How to Sell. Data Center Infrastructure Management (DCIM). Learning Objectives. Explain what the market trends are Describe how to overcome objections Provide an overview of the different target buyers Outline the different DCIM competitors. Market Trends. Market Trends. Legend.
How to Sell Data Center Infrastructure Management (DCIM)
Learning Objectives Explain what the market trends are Describe how to overcome objections Provide an overview of the different target buyers Outline the different DCIM competitors
Market Trends Legend Major uncertainties Trends Increasing complexity due to higher densities and the mix of new/old technology + + Volume growth is in High-end L/XL enterprises in mature markets + Higher + Regularory Compliance in mature markets + + + + + Potential degree of impact Balance of power shift towards China dictates move to localize offer + Noise Contexts + Co-Location segment maintains strong growth + + Lower Virtualization enables Cloud for most businesses + Rising energy prices continuously drive towards green & efficiency + Lower Higher Security concern both in cyber terrorism and physical security + Certainty it will happen
What’s being said about DCIM… ”Inhibitors to DCIM adoption are cost, functionality issues, the difficulty of creating and maintaining asset databases, and commitment to simple in-house tools” The 451 Group, Tier1Research, 2011 “DCIM market is estimated to be worth $240m in 2011, growing to $1.2 bn in 2016.”The 451 Group, Tier1 Research, 2011 “Data Center Infrastructure Management (DCIM) is truly one of the only areas, where facilities and IT meet to think about the business’ backbone in a tactical and strategic manner.”IDC, 2010 “Widespread belief among data center operators that it is possible to manage data centers without physical infrastructure management tools.” APC By Schneider Electric, White Paper 107, 2011 “Energy savings from well-managed data centers can reduce operating expenses by as much as 20%.” Gartner Research, 2010
From Problem To Solution Mapping …is a priority because of …. Value Proposition Downtime Missed market opportunities, revised customer loyalties, and even failed companies. Enables proactive simulation of changes to data center infrastructure. Provides alarming to notify appropriate personnel of critical issues. Wasted Rack Space Leads to inefficiencies and capacity constraints. Assures the optimal placement of assets within the rack. Delayed Server Deployment Assures that your physical infrastructure provides the redundancy, backup time and availability required. Operationally inefficient and missed expectation Wasted Energy Provides your current & historical PUE, as well as energy & cost analysis of your subsystems The need to control operational costs Lost Man Hours Enables the capturing of the root cause of a problem and identification of the IT impact Controlling energy costs at facility level Single view of current status and alarming capability of critical issues Operating Outside of Design Parameters Inadvertent downtime
Differentiating Us From Competition Make informed decisions An intelligent model combined with live data provides a holistic view on data center operations, guides in optimal location of new equipment and details the impact of any planned changes. Dedicated Service Team The Certified Engineers have completed a rigorous training program and extensive testing process to ensure your solution is configured according to manufacturer specifications Market Leader Recognized by analysts as market leader, providing the most comprehensive package of DCIM software from asset and capacity management to business dashboards. Built on Shared Knowledge Schneider Electric designs and manufactures physical infrastructure equipment so all software is built on the shared knowledge within the organization Standard Products StruxureWare for Data Centers is a suite of standard products that can be deployed with minimal service efforts, making upgrades hassle-free while ensuring highest level of quality. We Listen to our Customers In Schneider Electric we always strive to deliver the best operating software for data center customers, and take customers issues into considering when planning the next release
Target Buyer – Facility Manager Looking to Optimize the Current Capacities of the Data Center? Need Answers to Questions Like? • What is my cooling demand/power utilization? • What is the actual capacity of the data center? • What will happen if I move equipment? • How many racks are in my data center and where are they? • What is my data center efficiency? And in PUE? • When am I going to run out of capacity (power)? • What are my physical infrastructure trends over time? • How does virtualization impact the operation of my data center? • What keeps Eric up at night? • Planning to modify or add to the installed physical layer of the Data Center • Checking the Health of the Data Center • Optimization of the Cost of Running the Data Center • Human Error/Resources • Physical Threat
Exposing the Pain of the Facility Manager Would you like to be able to monitor your entire physical infrastructure, Including 3rd party devices? How do you locate hotspots in your data center? Have you ever had an unplanned down time event? How do you determinewhere you have power/cooling capacity to deploythe next server? Sales Consultant Facility Manager How do you know where equipment is located and what applications it runs? I’ve got some questions for you How do you keep track of current capacity andforecast future needs? Do you tell “IT”about the new power setups? Do you have skilled resources with the bandwidth to configure the data center management solution? How are you notified of problems in your data center before they become critical? How do you know how efficient your data center is, down to the server and CPU-level?
Target Buyer – IT Manager Looking for Guidance on Where toInstall the Next Rack-Mount Equipment in their Data Centerwithout Violating Capacity Limits(i.e., Power, Cooling, Space, etc.) Need Answers to Questions Like? • Will this new server impact my SLA or capacity plan? • Will I cause downtime if I move this piece of equipment? • What is the power draw on this piece of equipment? • What is the available kW power at the rack level? • Which of my servers run Windows 2003, service pack 2? • Have I maintained my planned redundancy? • Do I need to spread out my blade servers to ensure reliable operation? What Keeps Jeff Up at Night? • Availability of physical infrastructure to support servers and other IT hardware to meet the business needs • Power, cooling, and space • Redundancy • Human Error/Skilled Resources
Exposing the Pain of the IT and Operations Manager How do you forecast workload and future investment to Sr. Mgt.? How do you know the potential impact of changes? What do you do when you need more serversin your data center? How do you keep trackof remaining capacity andforecast future needs? Sales Consultant IT Manager Do you tell “facilities”about the content of thenew servers? I’ve got some questions for you How do you know which servers run Windows 2003, service pack 2? Where do you store your IT asset’s lifecycle information? Do you know what IT assets you have and how much capacity they are running at? Do you have skilled resources with the bandwidth to configure the data center management solution? How is your data center set up to handle virtualization and cloud based technology?
Need To Value Map For The IT Manager “When unplanned downtime causes loss of business due to unexpected cooling needs…would it help if you had the ability to predict the expected life of the data center based on growth trends of power, cooling, and space?”
Target Buyer—CFO/CIO Looking for Financial Impact and How to Reduce Unplanned Downtime • Need to answer questions like… • Have we met our regulatory requirements? • What is the cost of running a data center? • What is the expected life of the data center? • How do you measure your data center’s performance? • How do you know if an energy efficiency • initiative succeeded? • How do you currently negotiate power supply contracts with utilities? What keeps Chris up at night? • Expected life of the data center • ROI of the data center? • Uninterupted Service delivery
Keeping Customers Happy Software Support Contracts and Hardware Warranties Why sell Software Support Contracts? Complete support for the entire product operational life Mandatory for any technical support Mandatory for any software version upgrades (which are free) Industry standard for any software purchases – customers expect to have ongoing support 24x7 toll-free assistance for EMEA and U.S. 8x5 support for LAM, APJ and GCN Tracks service registration along with the service expiration date Peace of mind Add-on sales opportunity What do I sell? Support for the 25 base nodes received free with each StruxureWare Expert Support for all additional license keys purchased Hardware warranties for new servers and any that have fallen out of warranty (optional)
Keeping Customers Happy Software Service Why sell Software Services? Schneider-Electric Certified Engineers Deep technical skills and manufacturer best practices Minimize risks Leverage your software management solution as quickly as possible. Peace of mind Add-on sales opportunity Optimized solution through industry best practices Using Schneider-Electric Global Services ensure customer IT resources are available to handle their day to day needs. What do I sell? Schneider-Electric offers Standard , Pick to Order , and Customized services to implement the complete data center management solution.
Handling Questions • I have a non-Schneider data center; can I still use the StruxureWare for Data Centers Software solution? • Yes, the portfolio supports multi-vendor equipment. • Can your software manage cooling capacity for perimeter equipment? • Yes, the portfolio supports any type of cooling equipment from any manufacturer. • Can StruxureWare Data Center Operation run without StruxureWare Expert? • Yes, however, we do recommend running StruxureWare Expert for monitoring purposes. • Must I have a maintenance contract for both StruxureWare Expert and StruxureWare Data Center Operation for year one? • Yes, our goal is customer satisfaction and we believe access to new features and bug fixes is necessary to achieve this goal. • I don’t want to set up the system; can Schneider Electric or a partner do this for me? • Yes, there are various service installation and configuration offerings from which to choose. • What are the requirements for installing StruxureWare Data Center Operation? • For 7.0 and onwards you must purchase a new server in order to run StruxureWare Data Center Operation.
Market status and outlook 2012 Customers DCIM market Vendors Challenge to raise money (VC) Volume growth is in High-end L/XL enterprises in mature markets DCIM market growth and size 2012: $332M with 34% growth* (IDC, 451-group, =S=) • Trellis will be delayed again or reduced scope • Framework positioning good for us • Close to Oracle? 60+ start-ups and DCIM adopters DCIM category is growing in popularity and ‘hyped-up’ Commercialization of DCIM technology challenges start-ups who are on the verge of bankrupcy leading to innovations up for grabs • High burn rate – running out of cash? • Funding issue ( More VC, IPO, pick-up by Eaton, BMC) New economies continue to show growth potential but from low volumes Confusing category - still lacking clear definition • Verticals • Finance • Co-los • Government • Health care • Will see them more in AMS+APJ and perhaps EMEA New entrants • Picked up by Visual Design Sol. for $3.2M • Struggle
Data Centers Become Larger Extending our PAM to include L/XL market • Adding the “46% share” • Fortune-500 companies • Customers with multiple sites • Data centers with 800 racks or more • Data centers with high redundancy and availability needs • Follow ISX (SME), Schneider (L/XL) and software (ALL) opportunities
Hit where the opponent is weak Avoid and disable opponent strengths
Competing... • Be Honest and Trustworthy • Approach • Learn all about the Business • Know What Makes Your Customers Buy • Identify the Weakness’ of Your Competitors • Determine Your Vulnerable Spots • Practice Your Closing Techniques • Promote • Keep Your Eyes on the Ball –Solving the Customer’s Problem • Our Strengths • Competitor Weakness’ • Avoid • Falling into the ”Feature-to-Feature Ditch” – Drive the Customer in your Direction • Technical derail • Our Weakness’ • Comptitor Strengths
Competitive moves Partial Product Suite New Entrants Main threats Data Center Life Cycle Solutions (DCIM + Services) • Promote a DCIM Solution • Highlight our modular • Ease of implementation • Become the trusted advisor Key differentiators & how to win Modular, Scalable Approach Ease of Implementation (Certified Engineers) Become a Trusted Advisor
Developing an ROI • Return On Investment (ROI) • An attempt to cost options to work out cost/benefit in money terms of options Assume Option A = Do Nothing vs. Option B = Our solution • Must know or estimate this • Remember to set a value to pains and make customer agree • How does ROI compare to TCO (Total Cost of Ownership)? • Find the pain points / Understand customer’s pain • White board selling • Ask open-ended questions • Questioning to find the cost • Resist pressure to present the solution / price before uncovering the cost of Option A “Do Nothing” • Customer will likely resist - They want to tell you the solution • Avoid discounting • If you have to discount, get something in return
Sales Tools • Training • DCIM Software Overview • DCIM Software How to Sell • StruxureWare Data Center Operation Product Overview • Presentations • StruxureWare Data Center Operation - Customer Facing • StruxureWare Data Center Operation - Family Presentation • Service • StruxureWare for Data Centers Software Configuration Suite Statements of Work • StruxureWare for Data Centers Software Configuration Suite - Quick Sales Reference Sheet • White Papers • #107: Data Center Infrastructure Management Software Improves Planning and Cuts Operational Costs • #150: Power and Cooling Capacity Management for Data Centers • #66: Estimating a Data Center’s Electrical Carbon Footprint • http://www.youtube.com/watch?v=IVzxxRwTdD0 • apc.com/softwaredcimsupport.apc.com • blog.schneider-electric.com/datacenter