Quick Start to Accelerating Your Cloud Business. Katherine Hunt, Director, Member Communities

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1 Quick Start to Accelerating Your Cloud Business Katherine Hunt, Director, Member Communities

2 CompTIA Strategy Educate The IT Channel Advocate On behalf of the industry Certify The IT workforce Give Back Through Philanthropy

3 CompTIA Channel Training About this Education The content and materials featured in this presentation are the result of a collaborative, CompTIA community-led development effort. An advisory group comprised of channel leaders and technical experts identified training goals and objectives, while education specialists carried out development work based on the insights and information provided by the advisory group and other subject matter experts. About CompTIA CompTIA is the voice of the world's information technology industry. As a nonprofit trade association advancing the global interests of IT professionals and companies, we focus our programmes on four main areas: education, certification, advocacy and philanthropy.

4 Acceleration Strategies Define Your Future State Business Model and Measure Results Build and Articulate a New Value Proposition Transform Your Staff Be the Trusted Advisor

5 The World Is Changing : Movies

6 The World Is Changing : Music

7 The World Is Changing : IT

8 End User Investment and Channel Firm Revenue Planned Increases to Cloud Investments (End User) 22% 38% Of channel firms currently offering cloud solutions or services, 51% have cloud generating over half their revenue and 42% expect cloud-related revenue to grow significantly in % 11% 14% 0% < 5% 5%-9% 10%-15% > 15% Source: CompTIA s 3 rd Annual Trends in Cloud Computing study Base: 501 U.S. businesses (aka end users) and 250 channel firms with cloud offerings

9 Reasons for Moving to Cloud Desire to cut costs Simply better option Reduce cap-ex Modernization of legacy IT Reduce complexity Independent operation Avoid software licensing Add new capabilities Simple/fast implementation Reduce IT headcount Predictable pricing 50% 44% 43% 42% 42% 40% 36% 34% 34% 28% 27% Source: CompTIA s 3 rd Annual Trends in Cloud Computing study Base: 415 U.S. IT or Business executives (aka end users) using cloud solutions

10 Understanding of Cloud Computing Continues to Grow 91% 92% 91% 78% 79% 66% 66% 67% 55% 27% 34% 32% Small firms Medium firms Familiar/Very Familiar Last Year Large firms Executives IT staff Business staff Familiar/Very Familiar Now Source: CompTIA s 3 rd Annual Trends in Cloud Computing study Base: 474 U.S. businesses (aka end users)

11 Application Micro Small Medium Large Business productivity 19% 43% 60% 52% 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 2 nd Annual Trends in Cloud Computing study Base: 373 U.S. businesses (aka end users) currently using cloud solutions

12 Cloud Business Models Cloud Service Providers Technology Vendor Cloud Providers Saas Providers Cloud Aggregators End Users Channel Players

13 Cloud Models / Approaches Cloud Designer & Builder Cloud Services Reseller Cloud Service Provider Private Cloud orientation Leverage traditional business model Incrementally add public cloud Integrate Hybrid Cloud Heavy PS Focus Public Cloud orientation Build Recurring Revenue Heavy Focus on Vertical and Application Service Integrate Hybrid Cloud White Label Public Cloud Provider Operating Data centres Recurring Revenue Support and MSP Services IaaS or Use Case (e.g. DaaS)

14 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

15 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 downstream 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

16 Time to Change? Need a Plan. ACTION 1: Review Internal Metrics and Create Dashboard. Model the impact on cash flow of new model ACTION 2: Involve business partners. Determine your best cash flow and credit strategies ACTION 3: Challenge your sales leaders. Quarterly misses have a much larger downstream impact in recurring revenue model

17 When can your customers go direct? Cloud Supplier Direct Sales Model Customer Direct when the solution is Standardized Simple Limited Capabilities Low Integration

18 When do your customers need you? Indirect Sales Model Requires Process Change Customised Robust Dynamic Capabilities Extensive Integration Service Provider Cloud Supplier Customer

19 What value do you add? Direct Sales Model Standardised Simple Limited Capabilities Low Integration Indirect Sales Model Requires Process Change Customised Robust Dynamic Capabilities Extensive Integration Advice Customisation Integration Management

20 Where do you add value in the cloud lifecycle? Advise Deliver Operate and Manage Manage Plan and Design Implement Support Picture

21 Important Questions Marketing and Technical Together Is there value in offering design services for this solution? Will customers need assistance in deploying or customising the solution? Will there be integration points with other elements of infrastructure? Will the customer need training to support the solution and come up to speed? How will the customer migrate from the legacy solution to a cloud solution?

22 Where can you differentiate? Advise Design Implementation Management Support Value Add Requirement Definition Solution Specification Accelerated Deployment Monitoring/ Reporting Support/ Maintenance Solution Example Cloud Based Backup/ Recovery Private Cloud Archive Storage Tier SaaS based CRM Cloud based management Single Call Support for Integrated Computing Service Example Data Loss Risk Analysis Storage Modernisation for PACS Data (Healthcare) Software Customisation and Cloud Integration Compliance Review Vendor Support Contract Audit

23 From Generalist to Specialist: Vertical and Application Focus Vertical Focus Healthcare Mobile Applications HIPAA Compliance Cloud Security Medical Imaging Application Focus Virtual Desktop Application Delivery (Saas) & Communications File Collaboration Cloud Backup and DR Virtual Infrastructure

24 Transform Your Team and Be The Trusted Advisor Operations Engineers Strategic Engineers / Consultants Pre-Sales Vetting Vendor Management

25 What skills and knowledge is your talent missing? Vertical Knowledge Retail, healthcare, education, hospitality, etc. Products Competitors Challenges Strategic positions within the industry Industry terminology (churn, rework, etc.) Business Acumen Knowledge of the operations of an organisation Financial CAPEX vs. OPEX Revenue vs. profit Annual report Workflow through departments Understands the business value of cloud Are you the trusted advisor to your customers?

26 Transitioning It s not a Cloud OR its an AND Make sure your sales team is goaled correctly to remove conflict Address commission plans early Educate staff (& clients) on cloud form factor Cloud Vendor / Technology Selection Align with cloud strategy Survey your customers & make them aware Validate the investment, effort & model and COMMIT Persevere Short term pain, long term gain!

27 Wrap-Up Focus on Building unique expertise Driving a preferred business model Invest in Your people and their skills (Education) New relationships and partnerships Tools and resources for focusing your sales team Developing a plan and the metrics to measure your progress

28 Good Reference Points

29 CompTIA Communities Join us!

30 Questions

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