1. Next Generation Partner Ecosystems Theresa Caragol

2. THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM Partnering Highlights from 2016 Hosting Con Survey  61% outsource data centers and partner with colocation providers  72% are likely to raise capital in the next year for their companies.  50% of hosting companies are planning to deliver (resell and manage) massive clouds to their clients.  75%+ of those surveyed were moderately to extremely interested in reselling and managing other SaaS platforms in industry.  90% of those surveyed do at least some of their business indirectly; and 50% do over 1/3 - ½ their business indirectly.  25% plus are doing business with these types partners: Referral Sales Agents Solution Provider Resale Partners National Direct Resellers – CDW/Insight Service Providers System Integrators Two Tier DistributorDevelopers  Other types mentioned include: SaaS provider Freelancer Security / Audit Partners Broker Marketing Agency

3. THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM Top 10 Asks from Channel To Vendors from Hosting Con Survey 1.Defined & Aligned priorities for the partnership 2.Culture and continued cadence for the partnership success 3.Locating, recruiting the right partners & ideal success profiles 4.Balancing competitive partner relationships & vendors with direct sales 5.Sustained success in the cloud. 6.Strong Consistent ongoing communication 7.Managing the costs of a partnership & ROI 8.Time and Trust 9.Managing and supporting the partners’ solutions. 10.Effective lead and demand generation 1.Defined & Aligned priorities for the partnership 2.Culture and continued cadence for the partnership success 3.Locating, recruiting the right partners & ideal success profiles 4.Balancing competitive partner relationships & vendors with direct sales 5.Sustained success in the cloud. 6.Strong Consistent ongoing communication 7.Managing the costs of a partnership & ROI 8.Time and Trust 9.Managing and supporting the partners’ solutions. 10.Effective lead and demand generation

4. THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM 5 Trends in Partnering Partnering is happening in virtually every business Strategic Alliance and Channel models are blending Partners partnering together is becoming more and more common The “Vendor” Landscape has changed dramatically Effective Partnering is a culture and becomes a DNA when done successfully

5. THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM Managing your Vendor Mix Guidelines & Best Practices 50-60% of vendor relationships don’t get off the ground 50-60% of vendor relationships don’t get off the ground Workshops Verticals Solutions Get the Business Strategy Right Hardware and Software Vendors Service Provider Vendors Contracting Services Companies Two Tier Distributors Other Managed and Cloud Business Service Companies Build a Building a Rich and Trusted Ecosystem Would this new vendor put us in the position to have to balance a potentially competitive relationship? Will we need to consider competitive aspects, either with another partner or vendor in our ecosystem, or with a vendor’s direct sales organization? When these competitive situations arise, how will we manage ongoing successful sales engagements? Evaluate the entire partnering experience: What is the commitment the vendor has to the channel?

6. THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM Guidelines & Best Practices (cont.) Consider the Vendor’s go to market Strategy Vendor’s Partner Experience Partner Program Service & Support Model Quality of Service & Support Compatibility with our Service Offerings Marketing / Demand Generation Support Ensure the vendor we will work with also fits well into our broad partner ecosystem Consider the Ecosystem options: Partners Partnering Together

7. THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM 7 Managed Services Offering Trends to Watch in 2016: Remote monitoring for BYOD policies and protection Enterprise Mobility Management for mobile devicesInternet of Things for everything connected Identity and access management for two-factor authentication Cloud backup services for data protectionRemote monitoring and management Compliance as a service for meeting regulatory compliances

8. THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM Best Practices for Long Term Partnering Success Defined - Objective Unified Goals Clear Ownership of Stake Holders and Responsible Parties Establish Timeframes for Success Clear Milestones of Success “Mini Goals” Review Cadence: Timeframes & QBRs

9. THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM Setting up Proper Communication Channels for Success #1 reason partnerships fail = poor communication (Trust) #1 reason partnerships fail = poor communication (Trust) Recognize People Communicate and want to be communicated with in different ways Recognize People Communicate and want to be communicated with in different ways Be Consistent & Predictable Format Matters – consider the 7 times rule Format Matters – consider the 7 times rule Be Relevant Enable Communication at all levels Enable Communication at all levels Executive Alignment is essential Executive Alignment is essential

10. THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM #1 Success Factor for Partnering: Trust & Collaboration  Individual and Inter Organizational (Systemic) Trust are the Fundamental ingredients for a Partnering Culture  Number 1 reason alliances fail: Inability to integrate cultures; trust is the number one ingredient underpinning culture  Individual Trust defined: Congruence between what is said and what is done An attitude that allows people to rely on, have confidence in, and feel sure about other people in the organization  Systemic trust defined: The ability of individuals in one or more organizations to trust another organization The degree to which individuals and groups in an organization have the confidence to sustain a partnership with the organization and the personnel in the organization It’s critical for a vendor to maintain a robust, strong and growth oriented partner ecosystem Trust is a fundamental ingredient for innovation  Individual and Inter Organizational (Systemic) Trust are the Fundamental ingredients for a Partnering Culture  Number 1 reason alliances fail: Inability to integrate cultures; trust is the number one ingredient underpinning culture  Individual Trust defined: Congruence between what is said and what is done An attitude that allows people to rely on, have confidence in, and feel sure about other people in the organization  Systemic trust defined: The ability of individuals in one or more organizations to trust another organization The degree to which individuals and groups in an organization have the confidence to sustain a partnership with the organization and the personnel in the organization It’s critical for a vendor to maintain a robust, strong and growth oriented partner ecosystem Trust is a fundamental ingredient for innovation

11. THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM Individual Trust Best Practices  Must be perceived as authentic  Speak carefully, accurately, clearly, and honestly  To create trust: Don't promise more than you can deliver. Describe your doubts, risks, and events beyond your control. Don't over commit Understand and align values  Trust breaks down when: People perceive authority versus a relationship There are continuous conflicts with individuals Continued uncertainty in a partnership An inability of a person to communicate or manage risk  Must be perceived as authentic  Speak carefully, accurately, clearly, and honestly  To create trust: Don't promise more than you can deliver. Describe your doubts, risks, and events beyond your control. Don't over commit Understand and align values  Trust breaks down when: People perceive authority versus a relationship There are continuous conflicts with individuals Continued uncertainty in a partnership An inability of a person to communicate or manage risk

12. THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM Work transparently, keeping others up-to-date on progress and problems Allow others to observe the progress of your work Involve others from the partner in key decisions Expose hidden agendas and personal interests of both sides when needed Understand what is being proposed, described, and discussed Be clear on the expectations of others, problems you might encounter, the risks involved, Establish and maintain clear expectations. Make and keep promises, do what you say and deliver results. Specific Business Partnership Best Practices

13. THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM Fostering Executive Sponsorship for Partnerships Sponsors talk straight and honestly with one another,They confront the reality of the partnership or the situation as needed.They clarify expectations on a sustained and regular basisThey review progress, and enforce achievement of the teams’ mutual key objectives. They create transparency by listening first, showing loyalty, and fixing something that went wrong. They keep commitments and ensure both teams deliver results.They take the time to continue deepening that individual executive relationship.

14. THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM Fostering Channel Systemic (Inter organizational) Trust Guidelines: Drive Culture of innovation and differentiation Collaboration is a fundamental ingredient Senior levels of organization must live the values Employ rigorous standards for maintaining collaboration Build them into company culture, processes, communications, and technology. Company culture: CEO communicates via all mediums about channel importance: employees, investors, customers, and partners. Company Policy: The company lives by a model that rewards partnerships who bring value: no sales compensation for direct business Company process: No hiring from Partners Policy established Technology enabler: Slack used for developers and teams Corporate governance: Global Advisory Councils, Business Planning

15. THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM SMB & ENterprise AgentsVARsMSP/CSPs Global System Integrators TelcosDMRS Private Equity Distribution Facility Providers Agent Channel ISVs Incumbent Partner Ecosystem Sample ReferralResale White Label Enablement Personas & Value Compensation Clear markets MultiCloud Platforms

16. THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM Strategic Channel Alliance Continuum of Partnership Types Expand Executive Alignment & Partner Sponsors Alignment on New Market Opportunities Integrated Business Processes Vertical Market Approach Joint Marketing, cobranding, and demand generation Clear accountability & Ownership for Alliance success Culture of Partnering Embedded into DNA Continuing Education on Alliance Aligned Compensation Programs Strong Communications

17. THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM SAAS / PAAS NA Go to Market Case Study Example

18. THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM Strategic Acquisition Case Study “We are 85% small businesses – people who “sell stuff” and transact online” 29 Acquisitions in 9 Years Everything Documented #1 Issue – Poor Communication Deep Due Diligence Self Fund Acquisition Proven Profit Model – to a science and timeline to profit Our Culture Permeates Buy for Customer Base “We don’t partner, we acquire.”

19. THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM Best Practices for Partners Partnering Together Clear goals Clear expectations for all aspects of the relationship Clear rules of engagement for teams’ Clear business & profitability model Service, escalation and support model

20. THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM Interesting Highlights Developers & Agencies Increasing in Relevance as “Specialized Partner Types Focus on merging Industries and how they impact us: Mobile Data Centers, Robotics, Video Analytics Developers & Agencies Increasing in Relevance as “Specialized Partner Types Focus on merging Industries and how they impact us: Mobile Data Centers, Robotics, Video Analytics Consolidation Continues – Hosting Companies, Distribution, Solution Providers Partnerships continue Verticals, Solutions Consolidation Continues – Hosting Companies, Distribution, Solution Providers Partnerships continue Verticals, Solutions

21. THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM Trusted Advisor Partners – Common Challenge Topics Strategy around what markets, partnerships, globalization Differentiation and staying ahead of competition Effectively retaining and engaging employees Alliances to form Verticals / Clients / partners Leads, sales, customer loyalty Product lines and offers, directions, services Financial, tax, and operational challenges Capital optimizationIP and legal challenges Unique industry specific challenges Personal Growth & CEO Executive Brand

22. THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM Guidelines for Assembling a First Class Team of Advisors Guideline #1: DIFFERENT SKILLS & EXPERIENCE Guideline #2: KNOW ABOUT BUILDING & KEEPING TALENT Guideline #3: GET MIX RIGHT MIX – VARY EXPERTISE AND BACKGROUND AND AGES Guideline #4: WHAT COMPENSATION WILL YOU OFFER? EQUITY AND LONG TERM COMMITMENT. Guideline #5: ENSURE YOU AS LEADER HAVE EMOTIONAL INTELLIGENCE Guideline #6: 5 to 8 IS IDEAL NUMBER Guideline #7: USE EMPTY ROOM EXERCISE – SKILLS NOT PEOPLE FIRST

23. THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM Best Practices for Hosting Providers: Marketing Programs for MSPs Building their Brand First Give Content, Content, Content Whitepapers Value Oriented Blog Posts Social Media Content Thought Leadership Webinars. Syndicate Web Content - Marketing Campaigns Empowerment and Education Services Concierge Full Marketing Service Options Lead Generation: Sales Teaming, Marketing Programs Explore new companies and trials / pilots. Best Ideas come from the Field – Outside in Pilots with ROI often lead to best innovations

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