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2013

How the Cloud has Changed Forever the Economy of the IT

…and will continue to do so

Bob SnyderEditor-in-ChiefChannel Media Europe Ltd.

I Know How You Feel,I Know How You Feel About Cloud

http://www.youtube.com/watch?v=aY9GBl7UmVs

“Squirrely”

How Fast Does Change Occur?

The iPad was announced on January 27, 2010

iPad is Changing Television88% of US tablet owners use tablets while watching TV at least once a month

iPad is Part of A Larger Trend• Apple is

changing the IT

landscape ...but it’s also

changed another...

mobile phones.

• Mobility

Connected DevicesAccording to GSMA

• 9 billion connected devices in the world today. By 2020, there will be 24 billion and over half of them will be non-mobile devices such as household appliances.

More Smartphones Than People on the Planet

Cisco predicts by the end of this year there will be more smartphones than people on the planet.

The forecast also predicts by 2016 there could be 10 billion smartphones. That’s 1.4 mobile devices per capita.

Connected AgeWe are still learning what it means to live and work in the Connected Age vs the Information Age

•Connected devices will be a US$1.2 trillion market by 2020.

The Very Way We Do Business is Changing

Our Future is Cloudy

By 2020, there will be a shift from an IT department for end users to a "follow me" IT service provider mentality.

In other words, IT itself will move to the cloud.

The department that manages cloud services will become a cloud service itself.

What you describe as Cloud Computing depends upon where you stand in the industry, who your partners, customers and

suppliers are.

How Cloud is Changing IT Integration

• Cloud Advisors

• Cloud Builders

• Cloud Providers (as a Service)

• Cloud Resellers (sell Cloud services from another organisation)

• Cloud Integrators They construct ‘the glue’ between private and public Clouds or between traditional IT and other Cloud infrastructures

New KPIs

• Cash

• Churn

• Client Pipeline

• Consolidation

• Concomitant Monthly Revenue

• Customer Acquisition Cost

• Customer Value over Life Time

7 C’s

Their Future is CloudyMore than 90% of the channel has cloud offerings in their portfolios.

BUT, the channel has relegated itself to basic applications and services – backup, email, productivity apps, storage – and these offerings will commoditize quickly.

The Display Becomes the Computer...

THE IT INDUSTR

Y BECOME

S DIGITAL SIGNAGE

IT’s ALL ABOUT VERTICALS

2016: 30%, (9% in 2011)

By 2016, 30% of Enterprise Architecture efforts will be supported as a collaboration between business and IT (up from 9% in early 2011), says Gartner Inc.

 

Corporate I.T. networks will move from defence (infrastructure and cost-savings) to offense (building business opportunities and marketplace advantages.)

How Hard is the Climb?

How Cloud is Changing IT Integrators

Forrester says cloud

transformation will lead to

the elimination

of up to 15% of the

channel. Gartner says attrition under cloud transformation will eliminate 40% of the existing channel

One Example: A Hotel Chain

BEFORE: a solitary salesperson, sleeves rolled-up and ready for action and briefcase in hand...face-to-face across a desk with a hard-nosed buyer, playing that well-known game of “How much? How many? When shall I call back?”

One Example: A Hotel ChainNOW: It’s about how the hotel builds the best customer experience for their business model, and you’ll be expected to know the business model, chapter and verse.

How Can We Survive?

Forget everything you know about selling hardware and software.

Software-as-a-Service will be about SERVICE, not software.

New Way to Evaluate Clients

The End of Solution Sales

by Brent Adamson, Matthew Dixon, and Nicholas Toman

The New Sales Approach

…from The End of Solution Sales

1. Establish Your Core Values & Skills.

– PREDICT THEIR FUTURE

– REGULARLY & IN FORMAL FASHION

2. EVALUATE YOUR VENDORS.

Bob’s Vendor Vector Matrix

Evaluate Your Suppliers• Innovation

• Product line expansion: 

• Partner Programme 

• Logistics 

• Training & certification 

• Pricing & payments 

• Brand 

• Relationship 

• Commercial status

The Vendor Vector Matrix needs to be consistently applied…

3. RE-EVALUATE YOUR CUSTOMERS

How profitable are each of my customers?

Which vertical industries do I

invest in?

4. RETRAIN YOUR SALES FORCE

5. ADD REAL MARKETING

Many integrators lead with their vendors’ brands and reputation.

Solution providers need to do a better job of marketing themselves and creating their own value proposition.

And It Won’t Be Your Father’s Marketing...

6. VERTICAL INDUSTRY & SYSTEMATIC SALES

6. Growth Is Not a Choice. • The channel is under-capitalized: an average integrator doesn’t have the financial resources to fund transformation. The only way the channel can transform is through growth.

• Adding two or three jobs a month and a dozen or so net-new customers per year won’t do the trick. You need HYPER-GROWTH.

BEFORE AFTER RE-FRESH How will my business evolve? Where do I want to company to

be five years from now?

Do I have the right talent (sales/tech)?

What is our value proposition and how does it distinguish us

from competition? Do I have the right customers? How profitable are each of my

customers? Which verticals/industries do I invest

in this year? Do I have the right vendor

partners?

How profitable are each of my suppliers? How do I introduce

predictable non-hardware revenue streams into my

business?

Ask Yourself the BIG Questions.

I Know What You Are Feeling…

But remember, in the end, the SQUIRREL is willing to JUMP, to LEAP, and CLIMB to get his reward.

Even the squirrel is fearless and unrelenting in pursuit of a goal.

Thank you for ListeningThank you for Reading

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