Moving to the windows azure cloud - Strategic options for getting to the cloud

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This deck, presented at the Microsoft Australian Partner Conference 2011, discusses considerations for partners building strategies for public cloud

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Moving to the Windows Azure Cloud

Strategic Options For Getting to the Cloud

Nigel Watson, Platform Strategy AdvisorMicrosoft Australia1

Introductions and AgendaWho We AreDPE Platform Strategy AdvisorsMain Talking PointsMoving to The CloudWhy?Evolution to Cloud ComputingMarket Opportunity and ImpactsWhat?Windows Azure Public Cloud TrendsPartner OpportunitiesHow?Cloud Business StrategyReadinessPrograms and ResourcesNigel WatsonPlatform Strategy AdvisorMicrosoft

Graham ElliottPlatform Strategy AdvisorAzure ISV, Microsoft

2

http://www.flickr.com/photos/raster/3072255833/sizes/l/in/photostream/The essence of strategy is choosing what not to do- Michael Porter Never waste the opportunities created by a good crisis - MachiavelliStrategy3

Impact to Partner TypesSellGenerate recurring revenue streamsCreate value-added solutionsUp-sell and cross-sellAttach servicesBuildNew applications and solutionsRapid development and deploymentExtend and customize cloud offeringsRepeatable IP salesCloud Service Vendors (CSV) - any entity that uses cloud services to create commercially available applications for monetary benefit HostExtend and customize cloud offeringsMigrate to and integrate solutions in the cloudManaged services, support,and trainingServiceBroaden the marketplaceIncrease wallet share: Host cloud applicationsExtend product offerings: Provide add-on servicesRESELLERSISVsSIsHOSTING PARTNERSOpportunities9/5/2011 2011 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.4MGX FY12

Azure Business Value Driversno matter where you are starting from

Uncover new revenue Application marketplace to grow salesPartner support eco-system

SellGrow your business

on the most open, comprehensive platform

Use what you knowCut development timeMost comprehensive platformDevelopInnovate Quickly

with fully managed hardware and software

Scale to demandReduce costsRely on world class security, continuity, privacyDeploy & ManageScale reliably & cost effectively

5

Dominic OHanlonMYOBIntroducingPartner Models for Azure

Customer buys Windows Azure Consumption from MicrosoftCustomer

Partner

Partner buys Windows Azure Consumption from MicrosoftCustomer

Partner

7

System Integrators are ISVs too!Source CodeFrameworksObjects, TemplatesApplicationsProductised ServicesVideo, Data, ImagesMethodologies otherIP is.Deal repeatabilitySuperior Gross MarginsOngoing Managed Services revenueOngoing long-tail revenueFurther IP enhancements

Driving

Identify and InventoryPackage and PriceDesign IP wins into business wins if possibleTell the story8

MonetisationFree UsageAd-Based RevenueFreemiumFree basic levelPremium upgradesCustomers pay a monthly amount

Discrete transaction units that can be easily measured and trackedPricing per unit of measure (storage, downloads, bandwidth)Revenue from advertisers not users

License FeeRelated Services ChargedRevenue ShareFree app use with charge on related services / or virtual goodsA share of revenue generated via the service providedA large upfront payment for the license

Per User/DeviceCustomers pay for each user/device using the product or service

Per MeterPer TransactionMonthly SubscriptionPer UnitPayment Type9

Financial considerationsCommitted Monthly Recurring RevenueCustomer Acquisition CostCMRR PipelineCash FlowCustomer Lifetime ValueChurn RateCMRRC-PipeCACCFCRLTV10

Sales and MarketingDirect customer relationship inherent to cloudBetter understanding of customer useResponsibility for customer dataYou may impact their business model as wellLower cost of entryFree customer trials, quick customer ramp-upNo deployment step to use applicationStudies show that business roles are likely buyersCloud applications resolve business capability gapsOps complexity moves to cloud reduces IT footprintBe ready for a risk discussion

Customer IntimacyQuicker Salesand Deployment

Sell to the Business11

Campbell JohnstonSMS Consulting

Adrian VitiSMS ConsultingIntroducing

Distribution and PartneringChannel and Partner dynamicsCustomer expectations are differentDeployment and Delivery are crucial parts of your strategy

DistributionSIs and ISVs are increasingly partnering for reach and salesCustomers still need support, training, integration and customizationFinished applications can still be building blocks for other offeringsMake sure you leave that door openCan you monetize the data?

Additional RevenueFrom APIs

Partnering13

Going to MarketBUILDANYTHINGSELLANYWHERE

Go to www.windowsazure.com/marketplace to start selling your appsCall to Action!New channel roles emergeFind networks effects if you canBrokers, Aggregators, and Marketplaces

Going To Market14

Operations24/7 BusinessSLA monitoring and managementToolingPartnershipsBillingHelpdesk Trouble Ticketing and Issue Resolution

Operations15Choosing your strategy

Optimize for cash flow to smooth the transition from upfront payment over timeUnderstand what revenue you lose, and what do you gain?Remember:You may impact your customers business modelYou may impact your partners business modelBe prepared to be flexible

http://www.flickr.com/photos/lydiashiningbrightly/3016016887/sizes/l/in/photostream/ReadinessLeverage what you know

The cloud technology portfoliomostly comprises the usualsuspects

Top Skill Sets to LearnNetworking and Infrastructure

Business Skills

Architecting for the Cloud

Integration

http://www.flickr.com/photos/lydiashiningbrightly/3016016887/sizes/l/in/photostream/

Training Paths for Cloud Up-SkillingDesign, configuring, and maintenance specialized in Exchange, Lync, or SharePointAnalysis and planning for O365 co-existence, SLAs, security, and networkingDesign, configuring, and maintenance across Exchange, Lync, and SharePointFrom Administrator to Cloud Services ManagerUse Visual Studio and .NET to build Web and SOA applicationsArchitecting on-premise applications to work togetherDevelop Azure platform services From Developer to Cloud DeveloperDesign and configure server networking, security, and virtualizationMonitoring, provisioning, and managing the data center with System Center 2012Service Management and automation, design deployment, and operational excellence (MOF/ITIL)From Infrastructure Specialist to Data Center Operations ManagerBuild Core On-Premise Skills Apply Core Skills for Hybrid EnvironmntsAdd New SkillsDesigning, installing, and administering SQL databasesCo-existence of SQL Server and SQL AzureArchitecting database solutions to mine data and work with other cloud servicesFrom Database Developer to Data StewardStep 12319

http://www.flickr.com/photos/corporatemonkey/51883538/sizes/o/in/photostream/Cloud Programs and Resources

Microsoft Platform ReadyProduct DevelopmentMarketing and SalesDevelopmentAccess to software and the latest software development kits Top rated trainingE-mail based developer support TestingValidates your application is current: Works with quality check Fully automated self service: no feeCan be used to fulfill Silver & Gold competency requirements in MPN

MarketingPassing Azure Platform Ready Test qualifies for Windows Azure logoReady to Go email, web banner, postcard and business letter templates, PR templateSalesIncluded in customer-facing product catalogs (e.g. Pinpoint)Included in the Buy Australia Software Catalog sent to over 5,000 organisations (Azure apps only)Go to www.microsoftplatformready.com to get signed upCall to Action!Helps you develop, test and take your product to market

21

Microsoft Cloud Essentials Pack Requirements & BenefitsREQUIREMENTSSell & ServiceDesign & Develop

Profile Sales Agreement:MOSPA: incl. 100-level training and assessmentCSA: requires (1) deal 12 months prior to enrollmentMSFT Online Services Sales: (None to start; active sales to continue benefit sale bar to be defined)

Profile

Platform Ready Signup & Register application

Annual Fee None for this programAnnual Fee NoneI build intellectual property delivered through the cloudI sell and deploy online services

Partner Selects Applicable Business Track and begins Qualification Process.

Can qualify for one or both tracks.

IUR & DiscountsO365 up to 250 licensesCRM Online up to 250 licensesIntune 25 PCsWindows Azure:Windows AzureSQL AzureApp FabricData Transfers

Marketplace Participation: Pinpoint

Training Platform with Targeted Cloud Training

Marketing ResourcesOnline Sales Tools: Demo Showcase, Profitability Modeler (Partner Order on Behalf TBD)

Pre-sales and Technical Support: Partner Forums for Cloud, BPOS Practice Accelerator

BENEFITS & RESOURCESorGo to www.microsofcloudpartner.com to get signed upCall to Action!22

Microsoft Cloud Accelerate Requirements & BenefitsSell & ServiceDesign & DevelopI build intellectual property delivered through the cloudI sell and deploy online services