channel challenges amid the cloud evolution: moving from point product to solution sale insights...
DESCRIPTION
This webinar originally aired on Tuesday, July 29, 2014, and provided a guided recap and analysis of quarterly trends in data center servers, storage and networking as reported in TBR’s Data Center Benchmark. Data center hardware vendors will face a growing set of channel challenges as they expand portfolios and capabilities to more effectively accommodate customers’ cloud requirements. Not only must partners rapidly come up to speed on the products themselves, but also they must adapt their marketing and sales capabilities to include cloud. With some partners accustomed to selling hardware and point solutions, hardware vendors must closely examine their overall partner engagement — including training — to help partners make the transition. Content Manager Christian Perry and Analyst Krista Macomber shared their perspectives on results from TBR’s latest Data Center Benchmark and provided webinar attendees with additional insights into vendor performance and the future of the data center market. They then fielded questions from the audience related to this research. Questions for discussion will included: • What channel challenges do data center hardware vendors face as their portfolios increasingly include cloud solutions? • What best practices are vendors using to bring channel partners up to speed on evolving, cloud-focused portfolios? • What are channel partners doing to improve solutions sales, particularly those that include cloud elements?TRANSCRIPT
TBR
TECHNOLOGY BUSINESS RESEARCH, INC.
Channel Challenges Amid the Cloud Evolution
Insights from TBR’s 1Q14 Data Center Benchmark
July 29, 2014
TBR
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Insights from TBR’s 1Q14 Data Center Benchmark: Webinar Presenters
Christian PerrySenior Analyst and Content Manager,Data Center
Email: [email protected] Twitter: @ITWriter
Krista MacomberAnalyst, Data Center
Email: [email protected] Twitter: @klmacomber
TBR
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Insights from TBR’s 1Q14 Data Center Benchmark: Webinar Agenda
• Insights from TBR’s 1Q14 Data Center Benchmark: Channel challenges
Market Trend
• Insights from TBR’s 1Q14 Data Center Benchmark: Market outlook• Servers (x86/proprietary)• Storage• Networking
2Q14 Vendor Performance
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Channel Challenges Amid the Cloud Evolution
TBR
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Solutions vendors are lifting the barriers to channel sales as customers increasingly approach purchases with an ecosystem-holistic mindset
Insights from TBR’s 1Q14 Data Center Benchmark: Market Trend
Before channel partners evolve their sales and marketing approaches, they
must become familiar with increasingly complex solutions from vendors.
Solutions-enabled Channel
As OEMs including HP and Dell evolve their sales approaches to better define and articulate
the improved business outcomes of solutions, they
must also train partners to do the same.
With the goal of simplifying deployment and management while improving workload performance, IT decision makers are increasingly purchasing
data center hardware with a focus on solutions.
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Effectively enabling the channel to handle solutions requires a targeted blend of programs and education
Insights from TBR’s 1Q14 Data Center Benchmark: Market Trend
• A balance of overarching program umbrellas• Expanded financing support• Expanded access to solutions and services• Training courses, certifications, product demos
and more • Enhanced go-to-market training
OEMS are empowering the channel to sell solutions through:
Simple/Predictable
EngagementPortfolio AccessSolution
CertificationCoselling
Go-to-Market
Training
Financing
Solutions-enabled Channel
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Insights from TBR’s 1Q14 Data Center Benchmark: x86 Servers
Revenue growth leaders Lenovo and Cisco lean on their PC and networking businesses, respectively, to capture server opportunities
Data center hardware vendors target adjacent portfolio pieces to drive x86 server sales
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Insights from TBR’s 1Q14 Data Center Benchmark: Proprietary Servers
IBM, Oracle and Fujitsu are working to stem heavy revenue losses in a continually declining proprietary server marketplace
Oracle stabilizes its proprietary server revenue base by focusing solely on converged solutions that accommodate data and cloud workloads
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The struggling storage hardware market reflects the impact of cloud, efficient software management and an aggressive competitive landscape
Insights from TBR’s 1Q14 Data Center Benchmark: Storage
Storage vendors are investing in fast-growing hardware areas that can be quickly monetized, including flash and converged storage
Dell
Bull
EMC
HDSFujitsu
HP HuaweiIBM
Lenovo
NEC
NetApp
Oracle
Quantum
20%
30%
40%
50%
60%
70%
-30% -20% -10% 0% 10% 20% 30%
Stor
age
Gro
ss M
argi
n
Storage Revenue Year-to-Year Change
1Q14 STORAGE REVENUE GROWTH VS. STORAGE GROSS MARGIN
NOTE: SPHERE SIZE REFLECTS VOLUME OF REVENUE.SOURCE: TBR AND COMPANY DATA
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Vendors scramble to adjust their portfolios as data center networking begins a transition to software-led control
Insights from TBR’s 1Q14 Data Center Benchmark: Storage
Revenue growth leader Huawei builds on its strong China presence to expand in EMEA
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TBR Outlook for 2014:Hardware Vendor Analysis
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Data center complexity is creating change: Customers are willing to purchase alternative architectures to simplify infrastructure management and boost operational efficiency.
Proprietary servers see new life: IBM and Oracle are working to keep proprietary servers top of mind for customers seeking high performance and reliability.
Software-defined storage (SDS): The shift to SDS will be incremental, but vendors must move now to prevent isolation.
Data center customers are seeking alternative infrastructure to help curb complexity in their environments
Insights from TBR’s Data Center Coverage and Research: Market Outlook
Hardware Vendor Outlook for 2014
TBR
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HP and Dell are positioning to ride an adoption wave as customers seek new architectures to help them better manage their environments
• Complexity in managing heterogeneous environments is driving data center customers to buy converged systems and hyperscale servers. These markets will continue to grow as customers perpetually face that challenge.
• HP’s joint venture with Foxconn positions the OEM for growth in the cloud hyperscale server market, which will augment its early strength in the enterprise hyperscale market.
• Dell’s OEM partnership with Nutanix broadens Dell’s SDS and converged storage capabilities and strengthens its ability to provide solutions to a data center customer base that looks holistically at hardware purchases.
Highlights: TBR Data Center Coverage and Research
Insights from TBR’s Data Center Coverage and Research: Market Outlook
TBR
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Data center complexity is creating change: Customers are willing to purchase alternative architectures to simplify infrastructure management and boost operational efficiency.
Proprietary servers see new life: IBM and Oracle are working to keep proprietary servers top of mind for customers seeking high performance and reliability.
Software-defined storage (SDS): The shift to SDS will be incremental, but vendors must move now to prevent isolation.
An increased focus on data will help proprietary server vendors weather the ongoing commoditization storm
Hardware Vendor Outlook for 2014
Insights from TBR’s Data Center Coverage and Research: Market Outlook
TBR
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Oracle and IBM are uncovering methods to keep their proprietary portfolios alive in the face of hardware commoditization
• Proprietary server revenues continue to decline year-to-year, but vendors (particularly IBM and Oracle) are finding ways to keep their technologies relevant.•Data center customers rely on converged systems for data-
centric workloads more than on other workload types. Oracle’s Engineered Systems portfolio is well equipped to accommodate these requirements in a rapidly expanding market.• IBM will have a clear server path ahead when the Lenovo
deal is finalized, giving the vendor the ability to sell into customer environments without the fear of limiting System x engagements. IBM has a strong opportunity to grow its Power install base through the OpenPower Consortium.
Insights from TBR’s Data Center Coverage and Research: Market Outlook
Highlights: TBR Data Center Coverage and Research
TBR
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Proprietary servers see new life: IBM and Oracle are working to keep proprietary servers top of mind for customers seeking high performance and reliability.
Software-defined storage (SDS): The shift to SDS will be incremental, but vendors must move now to prevent isolation.
SDS is entering customers’ radars, prompting vendors to invest to secure their future relevancy
Hardware Vendor Outlook for 2014
Insights from TBR’s Data Center Coverage and Research: Market Outlook
Data center complexity is creating change: Customers are willing to purchase alternative architectures to simplify infrastructure management and boost operational efficiency.
TBR
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Despite the lack of clear customer use cases, SDS will penetrate data centers and change the storage landscape
• Hardware commoditization continues to pull customer focus from hardware to software. However, SDS growth will be incremental over the next several years, particularly as organizations seek qualified personnel to manage the new technologies.
• EMC, Dell, HP and other vendors will need to justify the TCO of SDS solutions to customers who are accustomed to the traditional management and life cycle of standard array systems.
Insights from TBR’s Data Center Coverage and Research: Market Outlook
Highlights: TBR Data Center Coverage and Research
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Questions?
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Insights from TBR’s 1Q14 Data Center Benchmark: Contact Information
James McIlroy Vice President of SalesEmail: [email protected]: 603.929.1166
Twitter: @TBRincSlideShare: www.slideshare.net/TBR_Market_InsightYouTube: www.youtube.com/user/TBRIChannelLinkedIn: www.linkedin.com/company/technology-business-research
Christian PerrySenior Analyst and Content Manager, Data Center
Email: [email protected] Twitter: @ITWriter
Krista MacomberAnalyst, Data Center
Email: [email protected] Twitter: @klmacomber
TBR
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Computing Practice Syndicated Research Coverage
Device Benchmark Vendors(Benchmark XLS data is also available)
Data Center Benchmark Vendors (Benchmark XLS data is also available) Computing Vendor Coverage
• Acer*• Apple• Asus*• Dell• Fujitsu• HP• HTC• Huawei• Lenovo
• LG• Motorola*• Nokia*• Panasonic*• Samsung*• Sony• Toshiba• ZTE
• Brocade• Bull• Cisco• Dell• EMC• Fujitsu• HDS• HP
• Huawei• IBM• Juniper• NEC• NetApp• Oracle• Quantum• Unisys
• Acer*• Apple• Asus*• Dell• EMC• Fujitsu• HP• IBM• Intel• Lenovo• NetApp• Samsung*• Sony• Toshiba
Corporate IT Buying Behavior & Customer Satisfaction Studies
• Apple Enterprise PCs*• Cisco UCS*• Desktops
• Notebooks• Services & Support• x86-based Servers
TBR Computing Practice Syndicated Coverage
*Semiannual publication
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