monetizing microsoft azure

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BUILDING AND MONETIZING A SUCCESSFUL PARTNER PRACTICE ON MICROSOFT AZURE Darren Bibby, VP Channels and Alliances Research, IDC Seth Varty, Sr. Business Planner, Microsoft Azure, Microsoft Alex Brown, CEO and Founder, 10 th Magnitude

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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.

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Page 1: Monetizing Microsoft Azure

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

Page 2: Monetizing Microsoft Azure

Agenda

• Introduction – 5 minutes• Cloud Strategy – 30 minutes• Azure Purchase Options and Examples – 15 minutes

• Q&A – 10 minutes

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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

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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

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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.

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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.

Page 8: Monetizing Microsoft Azure

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

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Cloud Changes The Selling Relationship

Sell UseStock

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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

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Azure Purchase Options

Seth Varty, Sr. Business Planner, MicrosoftAlex Brown, CEO and Founder, 10th Magnitude

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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:

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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

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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

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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

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Q&A

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http://azure.microsoft.com