Penton Technology Group. VMware Business Plan. Evelyn Bridge
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1 Penton Technology Group VMware Business Plan Evelyn Bridge 24 April
2 Strategic Plan 1. Goal Launch a VMware web site (VMware IT Pro - vmwareitpro.com, vmitpro.com, virtitpro.com ) and brand in 2012 with revenue growth and projections at $5M by The goal of this independent VMware community is: To be an independent branded technology community Lead as the independent provider of how-to content for real-world platform information for virtualization professionals using VMware technology Provide online and in-person education and training events To develop guides, tutorials, planning and implementation tools, and other online products Offer audience networking, engagement and prospecting opportunities for solution providers and vendors looking to extend their reach and communication with these professionals Anticipated audience reach and interest within the Technology Group is more than 1.5 Million (more than 60%) of our 3.1 Million users, who indicate they are planning to deploy on a VMware platform(s). The following figure is a sample question regarding VMware deployment which was included on a 2011 Readex Technology Trends Study sampled from the Technology Group audience. Technology Trends Study, July 2011, 1772 Respondents 2
3 Additionally, more than 50% of VMware s OEM and Technology Alliance partners are current advertisers with the Technology Group. Their combined advertising spend is $1.6 Million, of which it is estimated that approximately 30% ($480K) was for virtualization-targeted marketing programs. Conservative estimates for increased partner advertising spend by developing a targeted VMware web site and channel would double the $480K that is currently spent targeting the Technology Group audience. Establishing an independent online brand for VMware professionals is the foundation for launching a new business for IT professionals in synch with our Windows and IBM technology and business communities. 2. Market The virtualization software for a cloud service market is anticipated to reach $16 Billion by VMware is the dominant player in the virtualization space. Research and analysis supports a long-term strategy and positioning with focus on expanding VMware offerings up the stack. Market Share Research suggests that VMware has nearly 60% of the total virtualization market share. VMware s competitive strategy is focused on maintaining a superior product platform with the virtualization and infrastructure layer as the core and springboard for integrating additional layers of service (Cloud) and application development. VMware is focused on increasing the scalability of their technologies and expanding the points of integration between software applications and the hardware platforms they run on. 2 Additionally, VMware s $420 Million acquisition of SpringSource, a leader in enterprise and web application development and management positions VMware for further innovation and development of integrated Platform as a Service (PaaS) solutions. 3 VMware s top competitors in the virtualization market are Microsoft, Citrix, and Red Hat. Microsoft s Hyper-V product is considered their foremost competitor with an estimated 30% of the total market share. VMware dominates the enterprise level market share with estimates at 80% of all enterprise level virtualization installments. Microsoft is more competitive in the SMB and mid-size markets however the general consensus is that Hyper-V is not as scalable as the competition and until Microsoft makes deep product improvements, VMware will continue to dominate the market share. 3
4 Competitive Landscape The timing of moving into the VMware market is good given the competitive landscape does not have any one leader emerging as the independent voice for VMware. Most of the competition is focused on virtualization as a broader audience versus aligning themselves with VMware specifically. Tech Target s Virtualization sites represent the most formidable competition in the major media space. An internal SEO audit conducted in April 2012, however indicates that most of the conversations and discussions around VMware are happening in MicroMedia (Twitter), forums and blogs. The major media competitors in this space are: Tech Target s SearchServerVirtualization.com and SearchVMware.com o 5 dedicated sites for virtualization: VMware, Microsoft Hyper-V, server, storage and desktop virtualization o Covering virtualization since 2006 o 13.6 million activities around virtualization o Events Desktop Virtualization Seminar Series 30-city seminar series BriForum 2012 Technical conference featuring Brian Madden o Awards Programs Products of the Year (Virtualization) Award November Best of VMworld Awards 1105 Media s Virtualization Review o Approximately 40,000 senior-level IT management and C-suite executives in primarily U.S. organizations o Reader s Choice Awards Virtualization.info o Established in 2003 by Allessandro Perilli, Gartner Analyst once perceived as the leading source of virtualization news and information but now that Allessandro is no longer directly contributing it has lost followers and identity o Over 250K page views per month, 11K RSS subscribers, 5000 pages indexed by over 100K sites o Considering list acquisition strategy with virtualization.info The major blog and MicroMedia sites that are generating traffic and activity are primarily VMware or VMware Partner content and positioning: Yellow Bricks, Duncan Epping (VMware) Virtual Geek, Chad Sakac (EMC) Scott Lowe blog (CTO, EMC) NTPro.nl, Eric (vexpert, VMware Certified Instructor) RTFM Education, Mike Laverick Frank Denneman blog Architect, VMware) vsphere-land, Eric Siebert (Independent, writes for Tech Target) 4
5 Virtualization Evangelist, Jason (VMware) Virtu-al, Alan Renouf Gabe s Virtual World, Gabe Van Zanten Competitive Positioning The Technology Group reach is estimated to be greater than the competition and our unique positioning with Microsoft and IBM give us a competitive edge in aligning ourselves with a VMware branded community. Additionally, we ll need to define a targeted MicroMedia focus in order to acquire new audience and build brand recognition. With our internal resources and the power of the EyeTraffic engine, we can sculpt a MicroMedia strategy based on Penton Technology audience intelligence as well as what trends are being observed in the general virtualization market. In conversations with various industry authorities including John Enck, Managing VP for Gartner Research, there is a need for addressing emerging topics like desktop virtualization, the management of virtualization, and virtualization versus the cloud. Focusing content and channels around these areas represent an immediate demand in terms of content, news, information, training and education for IT professionals. In talking with Tim Stephan, Senior Director of Product Marketing for Infrastructure at VMware, he shared VMware s strategy to continue to build on the base of virtualization, build in cloud service and support, and build in the development environment. The Penton Technology reach across Microsoft (x86), IBM and the Channel audiences is a prime audience for VMware to partner with for positioning their growth up the stack. 3. Plan Overview The following plan outlines our 2012 quarterly efforts for launching VMware IT Pro and the strategy for targeting the current Technology Group audience, VMware acquisition efforts and outreach, and content strategy. Q2 Research and Analysis Q3 VMware IT Pro Launch Q4 Virtual Event and Project Plan 5
6 2 nd Quarter VMware Strategy Meeting Phase I o Share business plan, identify Advisory Board members, define product launch plans and timeline o Wednesday, April 25th Scope and submit research to be distributed across the following targeted Penton divisions: Technology Group, Electronics & Design Engineering, Public Infrastructure, Manufacturing & Supply Chain,& Mechanical Systems o Launch -- Week of April 23 rd Review and analysis of Penton research and virtualization SEO/eListening audit o May 2012 Confirm brand and define editorial content and MicroMedia strategy and resources o May 25, 2012 Define audience acquisition strategy and event launch including focus groups, roadshows, workshops, elearning, and VTS o May 25, 2012 Develop sales and branding marketing communication highlighting research and analysis and launch strategy Identify prospects and develop sales packages with sponsor opportunities o June 1, 2012 Scope web site functionality and request for development o June rd Quarter VMware IT Pro brand launch o Virtualization market case study/white paper Sponsored research opportunity(s) based on Q2 research and elistening results Custom virtualization roadshow VMware IT Pro sponsor opportunities Round VMworld Launch VMworld, August th 4th Quarter VMware IT Pro Virtual Conference o Launch November 2012 Marketing Service, elearning and Project Plan Launch o Oct-Nov 2012 VMware Partner Plan HP/EMC 6
7 o o o Custom Content Required Reading/Custom newsletter series Demand Generation Webcast and white paper series Exclusive Project Plan Sponsorship Oct-Nov Audience Strategy Our audience strategy will focus initially around quantifying the number of VMware users in our ecosystem and defining channels and products to promote engagement with those IT professionals. Phase I of the audience strategy will focus on completing an internal in-depth market research program for determining audience demand and needs while also supporting our positioning for sponsors and VMware partners looking to reach this audience. Phase II will focus on acquiring VMware professionals we are not currently reaching by attending VMworld, identifying list rental and acquisition opportunities, and developing networks within the VMware Partner channel. Phase I (April & May 2012) Targeting the 60% of 3.1 Million of Technology Group users who ve indicated they are operating on VMware platforms. o VMware internal research in April will quantify current audience, determine state of the industry, indicate personal buying power, examine role of media in technology adoption, define web site structure, and examine attitudes for vendors in this market. elistening audit with EyeTraffic looking at the VMware/Virtualization market Phase II (August 2012) Acquisition plan o Cloud and Virtualization Update nls - launched o Events VMworld booth and barter plan strategic meeting Friday 3/28 VMware IT Pro Virtual Conference (November) working with Amanda Audience: Penton Technology Group VTS Title: Virtualization Faceoff: Hyper V vs. Vsphere Date: Oct. 19?? Speaker: TBD Topic: Virtualization: Faceoff Hyper V vs. Vsphere (straight down the middle, real-world implementation) VMware local focus group meeting (Fort Collins or Denver) working with Amanda and targeting Aug-Oct 7
8 5. Partner Strategy Pitched HP/VMware partnership with Penton April 2012 o Review 50% VMware partners that are currently doing business with the Technology Group and target opportunities Exclusive VMware & Partner VTS Custom Newsletter 6. Product Strategy Product development will consist primarily around online and digital offerings for the initial VMware IT Pro community. We will focus our products around how-to, technical and strategic content for IT professionals with independent market authorities. Below outlines the product offerings for sponsorship and audience paid. Sponsor Products Demand Generation webinars, VTS, asset promotion and marketing programs for partner and sponsor webinars Web Site impression-based advertising sponsorship Event sponsorship elearning and in-person training and education sponsorship Blog partner with VMware and/or MS expert(s) for industry perspective Audience Paid Products Online training and elearning (5 to 6 hrs) course(s) focused on how-to education, realworld implementation/best practice o el course launch Q1,
9 Project Plans focused compiled content for VMware migration and/or implementation guides o Identify and/or acquire content launch Q4 7. Financials For 2012, we are projecting $250,000 in revenue primarily driven by sponsor advertising. The assumption is that if we can secure targeted VMware market business in 2012, we could grow that exponentially YOY. Below are the projected financials through Group 2012 Budget Revenue 2012 Budget EBITDA 2012 Budget Margin Add l Growth Revenue Add l Growth EBITDA Est Margin 2014 Est Revenue 2014 Est EBITDA 2014 Est Margin VMware 250,000 62,500 25% 5,000,000 1,250,000 25% 5,250,000 1,312,500 25% 8. VMware IT Pro Team Structure Role Named Individual(s) Role Description Technology Market Leader Peg Miller Responsible for VMware community revenue as part of Technology Group. Community Leader Evelyn Bridge Driving overall business and strategic plan. Responsible for P&L. Sales Director Chrissy Ferraro Manage sales, coordination with key partners (HP)and partner 9
10 strategy Account Manager Barbara Ritter VMware sales Editorial Director Megan Keller Editorial Strategy Plan Industry News Analyst Jeff James Market Analyst and Strategic Content Development Project Manager Jason Butterfield Web Development Project Management Director, Marketing and Analysis Tricia Syed Audience Development, Acquisition, and Marketing Events Manager Amanda Phillips Event Management and Development Marketing Communication Manager Shelli Winter Brand Management and Marketing Communication Plan 9. Supporting Information 1 WinterGreen Research, Inc., Cloud Virtualization Software Market Shares, Strategies, and Forecasts, Worldwide, 2011 to 2017, October Stewart, Vaughn, Virtual Storage Guy, Predictions for 2012, February 28, VMware to Acquire SpringSource, Press Release, August 10,
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