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MSP Best Practices
Making Money in the Cloud |
Essential Steps to Build a Cloud
Service Practice (Part 3 of 3)
March 4, 2014
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
You could win!
Winner drawn at
end of session
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
Kaseya: The IT Management Solution for
MSPs and Mid-Market Enterprises

5
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
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
Recap of Part 1
• Understanding the Cloud Market
Opportunity
– Market Drivers
– Service Opportunities
– Cloud Security Concerns
– Pitfalls to Avoid

http://goo.gl/785uGb
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
Making Money in the Cloud | Essential
Steps to Build a Cloud Service Practice

000000_10
Agenda
•
•
•
•

Pricing Models and Operational Metrics
Marketing Considerations
Sales Compensation and Revenue Alignment
Pitfalls to Avoid
Cloud Business Model Comparison

• Migration
• Design
• Integrate

• Broker/Agent
• Manage
• Support

• SaaS Publisher
• IaaS Owner
• Operator

Cloud Designer/
Builder

Cloud Reseller

Cloud Service
Provider
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
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
Additional Pricing Considerations
Prepaid /
Multi-Year

Pay as you
go
Marketing Considerations
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
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
Website Considerations
• Have a Strong,
Easy to Find “Call
to Action”
• Include Keyword
Rich Content
• Ensure Phone
Number is
Prominent
• Mobile Friendly
Optimized Landing Page
•
•
•
•

Support Call To Action
Add a Human Element
Set Expectations
Keep Your Qualification
Form “Above the Fold”

20
On Page Search Engine Optimization
• Keyword Research
• Unique Titles &
Descriptions
• Search Engine
Submission
• Webmaster Tools
• Reporting & Analysis
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
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
Social Media Integration
• Up Cycle Blogs &
Videos
• Automate Blog Feeds
• Include Links in Your
Newsletter Links
• Build a Fan Base
• Join LinkedIn Groups
Sales Considerations
Align Sales Goals With Business Goals

Suspects
Prospects

Pipeline

Accounts
Review Compensation Models
•
•
•
•

Evergreen Commissions
Upfront Commissions
Life Cycle Commissions
Retention Bonuses
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
Avoiding the Pitfalls
Understand the Challenges
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
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
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
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
Making Money in the Cloud Part 3: Essential Steps to Build a Cloud Service Practice

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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
  • 3. You could win! Winner drawn at end of session
  • 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 000000_10
  • 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
  • 15. Additional Pricing Considerations Prepaid / Multi-Year Pay as you go
  • 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
  • 20. Optimized Landing Page • • • • Support Call To Action Add a Human Element Set Expectations Keep Your Qualification Form “Above the Fold” 20
  • 21. On Page Search Engine Optimization • Keyword Research • Unique Titles & Descriptions • Search Engine Submission • Webmaster Tools • Reporting & Analysis
  • 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
  • 26. Align Sales Goals With Business Goals Suspects Prospects Pipeline Accounts
  • 27. Review Compensation Models • • • • Evergreen Commissions Upfront Commissions Life Cycle Commissions Retention Bonuses
  • 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

  1. 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
  2. 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
  3. 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
  4. 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
  5. 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
  6. Q19
  7. 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.