Are business rules for Cloud Computing the same than for traditional IT?

1. Business as a Service
Laurent Glaenzer

2. Audience
Business executive VPs/Directors/
Managers
Working at an IT vendor
that sells or intents to sell
Software as a Solution (SaaS) or
Infrastructure as a Solution (IaaS)
meaning...
most of the IT industry!

3. Purpose
Are common
IT Business Rules
applying to
cloud computing?

4. IT Vendor
is a fake Company
representing
Any hardware, software, telecom or service Company
that sells SaaS or IaaS to customers
through an indirect channel

5. Vitaminize Your Channel
Lemon Operations recruits and develops
channel for IT Companies
200 years of cumulated experience in channel management in
the IT (hardware, software, service, telecom)
We don’t just tell you what works...we do it for you!
We love getting paid on commission
www.lemon-operations.com

6. Business as a Service
Software as a Service Infrastructure as a Service
Server Virtualization
Any application
Storage Virtualization
licensed for its usage
Advanced lease
on demand (mostly
infrastructure (pay per use)
over the web)
Business as a Service
New Way of Buying
New Way of Selling

7. IT aaS is Disruptive
New data hosting
New application hosting
Higher Level
New applications
of
New application usage
Dependency
New funding model
New accounting rules
New infrastructure
New IT architecture
New organization

8. Also for IT Channel
Short Term
Sales Cycle
Revenues
LONG LOW
What ITaaS brings
SHORT HIGH
What IT Channel like

9. Time to rethink
IT Distribution

10. Introducing Vertical Channel
Need
Identification
Vertical
Channel
Point of Service
purchase Provider
Customer

11. Statistics
IT Companies Business
Resellers Services
Integrators Companies
120 000 Companies* 1 800 000 Companies**
(*) EMEA Source Compubase
(**) Western Europe Source IDC

12. Non-Contractual Resellers
Role Compensation
• introduce the product to customer • 10% discount
Referral
• register the customer • no upfront payment
• introduce the product to customer • 20% discount
• register the customer
Interface
• no upfront payment
• invoice the customer
• introduce the product to customer
• 30% discount
• register the customer
• Online training
Facilitator
• invoice the customer
• no upfront payment
• train the customer

13. Vertical Channel Platform

14. Hybrid Model
Direct
Contractual Channel Non-Contractual Channel
Resellers Referrals
Resellers + Services Interface
Integrators/ OEM Facilitator

15. Vertical vs Horizontal
• Additional Revenues
I don’t know
• No supply chain
what I need
Vertical
Channel
• Recurring Revenues
Customer
• Good margin
I know
what I need Horizontal
Channel

16. Fulfilment vs Generation
Demand Fulfilment Generation Comments
Full dedication
***** *****
IBM direct
Limited capacity
Great coverage
**** *
IBM Channel
Limited mindshare
Good coverage
*** ***
Integrators
Good push
Proactive demand
* ****
Vertical Channel
No supply chain

17. Don’t push
on a rope

18. 5 Step Process
Business Channel Channel Channel Channel
Identification Framework Hiring Ramp Up Management

19. Thanks!
Laurent.Glaenzer@Lemon-Operations.com