IBM Certified Managed Service Provider. A Joint Venture: ABC and Data Storage Corporation IBM Corporation

Transcription

1 IBM Certified Managed Service Provider A Joint Venture: ABC and Data Storage Corporation 2012 IBM Corporation

2 Overview Fast Facts Trends and Growth of Cloud Solutions Benefits of Providing Cloud The Realities Why Partner Value Proposition Overviewing our Partner Program Next Steps

3 Three of the Big Think Issues for 15 Scale and size for tech companies has become the enemy of innovation The cloud and X- as- a service economy is having a sizable impact on what it means to be big ( Forrester ) Business Continuity and Disaster Recovery are the critical insurance against the lessor risks of tech dependences The end of upgrades with SaaS and IaaS

4 FAST FACTS COMPANY: A JV Partnership: ABC & DSC Headquarters: Melville, NY JV Formed: August 2012 DSC: 2001 ABC: 1994 Data Centers: NY, MA, IL IaaS, SaaS & PaaS IBM MSP Partner CUSTOMERS & SALES: Combined Clients: 700+ active customers 3-yr Customer Retention Rate: 90% + Current Monthly Subscription Billing per Customer: $350 $70,000+ Primary Industries: Financial, Distribution, Education, Government, Business, Healthcare and Manufacturing National Distribution Network of Partner s SAMPLE CLIENTELE:

5 The Trends 2012 IBM Corporation

6 Today s Business Environment Companies are looking for: Hard dollar savings (no soft costs) 12 month ROI Much slower technology refresh Companies that are publicly traded are interested in: Pushing expenses to the next quarter/year Meeting Wall Street s expectations Financing (to keep cash on hand) Organizations pursuing a dual-vendor strategy can lower storage acquisition costs by 25% or more, as compared with organizations maintaining a single-source storage infrastructure, according to a Gartner analysis.

7 The Industry Outlook Projected Public Cloud Spending US$ (billions) $180 $160 $140 $120 $100 $80 $60 $40 $20 $0 $15 B+ IaaS PaaS SaaS Bpaas Spending Amounts in US$ (billions) Infrastructure-as-a-Service (IaaS) Platform-as-a-Service (PaaS) Software-as-a-Service (Saas) Business Process-as-a-Service (BPaaS) Source: Forrester Research, Inc.

8 Cloud and Virtualization: Top of Mind Solutions Gartner CIO priorities Cloud has rocketed to #1 CIO priority in just 3 years Source: Gartner Reimagining IT: The 2011 CIO Agenda

9 Many Clients Start the Cloud Journey with a Hybrid Cloud Clients are looking for benefits from Hybrid clouds And are preparing infrastructure to build the foundation Higher availability of systems and applications Lower total costs and better utilization of hardware Labor savings and improved quality of IT services Secure start behind enterprise firewall Highly standardized infrastructure Virtualization Multi-tenancy Service catalog Dynamic resource scaling Half of leading cloud adopters are planning to include multiple systems in their cloud infrastructures

10 IBM PureFlex System value propositions

11 The Business Case (Note that acquisition costs are a small part of overall TCO) 10%-50% Acquisition Cost Deployment Maintenance TCO Downtime Security Software For 50%-90% Power modern IT platforms, 30% of the total cost is the cost of acquiring the equipment. The balance is for IT labor/services to configure, maintain, upgrade, reconfigure, and ultimately decommission the equipment. -- IDC Asset Management Space IT organizations are spending from 70-80% of their total IT budgets on maintenance and ongoing operations. -- Forrester

12 Our Client Benefits What does it mean for our Clients?

13 POWER i Infrastructure-as-a-Service Developmen t Management Virtualization Middleware Deployment Applications Optimizes the complete solution PaaS/IaaS: All hardware and software components factory integrated and optimized Born virtualized and ready for cloud Storage tuned to data needs Hardware directly tuned to the software System resource allocation uniquely optimized per selected pattern for each application workload Pre-configured, pre-integrated infrastructure systems with compute, storage, networking, physical and virtual management. Storage Networkin g Server s

14 PureFlex System is Integrated by design Tightly integrated compute, storage, networking, software, management, and security Expert Integrated Systems Storage Networking Compute Virtualization Security Tools Applications Management Flexible and open choice in a fully integrated system

15 IBM Cloud Solutions Private Cloud entry points at any level Orchestrate with advanced cloud IT without Boundaries Integrate your virtualized foundation Automated resource balancing Virtual image management Automate with entry cloud Deliver self-service provisioning Automate IT service deployment Simplify administration Automated IT service deployment Full lifecycle management, metering & chargeback Cloud Capabilities

16 Types of I-a-a-S workloads Production High Availability Production High Availability Test Dev SAN Based Replication DRaas Test Dev SAN Based Replication DRaas

17 It s Already Happening why you need to partner IBM has stated that an estimated 50% of it s SMB clients will be using a cloud based solution in the next 5 years. IBM partners need to be able to present an offering. This puts you in control of your account control!

18 Partner Program Overview 2012 IBM Corporation

19 Partner Program Highlights We Made the Investment: Leverage Us Recurring and Non Recurring Revenue Full support: ROI analysis Proposal Cooperative Marketing dollars Clients can trial IaaS and PaaS

20 Partner Financial Benefits Increase Same Client Sales Grow the Recurring Billing Grow the Managed Service Business Excellent Margins Long Term Client Contracts Non Recurring Set Up Fees

21 The Business Opportunity High recurring margins (up to 50%) Private label or fee based programs Free marketing services Renewals and add-ons Pre-sales support and ongoing training

22 Partner Account Protection Never Jeopardize Your Business Your account REMAINS your account Client lists are NEVER shared High-end user satisfaction

23 Marketing Program Professionally-designed campaigns, free of charge. Collaborate directly with an independent marketing agency. Personalized, ongoing campaigns.

24 Marketing Program Components Whitepaper Why IBM Sees a Shift to the Cloud Live Webinar co-hosted with SIAS Website Video PowerPoint Presentation Print Ads Web Ads

25 Sales Support Simple-to-use pricing and quoting tool Full-time access to cloud specialists Training

26 Independent Software Vendor Develop on a vlpar for as little as $500 per month Provide S-a-a-S T&D as a variable equipment cost Spin up demonstrations in minutes

27 High Value Offering Enterprise-level solution Value is easily demonstrated Highly reliable Highly available Highly scalable (RAS) Free partner development resources

28 Financial Benefits of Providing Cloud Services 2012 IBM Corporation

29 Selling Hardware 10%-50% 50%-90% Deployment Downtime Acquisition Cost Power Security Maintenance Software Asset Management Space Small Range Large Range Systems Size $ 30,000 - $ 50,000 $ 100,000 $ 400,000 Averaging $40,000 $250,000 Partner Margin 25% 15% Partner Profit on Equipment $10,000 $37,500 Partner Profit on Installation $5,000 $5,000 Year 4 Maintenance $5,000 $5,000 Partner Profit % 20% 20% Year 4 Partner Profit $1,000 $1,000 Year 5 Maintenance $5,000 $5,000 Partner Profit % 20% 20% year 5 Partner Profit $1,000 $1,000 Total Profit $17,000 $44,500

30 IaaS: The 60 Month Analysis 10%-50% 50%-90% Deployment Downtime Acquisition Cost Power Security Maintenance Software Asset Management Space Small Range Large Range $ 30,000 - $ 50,000 $ 100,000 - $ 400,000 Average Sale $ 40,000 $ 250,000 Invoice to the Client Monthly $ 2,267 $ 10,000 Cost from SIAS Installation $ 1, $ 1, Recurring $ 1,700 $ 8,500 Partner Margin 25% 15% Gross Profit $ 34,005 $ 90,000 Installation Profit $ 2,000 $ 3,000 Total Profit $ 36,005 $ 93,000

31 One Time Sale vs Recurring Revenue Selling Equipment Upfront dollars Clients Cap Ex Purchasing for Max Load One Time Sale IaaS Ahead of the curve Clients Ops Ex Client pays as they grow Seasonality Benefit 2x s the partners profit Increasing the value of your company MRR It s Sticky CIO s are ranking Cloud in their top 3 priorities

32 ASCDI Member Benefits Test & Dev for a Member: Member can request a complementary T&D vlpar installation o No clients after one year Comp ends Member prospects or clients: o Members receive highly discounted rates for the first two clients o up 40% discount off of rates

33 Next Steps We Made the Investment: Leverage Us Call or . We will reach out to you as well. Non-Disclosure Agreement Discuss marketing ideas together: let s make sure it s right Partnership Agreement Build a Marketing Plan together Training

34 Contact Information Hal Schwartz