Leveraging the Cloud to Lower Your Wireless Networking Costs

19
Leveraging the Cloud to Lower Your Wireless Networking Costs – “Wireless Control in the Cloud” Jim Steinbacher Director of Sales PowerCloud Systems Rick Lindahl President Invictus Networks

description

Presented on May 3, 2012 for InnoTech Oregon. All rights reserved.

Transcript of Leveraging the Cloud to Lower Your Wireless Networking Costs

Page 1: Leveraging the Cloud to Lower Your Wireless Networking Costs

Leveraging the Cloud to Lower Your Wireless Networking Costs – “Wireless Control in the Cloud”

Jim SteinbacherDirector of SalesPowerCloud Systems

Rick LindahlPresidentInvictus Networks

Page 2: Leveraging the Cloud to Lower Your Wireless Networking Costs

Agenda

o Overview

o Why Cloud?

o What is Available?

o How to Make/Save

$$

o Solutions in Action

Page 3: Leveraging the Cloud to Lower Your Wireless Networking Costs

Corporate Overview

o Invictus Networks • Founded in 1990 by Rick Lindahl

• A leading Northwest expert supplying Wi-Fi for MSPs & SMB

verticals

• Broad-based expertise in RF planning and implementation

o PowerCloud Systems• Developer of CloudCommand

• Global leader providing Networking as a Service (NaaS)

• VC-backed spinout from PARC labs; Qualcomm lead investor

• CloudCommand enables VARs to earn recurring revenue

(subscript)

Page 4: Leveraging the Cloud to Lower Your Wireless Networking Costs

What is “The Cloud” ?

It’s really pretty simple!• If you use GMail, Yahoo, or

any web email• If you use a web-based tool• If you use Amazon or other

online vendors• If you use online backup

from Mozy, Intronis, Carbonite, etc.

• If you use Dropbox

You already use the cloud!

Page 5: Leveraging the Cloud to Lower Your Wireless Networking Costs

What is “The Cloud” ? (cont.)

“Cloud” is basically a virtualized, distributed, computing platform

• Public, Private, Hybrid• Allows for rapid product scaling and

deployment• Reduces costs for both end users and

developers

Page 6: Leveraging the Cloud to Lower Your Wireless Networking Costs

Market Overview: Rush to the CloudSMB Adoption in 2012

o SMB cloud market grew 25% last year

o SMBs with <20 employees are 3x more likely to choose cloud services over on-premise services (due to cost, flexibility & management)

o SMBs will increase 100% spending for cloud applications by

2015

Parallels Research 2012SP / MSP Adoption in 2012

o >70% are “on track” to offer cloud-based managed services in 2012

UBM Channel Research 2012

Page 7: Leveraging the Cloud to Lower Your Wireless Networking Costs

The Traditional Methods of WiFi DeploymentController Based

o Feature rich

o Expensive to deploy, especially for multiple sites

o Often requires expertise beyond the scope of many VARs and

MSPsStandalone (ala’ a Linksys from Frye’s)

o Limited featureso A security nightmareo No remote managemento Low margin on resale

Page 8: Leveraging the Cloud to Lower Your Wireless Networking Costs

Cloud based solutions bridge the gap

• Low cost for both the end user and the Reseller

• Moves system costs from CapEx to OpEx

• Scales both up and down• Remote management ‘from anywhere’• Enterprise level security• Features not available in standalone• HIPAA and PCI compliance

Page 9: Leveraging the Cloud to Lower Your Wireless Networking Costs

Why VARs and MSPs Should Buyo $$ - Revenue Opportunity

Build business managing Wi-Fi

o Manage Multiple Customers 1 pane of glass empowers MSPs to see/control multiple sites simultaneously

o Remote ManagementAny browser, anywhere, anytime

o Plug ‘n ConnectZero config; Drop ship to customer; eliminate truck rolls!

o Email & SMS alerts

o Site Survey Rogue Detection

o Auto Firmware Updates

o Low Cost to Deploy/Manage

o Firewalled Hotspot & Guest Access$$, customizable, auto-scheduling & more

o Enhanced SecurityPatented IDA to add/remove/track per-device activity

o Multiple Location RoamingTransparent security all locations; great for branch, multi-store, home

Page 10: Leveraging the Cloud to Lower Your Wireless Networking Costs

Why Customers Should Buyo Increased Security for

Their Network

o Affordable

o Both MSP and Customer Can Manage the WiFI

o Adding Additional Coverage for One or Multiple Locations is Easy

o Firewalled Hotspot & Guest Access

o Multiple Location Roaming

o Compliance

Page 11: Leveraging the Cloud to Lower Your Wireless Networking Costs

Three Basic Business Models:

o Reseller sells solution to the end user and end user manages

o MSP sells equipment to end user and manages for a monthly fee

o MSP ‘leases’ equipment to end user and manages for a monthly fee

How to Boost Profits…

Page 12: Leveraging the Cloud to Lower Your Wireless Networking Costs

Traditional VAR Model:

Real numbers…End User Hardware Price $ 79.95

MSP/VAR AP Hardware Cost $ 70.00

End User Initial Cloud Price $ 129.95

MSP/VAR Initial Cloud Cost $ 75.00

End User Renewal Price $ 99.95

MSP/VAR Renewal Cost $ 65.00

Number of Customers

  10 20 50 100

Average Number of APs per Customer  

1 $ 998.50 $ 1,997.00 $ 4,992.50 $ 9,985.00

1.5 $ 1,497.75 $ 2,995.50 $ 7,488.75 $ 14,977.50

2 $ 1,997.00 $ 3,994.00 $ 4,992.50 $ 19,970.00

3 $ 2,995.50 $ 5,991.00 $ 14,977.50 $ 29,955.00

Page 13: Leveraging the Cloud to Lower Your Wireless Networking Costs

MSP Model One:

Real numbers…End User Hardware Price $ 79.95

MSP/VAR AP Hardware Cost $ 70.00

End User Initial Cloud Price $ 129.95

MSP/VAR Initial Cloud Cost $ 75.00

End User Renewal Price $ 99.95

MSP/VAR Renewal Cost $ 65.00

Business model A monthly billing charge $ 10.00

Burden Rate (%) 30%

Number of Customers

  10 20 50 100

Average Number of APs per Customer  

1 $ 2,678.50 $ 5,357.00 $ 13,392.50 $ 26,785.00

1.5 $ 4,017.75 $ 8,035.50 $ 20,088.75 $ 40,177.50

2 $ 5,357.00 $ 10,714.00 $ 26,785.00 $ 53,570.00

3 $ 8,035.50 $ 16,071.00 $ 40,177.50 $ 80,355.00

Page 14: Leveraging the Cloud to Lower Your Wireless Networking Costs

MSP Model Two:

Real numbers…End User Hardware Price $ 79.95

MSP/VAR AP Hardware Cost $ 70.00

End User Initial Cloud Price $ 129.95

MSP/VAR Initial Cloud Cost $ 75.00

End User Renewal Price $ 99.95

MSP/VAR Renewal Cost $ 65.00

Business model A monthly billing charge $ 35.00

Burden Rate (%) 30%

Number of Customers

  10 20 50 100

Average Number of APs per Customer  

1 $ 3,780.00 $ 7,560.00 $ 18,900.00 $ 37,800.00

1.5 $ 5,670.00 $ 11,340.00 $ 28,350.00 $ 56,700.00

2 $ 7,560.00 $ 15,120.00 $ 37,800.00 $ 75,600.00

3 $ 11,340.00 $ 22,680.00 $ 56,700.00 $ 113,400.00

Page 15: Leveraging the Cloud to Lower Your Wireless Networking Costs

Add Best-in-Class Hardware

Ubiquiti Unifi AP Family (UAP, LR, Pro, Outdoor)o 300Mbps speed

o 500ft range

o Preferred product

More platforms soon!

Page 16: Leveraging the Cloud to Lower Your Wireless Networking Costs

How to Sell OPENMSPs95% don’t have a cost effective Wi-Fi solution for SMB customers

Small Office Medical VerticalHIPAA compliance is required – OPEN provides it with IDA, event capture & per-device reporting

HospitalityOPEN’s affordability means even Tier 3 hotels can offer guest Wi-Fi that works (indoors/outdoor) – managing it for a fraction of traditional costs

Come Inside & Expand to Wi-FiWISPs in the outdoor market and resellers and others who are new to wireless sales & support – can immediately expand their business footprint and build new channels

Page 17: Leveraging the Cloud to Lower Your Wireless Networking Costs

Success in Action

Hospitality Healthcare Education

Page 18: Leveraging the Cloud to Lower Your Wireless Networking Costs

Jim SteinbacherDirector of Sales

PowerCloud [email protected]

(971) 563-2164

http://open.cloudcommand.com

Questions?

Page 19: Leveraging the Cloud to Lower Your Wireless Networking Costs

Visit us at the Invictus Booth