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Channel Opportunities & Challenges in the Cloud 2/4/11.

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Presentation on theme: "Channel Opportunities & Challenges in the Cloud 2/4/11."— Presentation transcript:

1 Channel Opportunities & Challenges in the Cloud 2/4/11

2 Channel opportunities in the cloud Global cloud related spending by SMBs is expected to reach $95 billion by 2014. Worldwide SaaS revenue is expected to grow from $13.1 billion in 2009 to $40.5 billion by 2014. Messaging & Collaboration is the fastest growing Cloud Service. Largest single SaaS deal in 2010 was 2.1 million seat license purchased by Walmart. Facts:

3 Channel opportunities in the cloud Capitalize on the fastest growing IT market segment with opportunities across all market segments – horizontal & vertical small businesses Primary indicators of opportunity  Distributed workforce  Growing/shrinking workforce  Expanding/cutting costs  Upgrade cycles  Collaboration beyond the corporate firewalls  Quick forming projects – project swarming  Operational disruptions exposing continuity challenges medium v. large large

4 Channel opportunities in the cloud Reinvent your business Lower operational costs Expand into new markets Increase customer base Stabilize revenue stream Increase profit Increase your brand and value add Opportunity to: Go from To Lower operational costs Larger payroll, more resources required for delivery & deployment, larger back office over head, higher cost of sale, Smaller payroll, less resources required for cloud based provisioning & deployment, lower cost of sale Shift focusDay to day operational challenges Sales, customers, marketing and long term goals Expand into new markets Limited to the immediate geography of your office(s) Anywhere there is internet access Increase customer baseLower user/resource ratio Serve more customers with less resources Stabilize revenue stream Low visibility, one time revenue concentrated upfront High visibility, recurring revenue spread out Increase profit Lower margin, larger upfront transaction, more risk Higher margin, spread out rev, lower risk Shorten sales cycle Long & expensive sales cycles for larger ticket sales Shorter and less expensive sales cycles Increase your brand awareness and value add Lower brand exposure, more rigid offerings Higher brand exposure, private labeling, custom packages, higher end services

5 Channels used by smb’s to purchase cloud solutions “routes to market study”, smb group, 2010 survey of 475 businesses challenge

6 Channel’s effectiveness in selling cloud applications depends on the application low high application breadth channel’s effectiveness Opportunity

7 Challenges in the cloud Operational realignment and reinventing your business Flattening your revenue over a longer period of time New sales model – easier upfront but continuing well beyond the initial sale User adoption is paramount – forces changes to your support and service Product portfolio is critical to your success Vendor selection and relationship is critical to your success

8 Challenges in the cloud  Product selection and portfolio  Scope and size  Ease of use  Future proof – scale, upsell and mobility  Customization & service opportunities  Stickiness – operational touch points  Built from scratch for cloud – multi-tenant, cross browser support  Vendor Selection  Cloud commitment  Delivery track record  Channel commitment - billing control, branding options and service oppties  Avoid following the herd  Avoid market places

9 Farzin Arsanjani HyperOffice Cloud Collaboration, Email and Mobility Solution

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