Duncan Robinson, Parallels Business Consulting 5 th November 2014 Building your cloud portfolio APS Connect

2 Introduction to BCS Who are we? Created 3 years ago in response to partner demand Strategy, Product management, GTM, Channel and expertise Focused on helping partners grow successful cloud businesses Part of new Customer Success organisation Advisory or dedicated delivery model Working with partners across the globe Define the strategy Deploy the solution Launch and grow a successful business

3 Agenda for today’s presentation 1 1 Share market observations and insights 2 2 Ideas for developing the cloud portfolio 3 3 Group discussion: Priority services for SMB’s

4 Service provider cloud adoption is evolving Hoster  telco/ IT Provider  distributors Hot topic is bundling - Portfolios evolving beyond standalone - Providers and ISV’s starting to bundle cloud and core services Marketplaces fall short on volume expectations Multi-channel strategies, based on segment, proving successful approach INSIGHTS Market observations Cloud market evolution

5 SMBs are adopting more cloud services 50% SMBs today use only one service provider SMBs are open to bundles that make billing easy Source: Parallels SMB Cloud Insights™ (Global), 2014 Market observations Latest customer insights

6 Building your cloud portfolio 2 common questions 1 1 How many services should I sell? 2 2 How do I develop my portfolio?

7 Parallels Recommendation: 5-9 services per category Source: Parallels SMB Cloud Insights™ (Global), 2014 Web HostingSupport/ Help Desk Phone ConferencingVirtual Desktop (VDI) Instant CollaborationHosted Payroll & HRWeb Conferencing Online Backup & Storage File SharingAccountingOnline CRM Building your cloud portfolio How many services should I sell?

8 SMBEnterprise Top 3 concerns: 1.Security 2.Cost 3.Performance and availability Building your cloud portfolio Security concerns the major driver for business

9 Building your cloud portfolio Developing a product portfolio for Communications and Collaboration AnchorValue AddTools & Utilities Web Conferencing Migration Security Voice Conferencing Endpoint Protection Archiving Chat & Presence File Sharing

10 AnchorValue-addTools & Utilities Web hostingWeb Site BuilderSecurityBackup SEM/Analytics/Ad WordsCDN Mobile Websites E-CommerceSocial Media Video Content Website Security Appointment Scheduling Campaign Marketing Building your cloud portfolio Developing a product portfolio for Web Business Building

11 Building your cloud portfolio Business Applications growing in importance Business applications are predicted to be the fastest growing category globally and especially in mature European markets The category is fragmented and often driven by local ISV’s rather than larger Global applications Opportunities may be driven by vertical segment – Parallels have some interesting data There may be a requirement to onboard a local ISV Recommendation: Identify 2-3 volume opportunities for Business Apps

12 Most marketplaces lack meaningful differentiation Integration and customization of multiple cloud services creates differentiation Vertical-specific solutions will differentiate by providing Comprehensive and relevant business solutions Specialized apps/services Vertical-specific marketplace Advice to SP’s/Resellers: Expand offerings to include integrated service bundles that are business-value-oriented Prediction: By 2015, 50% CSB providers will develop integrated vertical service bundles by company size Source: “Predicts 2014: Cloud Services Brokerage”, Gartner January 2014 Building your cloud portfolio Opportunity to create bundled services

13 Building your cloud portfolio GROUP DISCUSSION What are the next priority services for you (and why?)

14 How can Parallels help? 2 key services Maximise your return on investment in cloud services Provides actionable recommendations to grow your business including:  Portfolio development  Optimising Online experience  Building Channel footprint GTM Assessment Service GTM Assessment Service Target Audience Existing PA Partners APS Advisory Service Target Audience Existing PA Partners New PA Partners ISV community Reduce time to market and monetise new APS 2.0 packages Combination of Business and Technical consulting to define service and create new package Includes project tracking and certification Can be initiated by PA partner or ISV

15 Building your cloud portfolio 3 key takeaways 1 1 Expand your portfolio to meet growing SMB and sales channel requirements 2 2 Pick the right services based on current portfolio and channel capability Talk to Parallels about how we can help 3 3

Duncan Robinson, Parallels Business Consulting 5 th November 2014 Additional slides APS Connect

17 Building your cloud portfolio How do I develop my portfolio? Market assessment Target customers Categories Anchor services Roadmap Delivery model Detailed assessment of market size by customer, service category Competitive landscape mapping and market attractiveness matrix Decide on target customer for cloud services based on market assessment and current capability/service portfolio of resellers Agree on service categories to be addresses based on target customer /market Discuss number of services to be offered Discuss anchor services for each category to be addressed Discuss potential ISV partners for services Discuss phasing of launches and number of services for each release Agree services for first release and potential ISV’s Discuss delivery model for services and timing – Hosted v Syndicated