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Pick Up Your Game Seismic MSP and Cloud Computing Seminar. Cloud Computing and the Channel. Smart. ™. “It’s already happening. We are being asked today. The end-users are introducing the Cloud conversation. We were shocked and caught off guard”.

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Pick up your game seismic msp and cloud computing seminar l.jpg

Pick Up Your GameSeismic MSP and Cloud Computing Seminar

Cloud Computing and the Channel

Smart.™


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“It’s already happening. We are being asked today. The end-users are introducing the Cloud conversation. We were shocked and caught off guard”


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Key Findings in a Recent Study Commissioned By Microsoft

  • Of the SMBs that view IT as critical, 60% saw revenues grow over the past 12 months.

    • In contrast, among SMBs that stated IT is not important, less than 29% saw revenue increase.3

  • Awareness of hosted services is increasing with 65% of SMBs using hosted software to some extent, while 73% of the remainder have considered it, compared with only 44% in the 2008 Index.

  • SMBs are beginning to understand the value of “renting” IT as a service — 36% said a pay-as-you-go model would be attractive


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WW IT Spending1 is Projected to Grow from $376B in 2009 to $460B by 2013

  • WW IT Cloud / SaaS is projected to grow $17B in 2009 (5% of the total) to $44B in 2013 (10% of the total) or CAGR of 26%

  • ~25% of the overall IT growth will come from Cloud / SaaS offerings

460

5% CAGR

(10%)

376

26% CAGR

(5%)

(90%)

4% CAGR

(95%)

Source: Cloud Computing 2010, IDC, 9/29/09 and Worldwide Black Book Q3 2009, IDC

(1) IT spending includes only applications, infrastructure software, application development / deployment, servers, and storage; but excludes IT services, client systems (personal computers and smart handhelds), telecom equipments, peripherals & add-ons, and telecom services


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Delayed Refresh Cycle Accelerates Cloud Adoption

Accelerated Cloud Adoption in next refresh cycle

Prolonged / Delayed refresh with economic slowdown

Typical 4 Yr. Refresh Cycle

Refresh in 2008 and 2009

Would have been premised based

2006

2007

2009

2011

2014

2010

2008

2012

2013


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How Is Your Company Viewing the Cloud Computing Movement

Or

Opportunity?

Threat?


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Is your company positioned to take advantage of the opportunities associates with cloud computing?

Has your organization discussed how it can be MORE relevant, add MORE value to end-users, and make MORE revenue and profit with cloud computing?


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Reseller Business Model Progression


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Early Days Managed Services Growth

  • Less MSP competition in the early days; limited end-user price pressure

  • MSPs become much more profitable when realizing economies of scale and using remote tools and repeatable processes

  • In the past two years in particular there has been an incredible amount of MSP training and education in the channel

  • This has helped existing MSPs be more successful, but has also helped many more MSPs enter the market


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Managed Services Growth

  • New MSPs start-ups popping up in the local areas

  • Competition from telcos, retailers, OEMs, MSP franchises…

  • Primary focus for MSPs has been desktop, server, and basic network monitoring and management

    • Typical “all-you-can-eat” managed service contract includes Help Desk, some on-site time, AV/AS, remote back-up, etc.


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How Will Your Company Stay In Front?


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Copyright 2008 by Desicolors


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Managed Services: A Countercyclical Market

  • Economic slowdown and decreasing corporate revenue & profit has forced mid-market business to cut or contain operating costs and headcount in non-core competencies

  • The operating costs and headcount of sizable end-user IT ‘kingdoms’ have been scrutinized

  • End-users IT ‘kingdoms’ who long resisted IT outsourcing for certain functions have been forced to work with solution providers and MSPs

  • End-users are more apt to listen, to give MSPs the opportunity to show how IT can solve business problems, increase productivity, and reduce costs


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As the Economy Rebounds…

  • Mid-market to enterprise companies have downsized IT and partnered more with solution providers and MSPs

    • Contracting, out-tasking, co-sourcing, etc.

  • When the economy rebounds, will those enterprises start hiring IT heads and building their internal IT kingdoms again???

    Can end-user IT department possibly hire expertise for all of the emerging complex IT environments demands?


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Unified Communications

IT Security

Cloud Computing

Wireless

Business Continuity & Disaster Recovery

Green IT


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End-user IT Departments Facing Increasing Complex IT Environments

  • Can end-user IT department possibly hire expertise for all of the emerging complex IT environments demands?

  • End-user IT personnel should be focused on what is core and proprietary to their particular business

  • Today’s increasingly complex IT environments cannot be adequately maintained for competitive advantage by end-user IT generalists

    (Jacks of All Trades; Masters of None)

  • How many bodies would an end-user need to employ to have specialized talent in virtualization, security, UC, wireless, compliance, cloud, business continuity, etc.???

  • Engineers at solution providers can be much more specialized (read: trained and certified) in various technologies than end-user IT personnel


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In Summary…

  • Can end-user IT department possibly hire expertise for all of the emerging complex IT environments demands?

  • Solution providers and MSPs are in the door

  • You’ll stay in the door

  • End-users will continue to need specialized high-end IT talent

  • They’ll need you more than ever, and need you to do more than basic desktop, server, and network monitoring and management

  • Become a partner of the end-user IT organization by “co-souring” or “share-sourcing” rather than completely taking over IT and being the “Virtual CIO” as is the case in the small business market

    • The key word here is “specialized” – MSPs and SPs will need to stay on the bleeding edge and bring higher value-add technical skill sets to the table


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“Hybrid Model”


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Foundation + Specialization

VoIP / UC

Security

Wireless

Data Center

Enterprise Storage

Virtual-ization

Add-on applications and services

Desktop, Server, Network Management

Service Desk / SPOC


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“Hire, Train, and Optimize”

  • By partnering with Ingram Micro, a reseller can “Hire, Train, and Optimize” their most important company asset and competitive advantage: human capital and highly specialized technical talent

  • Hire: Ingram Micro’s IT Staffing specialists provide affordable temporary and full-time recruiting and placement services for sales and technical talent

  • Train: Invest in human capital, create competitive advantage, increase billable rates, and become more relevant to end-users businesses by training engineers with higher levels of vendor technical certifications through Ingram Micro Training Academy (VPN Dynamics)

  • Optimize: As engineers become highly specialized and certified in complex vertical technology categories, resellers can leverage resources from Seismic and IMSN to access labor to perform rudimentary functions such as basic Help Desk support, low-end desktop and server management, and break-fix


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Hire

  • Hiring the right kind

  • Hiring the right number

  • Hiring the right way

  • Ingram Micro IT Staffing Services


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Train

  • Train up the food chain

  • Increase billable rates

  • Differentiation / competitive advantage

  • Relevance to larger companies with IT organizations


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Ingram Micro Training Academy

  • “Powered by…” VPN Dynamics, a wholly owned subsidiary of Ingram Micro

  • VPN Dynamics offers World Class, technical certification training in key technologies: Networking, Security, Server Virtualization and Wireless

    • Cisco Data Center, Vmware, Juniper, SonicWall, and Check Point authorized training

  • VPN Dynamics offers classroom, custom on site, and Live Online, instructor led, training solutions

  • Live Online Training

    • Always led by live instructors

    • Guaranteed to Run

    • Live remote labs (Instructors view in real-time)


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Optimize

  • Most important company asset: human capital

  • Specialization allows for engineers to focus on high-end work, increasing competitive advantage

  • Share-sourcing commoditized services

  • Third-parties for remote services

  • Master MSPs for services infrastructure

  • Partner networks for on-site feet on street


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Free your engineers, let them run to the next project


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Managed Services and Cloud Computing

  • Managed Services

    • Virtual CIO / IT road-mapping

    • Remote back-end desktop, server, and network management, including Help Desk

    • Onsite services when necessary

    • Cloud Computing services, most popular include:

      • E-mail filtering and desktop security

      • Remote back-up / BCDR

      • Hosted Exchange


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Cloud Computing Defined

  • Cloud Computing includes (WHAT):

    • Infrastructure as a Service (IaaS)

    • Platform as a Service (PaaS)

    • Software as a Service (SaaS)

  • And can be accessed from (HOW):

    • Private Clouds

    • Public Clouds

    • Hybrid Clouds

  • With characteristics which derive benefits of (WHY):

    • On demand, for speed of deployment and availability

    • Elastic, for scalability, capacity and flexibility

    • Fully managed, for low management expense and high security


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Defining Cloud Computing

  • Cloud computing is a general term for anything that involves delivering hosted services over the Internet

Key offers: software with low implementation hurdles, variable cost structure, quick time to market

Key success factors: point solutions with “good enough” features, compelling TCO, limited IT involvement

Software as a Service - SaaS

Key offers: full stack of IaaS management tools (e.g. authentication, billing, metering), dynamic provisioning of components

Key success factors: network effect from developer community, platform brand and number of users. TCO advantages

Platform as a Service - PaaS

Infrastructure as a Service - IaaS

Key offers: CPU cycles, GB of storage, network connectivity

Key success factors: variable cost structure with lower TCO, reduced need for infrastructure IT staff

Sources: “Cloud Computing Infrastructure: Market Trends” – McKinsey & Co


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In Complexity There is Opportunity

  • The complexity and pace of change of Cloud Computing will create new opportunities for resellers to add value to end-clients

  • Solution providers will continue their evolution from product resellers to business and technology consultants

  • A segment of the solution provider community is already starting to develop a Cloud Computing expertise and branding themselves as “Cloud Computing Consultants” or “Cloud Solution Providers”

  • They will help end-users understand when and how to leverage private, public, and hybrid clouds according to their business models and requirements


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Solution Provider Opportunities

  • Overcoming an objection to Cloud Computing “portability” – solution providers will guarantee the virtual machine will be moved to the end-users business.

  • Opportunities now for solution providers to earn professional services and consulting dollars helping end-users demystifying cloud computing and determine best options for their business

  • VARs can add value to existing cloud servicers through integration, customization, deployment, consultation, App/Dev, etc.

  • VARs can provide a choice to end-users, with minimal capital expense investment by leveraging existing cloud infrastructure


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Recent Cloud Computing Success Story For the Channel


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“Acumen Launches Cloud Computing Solutions for Government”

Acumen Solutions announces dedicated Public Sector Cloud Computing Practice, offering customized SaaS solutions to government agency

  • Acumen Solutions announced the launch of a dedicated Public Sector Cloud Computing Practice to offer customized SaaS solutions to meet the requirements of government agencies.

  • “Government, like business everywhere, is embracing cloud computing," said Daniel Burton, Senior Vice President of Global Public Policy for salesforce.com. "Acumen Solutions is one of our foremost systems integrators specializing in cloud computing solutions for the government. As a leading consulting partner, they are blazing the trail for excellence in how government can leverage the cloud for responsive service, innovative solutions and cost-effective apps.”


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Let’s Recap

  • Solution provider wins the business

  • For a “direct” SaaS vendor application

  • In the public sector

  • By adding value with integration and professional services


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Opportunities for Solution Providers

  • Assessing alternatives to traditional h/w and s/w licensing at renewal and refresh

  • Security monitoring and measuring, on behalf of end-users, particularly with public clouds

  • Cost savings / TCO assessments

  • Consulting appropriateness of private vs. public vs. hybrid clouds

  • Resale of white-labeled hosted solutions

  • Agent models

  • Customization of apps on Platforms

  • Vendor management


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Getting Ahead of the Market

  • Initiate the conversations

  • Start to brand your company as a cloud computing consultancy. Update your marketing materials.

  • Take advantage of the buzz around those two words to do some demand generation and get new leads

  • “Cravings for Savings, Make Haste with their Waste”

  • Defensive: Defend your Turf

  • Offensive: Land Grab

    • Lock in end-users on contracts – get them entangled


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Getting Ahead of the Market

  • “The Power of Choice”

  • Be positioned to offer the Cloud alternative

  • Begin to identify vendor partners in each category of Cloud Computing: IaaS, SaaS, PaaS

  • Formalize Cloud Computing vendor evaluation and selection attributes and process

  • Write this website down:

    • http://cloudcomputing.sys-con.com/


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“We are already giving two proposals to every end-user. One for hardware & software license based options, and for fully hosted Cloud options. Let them choose.”


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  • Out of clutter, find simplicity.

  • Out of discord, find harmony.

  • In the middle of difficult, lies opportunity.

    ALBERT EINSTEIN

    three rules of work


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Save the Date

  • Ingram Micro Inaugural Cloud Summit

  • Monday, June 7th

  • Dallas, TX


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For questions, pricing, or other information,

please call your Ingram Micro Seismic sales rep at

1-800-705-7057, option 5 (US)services@ingrammicro.com

1-877-755-5002, option 1 (Canada)services@ingrammicro.ca

Thank you!

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