CSEU - Canalys Keynote: The Changing Cloud Opportunity for the Channel

The changing cloud opportunity

for the channelAlastair Edwards, Principal Analyst

Insight. Innovation. Impact.

Presentation download

www.canalys.com/download/barcelonaUsername: spainPassword: emea

Available until: 30 April 2015


2014 ended strongly for the IT industryCanalys IT Titans Index

Revenue growth by region

11% 10%1% 3%

-1%

9%

Q32013

Q42013

Q12014

Q22014

Q32014

Q42014

2% 2%4%

9%6%

9%

Q32013

Q42013

Q12014

Q22014

Q32014

Q42014

1% 2% 2% 3%6%

14%

Q32013

Q42013

Q12014

Q22014

Q32014

Q42014

Europe, Middle East & Africa

Americas

Asia Pacific

Source: Latest reported financial results for Apple, Cisco, EMC,

Google, HP, IBM, Intel, Juniper Networks, Lenovo, Microsoft,

Oracle, Salesforce.com, Samsung and SAP


But competing forces are at play in EMEA

Growth inhibitors

Growth drivers

Rising product

prices

Greek debt

crisis

Russia Skills shortage

Currency

volatility

SecurityData center

transformation

Windows

Server 2003

migration

Low oil price

Shifting

vendor

landscape

Channel performance


regulation local

open source

The reality of cloud has changed


Every customer’s IT mix will be different

Public cloudsHostedManagedOn-premises

At workAt home On the move

Security becomes a top priority


The channel becomes the main route for cloud

Standards-based Integration

Data sovereigntyProfessional

services

Compliance

and regulatory

expertise

In-country,

trusted advisor

Security

The channel plays a unique

role in the delivery and

management of hybrid cloud

environments


ITaaS to represent 37% of revenue by 2017

41%38%

13%

5%1% 1%

4%

36% 36%

18%

4% 2%2%7%

28%

35%

21%

7%

0%

10%

20%

30%

40%

50%

0% 1% - 9% 10% - 24% 25% - 49% 50% - 74% 75% - 100%

2011 2014 2017

ITaaS revenue share

What proportion of your revenue

comes from IT delivered as a service

(managed, hosted and cloud services)?

Source: Canalys survey, 352 IT channel respondents, September 2014


20%

21%

25%

25%

29%

31%

35%

37%

39%

40%

40%

62%

0% 20% 40% 60% 80%

Agreeing service level agreements with customers

Shifting from upfront to annuity revenue model

Managing profitability

Complexity of integrating with on-premises IT

Changing incentives for sales staff

Addressing new buying points beyond IT department

Long sales cycles

Customers don't see as providers of cloud services

Customers' security concerns over cloud

Finding skilled pre-sales/consulting staff

Cloud providers don't understand the channel

Cloud providers/vendors bypassing the channel

Direct cloud remains greatest channel fearSignificant challenges faced by partners when selling IT-as-a-service

Percentage of respondentsSource: Canalys survey, 352 IT channel respondents, September 2014


Choose your roles carefully

Managed services

(managing customer-

owed assets)

Cloud services

from own data

center

Cloud services from

third-party data

center

Reselling third-

party cloud

services

Different channel business models are emerging

Changing sales

culture

New profitability

drivers

Portfolio mix – new vendors

and services

Shift to annuity

revenue streams

Manage multiple

business models

New

competitors


5%

6%

7%

29%

37%

0% 10% 20% 30% 40% 50% 60% 70%

Pre-production services

Big data/analytics

CRM

Vertical applications

Web hosting

Collaboration

Platform-as-a-service

Security

Infrastructure-as-a-service

Productivity applications

Most significant

Second most

Third most

Developing the right cloud portfolio is keyWhat cloud-based services do you feel represent the most significant opportunities for the channel today?

Percentage of respondents



Channel partner

Sphere of

influence – key

to unlocking

budget

User User User User

User User User User

CMO CPOCIOCFO COO

CEO

Marketing HRFinance OperationsIT

procurement

Partners must also widen sphere of influence


Expect IoT to drive a new compute paradigmEvolution of computing architectures

Mobile

Computing

for anywhere

Cloud

Computing

for demand

Big iron

Computing

for criticality

Distributed

Computing

for everyone

Redistribution of computing workloads based on need

Internet of

Things

Computing

for anything


Distributors must support this transformation

9% 23% 46% 22%Very

important

Not at all

important

How important will the role of IT distributors be as ‘cloud aggregators’ ?

68% of partners believe distributors will play

an important role as ‘cloud aggregators’



Changing customer priorities

• Drive the prominence of YOUR brand

• Expand your sphere of INFLUENCE

• DISRUPT established thinking within customers

• CHOOSE the right partners for your future strategy

• Deliver BUSINESS advantage, not just technology

• Remain committed to your CORE VALUES!

Rethink your value proposition

New economic modelsSoftware-led, not

hardware-ledAnalytics

Business outcomesSpeed, flexibility

and agility

Evolving value

proposition for

the channel

The changing cloud opportunity

for the channelAlastair Edwards, Principal Analyst


Presentation download

www.canalys.com/download/barcelonaUsername: spainPassword: emea

Available until: 30 April 2015

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the subject companies, but is not guaranteed as to accuracy or completeness. It does not contain information provided to us in confidence by the industry. Market data

contained in this document represents Canalys’ best estimates based on the information available to it at the time of publication.

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CSEU - Canalys Keynote: The Changing Cloud Opportunity for the Channel

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