Are you relevant? Chris Sharp VP Strategy rhipe. Cloud Channel Summit #RCCS15
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1 Are you relevant? Chris Sharp VP Strategy rhipe
2 Context change Cloud Big Data Mobility Enterprise Social Gartner Top 10 trends 2015 Cloud is the new IT reality Accenture 89% believe no big data strategy = business risk, market share loss IDC APAC $25bn M-commerce market in 2015 (accounting for 50% of all e-commerce) Avanade Majority of large companies are leveraging consumer-driven social networking instead of enterprise-class social
3 Context... more change Security IoT 3D printing Next Top 3 across most surveys But IDC $8.9tn & 212bn devices by 2020 Canalys 3D printing $16.2bn by 2018, CAGR 45.7% Shift Happens Wanted Analytics 35% of ads for engineering jobs prioritise 3D printing (Sept 14) Buyer pull vs Supplier push
4 Understanding the Bow Tie
5 Where is the Cloud market at? SOURCE : THE ASIA PACIFIC SME CLOUD COMPUTING ATTRACTIVENESS INDEX 2015
6 Where is the opportunity next year? Country HSP Opportunity($M) Current Penetration New Zealand $40 35% Singapore $41 31% Australia $212 29% Korea $338 16% Thailand $62 3% Malaysia $64 2% Philippines $61 1% Indonesia $117 0% Vietnam $43 0% Total $978 15%
7 451 Research hot off the press Microsoft to rhipe to you
8 451 Research hot off the press Microsoft to rhipe to you
9 451 Research hot off the press Microsoft to rhipe to you
10 451 Research hot off the press 55% Hosting provider involvement Microsoft to rhipe to you
11 Forrester Survey Key target survey sample scope Survey Scope Total: 79 interviews Target companies: rhipe cloud partners Target roles: Head roles like CEO, COO, CIO/CTO, senior managers, and managers Database: Database - provided by rhipe and augmented by Forrester Survey LOI: 25 to 30 minutes
12 What makes fast growing service providers different?
13 The fast growing IT partners are more likely to be Managed Services Providers Which one best describes your company? Managed service provider (MSP) 41% Total % from 79 IT partners 35% IT consulting firm Value-added reseller (VAR) Hosting service provider 15% 13% 16% 16% 24% 10% Systems integrator (SI) Direct market reseller (DMR) Independent software vendor (ISV) Trusted Advisor 5% 5% 3% 2% 6% 4% 3% 1% Source: 61 IT partners who expect to growth their business by at least 10% over the next two years The shift from VAR to MSP
14 These fast growing IT partners are aggressively growing their solution set on offer Are you expanding your service offerings, simplifying them, or keeping them the same or similar? Simplifying, 5% Same, 8% Expanding, 87% Source: 61 IT partners who expect to growth their business by at least 10% over the next two years Differentiation
15 They are more likely to be focused on professional services... and less likely on government For this calendar year, what is you organisation s top priority vertical? Professional Services 20% 16% Manufacturing Retail Banking & Financial management Government (Central, State) Others Healthcare & Life Science Education Telecom Electronics Travel & Transportation Energy/Utilities 2% 2% 2% 3% 3% 5% 7% 11% 15% 15% 16% Total % from 79 IT partners 14% 11% 13% 18% 6% 4% 4% 4% 1% 5% 4% Source: 61 IT partners who expect to growth their business by at least 10% over the next two years Results focused customers
16 Many of these businesses started their Cloud journey years ago When did you start offering Cloud services? Total % from 79 IT partners Less than a year 2% 3% 1-3 years ago 39% 42% 3-5 years ago 43% 38% 5-7 years ago 4% 5% More than 7 years ago 12% 12% Source: 60 IT partners Competitor Experience is growing
17 Growing revenue and competition will be the biggest challenges What are your company s top 3 business challenges? Growing revenue 21% 21% 11% Competition 11% 8% 25% Reducing costs 15% 8% 18% Increasing expectation from Customer 16% 13% 10% Increasing profit margin Finding and retaining people 8% 8% 16% 10% 8% 13% Rank1 Rank2 Rank3 Responding to our client s business 11% 5% 8% The rate of technology change 13% Poor support from our vendors 5% 5% Others 3% Source: 61 IT partners who expect to growth their business by at least 10% over the next two years Sales, Marketing and Automation
18 What is the difference between those companies that offer Cloud services and those that do not?
19 Cloud providers are much more likely to offer a broad solution set to many industries, BUT services and Industry vertical focus What statement best describes your firm? Does not offer cloud Offers cloud We are a provider of a narrow solution set to a broad set of industries We are a provider of a broad solution set to a narrow set of industries 11% 13% 11% 22% We are a provider of a narrow solution set to a narrow set of industries 12% 58% We are a provider of a broad solution set to a broad set of industries 21% Base: 79 partners; Source: A commissioned study conducted by Forrester Consulting on behalf of rhipe, January % Share of wallet and vertical IP
20 Cloud providers are much more likely to offer a broad solution set to many industries, BUT services and Industry vertical focus For the last calendar year, what were the top 3 key IT products & services that you sold? Horizontal solutions Vertical solutions IT Services that you Resell PCs, Printers & Other Hardware Networking Storage Intel Servers No cloud offering Other Revenue 5% 3% In-house Software 0% 2% Application Software Resold 0% 11% IT Services Delivered by your 16% 0% 2% 5% 0% 5% 0% 5% 5% 0% 0% 7% 15% 18% Cloud offering Base: 79 partners; Source: A commissioned study conducted by Forrester Consulting on behalf of rhipe, January % 58% Share of wallet and vertical IP
21 IT partners who sell cloud solutions are much more likely to sell... multiple solutions across more vendors How many professional solutions/services offerings do you sell to the average customer? Does not offer cloud What is the total number of vendors with whom your company has reseller or service provider agreements? No cloud offering More than 10 5% 30 or more 5% 10% 5 to 10 32% 42% 20 to to 19 21% 33% 38% 47% Less than 5 53% 68% Less than 10 18% 26% Base: 79 partners; Source: A commissioned study conducted by Forrester Consulting on behalf of rhipe, January 2015 Next logical purchase
22 Fast Growing Other interesting facts Likely to be mid-sized : Flexibility and Agility IT Services and Application focus, with Security, application and cloud software most likely to be sold Higher proportion revenue from cloud (64% vs 59%)
23 A fast growing rhipe customer is, on average A mid-sized firm, offering a growing portfolio of capabilities to their customers in the professional services, manufacturing, retail and financial services industries They have a strong focus on selling their own IT services keeping revenue in-house They sell security, applications, cloud, service management and analytics software and have embraced cloud as a delivery platform either from their own DC or that of an IT vendor These IT partners make a lot of their revenue from cloud and turn over around $ million dollars a year in total
24 How does Cloud help these partners? Cloud computing broadens the scope of the vendors they resell they have a much greater portfolio of capabilities to offer to client The greater portfolio of services means that they tend to sell more solutions per customer Cloud that help them sell to higher margin industries (such as financial services)and also helps them sell to larger businesses likely increasing the value of the contracts they sign IT partners that sell cloud computing are more likely to be aggressively growing their business Cloud-focused businesses sell much more of their own IT services meaning they keep more money in-house, passing less on to their partners
25 Service Provider Best Practice Framework Business Strategy (Commercialisation) Delivery Strategy (Consumption) Platform Strategy (Enablement) Research Strategy (Innovation)
26 IaaS Example Business Strategy (Commercialisation) Delivery Strategy (Consumption) Platform Strategy (Enablement) Research Strategy (Innovation) Moving up the stack
27 rhipe summary Not about a product or program Not about Cloud, Big Data etc. Holistic Is about businesses changing the IT agenda and demanding Service Based Business Solutions * Powered by IT
28 Call to action Be AGILE Stay RELEVANT Dare to be DIFFERENT
29 Thank you! #RCCS15
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