In this session, you learn about the evolving landscape for AWS Partners capable of providing a full lifecycle experience for their customers, from plan and design to build and migrate to run, operate, and optimize. We look at examples of success with Managed Service Provider (MSP) Partners and their customers. Partners gain a clear view of new ways to optimize their AWS business, innovate on behalf of their customers, and improve their long-term profitability.

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Build a Profitable and Customer-Centric
Next-Gen MSP Practice
Barbara Kessler
Global Programs Leader
G P S B U S 2 0 5
Thomas Robinson
Partner Solutions Architect
Shane Day
General Manager
Arq Group

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Agenda
Next Generation Managed Services
MSP opportunity
Partner success story: Arq Group
MSP optimization
Getting started

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Evolution of managed services
Traditional MSP Next Generation MSP
Run and operate focus Design, architect, automate
Hardware-based solutions Cloud and software-based solutions
Centralized operations Distributed operations and resources
Device-based SLAs Solution/application-based SLAs
Complex, manual change management DevOps, CI/CD, self-healing solutions, infrastructure as code
Static monitoring with fixed thresholds Dynamic monitoring, anomaly detection, machine learning
Security risk mitigation Security by design, continuous compliance
Outsourcing vendor Trusted advisor and partner

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Evolution of managed services

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MSP partner opportunity
57%
Managed services gross margin
50%
Practice gross margin
35%
Practice operating margin
3%
22%
39%
22%
7%
1% 6% Strategy, planning, assessment, and advisory
Initial design, rebuild, migrate, and deploy
Follow-on design, rebuild, migrate, and deploy
Next-generation managed services
AWS resale and business support
Third-party application resale
Value-add IP
Three-year
practice
gross
margin
breakdown
Forrester Consulting: The Business Case for Next-Generation AWS MSPs: A TEI Study for AWS APN Partners, 2017

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MSP partner investments
Incremental
staffing
38%
Training
2%R&D
16%
Marketing
19%
SG&A
25%
Total three-year investments
Total benefits
Total costs
Initial Year 1 Year 2 Year 3
Payback
(12–14 months)
Payback period for initial investment of $1.3M
Forrester Consulting: The Business Case for Next-Generation AWS MSPs: A TEI Study for AWS APN Partners, 2017

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11. Unleashed.
Possibility.
Shane Day
GM – Cloud & Data Analytics

12. Evolution of Next
Generation MSP
From a melting pot of individual
businesses to a single, united brand.
From an array of overlapping skills and
offerings, to a complete, end-to-end
solutions provider.
From an infrastructure-based company, to
a strategic digital partner offering Next
Generation Managed Services.
From a ground-breaking past, to a trail-
blazing future.
From Melbourne IT
Group to Arq Group.
12AboutARQGroup

13. Consumer
experiences
We’re Australia’s leading experts in mobile, data & analytics, and cloud –
capable of defining, designing and creating products that solve problems on
a large scale.
13AboutARQGroup

14. 14CaseStudy|Landmark
As Australia’s largest distributor of fertiliser and farming
merchandise, Landmark creates and digests a lot of data.
Yields, to fertiliser and chemical data, to soil and tissue
samples and mapping data across multiple sources.
Landmark couldn’t get the complete picture of their
operations, seriously limiting their capacity to make strategic
and tactical decisions.
Enter Arq.

16. Where we’ve come from
17AboutARQGroup
• Born in the .com.au boom of the mid-90’s
• Australia’s largest provider of IaaS services
• Traditional Managed services for compute, network, and
storage
• Value proposition focused on price point and scale
Pre
2010

17. Disruption & Decisions
18AboutARQGroup
• Massive Market disruption
• Clients were seeing their customers
change
• It was time for us to change
2011-
12

18. Journey to a Next Gen MSP
19AboutARQGroup
• Focus on our core competency – market facing, web
scale, digital platforms
• AWS was our hyperscale cloud partner choice
• Become a Next Gen MSP and change
• AWS Foundation Partner with AWS for Sydney
Region
2012 - 2014

19. Becoming a NextGen MSP
• Next Gen MSPs provide the differentiated
heavy lifting
• Customers asking for broader Digital
Capability
• Customers need to make informed
choices quickly
20AboutARQGroup
2015/2016

20. Managed Service Partner
21AboutARQGroup
• Collaborate with customers to develop
Managed Service offerings across all our
capabilities that deliver value
• Partner with AWS to grow our business
capabilities
Today

21. Evolution of Next Gen
22AboutARQGroup
• Fundamentally different Managed Services
- Continuous Value Delivery
- Full stack / product management across all
capabilities
- Platform, configuration, code & product
management
• Structured Innovation Programs
- Design led managed service approach
- Experiment and learn culture
- Awarded AWS Innovation Partner of the Year, Asia
Pacific, 2018 and AWS Innovation Partner of the
Year, Australia, 2018
Tomorrow

22. 23AboutARQGroup
• Next Gen is different – its more than DevOps
• Understand your customers customer to
understand their business
• Leverage the capability of AWS early to allow
focus on differentiated heavy lifting
• Innovate and deliver Continuous Value at pace
What we’ve learned

23. “Our partnership with ARQ Group
provides confidence that our digital
solutions are in a safe set of hands
allowing me to focus on our Customers,
our Franchisees and our Business”
Brad Dight, Head of Technology, Minor DKL
24AboutARQGroup

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Optimizing your MSP practice
Efficiency Breadth of services

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Common tasks
Patch
management
Scheduled
maintenance
Configuration
management
Inventory
management
Auditing

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Increasing performance efficiency
Tooling costs Automation

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AWS Systems Manager features
Operational tasks AWS service features
Remote instance access AWS Systems Manager Run Command
Patch management AWS Systems Manager Patch Management
Scheduled maintenance AWS Systems Manager Maintenance Windows
Configuration management AWS Systems Manager State Manager
Inventory management AWS Systems Manager Inventory
Auditing Amazon CloudWatch Logs

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AWS Systems Manager benefits
No cost
Works on AWS, on-premises, and in other clouds
Seamless integration with other AWS services
Services are available through the console as well as SDK and CLI for automation
Integration with existing tools like Ansible, PowerShell DSC, and Chef InSpec
SOC, ISO, and PCI compliant and HIPAA enabled
Supports tagging
Access controlled by IAM
Free
AWS Systems Manager

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Expanding breadth of services
Identifying customer needs
• How does the customer want to interact with your services?
• Where could the customer benefit from refactoring or replatforming,
rather than simply rehosting?
• Does the customer have a solution in place for protecting their
applications from external and internal threats? Is that solution cloud
ready?

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AWS security services
Amazon GuardDuty Amazon Macie Amazon Inspector
AWS Config Amazon CloudWatch
Events
AWS Systems
Manager

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Adding customer value with security services
AWS provides security services that make it easy to identify security and
compliance events within AWS accounts
Customers need help responding to these events

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Managed security services
Amazon
Inspector
AWS Config
AWS Trusted
Advisor
Amazon
Macie
Amazon EC2
System Manager
Amazon
CloudWatchAWS Shield
Amazon
GuardDuty
Manual
remediation:
Automated
remediation:
AWS Lambda
Security operation center
Events

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AWS GuardDuty features & benefits
Analyzes CloudTrail, VPC Flow Logs, and DNS Logs
Reconnaissance - Detect external threats probing your security or AWS API
Account Compromise – Detect anomalies in how your AWS credentials are used
Instance Compromise - Identify potential malware or cryptocurrency traffic
Data Exfiltration – Analyze DNS requests
Automated response through CloudWatch Events
One-click deployment
Continuous Monitoring with no added complexity
30 Day Free Trial
AWS GuardDuty

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Amazon GuardDuty events
Threat detection types:
Reconnaissance
Instance compromise
Account compromise
Data sources Findings
Amazon
GuardDutyVPC flow logs
DNS Logs
AWS CloudTrail
Events
High
Medium
Low
Respond
Threat intel,
ML/AI
anomaly
detection

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Automating responses with GuardDuty
AWS Lambda
Function AWS WAF WAF Filtering RuleAmazon GuardDuty
Amazon CloudWatch
Events
Amazon SNS
Amazon
DynamoDB
VPC network
access control

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APN Partner enablement
Building the business
Join the
APN
Understand
benefits &
requirements
Training &
certification
Build a
business plan
Define &
differentiate
your offering
Marketing
opportunities

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Microsoft
workloads
Blockchain
HPCEnd-user
computing
Migration
Financial
services
Serverless
Database
Contact
center
Machine
Learning
IoT
Navigate program
MSP – coming in Q1 2019!
DevOps

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Differentiation programs

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MSP Validation Checklist
Business health & management
Solution design
Infrastructure & application migration
Security managementBilling & cost management
Process & cost optimization
Customer obsession
Service desk & customer support DevOps & automation
SLAs & reporting

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AWS MSP Partner Program

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Key takeaways
Visit AWS MSP Program webpage
Read “The Business Case for Next-Gen AWS MSPs”
Review AWS MSP Program Validation Checklist
Work with your AWS Partner Manager
Contact the AWS MSP team: aws-msp@amazon.com

45. Thank you!
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