©2014 Parallels IP Holdings GmbH

APS Connect:

James Raquepau (jraquepau@parallels.com)

Errol Vanderhorst (evanderhorst@parallels.com)

APS Business Development

Building Packages and Landing Deployments

THE PATH TO DEVELOPING TIGHT INTEGRATION WITH A GREAT USER EXPERIENCE

4 Step Process

Service Assessmen

t

Service Offer Development

Develop In-house or

Outsource

Service Design

Package Coding & Review

The APS Opportunity

Certified for

Parallels

Launch & Lifecycle

Define

Design

Develop

DeployGo-to-Market

Program

APS BUSINESS & TECHNICAL INTRODUCTION – LEARN ABOUT APS

What is the APS Ecosystem?

ISVs with self-hosted and syndicated cloud services• 500 cloud service applications in the APS Catalog

• 10X growth in SMB users in 2013

• Top workloads in 2013

Target channel partners for APS-enabled services• Large CSP Operators

• Hosters

• Distributors

• and MSPs

The APS Opportunity

Email Websites Security

Leadership sponsor, Product and Technical contacts assigned

APS BUSINESS & TECHNICAL INTRODUCTION – LEARN ABOUT APS

What is an APS application package?

Automated selling/provisioning/billing of services• APS packages defines the

• Business model for selling a cloud service

• SMB customer information and resources required to provision a cloud service

• Billing parameters for invoicing an SMB customer for the consumption of a cloud service

• Parallels Automation is the platform that runs the APS application package• Provides storefront and business (i.e. workflow) automation, including offering

bundles, upselling, and cross selling of multiple services

• Exposes a service via control panels and processes the APS provisioning logic by providing a single pane of “glass” for all SMB services offered

• Collects and processes billable data from the cloud service

The APS Opportunity

APS BUSINESS & TECHNICAL INTRODUCTION – CHANNEL READINESS & API REVIEW

Is your service ready for the service provider channel?

Service Provider Channel Readiness• Support: Service & Support SLAs, Support Systems

• Sales: Partner Program & Business Model for Cloud,Regional Coverage/Localization, Branding/White-label,Multi-Tier Reseller Support

• Product/Development: Product Management, Docs, Tools, Support, Dev Platforms

Key API/UX Readiness• Public/Private APIs (Self-Hosted/Syndicated)

• Multi-tenancy support for accounts & users

• Channel ready billing, provisioning, & management APIs (CRUD)

• Reseller friendly user experience (Portal or API Oriented)

• Identity management service interface

• Service development/testing/QA support

Service Assessment

Business and Technical check lists

APS Business Readiness Assessment ChecklistISV Name

Business Contact Name

Business Contact Email

Date Updated

Product Name

Brief Product Description

# Question Y/N Comments

1 Currently Selling or Plans to sell via cloud distribution channel? Please briefly explain history of cloud distribution.

2Has sales people or plans to have sales people focused on the cloud distribution channel? Please explain geographic coverage model.

3Has a business model and licensing that supports cloud distribution resale? Please briefly explain how licensing works and typical terms

4 Has marketing material to support a cloud distributor?

5 Resale is globally available. If limited, please explain geographic limitations.

6 Qualifying for joining the reseller program is open and not restrictive. Explain qualification requirements and any limitations.

7 Do you have experience negotiating distribution contracts with communications service providers? Example companies?

8Are you focused on the SMB market via cloud service distributors? What % of your business is via, SMB vs. Enterprise for cloud distribution?

9Are you investing for the long term for cloud service distribution, including sales development, aps package maintenance, etc.? What is your ROI timeline expectation for the channel investment?

10 Do you have a cloud distributor support model?

11 Is the service hosted by the service provider (your software is deployed in the service provider's data center)?

12 Is the service syndicated by the service provider (You run an mange the service in your own datacenters)?

13 Do you have Multilanguage support? (if yes for which languages)

14 Is the product available globally without restriction? (if there are restrictions, what are they).

APS BUSINESS & TECHNICAL INTRODUCTION – CHANNEL READINESS & API REVIEW

Is your service ready for the service provider channel?

Service Assessment

Business and Technical check lists

APS Technical Assessment Checklist

ISV Name

Technical Contact Name

Technical Contact Email

Date Updated

Product Name

Brief Product DescriptionCategory Requiremement Option

General

Service installation type

Application provides customers multi-tenancy

Application provides resellers multi-tenancy

Service is geo-distributed

Service provides different SLA's depending on plan/subscription purchased by account

On Premise Syndicated On Premise and Syndicated Possible

Yes No

Yes No

Yes No

Yes No

APS BUSINESS & TECHNICAL INTRODUCTION – CHANNEL READINESS & API REVIEW

Is your service ready for the service provider channel?

Service Assessment

Business and Technical check lists

APS BUSINESS & TECHNICAL INTRODUCTION – BUSINESS/SERVICE MODELING

What are you selling and how will you sell it? • Web Presence, Communication & Collaboration, IaaS,

Traditional or Vertical SaaS Solutions

• Instances (i.e. Website builder, CDN, SEM/SEO),Seats (i.e. O365, Backup), or Units (i.e. CPU, Storage,Bandwidth, Minutes, Hours, Days)

• What are the Business / Offering Model Selling Options?

• Pricing Model (freemium/premium, levels, discounts, bundles)?

• Business Rules (upgrades, downgrades, reporting)?

• Billing APIs or data to support the Business / Offering Model?

• What is the licensing model (ISV SP & Parallels SP & SP SMB)?

• Is customer interaction with the ISV Service Portal allowed?

• Have you validated your offering with a launch partner?

Service Offer Description Document / Checklist

Service Offer Developmen

t

APS Application Service Offer Checklist

1. Business Model

# Question Answer Comments Help1.1 Service sold per user or resource

instance or usage counter?Is the service sold per users or per instance/account? E.g. a website or VM are sold per instance, a mailbox per (assigned) user.

1.2 List Per user resources List the billable resources that are sold per user, if applicable.

1.3 List Per Resource Instances List the billable resources that are sold per instance, if applicable.

1.4 List Per Usage Based Resources List the resources (from above) that can be billed based on actual usage. Also describe how often the usage will have to be updated (e.g. daily or hourly or monthly).

1.5 Billing period See comments What periods are supported to be sold, and what is the minimum billing period the service can be sold for (day, week, month, year?)

1.5 Service Offer Examples See comments Provide one or multiple example offer configurations with incl. and additional resources and recommended pricing.

Example Service Plan A:- Monthly price: $9.99- Included resources:o 1 Desktop seat- Additional resources:o Desktop Seat: $8.99o 1 GB disk space: $1.99

Example Service Plan B:- Monthly price: $39.99- Included resources:o 1 Desktop Seato 1 Server Seato 10 GB of disk space (total 40GB)- Additional resources:o Desktop Seat: $8.99o Server Seat: $29.99o 1 GB disk space: $1.99

ISV Name:Application Name:

Last Update:

APS BUSINESS & TECHNICAL INTRODUCTION – BUSINESS/SERVICE MODELING

What are you selling and how will you sell it?

Service Offer Description Checklist

Service Offer Developmen

t

Will you build it or outsource development?

• Assess Development Skills– PHP/REST & HTML5/JavaScript– PA Domain/Resource Modeling Architect Skills

• Assess Development Effort– Typically ~3 man months

• Decision Point: Build In-house or Outsource– Based on availability of internal resources and skills– Internally built requires APS & PA Training (online or onsite)– Outsourced development requires obtaining proposals/bids

• Either way– Have a plan to own your APS package

• Assign a Product Manager & Product Marketing Manager– Support & Maintain your APS package (directly or indirectly)

Develop In-house or

Outsource

APS BUSINESS & TECHNICAL INTRODUCTION – DECISION POINT

DEVELOPMENT & DELIVERY PHASE – PACKAGE PLANNING

How do I get started once decision is reached?

• APS Developer Account (www.apsstandard.org)

– Documentation– Developer sandboxes– Development tools– Example APS 2 packages– Manage Support requests– Manage package self-validation

• Documentation templates for Certified for Parallels Automation (CfPA)

• Training for APS and Parallels Automation (for in-house developers & outsourced projects)

Resources committed

Develop In-house or

Outsource

DEVELOPMENT & DELIVERY PHASE – PACKAGE PLANNING

What is the APS Service Design process?• Service Requirements

– Personas

– Scenarios

– Provider

– Reseller

– Customer Admin

– Customer End-User

– Functional Requirements

• Application Lifecycle

• Service Lifecycle

• User Lifecycle

• Integrations with other Applications

• Single Sign On

• Migrations

Service Design

Service Design Document Review

– Non-Functional Requirements

• Service Dependencies

• Deployment of Service

• Branding

• Support

• Localization & Internationalization

• Billing & Licensing

• Package Design– Resource Model

• Required POA Types

– UX Mockups

• Service Provider

• Reseller

• Customer Admin

• Customer End-User

DEVELOPMENT & DELIVERY PHASE – PACKAGE PLANNING

What is the APS Service Design process?• Engage your assigned Parallels BizDev partner

manager to set up a discovery & design session

Resource Model Complete

Service Design

How should I build my APS Package UI mockup?

• Engage Parallels and service provider launch partner to get input on the planned offering model and provisioning workflows

DEVELOPMENT & DELIVERY PHASE – PACKAGE PLANNING

Plan for:• Service Provider Panel• Reseller Panel• Customer Control Panel• My (E/U) Control Panel

UI Mockup Created & Reviewed with Parallels

Service Design

APS DEVELOPMENT & DELIVERY PHASE – CODING AND TESTING

What are the steps needed to code a great package?

• Develop both backend (logic) andfrontend (UI) package elements

• Write documentation following Certified forParallels Automation (CfPA) templates

• Reengage Parallels & launch partner for pre-package review, including UI

Package Coding & Review

Package Developed & Reviewed by Parallels

APS DEVELOPMENT & DELIVERY PHASE – CODING AND TESTING

What are the steps need to certify my package?

• Submit package for Certified for Parallelsprocess

– Package Validation

– Security Audit

– UI Review

– Documentation Review

– Publish Certification

• Only packages Certified for Parallels will be supported by the APS Support team

Certified for Parallels

Package Certified by Parallels

APS DEVELOPMENT & DELIVERY PHASE – CODING AND TESTING

What is needed launch and maintain an APS package?

• Develop APS maintenance and support plan

– Product Management ownership of package

– Plan for future APS package updates to exposeadditional services or to support API updates

• Launch service with Parallels Automation partner

– Ensure sales/support training takes place

– Co-develop marketing plan to drive awareness

• Build Go-to-Market plan

– Assign Product Marketing Resources

– Compete Phase 2 marketing materials (see next section)

Package Launch

Package Launched

THE PATH TO DEVELOPING TIGHT INTEGRATION WITH A GREAT USER EXPERIENCE

4 Step Process

Service Assessmen

t

Service Offer Development

Develop In-house or

Outsource

Service Design

Package Coding & Review

The APS Opportunity

Certified for

Parallels

Launch & Lifecycle

Define

Design

Develop

DeployGo-to-Market

Programs

• HOSTERS

• TELCOS

• ISPs

• DISTRIBUTORS

• MSPs

Diverse ecosystem of service provider partners LANDING DEPLOYMENTS: WHO ARE PARALLELS AUTOMATION USERS?

SMBs 1 - 1000

• HOSTERS

• TELCOS

• ISPs

• DISTRIBUTORS

• MSPs

SMBs 1 - 10 / 10 - 25 / 25 – 100 / 100 - 1000

Diverse ecosystem of service provider partners LANDING DEPLOYMENTS: WHO ARE PARALLELS AUTOMATION USERS?

GTM diversity within segments

TELCO A TELCO B

Lift ARPU Retain customers

SMB SMB & IT Pro

• Syndicate• Best in brand• One size fits all markets

• Host solution • White-label• Differentiate by region

No two Go To-Market Programs the same!

LANDING DEPLOYMENTS: WHO ARE PARALLELS AUTOMATION USERS?

Taking Products to Market is Complicated

Opportunity Offer Channels Marketing Sales Onboarding Support

• Multiple Orgs Involved• Product management Launch Products, compete for attention• IT/Ops Simplify Life / Play with Cool Stuff / Budget Management• Sales Meet targets, default to traditional products• Customer Care Customer Sat / Cost control• Marketing The “Big Agenda” of the week

• Sometimes don’t align till Executive gets involved

Key to Success Exec sponsor who cares, continual deep engagement across value chain

Business Case Go-to-Market Strategy/Plan Market & Sell (GTM Execution)

Typically 9-18 months to launch

new service; +24 months to scale or

fail

LANDING DEPLOYMENTS: WORKING WITH LARGE SPs

Package GTM & Monetization Barriers

• Convince multiple P&L owners to dedicate resources to sell non-core products with lower ARPUs and margin

• The driver: reduce customer churn or exploit new revenue streams

• Lack of sales momentum (inbound upsell, no campaigns, no marketing)

• Selling standalone vs bundled services

• Enable multiple channels• Customer activation• Compensation

considerations• Approval for ISV sales

incentives on top of corporate plans

• Marketing: propensity buying lead/demand gen,

• Productize SKUs• Define Service Plans• Get PM focus on service

creation• Compete: cloud vs core

services• Channel strategy: Multi-

channel and geography footprint

• Buyer journey• Convince multiple BUs

with different focus and KPI’s

• Usage reporting (resources, activation…)

Business case

Go-to-Market

Market & sell

PA Platform

• Upgrade to PA 5.5+• Resources to build and

test new services• Regression testing • ISV onboarding• Migration path (APS 1.2

to APS 2)• Multi-ISV support model

LANDING DEPLOYMENTS: WHY SO LONG?

Business Case

Go-To-Market

Market & Sell

PA Platform

Where is Parallels spending time?

>85%

<5%

<5%

<5%

Current Focus: Dealing with support, product and account issues, not revenue generation

LANDING DEPLOYMENTS: CURRENT STATE

Business Case

Go-To-Market

Market & Sell

ISV Service

Where are ISVs spending time?

<5%

>85%

Current Focus: Dealing with support, product and account issues, not revenue generation

<5%

<5%

LANDING DEPLOYMENTS: CURRENT STATE

Business Case

Go-To-Market

Market & Sell

PA Services

Where are Service Providers spending time?

10%?

40%?40%? 10%?

Current Focus: Dealing with multiple masters, product issues, not revenue generation

LANDING DEPLOYMENTS: CURRENT STATE

Business Case

Go-To-Market

Market& Sell

Platform &

Service

Collective focus on driving sales volume

Commit resource to:- Cross department Sales training. Support can also sell.- Work with Business/HR to put incentives in place- Who owns the P&L number? Does he/she really own it?- Have a strategy (perhaps a product) for as many channels as possible- Be proactive: perform outbound campaigns with propensity buying

analysis- Consider onboarding players

LANDING DEPLOYMENTS: PROPOSED STATE

Create ‘Marketing & Selling’ ProgramsGoal: Drive sales volume based on three pillars

Marketing execution1 Channel expansion2 Sales execution3

• Customer propensity modelling for effective customer targeting

• Better messaging• Effective online

journey• Campaign

development

• Channel strategy and planning

• Introduction and on-board 3rd party telesales partners

• Sales training• Enablement

tools/content• Cross/upsell strategy• Bundle with APS apps• Commission/incentives

analysis

LANDING DEPLOYMENTS: RECOMMENDATIONS

Questions

Paal15

What do we do?

Positioning & messaging

Concepting & branding

Go-to-market & execution

Paal15

What ambitions do we help our customers with?

Setting up new channels (direct or

indirect)

Bringing new services to the market

Onboarding and activating new

partners or end-users

©2014 Parallels IP Holdings GmbH

#ParallelsSummit