Execu&ve Cer&ficate in Cloud Success Course 1: The Cloud Opportunity
CompTIA Channel Training About this Educa&on The content and materials featured in this presenta8on are the result of a collabora8ve, CompTIA community-‐led development effort. An advisory group comprised of channel leaders and technical experts iden8fied training goals and objec8ves, while educa8on specialists carried out development work based on the insights and informa8on provided by the advisory group and other subject maGer experts. About CompTIA CompTIA is the voice of the world's informa8on technology industry. As a non-‐ profit trade associa8on advancing the global interests of IT professionals and companies, we focus our programs on four main areas: educa8on, cer8fica8on, advocacy and philanthropy. 2
Transforma&on is more than just adding a new product to your porBolio
SERVICES
TECHNOLOGY
MARKETING
SALES
Successful Cloud Prac&ce
Opera&ons
(Business models, revenue projec&ons, metrics, process)
The decision to offer Cloud solu&ons is far more involved than a basic product decision 3
Transforming your business to the Cloud Cloud Business
Cloud Transforma8on
Cloud Overview
Cloud Path
Key Cloud Drivers
People Resources
Channel Opportunity
Processes Revenue Profit
4
Transforming your business to the Cloud Cloud Business
Cloud Transforma8on
Cloud Overview
Cloud Path
Key Cloud Drivers
People Resources
Channel Opportunity
Processes Revenue Profit
5
Cloud compu&ng defini&on
Cloud compu*ng is a model for enabling ubiquitous, convenient, on-‐demand network access to a shared pool of configurable compu*ng resources (e.g., networks, servers, storage, applica*ons, and services) that can be rapidly p rovisioned a nd r eleased w ith m inimal management effort or service provider interac*on. -‐ Na8onal Ins8tute of Standards and Technology (NIST) .
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Cloud compu&ng defini&on 5 Essen&al Characteris&cs
3 Service Models
On-‐demand self service
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Broad network access
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Resource pooling
PlaWorm as a service (PaaS)
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Rapid elas8city
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Measured service
Infrastructure as a service (IaaS)
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SoVware as a service (SaaS)
3 Deployment Models §
Private cloud
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Public cloud
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Hybrid cloud
Na8onal Ins8tute of Standards and Technology (NIST), hGp://csrc.nist.gov/publica8ons/nistpubs/800-‐145/SP800-‐145.pdf 7
Characteris&cs of typical compu&ng models
Cloud compu*ng is a model for enabling ubiquitous, convenient, on-‐demand network access to a shared pool of configurable compu*ng resources (e.g., networks, servers, storage, applica*ons, and services) that can be rapidly p rovisioned a nd r eleased w ith m inimal management effort or service provider interac*on. -‐ Na8onal Ins8tute of Standards and Technology (NIST) .
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Everything as a service
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The evolu&on to Cloud compu&ng
DEFINITION
DELIVERY MODEL
ON-‐PREMISE PRODUCT RESALE On-‐premise product resale, product related services, etc.
Tradi&onal IT Service Provider: Provides on-‐premise product resale, service and support.
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The evolu&on to Cloud compu&ng
DEFINITION
DELIVERY MODEL
ADDING MANAGED SERVICES ON-‐PREMISE PRODUCT RESALE On-‐premise product resale, product related services, etc.
ON-‐PREMISE HOSTED
OFF-‐PREMISE HOSTED
Hos8ng, plaWorm, solu8on, or data resides on-‐premise
Hos8ng, plaWorm, solu8on, and data resides at 3rd party
Managed Services: transfers the responsibility of the data center opera8ons to a third party typically in an on-‐premise Hosted or Off-‐premise Hosted environment
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The evolu&on to Cloud compu&ng
DEFINITION
DELIVERY MODEL
T HEN CLOUD SERVICES ON-‐PREMISE PRODUCT RESALE On-‐premise product resale, product related services, etc.
ON-‐PREMISE HOSTED
OFF-‐PREMISE HOSTED
CLOUD
Hos8ng, plaWorm, solu8on, or data resides on-‐premise
Hos8ng, plaWorm, solu8on, and data resides at 3rd party
Hos8ng, plaWorm, solu8on, and data resides at the vendor and is delivered on demand via SaaS, IaaS, or PaaS either in a private or public cloud
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Primary catalysts for channel business transforma&on 41%
Cloud compu8ng pushing us in new direc8ons Customer demand for different services and IT delivery models
36% 35%
Desire to move to a recurring revenue model
32%
New financial models are more lucra8ve Vendors pushing us to change
27%
Margins on product sales declining
23%
Defensive move against obsolescence
23%
The push to Cloud Compu&ng is coming from many direc&ons Source: CompTIA 4th Annual State of Channel: Base: n=350 IT channel firms
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Transforming your business to the Cloud Cloud Business
Cloud Transforma8on
Cloud Overview
Cloud Path
Key Cloud Drivers
People Resources
Channel Opportunity
Processes Revenue Profit
14
Transforming your business to the Cloud Cloud Business
Cloud Transforma8on
Cloud Overview
Cloud Path
Key Cloud Drivers
People Resources
Channel Opportunity
Processes Revenue Profit
15
Key drivers of Cloud compu&ng
Economic Factors Business Innova&ons
Technology Enablers
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Cloud moves into the mainstream THEN
NOW
A significant chunk of the channel is cau8ously dipping into cloud compu8ng
The channel is now all in on the cloud, with 93% of firms characterizing their cloud solu8ons as mature or somewhat mature.
A significant chunk of the channel is cau8ously dipping into cloud compu8ng
Most cloud discussions no longer include defini8ons, but that is more due to a broad interpreta8on of cloud rather than agreement on a specific defini8on.
The sweet spot for the channel is selling cloud to medium-‐sized companies
Adop8on at medium-‐sized companies is strongest (97%), though large companies are basically in the same zone (96%). Small firms lag at 84%.
Transi8oning to the cloud will mean dealing with exis8ng IT investments and systems and undertaking the integra8on work involved in tying mul8ple cloud and on-‐premise environments together
While much of the discussion over the past five years has focused on ini8al migra8ons to the cloud, many end users are now performing secondary migra8ons and quickly building a mul8-‐cloud environment that includes on-‐ premise systems.
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Cloud momentum con&nues G R E A T E R T H A N
25%
Total IT Spent On Cloud solu8ons by 2020
G R E A T E R T H A N
80%
30%
Cloud Growth Rate Versus 5% for overall IT
Customers Adopt Some form of Cloud solu8on
$60 B I L L I O N
Public Cloud Growing to $ 1 3 0 B by 2018
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Transforming your business to the Cloud Cloud Business
Cloud Transforma8on
Cloud Overview
Cloud Path
Key Cloud Drivers
People Resources
Channel Opportunity
Processes Revenue Profit
19
Transforming your business to the Cloud Cloud Business
Cloud Transforma8on
Cloud Overview
Cloud Path
Key Cloud Drivers
People Resources
Channel Opportunity
Processes Revenue Profit
20
Cloud op&mism in the Channel con&nues Cloud's impact on Channel in last 5 years
4 in 10 62% 30% 8% Posi8ve
Extremely posi8ve
channel firms expect their cloud-‐based revenue to grow by 15% or more in the coming year compared with 26% in 2013.
Mixed/Nega8ve
Source: CompTIA 5th Annual Trends in Cloud compu8ng Study
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Customers are ready for the Cloud
Customer demand for Cloud solu&ons Problems encountered when selling Cloud services 67% Customers demand outstripped capacity
48% 31% 15% Very high
High
Somewhat high
6% Low/Very Low
50% Lost Cloud sale to firm other than SP 17% Lost sale due to lack of specific solu8on
Source: CompTIA 5th Annual Trends in Cloud compu8ng Study
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Channel firms see Cloud business as more adrac&ve
58%
See higher growth
64%
See higher margins
Versus their established non-‐cloud products and services Source: CompTIA 5th Annual Trends in Cloud compu8ng Study
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Transforming your business to the Cloud Cloud Business
Cloud Transforma8on
Cloud Overview
Cloud Path
Key Cloud Drivers
People Resources
Channel Opportunity
Processes Revenue Profit
24
Transforming your business to the Cloud Cloud Business
Cloud Transforma8on
Cloud Overview
Cloud Path
Key Cloud Drivers
People Resources
Channel Opportunity
Processes Revenue Profit
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Top challenges experienced with business transforma&on 1. Cash flow and other financing challenges 2. Customer educa&on 3. Balancing exis&ng business opera&onal needs with new business 4. Hiring skilled staff to accommodate new lines of business 5. Need for new kinds of technical training 6. Need for sales and marke&ng training and repor&ng 7. Need to learn new financial metrics and accoun&ng schemes 8. Lack of business transforma&on roadmap
Source: CompTIA 4th Annual State of Channel: Base: n=350 IT channel firms
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What’s the rela&onship?
Broker (Refer) Buy (Resell) Build 27
Transforming your business to the Cloud Cloud Business
Cloud Transforma8on
Cloud Overview
Cloud Path
Key Cloud Drivers
People Resources
Channel Opportunity
Processes Revenue Profit
28
Transforming your business to the Cloud Cloud Business
Cloud Transforma8on
Cloud Overview
Cloud Path
Key Cloud Drivers
People Resources
Channel Opportunity
Processes Revenue Profit
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Iden&fy skill set gaps
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Closing the gaps
37% Hire
56% Train
37% Partner
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Not all gaps are people
Products
Marke&ng
Sales
Training
Systems
Support
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Transforming your business to the Cloud Cloud Business
Cloud Transforma8on
Cloud Overview
Cloud Path
Key Cloud Drivers
People Resources
Channel Opportunity
Processes Revenue Profit
33
Transforming your business to the Cloud Cloud Business
Cloud Transforma8on
Cloud Overview
Cloud Path
Key Cloud Drivers
People Resources
Channel Opportunity
Processes Revenue Profit
34
Improvements in marke&ng
Marke&ng Strategy
35
Sales team considera&ons
Buyers Sellers
36
Services changes
Service
37
Opera&onal focus
Opera&ons
38
Transforming your business to the Cloud Cloud Business
Cloud Transforma8on
Cloud Overview
Cloud Path
Key Cloud Drivers
People Resources
Channel Opportunity
Processes Revenue Profit
39
Transforming your business to the Cloud Cloud Business
Cloud Transforma8on
Cloud Overview
Cloud Path
Key Cloud Drivers
People Resources
Channel Opportunity
Processes Revenue Profit
40
Cloud model math review
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Transforming your business to the Cloud Cloud Business
Cloud Transforma8on
Cloud Overview
Cloud Path
Key Cloud Drivers
People Resources
Channel Opportunity
Processes Revenue Profit
42
Transforming your business to the Cloud Cloud Business
Cloud Transforma8on
Cloud Overview
Cloud Path
Key Cloud Drivers
People Resources
Channel Opportunity
Processes Revenue Profit
43
Key steps to take §
Be realis&c Taking on cloud services may have a short-‐term impact on your organiza8on’s revenue; it will also require you to make investments.
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Think repeatable Building prepackaged offerings is cri8cal for success.
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Understand the opera&ons implica&ons Sales goals must be rethought, repor8ng metrics should be adjusted and compensa8on models may need to be revisited.
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Embrace new marke&ng tac&cs Taking Build a plan focused on new customer acquisi8on, while including educa8on for exis8ng customers.
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Make a Commitment Appoint someone to lead the transforma8on.
And get started now! 44
Ques&ons?
?
Thank you.
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