Cloud Survival ToolkitPresented by JJ MilnerManaging Director of Global MicroMicrosoft Hosting Solutions Partner of the Year2011 WINNERhttp://www.globalmicro.co.za

What is cloud?

Cutting through the hype: To a managed service provider, cloud differs from the traditional

approach to outsourcing• On demand provisioning• Pay as you go – pay as you grow• Much lower cost as economies of scale are assumed• Near infinite capacity

Cloud is not virtualisation Cloud is not finance / off balance sheet financing

What’s the fuss about?

The rule of 78

Question

If you add R1,000 in new recurring business every month, how much will you bill by the end of year 1?

Answer

R78,000

What’s the fuss about?

The rule of 78

Question

If you add R1,000 in new recurring business every month, how much will you bill by the end of year 3?

Answer

R666,000

You’re going to be rich! Where do I start? What’s the catch?

• Upfront Investments are considerable• Any delay in growth means you are un-profitable• A new competitor can enter the market and change

the rules• Margins are thin… Pennies only count when you have

hundreds of thousands of them Don’t build your own

• Take a predictable margin (profit every month)

The Cloud can be a dangerous place for Service Providers

Anyone can talk to your client Anyone can sell to your client from anywhere in the world The internet means that clients can go direct and cut out a middle

man With an Opex only model, clients have no legacy commitments

and can switch freely between providers.

To remain relevant in a cloud world, you need a cloud survival toolkit

Control the conversation Make sure you are talking to your customers today Offer a comprehensive set of unified services

The cloud survival tool # 1

Move up the value chain Make sure your products have features relevant to local customers Go 24x7x365 – provide better SLA’s

The cloud survival tool # 2

Invest in your website Learn how to practice Search Engine Optimisation

The cloud survival tool # 3

Restructure your business so that you no longer rely on run-rate sales to pay your bills Build a Managed Services Practice (That’s where the margin is)

• Build a remote support capability• Build an asset management capability• Build a recurring billing capability• Build a vendor management capability• Be an IT department to the IT department

The cloud survival tool # 4

Partner with a Tier 1 hoster Let them take the financial risks and invest in the scale

The cloud survival tool # 5

Provide your own Cloud Embassy

Bring together to best cloud offerings – but keep it simple• 73% of customer’s IT stack today are based on Microsoft

Technologies• Using the MS as cornerstone of your cloud practise, means

easier migration and no learning curve for your customers Provide a single point of contact to your customers for all vendors,

services and products Provide one statement / bill each month for all Go beyond the router

• Leverage cloud based services to support your customer’s on premise requirements today.

Look for a Tier 1 Hoster that provides:

The complete Microsoft Communications Stack (Exchange, Sharepoint, Lync)

Hosted backup solutions White label offering – so that you can promote your brand and own

the client Automated Provisioning and administration portal for you, and your

customers Integrated ticketing to your help desk Syndicated website SEO optimised website content and brochures

with your branding and contact details

Look for a Tier 1 Hoster that provides:

Lead registration A partner manager who will ride along to customers to help you close

deals A white label recurring billing solution White label RMM tools that interface with SCOM SLA with penalties on every service – this is your name on the line An opportunity to set your own prices.

Thank you.