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Take Your Customers to the Cloud Before Someone Else Does

Take Your Customers to the Cloud Before Someone Else Does. Susan DeFlorio, COO FiberCloud Inc. Susan.DeFlorio@FiberCloud.com. Agenda. Introduction Cloud landscape The global market is impacting your customers Change happens at an incredible pace What is the opportunity? Take the leap.

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Take Your Customers to the Cloud Before Someone Else Does

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  1. Take Your Customers to the Cloud Before Someone Else Does Susan DeFlorio, COO FiberCloud Inc. Susan.DeFlorio@FiberCloud.com

  2. Agenda • Introduction • Cloud landscape • The global market is impacting your customers • Change happens at an incredible pace • What is the opportunity? • Take the leap

  3. Who is FiberCloud? Cloud, Colocation & Connectivity • FiberCloud is an ISP, Cloud and IT infrastructure service provider • Headquartered in Seattle, WA • Over 10 years experience in colocation & managed solutions • A wholly owned subsidiary of a LEC, understand the CLEC space • Commercially provisioning SaaS solutions since 2009. • Focus on offering flexible, scalable best-in-class products and quality • Dedicated to partnering with providers to transform their business

  4. Cloud landscape

  5. Noise

  6. Noise

  7. Benefits you can deliver to your clients Will have access to new services and apps that they wouldn’t have in-house 77% 71% 63% 50% Will reduce costs Can use application from any device anywhere Software will always be up to date SMB Cloud Adoption Study Dec 2010 – Global Report (Edge Strategies)

  8. Macroeconomics– They impact to all of us • Shaky Global economy impacting foreign trade • Globally connected geopolitical events – Europe, The Middle East, Asia are felt here • Increasing food and gas prices across the globe • US Elections – Moody’s rating – The Debt • Restrictions on capital investment • New competition – national players coming into your market • Uncertainty

  9. “We always overestimate the change that will occur in the next two years and underestimate the change that will occur in the next ten. Don't let yourself be lulled into inaction. “ - Bill Gates

  10. Your customers are turning to the cloud

  11. What has happened in the past 2 years? • Consolidation – M&A, Large Telco/Network providers buying in • More applications, choices available • Significant adoption and acceptance – in house IT less significant barrier • Large revenue growth for Cloud Providers • Tablets have taken off – driving adoption Speaking of a quick turnaround….

  12. Predictions for the next 10 years • Cloud Services workload offloaded from PC “By 2020, most people won't do their work with software running on a general-purpose PC” - Pew Research • Cloud Computing Market Will Top $241 Billion in 2020 – Forrester Research • 5 billion Internet users by 2020 - Pew Internet & American Life Project

  13. The cloud means opportunity for you

  14. Solve more of your customer’s problems • Better tools – access to enterprise grade applications and services smaller customers don’t have access to • Scalability– ability to simply expand and/or contract quickly and affordably • Mobility- work securely from anywhere, anytime • Protection - easy first steps to Business Continuity & Disaster Recovery • Focus – spend less time & money on software & infrastructure & more time focused on their core business

  15. Challenges facing businesses today

  16. Breadth of applications in use by SMB today * Parallels 2012 US SMB Report

  17. Why are your customers moving to the cloud now? • Credit restricts investment • 70%of businesses indicate a restricted cash flow due to a lack • of available credit • Increasing capabilities • 85%of IT managers & business owners are considering cloud • as part of new IT spend • Desire to outsource • 70%of businesses report a desire to outsource IT solution • Catering to a mobile workforce • 70%of companies have employees who work outside the • office 3+ days a week Cheskin Cloud 2012,  AMI SMB Pulse 2010, Cisco SMB Survey 2010

  18. These are the players looking for your customers

  19. It’s the logical place for you to go Not only are emerging cloud providers reaching for your customers but CLECs, Telcos and ISPs are buying into the Cloud as well. • CenturyLink – Savvis • Time Warner Cable – Navisite • Verizon – Terremark • Cbeyond – MaximumASP Even retailers are getting into the cloud. • Best Buy (Geek Squad) – Mindshift

  20. Making the leap can be incremental • The opportunity is real • There is still room for new players • The market is dynamic • Leverages network connections, tier 1 support • Fits well with service-based business

  21. Projected growth in the next 2-3 years SMB use of paid cloud services Adoption Average Paid Services/Customer E-mail Edge Strategies survey commissioned by Microsoft Corp., “SMB Business in the Cloud 2012”

  22. How to get started

  23. You’re already poised to win • Your relationship & local presence give you a leg up • You are a trusted advisor, you can guide the way to the cloud • Monetize your offerings with services you earn margin on • Stickier relationships increase retention, reduce churn • Create bundled offerings & solutions • Move from break/fix to Managed Services, loop to value add

  24. SMBs need your help 52%don’t have the resources to get people trained 60%don’t have resources to implement new technologies & applications 57%have resources, but not the time Most prefer to buy services from a local provider— 31% feel this is critical

  25. Three basic models BUILD PARTNER • Quick time to market • Must select a product platform for the long term HYBRID • Mix of services offered on the customer premise or through your existing infrastructure combined with using a Cloud Service Provider

  26. Build vs. Partner vs. Hybrid Considerations BUILD PARTNER • Capital Investment - Hardware & Software • Facility Conversion - Central Office to Data center conversion costs- Develop Multi-carrier network arrangements- Secure (redundant) power, fuel & bandwidth providers • Support infrastructure - IP and application centric personnel - Implementation & management resources - 7x24 customer support - License fee administration • Sales & Marketing organization • Pay as you go – no upfront investment • Recurring revenue opportunity • Protection from technology obsolescence in a highly dynamic marketplaceTrained experts across multiple platforms • Go to market support & sales training • There’s no brass ring cloud solution, a broad portfolio is required • Data center grade security & standards • Enables focused on customer retention rather than technology infrastructure HYBRID • Not all applications are appropriate for the Cloud • Often times certain systems/infrastructure need to stay on the premise

  27. How FiberCloud built its hosting environment • Offered directly in Seattle, to resellers nationwide • Built in as much redundancy as we could afford (physical, network& hardware) • At least 2x (front end, application layer & storage) • Same story for security (hiring, practices) • Virtualize as much as we could (hardware benefit) • Technology staffing (Windows, Hyper-V, Solution Center, Citrix, User Applications) • Initially, third party provisioning systems • Local & non-local Backup • Defined business practices • Added geographic diversity • Not just technology • Track 85+ competitors • Development cycle

  28. Recurring revenue and bigger margins

  29. Business Strategy

  30. Internet Communications Bundles - CLEC Targets: • Broadband customers • Voice & data customers • Small to large businesses Customer benefits: • Stay connected & organized • One inbox, anytime, anywhere • Protect the business • Predictable costs • Eliminate number of vendors Cloud products to augment with: • Business Class Email • Microsoft Hosted SharePoint • Online Backup for Servers • Online Backup for PCs With the Cloud you can offer: • Integrate new products with existing Internet & Bandwidth • Integrate new products with existing Voice services • Your own the billing relationship • Increase margin • Add value and strengthen existing relationships • Reduce customer churn

  31. Small Business Bundles - ISP Targets: • Customers to protect – stickiness • Broadband customers • Small to medium businesses Customer benefits: • Stay connected & organized • One inbox, anytime, anywhere • Protect the business • Predictable costs • Eliminate number of vendors Cloud products to augment with: • Business Class Email • Microsoft Hosted SharePoint • Business Website • Online Backup for Servers • Online Backup for PCs With the Cloud you can offer: • Add new, stand alone products to your catalog of offerings • Bundle new products with your existing services • Offer web site development & maintenance • Your own the billing relationship • Increase margin • Add value and strengthen existing relationships • Reduce customer churn

  32. Managed Services, Desktop - MSP Targets: • Broadband customers • Voice & data customers • Small to medium businesses Customer benefits: • Stay connected & organized • One inbox, anytime, anywhere • Protect the business • Predictable costs • Scalable • Eliminate number of vendors Cloud products to augment with: • Business Class Email • Online Backup for PCs With the Cloud you can offer: • Monthly retainer to manage client desktops • Adding Email & Backup increases value • Add depth to your product offering • Your own the billing relationship • Increase margin • Add value and strengthen existing relationships • Reduce customer churn

  33. Managed Services, Applications & Servers - MSP Targets: • SMB needing servers w/o the capital expense • Line of business application users • Customers with aging infrastructure • Businesses with changing needs Customer benefits: • Cost effective server infrastructure • Anytime, anywhere access to applications & data • Predictable costs • Scalable • Eliminate number of vendors Cloud products to augment with: • Business Class Email • Online Backup for PCs With the Cloud you can offer: • Monthly retainer for system administration – firewall, VPN, backup • Software installation & management • Monitor and respond to alerts • Your own the billing relationship • High margin services • Add value and strengthen existing relationships • Reduce customer churn

  34. Near term opportunities

  35. Taking a pragmatic approach…time to market • One company can’t do everything in the Cloud • At the end of the day it is all about the customer & the applications • Pick a product that’s incremental to your business and get started hybrid build partner • Cloud applications are quickly evolving • Hybrid deployments (on premise & cloud, multi-provider) are likely • Choose a cloud provider thoughtfully

  36. Intranet • Backup • Email • BI • 25% opportunity • 30% opportunity • 7% opportunity • 10% opportunity • 20% opportunity • 30% opportunity • 10% opportunity • 12% opportunity • 15% opportunity • 16% cloud • 3% cloud • 30% cloud • 8% cloud • 30% cloud • 16% cloud • 15% cloud • 7% cloud • 17% cloud • 20% use • 82% use • 97% use • 94% use • 97% use • 30% use • 40% use • 28% use • 49% use Near term opportunity – Small business Cloud penetration End user Apps Systems Infrastructure Software • Remote access • DB System • Storage • WebConference • Content Management • Collaboration • 23% opportunity • 14% opportunity • 6% opportunity • 11% cloud • 10% cloud • 5% cloud • 85% use • 45% use • 15% use App Design/Dev Business Apps • App Dev Tools • Marketing Microsoft Hosting Summit, April 2012

  37. Pick your product, pick your deployment plan

  38. If you decide to build yourself • Select your new product to bring in house • Hire experts in cloud, multi-tenant infrastructure, software, network, hardware and security • Build or augment your existing facility with a focus on redundancy, high availability and security • Invest in the hardware & software to build your platform on • Create your service delivery plan and processes • Plan for ongoing maintenance and updates • Don’t forget to get the word out through marketing materials • Keep an eye on the market to determine the next best product to bring in house

  39. Choosing the right Cloud Provider Partner • License fees • Do you have account control? • Passed security audits like – SAS 70 Type II/SAE 16 or similar • Will they support you with dedicated service & support teams? • Are they easy to do business with? What are their terms like? • Do they have a breadth of products & services you can adopt • Do they offer go to market & sales support or will you have to do it yourself • Quality, redundant and highly available infrastructure • Knowledgeable support staff • Service Level Agreement (SLA)

  40. Choosing a hybrid approach • Understand what the gaps are that you want a partner to fill • Find a partner who’s strengths compensate in the areas you need help • Make sure the partner is flexible & willing to work with your unique needs in mind • Make sure you can change partners if you need to • Determine how you will integrate on premise resources with cloud based offerings

  41. Go beyond the technology – Choosing a Cloud Provider Leadership • Is your voice heard? • Solutions for common business problems Support • Implementation & maintenance • Technical support • Sales & marketing • Training • Common business applications • Productivity, security, communications • Infrastructure Breadth of products • Physical • Employees • Adopt best practices & standards around information security Security

  42. “The way to get started is to quit talking and begin doing.” - Walt Disney

  43. Contact THANK YOU! Susan DeFlorio Susan.DeFlorio@FiberCloud.com

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