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Cloud Computing Impacts on Channel
Personal  Computers Cloud Computing 80s 90s 00s 10s 20s History of IT Channels  Internet
Solutions as an.... UTILITY
UTIL IT Y becomes VERSATIL IT Y One Need One App
[object Object],[object Object],[object Object],In 2010,  45% of Companies will spend  > 25% of their IT budget on SaaS  compared to 23% today
 
New Internet Bubble? ,[object Object],[object Object],[object Object],[object Object],[object Object]
Business as a Service Software as a Service Infrastructure as a Service Business as a Service Any application licensed for its usage on demand (mostly over the web) Server Virtualization Storage Virtualization Advanced lease  infrastructure (pay per use) Grid Computing New Way of Buying New Way of Selling
Customer View Pros Cons Lower cost Pay as you go Zero Capex No or minimal IT resources Faster time to use Flexibility/scalability Higher dependency on provider Security/confidentiality Design limitation Performance Offline access
SaaS/Cloud customers Shifting  Customers SaaS/Cloud replaces  existing applications (mostly on-premise) New Customers SaaS/Cloud is a new application  for the Company
Disruptive for Customers ,[object Object],[object Object],[object Object],[object Object],[object Object],Decision Pattern
Disruptive for ITC Channels ,[object Object],[object Object],[object Object],Limited room for IT services (design) Revenues cannibalization risk Limited presence in SME Require market expertise Limited IT knowledge Lack of agility IT Resellers & Distributors Service Integrators Telcos
Purpose Are common  IT Business Rules  applying to  Cloud Computing?
IT Distribution today No infrastructure to sell No service to sell No supply chain IT/Telecom Resellers VARs/Integrators Distributors Cloud Computing
Time to rethink IT Distribution Time to rethink IT Distribution
Key Factors of Success Competitive  value proposition Sustainable Business Model World class Go to Market Cloud SaaS
Converting  Channels Creating Channels
Converting  Channels Creating Channels
Motivate IT Resell Channel ,[object Object],[object Object],[object Object]
Motivate System Integrators ,[object Object],[object Object],[object Object]
Motivate Telcos ,[object Object],[object Object],[object Object]
Example BT ,[object Object],[object Object],[object Object]
Converting  Channels Creating Channels
Vertical Channel Customer Vertical Channel Point of purchase Service  Provider Need  Identification
A Massive Presence 120 000 Companies* IT Companies Resellers Integrators Business Services  Companies 1 800 000 Companies** (*) EMEA Source Compubase (**) Western Europe Source IDC
Services categories Collaboration Sales & Marketing  Manufacturing HR Accounting Finance/Insurance Business consultant Marketing agencies Accounting Companies Marketing Agencies Training Companies Business Consultants Outsourcing services Business Consultants HR consultants Business Consultants Accounting Companies Accounting Companies Business Consultants
Hybrid Model Direct Contractual Channel Non-Contractual Channel Resellers Resellers + Services Integrators/ OEM Referrals Interface Facilitator
Non-Contractual Resellers Role Compensation Referral ,[object Object],[object Object],[object Object],[object Object],Interface ,[object Object],[object Object],[object Object],[object Object],[object Object],Facilitator ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Vertical Channel Platform
Business Services ,[object Object],[object Object],[object Object],Interested Not interested Portfolio extension  Services opportunity Recurring model Credibility Certification/ upfront contract Complicated process Technical involvement
Motivate Vertical Channel  ,[object Object],[object Object],[object Object],[object Object]
Aggregators Application Hosting Data Hosting Servicing (billing) Resellers Customers Applications Providers Aggregators Channel
Aggregators ,[object Object],[object Object],[object Object],Interested Not interested Solid value proposition Room for hosting application & data Recurring model No markup possibility
Motivate Aggregators  ,[object Object],[object Object]
Example Revevol ,[object Object],[object Object],[object Object],[object Object]
The new channel map Converted Channels Direct Play Vertical Channels Aggregators IT Channels System Integrators VARs Telcos OEMs Direct Consultants Accountants Marketing Agencies Application Hosting Data Hosting SaaS Resellers/Dist
Don’t push  on a rope
Demand Generation Demand Fulfilment
Fulfilment vs Generation Demand Fulfilment Generation Comments IT Vendor direct ***** ***** Full dedication Limited capacity IT Vendor Channel **** * Great coverage Limited mindshare Integrators *** *** Good coverage Good push Vertical Channel * **** Proactive demand No supply chain
There is no perfect channel There is only a perfect balance
Dealing with complexity Expanding to Europe Expanding to US How to compensate  the channel? Converting channel or creating channels? How to get  channel loyalty? How to reach resellers? How to get reseller commitment? How to train resellers? How to follow up their business plan? How to negotiate a contract? How to build a platform for vertical resellers? Direct or Indirect?
Cloudy Channels
5 Step Process Business Identification Channel Framework Channel Recruitment Channel Ramp Up Channel Management
Recruiting   and   Developing   Channels for   IT Companies in   EMEA  and  US
Features >200 years of cumulated experience in business/channel management Wide knowledge across IT (Hware, Software, Telecom & Services) Europe, Middle-East & Africa, U.S. coverage In depth local knowledge Services designed for SaaS & Cloud Companies Chosen by leading Companies Celsius International: market and customer data Compubase: channel data Easy to turn on and off - Immediately operational Easy to expand or contract Result driven compensation The right skills for the right job Expertise Coverage SaaS/Cloud Expertise Partnership Flexibility Cost effectiveness
Benefits ,[object Object],[object Object],[object Object],[object Object],[object Object]
Thanks! [email_address]
 
Also for IT Channel Sales Cycle Short Term Revenues What ITaaS brings LONG LOW What IT Channel like SHORT HIGH
Vertical vs Horizontal Customer Vertical Channel Horizontal Channel I know what I need I don’t know what I need ,[object Object],[object Object],[object Object],[object Object]

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Rethinkyourchannel 100112041223 Phpapp01

  • 2. Personal Computers Cloud Computing 80s 90s 00s 10s 20s History of IT Channels Internet
  • 4. UTIL IT Y becomes VERSATIL IT Y One Need One App
  • 5.
  • 6.  
  • 7.
  • 8. Business as a Service Software as a Service Infrastructure as a Service Business as a Service Any application licensed for its usage on demand (mostly over the web) Server Virtualization Storage Virtualization Advanced lease infrastructure (pay per use) Grid Computing New Way of Buying New Way of Selling
  • 9. Customer View Pros Cons Lower cost Pay as you go Zero Capex No or minimal IT resources Faster time to use Flexibility/scalability Higher dependency on provider Security/confidentiality Design limitation Performance Offline access
  • 10. SaaS/Cloud customers Shifting Customers SaaS/Cloud replaces existing applications (mostly on-premise) New Customers SaaS/Cloud is a new application for the Company
  • 11.
  • 12.
  • 13. Purpose Are common IT Business Rules applying to Cloud Computing?
  • 14. IT Distribution today No infrastructure to sell No service to sell No supply chain IT/Telecom Resellers VARs/Integrators Distributors Cloud Computing
  • 15. Time to rethink IT Distribution Time to rethink IT Distribution
  • 16. Key Factors of Success Competitive value proposition Sustainable Business Model World class Go to Market Cloud SaaS
  • 17. Converting Channels Creating Channels
  • 18. Converting Channels Creating Channels
  • 19.
  • 20.
  • 21.
  • 22.
  • 23. Converting Channels Creating Channels
  • 24. Vertical Channel Customer Vertical Channel Point of purchase Service Provider Need Identification
  • 25. A Massive Presence 120 000 Companies* IT Companies Resellers Integrators Business Services Companies 1 800 000 Companies** (*) EMEA Source Compubase (**) Western Europe Source IDC
  • 26. Services categories Collaboration Sales & Marketing Manufacturing HR Accounting Finance/Insurance Business consultant Marketing agencies Accounting Companies Marketing Agencies Training Companies Business Consultants Outsourcing services Business Consultants HR consultants Business Consultants Accounting Companies Accounting Companies Business Consultants
  • 27. Hybrid Model Direct Contractual Channel Non-Contractual Channel Resellers Resellers + Services Integrators/ OEM Referrals Interface Facilitator
  • 28.
  • 30.
  • 31.
  • 32. Aggregators Application Hosting Data Hosting Servicing (billing) Resellers Customers Applications Providers Aggregators Channel
  • 33.
  • 34.
  • 35.
  • 36. The new channel map Converted Channels Direct Play Vertical Channels Aggregators IT Channels System Integrators VARs Telcos OEMs Direct Consultants Accountants Marketing Agencies Application Hosting Data Hosting SaaS Resellers/Dist
  • 37. Don’t push on a rope
  • 39. Fulfilment vs Generation Demand Fulfilment Generation Comments IT Vendor direct ***** ***** Full dedication Limited capacity IT Vendor Channel **** * Great coverage Limited mindshare Integrators *** *** Good coverage Good push Vertical Channel * **** Proactive demand No supply chain
  • 40. There is no perfect channel There is only a perfect balance
  • 41. Dealing with complexity Expanding to Europe Expanding to US How to compensate the channel? Converting channel or creating channels? How to get channel loyalty? How to reach resellers? How to get reseller commitment? How to train resellers? How to follow up their business plan? How to negotiate a contract? How to build a platform for vertical resellers? Direct or Indirect?
  • 43. 5 Step Process Business Identification Channel Framework Channel Recruitment Channel Ramp Up Channel Management
  • 44. Recruiting and Developing Channels for IT Companies in EMEA and US
  • 45. Features >200 years of cumulated experience in business/channel management Wide knowledge across IT (Hware, Software, Telecom & Services) Europe, Middle-East & Africa, U.S. coverage In depth local knowledge Services designed for SaaS & Cloud Companies Chosen by leading Companies Celsius International: market and customer data Compubase: channel data Easy to turn on and off - Immediately operational Easy to expand or contract Result driven compensation The right skills for the right job Expertise Coverage SaaS/Cloud Expertise Partnership Flexibility Cost effectiveness
  • 46.
  • 48.  
  • 49. Also for IT Channel Sales Cycle Short Term Revenues What ITaaS brings LONG LOW What IT Channel like SHORT HIGH
  • 50.

Hinweis der Redaktion

  1. History of IT Channels can be split in 3 major waves: - 80s: PC computers rise IT democratization and need for partners to cover a very wide market to resell heterogenous solutions to resell additional services - 90s: Internet new business models web 2.0 / Amazon - 10s: Cloud Computing The emergence of the third channel revolution with the Cloud Computing What are the 2 factors that makes Cloud Computing a revolution for the channel?
  2. First one: Cloud Computing distributes IT like an utility. Think of Electricity or water. Just a plug to install. No need for infrastructure anymore.
  3. Second One: Because there is no infrastructure any longer, the applications are pretty much ready made and addressing the end users directly for their own need, as opposed to the IT.
  4. This is partly why when the first Cloud-SaaS vendors went to talk - to IT resellers and tell them they don’t have infrastructure to resell they found little interest - same with the VARs/Integrators with the fact they don’t have much service to resell - to the distributors alike when they say they don’t have supply chain to worry about This is why Companies such as Microsoft, Oracle, SAP, IBM and most of the others have had very difficult times in trying to recruit active resellers in the Cloud.