Ingram Micro Cloud Telco Strategy
Telco Strategy Perry King April 9, 2013
Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission.
1
121101_
Ingram Micro North America
Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission.
121101_2
US Telecom Revenue Total US fixed network revenue projected at $176 Billion in 2012 Fixed network voice projected at $132 Billion in 2012 Broadband projected at $38 Billion Television projected at $6 Billion
Additional revenue VoIP projected at $14B in 2012 expanding to $19B in 2015 Fixed network broadband projected to be $46B by 2015 Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission.
121101_3
VAR-Agent Partnerships Cloud computing accelerating convergence of IT and Telecom Telecom services becoming entwined with network deployments 8 in 10 VAR’s report having at least one agent partnership Though they are tactical none are permanently guaranteed Source: Channel Partners and CompTIA Agent-VAR Partnering Survey, January 2013 Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission.
121101_4
The Telecom Fog
Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission.
121101_5
Navigating the Fog OPPORTUNITY Ideal time to enter the telecom market and bridge the IT – Telecom gap IM Cloud division already structured to support sales, order processing and commissioning
PORTFOLIO Ingram Micro will do the due diligence so you don’t have to Will use the same selection criteria with carriers that we use cloud vendors
Having conversations with top Master Agents Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission.
121101_6
Cable Network Systems have both Hybrid Fiber Coax (HFC) and Fiber Network Used for TV, Voice, Internet and Private Network
Boundaries HFC network limited by predefined boundaries Fiber network does not always have same limitations
Off Net Options Most networks support Type II Leased Line Loop cost can be high
Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission.
121101_7
Complete Product Offering Data Services HFC Business Internet Speeds up to 100Mbps/10Mbps
Ethernet Speeds from 256Kbps to 1GB Point-to-Point, Hub-and-Spoke, Multipoint
Optical Internet DS-1 to DS-3 – 1.5Mbps to 45Mbps for small to large companies
Optical Transport OC-1 to OC-12 – 51Mbps to 600Mbps for campus or server farm connections OC-24 to OC-48 – 1.2Gbps to 2.4Gbps for backbone
Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission.
121101_8
Complete Product Offering Voice Services Digital Telephone POT’s lines offering standard features
PRI over HFC Competitive Pricing due to no loop cost
T1/PRI Trunking Fiber/HiCap Network
SIP Trunking
Cable TV Business TV Bars, Restaurants, Fitness Centers, Stores
Private TV Medical Offices, Car Dealerships, Day Care Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission.
121101_9
Clearing the Fog CABLE COMPANIES
MOVING FORWARD
Working together as a “Single National Vendor”
Have an agreement in place with Time Warner Cable
Non-competitive Collective with a national footprint
Comcast, Charter, Cox, Optimum
Creating programs to train and support Ingram Micro VAR’ community
Primary focus for SMB will be with the Cable Companies
Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission.
121101_10
Strategic Partners CenturyLink chosen’s as primary provider of multi-protocol line switching (MPLS) service for Ingram Micro’s Hosted Collaboration Solution (HCS) Agreement in place that provides very competitive pricing for Ingram Micro’s VAR’s and their customer
RingCentral UC for Small to Mediums size business Supports both US and Canada
Cisco is a major investor Very competitive commissions
Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission.
121101_11
Sales and Commissioning
Carrier Sets end price, bills and collects from customer
Referral Sales Process End customer signs contract with Carrier Carrier bills end customers Carrier collects payment
Ingram Micro Pays Agent
Commission
Pays
Carrier pays Ingram Micro 10% to 20% of MRC, or Fixed Upfront
Master Agent Bills
Residual Commissions
Commission
VAR
Split commission with Agent Fixed and Tiered Split Customer Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission.
121101_12
Agent Tiers
Carrier
Tier I Agent – 70/30 Split Has experience/personnel selling carrier services Does not need sales support Provides clean order for processing
Tier III Referral Partner – 1 Time Payment Referral business Limited, or no experience, selling carrier services Does not want to be involved in the process
Fixed Commission by Carrier Carrier sets agent commission level Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission.
Commission
Commission
Pays
Master Agent Bills
Tier II Agent – 60/40 Split (Entry Level) Limited experience, commit to selling services Needs sales support to complete deal Ingram completes quote and paperwork, VAR gets signatures
Sets end price, bills and collects from customer
VAR
Customer 121101_13
Commission Examples
Carrier Sets end price, bills and collects from customer
Residual Split
Fixed Upfront + Residual Upfront Multiplier: MRC Residual %: Customer MRC: Agent Upfront $: Monthly Residual:
3x MRC 5% of MRC $2,000 $6,000 $100
Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission.
Commission
Master Agent Commission
Pays
18% of MRC 60%, or 11% of MRC $2,000 $216
Bills
Master Agent %: Agent Tier II %: Customer MRC: Monthly Residual:
VAR
Customer 121101_14
Commissioning Ingram Micro will process payments to VAR Supports both residual and upfront payment options Residual commission rates determined by provider
Two payment options Monthly check Credit Ingram Micro account Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission.
121101_15
Where Are We Now? CenturyLink Supplying MPLS Service for HCS
RingCentral Transactional with Deals Closed!!
Time Warner Cable Going through on-boarding process Entering Pilot Phase and looking for VAR’s to participate
Stay Tuned for Announcements of New Partners!! Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission.
121101_16
Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission.
17
121101_
Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission.
1
121101_
Ingram Micro North America
Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission.
121101_2
US Telecom Revenue Total US fixed network revenue projected at $176 Billion in 2012 Fixed network voice projected at $132 Billion in 2012 Broadband projected at $38 Billion Television projected at $6 Billion
Additional revenue VoIP projected at $14B in 2012 expanding to $19B in 2015 Fixed network broadband projected to be $46B by 2015 Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission.
121101_3
VAR-Agent Partnerships Cloud computing accelerating convergence of IT and Telecom Telecom services becoming entwined with network deployments 8 in 10 VAR’s report having at least one agent partnership Though they are tactical none are permanently guaranteed Source: Channel Partners and CompTIA Agent-VAR Partnering Survey, January 2013 Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission.
121101_4
The Telecom Fog
Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission.
121101_5
Navigating the Fog OPPORTUNITY Ideal time to enter the telecom market and bridge the IT – Telecom gap IM Cloud division already structured to support sales, order processing and commissioning
PORTFOLIO Ingram Micro will do the due diligence so you don’t have to Will use the same selection criteria with carriers that we use cloud vendors
Having conversations with top Master Agents Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission.
121101_6
Cable Network Systems have both Hybrid Fiber Coax (HFC) and Fiber Network Used for TV, Voice, Internet and Private Network
Boundaries HFC network limited by predefined boundaries Fiber network does not always have same limitations
Off Net Options Most networks support Type II Leased Line Loop cost can be high
Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission.
121101_7
Complete Product Offering Data Services HFC Business Internet Speeds up to 100Mbps/10Mbps
Ethernet Speeds from 256Kbps to 1GB Point-to-Point, Hub-and-Spoke, Multipoint
Optical Internet DS-1 to DS-3 – 1.5Mbps to 45Mbps for small to large companies
Optical Transport OC-1 to OC-12 – 51Mbps to 600Mbps for campus or server farm connections OC-24 to OC-48 – 1.2Gbps to 2.4Gbps for backbone
Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission.
121101_8
Complete Product Offering Voice Services Digital Telephone POT’s lines offering standard features
PRI over HFC Competitive Pricing due to no loop cost
T1/PRI Trunking Fiber/HiCap Network
SIP Trunking
Cable TV Business TV Bars, Restaurants, Fitness Centers, Stores
Private TV Medical Offices, Car Dealerships, Day Care Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission.
121101_9
Clearing the Fog CABLE COMPANIES
MOVING FORWARD
Working together as a “Single National Vendor”
Have an agreement in place with Time Warner Cable
Non-competitive Collective with a national footprint
Comcast, Charter, Cox, Optimum
Creating programs to train and support Ingram Micro VAR’ community
Primary focus for SMB will be with the Cable Companies
Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission.
121101_10
Strategic Partners CenturyLink chosen’s as primary provider of multi-protocol line switching (MPLS) service for Ingram Micro’s Hosted Collaboration Solution (HCS) Agreement in place that provides very competitive pricing for Ingram Micro’s VAR’s and their customer
RingCentral UC for Small to Mediums size business Supports both US and Canada
Cisco is a major investor Very competitive commissions
Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission.
121101_11
Sales and Commissioning
Carrier Sets end price, bills and collects from customer
Referral Sales Process End customer signs contract with Carrier Carrier bills end customers Carrier collects payment
Ingram Micro Pays Agent
Commission
Pays
Carrier pays Ingram Micro 10% to 20% of MRC, or Fixed Upfront
Master Agent Bills
Residual Commissions
Commission
VAR
Split commission with Agent Fixed and Tiered Split Customer Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission.
121101_12
Agent Tiers
Carrier
Tier I Agent – 70/30 Split Has experience/personnel selling carrier services Does not need sales support Provides clean order for processing
Tier III Referral Partner – 1 Time Payment Referral business Limited, or no experience, selling carrier services Does not want to be involved in the process
Fixed Commission by Carrier Carrier sets agent commission level Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission.
Commission
Commission
Pays
Master Agent Bills
Tier II Agent – 60/40 Split (Entry Level) Limited experience, commit to selling services Needs sales support to complete deal Ingram completes quote and paperwork, VAR gets signatures
Sets end price, bills and collects from customer
VAR
Customer 121101_13
Commission Examples
Carrier Sets end price, bills and collects from customer
Residual Split
Fixed Upfront + Residual Upfront Multiplier: MRC Residual %: Customer MRC: Agent Upfront $: Monthly Residual:
3x MRC 5% of MRC $2,000 $6,000 $100
Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission.
Commission
Master Agent Commission
Pays
18% of MRC 60%, or 11% of MRC $2,000 $216
Bills
Master Agent %: Agent Tier II %: Customer MRC: Monthly Residual:
VAR
Customer 121101_14
Commissioning Ingram Micro will process payments to VAR Supports both residual and upfront payment options Residual commission rates determined by provider
Two payment options Monthly check Credit Ingram Micro account Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission.
121101_15
Where Are We Now? CenturyLink Supplying MPLS Service for HCS
RingCentral Transactional with Deals Closed!!
Time Warner Cable Going through on-boarding process Entering Pilot Phase and looking for VAR’s to participate
Stay Tuned for Announcements of New Partners!! Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission.
121101_16
Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission.
17
121101_
