Service providers and the IT Channel - the future of Distribution in the Cloud

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1 Service providers and the IT Channel - the future of Distribution in the Cloud Peter Wüst Director Strategic Pathways, NetApp Steve Pearce Vice President Business Innovation, Arrow ECS

2 Exploring the channel of the future What is happening? How is the IT channel adapting? How can vendors and distributors help?

3 Cloud now a REALITY IT as a Service Private Clouds now evolving to embrace external cloud elements now more than product & virtualization selective Outsourcing now a key strategy Hybrid On Prem/off Prem becoming the model

4 Public Cloud Hyperscalars On premise? Off premise? Customers Hybrid! Private Cloud

5 This creates End User CHALLENGES How to deploy a Hybrid model? Reliability / Compatibility Legacy integration Risk Cost & ROI Confidence Protecting the data SLA / performance Who will deliver the Hybrid solution?

6 The traditional IT product channel Product Distributor ISV Product Vendor SI/VAR End User Telco /DC Infrastructure Basic Hosting ISV/xSP

7 The Changing channel landscape Born in the Cloud xsps / ISP / Hosting moving up Traditional Resellers evolving to resell Cloud services Pure MSP / Cloud players emerging Big players moving in VMware, MS, Google, Amazon, NetApp ISVs moving to SaaS model

8 The impact of Cloud and IT-as-a-service Distributor Product VAR It s Complicated Technology Vendor MSP/xSP VAR/SP End User Telco/Hosting Infrastructure ISV/SaaS

9 Positioning who does what? Vendors & originators Telco & Comms IaaS & PaaS Hardware & Software Vendors App & SaaS ISV/Developers Technology and Source Content Orignators The Channel Pure MSP/XSP New VAR Very Large SI & Telco MSPs End User IT Solution & Faciliators End Users SMB Med/Large V. Large With On prem & Off prem (Hybrid) computing needs.

10 Positioning who does what? Vendors & originators The Channel End Users Telco & Comms Pure MSP/XSP SMB IaaS & PaaS Hardware & Software Vendors App & SaaS ISV/Developers? New VAR Very Large SI & Telco MSPs Med/Large V. Large Technology and Source Content Orignators End User IT Solution & Faciliators With On prem & Off prem (Hybrid) computing needs.

11 Positioning who does what? Vendors & originators Distributors The Channel End Users Telco & Comms Pure MSP/XSP SMB IaaS & PaaS New VAR Med/Large Hardware & Software Vendors App & SaaS ISV/Developers Very Large SI & Telco MSPs V. Large Technology and Source Content Orignators End User IT Solution & Faciliators With On prem & Off prem (Hybrid) computing needs.

12 MSP Challenges - beyond the glamour Signing new customers Balancing Resources Service costing Vendors and contracts Licensing / SPLA agreements Service operations Financing the business Service Provider New Services development Staying ahead & maximising the customer wallet Build or buy? Co-opetition

13 So how can a Distributor help MSP s...? Business Development & Demand Creation Financial Support & Enablement Architectural & Service Enhancement

14 No longer about the size of your Data Center Retention Acquisition Market Share Partner? Build or Buy? Competition? Up sell Profitability ROI Brand ISV s? Big players Business case Commercial realities Partnerships & positioning

15 innovating tools for the new market Example 1. Define solution requirements 2. Integrated solution planning tool Unified solutions planning Compliant SPLA licensing management Simple Costing tool 3. Reliable and easy cost calculation One centralized reporting, ordering, report billing & support

16 A good time to Re-Invent your position Vendors Distributors Service Work with Service as partners, & routes to market, not customers Cut out vendor complexities Innovate and add real value Broker partnerships Focus on new customer acquisition Create higher value solutions Consider build or buy

17 Please come and see us on our booth See our break-out session on Wednesday

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