Charting the Cloud s Future

Transcription

1 The Intersection of Tech & Business: Charting the Cloud s Future Nan Boden, PhD, MBA Head of Global Technologies Partners, Google Cloud DECEMBER 6, 2016

2 Cloud Computing Enables New Technologies & New Business Models Cost Savings Security Digital Business 70% $305 Billion ⅔ CEOs Reduction in capital and operational costs versus on prem Cost of cyber attacks to hospitals over next 5 years Focusing on digital IT & business transformation strategies for 2016

3 The Evolution of Cloud Economies Standard Industry Models Are Changing Shift from Capex to Opex New Selling Motions; New Consumption Models New Buyers

4 Standard Industry Models Are Changing 65% Products 35% Services Revenue Mix Today: Partners Need to Transition from Value-Added Resellers Source: As Cloud Rolls In, Partners Should Transition from VAR to Value-Added Service Provider, Proprietary + Confidential CRN, quoting Tim Harmon, Forrester analyst (August 2015).

5 Standard Industry Models Are Changing 40% Products 60% Services Revenue Mix by 2020: To Value-Added Service Providers Source: As Cloud Rolls In, Partners Should Transition from VAR to Value-Added Service Provider, Proprietary + Confidential CRN, quoting Tim Harmon, Forrester analyst (August 2015).

6 The Shift from Capex to Opex Customers employ channel partners for business services more than for traditional IT services In which of the following areas has your business unit/it department used or do you expect to use technology firms? Business services Traditional IT services Overall digital strategy Customer experience strategy Implementing a business or technology change management program Multichannel strategy Implementing software-as-a-service(saas) Packaged applications implementation or upgrade Business intelligence/data management: planning/implementation Infrastructure virtualization and automation program to establish a private cloud Source: "What Customers Want: The Imperative for a New Value-Added Services Approach in the Proprietary + Confidential Cloud-Mobile Era," Tim Harmon, Forrester (January 2016).

7 New Selling Motions; New Consumption Models Traditional License & Maintenance Business Model Customers Are Demanding: Faster Time-to-Value Minimal Upfront Commitment Flexibility & Scalability Cloud Subscription & Consumption Usage Model Proprietary + Confidential

8 New Buyers Line of Business (LOB) customers increasingly involved in services purchase decisions Which of the following categories of technology decision-making are you significantly involved in? 55% 56% 58% Software Digital Agencies Third-party IT services Base: 1,205 global services business decision-makers Source: "What Customers Want: The Imperative for a New Value-Added Services Approach in the Proprietary + Confidential Cloud-Mobile Era," Tim Harmon, Forrester (January 2016).

9 $ Total Addressable Market The Opportunity: TAM Expected to ~Double by 2018 Cloud Current and Expected Total Addressable Market- Global $70B $60B +41% /yr $70B $50B $40B $30B $20B $35B +28% /yr $57B $10B $15B $0B Current Expected Case Best Case Source: Gartner WW Estimates of Total Addressable Market for Enterprise Cloud Software

10 Increase Revenue with Multiple Business Models Gross margin by Cloud business model, IDC Source: IDC 2016

11 Partner Profit Scenarios: Based on Business Models Managed Services Customer lifetime value driven Packaged IP Technology solution to solve customer need Reseller - first Sales and marketing driven Professional Services Project based

12 Innovation is Key to Your Success & Driving Value-Added Services + + = More opportunities to redefine innovation

13 Value-Added Services Drive Opportunity for the Channel with IoT IoT will grow to $1.7 trillion in 2020, up from $655.8 billion in IDC Source: Supercharged: How Solution Providers Are Moving The Needle In Today s Innovative IoT Market, CRN (October 2016) (August 2015).

14 Principles of Partnering for Google Cloud Open Innovation Fairness Transparency Shared Success leads us to open platforms and build + partner

15 Cloud business models are defined at the intersection of customer need and partner capabilities Strategic / high value project Complex/ custom Professional Services Differentiated Packaged IP Managed Services Traditional IT environment customer Cloud native customer Entrylevel Reseller-first Non strategic project

16 Example: Backup Use-Cases

17 Partners Can Help Assemble Solutions Proprietary + Confidential

18 What We See The rapid move to Cloud is disrupting existing business models, but. Customers - now more than ever - need the combination of innovation and services partners to deliver the solutions that help their businesses thrive.

19 Thank You! Proprietary + Confidential