1. SLEDing through the Clouds
Jason Bystrak
Renee Bradford

2. Agenda Cloud Business Model – The New Channel
Ingram Micro Strategy and Resources
The State of: State and Local Government and Education
Ingram Micro Cloud Solutions Supporting SLED Business Drivers
Your Next Steps

3. Cloud Business Model SaaS SMB PaaS IaaS BPaaS Cloud Computing
Vendors
Brokers
End User
Cloud Computing
Cloud Service Brokers
SaaS
SMB
Aggregation
Consultants
PaaS
Customization
IaaS
IaaS
Integration
BPaaS
BPaaS
There is a new cloud business model emerging
The vendors or solution providers are offering cloud solutions such as
Software as a Service
Platform as a Service
Infrastructure as a Service
Business Process as a Service, which is basically what was previously called BPO or Business Process Outsourcing offered through the cloud, such as Payroll and Benefit management services
Initially, a lot of the cloud transactions went direct. Let’s face it, it’s very easy for a SMB to go online and sign up for 5 seats and be up and running in no time. There is something empowering for the SMB in doing it themselves. And for the solution providers, who dream of millions of customers logging onto their portal and signing up, this is the model they envisaged.
In fact, Gartner estimated that 98% of the cloud spend went direct in 2010
And that works well as the SMB buys their 1st and 2nd cloud solutions, but what happens right around the time that the SMB buys its 3rd cloud solution? They start to feel the overhead associated with evaluating the different solutions, contracting with all the vendors, and integrating these cloud solutions into their end to end IT environment.
That’s when the broker roles come into play, and Gartner has documented these first 3 key broker roles:
Consulting: this involves understanding your end user’s business, their requirements, and helping them find the best solution to meet their needs
Customization: this involves customizing the code to meet the specific requirements of your end customer
Integration: this involves integrating the cloud solution into the end user’s IT environment, into a seamless end-to-end IT solution
These 3 broker roles represent the roles of the resellers in cloud computing. You have a role to play in cloud computing and you need to decide which of these 3 boxes you want to play in, so you can develop the skillset and expertise you need for each of these roles.
There is one more broker role and that’s the one of the Aggregator. That’s the role that Ingram Micro helped formulate more than 5 years ago, when Ingram started reselling cloud computing solutions.
So while Gartner said that 98% of the cloud spend in 2012 went direct, and only 2% went through a broker, Gartner is predicting that in 2014, just 2 years from now, 20% of the cloud spend will go through brokers … so if you remember when we covered the cloud spend in SMB in North America a few minutes ago, and said that in 2 years, that market will be $16B, then $3B of that $16B will go through brokers, which is good news for you and us at Ingram
Source: Gartner The role of CSB in the Cloud Services Value Chain

4. The Leading Cloud Aggregator For The Channel
Establish a cloud community
training, enablement, best practices, sales support
Offer a comprehensive portfolio of cloud services
solutions for every business need – over 100!
Provide cloud business services
vendor due diligence & contracting , procurement,
provisioning, service management, invoicing
Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission.

5. Are You a Broker? Or Provider?
The Broker
The Solution Provider
Ingram Micro supports both models
Now you heard me introduce the concept of cloud service broker and cloud solution provider last year, but it’s worth spending some time on it again. First the definition:
A cloud broker is someone who is not interested in delivering the cloud solutions to their end customers. They want to partner with the right solution provider and resell their solution. Their value is along the line of the Cloud Business Model we discussed a bit earlier, in the role of consultant, where they can help their end customer select the right solution, in the role of customization, where they can customize the solution to fit the exact needs of their end customer, or in the role of the integrator, where they integrate the cloud solution within their end customer’s IT environment, ensuring an end-to-end business solution.
A cloud solution provider is someone who is interested in delivering the cloud solution to their end customers. They typically have a data center where they have been doing some dedicated hosting for their customers, and they now want to evolve this environment to offer cloud solutions to their end customers.
Most cloud solution provider are actually hybrids. They will actually deliver some cloud solutions, but will also broker some other cloud solutions and leverage the Ingram Micro cloud portfolio as an extension of their own portfolio.
Now why is this distinction important? Because as Ingram builds its cloud portfolio, we look to meet the needs of both resellers:
For cloud broker, we find the best cloud services, delivered by the most innovative services provider
For cloud solution provider, we find the best cloud enablement tools to help you build your delivery environment.
So let me give an example with coffee to illustrate the concept:
If I am a solution provider, I am interested in buying the coffee beans, the coffee grinder and the espresso machine, and I want to partner with an aggregator that can provide me all these enablement tools
If I am a broker, I am interested in buying a latte from Starbucks
Ingram Micro offers the most comprehensive portfolio of cloud solutions because we cater to the different roles our resellers will play in the cloud.

6. Network and Communications Business Applications
Service Desk
and Device Management
Network and Communications
Security
Business Applications
Data Center
Cloud Services Broker
Cloud Services Provider
Managed Print Services
Ingram Micro supports both business models: CSB and CSP. We have a robust line card offering solutions to meet every business need.
Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission.

7. The State of: State & Local Government and Education

8. State & Local Government: Technology Initiatives
Shared Services
Cyber Security
BYOD
Budget and Cost Control
Portal/E-government
Healthcare Systems
Data Center Consolidation/Cloud
Virtualization; Server, Desktop/Client, Storage, Applications
Broadband and Connectivity
Disaster Recovery/Continuity of Operations
Data from Digital Education top 4 school districts; NYC Dept of Education, LA Unified Schools, Chicago Public Schools, Miami-Dade County Schools in FL

9. 2013 Center for Digital Government
2013 Estimated State and Local Government IT Spend
$93.1 Billion (+1.7%)*
Vertical
2013 Estimated IT Spend
Health and Human Services
$22.9 Billion
Transportation
$9.5 Billion
Finance and Administration
$8 Billion
Criminal Justice/Public Safety
$7 Billion
Thank you to Digital Government for providing this data.
Source: Center for Digital Education, White House, FCC, Xplana
* Includes Education

10. Education: Technology Initiatives
Secure remote access of data from computing devices by school staff, students and parents.
Ubiquitous Access: Anytime, Anywhere from Any device
Networking and Telecom
Software as a Service or “rented software” tools for users
Disaster Recovery and Business Continuity
Virtual Learning
Modern Network Environment
Wireless Access
Convergence of Communications, Safety, and Infrastructure
Video Capture
Data from Digital Education for Higher Education and K12, as well as the top 4 school districts; NYC Dept of Education, LA Unified Schools, Chicago Public Schools, Miami-Dade County Schools in FL

11. 2013 Center for Digital Education Public Education IT Spend
$20 Billion
K-12 Education
Higher Education
Technology Spend
(2013)
$9.7 B
(+2%)
$10.3 B
(Flat)
Textbook Spend
(2012)
$7 B
$7.8 B
Implication: There could be a lot more money flowing into the market to purchase ed tech related equipment and materials. National annual spend of printed textbooks is estimated to be over $7 billion in K12. As more content moves digital and less is spent on printed content, more funding will flow to educational technology and digital curriculum resources. Just image if 10% of that was spent on technology. That would be $700 million. The latest round of Race to the Top (Race to the Top Districts) is only $400 million.
eLearning (2012) K12 is $2.9B and Higher Ed is $24.4B
K12 Education
Textbook Spend ($7 Billion)
This number is from the White House & FCC
eLearning Spend ($2.9 Billion)
This is from the White House’s report on “Unleashing the Potential of Educational Technology”
Higher Education
Textbook Spend ($7.8 Billion)
This is from the Xplana report, “Digital Textbooks Reaching The Tipping Point In U.S.” I think you are trying to reference just spend on printed content with this number which they estimate to be $7.8B. They estimate that $1B more is spent on electronic eLearning programs that either accompany or replace the printed textbook. These numbers represent student spend whereas the White House numbers represent all eLearning, including institutional
eLearning Spend ($24.4 Billion)
Source: Center for Digital Education, White House, FCC, Xplana

12. SLED Business Drivers
Improve infrastructure and lower cost – budget cuts the new normal, use technology to fill the gap
Constituents demand for services and information online
Strong need for Communication and Collaboration tools
Support for mobile devices: BYOD
Data backup and archiving
Security for data and information
Demand for Classroom Technology & Connectivity
On line teaching, learning, and assessment
Digital Classroom
Budget cuts are the new normal and technology will be used to fill the gaps.
By 2014 all test will be online
Education looking to move text book spend to IT spend

13. Ingram Micro Cloud Solutions Supporting SLED Business Drivers

14. Improve Infrastructure and Lower Cost
Solution: Virtualization and Infrastructure (IaaS)
Server and storage virtualization / migration / consolidation in the cloud
Mobility / flexibility
Scalable, usage on demand
Utility model; pay for use (opex vs. capex)
Multi-tenant public / private infrastructure
Managed environment
Ingram Micro
Services Network

15. Improve Infrastructure and Lower Cost
Solution: Remote Infrastructure Monitoring
Remove IT staff and management costs
Proactive maintenance
Enhanced SLA’s (24X7)
Increase productivity and efficiency
Comprehensive suite of remote IT Infrastructure services
Secure ISO certified NOC facilities
Session recordings for auditability

16. Need to provide access to constituent services and information services online
Solution: Hosted Applications
Preconfigured solutions - Microsoft Exchange, SharePoint
Custom application development on PaaS (Force.com, Microsoft Azure)
Leverage IaaS to host proprietary applications
Software customization and integration
Scalable infrastructure - usage on demand (PAYG)
Managed or unmanaged infrastructure
Ingram Micro
Services Network

17. Support mobile devices: BYOD
Solution: Mobile device management and mobile security
Protects against anytime anywhere threats
Enforces IT group policies
No extra software installed on mobile devices
Comprehensive asset management
Remote configuration of devices
Remote lock and wipe devices
Mobile remote desktop management in the palm of your hand

18. Data backup and archiving
Solution: Cloud backup
Cloud model is less expensive than duplicating on premise solution
Business class online backup and protection
Scalable across multiple environments
Addresses data compliance regulations
Improves business continuity
Provides high availability
Advanced backup and restore capabilities
Key

19. Security for data and information
Solution: SaaS security
No need for patch management – always latest version since it is hosted by the vendor/provider
Flexible pay-as-you-go model (opex vs. capex)
Manage employee productivity
Manage and secure your end point devices
Web and security
Real-time monitoring and reporting
Worry-free business security standards

20. SLED Case Studies

21. Trend Micro Case Study: Securing the Technology that Advances K12 Education
CUSTOMER NAME:
Walled Lake Consolidated School District
Location: Walled Lake, Michigan
Web Site:
Number of Employees: 2,000
CHALLENGE:
Give students the benefits of technology without exposing them to Internet threats
Avoid learning disruptions that result from infections
With reduced budgets and staff, manage security solutions and maximize the value they deliver to the students and staff
Take advantage of cloud computing without compromising security

22. Trend Micro Case Study: Securing the Technology that Advances K12 Education
SOLUTION:
Switch to Trend Micro™ Enterprise Security for Endpoints and Mail Servers
Enable Trend Micro Smart Protection Network reputation technologies
BUSINESS RESULTS:
Significantly reduced infection rates
Better endpoint system performance
IT staff time savings, with fewer systems requiring cleaning
More bandwidth-efficient update process, and off-network updates for mobile users
Increased confidence to let students use the web and public cloud resources
“ Trend Micro with Smart Protection Network is exactly what is needed for the web world that we have to live in… It gives us confidence to move forward with web and cloud-based innovations for the classroom.”
— Mark A. Williams, Network Manager, Walled Lake Consolidated School District

23. dinCloud Case Study: Maryville University
Customer Stats:
Located in ST. Louis, Missouri, Higher education institution, Almost 3,900 students
Service Offered:
dinBackup (Backup in the Cloud)
Highlights:
The Client was seeking an infrastructure host to maintain a secondary backup
of their data from their current NetApp storage infrastructure to a hosted
NetApp infrastructure
Evaluated multiple providers
Successfully completed a Proof of Concept end of July 2012
Been in production for a few months
Already seeing uptick in monthly invoice (adding services with dinCloud)