The Channel Cloud Opportunity

Tony FranciscoVAR Dynamics

Jay McBainChannelEyes

Dan ShaperoClikCloud

Just the Facts

Where are we now?

Just the Facts

Where are we now?

$45.9B opportunity in 2012

growing to $207B by 2016

Cloud is not coming …it is here

93% of companies report Using some form of cloud solution

Source:

Source:

The Channel Shift is Happening NOW…

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are generating over half their revenue

42% expect cloud-related revenue to

For those Channel Partners offering Cloud Services:

51% grow significantly in 2012

But Customers are going Direct…or are they?

Channel Partnerspredicting growth in next 12 months 96% 21% of customers have contracted with a third party for cloud transition

Source:

Cloud Designer & Builder

Cloud Services Reseller

Cloud Service Provider

• Private Cloud orientation• Leverage traditional business

model• Incrementally add public cloud• Integrate Hybrid Cloud• Heavy PS Focus

• Public Cloud orientation• Build Recurring

Revenue• Heavy Focus on Vertical

and Application Service• Integrate Hybrid Cloud• White Label

• Public Cloud Provider• Operating Data Centers• Recurring Revenue• Support and MSP Services• IaaS or Use Case (e.g. DaaS)

Channel Models/ Approaches

Compliance

Availability

Security

Privacy

Every Challenge is a Revenue Opportunity!

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PREDICTIONSecurity, compliance, data migration, integration, and device support drives:

CHANNEL GROWTH

Conclusion:

SHOW ME THE MONEY60% of Channel Partners said customer demand is driving them to cloud.

Source:

55% report service attach opportunities

48% report consulting and network assessments driving large pre and post sales

But Customers are going Direct…or are they?

Channel Partnerspredicting growth in next 12 months 96% 21% of customers have contracted with a third party for cloud transition

Source:

Just the Facts

Where are we now?

Cloud Computing will generate 13.8M new jobs by 2015.

Will Managed Services grow to be “Managed Cloud” and capture the majority of these jobs?

Wait a minute, isn’t the low margin cloud going to kill the Channel?

“12,000 new cloud jobs in April 2012”Source:

Source:

Why the Cloud Makes Sense to Customers…

Source:

50% of companies want to reduce costs

43% want to shift to op-ex

44% think it is a better solution