SaaSMAX Special Event: CompTIA - IT Channel Trends In Cloud/SaaS December 18, 2013 Presenter: Tim Herbert, VP Research & Market Intelligence, CompTIA Host: Dina Moskowitz, CEO, SaaSMAX
Jan 12, 2015
SaaSMAX Special Event: CompTIA - IT Channel Trends In Cloud/SaaSDecember 18, 2013
Presenter: Tim Herbert, VP Research & Market Intelligence, CompTIA
Host: Dina Moskowitz, CEO, SaaSMAX
Agenda
• Introduction• Size & Scope of IT Industry & IT Channel• Partnership Aspects & Framework• Trends in Cloud Growth, Demand, Adoption• Customer Challenges • Factors Influencing Channel Partner Decision to
Partner
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About SaaSMAX
2013 © SaaSMAX Corp. All rights reserved.
SaaSMAXThe Ultimate SaaS Marketplace
SaaSMAX connects B2B Cloud Apps with the Reseller Channel and Buyers.
Resellers: Efficient app discovery, review reseller program – new recurring revenue opportunities!
App Vendors: Instant exposure to to the U.S. IT Channel & Other Business Advisors.
Announce special offers, SPIFFs, pricing plans. Improve Reseller Recruitment.
Includes pro-active social/ email/webinar marketing activities & personal introductions.
Build product awareness/brand credibility. Create success stories!
No technical integrations required. Includes multiple direct links & transparency.
About CompTIA
2013 © SaaSMAX Corp. All rights reserved.
SaaSMAXThe Ultimate SaaS Marketplace
Education
Certification
Philanthropy
AdvocacyTim HerbertVP Research & Market IntelligenceCompTIA
CompTIA, a not-for-profit trade association, dedicated to serving IT companies and IT professionals
The IT Industry’s Path to $5 Trillion
IT Services Hardware Software
38% 37%
25%
32%
50%
18%
U.S. World
Core IT Market
41%
59%
Fixed Voice/Data
Wireless Voice/Data
Telecom Services
+39% by 2020
Source: IDC
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IT Channel Overview
IT Product or Service from Vendor, OEM
Distributor, VAD, Retailer Customer
IT Solution Providers, VARs, MSPs, Integrators, Designers, etc.
Traditional route to market flow through the IT channel
The Potential Channel Universe:
~120,000 Firms with payroll (employer firms)~350,000 Self employed (do not have payroll)~75,000 Firms of some scale; commonly used as
the target channel universe among vendors
For many IT vendors, estimates suggest 75% of their business flows through the IT channel.
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Most IT Channel Firms Are Hybrids, Offering a Mix of Products and Services
Reseller / VAR
Managed print services
ISV
Telecom-related services
IT repair services/service center
System/network integration services
Managed services
Application development
Web development
IT support or help desk services
IT consulting services
IT solutions (e.g. combining elements_x000d_ of hardware, software or services)
24%
25%
25%
33%
41%
46%
49%
50%
52%
52%
61%
64%
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The Partnership Aspect of Channel Partners
% reporting a NET GAIN in vendor program participation in 2012
43%
% of channel partners belonging to more than 15 vendor programs
On average, channel partners belong to 8 vendor programs
14%
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Cloud Business Models Framework for the Channel
Build Provide / Provision
Enable / Integrate
Manage / Support
IaaS | PaaS | SaaS
Public | Private | Hybrid Clouds
Cloud Aggregation | Brokerage Services
Procure HW + SW; add
expertise to build cloud
Resell
White-label
Hosting / Direct to customer
Deployment
Consulting | Advising | IT Solutions
Integration
Break/Fix
Managed Services
Customization / Development
Architecture / Design
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Cloud Business Models Framework Cont.
48% 49% 51%61%
32% 34% 35%27%
Build Provide/ Provision
Manage/ Support
Cloud Business Model Involvement among Channel Partners
Enable/Integrate
Currently provide
Plan to provide
Channel Partner Assessment of Their Cloud Offerings
Strategic Opport-unistic
Build 46% 37%
Provide/Provision 49% 38%
Enable/Integrate 53% 33%
Manage/Support 58% 32%
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Cloud Growth Trajectory
26%% of channel partners expecting significant growth in cloud revenue (15% +) over next 12 months
Manage / Support segment
Build segment
Enable / Integrate segment
Provide / Provision segment
20%
23%
25%
32%
Cloud Growth Opportunities Expectations* Over Next 2 Years
19.5% CAGR through 2016
SaaS Growth Forecast
25% in 2013
24% CAGR through 2016*From perspective of channel partners in CompTIA study
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Customer Demand for Cloud Solutions
37%
41%
22%
Customer Demand for Cloud Solutions
Very High Demand
High Demand
63% NET High Demand
Somewhat High or Low
Demand
Rating of Demand from Channel Partner Perspective
Channel partners with a cloud build practice or a provide/provision practice are most bullish on customer demand for cloud solutions.
Customer desire to reduce complexity
Customer desire to increase mobile/remote access to company data
Customer eyeing cost reductions / price sensitive
Customer business objectives best met with cloud solutions
Ability to on-ramp and scale new features/services faster
Customer has no in-house IT management
Main Reasons to Recommend Cloud over On-premise Solutions
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Typical Stages of Customer Cloud Adoption
Experimentation Non-Critical Use Full Production Optimization
Currently Using IaaS/PaaS
36%
57%53%
Currently Using Cloud Solution For:59% Storage/back-up53% E-mail 49% Web presence 48% Disaster recovery/business continuity46% Business productivity44% Collaboration41% CRM41% Mobile application backend41% Analytics or business intelligence40% Communications (webinar, videoconferencing, IM, etc.)38% Financial management 36% Expense management 34% HR management32% Help desk31% ERP
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Customer Challenges in Using Cloud Solutions
Lower performance than expected
Locked in to cloud provider
Painful transition from legacy systems
Defining/justifying ROI
Costs higher than originally estimated
Learning curve for cloud model
Changes to IT policy
Integration with existing systems
26%
26%
28%
30%
35%
39%
40%
49%
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Factors Influencing Channel Partner Decision to Join and/or Leave Vendor Partner Program
• Margins• Discounts / rebates• Cost of membership• Deal registration
Money Issue
• Product line / strategic fit• Degree of conflict with vendor’s direct sales• Volume requirements
Strategic Issue
• Ease or difficulty of doing business with• Consistency of requirements• Level and effectiveness of support (marketing,
training, pre/post sales)
Execution Issue
60% or channel partners report evaluating their vendor partner program participation quarterly or semi-annually.
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Wrap-up Summary Points SaaSMAXThe Ultimate SaaS Marketplace
Channel Universe: 500,000+ entities – they OWN millions of customer relationships!
Channel Universe uses/purchases/resellers cloud solutions.
Channel partners belong to 8 vendor programs, 43% participation gain in 2012
60% of Channel partners pro-actively evaluate participation in vendor programs.
Influenced by Money, Strategy, Execution/Enablement.
63% of Channel Partner’s customers have Very High or High demand for Cloud Solutions.
IF YOU’RE A B2B SAAS VENDOR,
MARKET TO AND LEVERAGE THE CHANNEL UNIVERSE!
Be A Part of Our Communities SaaSMAXThe Ultimate SaaS Marketplace
Join SaaSMAX! SaaS Vendors: Contact [email protected] for a special discount code to join, mention CompTIA Webinar in subject header.
IT Channel/Resellers/Buyers: Free to join, www.SaaSMAX.com
Join CompTIA!All SaaSMAX Members can join CompTIA for $150 ($100 discount!), $100 off Security Trustmark and $100 off MSP Partner Trustmark. http://www.saasmax.com/info/partners.html
Thank you!Dina Moskowitz, CEO, SaaSMAX Corp.
Tim Herbert, VP Research & Market Intelligence, [email protected]