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Making Money in the Cloud
- 1. Proprietary and Confidential, Copyright © 2013 Gravitant, Inc.
Making Money in the Cloud
by Becoming a Next-Generation Channel PartnerPraveen Asthana
Chief Marketing
and Strategy
Officer
September 12, 2013
- 3. Proprietary and Confidential, Copyright © 2013 Gravitant, Inc.
An Industry in Transition
Traditional IT moving to Cloud IT
Infrastructure
IT Governance +
IT Ops + Systems
Management
Applications
Development
& Management
Enterprise
Packaged
Apps
MSP/Channel Partners
• Public
• Private
• Hybrid Cloud Mgmt
• Business of Cloud
Mgmt
• Cloud Governance
• DevOps
• PaaS
• Cloud App
Middleware
• Salesforce.com
• Workday
• Office 365
• Google Docs
• Cloud Aggregation
& Solution as a
Service
• Biz Process as a
Service
Hardware
Outsourced
Data Center
Buss Process
Outsourcing
PaaS CMaaSCMaaS SaaSIaaS
- 4. Proprietary and Confidential, Copyright © 2013 Gravitant, Inc.
Enterprises are serious about cloud
Base: 2,200 to 2,444 IT software decision-makers; Source: Forrsights Software Survey, Q4 2012
“What are your firm’s plans to adopt the following as-a-service technologies?”
0%
10%
20%
30%
40%
50%
60%
70%
2010 (Actual) 2011 (Actual) 2012 (Actual) 2013 (Planning to
implement in the
next 12 months)
2014+ (Planning to
implement in a
year or more)
By the end of 2013, about 40% of all companies
will be using IaaS (50% by 2014!). SaaS
IaaS
PaaS
- 5. Proprietary and Confidential, Copyright © 2013 Gravitant, Inc.
Channel partners must quickly capitalize on the shift in
IT infrastructure spend
• Channel hardware infrastructure revenue slowing or
shrinking
• Cloud service providers capturing the fastest growing
category of infrastructure revenue, bypassing the
channel
• Traditional managed services are not optimized for a
cloud-based DC
• Monolithic outsourcing contracts being replaced with
cloud-based, point offerings
• Enterprise IT has a gap in its business ability to manage
multiple clouds, private and public
Servers (1) IaaS (2)
Infrastructure Revenue
Growth
1. Total global server factor revenue, Q1-2013 IDC Worldwide Quarterly Server Tracker, May 2013.
2. Forecast Overview: Public Cloud Services, Worldwide, 2011-2016, 2Q12 Update, Gartner Research, August 2012.
-7.7%
+43%
Server revenue
has fallen five of
the last six
quarters.1
- 6. Proprietary and Confidential, Copyright © 2013 Gravitant, Inc.
Cloud Disrupts the IT Channel
Today
Risk of Being Left Out
• One third of revenue at risk to CSPs; potential for greater
customer loss
• No capability to meet customers’ cloud needs (e.g., no
cloud-centric design)
• Less ability to attach managed services
• Uncertain demand creates risk for cost basis and
profitability
MSFT
SAP
ORCL
IBM
HP
VMW
CSCO
Solution
Design & Delivery
System
Integrator
Biz
Units
Public
Cloud
Managed
Services
Yesterday
The Trusted Advisor
• 30-45% margin business
• Deliver custom integrated on-premise solution stacks
with attached managed services
• Build ahead of anticipated demand
• Improve cost basis by scaling demand and improving
processes over time
MSFT
SAP
ORCL
IBM
HP
VMW
CSCO
Solution
Design & Delivery
System
Integrator
Biz
Units
- 8. Proprietary and Confidential, Copyright © 2013 Gravitant, Inc.
Promise and Peril of Cloud
Benefits
• Low cost
• Improved agility
• Elasticity
Issues
• Rogue IT Enabled
• Cloud Sprawl
• More silos to manage
• Which apps/which cloud?
• Sourcing complexity
• IT Planning is harder
• Elasticity management
• Unpredictable cost
• Security
- 9. Proprietary and Confidential, Copyright © 2013 Gravitant, Inc.
On the CIOs Whiteboard Today
Gaps in our current cloud strategy and capabilities
What app
should I move
to the cloud?
What
infrastructure
design for
cloud?
What cloud
matches
my need?
How do I
provision and
orchestrate
to different
clouds?
Web server in
public cloud
Database in
private cloud
Image data in
public cloud10010
Amazon Google VMware
Private
OpenStack
Private
What are
the right:
- Features
- Packaging
- Pricing
Cloud
Design
API 1 API 2 API 3
How do I read these bills?
Are they accurate?
How do I manage these
contracts?
Pricing keeps changing!
- Cost
- Utilization
- SLA
- Demand v Supply
- Compliance
Analytics for
business support
KPI Dashboard
How can I get a
business support system
that allows me to
manage my business
objectives and provide
decision support?
I need multi-level
integration with my
existing IT and financial
management systems
and investments
Cloud
Mgmt
$ Financial
Procurement
Current IT
General concerns:
• Many clouds à lots of
complexity
• Potential for lock-in?
• How do I ensure resiliency?
• How do I ensure governance?
• Takes too long to deploy new
app infrastructure
• Growing shadow IT
CLOUD IS HARD!!!
- 10. Proprietary and Confidential, Copyright © 2013 Gravitant, Inc.
Problem: Cloud Makes it Harder as it Fractures the Current Value Chain
Can’t make money in
Cloud..
CIO/CFO
Sourcing/Contract Management
Ordering, Billing, Metering
Resource, Cost, SLA Control
ü
ü
BU/Developers DevOps Tools of Choice
Deploy Apps on AWS or any cloud
Service Management
Architects,
IT Admins
Complete Solution Design
Multi-Cloud Production Ops (Int/Ext)
Global Resource Management
SaaS
PaaS
IaaS
Ancillary
Services
Virtualized
/Physical
ALM Tools/Platform
Sprawl, Time to
Production Issues
High Risk , Compliance
Issues, Can’t Save Money,
Lock In
Continuously meet
demand for resources,
quickly deliver solutions
Enterprise Challenges
SI/VAR
Platform for selling Cloud
Quickly construct solutions
Cost effectively deliver Solutions
Today, 70% of Enterprise IT is served by the Channel
- 11. Proprietary and Confidential, Copyright © 2013 Gravitant, Inc.
Gravitant Connects the Cloud Value Chain
Integrated Cloud Value across Enterprises, SIs and Providers
Today, 70% of Enterprise IT is served by the Channel
Run a High Volume,
Transaction based
Cloud Business Model
• Aggregate and Sell Cloud Solutions
• Sales Velocity – Solution to Quote to Transaction
• 15-25% Growth Business
• 5X-7X reduction in Time to Solution Delivery
SaaS
PaaS
IaaS
Ancillary
Services
Virtualized
/Physical
CIO/CFO
BU/Developers
Architects,
IT Admins • Time to Solution: Months to Days
• Solution Portability
• Integrated Ops
• 30% - 50% Cost Savings
• Increased Choice
• Reduced Risk with Compliance
• Financial System of Record
• Quick time to production
• Choice of DevOps Platforms/Tools
• Single Point for Support
SI/VAR
Gravitant
cloudMatrix
- 12. Proprietary and Confidential, Copyright © 2013 Gravitant, Inc.
Gravitant’s Cloud Brokerage and Management Software Platform
Streamlines the Cloud Value Chain
Public Clouds
Managed Services
Private Clouds
(VMWare, OpenStack)
ITO
Advanced Cloud Analytics
– Matching & Metering
Pricing & Commerce
Engine
Cloud Service Bus &
Registry
Collaborative Solution
Design & Provisioning
cloudMatrix Platform
Enterprises
Design
& Simulate
Match
& Source
Order
& Fulfill
Control
& Align
- 13. Proprietary and Confidential, Copyright © 2013 Gravitant, Inc.
Cloud services brokerage allow customers to get more out of the cloud
Providing cloud IT and business management
Lower Cost
Reduce infrastructure cost by 20-40% and improve
staff productivity
Better Choice
Match the best providers and services with the right
business need
More Control
Gain visibility, ensure governance, and
reduce risk
Greater Speed
Faster path to revenue for the business
- 14. Proprietary and Confidential, Copyright © 2013 Gravitant, Inc.
On the CIOs whiteboard today
The ideal solution – get more out of cloud
Collaboratively
Design
Security
$
Backup
Monitor
SLA
Match
to Right
Clouds
Add
Managed
Services
Estimated
Bill of IT
Order,
Orchestrate
& Provision
Manage,
Control,
Decide
+ Connect Current IT
Financial
Mgmt
IT Service Mgmt
IT Ops Mgmt
Supply
Chain
Mgmt
Change Change Change
Technical
Financial
Legal
Flow of
Approvals
Key benefits:
• Provide IT value add to biz users; corral Shadow IT
• Speeds overall process to deliver app infrastructure
• Improves my staff’s productivity through automation
• Reduces lock-in and makes me future proof
• Provides governance and cost management
• Masks cloud complexity
- 15. Proprietary and Confidential, Copyright © 2013 Gravitant, Inc.
Gravitant’s cloudMatrix Enables Enterprises to Realize
the True Value of the Cloud
Without Gravitant With Gravitant
- 16. Proprietary and Confidential, Copyright © 2013 Gravitant, Inc.
Gravitant Cuts Through the Complexity of Choosing
the Best Fit Cloud Provider:
Provider Match
Description Average Price Location Security SLA Provisioning Time
On demand commodity cloud
provider. Enterprise support
available at additional cost
Compute: $17,234
Storage: $625
Network: $802
SW: NA
Operations: $16,137
US East (VA)
US West (OR)
US West (N. CA)
EU (Ireland)
AP (Singapore)
AP (Tokyo)
Virtual Perimeter Firewall
and Routing between
VLANs
99.95% annual uptime only for
access to VM in particular
region. Service credit up to
10%.
VM provisioning: 10-15 min
1st VDC: Hours
Subsequent VDC: Hours
85%
Higher-level security & SLA:
optimized for eCommerce &
Web Hosting
Compute: $23,623
Storage: $7,489
Network: $500
SW: NA
Operations: $12,957
US East (VA)
US West (CA)
Asia
EMEA
Enterprise Grade Virtual
Perimeter Firewall
Additional Cost for IDS/
IPS
100% infrastructure 99.9%
end-to-end availability of
customer assets. Service
credit up to 30%
VM provisioning: 2-4 hours
1st VDC: 2 days
Subsequent VDC: 4 hours 100%
Reserved capacity-based
dedicated resources; fixed
cost, simpler management,
supports bursting
Compute: $45,000
Storage: $5,991
Network: $500
SW: $0
Operations: $11,897
Culpepper, CA
Miami, FL
Sao Paulo, Brazil
Amsterdam,
Netherlands
Enterprise Grade Virtual
Perimeter Firewall
Additional Cost for IDS/
IPS
99.9% end-to-end availability of
customer assets. Service credit
up to 50%.
VM provisioning: 10-15 min
1st VDC: 10 days
Subsequent VDC: 10 days 135%
Private, community cloud with
dedicated capacity; fixed
costs; physically secure
Compute: $15,000
Storage: $400
Network: $500
SW: $0
Operations: $18,000
Austin, TX Enterprise Grade Virtual
Perimeter Firewall
Limited outside access
99.9% end-to-end availability of
customer assets. Service credit
up to 50%.
VM provisioning: 15-30 min
1st VDC: 2-3 day
Subsequent VDC: hours 115%
Pricing based on a production environment for a CRM.
30% variance between choosing any
provider versus choosing the right
one.
Terremark
135%
Monthly cost: $63,388
Arbitrary Selection
Savvis
100%
Monthly cost: $44,569
Optimal Selection
- 17. Proprietary and Confidential, Copyright © 2013 Gravitant, Inc.
Gravitant: Cut Solution Cycle Time by 10X
Address the longest and most expensive part of the app deployment lifecycle
Design
>3 months
Order
3-6 months
Deploy
4 weeks
Provision
6 weeks
Changes
1-3 weeks
Today’s Enterprise with Virtualization
Enterprise with today’s Hybrid Cloud Management
Design
> 3 months
Order
2 months
Hours to
days
Hours to
days
Changes
1-3 weeks
CMP can reduce VM deployment & provisioning to hours days
2 weeks
Days to
weeks
Hours to
days
Hours to
days
Hours to
days
Gravitant-enabled Multi-Cloud Management
Weeks saved = more Revenue
earned
An ideal broker compresses the entire lifecycle and
automates the management of the cloud supply chain
> Nine
month
s
~ Six
month
s
< One
month
- 19. Proprietary and Confidential, Copyright © 2013 Gravitant, Inc.
We help you make money from the cloud
Captured cloud infrastructure
spend
Make consumption of your
managed services easier
Improve your customers’
experience
Outpace your competition by
satisfying new customer needs
Gravitant allows you to provide a suite of integrated IT-as-a-Service products with a
Unified Services Delivery Platform that harnesses the full potential of cloud and
managed services.
- 20. Proprietary and Confidential, Copyright © 2013 Gravitant, Inc.
Case Study: Top 25 WW System Integrator
The New SI Business Model
CIO/CFO CTO/IT Architect Procurement Sys Admin/IT
Ops
Dedicated Cloud Services Brokerage for Enterprise IT
3rd Party
Public Clouds
Managed
Performanc
e
Monitoring
Cloud
Application
Integration
Third-party
Managed Services
SI Cloud/Managed/
Consulting Services
Volume discounts from CSPs
7-9% markup for management
services
SaaSIaaS PaaS
Managed
Security
Services
Cloud App
Consulting
Managed
Backup
Service
Hosted
Private Cloud
Unified Services Delivery
Platform
(managed by System Integrator)Gravitant
cloudMatrix platform
- 21. Proprietary and Confidential, Copyright © 2013 Gravitant, Inc.
Gravitant Market Experiences
With Channel Partners
Cloud services brokerage optimized for state and local
governments and US FED agencies that offer affordable and
manageable hybrid cloud computing solutions.
Cloud services brokerage (CloudCuity) for US FED agencies;
awarded Network Centric Operations Industry Consortium
contract (geospatial applications)
Service delivery platform for public cloud infrastructure and
its managed and consulting services for mid-market
enterprise customers
- 22. Proprietary and Confidential, Copyright © 2013 Gravitant, Inc.
Full Service Cloud Services Broker
Dedicated implementation of cloudMatrix platform
Profile: larger channel partner with significant managed and
professional cloud services offerings
Benefits
• Highly customizable implementation that provides differentiation
• Greater granularity to broker business management
capabilities: pricing engine and business reporting
• Better integration with channel partner’s IT and business
systems
• Easier inclusion of channel partner’s services in main catalog
• Better longer term profitabilityà software-like margins
Licensing Model
• Annual fixed software license
• Per-use software license that includes volume discounts
- 23. Proprietary and Confidential, Copyright © 2013 Gravitant, Inc.
Cloud Services Broker Reseller
CSB-as-a-Service Channel Partner – NEW!
Profile: mid-sized channel partner with lower upfront
investment capability
Benefits
• Lower initial investment to become a CSB
• Simpler marketing and sales: resale of defined
and standardized packages
Reseller Terms
• Resell margins of ~15-30% on various packages
• Monthly “franchise” fee that supports channel
partner’s enablement to become a CSB
Currently accepting applications for our Early Access Program through October 15th
Go to www.gravitant.com/CSBaaS to apply
- 24. Proprietary and Confidential, Copyright © 2013 Gravitant, Inc.
Cloud creates the opportunity for SIs to become integrated ITaaS providers
Today
Risk of Being Left Out
• One third of revenue at risk to CSPs; potential for
greater customer loss
• No capability to meet customers’ cloud needs (e.g.,
no cloud-centric design)
• Less ability to attach managed services
• Uncertain demand creates risk for cost basis and
profitability
MSFT
SAP
ORCL
IBM
HP
VMW
CSCO
Solution
Design & Delivery
System
Integrator
Biz
Units
Public
Cloud
Managed
Services
Yesterday
The Trusted Advisor
• 30-45% margin business
• Deliver custom integrated on-premise solution
stacks with attached managed services
• Build ahead of anticipated demand
• Improve cost basis by scaling demand and improving
processes over time
MSFT
SAP
ORCL
IBM
HP
VMW
CSCO
Solution
Design & Delivery
System
Integrator
Biz
Units
• >25% arbitrage by consolidating customers’ public
cloud spend; participate in fast growing IT category
• Seamlessly combine cloud services with managed
services into unique & integrated ITaaS offerings
• Better customer experience
MSFT
SAP
ORCL
IBM
HP
VMW
CSCO
Solution
Design & Delivery
System
Integrator
Biz
Units
Public
Cloud
Managed
Services
Tomorrow
Integrated ITaaS Provider
- 25. Proprietary and Confidential, Copyright © 2013 Gravitant, Inc.
Gravitant is garnering significant industry recognition
10 Tools to Avoid Cloud Lock-In
“Enterprise clouds are more attainable with
solutions like Gravitant’s cloudMatrix”
-Wayne Pauley, Enterprise Strategy Group
“Gravitant cloudMatrix helps IT take advantage
of the transformational aspects of cloud
computing by enabling a methodical yet agile
approach to end-to-end IT management.”
-Paul Burns, Neovise
As both an enabler and a cloud brokerage,
Gravitant pulls together a number of the
capabilities that IT organizations, VARs and SIs,
and public cloud providers can use to extend the
value of their offerings.
-Daryl Plummer, Gartner Research