The Cloud: Five Years Later
The Cloud: Five Years Later
Trends in Engaging Partners to Make the Great Leap Beth Vanni – Vice President, PartnerPath
Guests
Raja Sundaram
Doug Smith
VP, WW Services Partner Organization
VP, Partner Strategy and Operations
We Elevate the Impact of Your Partnering PartnerPath is the only company with a holis9c approach to designing, implemen9ng and automa9ng go-‐to-‐market models to increase impact and awareness
Reliant Tolerant Novice
Centric Accomplished
2008 Cloud market predictions
Cloud Leaders On-line marketplaces Role of the channel partner
2012
$25b by 2013
$241b by 2020
Salesforce.com Google
Infrastructure, SW development, public cloud apps., security, management
Public: - SFDC AppExchange - Apple AppStore
Public and private, from: - SW & HW vendors - Cloud brokers - Service providers & distis
Influencers/agent; Vendors delivery direct
Partners as: - Resellers - Brokers - Service providers - SaaS developers - Prof. Services delivery
ISV ecosystems just emerging
What Hasn’t Changed: Partners’ Cloud Concerns • Perception of reduced margins and cashflow • Loss of customer control • Loss of relationship (conflict) with vendors • Perceived lack of service revenue • Change in revenue recognition model • Transition workforce skill set • Selling to a different decision maker • Vendor cloud solution training may be lacking
Trends We See 1. Partner roles & engagement models 2. Enablement & business transformation 3. Talent development 4. Role of the service provider
Cloud SP Recruitment
Four Distinct Partner Roles “Builders”"
“ Providers”! “Developers”!
High
“Sellers”"
Apps. & Tools
Partner Revenue Opportunity
Infrastructure/ Network Professional Services Reselling/ white labeling Selling & Evangelism
Low
Degree of Partner Involvement & Investment
High
Engagement Models Sell technology to partners to build their own services; no direct delivery Deliver direct cloud: use partners as agents/ brokers
Sell to large Service Providers & help them recruit our channel partners Deliver direct cloud: use partners as resellers Source: PartnerPath 2012 State of Partnering Study
Vendors’ Expectations for Cloud Partners Resell the vendors’ cloud services Manage customer rela9onships Offer Pre-‐ and Post-‐Sales Services Refer leads to vendor for direct sale Sell services for large Service Providers Build SaaS applica9ons Q: What primary role(s) do you expect partners to play in sales and/or delivery of your cloud solution(s) (check top 2)
Source: PartnerPath 2012 State of Partnering Study
In the next 2 years, which partner roles do you think are most critical in building cloud market momentum?
How have you changed your engagement model in the last 2 years with cloud builders?
Trends We See 1. Partner roles & engagement models 2. Business transformation & enablement 3. Talent development 4. Role of the service provider
Business Transformation Change staffing model Retrain exis:ng staff Change revenue rec. model Sell to different decision makers Get deeper technical training Restructure professional services New investors/addi:onal funding Invest in automa:on to managed Build demo center 0%
10%
20%
30%
40%
50%
60%
Q: In the next two years, what significant changes do you expect to make to your business model to support cloud services? (choose top two) Source: PartnerPath: The Cloud’s Biggest Winners (preliminary)
Building Professional Services Capabilities Partners
Vendors
Managed infrastructure services Cloud or managed applica:ons as a service First line tech support Hardware break/fix repair Pre-‐sales assessments and architectures Post-‐sale product integra:on, tes:ng & 0%
10% 20% 30% 40% 50%
QV: Around which type of services are you most interested in cultivating partner delivery skills in 2012? QP: Which of these services are you most interested in offering or expanding in 2012? Source: PartnerPath 2011 Engaging the Services Partner study
Training & Specialization Top Partners’ Vendor Needs Reselling margins on total contract value Professional services mentoring or training on Specializa:on status in our partnering program Special sales training Ongoing commissions on monthly recurring revenue Priority access to field sales teams for co-‐selling Special technical training Agent fees for new business Availability of financial support during the business 0%
10%
20%
30%
40%
50%
Q: What are your biggest needs of your leading suppliers in support of the growth of your cloud practice? (choose top 2)
Source: PartnerPath 2012 State of Partnering Study
What role do you have in partners’ business transformation?
How are you helping partners enhance their professional services skills?
Trends We See 1. Partner roles & engagement models 2. Business transformation & enablement 3. Talent development 4. Role of the service provider
Finding the Right Talent Barriers to 2012 Overall Growth $50M+
$20-‐50M
$5-‐20M
Trends in Engaging Partners to Make the Great Leap Beth Vanni – Vice President, PartnerPath
Guests
Raja Sundaram
Doug Smith
VP, WW Services Partner Organization
VP, Partner Strategy and Operations
We Elevate the Impact of Your Partnering PartnerPath is the only company with a holis9c approach to designing, implemen9ng and automa9ng go-‐to-‐market models to increase impact and awareness
Reliant Tolerant Novice
Centric Accomplished
2008 Cloud market predictions
Cloud Leaders On-line marketplaces Role of the channel partner
2012
$25b by 2013
$241b by 2020
Salesforce.com Google
Infrastructure, SW development, public cloud apps., security, management
Public: - SFDC AppExchange - Apple AppStore
Public and private, from: - SW & HW vendors - Cloud brokers - Service providers & distis
Influencers/agent; Vendors delivery direct
Partners as: - Resellers - Brokers - Service providers - SaaS developers - Prof. Services delivery
ISV ecosystems just emerging
What Hasn’t Changed: Partners’ Cloud Concerns • Perception of reduced margins and cashflow • Loss of customer control • Loss of relationship (conflict) with vendors • Perceived lack of service revenue • Change in revenue recognition model • Transition workforce skill set • Selling to a different decision maker • Vendor cloud solution training may be lacking
Trends We See 1. Partner roles & engagement models 2. Enablement & business transformation 3. Talent development 4. Role of the service provider
Cloud SP Recruitment
Four Distinct Partner Roles “Builders”"
“ Providers”! “Developers”!
High
“Sellers”"
Apps. & Tools
Partner Revenue Opportunity
Infrastructure/ Network Professional Services Reselling/ white labeling Selling & Evangelism
Low
Degree of Partner Involvement & Investment
High
Engagement Models Sell technology to partners to build their own services; no direct delivery Deliver direct cloud: use partners as agents/ brokers
Sell to large Service Providers & help them recruit our channel partners Deliver direct cloud: use partners as resellers Source: PartnerPath 2012 State of Partnering Study
Vendors’ Expectations for Cloud Partners Resell the vendors’ cloud services Manage customer rela9onships Offer Pre-‐ and Post-‐Sales Services Refer leads to vendor for direct sale Sell services for large Service Providers Build SaaS applica9ons Q: What primary role(s) do you expect partners to play in sales and/or delivery of your cloud solution(s) (check top 2)
Source: PartnerPath 2012 State of Partnering Study
In the next 2 years, which partner roles do you think are most critical in building cloud market momentum?
How have you changed your engagement model in the last 2 years with cloud builders?
Trends We See 1. Partner roles & engagement models 2. Business transformation & enablement 3. Talent development 4. Role of the service provider
Business Transformation Change staffing model Retrain exis:ng staff Change revenue rec. model Sell to different decision makers Get deeper technical training Restructure professional services New investors/addi:onal funding Invest in automa:on to managed Build demo center 0%
10%
20%
30%
40%
50%
60%
Q: In the next two years, what significant changes do you expect to make to your business model to support cloud services? (choose top two) Source: PartnerPath: The Cloud’s Biggest Winners (preliminary)
Building Professional Services Capabilities Partners
Vendors
Managed infrastructure services Cloud or managed applica:ons as a service First line tech support Hardware break/fix repair Pre-‐sales assessments and architectures Post-‐sale product integra:on, tes:ng & 0%
10% 20% 30% 40% 50%
QV: Around which type of services are you most interested in cultivating partner delivery skills in 2012? QP: Which of these services are you most interested in offering or expanding in 2012? Source: PartnerPath 2011 Engaging the Services Partner study
Training & Specialization Top Partners’ Vendor Needs Reselling margins on total contract value Professional services mentoring or training on Specializa:on status in our partnering program Special sales training Ongoing commissions on monthly recurring revenue Priority access to field sales teams for co-‐selling Special technical training Agent fees for new business Availability of financial support during the business 0%
10%
20%
30%
40%
50%
Q: What are your biggest needs of your leading suppliers in support of the growth of your cloud practice? (choose top 2)
Source: PartnerPath 2012 State of Partnering Study
What role do you have in partners’ business transformation?
How are you helping partners enhance their professional services skills?
Trends We See 1. Partner roles & engagement models 2. Business transformation & enablement 3. Talent development 4. Role of the service provider
Finding the Right Talent Barriers to 2012 Overall Growth $50M+
$20-‐50M
$5-‐20M
