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Cloud Channel Summit 2015 | @rhipecloud #RCCS15
Context – change
Cloud Gartner Top 10 trends 2015 Cloud is the new IT reality Big Data Accenture 89% believe no big data strategy = business risk, market share loss Mobility IDC APAC $25bn M-commerce market in 2015 (accounting for 50% of all e-commerce) Enterprise Social Avanade Majority of large companies are leveraging consumer-driven social networking instead of enterprise-class socialContext . . . more change
Security
Top 3 across most surveys But… IoT IDC $8.9tn & 212bn devices by 2020 3D printing Canalys 3D printing $16.2bn by 2018, CAGR 45.7% Wanted Analytics – 35% of ads for engineering jobs prioritise 3D printing (Sept 14) Next Shift Happens…
Revenue Path Software resale switches to subscription model with increased volume and decreased revenue. Infrastructure services move to Cloud integration with an initial upturn and steady growth thereafter
Managed services, moves away from server services and increases in total volume with a shift towards devices, security, deployment, and integration Solutions Value Adders maintains current rate with a focus on strategic applications and hybrid integration
On-Premises Cloud
Reseller Infrastructure Value Adder Value AdderMSP Solutions Software Value Adder
R VA
VAR Revenue Shift
Where is the Cloud market at?
Where is the opportunity next year?
Country HSP Opportunity($M) Current Penetration
New Zealand $40 35% Singapore $41 31% Australia $212 29% Korea $338 16% Thailand $62 3% Malaysia $64 2% Philippines $61 1% Indonesia $117 0% Vietnam $43 0% Total $978 15%
451 Research – hot off the press
http://bit.ly/MS-451-HOSTING-STUDY-2015
Microsoft to
http://bit.ly/MS-451-HOSTING-STUDY-2015
Microsoft to
rhipe to you…
http://bit.ly/MS-451-HOSTING-STUDY-2015
rhipe to you…
Microsoft to
http://bit.ly/MS-451-HOSTING-STUDY-2015
55% Hosting provider involvement
Microsoft to
rhipe to you…
Forrester Survey
Key target survey sample scope
Survey Scope
Total: 79 interviews
Target companies: rhipe cloud partners
Target roles: Head roles like CEO, COO, CIO/CTO, senior managers, and managers Database: Database -provided by rhipe and augmented by Forrester Survey LOI: 25 to 30 minutes
What makes fast growing service providers
different?
The fast growing IT partners are more likely
to be Managed Services Providers
Source: 61 IT partners who expect to growth their business by at least 10% over the next two years
2% 3% 5% 5% 13% 15% 16% 41% Trusted Advisor Independent software vendor (ISV) Direct market reseller
(DMR)
Systems integrator (SI) Hosting service provider Value-added reseller (VAR) IT consulting firm Managed service provider (MSP)
Which one best describes your company?
35% Total % from 79 IT partners 16% 24% 10% 6% 4% 3% 1%
The shift from
VAR to MSP
Are you expanding your service offerings, simplifying them, or keeping them the same or similar?
These fast growing IT partners are aggressively
growing their solution set on offer
Expanding, 87% Simplifying, 5% Same, 8%
Differentiation
For this calendar year, what is you organisation’s top priority vertical?
They are more likely to be focused on professional
services . . . and less likely on government
2% 2% 2% 3% 3% 5% 7% 11% 15% 15% 16% 20% Energy/Utilities Travel & Transportation Electronics Telecom Education Healthcare & Life Science Others Government (Central, State) Banking & Financial management
Retail Manufacturing Professional Services 16% Total % from 79 IT partners 14% 11% 13% 18% 6% 4% 4% 4% 1% 5% 4%
Source: 61 IT partners who expect to growth their business by at least 10% over the next two years
Results
focused
customers
Many of these businesses started their
Cloud journey years ago
When did you start offering Cloud services?
12% 4%
43% 39% 2%
More than 7 years ago 5- 7 years ago 3- 5 years ago 1-3 years ago
Less than a year 3%
Total % from 79 IT partners 42% 38% 5% 12% Source: 60 IT partners Competitor Experience is growing
Growing revenue and competition will
be the biggest challenges
Source: 61 IT partners who expect to growth their business by at least 10% over the next two years
What are your company’s top 3 business challenges?
3% 11% 8% 8% 16% 15% 11% 21% 5% 13% 5% 10% 16% 13% 8% 8% 21% 5% 8% 8% 13% 10% 18% 25% 11% Others Poor support from our vendors The rate of technology change Responding to our client’s business …
Finding and retaining people Increasing profit margin Increasing expectation from Customer Reducing costs Competition Growing revenue Rank1 Rank2 Rank3 Sales, Marketing and Automation
What is the
difference
between
those
companies
that offer
Cloud
services
and those
that do
not?
Cloud providers are much more likely to offer a broad
solution set to many industries, BUT services and
Industry vertical focus
Share of wallet and
vertical IP
Base: 79 partners; Source: A commissioned study conducted by Forrester Consulting on behalf of rhipe, January 2015
53% 12% 22% 13% 21% 58% 11% 11% We are a provider of a broad solution set to a broad set of industries We are a provider of a narrow solution set to a narrow set of industries We are a provider of a broad solution set to a narrow set of industries
We are a provider of a narrow solution set to a
broad set of industries
Does not offer cloud Offers cloud
7% 0% 5% 15% 5% 18% 2% 43% 0% 2% 3% 0% 5% 0% 58% 0% 5% 0% 16% 11% 0% 5% Intel Servers Storage Networking PCs, Printers & Other Hardware
IT Services that you Resell –… Vertical solutions Horizontal solutions IT Services Delivered by your… Application Software – Resold
In-house Software Other Revenue
No cloud offering Cloud offering
Share of wallet and
vertical IP
Base: 79 partners; Source: A commissioned study conducted by Forrester Consulting on behalf of rhipe, January 2015
For the last calendar year, what were the top 3 key IT products & services that you sold?
Cloud providers are much more likely to offer a broad
solution set to many industries, BUT services and Industry
vertical focus
IT partners who sell cloud solutions are much more likely
to sell . . . multiple solutions across more vendors
Next
logical purchase
Base: 79 partners; Source: A commissioned study conducted by Forrester Consulting on behalf of rhipe, January 2015
53% 42% 5% 68% 32% Less than 5 5 to 10 More than 10
Does not offer cloud
How many professional solutions/services offerings do you sell to the average
customer? 18% 38% 33% 10% 26% 47% 21% 5% Less than 10 10 to 19 20 to 29 30 or more No cloud offering
What is the total number of vendors with whom your company has reseller or service provider agreements?
Fast Growing
Other interesting facts
Higher proportion revenue from cloud (64% vs 59%)
IT Services and Application focus, with Security, application
and cloud software most likely to be sold
A fast growing rhipe customer is,
on average
A mid-sized firm, offering a growing portfolio of capabilities to their customers in the professional services, manufacturing, retail and financial services industries
They have a strong focus on selling their own IT services – keeping revenue in-house
They sell security, applications, cloud, service management
and analytics software – and have embraced cloud as a delivery platform – either from their own DC or that of an IT vendor
These IT partners make a lot of their revenue from cloud – and turn over around $0.5-15 million dollars a year in total
How does Cloud help these partners?
Cloud computing broadens the scope of the vendors they resell – they have a much greater portfolio of capabilities to offer to client
The greater portfolio of services means that they tend to sell more solutions per customer
Cloud that help them sell to higher margin industries (such as financial
services)and also helps them sell to larger businesses – likely increasing the value of the contracts they sign
IT partners that sell cloud computing are more likely to be aggressively growing their business
Cloud-focused businesses sell much more of their own IT services –
Service Provider Best Practice Framework
Business Strategy (Commercialisation) Delivery Strategy (Consumption)
Platform Strategy (Enablement) Research Strategy (Innovation)
IaaS Example
Business Strategy (Commercialisation) Delivery Strategy (Consumption)
Platform Strategy (Enablement) Research Strategy(Innovation)
SMB Specialist Example
Business Strategy (Commercialisation) Delivery Strategy (Consumption)
Platform Strategy (Enablement) Research Strategy (Innovation) Your Office in the Cloud
SI Example
Business Strategy (Commercialisation) Delivery Strategy (Consumption)
Platform Strategy (Enablement) Research Strategy (Innovation) Own your customers journey
