monetizing microsoft azure
DESCRIPTION
Slides from IDC analyst Darren Bibby and Microsoft partner Alex Brown, CEO of 10th Magnitude, on how partners can build successful cloud practices with Microsoft Azure.TRANSCRIPT
BUILDING AND MONETIZING A SUCCESSFUL PARTNER PRACTICE ON MICROSOFT AZUREDarren Bibby, VP Channels and Alliances Research, IDCSeth Varty, Sr. Business Planner, Microsoft Azure, MicrosoftAlex Brown, CEO and Founder, 10th Magnitude
Agenda
• Introduction – 5 minutes• Cloud Strategy – 30 minutes• Azure Purchase Options and Examples – 15 minutes
• Q&A – 10 minutes
Successful Cloud Partners 2.0Darren Bibby
VP, Channels and Alliances Research IDC
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IDC Study: Successful Cloud Partners 2.0
Follow-up to 2013 report Survey of over 700 solution providers
worldwide In-depth interviews with 20 leading Cloud
partners
mspartner.microsoft.com › Home › Solutions
IDC Study: Successful Cloud Partners 2.0
Contents:
IDC Cloud Market Overview
Cloud Partners Continue to Outperform
Planning For Your Cloud Business
Your Cloud Business Strategy
Your Cloud Sales Strategy
Your Cloud Marketing Strategy
Your Cloud Managed Services Strategy
Your Cloud Intellectual Property Strategy
mspartner.microsoft.com › Home › Solutions
The Cloud Market is Growing Fast
Public IT cloud services spending reached $47.4 billion in 2013 and will reach over $107 billion in 2017, five times the growth of the IT industry as a whole.
At 57.9%, SaaS will remain the largest public IT cloud service category through 2017.
Emerging markets will grow 1.8X faster than developed markets. By 2017, emerging markets will account for 21.3% of the public cloud opportunity.
Cloud Partners Continue To Outperform
Cloud-oriented partners continue to outperform their peers. Performance related to cloud – but also that that top performing solution
providers have been taking on cloud in their businesses earlier, and adopting it faster, than their peers
Successful partners see critical trends first.
Cloud Partners Continue To Outperform
Cloud-oriented partners continue to outperform their peers. Performance related to cloud – but also that that top performing solution
providers have been taking on cloud in their businesses earlier, and adopting it faster, than their peers
Successful partners see critical trends first.
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Planning for Your Cloud Business
Endure short term pain for long term gain Importance of Recurring Revenue Don’t wait to adopt cloud
Cloud Changes The Selling Relationship
Sell UseStock
Separate Cloud Group Integrated Group
Integrated Sales
Traditional Sales
Cloud Sales
Internal Focus – Eliminate Conflict External Focus – Offer Choice
Combined vs. Separate Sales Teams
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Integrated or Separate Company Structures
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Sales Compensation
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Cloud Sales Strategy
Land and Expand Profile of the New Salesperson Learn to Speak to LoB You may not have to change everything Reduce Cost of Sale Take Your Customer to the Cloud in Steps Take FUD Offline
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Your Cloud Managed Services Strategy
Increase gross margin through managed services
Create efficiencies in your managed services Retainer hours, Ongoing agreements Be your customers’ CIO or IT department
Azure Purchase Options
Seth Varty, Sr. Business Planner, MicrosoftAlex Brown, CEO and Founder, 10th Magnitude
How to Transact with Azure:
You and Your Customers
Microsoft has a few different options for Partners and Customers to purchase Azure and use it for their own needs or in support of their customer’s
• www.Azure.com: Pay as You Go or make a monthly/annual commitment
• Enterprise Agreement: Make an upfront purchase or pay quarterly as you go.
1. Build and manage applications for your customers
2. Help customers manage their own Azure environment(s)
3. Support a customer’s migration of Enterprise environments into the cloud
Once you’re set up with access to Azure, there are a few scenarios that come to life:
How to Transact with Azure:
Own your own EA
Scenario: Customer needs a small LOB app built, and wants 10th Magnitude to keep it running for them.
My Response: I’ll have the app built for you in a month, and then will charge you every month to keep it running.
To do this I need:
Month 1 Month 2 Month 3 Month 4 Month 5$0
$5,000$10,000$15,000$20,000$25,000$30,000
SupportAzure MSPDevelopment
1 person 1 month
How to Transact with Azure:
Customer Pay as they Go
Scenario: Customer wants to migrate their Dev/Test environment to Azure to see how it goes. They aren’t sure if they’ll leave it there.
My Response: No problem, it’ll take us a few days to get the environment moved. Purchase Azure on your credit card for the moment, so there is no need to make a commitment. We’ll provide on-going operations support so your team remains focused on development
To do this I need:
Month 1 Month 2 Month 3 Month 4 Month 5$0
$2,000$4,000$6,000$8,000
$10,000
Operations SupportDevelopment
1 person 1 week
How to Transact with Azure:
Influence Customer to have their own EA
Scenario: Customer wants to migrate and run their datacenter in Azure.
My Response: Let’s select and migrate your workloads over time so you can build the processes needed to run in the cloud. We’ll size the EA you’ll need to have in place to support this and provide maintenance for each server
To do this I need:
Month 1 Month 2 Month 3 Month 4 Month 5$0
$10,000$20,000$30,000$40,000$50,000$60,000
Server MaintenanceMigration
3 engineers 5 months
Q&A
http://azure.microsoft.com