Partner Profitability in Hybrid Cloud Computing. Mobility in the Cloud: Partner Revenue Sources Empirical survey of >250 North American Partners

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1 Channel Research Channel Portfolio Research Portfolio Q1 Q3 Q1 Q2 Q3 Q Q1 Q Q2 Q Channel Cloud Migration: Issues and Trends Interviews with >100 vendor and channel execs Partner Profitability in Hybrid Cloud Computing Empirical survey of >300 North American Partners Enablement & Marketing: In the Channel Empirical survey of >250 North American Partners Sales Model Transformation: Empirical survey of 279 solution providers IaaS Customer Cloud Adoption: Drivers & Triggers by Market Segment Empirical survey of >1,000 Midmarket and SMB customers Mobility in the Cloud: Partner Revenue Sources Empirical survey of >250 North American Partners Vendor Benchmark & RTM Migration: Vendor channel investment trends; Survey of 100 vendors The Role of Marketing in Creating a Services-led business model Empirical survey of 305 solution providers SaaS Evolution of Technology Delivery Model: IaaS in the Cloud Empirical survey of >300 North American Partners & >300 Customers Evolution of Technology Delivery Model: SaaS in the Cloud Empirical survey of >300 North American Partners & >300 Customer Cloud Route-to-Market Migration Vendor Channel Investment Trends Blind survey of >50 Cloud Solution Vendors Changing Buying Behavior in the Cloud: Move to BYOD and LOBs Empirical survey of >300 North American Partners & >300 Customer State of the Market 2013: Cloud and Managed Services in the New IT Ecosystem Empirical survey of >387 North American Partners and 319 End-users 2014 Channel Census State of Emerging Technologies Empirical survey of 244 end-users and 442 solution providers Annual Vendor Benchmark Vendor channel investment trends; Survey of 100 vendors Empirical survey of 730 North American Partners 1

2 Solution Provider Census Research Summary Enabling Technology Partnerships The channel community s trusted authority for growth and innovation for more than three decades.

3 Channel Census Objectives Methodology Broad overview of the demographics of the N. American solution provider community Analysis of emerging solution provider business models Key insights into growth strategies, barriers and support expectations of each major partner type Leverage most current Channel Company solution provider database and the CRN Channel Intelligence Council On-line survey in Jan 2014 with research incentive 730 completed responses Critical benchmark against which to measure channel breadth and profile 3

4 Four Main Topics BUSINESS MODELS VENDOR RELATIONSHIPS TECHNOLOGY INVESTMENTS GROWTH STRATEGIES 4

5 Vendor Key Imperatives Complete MSP Model Program Tracks Know Your Vintage Partners Create & Share Services Delivery IP & Enablement Make a bet on Leading Service Providers Invest in Next-Gen Selling Skills Fuel the Engine, to Drive Growth 5

6 Vendor Key Imperatives Complete MSP Model Program Tracks» Managed Services capabilities now broad & demands mainstream support; 25% of partners» MSP is a service line and a function; not most often a unique business model» Requires unique ROI and alignment with vendor s Service Provider, direct & indirect GTM plan Know Your Vintage Partners» Identify your dependency on top Vintage partners» Determine their plans for moving towards Progressive capabilities» Target legacy infrastructure partners for addition of converged infrastructure & private cloud capabilities 6

7 The N. American Solution Provider Universe Svs. Prov. Web Dev Agent 2% DMR 2% Cust. Syst. Bldr. 4% 4% ISV 3% MSP/Hoster 12% VAR 33% BUSINESS MODELS» Honed 170,000 list» VAR/reseller label on slow and steady decline as primary business model; shift to Cloud Reseller, MSP and Consultant SI 12% Based on selection of primary business model Consultant 28%» MSP segment continues to grow; revenues <20% of total on average» Consultant and System Integrator legacy business models sustain, driven by demand for converged infrastructure and private cloud adoption» Dramatic increase in partner awareness & adoption of cloud business models; 78% of this community identifies with one or more cloud models Q: Which of the following best describes your current primary business model? (that which contributed the highest % of your revenues?) 7

8 MSPs now represent 25% of market; VAR role still critical to SMB markets and Consultants and SI s driving migration to cloud VAR Consultant SI MSP/Hoster Custom Systems Builder Service Provider Agent ISV DMR Web Developer Primary & Secondary Partner Business Models: 4% 4% 3% 3% 2% 3% 2% 5% 6% 6% 12% 12% 13% Primary Secondary 18% 22% 24% 28% 33% We need to become mini business analysts, so my organization is not just seen as the tech geeks. MSP Las Vegas, NV» Secondary business model relates to area for greatest future investment» VAR role still critical in SMB markets» SI and Consultant roles reflect rise in professional services revenue and integration work around private cloud & converged infrastructure» 25% of solution providers now have MSP capabilities; % of revenue small but growing» Commercial ISV business model moving to SaaS and mobile app. development; morphing with other business models as products become services Q: Which of the following best describes your current primary business model? (that which contributed the highest % of your revenues?) Q: Which of the following best describes your current secondary business model? (that which generated the second highest percentage of your revenue?) 8

9 Rise of MSP Business Model and Cloud Reseller/Agent drive growth in Transformative model Vintage Progressive Transformative Vintage: relationship with IT contacts resale of on-premise very limited recurring revenue project based mostly SMB end-users high volume, lower prices lifestyle business Progressive: Transformative: Vintage Progressive Transformative relationships with both LOB and IT actively expanding # of end-users some recurring revenues adopted cloud services/msp practice pre-packaged services relationships with service providers sell or develop applications or extensions relationships with LOB and IT specialize in key vertical markets significant % of overall revenues come from recurring revenue offers a variety of cloud services or applications understand and addresses business process active in P2P collaboration does some custom software development Q. How would you characterize your company's business culture today? 9

10 Legacy Partner Business Models Cloud Solution Provider business models are adjacent to existing business models and core competencies Cloud Partner Business Models» Business models transition aligns with historic functional focus and assets VAR 1 st 2 nd CONSULTANT 2 nd 1 st SI 2 nd (tie) 2 nd (tie) 1 st 2 nd (tie) MSP 2 nd (tie) 2 nd (tie) 1 st 2 nd (tie)» Cloud Agent/Reseller most popular new business model» SI model splinters into widest variety of new models; supports blending of application, infrastructure and consulting capabilities in next-gen partners Q: Which cloud business model(s) does your organization expect to utilize? (choose top 2) 10

11 Cloud Agent and Reseller programs now mainstay; Consultant role draws on Professional Services focus and private cloud pilots Now 78% of solution providers clearly identify themselves with one or more Cloud Solution Provider business models PRIMARY ROLE: Influence customers to adopt cloud solutions and sell (only) thirdparty cloud offerings PRIMARY ROLE: Design & architecture of cloud solutions for business outcomes PRIMARY ROLE: Build & manage infrastructure for providing hybrid & public cloud environments Q: Which cloud business model(s) does your organization expect to utilize? (choose top 2) 11

12 Cloud Builder role evolving from legacy SI and VAR roles; Expect to see Broker role increase to manage multiple services PRIMARY ROLE: Build SaaS applications for public, private or hybrid cloud solutions PRIMARY ROLE: Integrate & deploy technology to build private or hybrid cloud data centers PRIMARY ROLE: Aggregate various cloud solutions with integrated management services PRIMARY ROLE: Aggregates cloud services and delivers training and management services to business partners In, the Cloud Broker role was deemed critical by 27% of end-users; 52% were undecided and only 21% said it was not important. Q: Which cloud business model(s) does your organization expect to utilize? (choose top 2) 12

13 Biggest investment in MSP/hosting; Little divesting planned as partners hedge their bets for new revenues Investing Divesting MSP/hoster 19% None 49% Consultant Reseller 18% 17% Supports growth in Cloud Reseller/ Agent role Consultant Reseller 11% 8% Consultant role evolving into cloud services & converged infrastructure architectures divesting None Systems integrator 11% 15% investing Custom systems builder Web developer 6% 6% Q: Which business model or practice area has your company most recently adopted or invested in (last months)? Q. Which business model or practice area has your company most recently divested in, sold off or simple discontinued last months)? 13

14 The MSP Continuum MSP Pioneer 250 Business model heavily weighted toward managed services, focused on the SMB market. MSP Elite 150 Companies who are large, datacenter-focused solution providers with a strong mix of on-premise professional services and off-premise services that provide a recurring revenue stream. MSP Hosting Service Provider 100 Companies who own and operate their own datacenters, proving a wide array of subscription-based services. Application hosting, Back-up & Disaster Recovery, Data Protection, Help Desk, IaaS, Managed Print, Managed Security, Managed Storage, Managed VoIP, Mobile Device Management, Network Operations Center, Remote Monitoring, Virtual Desktop, 92% of the SP500 list offered managed services 89% offered cloud services 14

15 Consolidation of <$1m partners continues; 45% of large partners active with M&A with 1/3 absorbing an acquisition from Had no M&A activity 94% 83% 79% 78% 55% BUT of largest (>$500m) acquired another company in <$500k $1-4.9M $ M $ m $500m+ 32%» Consolidation still steadily underway across the channel; driven by financial pressures and larger solution provider acquisitions» Formal partnering is still nascent for all sizes» Acquisitions distract execution, stalls financial investment; demands marketing & branding support 12% 12% 4% 7% 9% 10% 9% 7% 1% 3% 5% 0% 1% 0% 1% 0% 0% 0% 0% No M&A activity No - but we are formally partnering We acquired another company We merged with another company We were acquired Q: Did your company have any corporate merger or acquisition activity in the past 12 months? (buying, selling or merging with another commercial business) (choose all that apply) 15

16 Professional Services & Managed/Cloud Services continue to grow as % of revenue; largest SPs still most dependent on Hardware revenues Revenue Mix (Aggregate) 30% 26% 22% 20% 34% 40% Hardware Software Professional Services Revenue Mix (Annual Revenues) $500M + 26% 14% % Managed or cloud services 31%» Professional services growth driven by cloud and converged infrastructure architectures» Managed Services now more than ½ of traditional hardware sales» Largest solution providers still most dependent on hardware revenues 28% 16% Hardware $100 - $499.9M $50M - $99.9M 33% 41% 21% 25% 30% 24% 16% 10% Software $20M - $49.9M 30% 23% 30% 17% $10M - $19.9M 33% 18% 36% 13% Prof. Serv. $5M - $9.9M $1M - $4.9M 25% 23% 18% 19% 38% 41% 16% 19% Managed or cloud services $500k k 28% 23% 34% 15% <$500k 20% 16% Q. What were your company s total revenues? Q. What was your mix of revenue in between hardware product resale, software resale or original sale (your own applications), professional services (either pre-sale or post-sale) and managed services/cloud service? 53% 11% 16

17 Vendor Key Imperatives VENDOR RELATIONSHIPS Create & Share Services Delivery IP & Enablement» Profile and segment service delivery- capable partners» Build and share prof. service & managed service IP (SOWs, pricing, methodologies) with target partners to collapse time to capability TECHNOLOGY INVESTMENTS Make a bet on Leading Service Providers» Choose Service Provider winners, negotiate internal support for their role in the field sales GTM model» Invest in Alliance relationships to support their partner programs 17

18 Strategic vendor relationships narrowing as leading vendors demand loyalty and investment; cloud solution providers more leveraged on strategic lines VENDOR RELATIONSHIPS DEFINITION # OF VENDOR LINES (MEDIAN) % OF REVENUES STRATEGIC TACTICAL Generating a significant amount of revenue, highly involved with them at the sales, marketing and technical levels 3 49% Generate a significant amount of revenue with these vendors; product alternatives exist and we are not strategically invested in these lines (both 4 in) 3 27% 55% OPPORTUNISTIC Infrequent and small purchases, reactive 5 24% based on our customers demands 20% Q: For each of the following categories of IT vendor relationship types, with how many vendors are you currently engaged and what percent did each type represent of your total revenues in? 18

19 All business models have formal Consulting and Managed Services practices; Consultants have least focus on hardware resell/integration Hardware resell/ integration IT Consulting Services VAR Consultant SI MSP 58% 22% 56% 53% 51% 73% 59% 68% Managed Services 40% 25% 37% 82% Cloud Services (SaaS, IaaS, PaaS) Network Design & Management Infrastructure design & implementation Top Solution & Services Areas - 34% 31% 27% 59% 43% 28% 48% 56% 38% 20% 41% 51% Security Services 25% 27% 31% 44% TECHNOLOGY INVESTMENTS» Hardware resell & integration services still fundamental for most business models» Managed services well established; Cloud Services still emerging, driven by MSPs» Traditional infrastructure skills not broadly translating to IaaS offerings» Least formal offerings: - ERP/CRM applications (9%) - Big data (13%) - Internet & voice solutions (14%) Q: For which of these core business activities or solution/service areas did you have a formal offering during? (must represent 10% or more of your revenues) 19

20 Branded systems, storage & security remain top priority for Legacy & Emerging business models; focus on software infrastructure & applications lagging Strategic Investments (Aggregate) Branded systems and servers 38% By Legacy Business Model VAR SI Consultant MSP Branded systems & servers Branded systems & servers Software apps. IaaS Storage Security SW and/or appliances Computing devices Infrastructure as a Service 32% 30% 29% 28% Storage Security Security Security Software apps. Branded systems & servers Branded systems & servers Security Software applications 27% Software infrastructure Custom systems Voice and data networking Unified communications/voip Hardware Platform as a Service 23% 21% 21% 20% 19% 17% By Cloud Business Model Cloud Reseller /Agent Cloud Builder Cloud Consultant Branded systems & servers Cloud Service Provider Cloud Broker IaaS IaaS Security IaaS Security Cloud App. Provider Software applications Software infrastructure Storage Storage Storage Storage IaaS IaaS Q: In which of these product or solution categories is your company planning to strategically invest? ( strategic investment is defined as hiring specialized staff, bringing on new product lines, getting additional 2015 IPED vendor The certifications Channel Company or conducting focused, outbound branding or demand-generation marketing campaigns): 20

21 Critical vendors reflect focus on building or selling infrastructure, with broadening of virtualization skills; converged infrastructure key priority 2014 Critical Vendor Relationships Based on top 10 mentions in general, then ratings of critical Rank VAR Consultant SI MSP / Hoster VENDOR RELATIONSHIPS Virtualization and system vendors vie to be top lines for MSPs: 1) building their own physical or virtualized infrastructure, or 2) setting brand preference for their clients on-site or off-site managed infrastructure Traditional infrastructure focus; paves way for IaaS migration Higher focus on storage solutions and custom systems; converged infrastructure vblock and FlexPod offerings highlighted Q: Please rate the relative importance to your business of these product lines for 2014 (rating scale: 1 critical, 2 - moderately important, 3 - neutral, 4 - moderately unimportant, 5 - not relevant or unimportant) 21

22 Software development platforms and virtualization dominate critical rankings in 2016; Google makes top 5 and Cisco elevated 2016 Critical Vendor Relationships Based on top 10 mentions in general, then ratings of critical Rank VAR Consultant Syst. Integrator MSP/ Hoster Year Over Year Changes: Microsoft Microsoft Virtualization and software development platform dominance; software - defined everything Amazon up 8% year-over-year; Google makes top 5 list Cisco s internet of everything attracts managed services/cloud business models SI s still focus heavily on converged infrastructure = new to top 5 list from 2014 Q: Please rate the relative importance to your business of these product lines for 2016 (rating scale: 1 critical, 2 - moderately important, 3 - neutral, 4 - moderately unimportant, 5 - not relevant or unimportant) 22

23 Vendor Key Imperatives GROWTH STRATEGIES Invest in Next-Gen Selling Skills» IT as a service involves new buyers, new buying behaviors, new cost justification models; ultimately new sales models» Update sales curriculum, if co-selling with direct sales with corporate sales methodology, update and train partners as appropriate Fuel the Engine, to Drive Growth Remove barriers to partner evolution:» Build end-user demand for certified tech skills» Tie MDF to specific re-partner branding and demand gen activities for managed/cloud services» Capital for financing and selected investment in partners building new practices 23

24 Plans for top-line growth diversified; enhanced sales methodology is top priority across all business models Top-Line Growth Strategies Enhance our sales methodology or approach Increase our investment in company branding and market visibility Enter a new market (customer) segment or vertical industry Enhanced sales methodology broad imperative across all partner types: - Services vs. products - Annuity vs. project - Appeal to LOB and IT - Financially and outcome-measured - Demanding customer breadth vs. depth Branding and visibility #2 initiative Not significant amount of new hiring; retraining success is critical Increase our sales staff (hiring) Market/vertical expansion not top priority; dependency on organic growth Partner with a complimentary business to create and market a set of combined capabilities Q: What are your top plans as it relates to the growth of your top-line sales? (choose top 2) 24

25 Enhanced sales methodology key to revenue growth with old and new business models; cloud models prioritize marketing & branding higher to drive revenues Top-Line Sales Growth Initiatives (Legacy Business Models): Rank VAR S.I. Consultant MSP Enhance our sales methodology Increase our sales staff (hiring) Increase our attach rate of services to products Enhance our sales methodology Enter a new customer segment or vertical market Partner with a complementary business Enhance our sales methodology Partner with a complementary business Enter a new customer segment or vertical market Enhance our sales methodology Increase our sales staff (hiring) Expand into a broader geographic coverage Rank Cloud Reseller/Agent Cloud Builder Cloud Consultant Cloud Service Prov. Cloud Broker Cloud App. Provider Enhance sales methodology Enhance sales methodology Enhance sales methodology Enhance sales methodology Increase branding & marketing Enhance sales methodology Top-Line Sales Growth Initiatives (by Cloud Business Models): Increase branding & marketing Increase our sales staff (hiring) Increase branding & marketing Enter a new customer market Partner with another company Enter a new market Q: What are your top plans for 2014 as it relates to the growth of your top-line sales? (choose top 2) Increase our sales staff (hiring) Partner with another company Partner with another company Enhance our sales methodology Enter a new market Expand geographic coverage 25

26 Technical and service skills require enhanced methodologies and refreshed technical talent vs. new products or certifications Technical & Service Delivery Initiatives More effective maintain and upgrade the technical competency of our existing staff 41% Not always measured by new certifications (new hiring, refresh training, methodologies) Enhance our service delivery methodology 38% Can be impacted by vendor support: (work scoping, rate structures, reference architectures) Obtain technical certifications in one or more technology vendors' products 30% Cement a relationship with a new technology vendor Begin a new practice area, focused on a new vendor brand or solution type 20% 20% Vendor dependencies of new products or technical certifications rank below methodologies and skills maintenance Q: What are your top plans for 2014 as it relates to the growth of your technical or services-delivery expertise? (choose top 2) 26

27 Maintain & upgrade technical skills and service delivery methodologies critical to old and new business models; technical expertise measurement will not be new certifications alone Rank VAR S.I. Consultant MSP Maintain & upgrade staff tech skills Enhance service delivery methodology Maintain & upgrade staff tech skills Enhance service delivery methodology Obtain 1 or more vendor tech. certs Maintain & upgrade staff tech skills Enhance service delivery methodology Maintain & upgrade staff tech skills Enhance service delivery methodology New practice; new vendor or solution Obtain 1 or more vendor tech. certs Maintain & upgrade staff tech skills Rank Cloud Reseller/Agent Cloud Builder Cloud Consultant Cloud Service Prov. Cloud Broker Cloud App. Provider Maintain & upgrade staff tech skills Enhance our service delivery methodology Maintain & upgrade staff tech skills Enhance our service delivery methodology Obtain 1 or more vendor tech. certs Enhance our service delivery methodology Maintain & upgrade staff tech skills Enhance our service delivery methodology Maintain & upgrade staff tech skills Enhance service delivery methodology New practice; new vendor or solution Obtain 1 or more vendor tech. certs Q: What are you top plans for 2014 as it relates to the growth of your technical or services-delivery expertise? (Choose top 2) 27

28 Plans for profitability growth focused on increase in recurring revenue services and better staff utilization Partner Profitability Growth Initiatives Increase overall percentage of (more profitable) recurring revenue services 49% Not Higher?? Points to remaining dependency on branded systems and storage Get better utilization out of our existing technical and services staff Increase our attach rate of services to products 22% 37% Ties to enhancing sales methodology and services-delivery methodology Charge more for our solutions and services Maximize vendor rebates and incentives 17% 16% $$$ Pricing or vendor incentives don t seem to be the priority; cloud and managed services growth changes front- and back-end pricing model dynamics completely Dropping under-performing vendor lines or practice areas 16% Reduce overall SG&A expense ratios (opex efficiency) 11% Cost management and access to capital isn t a high priority Get better access to capital or financing 10% Q: What are your top plans for as it relates to the growth of your profitability? (choose top 2) 28

29 Common profitability plans in old and new business models; increasing % of recurring revenues and better sales/technical staff utilization Profitability Growth Plans - By Legacy Business Model Rank VAR SI Consultant MSP Increase our attach- rate of services / products Profitability Growth Plans - By Cloud Business Model Increase % of recurring revenue Better sales & tech staff utilization Charge more for our solutions and services Rank Cloud Reseller/Agent Cloud Builder Cloud Consultant Cloud Service Prov. Cloud Broker Cloud App. Provider Increase % of recurring revenue Better sales & tech staff utilization Increase our attach rate of services to products Maximize vendor rebates & incentives Charge more for our solutions Q: What are your top plans as it relates to the growth of your profitability? (choose top 2) 29

30 Biggest obstacles focus on customer buying cycle and competition from diverse competitors; access to technical talent less of a concern Business Obstacles Longer sales cycle/delayed customer budgets 47% Longer sales cycles & delayed budgets reflective of transition to managed services & cloud; now over 50% of IT investments Competition from traditional peers 38% Competition from new market entrants (esp those focused on IT as a service offerings) Competition from vendors' direct sales teams Access to qualified technical talent Lack of capital for investment 32% 29% 21% 20% Non-traditional business models pose new local and national competition; traditional Vintage VARs most at risk Access to technical talent big historic issue; reflects re-focus on new practice development and sales methodologies Access to qualified sales talent 19% Q: Which three represent the biggest obstacles your firm will face in achieving your top business goals (choose top 3) 30

31 Combination of delayed customer budgets & longer sales cycles plus competition from all sides makes investment in new business models very challenging Obstacles - By Legacy Business Model Rank VAR S.I. Consultant MSP Obstacles - By Cloud Business Model Rank Cloud Reseller/Agent Competition from traditional peers Competition from vendors direct sales force Cloud Builder Competition from new market entrants Competition from vendors direct sales force Customer longer sales cycles/reduced budgets Competition from traditional peers Competition from vendors direct sales Cloud Consultant Cloud Service Prov. Customer longer sales cycles/reduced budgets Competition from traditional peers Competition from new market entrants Competition from new market entrants (esp. XaaS companies) Competition from new market entrants Competition from vendors direct sales force Competition from new market entrants (esp. XaaS companies) Cloud Broker Competition from traditional peers Competition from vendors direct sales force Access to qualified technical talent Cloud App. Provider Competition from new market entrants Competition from traditional peers Q: Which three represent the biggest obstacles your firm will face in achieving your top business goals? (choose top 3) 31

32 In a Cloud and Managed Services Market Enabling Technology Partnerships The channel community s trusted authority for growth and innovation for more than three decades.

33 This Research - In Context Channel Census (2014) Sales Model Transformation (2014) Business models Cloud adoption Services orientation Growth plans Overall challenges Staffing Compensation LOB vs. IT contacts Selling Methodologies Marketing Transformation (2015) Spending Demand Generation Repositioning & branding Staffing Use of digital marketing & social media Emerging Technology Emerging Technology End-user and Partners Rates of tech adoption Key practice investments How cloud & MSP skills are helping 33

34 Emerging Technology Segments - Defined Custom application development for cloud/saas and/or mobile deployment; can be either new or retrofit of legacy applications Remote data access and security monitoring services for mobile devices, using corporately defined policies Collecting, organizing and analyzing large sets of unstructured data to discover patterns and other useful business information A vision for IT infrastructure that extends virtualization concepts such as abstraction, pooling, and automation to all of the data center s resources and achieve IT as a service Managing network services through decoupling the network control and forwarding functions; network becomes directly programmable and the infrastructure abstracted The policies adopted to prevent and monitor authorized access (or denial) and identity on a corporate network; includes identity and access management and authentication Delivery of voice communications and multimedia sessions via Internet Protocol (IP) and delivered as a cloud service with supporting management and reporting A network of physical objects embedded with electronics, software, sensors and connectivity to enable them to exchange data with the manufacturer, operator and/or other connected devices 34

35 Emerging Technology Segments - Defined Grouping multiple information technology (IT) components into a single, optimized computing package. May include servers, data storage devices, networking equipment and software for IT infrastructure management, automation and orchestration. From either a single vendor or multiple vendors. Examples: VCE Vblock or Cisco and NetApp s Flexpod Integrated infrastructure delivered in a pre-configured appliance from one vendor. The server, storage, networking and software are software defined and all integrated such that the components cannot be broken out and used separately. Examples: SimpliVity OmniCube or Nutanix Extreme Computing Platform HP ConvergedSystem 250-HC StoreVirtual CS250 35

36 Respondent Profiles End-Users N=244 Primary business models - VAR, Consultant, SI (top 3) Secondary business models - Consultant, SI, VAR, MSP (top 4) Median annual revenue = $3m (mean = $242m) Revenue mix: 54% of revenues sold to companies with <$5m in annual revenues; 24% to companies with >$100m Cloud Solution Provider Models: Consultant 51% Cloud Service Provider 38% Cloud Agent or Reseller 34% Cloud Application Provider 21% Cloud Builder 19% $10.5m annual revenues (median) - $222M (mean) 570 employees (mean 4,478) 73% based in US with all also offices in US Key industries: Financial services Healthcare Manufacturing Non-profit Solution Providers N=442 Cloud Svs. 8% Managed Svs. 18% Project Svs. 27% SW 20% HW 27% 36

37 Shift in Revenue Categorization New Research Methodology Revenue Categorization Prior to 2014 End-User s 2014 Budget Allocation - New Categorization More holistic view of product + services revenues Customer-owned/on premise Hardware (on prem) 32% Shows transition from onprem. to cloud delivery models for both infrastructure & apps. On-site Managed Service Software (on prem) 31% Combines 2 types of managed services INTO ONE CATEGORY Off-site Managed Service Private Cloud Project-based Services Managed (annuity) Services 15% 13% Combines all cloud delivery models into one category (resale, agent, builder) and all types of cloud deployment (private, public, hybrid) Public Cloud Cloud Services (incl. SaaS & IaaS) ** 9% ** Private Cloud budgets are grouped within Cloud Services. Q: What percentage of your organization s 2014 and anticipated 2016 budget was or will be spent on the following types of products or services? 37

38 Overall Trends Accelerating shift to a software and services based Solution Provider role See Cloud and Managed Services fundamental to their success with emerging technologies Represents radical change in software and services capabilities; average SP not yet prepared End-users actively engaging MSP and Cloud Providers Expecting SPs to play active role in architecture and pre-sales planning for new software and service-based technologies Need to help solution providers accelerate Cloud, Software and Servicesdelivery investments and capabilities P2P Collaboration initiatives critical to health of ecosystem 39

39 Partners required to have a steep set of skills to take full advantage of emerging software and services-based technologies CLOUD AND MANAGED SERVICE SKILLS PROVISIONING CONTRACT MGMT./SLA CAPACITY & CONSUMPTION MONITORING VDI AND/OR MDM DISASTER RECOVERY/ BU REPORTING & ANALYTICS L1/L2 HELP DESK PROJECT- BASED SERVICE CAPABILITIES PRE-SALES DISCOVERY & ASSESSMENT WORKLOAD ASSESSMENTS TUNING & TESTING DATA MIGRATION APPLICATION INTEGRATION PROJECT & LABOR MANAGEMENT SKILLS APPLICATION CUSTOMIZATION TRAINING TECHNICAL SKILLS MULTI-VM VIRTUALIZATION (SERVER, STORAGE, NETWORKING) NETWORK ARCHITECTURES (E.G.SWITCHING) STORAGE ARCHITECTURES NETWORK SECURITY OPENSTACK IT STRATEGY & ARCHITECTURE BUDGETING STAFFING OUTSOURCING STRATEGY MOBILITY STRATEGY APPLICATION MODERNIZATION SERVICE DELIVERY POLICIES CHANGE MGMT. 40

40 Enabling Technology Partnerships The channel community s trusted authority for growth and innovation for more than three decades.

41 Key Takeaways 1. Services now 40% of end-user budgets; Continued rise of cloud services as % of budget 2. Significant changes in customer buying process continues; CFO, COO decision makers now extremely influential 3. End-users reach out to Cloud Solution Providers and MSPs to guide their IT strategy and architecture 4. Private cloud deployments still high; act as foundation to future services-based technologies 1. High degree of investigation of all core emerging technologies; limited deployment of software-defined technologies 2. Highest deployment of network security and mobility applications/device management 3. Brand biases behind IaaS and SaaS infrastructure components less important to end-users than partners 4. Solution providers investing furthest ahead of customer demand on SDN 42

42 Continued end-user IT budget shift toward cloud services; nearly 40% of budgets now devoted to services IT Spending IT Spending Cloud Services 9% Cloud Services 13% Managed Services 13% Hardware 32% Managed Services 13% Hardware 31% Project Services 15% Software 31% Project Services 13% Software 30% Q: What percent of your organization's 2014 and anticipated 2016 IT budget was or will be spent on the following types of products or services? (N 244; Mean) 43

43 End-users reach out to MSPs and Cloud Integrators increasingly to guide their IT strategy and architecture 35% 30% 25% 20% 15% 10% MSPs and Cloud Integrators projected influence increasing; approaching influence of traditional IT Consultant Hardware vendor direct influence down 5% 0% 60% 40% Software vendors more influential than hardware vendors; aligns to virtualized infrastructure and cloud applications Q: What type of IT vendor or solution provider had the greatest influence in your organization's overall IT strategy and architecture in 2014, and who do you project to have the greatest influence in 2016? 20% 0% HW vendor SW vendor 44

44 Partners perceive much higher rates of decision making change than end-users; budgets shift to MSP and cloud providers and new decision makers continue to be involved No material changes Budget shift to MSP and cloud vendors New people in buying process New vendor /SP eval process 18% 18% 21% 29% 29% 29% 27% 34% 40% 56% 22% Partner Perspective Significant rate of change across the board in last 2 years Still significant difference in partner vs. end-user perceptions of change Greater control by LOB to eval and spend Not in data Longer vendor evals 15% 8% Shorter vendor evals 15% 10% Changes to procurement process 12% 15% % 21% Continued, steady budget shift to MSP and cloud vendors Nearly 20% said LOB has greater autonomy to control & spend IT $$ - ties to rise in services revenue mix Q: Whattypesofchanges,ifany,hasyourcompanymadeinhow you makeitacquisition decisions now that IT capabilities are available fromsoftware as a Service (SaaS)and Infrastructure as a Service (IaaS) providers? 45

45 % IT products and services solutions choices and expenditures Non-IT Line of Business decision makers now drive up to 40% of IT solutions & expenditures 76% Up to 40% 61-75% 41-60% of IT solutions and expenditures will be decided by Line of Business Managers in 2016 (84% of end-user respondents) 21-40% 11-20% 1-10% Business users are now more comfortable with the cloud and are raising the issue with their IT groups. We see collaboration applications most often driving this internal collision. 0% 10% 20% 30% 40% 50% CEO, $6m Built on the Cloud provider Respondents Q: What % of your IT products and services solutions choices and expenditures will be decided by Line of Business Managers or other executives outside of the CIO/IT Manager's reporting line in 2015? In

46 Solution providers selling all services more frequently to COO & CFO; CIO and IT Directors still primarily driving cloud decisions COO or VP Operations CMO CFO CSO/CISO IT Dir Applications IT Dir Networks/Security IT Dir (general) CIO 0% 10% 20% 30% 40% 50% 60% Software Hardware 0% 10% 20% 30% 40% 50% Cloud Services Managed Services Proj. Services Selling all services more frequently to the CIO (vs. products) CFO involved more often with all services, especially cloud COO or VP Ops. involved more often with all services CIO and IT Directors more involved with cloud decisions than with managed or project-based services Q: Which of these customer roles are your most typical point of contact when selling each type of product or services offering? 47

47 End-user emerging technology adoption aligns with partner practice investment; focus on network security and mobile applications Network security Cloud based VOIP Mobile Apps Internet of Things (M2M) SDDC 10% 7% 16% 37% 44% 27% 31% 40% 34% 36% 38% 24% 28% (Mobile Apps. Development) 31% (MDM) 17% 18% Partner Perspective End-users investigating all technologies, with limited exposure to SDN and SDDC at this time Most mature technologies carry greatest rate of adoption for customers and solution providers Customer demand aligns with partner practice investment SDN 7% Deploying Investigating 45% 23% We re waiting out the hype on SDDC. The disruptors there today don t have enough market credibility, especially with my enterprise customers. $65m SI and FlexPod partner Q: Which of these emerging technologies do you anticipate either investigating or deploying in 2016? (N 244) 48

48 Last 12 Months Private cloud implementation still high; end-users still think brands are important to infrastructure using standard branded components 51% implemented a private cloud in last 12 months >50% implemented private cloud with branded components DK 4% Yes, 51% No, 45% 24% 18% 58% Standard branded servers, storage and software tools from leading IT vendors Vendor pre-integrated stack of servers, storage and SW tools built for private-cloud implementations Vendor appliance specifically for Private Cloud Private cloud implementation may not lay a foundation for SDDC and SDN, since a private cloud only has to offer traditional provisioning and management. SDDC is supposed to create the data center that can encompass all -- private, public, and hybrid clouds. VCE Solution Provider Q: Have you implemented a private cloud in the last 12 months? Q: How would you describe the private cloud you implemented? 49

49 End-users and partners both place high value on brands powering IaaS & SaaS solutions; cost constraints will encourage move to converged and hyper converged infrastructure PARTNER 11% 22% Not Important At All Neither Important nor Unimportant Important Extremely Important 48% 19% 44% of end-users thought brands were not important or were neutral applies to public IaaS and SaaS solutions Partners place higher value on hardware and software brands for IaaS and SaaS solutions than their customers 3x higher rating of extremely important SP perceptions likely apply more to their private cloud deployment trend, where brands are visible and/or on premise END USER 15% 29% 49% 7% Piece parts or best-of-breed is still the best strategy for us. But best-of-breed can be very expensive. Great quality, but there s constant price pressure from customers. Regional VAR/MSP in So. Cal Q: When making purchase decisions for Infrastructure (IaaS) or Software as a Service (SaaS), how important is it to your company which hardware and software brands are used to power these services? 50

50 Our Managed Services offering builds trust with our clients. Since we re looking at their IT operations every day and solving problems together they re a lot more inclined to listen to us when we bring a new technology to invest in. President and COO, $40m MSP and Microsoft/Cisco VAR 51

51 Enabling Technology Partnerships The channel community s trusted authority for growth and innovation for more than three decades.

52 Key Takeaways Solution providers believe their cloud and managed services skills are important to their success with emerging technologies Solution providers still in build-mode with their professional services to support their cloud practices; will lay foundation for services success with emerging technologies Infrastructure components for private and hybrid cloud moving toward converged; reluctant to invest in hyper-converged; prepares customers for consideration of software-defined architectures 53

53 Building recurring revenue streams is the most important issue for us in terms of our future investment in ANY technology area. We are a very labor-intensive business today, and we need to transition this quickly. President and COO, $220m SI, VAR and Cloud Integrator 54

54 Solution providers see cloud and managed services capabilities fundamental to their success with emerging technologies 90% 80% 70% 60% 50% 40% 30% 20% 10% To provide the ongoing analytics and trending to all the stores based on historical data, it would take longer than a month if it wasn t delivered in the cloud. It would be a nightmare! 0% Very or moderately important Neutral or Not Important $65M Big Data solution provider serving the textile manufacturing market Q: How important will your cloud and/or managed services capabilities be to the success of these technologies practice(s) in the next 12 months to you and your company? 55

55 Solution providers still in build mode on cloud project and professional services to support the growth of their cloud practices Primary focus with public is resale/agent role Public Huge jump in selling and implementing hybrid solutions Hybrid Still highest rates of pre- and postsale services activity overall Private Designed % 36% % 39% % 39% Sold % 55% % 54% % 64% Implemented % 46% % 51% % 49% Q: Which types of cloud consumption models did you design, sell, or implement with your customers in 2014? 56

56 Although partners still care about brands for private cloud infrastructure, the use of converged and hyper-converged infrastructure has increasingly from last year 79% 2015 Shift away from build-yourown IaaS/private cloud with branded components 46% 36% 16% 18% 4% converged and hyperconverged infrastructure deployment still minority, but growing quickly Standard branded servers, storage and software Vendor pre-integrated stack of servers, storage and software (converged) "From a visionary standpoint, it may be crazy to buy those big blocks of infrastructure when small solutions are more flexible." VCE partner Vendor appliance (hyper-converged) Nutanix is a vendor that is so far ahead of its time. VCE is more mature. Nutanix has challenges. Some customers don't understand it. It can be difficult to sell. It can be challenging. Owner & President, Strategic Storage Solutions (TX solution provider & Nutanix partner) Q. How would you describe the primary method you used to implement private cloud solutions this past year? 57

57 The number of IT resources even in our biggest customers are being reduced dramatically. What used to be 8 man shops are now 3 man, so they need our managed services even more. They think CI or HCI are the silver bullet. But there s always recurring services there for us. $30M SI/VAR with MSP practice, New England 58

58 Enabling Technology Partnerships The channel community s trusted authority for growth and innovation for more than three decades.

59 Key Takeaways End-users expect solution providers to take an active role in justifying new technology investment (pre-sales assessments and planning) SP investments in emerging technologies focus on network and server based infrastructure offerings; (network security, MDM, VoIP) SPs have modest expectations for high services attach rate and associated higher profits; indicates immature development of both project and annuity services strategy Marketing and sales teaming top the list of solution provider key investments for emerging technologies; need to drive demand ahead of excess technical enablement Vendor support requirements focus on core training and certifications; services enablement not a high priority, representing gap 60

60 End-users expect help with needs assessment, financial plan and demos in order to adopt emerging technologies (based on ranking of 1st or 2nd highest priority) Do an internal needs analysis Determine a financial plan or expected ROI Do a POC or demo on recommended solution Determine an architecture plan for how/when to deploy the technology Present vendor/brand choices and make recommendations for best 21% 28% 33% 31% 66% Lots of pre-sales support desired to build business case, esp. with lob decision makers so involved internal needs analysis, scoping and financial plan Less than 25% are ready for vendor/brand recommendations Deliver and manage the technology in an MSP model Do the internal training and change management for our staff Manage the technology implementation, testing and tuning process 10% 6% 4% Many of our clients don t have a predetermined IT budget. We work hard to help them build a strategic budget and plan, then maintenance of that plan and budget becomes part of our managed service. $200M Cloud Integrator and MSP Q: What are the most important ways in which you expect your IT solution provider(s) to help you evaluate or deploy these technologies? (N 224) 61

61 Solution providers invested most in network security and mobile device mgmt. so far; several emerging technologies already being delivered in MSP or cloud model Network Security MDM Mobile Apps. Develop. VOIP SDN 47% MSP 34% MSP 30% MSP 25% CLOUD 47% MSP 34% ON-PREM Network security dominant infrastructure/on-premise skill; nearly ½ deliver in MSP model, preps for SDN investment More than ½ of these technologies already being delivered in a managed or cloud service by partners with existing practices Big data/analytics None 35% CLOUD 35% MSP MDM driven by customer demand and ties into MSP practices SDDC IoT/M2M ON-PREM MANAGED SERVICE 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% CLOUD Q: For which of these emerging technologies has your company launched a practice in the last 12 months? (N- 440) SDN and SDDC standards still emerging; SPs not at critical mass yet 62

62 Majority of SP s expect only slightly higher profits on new tech. practices; highest expectations for increased profits aligned with SDCC and Cloud VOIP 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% May explain low rate of investment in app. dev. Highest perceived investment; detracting from profitability Highest overall expectation for more profits with network security Mobile App. Dev. MDM Big Data/Analytics Network Security Roughly on par Less profitable, due to investments of building the practice Slightly more Significantly more, due to high margin services attach rates Not sure 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Highest perceived margin opportunity SDN SDCC Cloud VOIP IoT/M2M 63

63 Between 40-50% of solution providers will leverage both new and existing vendor lines for emerging technologies Biggest leverage of existing vendor relationship Most common outreach to new vendor Most common category for leveraging both new and existing vendors - 60% 50% App. Dev. new skill for many legacy IT solution providers New Existing Both SDDC offerings available from many existing infrastructure vendors IoT requires existing infrastructure skills and new software capabilities 40% 30% 20% 10% 0% Mobile app. dev. MDM SDN SDDC Big Data/analytics Cloud VOIP IoT/M2M Network Security N N N N - 79 N - 98 N N N Q: For each of these new practice areas, are you supporting technology from an existing vendor, a new vendor or both? 64

64 Marketing tops list of key SP investments for emerging technology practice growth; GTM activities trump vendor certifications in the next 12 months 70% 60% 50% 40% 30% 20% 10% 0% 60% 50% 40% 30% 20% 10% 0% Mobile Apps. MDM Big Data/Analytic Network Security Pre-sales technical staffing New vendor technical certifications A lab or demo facility Field sales teaming with vendors New or enhanced marketing activities Customer success stories or references Enhanced technical support (field or phone) SDN SDDC Cloud VOIP IoT/M2M Q: In order to build a successful practice based on these emerging technologies, what do you anticipate to be the three most important investments for your company in the coming 12 months? OVERALL RANKING (AVERAGES) 1. New or enhanced marketing 52% 2. Field sales teaming w/vendors 48% 3. A lab or demo facility 48% 4. Pre-sales tech. staffing 47% 5. New vendor tech. certifications 45% 6. Enhanced technical support 44% 7. Customer references/success - 38% 65

65 SPs prioritize marketing as their #1 emerging technology investment; still need help to move messaging & demand generation from products.. 66

66 .. to outcomes 67

67 Top vendor support requirements are for technical training and formal certifications; lowest need for access to field engineers and pull marketing 24% Ties to need for presales influence Ties to goals around recurring revenue 15% 14% 12% 12% 12% 11% GREAT TECHNICAL TRAINING FORMAL SALES/TECH. CERTIF. PRE-SALES SERVICE DELIVERY METHODOLOGY POST-SALE TECH. INTEGRATION METHODOLOGY ACCESS TO FIELD ENGINEERS FIELD SALES TEAMING IN KEY CUSTOMERS MARKETING PARTNER TO END-USERS PRIORITY MDM BID DATA/ ANALYTICS SDDC SDN NETWORK SECURITY CLOUD VOIP IOT/M2M 1 TECH. TRAINING TECH. TRAINING SALES/TECH. CERTIFICATIONS TECH. TRAINING TECH. TRAINING TECH. TRAINING POST-SALE INTEGRATION METHODS 2 FIELD ENGINEERS SALES/TECH. CERTIFICATIONS SALES TEAMING PRES-SALES SERVICES METHODS. POST-SALE INTEGRATION METHODS FIELD ENGINEERS TECH. TRAINING 3 MARKETING PRE-SALES SERVICES METHODS. TECH. TRAINING SALES/TECH. CERTIFICATIONS PRE-SALES SERVICES METHODS SALES/TECH. CERTIFICATIONS PRE-SALES SERVICES METHODS Q: What support do you need most from the manufacturers of these emerging technologies in order to accelerate the success of this new practice area? 68

68 Training is Key. We only have so much time to allocate to pie in the sky technologies when we re trying to keep the existing technologies supported. Give us training that helps us understand how to support your technology and enhance our managed or recurring revenue services at the same time. That gets our attention! $40M MSP and Microsoft/Dell/Cisco VAR 69

69 Marketing investment high dependence on vendors low; training, certifications and access to sales/se teams are top SP needs from vendors SOLUTION PROVIDER KEY INVESTMENTS SUPPORT NEEDSFROM VENDORS New or Enhanced Marketing 52% Great technical training 24% Lab or demo facility 48% Formal sales/tech. certif. 15% Fiels sales teaming w/vendors 48% Pre-sales service delivery methodology 14% Pre-sales technical staffing New vendor tech. certifications 47% 45% Field sales teaming in key customers Access to field engineers 12% 12% Pre and postsale services mentoring underserved Enhanced technical support 44% Post-sale tech. integration methodology 12% Customer references/case studies 38% Marketing partners to endusers 11% Q: What support do you need most from the manufacturers of these emerging technologies in order to accelerate the success of this new practice area? 70

70 What support expectations do you have of your leading vendors to help the growth of your emerging technology practice(s)? #1 best vendor? Nable by Solarwinds. They have been just AWESOME to work with! They are Johnny-on-the-spot with anything we need and are very involved in our strategic direction across the board. We feel really important to them. $200M SI, VAR and Cloud Integrator We feel like we re repeating the mistakes other solution providers have made, and we can t afford to. For example, how to exploit services implementation with the customer. The vendors see these wins/losses all the time, but they charge us too much to collaborate on this stuff. $65M SI and Cloud Integrator specializing in manufacturing 71

71 Vendor Guidance 1. Continue to invest in pre-sales training and marketing tools around businessoutcome and financial ROI selling 2. Enhance training specifically around pre-sales architecture services; include sharing of services methodologies 3. Build collaboration vehicles between successful MSP and cloud partners and legacy VAR/SIs 4. Continue to find ways to offset solution provider up-front costs for training and practice development in emerging technologies, with longer-term payback to you 72

72 Enabling Technology Partnerships The channel community s trusted authority for growth and innovation for more than three decades.

73 Public Cloud Hybrid Cloud Private Cloud Top Cloud Software Applications: By Delivery Model (End-users) Public cloud services remain focused on non-mission critical SaaS apps Hybrid cloud used to blend mission- critical applications with infrastructure scalability Private cloud used to scale legacy applications Payroll 20% Industry specific apps. 16% Mail/Messaging 34% Collaboration/Teamroom 20% Content Mgmt. 16% Industry specific apps. 29% Human Resources 18% Collaboration/Teamroom 15% Security 26% Mail/Messaging Customer relationship management 18% 17% Security Office Productivity 14% 14% Human Resources Content Mgmt. Payroll 25% 25% 24% Office productivity Content Mgmt. 8% 13% Mail/Messaging Human Resources Customer relationship management 13% 13% 12% ERP Customer relationship management Office Productivity 24% 23% 23% Industry specific apps. 6% Business intelligence 12% Business intelligence 21% Q: Please specify which of the following applications your organization has already deployed or will deploy in 2015 via these three major cloud delivery models 74

74 Public Cloud Hybrid Cloud Private Cloud Top Cloud Infrastructure Services: By Delivery Model (End-users) Public cloud use focused on storage, back-up & restore Private cloud foundation is virtualized servers & desktop, moving into security services Storage Mgmt. BU an Restore Web traffic mgmt. MDM Mgmt. Security Services: Remote Storage Mgmt. BC/DR Storage Mgmt. Offsite Storage Network/Infrastr. Mgmt. Server Virtualization Security Services Security Services: VPN 14% 13% 13% 12% 12% 12% 11% 11% 11% 11% 30% Mgmt. Security Services: Remote Help Desk/Call Ctr. Mgmt. MDM Storage Mgmt. BU an Restore Storage Mgmt. Offsite Storage VOIP Services Storage Mgmt.: Archiving Web traffic mgmt. Storage Mgmt. BC/DR Peripheral Mgmt. Server Virtualization 16% 13% 11% 11% 9% 9% 8% 8% 8% 6% 6% 5% Server Virtualization Virtualized Desktop Security Services: VPN Mgmt. Storage Mgmt. BU an Restore Security Services: Remote VOIP Services Storage Mgmt.: Archiving Storage Mgmt. BC/DR Security Services 41% 34% 33% 32% 30% 29% 29% 28% 27% 27% Storage Mgmt.: Archiving 11% Storage Mgmt.: Infrastr. 5% Help Desk/Call Ctr. Mgmt. 27% Storage Mgmt.: Infrastr. 10% Desktop App. Mgmt. 5% Network/Infrastr. Mgmt. 26% Q: Please specify which of the following infrastructure services your organization has already deployed in 2015 via these three major delivery models. 75

75 End-User Decision Criteria Around Cloud Solutions 2016 Provide business continuity and disaster recovery Add IT system redundancy Allow for data or applications to be accessed Reduce new technology implementation time Enable flexibility or unlimited scalability of IT resources Move CapEx to OpEx Offload maintenance/administration of applications Control/improve profit margins Provide competitive business advantage (faster time Get access to new, innovative application functionality Compensate for lack of internal IT knowledge IT drivers around cloud still focus on operational efficiency & cost savings, disaster recovery and business agility Competitive advantage, faster time to market and innovation still not driving cloud deployment Reinforces solution provider focus on core infrastructure services Diversify IT systems 0% 10% 20% 30% 40% 50% 60% 70% 80% Most Important Least Important Q. Tothebestofyourknowledge,howimportantareeachofthefollowing decision criteria that may lead your company to deploy one or more cloud computing solutions in 2016? Please rate on a scale of 1 to 5 where 1 means "Not at all important" and 5 means "Extremely important." 76

76 Top Infrastructure Services by Delivery Model: Solution Providers Network/Infrastr. Mgmt. Storage Mgmt. BU an Restore Storage Mgmt. BC/DR Server Virtualization Security Services: VPN Storage Mgmt.: Archiving Storage Mgmt.: Infrastr. Enterprise App. Mgmt. Peripheral Mgmt. Printer Mgmt. Storage Mgmt. Offsite Storage Security Services Virtualized Desktop Web traffic mgmt. MDM Desktop App. Mgmt. VOIP Services Mgmt. Security Services: Remote Help Desk/Call Ctr. Mgmt. 34% Network/Infrastr. Mgmt. 34% Storage Mgmt. BU & Restore 33% Security Services 33% Security Services: VPN 32% Storage Mgmt. BC/DR 32% Virtualized Desktop 31% Help Desk/Call Ctr. Mgmt. 29% Desktop App. Mgmt. 29% Server Virtualization 27% Security Services: Remote 26% Storage Mgmt.: Archiving 26% Mgmt. 26% Storage Mgmt. Offsite Storage 24% Storage Mgmt.: Infrastr. 23% MDM 23% Web traffic mgmt. 23% Enterprise App. Mgmt. 22% Printer Mgmt. 22% Peripheral Mgmt. 18% VOIP Services 47% 45% 44% 43% 43% 41% 40% 40% 40% 39% 39% 37% 36% 36% 34% 34% 34% 33% 33% 30% Server Virtualization Mgmt. Storage Mgmt. Offsite Storage Virtualized Desktop Storage Mgmt. BC/DR Storage Mgmt. BU an Restore Storage Mgmt.: Archiving Security Services Security Services: Remote MDM Web traffic mgmt. Storage Mgmt.: Infrastr. VOIP Services Network/Infrastr. Mgmt. Security Services: VPN Enterprise App. Mgmt. Desktop App. Mgmt. Help Desk/Call Ctr. Mgmt. Peripheral Mgmt. Printer Mgmt. 34% 33% 32% 31% 31% 31% 29% 27% 26% 26% 26% 26% 25% 24% 22% 21% 20% 19% 13% 12% Q: Which of the following infrastructure services has or will your organization influence, sell and/or implement in 2015, through each of these delivery models? 77