiatives
Opportunity to create services to deliver System Center “Service Manager
Systems Management Can Benefit You
Your objectives IT challenges The systems management market Why Microsoft Why Microsoft System Center System Center opportunities Helping you succeed Summary and next steps
Agenda
70% of IT budgets are
spent maintaining what
we have
Speed will become a
major business differentiator in a connected world
IT infrastructure must change to meet business demands – becoming more "real-time"
We need to harness the power of technology to improve IT infrastructure agility, cost, and quality of service
Making IT Matter
Gartner Analysis of IT Challenges
Provide business value through IT operations and
infrastructure
Communicate business value of IT operations and
infrastructure
Improve service deliveryControl, maintain, and secure desktops and
mobile devices
Top Priorities of CIOs
“Even the most skilled IT professionals can’t manage the complexity of today’s IT landscape using only traditional
manual system management processes. In fact, the use of system management processes that rely on
manual procedures is one of the major sources of human error. Manual processes can cause increased reaction times to changes in the IT environment. Such
processes are also difficult to audit, which makes them a risk in today’s highly regulated environment.”Bronna Shapiro
“Applying Intelligent Automation to Business Continuity.” Z/Journal. June/July 2006
Systems Management Solutions
Lack of product
integration
Product complexity
Inability to address new technologies
Current Management Solutions
Your objectives IT challenges today The systems management market Why Microsoft Why Microsoft System Center System Center opportunities Helping you succeed Summary and next steps
Agenda
The Promise of Systems Management
Increased IT productivity
Automated, streamlined
management
Less end-user
downtime
Platform for Network and Systems Management
“Configuration management databases (CMDBs) will provide a single source of truth for IT
infrastructures. . . .CMDBs will provide a unified view of network assets and their configurations, map device and
application dependencies, and let us manage services, not machines.”
Andrew Conry-Murray“CMDBs: An IT Goldmine?”
Network Computing. Jan. 22, 2007
Management Market sizeSystems, Network and Storage
$9.9 billion in 2005
Growing at 7.7 CAGR
~$13+ billion in 2010
Big Opportunities in Systems Management
Macro Trends in Infrastructure• From Projects to Strategies• From Back-Burner to Front-And-Center
Market Requirements• Clear end-to-end view of IT Infrastructure• Reduce and manage complexity
effectively through automation and predictability
• Enforceable IT policies mapped to business requirements
Technology Enablers• Policy-based management• Virtualization and automation• Service-oriented architecture• Operationally aware applications
Number
Companies 2003 2004 2005 Yr/Yr q
1. Hewlett-Packard Company $937 $1,025 $1,113
9%
2. IBM $678 $716 $757 6%
3. BMC Software Inc. $577 $624 $682 9%
4. Computer Associates Intl. $597 $633 $631 0%
5. Microsoft Corporation $309 $369 $416 13%
6. NEC Corporation $275 $343 $381 11%
7. Hitachi Limited $302 $353 $381 8%
8. Fujitsu Limited $243 $295 $331 12%
9. Cisco Systems Inc. $255 $268 $286 7%
Fastest Growing of the Top Nine Vendors
IDC 2005 Top System Management Vendors. Dollars in millions
Systems Management Growth
“We expect to see robust growth . . . as the need for IT governance, services support, and improved software development team productivity drive ongoing demand for software configuration
management tools.”
Worldwide Software Change and Configuration Management 2005 Vendor Shares
Melinda-Carol Ballou, IDC, December 2006
Microsoft and Systems Management
“When I ask enterprise clients who the management market share leaders will be in
2007, a majority of them say Microsoft.”Jean-Pierre Garbani
Vice-president of Forrester ResearchForrester
Your objectives IT challenges today The systems management market Why Microsoft Why Microsoft System Center System Center opportunities Helping you succeed Summary and next steps
Agenda
Microsoft’s Promises to IT
Infrastructure Optimization (IO)
Dynamic Systems Initiative (DSI)
Solutions Focus
Self-managed systems Increased IT
productivity and reduced costs
Simplified systems management
Improved service levels Enhanced compliance Greater business agility
ITIL-based Process and Knowledge Embedded
Capture knowledge in
models
WS-Managemen
t
Multi-level: operating systems, applications
Dynamic Systems Initiative (DSI)
Infrastructure Optimization (IO)
Desktop standardizatio
n
Comprehensive PC security
Directory-based
authentication
PC standards compliance
Automated software
distribution
Directory-based user
provisioning
Automated user data backup
Model-based management
Dynamic allocation of
resources
Infrastructure Optimization (IO)
Your objectives IT challenges today The systems management market Why Microsoft Why Microsoft System Center System Center opportunities Helping you succeed Summary and next steps
Agenda
Management Is Important to Microsoft:1. A manageable system is becoming the rule, not the exception.2. In the IT “war on costs,” managing systems is key. Core IO is
the methodology; System Center technologies are enablers.3. Management is a key initiative in the move from reactive to
proactive in systems lifecycles
Microsoft System Center Focus
Expand the Portfolio
Service ManagerVirtualization
System Center Essentials
Drive Existing Solutions
Strengthen Value PropositionCore IO“Attach”
Target New Segments
Mid-market
Introduce Service Models
Asset ManagementRemote Monitoring and Management
Additional Platforms: Linux, UNIX, CISCO, F5, Intel, AMD
Business A
pplications
Window
s Applications
Microsoft’s System Center
Windows Services:
Active Directory, MS.NET, Virtualization, Powershell
Microsoft Windows Platform
Storage Management
ServiceManagement
Configuration & ReleaseManagement
Event & PerformanceManagement
System Center Roadmap
2007
2008
Provides enterprise capabilities to manage the largest and most complex
infrastructures
Integrates with and simplifies management of the Microsoft Windows-based systems and
applications your company already has implemented
Includes an extensiblearchitecture, interoperability, and process management framework enabling you to adapt as your infrastructure
grows or changes
Enables knowledge-driven management of your physical and virtual IT
environment Fuels Productivity
Best for Windows
Foundation for Growth
Enterprise Strength
Strengthen the Value Proposition
* Source: IDC 2005 Top System Management Vendors
Worldwide Customer Usage 11,000+ Microsoft Operations Manager customers 22,000+ Systems Management Server customers
(used by 50+ percent of “Large Enterprises”)
Fastest Growing Major Systems Management Vendor*
System Center “represents a route for Microsoft to gain a significant share of the systems
management market.”Microsoft “will become a significant player in the systems management market over the next five
years.”Computer Business Review Online
System Center Momentum
Driving Awareness and Demand
Your objectives IT challenges today The systems management market Why Microsoft Why Microsoft Systems Center System Center opportunities Helping you succeed Summary and next steps
Agenda
Worldwide Market for Desktop Deployment
$42B
$78B
$23B
$52B
$81B
$28B
$63B
$83B
$33B$143B$160B
$179BWhat does this mean? Substantial growth
in desktop services over the next three years fueled by Microsoft® Windows Vista™ and the 2007 Microsoft® Office System
Windows client and applications deployment growing fast
Attach: Supporting Desktop Deployment
Desktop Services PC Hardware Windows OS/APPX
20% revenue share in 2005 with growth of 14% compared to the prior year, whereas Oracle only grew 7.3% and IBM only grew 5.5%
Attach: Supporting Server Management
~65% unit share (new shipments) in 2006 according to IDC
Over 60% market share of the e-mail server market
*Source WW MM Overview (AMI)
Global MM Mgmt Software spending = $3.9 billion*
Microsoft® System Center Essentials 2007 provides a unified management solution that enables IT professionals
in mid-size organizations to proactively manage their IT environment with increased efficiency.
New Segments: Midmarket Growth
“Attach" Opportunity: Management capabilities for multiple Microsoft technologies
Build a Management Pack Practice: Any Management Pack built for Operations Manager 2007 works on Essentials 2007
Microsoft estimate: For every $1 of software revenue, there are $n of services revenue that partners can realize
Significant systems management services opportunities, especially in small and mid-market
Services Best Practices Build alliances that drive business growth Earn a Microsoft Partner Program competency Focus more on business velocity than deal size Diversify into complimentary practice areas
Generating Services Revenue
# of Deals (Productivity + Ramp) Year 1 Year 2 Year 3
EPG-Operations Management 1 2 3
EPG-Change Management 1 2 3
SMS&P-Midmarket Solutions 4 9 15
TOTAL Number of Deals 6 13 21
Initial Year 1 Year 2 Year 3
License Revenue ($ Thousands) $ - $ - $ -
Service Revenue ($ Thousands) $ 193 $ 389 $ 589
License Margin ($ Thousands) $ - $ - $ -
Service Margin ($ Thousands) $ 109 $ 220 $ 334
License Margin % 0% 0% 0%
Service Margin % 57% 57% 57%
Skills Development ($ Thousands) $ (25) $ (19) $ (19) $ (19)
Net Cash Flow ($ Thousands) $ (25) $ 90 $ 202 $ 315
Net Margins % 47% 52% 53%
Net profit after 3 years ($ Thousands) $ 582
Ratio Investment/profit (3 year) 7.2
Deals to Breakeven (# of deals) 1.4
Source: team analysis; partner interviews
• Relatively low upfront investments: cross-train existing staff• Establish dedicated practice after first 2-3 wins• Lower cost-of-sales: higher win rate, shorter sales cycle• Strong customer demand; greater deal velocity• Attractive deployment services opportunity
Projected 3-year net cash flow ($ Thousands)
$(24.9)
$90.4
$201.7
$315.2
$(50.0)
$-
$50.0
$100.0
$150.0
$200.0
$250.0
$300.0
$350.0
Initial Year 1 Year 2 Year 3
The Partner Opportunity: An Example
Your objectives IT challenges today The systems management market Why Microsoft Why Microsoft System Center System Center opportunities Helping you succeed Summary and next steps
Agenda
Optimize and Secure Your Core Infrastructure Materials that focus on the overall high-level
message Supporting individual messages for Security and
Manageability to enable you to execute an integrated marketing campaign.
Bill of Materials Readiness materials, marketing resources and
templates, event hosting resources, and sales resources
Ready to Go Campaign
Your objectives IT challenges today The systems management market Why Microsoft Why Microsoft Systems Center System Center opportunities Helping you succeed Summary and next steps
Agenda
Strong need for systems management due to IT infrastructure complexity
IT spending on systems management is growing and expected to continue
Microsoft is investing heavily and establishing itself as a leader in systems management
System Center provides a comprehensive systems management solution
Windows Vista deployment, attach scenarios, midmarket, and services all provide opportunities to generate systems management revenue
Microsoft provides technical and sales support to help you succeed
Summary
Become a System Center Partner Achieve System Management specialization in the
Advanced Infrastructure competency Build a management practice on Operations
Manager Build a deployment practice on SMS Build a managed-services practice for mid-market
customers based on Operations Manager and Essentials
Participate in product launches and customer campaigns
Next Steps
© 2007 Microsoft Corporation. All rights reserved.This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.
© 2007 Microsoft Corporation. All rights reserved. Microsoft, Active Directory, Dynamics, SharePoint, SQL Server, Windows Server, and Windows Vista are either registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries. All other trademarks are property of their
respective owners
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.