Crossing the Chasm to the Scale Stage

Only 1% of partners have reached the Scale stage, yet they see 40% more pipeline than all the others. Learn about moving to this final stage by implementing self-service options for customers and outsourcing your catalog to the Ingram Micro Cloud Marketplace resulting in longevity and success.
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1.Crossing the Chasm to the Scale Stage C r a i g W e i r | D i r. C l o u d P o r t f o l i o

2. Agenda Set the Customer Your Bridge to Next Stage Insight Business Success Steps

3.Perspective…

4.1983 Ultra-Marathon 7 day race from Sydney-Melbourne 875km or 21 Marathons long Cliff Young, 61 Potato & Sheep farmer

5. Window of Significant Change • The INDUSTRY is changing • The CUSTOMER needs are increasing • The core OFFERINGS are evolving • The new COMPETENCIES are maturing • The VALUE PROPOSITION OF THE CHANNEL needs to evolve • This transformation is forcing change How do you prosper in the wake of this change? Are you built for growth or lifestyle?

6.What’s your journey look like?

7.Customer Insight

8. Cloud is Difficult Because… Security What are Cost Overrides Customers Day to Day Management Saying? Post Mortem/Issue Resolution Finding the Right People/Partners to Solve their Issues

9. How Are They Buying? 82% POC, DEMO, 78% ONLINE 74% PEER REVIEW, 4 MONTH SALES TRIAL RESEARCH WORD OF MOUTH CYCLE

10.What Are They Buying? Cloud Consumption Consumption by Company Size* 3% 8% 1-10 28 8% 36% 11-50 54 Actual 10% 51-100 71 2x-5x 14% 101-250 90 21% 251-1000 124 Bus. Ops Dev Ops Marketing Finance Compute Sales Tools HR *Total does not include associate purchases, only company authorized/approved apps

11.Your Business

12.The Cloud Awesomeness Roadmap SCALE DEPTH BREADTH BUILD Self-service Hybrid catalog Outsourced catalog Digital marketing Integrated digital marketing Integrated digital marketing Manual provisioning Automated provisioning Automated provisioning Automated provisioning Reactive – Opportunistic Cross-selling Cross-selling Cross-selling 1-3 Cloud Offerings 4-10 Cloud Offerings 10+ Cloud Offerings + IaaS 10+ Cloud Offerings + IaaS 60% 30% 9% 1% 12

13. Channel Segmentation Average Return with Rebates Solution VAR MSP Cloud Service Provider 90/10 Mix 75/25 Mix 25/75 Mix 5/95 Mix 100/0 Mix Hardware Minimal No Refer Hardware Hardware Hardware Hardware Resell Resell Services Remote Services-Led Services Attach Support Services Delivery High Cost High Cost Low Cost Low Cost Heavy Resources Engineering Resources Model Partnering 0%-3% 3%-6% 15%-20% 15%-20% 15%-30% $ Build Breadth $$ Depth Scale $$$ Proprietary information of Ingram Micro Inc. – Do not distribute or duplicate without Ingram Micro’s express written permission.

14.VOLUME Scale Through Automation ROUTINE TASKS COMPLEX CRITICAL THINKING Complete Automation CREATIVE PROBLEM SOLVING Enable Tools NON ROUTINE TASK SOCIAL INTELLIGENCE Partial Automation INFLUENCE

15.VOLUME Scale Through Automation INFLUENCE

16.Bridge to Success

17.Investment, Expectations & Timelines

18. Cloud Firms have… • Less sales comp, less pre-sales engineering Efficiency & • Sales comp 10-15% of GP, vs 25-40% Proficiency • More balanced technical cost structure Matter • White label offers @ 15-20% without added services • Public cloud offers @ 5-18% without added services Cloud vs. Traditional Hybrid Partners • Can’t maintain legacy cost structures while investing in the future relevancy Some assets are really assets of the past and not the future! You need to fund future vs. cost savings from the past

19. Define ownership Build baseline of GAP analysis with requirements outcome & embrace the Build communication plan effort Validate addressable Ensure the market can deliver the outcome market 5 Key Steps Tighten up solution Align to services strategy and Partners Must offering talent Take Reshape sales Sales playbook, compensation, etc. approach Drive efficiency and stay committed

20. Hybrid Services Led <30% SERVICES >30% SERVICES (SP + MSP) (CLOUD + SERVICE) Blended GP >20% >30% Services GP >30% >35% Sales/Management <40% <20% Partner Comp. % Payroll Cloud comp portion much 1.7x 4.7x lower Type Analysis SGA Expense <70% <65% Exercise Best in Class <60% Net Operating 6-8% >10-15% Income Without rebates Enhanced Business Net Income + ↓Multiple Net Income + ↑Multiple Value EXAMPLE Partner Revenue Software 20% + Hardware 40% + Software 20% + Hardware 10% + Share of Wallet Annuity 10% + Prof. Services 30% Annuity 40% + Prof. Services 30%

21.Next Steps

22.Cloud Marketplace Categories + ISV

23.Consultation • Schedule time with our Cloud Sales team • Uncover easy ways to migrate to annuity offers • Get training on Cloud Marketplace • Review finance options

24.Thank You Craig Weir Dir. Cloud Portfolio Craig.weir@Ingrammicro.com @IamCraigWeir @Craig Weir