BaaS Extended

Cloudy Channels DiscoveryLaurent Glaenzer

dimanche 28 juin 2009

Time to rethinkIT DistributionTime to rethinkIT Distribution


Understand the new channels dynamics

Diagnose your own distribution readiness


Agenda

8.45: Seminar Introduction

9.00: Attendees self introduction

9.30: Business as a Service presentation

10.30: Break

10.45: Distribution Readiness Workshop

12.00: Conclusions

12.30: Wrap Up


Business as a ServiceLaurent Glaenzer


Recruiting and Developing Channelsfor IT Companiesin EMEA and US


Features>200 years of cumulated experience in business/channel managementWide knowledge across IT (Hware, Software, Telecom & Services)

Europe, Middle-East & Africa, U.S. coverageIn depth local knowledge

Services designed for SaaS & Cloud CompaniesChosen by leading Companies

Celsius International: market and customer dataCompubase: channel data

Easy to turn on and off - Immediately operationalEasy to expand or contract

Result driven compensationThe right skills for the right job

Expertise

Coverage

SaaS/Cloud Expertise

Partnership

Flexibility

Cost effectiveness


€10B in 200940% CAGR75% of Companies use one application in SaaS

In 2010, 45% of Companies will spend > 25% of their IT budget on SaaS compared to 23% today



New Internet Bubble?

Massive & global opportunity

Very fast growth

Viral and ground-up expansion

Capital available for SaaS players

Many ill-defined business models


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 VirtualizationStorage VirtualizationAdvanced lease infrastructure (pay per use)

New Way of BuyingNew Way of Selling


Key Factors of SuccessCompetitive

value proposition

SustainableBusiness Model

World classGo to Market

CloudSaaS


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

20 %

80 %

Shifting Customers

SaaS/Cloudreplaces

existing applications(mostly on-premise)

NewCustomers

SaaS/Cloudis

a new application for the Company


Business Development

20082009

20102011

2012

SohoSME

Midmarket

LargeCompanies


Disruptive for Customers

Acknowledge the benefits for their own business compare to existing solution

Support the idea of an externally hosted model

Define what to do with existing assets (save waste)

Accept transition costs + workload

Check possibility of changing budget allocation from Capex to Opex

Deci

sion

Pat

tern


Disruptive for ITC Channels

Limited room for IT services (design)Revenues cannibalization riskLimited presence in SME

Long customer decision cyclesRequire market expertiseRevenues cannibalization risk

Require market expertiseLimited IT knowledgeLack of agility

IT Resellers

ServiceIntegrators

Telcos


Think beyond the box

Find two ways of connecting the 4 dots with 2 lines only


Think beyond the box

1

2


Converting Channels

CreatingChannels


Converting Channels

CreatingChannels


IT Resell Channels

Interested Not interested

Recurring revenues

Hype

Customer request

Defend installed base

Low revenues

Requires market expertise

Cannibalization risk

Established in the 80s to resell PCs and on-premise solutionsInvolved in middleware services (i.e: maintenance)Well known by IT and purchase departments


Motivate IT Resell Channel

Channel proposal to be at least as rewarding as infrastructure + on-premise software(ie: extra services)

Remuneration scheme to be rewarding at customer contract sign off

Identify business for them and coach their business development efforts


LNA

Infrastructure reseller (PC, Printers, on-premise software, networking)

Focus on service business (middleware, virtualization,...)

Created a SaaS Department to chase incremental business


Systems Integrators


IT Services (solution design, organizations)

Hosting/branding applications

Ready made solutionsLow revenues

Little room for servicesCannibalization risk

Established in the 70s with the emergence of ITInvolved in IT design solutions and organization issuesWell known by CEOs, CFOs and ITs


Motivate System Integrators

Channel proposal to be integrated in a broader service proposition to customers

Possibility to host application or customer data for the SI to propose outsourcing package

Solid technical interface


Example Cap Gemini

Pegasystem is a Business Process Management application provider

Has cooperated with CapGemini to launch a new «BPM as a Service» platform

Benefits for CapGemini: sell services and recurring revenues

Dedicated Cloud Computing department at CapGemini


Telcos


Portfolio extension

Aligned with business model

Data & application hosting

Requires IT knowledge

Disruptive for IT decision makers

Long time established CompaniesRadical portfolio extension since the Internet appearanceWell known by Purchase dpts and more and more IT


Motivate Telcos

Possibility for the Telco to host application or customer data (branding option)

Solid on-boarding program for sales & technical teams

Dedicated teams to do out-band prospection


Example BT

Porfolio expansion through a multi solutions offering

Data/Applications hosted by BT

Complementary to broadband internet offering


Converting Channels

CreatingChannels


Vertical Channel

Customer

VerticalChannel

Point ofpurchase

Service Provider

Need Identification


A Massive Presence

120 000 Companies*

IT CompaniesResellers

Integrators

BusinessServices

Companies

1 800 000 Companies**

(*) EMEA Source Compubase(**) Western Europe Source IDC


Services categories

Collaboration Sales & Marketing Manufacturing HRAccounting

Finance/Insurance

Business consultant

Marketing agencies

Accounting Companies

Marketing Agencies

Training Companies

Business Consultants

Outsourcing services


HR consultants






Non-Contractual Resellers

Role Compensation

Referral • introduce the product to customer• register the customer

• 10% discount• no upfront payment

Interface• introduce the product to customer• register the customer• invoice the customer

• 20% discount• no upfront payment

Facilitator

• introduce the product to customer• register the customer• invoice the customer• train the customer

• 30% discount• Online training• no upfront payment


Vertical Channel Platform


Business Services


Portfolio extension

Services opportunity

Recurring model

Credibility

Certification/ upfront contract

Complicated process

Technical involvement

Huge variety of Companies90% between 1-10 employees (many free-lance)In all businesses


Motivate Vertical Channel

Turnkey solutions

Hassle free resell platform

Direct customer support/hot line

Room for consulting services


Example Lixao

Communication / Web design agency

Mostly involved in communication design and web development for SMEs

Has added Emailing, data hosting, collaboration tools for their customers

Benefits: tracking their customer evolution and keep the conversation open


Example Accounting Accounting Company with 130 employees

Has never been involved in reselling IT equipment or software

Often asked advices by SMEs without IT management

Would consider including SaaS/Cloud solutions in their offering


Aggregators

ApplicationHosting

DataHosting

Servicing(billing)

Resellers

Customers

ApplicationsProviders

Aggregators Channel


Aggregators


Solid value proposition

Room for hosting application & data

Recurring model

No markup possibility

Mostly startup CompaniesVarious business modelsVarious services offering


Motivate Aggregators

Make sure there is room in your business models for them to provide: access to specific channels, customers or complete your service offering

One on one negotiation


Example RevevolConsulting Company assisting large Companies in their IT decisions

Becomes involved in reselling IT solutions with the Cloud Computing

Signed agreements with several SaaS/Cloud players including Google Aps

Just bid with Valeo for the installation of 30 000 users with Google offering


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 dedicationLimited capacity

IT Vendor Channel **** * Great coverageLimited mindshare

Integrators *** *** Good coverageGood push

Vertical Channel * **** Proactive demandNo supply chain


There is no perfect channel

There is only a perfect balance


Dealing with complexityExpanding 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

BusinessIdentification

ChannelFramework

ChannelHiring

ChannelRamp Up

ChannelManagement


Expansion Cost

0

75

150

225

300

150

300

50 801 Country

2 Countries

InHouse Lemon Operations


Expansion Time

0 3 6 9 12

12

3


Months


Channel Expertise Acquisition

0 1 2 3 Years


NOW


BenefitsImmediate access to Cloud/SaaS business management expertise when you need it

Immediate access to most European, Middle East and African countries

Immediate access to U.S.

Result driven & cost effective services

Led by IT Senior Business Managers


[email protected]@Lemon-Operations.com

[email protected]@Lemon-Operations.com

[email protected]


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