1. Take your Business Model to the Cloud
BL04
IDC Cloud Transition Series:
Take your Business Model to the Cloud
Darren Bibby Vice-President, Software Channels and Alliances Research

2. When Things Change…

3. When Things Change… Evolve!

5. Today’s Agenda

6. Today’s Agenda Cloud Transition Series
Cloud Definitions and Market Opportunities
Sales, Marketing, and Business Strategy
IT Consulting and Integration Services
Business Consulting Services
Hosting, Outsourced and Managed Services
Training and Support Services
Resale and Referral
Software Product Development
Partner Creativity
Today’s Agenda

7. It’s Always CLOUD CLOUD CLOUD!
Cloud Transition Series
Cloud Definitions and Market Opportunities
Sales, Marketing, and Business Strategy
IT Consulting and Integration Services
Business Consulting Services
Hosting, Outsourced and Managed Services
Training and Support Services
Resale and Referral
Software Product Development
Partner Creativity
It’s Always CLOUD CLOUD CLOUD!

8. IDC Cloud Transition Series
Cloud Definitions and Market Opportunities
Sales, Marketing, and Business Strategy
IT Consulting and Integration Services
Business Consulting Services
Hosting, Outsourced and Managed Services
Training and Support Services
Resale and Referral
Software Product Development
Partner Creativity
IDC Cloud Transition Series
Eight IDC Reports written for Partners
Sponsored by Microsoft
“What changes when I move to a Cloud business model?”

9. IDC Cloud Transition Series
Cloud Definitions and Market Opportunities
Sales, Marketing, and Business Strategy
IT Consulting and Integration Services
Business Consulting Services
Hosting, Outsourced and Managed Services
Training and Support Services
Resale and Referral
Software Product Development
Partner Creativity
IDC Cloud Transition Series

10. Cloud Definitions and Market Opportunities
Cloud Transition Series
Cloud Definitions and Market Opportunities
Sales, Marketing, and Business Strategy
IT Consulting and Integration Services
Business Consulting Services
Hosting, Outsourced and Managed Services
Training and Support Services
Resale and Referral
Software Product Development
Partner Creativity
Cloud Definitions and Market Opportunities
Primary Market IDC IT Product Taxonomy
Applications
Application Development & Deployment
System Infrastructure Software
NIST “taxonomy”
Application as a Service
(NIST calls this “SaaS”)
Platform as a Service
Infrastructure as a Service
Secondary Market IDC IT Product Taxonomy
Collaborative Applications
Content Applications
Enterprise Resource Management Applications
Supply Chain Management Applications
Operations and Manufacturing Applications
Engineering Applications
Customer Relationship Management Applications
Application Development Software
Application Server Middleware
Data Access, Analysis, and Delivery
Structured Data Management
Integration & Process Automation Middleware
Other Application Dev and Deployment
Quality & Life-Cycle Tools
Enterprise Portals
System and Network Management
Security Applications
Systems Software
Servers
Storage
Networks
Clients
Cloud Services
Software as a Service (SaaS)

11. Cloud Definitions and Market Opportunities
Cloud Transition Series
Cloud Definitions and Market Opportunities
Sales, Marketing, and Business Strategy
IT Consulting and Integration Services
Business Consulting Services
Hosting, Outsourced and Managed Services
Training and Support Services
Resale and Referral
Software Product Development
Partner Creativity
Cloud Definitions and Market Opportunities
D.I.Y.
Private
Designed for, and access restricted to, a single enterprise (or extended enterprise)
An internal shared resource, not a commercial offering
IT Org is the “vendor” of the shared/std service to its users
Resource Isolation
Single enterprise/ extended enterprise (dedicated)
Hybrid
Enterprise’s cloud services portfolio includes both private and public cloud services
Some specific services are delivered in a combination of public and private models (e.g., private cloud “bursting to” a public cloud service)
Virtual and physical (non-cloud) resources and applications
Public
Designed for a market, not a single enterprise
Open to a largely unrestricted universe of potential users
Customers buy at specific level of abstraction (server, application, platform)
Single-vendor or multi-vendor
Multiple unrelated enterprises (shared)

12. Cloud Definitions and Market Opportunities
Cloud Transition Series
Cloud Definitions and Market Opportunities
Sales, Marketing, and Business Strategy
IT Consulting and Integration Services
Business Consulting Services
Hosting, Outsourced and Managed Services
Training and Support Services
Resale and Referral
Software Product Development
Partner Creativity
Cloud Definitions and Market Opportunities
Cloud Definitions and Market Opportunities

13. Cloud Definitions and Market Opportunities
Cloud Transition Series
Cloud Definitions and Market Opportunities
Sales, Marketing, and Business Strategy
IT Consulting and Integration Services
Business Consulting Services
Hosting, Outsourced and Managed Services
Training and Support Services
Resale and Referral
Software Product Development
Partner Creativity
Cloud Definitions and Market Opportunities
Cloud Definitions and Market Opportunities
$55B in Revenue by 2014
Growth! 26% CAGR,
License Revenue Down $7B, For Good
Net New Products Will be SaaS (IDC estimates 79%)

14. Cloud Definitions and Market Opportunities
Cloud Transition Series
Cloud Definitions and Market Opportunities
Sales, Marketing, and Business Strategy
IT Consulting and Integration Services
Business Consulting Services
Hosting, Outsourced and Managed Services
Training and Support Services
Resale and Referral
Software Product Development
Partner Creativity
Cloud Definitions and Market Opportunities
Cloud Definitions and Market Opportunities
“I think that if we don't partner with [our vendor] and do this, then somebody else is going to take our customers.”
“The Cloud is the future.”
“We would probably make more money if we could keep everybody on on-premise [versions]. But that's not going to happen.”

15. Sales, Marketing and Business Strategy
Cloud Transition Series
Cloud Definitions and Market Opportunities
Sales, Marketing, and Business Strategy
IT Consulting and Integration Services
Business Consulting Services
Hosting, Outsourced and Managed Services
Training and Support Services
Resale and Referral
Software Product Development
Partner Creativity
Sales, Marketing and Business Strategy
Changing Partner Economics
Shifting Sales Model
Account Control
“Will customers be receptive of direct billing? Turns out it was a non issue.”

16. Sales, Marketing and Business Strategy
Cloud Transition Series
Cloud Definitions and Market Opportunities
Sales, Marketing, and Business Strategy
IT Consulting and Integration Services
Business Consulting Services
Hosting, Outsourced and Managed Services
Training and Support Services
Resale and Referral
Software Product Development
Partner Creativity
Sales, Marketing and Business Strategy
Changing Partner Economics
Recurring and Predictable Revenue Flow
“I mean if you do well I think you can start doing pretty well around year 2. Year 1 you are just investing.”

17. Sales, Marketing and Business Strategy
Cloud Transition Series
Cloud Definitions and Market Opportunities
Sales, Marketing, and Business Strategy
IT Consulting and Integration Services
Business Consulting Services
Hosting, Outsourced and Managed Services
Training and Support Services
Resale and Referral
Software Product Development
Partner Creativity
Sales, Marketing and Business Strategy
Changing Partner Economics
Salesperson Compensation
Partner 1: “If I'm a sales guy, and I could either sell on the traditional side or I could go on the recurring revenue side, I can't see really moving to that cloud side because the traditional side is going to make a lot more money.”

18. Sales, Marketing and Business Strategy
Cloud Transition Series
Cloud Definitions and Market Opportunities
Sales, Marketing, and Business Strategy
IT Consulting and Integration Services
Business Consulting Services
Hosting, Outsourced and Managed Services
Training and Support Services
Resale and Referral
Software Product Development
Partner Creativity
Sales, Marketing and Business Strategy
Changing Partner Economics
Salesperson Compensation
Partner 2: “You're right. And that's why I'm hiring people that are strictly going to be Cloud. And the people we're hiring come out of telco.”

19. Sales, Marketing and Business Strategy
Cloud Transition Series
Cloud Definitions and Market Opportunities
Sales, Marketing, and Business Strategy
IT Consulting and Integration Services
Business Consulting Services
Hosting, Outsourced and Managed Services
Training and Support Services
Resale and Referral
Software Product Development
Partner Creativity
Sales, Marketing and Business Strategy
Cloud Sales Strategy
Foot in the door
“So I get a new BPOS [now Office 365] deal. They don't know who I am. We go in, we're selling them phone systems, we're selling them firewalls, new systems, whatever. BPOS is an awesome door opener.”

20. Sales, Marketing and Business Strategy
Cloud Transition Series
Cloud Definitions and Market Opportunities
Sales, Marketing, and Business Strategy
IT Consulting and Integration Services
Business Consulting Services
Hosting, Outsourced and Managed Services
Training and Support Services
Resale and Referral
Software Product Development
Partner Creativity
Sales, Marketing and Business Strategy
Cloud Sales Strategy
Reduce the cost of sale

21. Sales, Marketing and Business Strategy
Cloud Transition Series
Cloud Definitions and Market Opportunities
Sales, Marketing, and Business Strategy
IT Consulting and Integration Services
Business Consulting Services
Hosting, Outsourced and Managed Services
Training and Support Services
Resale and Referral
Software Product Development
Partner Creativity
Sales, Marketing and Business Strategy
Cloud Sales Strategy
Reduce the cost of sale
“We probably have only met 4 or 5 of our 45 SMB customers. We use Live Meeting a lot. We are able to demo, sell and deliver all on the phone.”

22. Sales, Marketing and Business Strategy
Cloud Transition Series
Cloud Definitions and Market Opportunities
Sales, Marketing, and Business Strategy
IT Consulting and Integration Services
Business Consulting Services
Hosting, Outsourced and Managed Services
Training and Support Services
Resale and Referral
Software Product Development
Partner Creativity
Sales, Marketing and Business Strategy
Cloud Sales Strategy
Continuous customer satisfaction
Sales roles: Hunters & Famers

23. Sales, Marketing and Business Strategy
Cloud Transition Series
Cloud Definitions and Market Opportunities
Sales, Marketing, and Business Strategy
IT Consulting and Integration Services
Business Consulting Services
Hosting, Outsourced and Managed Services
Training and Support Services
Resale and Referral
Software Product Development
Partner Creativity
Sales, Marketing and Business Strategy
Cloud Marketing Strategy
PR / Thought Leadership
Current Client Marketing
Cloud / Social Media Marketing
Creativity Always Stands Out

24. IT Consulting and Integration Services
Cloud Transition Series
Cloud Definitions and Market Opportunities
Sales, Marketing, and Business Strategy
IT Consulting and Integration Services
Business Consulting Services
Hosting, Outsourced and Managed Services
Training and Support Services
Resale and Referral
Software Product Development
Partner Creativity
IT Consulting and Integration Services
Selling to Line of Business
Brokering Between Business and IT
“IT can now – instead of being the department of "No!" – IT can support the business, it can evolve with the business, it can support changing requirements, which was something that was always really hard in the old model.”

25. IT Consulting and Integration Services
Cloud Transition Series
Cloud Definitions and Market Opportunities
Sales, Marketing, and Business Strategy
IT Consulting and Integration Services
Business Consulting Services
Hosting, Outsourced and Managed Services
Training and Support Services
Resale and Referral
Software Product Development
Partner Creativity
IT Consulting and Integration Services
Iterative Consulting Model

26. IT Consulting and Integration Services
Cloud Transition Series
Cloud Definitions and Market Opportunities
Sales, Marketing, and Business Strategy
IT Consulting and Integration Services
Business Consulting Services
Hosting, Outsourced and Managed Services
Training and Support Services
Resale and Referral
Software Product Development
Partner Creativity
IT Consulting and Integration Services
Iterative Consulting Model

27. IT Consulting and Integration Services
Cloud Transition Series
Cloud Definitions and Market Opportunities
Sales, Marketing, and Business Strategy
IT Consulting and Integration Services
Business Consulting Services
Hosting, Outsourced and Managed Services
Training and Support Services
Resale and Referral
Software Product Development
Partner Creativity
IT Consulting and Integration Services
Iterative Consulting Model

28. IT Consulting and Integration Services
Cloud Transition Series
Cloud Definitions and Market Opportunities
Sales, Marketing, and Business Strategy
IT Consulting and Integration Services
Business Consulting Services
Hosting, Outsourced and Managed Services
Training and Support Services
Resale and Referral
Software Product Development
Partner Creativity
IT Consulting and Integration Services
Smaller Delivery Teams With Multiple Hats
On-Premise, Larger Project Teams
Cloud Teams
Architect
Project Manager
Programmer
Renaissance Man
Functional Specialist
Technical Specialist
DBA

29. IT Consulting and Integration Services
Cloud Transition Series
Cloud Definitions and Market Opportunities
Sales, Marketing, and Business Strategy
IT Consulting and Integration Services
Business Consulting Services
Hosting, Outsourced and Managed Services
Training and Support Services
Resale and Referral
Software Product Development
Partner Creativity
IT Consulting and Integration Services
All Partner Types Behaving Like Software Vendors
“One of the things that's unique about SaaS platforms is that they don't actually change, right? So if I build a piece of IP at one point in time, it's not going to stop working in the future. Unlike with on-premise…”

30. Business Consulting Services
Cloud Transition Series
Cloud Definitions and Market Opportunities
Sales, Marketing, and Business Strategy
IT Consulting and Integration Services
Business Consulting Services
Hosting, Outsourced and Managed Services
Training and Support Services
Resale and Referral
Software Product Development
Partner Creativity
Business Consulting Services
An Opportunity to Replace Revenue

31. Business Consulting Services
Cloud Transition Series
Cloud Definitions and Market Opportunities
Sales, Marketing, and Business Strategy
IT Consulting and Integration Services
Business Consulting Services
Hosting, Outsourced and Managed Services
Training and Support Services
Resale and Referral
Software Product Development
Partner Creativity
Business Consulting Services
Building and Selling Domain Expertise
“One thing that makes us unique is that everybody in the firm are marketers. Our background is marketing, so we’ve walked in our clients’ shoes and we know the responsibility of lead generation and demand generation is. Unlike a traditional SI…”

32. Business Consulting Services
Cloud Transition Series
Cloud Definitions and Market Opportunities
Sales, Marketing, and Business Strategy
IT Consulting and Integration Services
Business Consulting Services
Hosting, Outsourced and Managed Services
Training and Support Services
Resale and Referral
Software Product Development
Partner Creativity
Business Consulting Services
Leveraging Knowledge in the Community

33. Hosting, Outsourced or Managed Services
Cloud Transition Series
Cloud Definitions and Market Opportunities
Sales, Marketing, and Business Strategy
IT Consulting and Integration Services
Business Consulting Services
Hosting, Outsourced and Managed Services
Training and Support Services
Resale and Referral
Software Product Development
Partner Creativity
Hosting, Outsourced or Managed Services
Move Away from "Vanilla" Services
“You have to have a differentiator. There are dozens, if not hundreds, of Exchange hosting providers out there, of various sizes.”

34. Hosting, Outsourced or Managed Services
Cloud Transition Series
Cloud Definitions and Market Opportunities
Sales, Marketing, and Business Strategy
IT Consulting and Integration Services
Business Consulting Services
Hosting, Outsourced and Managed Services
Training and Support Services
Resale and Referral
Software Product Development
Partner Creativity
Hosting, Outsourced or Managed Services
Move Away from "Vanilla" Services
Alternative Approaches:
Become a Value-Added Reseller
Act Like A Software Publisher
Become An Aggregator

35. Training and Support Services
Cloud Transition Series
Cloud Definitions and Market Opportunities
Sales, Marketing, and Business Strategy
IT Consulting and Integration Services
Business Consulting Services
Hosting, Outsourced and Managed Services
Training and Support Services
Resale and Referral
Software Product Development
Partner Creativity
Training and Support Services
Augmenting Revenue

36. Training and Support Services
Cloud Transition Series
Cloud Definitions and Market Opportunities
Sales, Marketing, and Business Strategy
IT Consulting and Integration Services
Business Consulting Services
Hosting, Outsourced and Managed Services
Training and Support Services
Resale and Referral
Software Product Development
Partner Creativity
Training and Support Services
Focus on Training and Adoption Immediately
“Where it has fallen short is from the adoption of the technology… They spend a lot of time in the nuts and bolts, getting the environment hardened and getting it working. But there's always less focus into the training and adoption and actually leveraging the tool…”

37. Training and Support Services
Cloud Transition Series
Cloud Definitions and Market Opportunities
Sales, Marketing, and Business Strategy
IT Consulting and Integration Services
Business Consulting Services
Hosting, Outsourced and Managed Services
Training and Support Services
Resale and Referral
Software Product Development
Partner Creativity
Training and Support Services
Becoming Your Client's IT Department
“Next to a "working-hours" contract, we also have a 24X7 offering. So we are open 24x7 for an ongoing support engagement. Customers use this to call us for a lot more services.”

38. Training and Support Services
Cloud Transition Series
Cloud Definitions and Market Opportunities
Sales, Marketing, and Business Strategy
IT Consulting and Integration Services
Business Consulting Services
Hosting, Outsourced and Managed Services
Training and Support Services
Resale and Referral
Software Product Development
Partner Creativity
Training and Support Services
Training and Support are Essential to Long Term Clients

39. Resale and Referral The Door Opener Cloud Transition Series
Cloud Definitions and Market Opportunities
Sales, Marketing, and Business Strategy
IT Consulting and Integration Services
Business Consulting Services
Hosting, Outsourced and Managed Services
Training and Support Services
Resale and Referral
Software Product Development
Partner Creativity
Resale and Referral
The Door Opener

40. Resale and Referral Bottom Line Versus Top Line Mentality
Cloud Transition Series
Cloud Definitions and Market Opportunities
Sales, Marketing, and Business Strategy
IT Consulting and Integration Services
Business Consulting Services
Hosting, Outsourced and Managed Services
Training and Support Services
Resale and Referral
Software Product Development
Partner Creativity
Resale and Referral
Bottom Line Versus Top Line Mentality
“You need to change the way you look at your business. Profitability is going to go up. I don’t have to invest in the same resources. I'm saving a significant amount of money. My top line number is going to go down. But I don't care. I'm going to get more money in cost savings.”

41. Resale and Referral Expanding Reach to SMB and Other Geographies
Cloud Transition Series
Cloud Definitions and Market Opportunities
Sales, Marketing, and Business Strategy
IT Consulting and Integration Services
Business Consulting Services
Hosting, Outsourced and Managed Services
Training and Support Services
Resale and Referral
Software Product Development
Partner Creativity
Resale and Referral
Expanding Reach to SMB and Other Geographies
“We did a BPOS migration down in Salinas. We did a remote migration for a company in Idaho. We've got several clients in Southern California. Customers that we never really would have touched. In terms of getting them into the Cloud, geography doesn't matter.”

42. Resale and Referral Maintaining Continuous Customer Satisfaction
Cloud Transition Series
Cloud Definitions and Market Opportunities
Sales, Marketing, and Business Strategy
IT Consulting and Integration Services
Business Consulting Services
Hosting, Outsourced and Managed Services
Training and Support Services
Resale and Referral
Software Product Development
Partner Creativity
Resale and Referral
Maintaining Continuous Customer Satisfaction
“Just by its very nature SaaS applications and Cloud applications create that tighter connection with all your customers. You would be amazed how much additional business that brings us. It starts new conversations.”

43. Software Product Development
Cloud Transition Series
Cloud Definitions and Market Opportunities
Sales, Marketing, and Business Strategy
IT Consulting and Integration Services
Business Consulting Services
Hosting, Outsourced and Managed Services
Training and Support Services
Resale and Referral
Software Product Development
Partner Creativity
Software Product Development
New Delivery Model
The Pricing Revolution
User-based Subscription
Usage-based Subscription
Freemium
Term subscriptions
Setup Fees
Bundled Services
Transaction pricing
Ad Funding

44. Software Product Development
Cloud Transition Series
Cloud Definitions and Market Opportunities
Sales, Marketing, and Business Strategy
IT Consulting and Integration Services
Business Consulting Services
Hosting, Outsourced and Managed Services
Training and Support Services
Resale and Referral
Software Product Development
Partner Creativity
Software Product Development
Rapid Revision Cycles
“We used to do feature updates every two to three months. Now we're doing every single month and iterating the product faster. So if they have problems or bugs fixes, they don't have to wait three, four months to get that.”

45. Software Product Development
Cloud Transition Series
Cloud Definitions and Market Opportunities
Sales, Marketing, and Business Strategy
IT Consulting and Integration Services
Business Consulting Services
Hosting, Outsourced and Managed Services
Training and Support Services
Resale and Referral
Software Product Development
Partner Creativity
Software Product Development
Data Means Greater Customer Intimacy
“The application that we're deploying is a BI application in SQL Azure. And it's all about the eleven years of data we've amassed and that we're now selling out to our clients. And that's all happening through Azure.”

46. Partner Creativity Cloud Transition Series
Cloud Definitions and Market Opportunities
Sales, Marketing, and Business Strategy
IT Consulting and Integration Services
Business Consulting Services
Hosting, Outsourced and Managed Services
Training and Support Services
Resale and Referral
Software Product Development
Partner Creativity
Partner Creativity

47. Thank You
Darren Bibby Vice-President, Software Channels and Alliances Research

48. Thank You
Darren Bibby Vice-President, Software Channels and Alliances Research

49. Thank You
Darren Bibby Vice-President, Software Channels and Alliances Research

51. 10/27/2017 7:09 AM
© 2009 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.