how to leverage business partners migration to saas / cloud
DESCRIPTION
This presentation was prepared as background material for 2009 Channel Focus Europe [22/23 october - see www.baptie.com]. In a session entitled "How to Leverage Business Partners' Migration to SaaS / Cloud", Loic Simon shared IBM's Club Alliances experience on leveraging business partners migrating to a SaaS/Cloud based business model. After a quick summary of SaaS and Cloud challenges for Vendors and their Business Partners, he delivered a point of view on SaaS/Cloud distribution and influence channels and shared his hands-on experience as the leader of "Club Alliances" [www.cluballiances.com]. Club Alliances members leverage cloud computing, SaaS and BPO [business process outsourcing] models to promote and deliver business solutions, "as a service". Their "Solutions as a Service" are typically powered by IBM IaaS [Infrastructure as a Service] or PaaS [Platform as a Service] components. Aknowledgments : Among various materials borrowed from key specialists on the topic [thanks to all of them : Lustratus, Gilwell Group, Saugatuck...], Loic specifically leveraged some slides from presentations prepared by Philippe Martinez - Philmart - and Laurent Glaentzer - Lemon Operations, two members of Club Alliances who deliver their channel expertise to their fellow Club Alliances members.TRANSCRIPT
How to Leverage Business Partners’ Migration to SaaS/Cloud ?
Loic [email protected] +33 6 76 75 40 71
http://www.linkedin.com/in/loicsimonibmhttp://www.twitter.com/cluballiances
http://www.cluballiances.comBusiness Development Executive - Club Alliances
Business Partner Organization - IBM France
Agenda
3
Creating & Leveraging SaaS/Cloud ChannelsCreating & Leveraging SaaS/Cloud Channels
Questions & Discussion !Questions & Discussion !
Cloud/SaaS : Situation & ChallengesCloud/SaaS : Situation & Challenges
Club Alliances : Lessons & Perspectives Club Alliances : Lessons & Perspectives
Cloud Computing – a NIST* Definition
« Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction ».
* National Institute of Standards and Technology [US]
What is driving Cloud Computing ?
Fast growth of connected mobile
devices
Skyrocketing costs
of power, space,maintenance, etc.
Advances in multi-core
computer architecture
Explosion of data intensive
applications on the Internet
Growth of Web 2.0-enabled PCs, TVs,
etc.
• Technology advances that support massive scalability & accessibility
• Emergence of data intensive applications & new types of workloads
- Large scale information processing, i.e. parallel computing
- Web 2.0 rich media interactions
- Light weight run anywhere web apps
Description of Cloud Computing
Despite the hype, few customers are adopting cloud today
Source: MI analysis; Gartner, “User Survey Analysis: Cloud Computing Requires More Education and Specific Approaches in 2009,” June 2009; N=473
26%
19%
17%
16%
10%
7%
4%
1%
0% 10% 20% 30%
We are researching cloud computing and trying to see if and where it might benefit us
I have not heard of cloud computing
We have looked into cloud computing and don't expect to develop any plans related
to it or to get involved with it in 2009I have heard of the term but don't know
what it meansWe have done research and are waiting to
see what cloud-computing providers emerge before we determine any kind of action planWe have already developed a plan or plans
related to cloud computing and will be implementing them in 2009
We expect to develop a plan related to cloud computing in 2009
Other
When it comes to cloud computing, which statementmost closely describes the situation within your organization?
Only 11% of respondents have a plan or are implementing cloud computing initiatives in 2009
71% of respondents are unfamiliar or are in the education phase.
Portion of survey respondents
Planning orimplementing
EducatingNot interested
or waiting
Buyer Behavior
Companies like IBM are rapidly growing their Portfolio of Offerings across Cloud framework
Clo
ud
Eco
syst
emC
on
sult
ing
Ser
vice
s
Infrastructure-as-a-Service
Business Process-as-a-Service
Application/Software-as-a-Service
Platform-as-a-Service
EnterprisesSMB
Internet / Intranet
Service Providers
LotusLive
MBPSOfferings
InformationProtectionServices
Virtual Cloud Storage
Desktop as aService
Computing On
Demand*
DB2 Websphere Rational
TivoliSoFS Security
CloudSvcs
TestCloud
SEP
SecurityCloudSvcs
RMIS / eRMIS
AOD*
The majority of RSIs/ISVs in Europe use or plan to use SaaS or Appliances to deliver Software
Overall Adoption Status of Alternative Delivery Methods (SaaS or Appliances)
78
50 48
4
56
39
57
7
95
6151
1
83
49
37
5
0102030405060708090
100
Completed Current/Planning Considering Not Considering
Total
UK
Germany
Italy
%
« Longer-term acceptance of SaaS for mission-critical business processes is growing -- not only with SMB customers, but Large Enterprises »Source : Saugatuck 2008
SaaS : Not only for CRM & Collaboration!
« Although collaboration and CRM continue to lead the SaaS charge, "core" systems of record (e.g., finance, HR) and BI / CPM are growing quickly as well ». Source : Saugatuck 2008
Market moves to « Everything as a Service » !
SaaS ISV Context : The Big Switch !
ISV embracing SaaS face Challenges in many Areas
SaaS SolutionDelivery
[Run]
SaaS Solution Enablement
[Build]
SaaS BusinessIntegration
[Implement]
Integration
Change Management
BusinessConsulting
InfrastructureArchitecture
DevelopmentPlatform [PaaS]
ApplicationArchitecture
Managed Services
DeliveryPlatform [IaaS]
Delivery Architecture
SaaS BusinessDevelopment
[Sell]
Lead Generation& Pre-Sales
PartnersRecruitment &
Enablement
MarketingStrategy
SaaS Business Model
[Package]
SaaS Operations & Customer
Service
Marketing &DistributionChannels
SolutionPackaging
Need for :Expertise [Consulting, Models, Templates…]
& Services [Support, Skills, Resources, Platforms…]
HCM
Major key Challenges include :
• Financing of SaaS Business • High expense to revenue & profitability issues in first years• Business Model migration & Culture changes• SaaS revenue recognition• Evolution of existing Partnerships
Moving from « products » to « services », from « projects » to « annuity »…
• Client/Server
• Upfront revenue
• Significant margins
• Established GTM/distribution model
• Project integration require PS capabilities
• CIO budget
• Web-native Service Enabled Application Platforms -SEAP-
• Monthly subscription fees
• Low margins
• Role of partners not clear
• Turn-key solution with little integration requirements
• Functional budgets
SCENE
On-premise Applications Market SaaS Applications Market
• Clear GTM model from vendors
• High margins
• One/Two tier models in place
• Importance of SI’s
• Distribution with little value-add
• Clear rules: MDF, Coop, etc.
• Customers can contract directly with vendors
• Low margins, from monthly fees
• Who does what?
• Turnkey solutions, agile integration projects
• PS automation
• Light contractual environment
• Vertical market integration
SCENE
On-premise Applications Market SaaS Applications Market
Migration from VAR/SI to Business Integrator !
• "For traditional partners who made their money on finding IT complexity and solving it, a lot of that goes away with Software as a Service."
Darren Bibby, IDC
• Make yourself essential to customers by lending business process expertise to improve their SaaS experience.
• Make yourself indispensable to SaaS manufacturers top line revenue production with your sales, marketing and referral capabilities.
• Provide system integration to legacy applications and across customers SaaS systems
"The Emerging SaaS Channel", 2007 IDC research report
Agenda
22
Creating & Leveraging SaaS/Cloud ChannelsCreating & Leveraging SaaS/Cloud Channels
Questions & Discussion !Questions & Discussion !
Cloud/SaaS : Situation & ChallengesCloud/SaaS : Situation & Challenges
Club Alliances : Lessons & Perspectives Club Alliances : Lessons & Perspectives
SaaS : Need for Integration & Customization Partners
24
Will use MSPs as SEAP hub for customers
Will build their own completeSEAP solution
Will take off-the-shelf HW/SWand propose customizedsolution platform
Will recommend IT solutionsto their customers (virtual CIOs)
Will recommend businesssolutions to their customers
Assemblers
Consultants
Vendors
TrustedBusinessAdvisors(TBA’s)
• CPA’s• Accounting Firms• Outsourced CFO Firms• Web-Designers (B2B, B2C)• Marketing Consultants• Venture Capital & Investment Firms• Current Webex Customers• IT Consultants• Management Consultants• Green IT Consultants• Lawyers
Aggregators
25
Partner Ecosystem
Application Environment
FunctionalEnd-User
Customers(non-IT)
IT Environment
SaaS/Cloud Distribution & Influence Channels will take various forms…
… including « Vertical Channel »
… with various and complementary roles
SaaS/Cloud Ecosystems
SaaS/Cloud Ecosystems
SaaS/Cloud Actors : « Augmented Reality » !
Multiple Business Models, blurred !
Agenda
33
Creating & Leveraging SaaS/Cloud ChannelsCreating & Leveraging SaaS/Cloud Channels
Questions & Discussion !Questions & Discussion !
Cloud/SaaS : Situation & ChallengesCloud/SaaS : Situation & Challenges
Club Alliances : Lessons & Perspectives Club Alliances : Lessons & Perspectives
Distribution & Go-To-Market as a Key Differenciator for « SaaS/Cloud Platforms »
Club Alliances is an Initiative to increase IBM France’s « Force of Gravity »
The IBM France Club Alliances Initiative
• ISVs, Integrators and Consultants collaborate to… – Formalize– Sell– Deliver…
• … Business Solutions, powered by IBM…– for Industry Verticals– and Lines of Business…
• … as-a-service :– BPaaS [Business Process as a Service]– SaaS [Software as a Service]– PaaS [Platform as a Service]– IaaS [Infrastructure as a Service]
ISVs, Integrators and Consultants come to Club Alliances to develop their « as a service » Business by :
• Forming relevant partnerships and alliances • Co-building, co-marketing, co-selling, co-
delivering Business Solutions « as a service ». • Sharing best practices and mutualizing
resources • Getting « powered by IBM »
Club Alliances promotes a Solution as a Service Model
Solutions as a Service for Industry Verticals and LOB
Industry Sector
Manufac-turing
Transpor-tation
Healthcare Retail
Sales & Marketing
CFO
R&D
…
LOB
HR
Local Gvt …
CIO
Club Alliances SaaS Platform Partners Club Alliances SaaS Platform Partners
End CustomerEnd Customer
Club Alliances MembersClub Alliances Members
Business IntegratorBusiness Integrator
Large Customer or Federation
Large Customer or Federation
MARKET
IBM
Contractual relationships for Solutions as a Service
How end-user customers buy today - They…
• rely on the Internet for information – not their sales rep
• do Google searches
• ask friends in their social network
• check forums or online groups or blogs
• get feedback in Twitter or other micro blogs”
• hate cold calls
• increasingly ignore advertising
• have spam filters and popup blockers
• throw junk mail into the waste basket
• have no patience for the traditional sales process
IDF
Source IDC, estimate is at the lower boundary of the market numbers
Ouest: 396 840 companies
Main Sectors : Agriculture, fishing industries, meat and all agro industries, Telco, Industry (electronics, mechanic equipments boat construction, Services (tourism)
IDF: 688 775 companies
Main Sectors : Services (to enterprises), Retail, R&D, Industries (printing, consumer goods, pharma, perfumes, equipments, auto), Media and Telco.
A clear Need for Marketing 2.0 !
Reaching 200k+ Mid-Market companies in France is uneconomical through “push” marketing alone. “Pull” marketing is key to reach the full breadth of the French Mid-Market.
Credibility & Visibility to « Pull » Leads
48
Marketing Mutualization : The “Las Vegas” or “Place Vendôme” model !
• Prospects are pushed & pulled to a specific Industry or LOB “Club” where they find :– A fair choice of Coopetitive
Solutions, covering key challenges/needs
– Best of Breed or Whole Solutions to cover most of their Industry or LOB needs
– An “as as Service” Business Value Proposition, including “powered by IBM”…
Agenda
49
Creating & Leveraging SaaS/Cloud ChannelsCreating & Leveraging SaaS/Cloud Channels
Questions & Discussion !Questions & Discussion !
Cloud/SaaS : Situation & ChallengesCloud/SaaS : Situation & Challenges
Club Alliances : Lessons & Perspectives Club Alliances : Lessons & Perspectives
Channels 1.0 Channels 2.0
What’s Going Out What’s Coming In
Responsiveness is critical
Channels 1.0 Channels 2.0
What’s Going Out What’s Coming In
Responsiveness is critical
52
Thanks – Q/A !
The best way to predict the future is to invent it - Alan Kay
Loic [email protected] +33 6 76 75 40 71
http://www.linkedin.com/in/loicsimonibmhttp://www.twitter.com/cluballiances
http://www.cluballiances.comBusiness Development Executive - Club Alliances
Business Partner Organization - IBM France