SaaS CEOs: Join SaaSMAX CEO Dina Moskowitz, host CompTIA's Vice President of Research and Market Intelligence, Tim Herbert, for an informative, no-fluff session about the $475B IT Channel and trends in their adoption and resale of Cloud & SaaS solutions.

1. SaaSMAX Special Event:
CompTIA - IT Channel Trends In Cloud/SaaS
December 18, 2013
Presenter:
Tim Herbert, VP Research & Market Intelligence, CompTIA
Host:
Dina Moskowitz, CEO, SaaSMAX

2. Agenda
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•
•
•
•
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Introduction
Size & Scope of IT Industry & IT Channel
Partnership Aspects & Framework
Trends in Cloud Growth, Demand, Adoption
Customer Challenges
Factors Influencing Channel Partner Decision to
Partner
SaaSMAX
The Ultimate SaaS Marketplace

3. About SaaSMAX
SaaSMAX connects B2B Cloud Apps
with the Reseller Channel and Buyers.
Resellers: Efficient app discovery, review
reseller program – new recurring
revenue opportunities!
App Vendors: Instant exposure to to the
U.S. IT Channel & Other Business
Advisors.
Announce special offers, SPIFFs, pricing
plans. Improve Reseller Recruitment.
Includes pro-active social/
email/webinar marketing activities &
personal introductions.
Build product awareness/brand
credibility. Create success stories!
No technical integrations required.
Includes multiple direct links &
transparency.
2013 © SaaSMAX Corp. All rights reserved.
SaaSMAX
The Ultimate SaaS Marketplace

4. About CompTIA
SaaSMAX
The Ultimate SaaS Marketplace
CompTIA, a not-for-profit trade association, dedicated
to serving IT companies and IT professionals
Education
Certification
Advocacy
Tim Herbert
VP Research & Market Intelligence
CompTIA
2013 © SaaSMAX Corp. All rights reserved.
Philanthropy

5. The IT Industry’s Path to $5 Trillion
The Ultimate SaaS Marketplace
+39% by 2020
Core IT Market
U.S.
SaaSMAX
World
50%
38%
37%
32%
Telecom Services
25%
18%
Wireless
Voice/Data 59%
41%
IT Services Hardware Software
Source: IDC
Fixed Voice/Data

6. IT Channel Overview
SaaSMAX
The Ultimate SaaS Marketplace
Traditional route to market flow through the IT channel
IT Product or
Service from
Vendor, OEM
For many IT
vendors, estimates
suggest 75% of their
business flows through
the IT channel.
IT Solution
Providers, VARs, M
SPs, Integrators, D
esigners, etc.
Distributor, V
AD, Retailer
Customer
The Potential Channel Universe:
~120,000
~350,000
~75,000
Firms with payroll (employer firms)
Self employed (do not have payroll)
Firms of some scale; commonly used as
the target channel universe among vendors

7. Most IT Channel Firms Are Hybrids, Offering a
Mix of Products and Services
SaaSMAX
The Ultimate SaaS Marketplace
IT solutions (e.g. combining elements…
64%
IT consulting services
61%
IT support or help desk services
52%
Web development
52%
Application development
50%
Managed services
49%
System/network integration services
46%
IT repair services/service center
41%
Telecom-related services
33%
ISV
25%
Managed print services
25%
Reseller / VAR
24%

8. The Partnership Aspect of Channel Partners
SaaSMAX
The Ultimate SaaS Marketplace
On average, channel partners belong to 8 vendor programs
43%
14%
% of channel partners
belonging to more than
15 vendor programs
% reporting a
NET GAIN in
vendor program
participation
in 2012

9. Cloud Business Models Framework for the Channel SaaSMAX
The Ultimate SaaS Marketplace
Build
Provide /
Provision
Enable /
Integrate
Manage /
Support
IaaS | PaaS | SaaS
Public | Private | Hybrid Clouds
Procure HW +
SW; add
expertise to
build cloud
Resell
Deployment
Break/Fix
White-label
Integration
Managed Services
Architecture /
Design
Hosting / Direct
to customer
Customization /
Development
Consulting | Advising | IT Solutions
Cloud Aggregation | Brokerage Services

10. Cloud Business Models Framework Cont.
Cloud Business Model Involvement
among Channel Partners
SaaSMAX
The Ultimate SaaS Marketplace
Channel Partner Assessment
of Their Cloud Offerings
Strategic
Opportunistic
Build
46%
37%
Provide/Provision
49%
38%
Enable/Integrate
53%
33%
Manage/Support
58%
32%
27%
Plan to 32%
provide
Currently
48%
provide
Build
34%
35%
61%
49%
51%
Provide/ Enable/Inte Manage/
Provision grate
Support

11. Cloud Growth Trajectory
SaaSMAX
The Ultimate SaaS Marketplace
Cloud Growth Opportunities
Expectations* Over Next 2 Years
Provide / Provision
segment
Enable / Integrate
segment
Build segment
32%
25%
26%
% of channel
partners expecting
significant growth
in cloud revenue
(15% +) over next
12 months
23%
SaaS Growth Forecast
Manage / Support
segment
20%
*From perspective of channel partners in CompTIA study
19.5% CAGR through 2016
25% in 2013
24% CAGR through 2016

12. Customer Demand for Cloud Solutions
Customer Demand for Cloud Solutions
Very High
Demand
High
Demand
Somewhat
High or Low
Demand
37%
Rating of Demand from
Channel Partner Perspective
The Ultimate SaaS Marketplace
Main Reasons to Recommend
Cloud over On-premise Solutions
 Customer desire to reduce complexity
22%
41%
SaaSMAX
63% NET
High
Demand
 Customer desire to increase
mobile/remote access to company
data
 Customer eyeing cost reductions /
price sensitive
Channel partners
with a cloud build
practice or a
provide/provision
practice are most
bullish on customer
demand for cloud
solutions.
 Customer business objectives best met
with cloud solutions
 Ability to on-ramp and scale new
features/services faster
 Customer has no in-house IT
management

13. Typical Stages of Customer Cloud Adoption
Experimentation
Non-Critical Use
Full Production
Currently Using Cloud Solution For:
59%
53%
49%
48%
46%
44%
41%
41%
41%
40%
38%
36%
34%
32%
31%
Storage/back-up
E-mail
Web presence
Disaster recovery/business continuity
Business productivity
Collaboration
CRM
Mobile application backend
Analytics or business intelligence
Communications (webinar, videoconferencing, IM, etc.)
Financial management
Expense management
HR management
Help desk
ERP
SaaSMAX
The Ultimate SaaS Marketplace
Optimization
Currently Using IaaS/PaaS
57%
53%
36%
Small Medium Large
firms firms firms

14. SaaSMAX
Customer Challenges in Using Cloud Solutions
The Ultimate SaaS Marketplace
Integration with existing systems
49%
Changes to IT policy
40%
Learning curve for cloud model
39%
Costs higher than originally estimated
Defining/justifying ROI
Painful transition from legacy systems
35%
30%
28%
Locked in to cloud provider
26%
Lower performance than expected
26%

15. Factors Influencing Channel Partner Decision to Join
and/or Leave Vendor Partner Program
Money
Issue
Strategic
Issue
Execution
Issue
•
•
•
•
Margins
Discounts / rebates
Cost of membership
Deal registration
• Product line / strategic fit
• Degree of conflict with vendor’s direct sales
• Volume requirements
• Ease or difficulty of doing business with
• Consistency of requirements
• Level and effectiveness of support
(marketing, training, pre/post sales)
60% or channel partners report evaluating their vendor
partner program participation quarterly or semi-annually.
SaaSMAX
The Ultimate SaaS Marketplace

16. Wrap-up Summary Points
Channel Universe: 500,000+ entities – they OWN millions of
customer relationships!
Channel Universe uses/purchases/resellers cloud solutions.
Channel partners belong to 8 vendor programs, 43%
participation gain in 2012
60% of Channel partners pro-actively evaluate participation in
vendor programs.
Influenced by Money, Strategy, Execution/Enablement.
63% of Channel Partner’s customers have Very High or High
demand for Cloud Solutions.
IF YOU’RE A B2B SAAS VENDOR,
MARKET TO AND LEVERAGE THE CHANNEL UNIVERSE!
SaaSMAX
The Ultimate SaaS Marketplace

17. Be A Part of Our Communities
Join SaaSMAX!
SaaS Vendors: Contact sales@saasmax.com for
a special discount code to join, mention CompTIA
Webinar in subject header.
IT Channel/Resellers/Buyers: Free to
join, www.SaaSMAX.com
Join CompTIA!
All SaaSMAX Members can join CompTIA for $150
($100 discount!), $100 off Security Trustmark and $100
off MSP Partner Trustmark.
http://www.saasmax.com/info/partners.html
SaaSMAX
The Ultimate SaaS Marketplace

18. Thank you!
Dina Moskowitz, CEO, SaaSMAX Corp.
Dina@SaaSMAX.com
Tim Herbert, VP Research & Market Intelligence, CompTIA
THerbert@comptia.org