The Rise of the Reseller Channel

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1 The Rise of the Reseller Channel Diarmuid Daltún Director Business Development EMEA Odin Summit Seattle 12 th May 2015

2 Session Reseller definition Are resellers key to your business? Anatomy of a cloud reseller Three phases: Define, Recruit, Enable - Case Study: Telecom Italia Mauro Bacchiocchi - Alternate Channel: Deutsche Börse Cloud Exchange and myloc managed IT AG Summary and Discussion

3 Who is this session for? Those considering launching a reseller program Those interested in improving or re-launching their reseller program 2

4 Reseller Definition Individual or Company (proactively) selling products and or services owned or provided by another company for profit or commission. Owns billing relationship with its customer Owns support relationship with its customer 3

5 A Reseller is not (at least in my book) Affiliate / Referral partner Recommends suitable offer to prospect Is rewarded if prospect becomes customer of their partner 4

6 5 Are Resellers key to your success?

7 The Anatomy of a cloud reseller

8 7 Long term view of their customers

9 8 Domain Expertise

10 9 Complementary Businesses

11 10 Culture

12 Ok, but what do resellers want from you? Complementary competitive products/solutions/services fit for market Viable realistic business model and margins Clear rules of engagement Proper on-boarding and continued support (Through) Materials Training 11

13 Define, Recruit, Enable

14 Define (or Redefine) your Partner Program Structure (expectations, margins, levels) Portfolio Sales Tools (preferably through portal/wiki) Sales, Tools and Portfolio Support Lead Generation 13

15 Define (or Redefine) your Partner Program Structure Bronze, Silver, Gold (choose together which level suits) Set margins with bonus for meeting / exceeding targets Set entry barrier commensurate with effort (financial and commitment) Encourage growth to next level (award / recognise performance) Revisit your program every 3-6 months 14

16 Define (or Redefine) your Partner Program Setting the right margins Reseller Programs (source: SoftLetter report) 60% pay 1-15% margin 19% pay 16-30% margin 21% pay more than 40% margin Note: Resellers frequently pass on significant % of margin to their customers 15

17 Define (or Redefine) your Partner Program Portfolio Focus on simple solutions with many resellers? Focus on specific vertical or complex solution with few resellers? 16

18 Define (or Redefine) your Partner Program Sales tools best practice Presentations, White Papers, Case Studies, Guidelines, Technical and Sales Training Automation Platform Money flow With a real Reseller, they bill their customer Give them sufficient time to collect, then settle (60 90 days) 17

19 Recruit Create profile(s) of your ideal reseller Compile target list Competition, similar non-competing offerings, existing customers Launch campaign to recruit 18

20 Enable On-boarding Training Systems Motivation 19

21 Keys to success Define solid partner program that you are willing to revisit regularly Recruit the right types of resellers Enable partners by executing on your program Note: Support them as you would your own sales force they are your sales force 20

22 Resellers Workshop Odin Summit Seattle, 5/11/2015 Mauro Bacchiocchi, Sales Director

23 Employees +66K Customers +150M 2014 Revenues +22B Telecom Italia is the main Italian Telco and ICT provider, a leader Telco player in LATAM and one of the top 15 global Telco players Italy s ICT leader with business operations in: fixed and mobile telecommunications, internet and media, office and systems solutions, research and development Core markets: Italy, Brazil and Argentina Telecom Italia Digital Solutions 22

24 Telecom Italia Digital Solutions TIDS is a fully owned Telecom Italia Group Company founded in Oct to address the digital market. Our mission is to accompany enterprises and institutions thru the process of Digital Transformation, providing innovative services and solutions through 5 Business Unit EMPLOYEES Headcount 275 Project Manager 44 Operations 125 Internet Of Things Big Data & Analytics Cloud & OTT Services Cyber Security Digital Identity Staff Marketing & Sales Business Units - - Holding Enterprises - 23 Telecom Italia Digital Solutions

25 TIDS Cloud&OTT Value Proposition Internet Of Things Big Data & Analytics Cloud & OTT Services Cyber Security Digital Identity Cloud & OTT Services Business Unit has been created to enable RESELLERS to speed up the Cloud Automation Adoption with a Value Proposition focused on: Cloud Automation based on Odin Platform Business Model B2B2B based on Multi-Tier Reselling ISV agreements to resell syndicated SaaS Wide Portfolio offer IaaS/PaaS/SaaS Business scope: primary TI Group Companies and OTT in both domestic and international market 24 Telecom Italia Digital Solutions

26 Integration Interfaces TIDS Cloud Automation Service Model Solutions Services APPLICATIONS CLOUD AUTOMATION PLATFORM CLOUD OFFERING UNIQUE TO CUSTOMER & RESELLERS SIMPLIFIED CUSTOMER EXPERIENCE SERVICE PROVISIONING Package A (Telco) + Package B (Cloud SaaS) + + Marketplace Sales Automation Portal AUTOMATED BILLING Package C (Infrastructure) Vouchering System Syndicated or Hosted BUSINESS ORCHESTRATION + CRM (web ads, telesales, lead generation, ) 1 panel 1 bill 1 login 1 integrated experience Proprietary Services (provider specific) REPORTING Multi-tiered Reseller Support (Direct, VAR, Online, Wholesale, ) Service Onboarding Consulting & System Integration services 25 Telecom Italia Digital Solutions

27 TIDS custom solutions Vouchering System Market Place Sales Automation Portal CRM Fixed Mobile Mediation Layer Cloud Automation Platform To gain loyalty from clients and reduce churn using a vouchering system Direct Sales Resellers 3 Partners/ ISV To enable and accelerate online sales services Cloud. To increase the effectiveness of the sales force. 26 Telecom Italia Digital Solutions

28 TIDS Multi Tier Go to Market Model TIER 1 TIER 2 International Telecom Argentina TIM BRASIL MarketPlace MarketPlace Direct Local Telco Direct Sales TI SPARKLE Local Telco IT Distributor Domestic TI Group TI San Marino NWs MarketPlace Local Telco IT Hoster Olivetti Dealer&Retail Store Proprietary Services (provider specific) Domestic White Label TI Business IT Distributor Direct Sales MarketPlace ITIS / VAR Reseller - VAR Telecom Italia Digital Solutions

29 Digital Solutions - Cloud&OTT Services Enlarge service portfolio Connection with ERP Web site / Mobile Site Set Up Training of Reseller sales force Customer base import/migration Upsell Cross selling Customized service portfolio Web marketing Seamless flow of information btwn all enterprise system (crm/erp/salesforce) Marketing automation Autonomous development of APS Branding initiative months Onboarding basic Anchor services Standard support months 6-12 months 3-6 months 28

30 Digital Solutions - Cloud&OTT Services Enlarge service portfolio Connection with ERP Web site / Mobile Site Set Up Training of Reseller sales force Customer base import/migration Upsell Cross selling Customized service portfolio Web marketing Seamless flow of information btwn all enterprise system (crm/erp/salesforce) Marketing automation Autonomous development of APS Branding initiative Onboarding basic Anchor services Standard support TI SPARKLE TI BUSINESS NUVOLA STORE ESPRINET OLIVETTI TRUST Zerocento NWs 3-6 months 6-12 months months months 29

31 Digital Solutions - Cloud&OTT Services Who we are Cloud Enabler Heavily committed to Telecom Italia Group captive demand System integrator / professional services Software house to develop APS Product Marketing Who we want to be Cloud Broker Strategic Partner for our Resellers up to Gotomarket strategies and costomer up&cross selling Within Telecom Italia Group: owner of all things related to cloud automation (ie Customer Support) Developer of specific solutions to address vertical markets 30

32 Thank you!

33 DEUTSCHE BÖRSE CLOUD EXCHANGE REDUCING COMPLEXITY

34 The marketplace for cloud resources Deutsche Börse Cloud Exchange AG 33 BUY CLOUD RESOURCES THE STORY TOLD WEBSITE REGISTER CREATE VM Go to the website and select the product Set up an account and log in Start your VMs!

35 The marketplace for cloud resources Deutsche Börse Cloud Exchange AG 34 BUY CLOUD RESOURCES THE REALITY

36 The marketplace for cloud resources Deutsche Börse Cloud Exchange AG 35 BUY CLOUD RESOURCES EVEN WHEN THINGS LOOK THE SAME...PERFORMANCE CAN BE DIFFERENT Left: 120 BHP Right: 200 BHP

37 The marketplace for cloud resources Deutsche Börse Cloud Exchange AG 36 DBCE - STANDARDS HELP CLEARING THE WAY TRANSPARENCY Products are clearly defined and sufficiently comparable If products are comparable, so are their prices If products are standardised, value-adds are easier to identify STANDARDISATION REQUIREMENTS Standardization needs to be non-biased and thus driven by a neutral entity Standards need to be the common denominator for broad market acceptance Standards need to be controlled and monitored

38 The marketplace for cloud resources Deutsche Börse Cloud Exchange AG 37 DBCE STANDARDS REDUCE COMPLEXITY ON ALL LEVELS One interface to choose, buy, use and pay Standard contracts when buying resources, independent from seller Standard technical integration to marketplace for buy and sell side Sufficiently comparable products to compare prices and services Which means: One setup fits all providers on DBCE

39 The marketplace for cloud resources Deutsche Börse Cloud Exchange AG 38 DBCE PROVIDERS OPTIMIZE REVENUES AND MINIMIZE COSTS Set different prices for your resources and skim willingness to pay Improve costs per order by using DBCE as a customer acquisition and communication engine Focus on your core business and let DBCE handle fraud and payment issues

40 The marketplace for cloud resources Deutsche Börse Cloud Exchange AG 39 DBCE LIVE FROM 18TH MAI 2015 FOR MORE INFORMATION REGISTER TODAY go.cloud.exchange

41 THE MARKETPLACE FOR CLOUD RESOURCES A new era of IT sourcing Deutsche Börse Cloud Exchange AG Mergenthalerallee 55 D Eschborn Phone +49-(0) Web

42 Discussion Points Would SPs or Telcos consider the Reseller Channel to reach the long-tail with simple products or specific vertical with more complex products? How much flexibility does one give resellers to alter their offerings? (Aruba Resources) (Domain Factory pre-packaged) 41 Can you offer the same products at a higher price through a reseller channel?

43 Reseller Onboarding program Reseller Onboarding program

44 Reseller Onboarding programme Overview Purpose Implement a robust, structured onboarding programme for new reseller partners Ensure optimum performance by providing new partners with tools to maximise sales Assist in recruiting new reseller partners by showing a professional process with fast time to market Key Resources Reseller Channel Manager Reseller Product Manager Product Managers PA Administrator Commercial Finance Legal Objective: Launch a new reseller partner in 90 days

45 Reseller Onboarding programme Key activities Key Resources Commercial Portfolio Deployment Training Sales enablement Agree mutual objectives (volume commitment), prepare business case Define commercial terms including commissions and settlement terms Draft and sign legal agreements between reseller and partner Select appropriate cloud services -based on existing/target customer base and existing products sold by reseller Define services roadmap based on achievement of sales targets Define configuration of specific service plans for the reseller Options include using existing plans with different pricing or creating new ones Create reseller panel in PA for partner and deploy for reseller to use Develop a training plan for the reseller based on current capability and knowledge of cloud/managed services Provide sales training (cloud and product specific) and PA platform training Create a set of materials (collateral, sales scripting, battlecards etc.) that are white labeled for the reseller to brand and utilise to drive cloud sales Provide best practice on campaigns and marketing activity to drive sales Channel Manager Product Manager Legal/Finance Channel Manager Product Managers Channel Manager Product Managers PA Admin Channel Manager Product Managers PA Admin Channel Manager Product Managers Marketing

46 Key Activities Reseller Onboarding programme 90 day process Day 1 Day 30 Day 60 Day 90 Kick off meeting with reseller Explain 90 day onboarding process Start commercial discussions Provide overview of cloud services portfolios and examples of alternative business models Schedule meeting for Day 30 milestone Review draft commercial terms Facilitate service portfolio selection meeting Agree services for initial launch Discuss naming and branding for services Provide overview of sales support materials available to partner Schedule Day 60 meet Sign final commercial agreements Agree final service plans for initial launch Commence product and PA training for sales and reseller PA admin Discuss reseller marketing plan and any joint activities (reseller and partner) Confirm final launch timing for reseller Final deployment of reseller control panel (PA) to reseller Reseller services ready for sale Training complete Marketing materials customisedfor reseller and complete Press release issued announcing launch Internal communications issued

47 Reseller Onboarding programme Supporting materials required Commercial Presentation of reseller onboarding process Business case template for reseller Commissions calculator (based on volumes) Contract template Portfolio Overall cloud story for partner (why resell partner services?) Service descriptions for each cloud service How to use information for each service Cloud services roadmap Deployment User manual for OSA reseller control panel Training Sales training material for selling cloud services Sales training material for each specific cloud service Training guide for OSA reseller control panel Sales enablement Product collateral (white labeled) marketing templates (white labeled) Press release template Battlecards for sales (key messages and objection handling) Customer case studies (white labeled) Customer ROI calculator (white labeled) Campaign guidance and best practice

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