Post on 22-Nov-2014
description
transcript
Thanks to• Diamond Sponsors
• Gold Sponsors
Microsoft Dynamics Partner Academy
Transitioning to the CloudAn introduction
Introducing Partner Master Class
• Recognised worldwide as a top PDC
• All personnel have built partners from scratch
• Live and breath your business pains
• Wide range of experience in all areas
• Proven success in multiple countries across Europe
• Top class coaches
Guus Krabbenborg• Guus has been co-founder of DBS Business Solutions in 1994. When he left in 1999 DBS has grown to 120 employees
• Guus has been commercial director at Navision NL and started in 2000 his own company TerDege
• Since 2000 Guus has specialized in supporting Dynamics partners. He delivers trainings and workshops in many places around the world
• Guus also executes workshops for companies looking for new ERP or CRM solutions
• Finally Guus writes books, columns and a well-known newsletter for partners
Microsoft Dynamics Partner Acadamy
Partner Developer/Architect
Partner MarketingSpecialist
Partner Sales
Specialist
Partner Project
Manager
Partner Application Consultant Partner
PresalesSpecialist
Partner Technolog
yAcademy
Partner MarketingAcademy
Partner Sales
Academy
Partner Project
ManagementAcademy
Partner SolutionAcademy Partner
PresalesAcademy
Microsoft DynamicsPartner Academy
DEVELOPER
LEADERSHIPROLEMARKETINGROLE
SALESROLE
PRESALES ROLEPROJECTMANAGER
CONSULTANT
CPLS
PDC
Some reflections….
• You don’t have to be ill to become better…
• Life’s to short to make all possible mistakes yourself!
• It’s not about what you know, but what you do with what you know…..
Resellers OnlyHigh Low Average
Annual Income $17,525,615 $1,468,614 $6,299,106EBITDA % 20.5% -4.5% 5.8%Services/Software Ratio 15.0 0.6 2.2Software Gross Margin 47% 12% 31%Services Gross Margin 64% 14% 42%Other Operating Expenses % of Revenue 47% 17% 33%Days Sales Outstanding 123 0 41Days Payables Outstanding 117 0 41Average Annual Hours Billed, per billable resource 1,565 559 1,088Average Annual Cost, per billable resource $159,602 $56,185 $97,538Average Hourly Charge-out Rate, per billable resource $193 $110 $154Realized BMUR 2.7 1.1 1.7Total New Customer Adds (last 12 months) 62 4 18
Revenue/Employee $294,118 $110,839 $193,890
Average New Deal Size $366,804 $37,859 $105,578Revenue/Salesperson $5,394,172 $558,191 $1,427,604Marketing Expenses % of Revenue 8.3% 0.1% 1.6%Sales Costs % of Revenue 19.3% 4.5% 9.4%
Partner KPI’s, September 2010
Source: Salesworks Partner Data Base
Microsoft Dynamics Partner Academy
What is Cloud Computing and what do others think?
Why…
Cloud Computing
What…Applications delivered as services that are always available, scale as required, provisioned just-in-time, run on shared industry-standard hardware, and are billed on a pay as you consume basis
Accelerates speed to solution, lowers TCO, and allows for more budget to be allocated to innovation vs. maintenance
Defining Cloud Computing
On-PremisesBuy my own
hardware, and manage my own data
center
• Buy own machines, connectivity, software, etc.
• Upfront capital costs for the infrastructure
• Complete control and responsibility
HostedPay someone to host my application using
hardware that I specify
• Rent machines, connectivity, software
• Lower capital costs, but pay for fixed capacity, even if idle
• Less control, but fewer responsibilities
• Pay-as-you-go• Shared, multi-
tenant environment• Offers pool of
computing resources, abstracted from infrastructure
Cloud Pay someone for a pool of computing resources that can
be applied to a set of applications
Clarity around the options
Cloud Computing
• All developers can quickly deliver highly available, secure,and infinitely-scalable applications
• Rich end-user experience anywhere from any deviceApp
Model
• Mainframe of the future: 1000× as powerful at a fraction of the cost
• Maximum efficiency on industry-standard hardware
• Your datacenter or ours
Hardware
Model
• Resilient to hardware and software failure• 24×7 availability with “9 to 5” management• “Restart, reboot, reimage, replace”
Operations
Model
10X-40X more efficient
10X-40X faster to market
10X-40X cheaper to operate
* Microsoft whitepaper
The platform for the new generation of business
Source: Microsoft white paper: “Economics of the Cloud,” - www.microsoft.com/presspass/presskits/cloud/docs/The-Economics-of-the-Cloud.pdf
What Customers are Expecting
A reduction in both capital (CapEx) and operating (OpEx) expenses
• Pay only for what you use
• Do-it-yourself mentality – less appetite for services Lower total cost of ownership• No maintenance or enhancement• Less hardware, fewer technicians, etc.
Simplified software management
What Customers are Expecting
Vertically-specific applications• Out-of-the-box functionality – Instant on• Add on apps and functions when needed
Flexibility• Use 1,000 computers for one hour
– BOM, MRP, ECO, simulations• Scalability
Time to value• Speed to implementation• Speed to market
In CRM
100% of the deals in the partners’ pipelines have one or more cloud based CRM competitors.
In ERP
Based on Region• Eastern region averaging about 30%• Central region averaging 25%• West region averaging about 35%
In some geographies, as many as 50% of potential ERP prospects are enquiring about Cloud-based options now!
The Partner Experience – North America
Cloud Leadership Program
Early Entrants, Early Lessons
1. Shifts Happen
Cloud Impact
Customer ScenarioTier 2 ERP Multi X Vertical Buyer Business-in-a-Box
Some core business applications, work streams, and infrastructure move to the cloud to reduce costs, but a high need remains for customization and complex integration. Traditional services business almost completely preserved.
Strong preference for cloud-based core business applications to be accessible on a subscription basis, supplemented by add-ons and customization to meet the specific needs of the business. Traditional services business somewhat preserved.
Complete, vertically- specific cloud-based solutions demanded, accessible for a single monthly fee. Strong resistance to up-front fees (other than justified as a migration cost to a subscription model), and almost no demand for customization whatsoever. Traditional services business severely reduced.
Basic GLAPR cloud-based solutions demanded, accessible for a single monthly fee. No room for up-front fees (other than justified as a migration cost to a subscription model), and no demand for customization whatsoever. Traditional services business virtually eliminated.
Change in
Business
25–30 % 35–50 % > 50 % > 65 %
Dem
and
Shift
Services/Software Ratios
NetSuite Salesforce.com Average Microsoft Dynamics VAR
0.18 0.08
2.17
Composition of Services
On-Premises Cloud0
20
40
60
80
100
120
140
160
Executive TrainingWorkstation SetupServer ConfigurationData ConversionReportingUser and Super User TrainingApplication Setup and Configuration
Hour
s
Sales Impacts
On-Premises Cloud0
20
40
60
80
100
120
CloseProofSolu-tionDe-velop
Hour
s
On-Premises
Cloud
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%100%
Telemarketing (Ex-ternal)High Impact Direct MailPostcard Direct MailLetter Direct MailExec BriefingsPhone Follow-up (In-ternal)WebinarsEmail Nurture Market-ingSearch Engine Op-timizationPay-per-Click Campaigns
Traditional
OnlineTraditional
Marketing Impacts
Online
Impact of Cloud on your People – Changing Mindsets
SALES
• S+S• Speed to Close
• Subscription-based
• Solutions Focused
• Compensation
ARCHITECTS
• Business Skills
• New Architectures
• Governance Models
CONSULTANTS
• Fixed price SOW
• Deployment Included in Subscription Fees
• Compensation• Fast and Cheap Implementation
MARKETING
• Web-centric• Social Media• New and Exiting Customers
DEVELOPERS
• Focus on Service vs. App
• Focus on Scaled Design
• New Tools and Services
• New Operational Models
Packaging
Sticky Customer EnvironmentManaging Churn
Churn Management
For a Partner it is about• Planning and executing cross-sell strategies
– The more products and services subscribed to, the harder it is to leave • Knowing when they are likely to fall off
– End of trial, end of contract• Making it easy to stay
– Evergreen services
Thanks to• Diamond Sponsors
• Gold Sponsors
Cloud Leadership Program
Customer Acquisition
First Fact of Cloud Marketing
The Cloud is a volume game• Significantly more new customer adds are required due to lower
upfront revenue collection• Lower cost per prospect acquisition• This is not a matter of “tweaking”, Cloud requires a significantly
different marketing approach
Second Fact of Cloud Marketing
The “online” customer expects to find and buy from you online
A viable long term business model depends on• Marketing costs lower than for “on premise” solutions• High prospect quality, using some form of “lead scoring”• An effective and efficient online demand generation engine
Microsoft Dynamics Best in Class
On-Premises Cloud
$11,500
$3,100
$5,200
$3,200
Marketing CostsSales Costs
Cust
omer
acq
uisi
tion
cos
t
Cloud Leadership Program
Sell in Waves - Sales Leadership
Who Are The Buyers
Business People: Owners/LOB Managers
Focused on business functionality/processes/rationale
Looking for Ease and Speed• Easy to Buy• Easy to Pay for• Easy to Scale (up and down)
Require limited education
Want to buy rather than be sold to
EXPECT industry specific capabilities with limited configuration
Buying Criteria Changes
On Premise:• Functional fit• Price• ROI/Payback• Risk (scope/budget)• Flexibility/Configurability• Relationship/Experience• Product flexibility
SaaS:• Speed to Value• Economics
• (Capex vs. Opex)• TCO
• Industry configuration• Business flexibility• Risk (data/security)
Cloud Leadership Program
Selling In The Cloud
Selling in the Cloud
Significantly different from traditional “F2F” sales approach
Different experience for both Buyers and Sellers
Different cost and compensation models
Significantly shorter sales cycle
Entire sales process executed remotely
Not relevant for all businesses
More than just a deployment option – strategic differentiation
Solution factory mindset (sales, configuration, implementation)
Buying in the Cloud – Make it Easy
To be found• (SEO, PPC)
To differentiate• Vertical or Value Chain Solution Sets
To sell/close• Hard-wired sales processes• Clearly communicated buying process• Compliance/CRM/Reporting• Firm management oversight
For business decision makers (BDMs) to say yes• TCO/ROI analysis• Risk reduction
Overall Predictions affecting Partners in the Cloud
1. Customers will be pre-disposed to buying directly from SaaS vendors or partners that offer vertical or value chain solutions.
2. Cloud offerings will favour a business centric buying approach, challenging partners current sales operations
3. The pricing model of selling a license and a bundle of services will shift dramatically to a pay as you go model.
4. Fewer service professionals will be required in the deployment and maintenance of cloud solutions.
Overall Predictions affecting Partners in the Cloud
6. Systems integrations (applications, servers, systems) will become part of the overall offering in PaaS reducing demand for systems integration.
7. SaaS customer adoption will negatively impact hosting operations
8. The importance of proximity to customer will be dramatically reduced and replaced by homeshoring, nearshoring or offshoring
Time Horizon
Transition Stages
Transition Timelines
Year 1 Transition Plan
Year 1 Transition Plan
Transitioning to the Cloud
Think 180 degrees from where your business is today• This is a volume-based sales and marketing game; a utility – not a
services play
Think about investment capital requirements• Whether internally or externally sourced, or both
Transitioning to the Cloud
The transition to the Cloud is like starting a new business unit• It is not like adding a service line (Microsoft Dynamics CRM,
Microsoft Dynamics AX)
Think new people• You will be a hybrid for a period of time• Must remain profitable to reach the inflection point
Think change management• People need to make the transition
Workshop ‘Cloud Transformation’
- Partner Master Class delivers workshops ‘Cloud transformation’ for NL/B in Breda (NL)
- 2 Days- Focussed on ‘awareness’
- Next session on December 13-14, 2011
- Then in the first week of March 2012
Questions?
Thanks for your attention!
Guus Krabbenborggk@partnermasterclass.com www.partnermasterclass.com +31 622 496 073
Thanks to• Diamond Sponsors
• Gold Sponsors