3. Just the Facts
$45.9B opportunity in 2012
$207B
growing to by 2016
Source:
Cloud is not coming
…it is here
93% of companies report
Where are we now?
Using some form of cloud solution
Source:
4. The Channel Shift is Happening NOW…
For those Channel Partners offering Cloud Services:
51% are generating over
half their revenue
42% expect cloud-related revenue to
grow significantly in 2012
Source:
5. But Customers are going Direct…or are they?
Channel Partners
predicting growth in
next 12 months 96%
21% of customers have contracted
with a third party for cloud transition
Source:
6. Channel Models/ Approaches
Cloud Designer & Cloud Services Cloud Service
Builder Reseller Provider
• Private Cloud orientation • Public Cloud orientation • Public Cloud Provider
• Leverage traditional business • Build Recurring Revenue • Operating Data Centers
model • Heavy Focus on Vertical and • Recurring Revenue
• Incrementally add public cloud Application Service • Support and MSP Services
• Integrate Hybrid Cloud • Integrate Hybrid Cloud • IaaS or Use Case (e.g. DaaS)
• Heavy PS Focus • White Label
7. Every Challenge is a Revenue Opportunity!
Privacy
Security
Availability
=
Compliance
12. SHOW ME THE MONEY
60% of Channel Partners said
customer demand is driving them to cloud.
55% report service attach opportunities
48% report consulting and network
assessments driving large pre and post sales
Source:
13. But Customers are going Direct…or are they?
Channel Partners
predicting growth in
next 12 months 96%
21% of customers have contracted
with a third party for cloud transition
Source:
14. Just the Facts
Cloud Computing will generate 13.8M new jobs by 2015.
Will Managed Services grow to be “Managed Cloud”
and capture the majority of these jobs? Source:
Wait a minute, isn’t the low margin
cloud going to kill the Channel?
“12,000 new cloud jobs in April 2012”
Where are we now? Source:
15. Why the Cloud Makes Sense to Customers…
50% of companies want to reduce costs
44% think it is a better solution
43% want to shift to op-ex
Source:
Editor's Notes
These are by no means the only business models to pursue, but they are the 3 most appropriate for solution providers, and they are broad enough to allow solution providers to participate in many aspects of the cloud business. Successful solution providers are choosing one of these as there main area of focus, and building their primary business model around it. Cloud Designer & Builder – Solution Providers who provide products and services to assist end-users in determining the need for, and migrating to, cloud based solutions, either public or private. These solution providers will deliver a variety of offerings including services to migrate users to the cloud, the resell and design of private cloud infrastructure, and the integration of on-premises solutions with public cloud (often called Hybrid Cloud). Cloud Services Reseller – Sometimes also referred to as a Cloud Broker or Cloud Agent, these are solution providers who resell and add value to existing cloud services from cloud service operators. This also includes solution providers or MSP’s who white label and re-brand services as their own. In this model, the solution provider generates sales in a recurring revenue model, handling monthly billing to the end-user either on behalf of a service provider, or for themselves in the case of white label. Solution providers will add value to the cloud solution in the form of integration, vertical industry consulting, customization of SaaS based solutions, or consulting around customer needs and requirements to determine the best fit cloud option. Cloud Service Providers – Solution providers who have built out their own infrastructure, which they own and operate to provide cloud services to end-users. This business model is more akin to that of an IT organization than a traditional reseller. The differentiating factor is that cloud service providers do not have the captive audience that many IT departments rely on so they will have a fully developed sales function and a sophisticated means to provide metering, monitoring, and some level of self-service provisioning for the cloud services.
