Over The Cloud

Over the CloudLaurent Glaenzer

vendredi 2 octobre 2009

€10B in 200940% CAGR75% of Companies use one application in SaaS

In 2010, 45% of Companies will spend > 25% of their IT budget on SaaS compared to 23% today


New Internet Bubble?

Massive & global opportunity

Very fast growth

Viral and ground-up expansion

Capital available for SaaS players

Many ill-defined business models


Business as a Service

Software as a Service Infrastructure as a Service

Business as a Service

Any application licensed for its usage on demand (mostly over the web)

Server VirtualizationStorage VirtualizationAdvanced lease infrastructure (pay per use)

New Way of BuyingNew Way of Selling


Customer View

Pros Cons

Lower cost

Pay as you go

Zero Capex

No or minimal IT resources

Faster time to use

Flexibility/scalability

Higher dependency on provider

Security/confidentiality

Design limitation

Performance

Offline access


Disruptive for Customers

Acknowledge the benefits for their own business compare to existing solution

Support the idea of an externally hosted model

Define what to do with existing assets (save waste)

Accept transition costs + workload

Check possibility of changing budget allocation from Capex to Opex

Deci

sion

Pat

tern


Disruptive for ITC Channels

Limited room for IT services (design)Revenues cannibalization riskLimited presence in SME

Long customer decision cyclesRequire market expertiseRevenues cannibalization risk

Require market expertiseLimited IT knowledgeLack of agility

IT Resellers

ServiceIntegrators

Telcos


Time to rethinkIT DistributionTime to rethinkIT Distribution


Converting Channels

CreatingChannels


IT Resell Channels

Interested Not interested

Recurring revenues

Hype

Customer request

Defend installed base

Low revenues

Requires market expertise

Cannibalization risk

Established in the 80s to resell PCs and on-premise solutionsInvolved in middleware services (i.e: maintenance)Well known by IT and purchase departments


LNA

Infrastructure reseller (PC, Printers, on-premise software, networking)

Focus on service business (middleware, virtualization,...)

Created a SaaS Department to chase incremental business


Systems Integrators


IT Services (solution design, organizations)

Hosting/branding applications

Ready made solutionsLow revenues

Little room for servicesCannibalization risk

Established in the 70s with the emergence of ITInvolved in IT design solutions and organization issuesWell known by CEOs, CFOs and ITs


Example Cap Gemini

Pegasystem is a Business Process Management application provider

Has cooperated with CapGemini to launch a new «BPM as a Service» platform

Benefits for CapGemini: sell services and recurring revenues

Dedicated Cloud Computing department at CapGemini


Telcos


Portfolio extension

Aligned with business model

Data & application hosting

Requires IT knowledge

Disruptive for IT decision makers

Long time established CompaniesRadical portfolio extension since the Internet appearanceWell known by Purchase dpts and more and more IT


Example BT

Porfolio expansion through a multi solutions offering

Data/Applications hosted by BT

Complementary to broadband internet offering


Converting Channels

CreatingChannels


Vertical Channel

Customer

VerticalChannel

Point ofpurchase

Service Provider

Need Identification


A Massive Presence

120 000 Companies*

IT CompaniesResellers

Integrators

BusinessServices

Companies

1 800 000 Companies**

(*) EMEA Source Compubase(**) Western Europe Source IDC


Services categories

Collaboration Sales & Marketing Manufacturing HRAccounting

Finance/Insurance

Business consultant

Marketing agencies

Accounting Companies

Marketing Agencies

Training Companies

Business Consultants

Outsourcing services


HR consultants






Non-Contractual Resellers

Role Compensation

Referral • introduce the product to customer• register the customer

• 10% discount• no upfront payment

Interface• introduce the product to customer• register the customer• invoice the customer

• 20% discount• no upfront payment

Facilitator

• introduce the product to customer• register the customer• invoice the customer• train the customer

• 30% discount• Online training• no upfront payment


Vertical Channel Platform


Business Services


Portfolio extension

Services opportunity

Recurring model

Credibility

Certification/ upfront contract

Complicated process

Technical involvement

Huge variety of Companies90% between 1-10 employees (many free-lance)In all businesses


Example Lixao

Communication / Web design agency

Mostly involved in communication design and web development for SMEs

Has added Emailing, data hosting, collaboration tools for their customers

Benefits: tracking their customer evolution and keep the conversation open


Example Accounting Accounting Company with 130 employees

Has never been involved in reselling IT equipment or software

Often asked advices by SMEs without IT management

Would consider including SaaS/Cloud solutions in their offering


Aggregators

ApplicationHosting

DataHosting

Servicing(billing)

Resellers

Customers

ApplicationsProviders

Aggregators Channel


Aggregators


Solid value proposition

Room for hosting application & data

Recurring model

No markup possibility

Mostly startup CompaniesVarious business modelsVarious services offering


Example RevevolConsulting Company assisting large Companies in their IT decisions

Becomes involved in reselling IT solutions with the Cloud Computing

Signed agreements with several SaaS/Cloud players including Google Aps

Just bid with Valeo for the installation of 30 000 users with Google offering


The new channel map

Converted Channels

Direct Play

Vertical Channels

Aggregators

IT Channels

System Integrators

VARs

Telcos

OEMs

Direct

Consultants

Accountants

Marketing Agencies

Application Hosting

Data Hosting

SaaS Resellers/Dist


Thanks!

[email protected]


mailto:[email protected]

mailto:[email protected]

Over The Cloud

Business

Transcript of Over The Cloud