Early Lessons Learned in Deploying Cloud Infrastructure
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This is the presentation I gave during the Telco Cloud Partnering Strategies Event in Singapore (September 2013). http://www.telecomasia.net/content/telco-cloud-strategies-2013
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Early Lessons Learned in Deploying Cloud Infrastructure
- 1. Early Lessons Learned in Public & Private Cloud Deployment Cocoy J. Claravall VP – ITES Products & Services Globe Telecom, Philippines
- 2. Agenda Why We Are Here Ten Lessons to Remember Why We Are Optimistic Positioning for Success
- 3. Where else can we grow? What do we do, and when do we start?
- 4. IT Enabled Services, the clear adjacency for telcos in the B2B market … mirroring global trends due to commoditization (declining ARPU, etc.) and intense competition. 2011 – 2016 Nominal CAGR percent The telecom services business is big and stable, there is still an opportunity to expand albeit with slowing revenue growth … Thus we need to do this in order to maintain our momentum while investing for the future. Projected Business per Industry, YoY
- 5. Hosted Applications Managed ApplicationsDedicated Shared End-to-endBusinessApplicationServices Enterprise PublicIAAS Dedicated PrivateCloud Data Center COLO Services Customers buy IT Services in different ways. Hosted Platforms Managed PlatformsDedicated Shared LevelofProfessionalServiceswecanoffer World-class facilities, certified people, and processes OPTIMIZING INNOVATING DISRUPTING
- 6. 1. Get the right partners, good synergy is important. Learning from Steve and Woz
- 7. 2. Focus on the job, it’s hard to think blue sky when you are swimming the red ocean. The approach cannot be a BTW, with no focus.
- 8. To enrich lives through enabling solutions that accelerate the performance of business ecosystems using best in class IT capabilities, platforms and services. In our case, a new group had to be built, whose mission is:
- 9. Head Sales Engagement Product Marketing Professional Services Program Management Professional Services Software Design and Delivery Project Management Office Service Delivery Service Desk Service Management Service Operations Our IT Enabled Services Group
- 10. 3. It’s good to be fast, but sometimes you will stumble if you do not plan ahead.
- 11. 4. Building credibility takes time, take baby steps.
- 13. IAAS
- 14. 5. Creating a pipeline of customers is easy, winning deals is another story.
- 15. 6. It’s hard to swim upstream, but often that’s where you find the hidden opportunities. The Challenge: • Established global cloud players • Mom and Pop local players • Decision mostly based on the cheapest option The Alternative: • Focus on higher value managed IT services • Evangelize, evangelize, evangelize
- 16. 7. It’s not really all about cost, rather, focus on what the customer is trying to solve. “Jobs-to-be-done” theory “The basic idea is that people don’t go around looking for products to buy. Instead, they take life as it comes and when they encounter a problem, they look for a solution—and at that point, they’ll hire a product or service.” Clayton Christensen, Harvard Business School
- 17. 8. Traditional marketing is not enough, we need to advocate, and help the customer understand our message. Image c/o ZDNet
- 18. “Of the 207 respondents from outside the US, 56% were less likely to use US-based cloud providers after the revelations and 10% had cancelled plans to use American services. About a third said the revelations would not affect their provider choice.” 18 A recent article refers to a survey conducted by the Cloud Security Alliance, who surveyed 456 organizations around the world:
- 19. 9. Coming from a Telco has both its advantages and disadvantages. Perceived lack of Customer-centricity IT and Network Silos Perceived lack of Innovation Speed of Execution “Telco-minded” thinking Maximize strengths 1. Infrastructure 2. Customers 3. Scale 4. Coverage 5. Ability to offer end-to-end SLAs 6. Billing capabilities OVERCOME WEAKNESSES
- 20. 10. Segmentation is key, the best product will not sell in the wrong market. SOME HYPOTHESIS: • Large and mid-size local companies will be more open to subscribing to managed IT services • More savvy <40 year old decision makers more likely to go with a cloud solution • Non-IT LOB decision makers will grow in influence in how IT budgets are used • Increasing number of bids are looking for a cloud alternative • There are opportunities in highly regulated verticals, but we need to invest on a lot of pre-work and unconventional tactics.
- 21. This is just the beginning!
- 22. In the Philippines, customer adoption of cloud services is starting to increase but has to cross the chasm to gain traction … REVENUEGROWTH TIME EARLY MARKET BOWLING ALLEY TORNADO MAIN STREET TOTAL ASSIMILATION Total Cloud industry revenue growth @ 57% p.a. IAAS in 2016 at 5.8B (McKinsey) IAAS demand in 2017 range between 600M to 1B pesos (IDC & Gartner) THECHASM Globe launched In 2011
- 23. Philippine Digital Strategy (2011 to 2016) Four Focus Areas: • ICT Infrastructure • Cyber Services • Human Capital Development • e-Governance
- 24. LOCAL / REGIONAL GLOBAL The Companies We Work With Today
- 25. Why We Believe We Are Poised to Win • A focused and dedicated organization • A skilled, certified, set of people and processes • A scalable, world-class infrastructure that’s local • A set of key partnerships with the leaders in the industry • A clear direction of where we want to be
- 26. “Taking the complexity out of IT.” Cocoy J. Claravall fjclaravall@globe.com.ph
Editor's Notes
- Talk about how we are investing for the future, with core revenues flattening and the Phils crossing over 100% mobile penetration. Broadband has a lot of room to grow though, but for how long? And at what price?2 years ago we started to dabble in Cloud, more so as a sideline rather than a primary initiative.
- We are ALL in the same boat!
- Talk about Disrupting Ecosystems as the end game, that global cloud providers cannot easily executeManaged IT services require local
- Who watched or read the biography of Steve Jobs?Start with giving parallels on the relationship of Jobs & Woz, why their partnership worked.They must have an equally good reason why they want to partner with us, and vice versa.Talk about experience with Asticom (VMWare-based) and Morph (Openstack) partnership.The most attractive financial offer is not always the best. Check the capability of the partner, their ability to scale when additional resources are needed.Microsoft’s move to give Office 365 for free to their Enterprise clients is not a good partner arrangement.Talk about Asticom and how we ended up buying the infrastructure.Similar case with Morph when we entered a partnership model then they changed the structure because they are a startup and this affected our ability to execute in the public cloud.
- Talk about the reorg
- Talk about in depth number of people, qualifications,etc
- Talk about our initial “failures”, running SAP in a “commodity hardware. Also our experience in the AC BaaS case when we sold the solution which was more than they needed, and now they are asking for many other things to be done which was beyond scope. If we had planned earlier the approach, all terms, scope, and conditions would have been clear.End to end SLA’s need to be determined ahead, before offering We always customize the solution (which vendor, what technology to use in backup for example) in the beginning, rather than standardizing on the approach.
- Talk about our Professional Services organization, and the inventory of all their certifications.Not just that, but also our data center certifications, and the big customers we initially closed like Cebu Pacific and ICTSI.
- Talk about the flavor of the month conceptThe need to hire Sales Consultants/Specialists, vs Relationship ManagersSpecialized skillset in selling IT is very different from Core. You get all the awareness and excitement, but follow through and closure is the most difficult. You need the right presales expertise, engineering expertise, selling/TCO mindset, etc.Tell the story of how some deals were lost – STI, while talking about the reverse – 2GO.Typical sales people gravitate toward those activities that will be easiest to sell, install, deliver and bill.
- Hackathons to get developers onboardAsiaCloud participationTrial AccountsDiagnostic Business Consulting – TCO approach
- Presales is key.Customers want to innovate with cloud.
- We need Cloud Ninja’s, a startup approach to marketing, non-traditional. Happy customers are one example of good marketing. We also needed to use the services ourselves so we can tell people our own experience.Filipino CIOs still think is a traditional manner, so we have to educate them, especially on the TCO. Promoting the Philippines also in ACCA is part of the evangelization.Events like Floods also are a good marketing oppty to pitch DR and BaaS
- Talk about the Snowden report, hacking of the US meetings in New York
- End-to-end SLAs, having the telco do everything, good if they agree to higher prices.Capex to Opex traditionally are telco practicesExecution for Telcos traditionally has been slow due to very stringent processes – give example on delays with SaaS onboarding
- The early adopters speak to the Innovators as they are both technically oriented. Technology is king.The late majority speak to the early majority as they are both interested in the economic partBut the Early Majority does NOT speak to the Earlyadopters
- GDP growth highest in ASEAN, 1st semester at par with China
- Symantec, McAfee, Cisco, IBM, Hitachi