First for Cloud AWS partner webinar 1july2016

PowerPoint Presentation

01 July 2016AWS with First for CloudThe Partner Opportunity

Russell WarneAWS Sales and Product Specialist

[email protected] @russellhwarne https://za.linkedin.com/in/russellhwarne

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Market stats

To sum up what usually takes the first 15 minutes of a presentation on Cloud in about 10 seconds, just ask this man how big public cloud is. At $10b a year, there is more than enough usage in AWS for resellers to go after without fear that you are fishing where there are no fish. Just taking 1% of the global spend translates into R1.5 billion annually. AWS uptake in SA is also ramping up quickly as we move past the early adoption phase, edge projects, test and dev and born-in the cloud-businesses and see regular corporate and enterprise workloads move into cloud.

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Backup, Storage and ArchivingWeb Apps and HostingTemplate solutions from F4CMove LOB Apps to AWSAccess Analytics toolsAWS marketplaceMSPsRapid POCsTesting of expensive stuffOff the top of my head

The confirmation of the market size and details in these slides is mostly from my own experience, not from marketing materials or global trends and numbers, so there are no dead ends Im looking to help people get success quickly and early. If that sounds like Im suggesting you shouldnt put together new solutions on AWS here are a few I think are feasible as generic opportunities that most partners could access:

Backup, Storage and ArchiveWeb apps and hostingWe are building templated solutions for channel partners to offer fully tested and deployable solutions out of the box. The solutions are aimed where there will be the most pervasive uptake combined with the greatest customers needs.Similarly, numerous solutions on the AWS marketplace can be used to meet a market demand where a partner would otherwise need to go through a lengthy sales cycle that cloud be further complicated by the concern for a full on-premise project with associated dependencies.Enterprise and business Applications (SAP, Oracle, etc. included. Scalable performance, certified solutions, ability to provide DR and value-added services not currently accessible on-premise without significant capital investment)AnalyticsQuick POCsMobile, Dev etc.3

Customer needs - Gartner

Show me the money- Warne

We will deal with the partner program in more detail in one of the webinars, for now lets just focus on the market these are the two areas of opportunity currently, according to Gartner and according to my observations. Well start with Gartner, modified by the observations of customer needs I have seen working with AWS clients in South Africa.

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Gartner-ish

A summary of service patches that AWS users or companies considering AWS currently need.

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21st Century Cloud Art

4% Rocket Science90% Not So Rocket Science

These figures show uptake of broad AWS categories across a general cross section of clients.- The thing to notice is this: most of it is in the IaaS and Paas space, not in the high-end propeller head space. This means two things: There is a large opportunity to transition existing skills to meet the expectations of the cloud world (far easier than becoming code-gurus just to validate your role as a partner), and the IaaS and PaaS space is where we as a channel can have the greatest impact in cost optimisation, usage optimisation and the application of ITSM principles that we already know from the infrastructure space.6

AWS: Pure cloud resale not a viable business modelAWS' UK boss says commodity IaaS pricing means partners must provide consulting or technical value add as he pays tribute to importance of channelBut AWS is direct?

Before we get into the details of specific things you can do, I did say I was going to tell it like it is and not give you the sales pitch. So lets get the information out of the way upfront

This quote sums up a fairly blunt perspective on reselling cloud, if I can call it that. The new reality we all find ourselves in is that Cloud makes it easy for end-customers to consume what they want, in the amounts that they want, in any way they want. Its just how it is.

The good news is , Im here to tell you that you can relax, weve done all the groundwork and you will be able to present value to your clients that will get them interested, and thats potentially more profitable for you. We will help add the consulting value and facilitate your path to add technical value.

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The famous gorilla hug

And to top it off, AWS really do want to work with the channel partners. I thought Id use a gorilla pic here since AWS is often referred to as the big Gorilla of public cloud, right?

When I say AWS want to work with channel partners, its not lip service from the marketing department, its what I have experienced. They are also, like many vendors I guess, not able to cover the whole market and so having AWS relationships inside end-customers managed by resellers is something they want. 8

Cost OptimisationResource OptimisationManagementBetter ControlRubber n Road

So now to the key areas for channel partners to focus on to get traction quickly.

By the way did you notice the two Doors references in one slide?9

What to we do?Cost OptimisationRIs, Tiering, GuaranteesResource OptimisationRightsizing, TrackingManagement and other stuffGovernanceLocal invoice

Cost Optimisation can be achieved through RI commitments, Tiering discounts (volume discounts) and preferential pricing given to a distributor. How these are used is part of the partner engagement model, and will be broken down in more detail.Based on our experience, most people do not use these methods to reduce costs, so the opportunity is significant.Similarly with resource optimisation and rightsizing, many companies do not provision resources based on historic metrics or monitoring stats. So there is often overprovisioning and with some data and the application of rightsizing algorithms significant savings can be realised. Many resources can sit idle without user knowledge, storage can be wasted on old snapshots etc. This is another cost optimisation opportunity.In addition, we can help you to provide services to Check performance, drill down, create and automate reports, set alerts, and build out ITSM for the cloudLastly, we localise invoicing, which delivers significant benefit to local companies wanting to eliminate credit card usage and forex management, provides credit terms on qualification, improves audit trails and increases internal control and governance, and our BEE rating (level 2) helps companies improve their scorecards.

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What do you do?Decide on a model, or dont*

Decide to certify..or dont

Come to the Summit in CT!!

% of savings

Vanilla discount

Markup + Service* Do all 3?

You, in turn, use these feature to deliver benefit to the AWS users. This can be done in many ways, 3 of which cover most angles:

Provide cost optimisation to the client, and retain a % of the savings on either a fixed or negotiated contractProvide service to the client at a fixed or negotiated contract, offset against cost optimisation and the value or the services.Simply pass on a discount that we are able to facilitate for you.Or, let us help you run the analyses and see what works best per client or scenario. Its up to you!

To do this, you dont have to certify formally on AWS partner program. However certifying may help you validate your ability to deliver services and/or differentiate yourself against competitors.

Please remember, right now you CAN go to your customer and tell them they can buy AWS through you, and you can make a margin which you can keep or pass some on to get the client to move without doing any of these things. That is absolutely doable, I will go through that model with you, and it works in many cases.

However, doing it this way will leave you with relatively small profits, and many companies get a bit confused as to why they would introduce another layer in their AWS engagement. Youll get objections like I dont want to stop dealing with AWS themselves, I cant work without access to my AWS tools, I cant risk you seeing my data or accessing resources etc. etc. People act on their perceptions so whilst these questions may be unfounded, it can take some effort to change perception.

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Cost models in detail (using real world data)

Intro to Partner program

Intro to CloudHealth Stay tuned for our next episode

In the next webinar.12

01 July 2016Thank YouQuestions?

Russell WarneAWS Sales and Product Specialist

[email protected] @russellhwarne https://za.linkedin.com/in/russellhwarne

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