Adapting to the Disruptive Technologies Facing the Channel.

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Presentation transcript:

Adapting to the Disruptive Technologies Facing the Channel

Not your Fathers Root Beer

Digitization Means Business Models Collapse or Evolve The Digization of Everything Converting the Analog world into the Digital World Now virtually every aspect of life is captured and stored in some digital form and we move closer to a networked interconnection of everyday objects and a real-time global exchange of information between multiple devices

The Digization of Everything The Buzz Word’s

Adjusting to the Trends Changing a Product – Technology In 1990 a TB of Storage Cost $11,200, Today a TB of Storage Cost $25.00

Changing an Industry – Social User Habits Adjusting to the Trends “This system, what’s most interesting about it is, you’re interacting with peers, you’re exchanging information with a person down the street.”—Shawn Fanning, Napster co-founder Digital Music over took actual Albums in say the first decline in digital purchases

The Trends Dominate the Market NYC Medallion Pricing Drops $500K in one year Taxi Service drops 65% in San Francisco in 2014 Became the #1 form of Corporate Vehicle Expense 47% in 2014 up from 12% a year earlier

Stop the Cloud Confusion

Collision Course for the Market Master AgentsIT Distributors Typical ChannelTelecom Agents, MSPVAR’s / MSP’s Product KnowledgeNetworking, ServicesHardware & Software Payment ModelResidualSingle Payment Challenges Cloud Very limited Knowledge today and the Sales force is unfamiliar with how to sell these new services Taking away from their hardware sales resulting in smaller revenues and profits Cash Flow Not an issue as they are not out f pocket and receive their commission once installed With net 30 terms and then delivery of equipment they are around days out in cash flow Networking The need for a single provider to manage the customer is vanishing as networking capabilities are moving to the cloud making it harder to position a CLEC Very limited Knowledge today and the Sales force is unfamiliar with how to sell these new services

Cloud Broker Connect various legacy networks to locations – Last Mile Manage private connections – WAN/MPLS as- a Service Manage Cloud Strategy – Public / Private / Hybrid Integrate the specialty cloud / applications – SaaS / PaaS Manage the VDI Manage the Hosted Voice platform Integrate it all together Complete Business in a Box Solution No Longer do Carriers need NNI’s – API’s replace then as its all software Its estimated that 50% of Channel both Master Agents and Distribution will be either New or Converted legacy partners that are now Cloud Brokers Cloud Brokers will dominate the market in 3 years this is $180 Billion Business 70% of all IT decisions will be in Cloud Technologies by 2019

Why Cloud Stop the Cloud – Understand Evolution of Technology Millennial impact

It’s the Gold Rush all over…. Or is it??? Cloud Sales are made off Trust Not just a CIO / IT Directors Decisions are made by CEO/Presidents/CFO Today there are over 250k cloud providers 75% will fail over the Next 3 years – Gartner reports Understand the evolution early and choose the right partner Real Life Example: Cloud Company ‘C” Year 1Year 3 Year 5 Year 6 Investment $4M$500K$1M$1.5M OppEx$3.5M0$4M$4.75M$5.5M CAC$300K$750K$1M$1.25M Sales $1M$3M$9M$12M Cash Flow -$6.8M-$7.6M-$5.35$1.6M