Making Money in the Cloud Part 3: Essential Steps to Build a Cloud Service Practice

MSP Best Practices

Making Money in the Cloud | Essential Steps to Build a Cloud Service Practice (Part 3 of 3)

March 4, 2014

Agenda

• Introductions • Recap of Parts 1 & 2

– Understanding the market opportunity– Internal Readiness

• Cloud service pricing strategies• Marketing campaigns to promote your new Cloud

services effectively• Aligning sales compensation with revenue goals• Common pitfalls and mistakes made by MSPs when

introducing Cloud services• Q&A

You could win!

Winner drawn at end of session

About Kaseya

• Founded in 2000• Over 10,000 customers and a presence in over 20 countries• Award-winning IT systems management software offered as SaaS

and on-premise• Serving customers across industries including government, military,

retail, healthcare, education, financial, and more• Serving both Managed Service Providers and IT departments• Gartner Magic Quadrant 2013 – Visionary: Client Management Tools• New management team and backing from Insight Venture Partners

in 2013• New acquisitions:

– Rover Apps for BYOD – Zyrion Traverse for Cloud & Network Monitoring– 365 Command for Office 365 administration

Kaseya: The IT Management Solution for MSPs and Mid-Market Enterprises

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Why MSPs Choose Kaseya

A single Kaseya user can proactively manage 1,000s of automated IT systems and network tasks in the same amount of time required by a team of technicians using other techniques

It’s the industry’s only patented single-server-single-agent architecture; MSPs get enterprise-class capability that is easy to use and easy to afford

With 50+% of top MSPs worldwide using Kaseya, they get access to the most robust community available

And with so many ISVs plugging in to Kaseya via a seamless integration process, they get an easy way to leverage their existing strategic technology partnerships

About ClikCloud

• Pay-as-you-go Digital Marketing Firm– Custom Tailored Website– Bi-Monthly Blog Content– Monthly Newsletter– Pay-per-click Ad Management– Hosting & Web Analytics Included

• Kaseya Industry Expert since 2012

Recap of Part 1

• Understanding the Cloud Market Opportunity– Market Drivers– Service Opportunities– Cloud Security Concerns– Pitfalls to Avoid

http://goo.gl/785uGb

Recap of Part 2

• Is Your MSP Team Ready for the Cloud?– Channel Models for Cloud– Aligning Sales & Marketing– Service & Support Models– Operational Metrics– Pitfalls to avoid

http://goo.gl/YDAiP8

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Making Money in the Cloud | Essential Steps to Build a Cloud Service Practice

Agenda

• Pricing Models and Operational Metrics• Marketing Considerations• Sales Compensation and Revenue Alignment• Pitfalls to Avoid

Cloud Business Model Comparison

• Migration• Design• Integrate

Cloud Designer/ Builder

• Broker/Agent• Manage• Support

Cloud Reseller

• SaaS Publisher• IaaS Owner• Operator

Cloud Service Provider

Metrics to Drive Success

• For Cloud Designers and Builders– Percentage (%) billable services per project– Percentage (%) attach rate of services per project (100%

should be your target)– Target a percentage (%) of company top line revenue

derived from services– Specific services sales goals– Margin targets on service transactions

Metrics to Drive Success

• For Cloud Services Resellers or Cloud Services Providers more of a shift may be required– Recurring revenue growth vs. transactional revenue– Front-end lead generation metrics to drive down-stream

recurring revenue– Customer-by-customer increases in recurring revenue– Forecasting for customer churn– Projected annual total contract value– Cost of customer acquisition– Level of customer satisfaction– Rate of new customer acquisition

Prepaid / Multi-Year

Pay as you go

Low Commitment

On Demand

Focus on Retention

High Commitment

Forces Negotiation

Additional Pricing Considerations

Marketing Considerations

Application Micro Small Medium Large

Business productivity 19% 43% 60% 52%

Email 23% 48% 52% 48%

Web presence 23% 50% 48% 44%

Virtual desktop 15% 44% 54% 44%

Collaboration 6% 34% 52% 53%

Analytics 8% 33% 36% 35%

CRM 2% 28% 36% 43%

HR management 8% 29% 32% 34%

Expense management 8% 22% 28% 41%

Help desk 2% 27% 31% 32%

Invoicing 4% 23% 25% 21%

ERP 4% 15% 24% 28%

Payroll 8% 26% 22% 18%

Call center 4% 14% 22% 24%

Source: CompTIA’s 2nd Annual Trends in Cloud Computing studyBase: 373 U.S. businesses (aka end users) currently using cloud solutions

Other Key Benefits Reported by Users

Website Considerations

• Have a Strong, Easy to Find “Call to Action”

• Include Keyword Rich Content

• Ensure Phone Number is Prominent

• Mobile Friendly

Optimized Landing Page

• Support Call To Action• Add a Human Element• Set Expectations• Keep Your Qualification

Form “Above the Fold”

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On Page Search Engine Optimization

• Keyword Research• Unique Titles &

Descriptions• Search Engine

Submission• Webmaster Tools• Reporting & Analysis

Relevant Blog Content

• Provide IT Best Practices• Write with Business

Owner in Mind• Stay Vendor Neutral• SEO Optimize• Discuss News & Trends:

– Cloud Computing– Mobility– IT Security– Data Protection

Email Newsletter to Stay Top of Mind

• Branded• RSS Feed from Blog• Social Media Links• Offer & Features

Service• Best Practice Footer w/

Address & Unsubscribe Links & List Management

Social Media Integration

• Up Cycle Blogs & Videos

• Automate Blog Feeds• Include Links in Your

Newsletter Links• Build a Fan Base• Join LinkedIn Groups

Sales Considerations

Align Sales Goals With Business Goals

Accounts

Pipeline

ProspectsSuspects

Review Compensation Models

• Evergreen Commissions• Upfront Commissions• Life Cycle Commissions• Retention Bonuses

What skills and knowledge is your talent missing?

• Retail, healthcare, education, hospitality, etc.– Products– Competitors– Challenges– Strategic positions within

the industry– Industry terminology

(churn, rework, etc.)

• Knowledge of the operations of an organization– Financial

• CAPEX vs. OPEX• Revenue vs. profit• Annual report

– Workflow through departments

• Understands the business value of cloud

Vertical Knowledge Business Acumen

Avoiding the Pitfalls

Understand the Challenges

Understand the Challenges

Do’s & Don’ts

• Don’t Assume Cloud is “Just Another Product”

• Do Consider the Impact on: – Team/Skills– Operating Model– Sales & Marketing

• Don’t Neglect Your Sales & Marketing Tools

• Get Help When/Where You Need It

Wrap UpPay-as-you-go Digital Marketing Service• Custom Tailored Website• Syndicated Blog Content• Monthly Newsletter• Social Media Integration• Hosting & Web Analytics Included

Attendee Offer:Free 30 Min. Marketing ConsultationEmail: info@ ClikCloud.comSubject: “Consultation”

“ClikCloud is brilliant – they take the hassle out of digital marketing. It’s more than a website, it’s like having a digital marketing team available as a pay as you go subscription.."

Anthony M.NSW Australia

For More Info visit:ClikCloud.com/Kaseya

Next Steps

• More on ClikCloudwww.clikcloud.com/kaseya

• Learn more about Kaseya for MSPswww.kaseya.com/msp

• For a free live product demowww.kaseya.com/mspdemo

• For a free trialwww.kaseya.com/trynow

• To speak with uswww.kaseya.com/contactme

@kaseyacorp/company/kaseya/KaseyaFan community.kaseya.com

Kaseya Industry Expert Webinarswww.kaseya.com/resources/webinars