It’s widely known that many managed service providers (MSP) have added Cloud technology to their solutions set. Recent Kaseya findings also revealed that successful MSPs have grown Cloud businesses - with significantly higher gross margins – approximately 3x faster than their on-premise peers.
In the 3rd installment of a 3-part webinar series, IT services expert Dan Shapero, Founder of ClikCloud, walks through the process of building a go-to-market plan for Cloud services offerings and provides attendees with tips to begin building their own go-to-market plans.
You'll learn:
· How to create – and implement – Cloud service pricing strategies that improve margins
· Insights on essential marketing campaigns, including messaging, lead generation, and other tactics to promote your new Cloud services effectively
· Management options for aligning sales compensation with Cloud based revenue goals
· How to avoid common pitfalls and mistakes made by many MSPs when they first offered Cloud services
· And much more
Automating Google Workspace (GWS) & more with Apps Script
Making Money in the Cloud Part 3: Essential Steps to Build a Cloud Service Practice
1. MSP Best Practices
Making Money in the Cloud |
Essential Steps to Build a Cloud
Service Practice (Part 3 of 3)
March 4, 2014
2. Agenda
• Introductions
• Recap of Parts 1 & 2
– Understanding the market opportunity
– Internal Readiness
• Cloud service pricing strategies
• Marketing campaigns to promote your new Cloud
services effectively
• Aligning sales compensation with revenue goals
• Common pitfalls and mistakes made by MSPs when
introducing Cloud services
• Q&A
4. About Kaseya
• Founded in 2000
• Over 10,000 customers and a presence in over 20 countries
• Award-winning IT systems management software offered as SaaS
and on-premise
• Serving customers across industries including government,
military, retail, healthcare, education, financial, and more
• Serving both Managed Service Providers and IT departments
• Gartner Magic Quadrant 2013 – Visionary: Client Management
Tools
• New management team and backing from Insight Venture
Partners in 2013
• New acquisitions:
– Rover Apps for BYOD
– Zyrion Traverse for Cloud & Network Monitoring
– 365 Command for Office 365 administration
5. Kaseya: The IT Management Solution for
MSPs and Mid-Market Enterprises
5
6. Why MSPs Choose Kaseya
A single Kaseya user can proactively manage 1,000s of
automated IT systems and network tasks in the same
amount of time required by a team of technicians
using other techniques
It’s the industry’s only patented single-server-singleagent architecture; MSPs get enterprise-class
capability that is easy to use and easy to afford
With 50+% of top MSPs worldwide using Kaseya, they
get access to the most robust community available
And with so many ISVs plugging in to Kaseya via a
seamless integration process, they get an easy way to
leverage their existing strategic technology
partnerships
7. About ClikCloud
• Pay-as-you-go Digital Marketing Firm
– Custom Tailored Website
– Bi-Monthly Blog Content
– Monthly Newsletter
– Pay-per-click Ad Management
– Hosting & Web Analytics Included
• Kaseya Industry Expert since 2012
8. Recap of Part 1
• Understanding the Cloud Market
Opportunity
– Market Drivers
– Service Opportunities
– Cloud Security Concerns
– Pitfalls to Avoid
http://goo.gl/785uGb
9. Recap of Part 2
• Is Your MSP Team Ready for the Cloud?
– Channel Models for Cloud
– Aligning Sales & Marketing
– Service & Support Models
– Operational Metrics
– Pitfalls to avoid
http://goo.gl/YDAiP8
10. Making Money in the Cloud | Essential
Steps to Build a Cloud Service Practice
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11. Agenda
•
•
•
•
Pricing Models and Operational Metrics
Marketing Considerations
Sales Compensation and Revenue Alignment
Pitfalls to Avoid
12. Cloud Business Model Comparison
• Migration
• Design
• Integrate
• Broker/Agent
• Manage
• Support
• SaaS Publisher
• IaaS Owner
• Operator
Cloud Designer/
Builder
Cloud Reseller
Cloud Service
Provider
13. Metrics to Drive Success
• For Cloud Designers and Builders
– Percentage (%) billable services per project
– Percentage (%) attach rate of services per project (100%
should be your target)
– Target a percentage (%) of company top line revenue
derived from services
– Specific services sales goals
– Margin targets on service transactions
14. Metrics to Drive Success
• For Cloud Services Resellers or Cloud Services
Providers more of a shift may be required
– Recurring revenue growth vs. transactional revenue
– Front-end lead generation metrics to drive down-stream
recurring revenue
– Customer-by-customer increases in recurring revenue
– Forecasting for customer churn
– Projected annual total contract value
– Cost of customer acquisition
– Level of customer satisfaction
– Rate of new customer acquisition
17. Application
Micro
Small
Medium
Large
Business productivity
19%
43%
60%
52%
Email
23%
48%
52%
48%
Web presence
23%
50%
48%
44%
Virtual desktop
15%
44%
54%
44%
Collaboration
6%
34%
52%
53%
Analytics
8%
33%
36%
35%
CRM
2%
28%
36%
43%
HR management
8%
29%
32%
34%
Expense management
8%
22%
28%
41%
Help desk
2%
27%
31%
32%
Invoicing
4%
23%
25%
21%
ERP
4%
15%
24%
28%
Payroll
8%
26%
22%
18%
Call center
4%
14%
22%
24%
Source: CompTIA’s 2nd Annual Trends in Cloud Computing study
Base: 373 U.S. businesses (aka end users) currently using cloud solutions
18. Other Key Benefits Reported by Users
Benefits Cloud Adopters Have Experienced
Ability to cut costs
43%
Be er op on for mul ple reasons
42%
Moderniza on of legacy IT
40%
Reduce capital expenditures
38%
Add new capabili es or features
38%
Be er model for licensing/upgrades
35%
Business units operate more freely
35%
Crea on of new offerings or services
34%
Reduce opera onal complexity
33%
Simple/fast implementa on
Reduc on in internal IT headcount
Predictable pricing
32%
29%
25%
Source: CompTIA’s 4th Annual Trends in Cloud Compu ng
Base: 449 U.S. end users with cloud solu ons
19. Website Considerations
• Have a Strong,
Easy to Find “Call
to Action”
• Include Keyword
Rich Content
• Ensure Phone
Number is
Prominent
• Mobile Friendly
22. Relevant Blog Content
• Provide IT Best Practices
• Write with Business
Owner in Mind
• Stay Vendor Neutral
• SEO Optimize
• Discuss News & Trends:
–
–
–
–
Cloud Computing
Mobility
IT Security
Data Protection
23. Email Newsletter to Stay Top of Mind
•
•
•
•
Branded
RSS Feed from Blog
Social Media Links
Offer & Features
Service
• Best Practice Footer w/
Address & Unsubscribe
Links & List
Management
24. Social Media Integration
• Up Cycle Blogs &
Videos
• Automate Blog Feeds
• Include Links in Your
Newsletter Links
• Build a Fan Base
• Join LinkedIn Groups
28. What skills and knowledge is
your talent missing?
Vertical Knowledge
Business Acumen
• Retail, healthcare, education,
hospitality, etc.
– Products
– Competitors
– Challenges
– Strategic positions within
the industry
– Industry terminology
(churn, rework, etc.)
• Knowledge of the operations of
an organization
– Financial
• CAPEX vs. OPEX
• Revenue vs. profit
• Annual report
– Workflow through
departments
• Understands the business
value of cloud
31. Understand the Challenges
Challenges Channel Faced in Adop ng Cloud
Not
Significant
Somewhat
Significant
Very
Significant
Developing cloud tech/sales exper se
11%
40%
50%
Op mizing cloud marke ng/sales messaging
12%
39%
49%
Cash flow/financial considera ons
12%
42%
46%
Determining business model
12%
43%
45%
Balancing needs of legacy business
12%
44%
44%
Ini al startup costs
14%
42%
44%
Deciding vendors to work with
14%
43%
43%
Source: CompTIA’s 4th Annual Trends in Cloud Compu ng study
Base: 400 U.S. IT or Business execu ves (aka end users) using cloud solu ons
32. Do’s & Don’ts
• Don’t Assume Cloud is
“Just Another Product”
• Do Consider the Impact
on:
– Team/Skills
– Operating Model
– Sales & Marketing
• Don’t Neglect Your Sales
& Marketing Tools
• Get Help When/Where
You Need It
33. Wrap Up
Pay-as-you-go
Digital Marketing Service
•
•
•
•
•
Custom Tailored Website
Syndicated Blog Content
Monthly Newsletter
Social Media Integration
Hosting & Web Analytics Included
Attendee Offer:
Free 30 Min. Marketing Consultation
Email: info@ ClikCloud.com
Subject: “Consultation”
For More Info visit:
ClikCloud.com/Kaseya
“ClikCloud is brilliant – they take
the hassle out of digital marketing.
It’s more than a website, it’s like
having a digital marketing team
available as a pay as you go
subscription.."
Anthony M.
NSW Australia
34. Next Steps
• More on ClikCloud
www.clikcloud.com/kaseya
• Learn more about Kaseya for MSPs
www.kaseya.com/msp
• For a free live product demo
www.kaseya.com/mspdemo
• For a free trial
www.kaseya.com/trynow
Kaseya Industry Expert Webinars
www.kaseya.com/resources/webinars
• To speak with us
www.kaseya.com/contactme
/KaseyaFan
/company/kaseya
@kaseyacorp
community.kaseya.com
Notas do Editor
You need to put an end to the viscous ups and downs and run your business accordingly. You can’t plan for growth when you have no idea what your growth will be
You need to put an end to the viscous ups and downs and run your business accordingly. You can’t plan for growth when you have no idea what your growth will be
You need to put an end to the viscous ups and downs and run your business accordingly. You can’t plan for growth when you have no idea what your growth will be
Having chosen a business model to focus on, it’s critical to put in place metrics that can help drive your efforts. For Solution Providers focused on building private cloud infrastructure, the business model and metrics will not be radically different than that of a traditional reseller business. This is fundamentally still a model where revenues are derived from the resale of product and services from integration. This approach does demand increasing the percentage of revenue coming from integration services to help customers move to private cloud. Solution Providers focused on private cloud should set firm targets for professional services and consulting oriented growth such as:• % billable services per project• % attach rate of services per project (100% should be your target)• Target a % of company top line revenue derived from services• Specific services sales goals• Margin targets on service transactions
Having chosen a business model to focus on, it’s critical to put in place metrics that can help drive your efforts. For Solution Providers focused on building private cloud infrastructure, the business model and metrics will not be radically different than that of a traditional reseller business. This is fundamentally still a model where revenues are derived from the resale of product and services from integration. This approach does demand increasing the percentage of revenue coming from integration services to help customers move to private cloud. Solution Providers focused on private cloud should set firm targets for professional services and consulting oriented growth such as:• % billable services per project• % attach rate of services per project (100% should be your target)• Target a % of company top line revenue derived from services• Specific services sales goals• Margin targets on service transactions
Q19
What skills and knowledge are missing in your team?Can your team be considered a senior advisor to your customers? Are you connected to, respected by, and able to speak the language of the CEO/CIO/CFO – not just IT?.Vertical knowledgeAre you an expert in your clients’ market?Business AcumenDoes your team understand and can they explain financial terms?Being able to explain CAPEX vs. OPEX is critical to selling cloud solutions.Do you team members attend industry events for your vertical market? Have any of your team members obtained training in business financials?And finally let’s talk briefly about sales compensation. There’s a big difference in motivation for a sales person getting one big commission cheque on a large transaction vs. 24 small cheques over the course of a two-year contract. So much so that it impacts behaviour and what that sales person is willing to sell or even talk about to their customers. You’velikelymadethesecompensationchangesalready—with moderatesuccess. Most solutionprovidersareapproachingthis challenge with a combination of spot incentives to sellcloud and pullingsomeportion of the commissions on a long-term contractintoanup-front bonus. But thereis no silverbullet. You can adjust incentives to “over-reward” recurring revenue business, but at the end of the day—it may require more than just incentives to get to thenext level. Training and the adjustment of hiring profiles must be consistently employed to impact change over the long haul.