BaaS Afdel

Business as a Service
Laurent Glaenzer
samedi 26 septembre 2009

€10B in 2009
40% CAGR
75% of Companies use one
application in SaaS

In 2010,
45% of Companies will spend
> 25% of their IT budget on SaaS
compared to 23% today


New Internet Bubble?
Massive & global opportunity
Very fast growth
Viral and ground-up expansion
Capital available for SaaS players
Many ill-deﬁned business models


Software as a Service Infrastructure as a Service
Any application Server Virtualization
licensed for its usage Storage Virtualization
on demand (mostly Advanced lease
over the web) infrastructure (pay per use)


New Way of Buying
New Way of Selling


Customer View
Pros Cons

Lower cost Higher dependency on
Pay as you go provider
Zero Capex Security/confidentiality
No or minimal IT Design limitation
resources
Faster time to use Performance
Flexibility/scalability Offline access


SaaS/Cloud customers
New
Customers
SaaS/Cloud
20 % is
Shifting a new application
Customers for the Company

SaaS/Cloud
replaces 80 %
existing applications
(mostly on-premise)


Business Development

Large
Companies

Mid
market
2008
2009 SME
2010 Soho
2011
2012


Disruptive for Customers
Acknowledge the beneﬁts for their own business
compare to existing solution
Decision Pattern

Support the idea of an externally hosted model
Deﬁne what to do with existing assets (save waste)
Accept transition costs + workload
Check possibility of changing budget allocation from
Capex to Opex


Disruptive for ITC Channels
Long customer decision cycles
IT
Require market expertise
Resellers
Revenues cannibalization risk

Limited room for IT services (design)
Revenues cannibalization risk Service
Limited presence in SME Integrators

Require market expertise
Limited IT knowledge Telcos
Lack of agility


Time to rethink
IT Distribution


Think beyond the box
Find two ways of
connecting the 4 dots
with 2 lines only


Think beyond the box

1

2

Converting
Channels

Creating
Channels


IT Resell Channels
Established in the 80s to resell PCs and on-premise solutions
Involved in middleware services (i.e: maintenance)
Well known by IT and purchase departments

Interested Not interested

Recurring revenues Low revenues
Hype Requires market
Customer request expertise

Defend installed base Cannibalization risk


Motivate IT Resell Channel
Channel proposal to be at least as
rewarding as infrastructure + on-
premise software
(ie: extra services)

Remuneration scheme to be rewarding
at customer contract sign off

Identify business for them and coach
their business development efforts


LNA
Infrastructure reseller (PC, Printers, on-premise
software, networking)
Focus on service business (middleware,
virtualization,...)
Created a SaaS Department to chase
incremental business


Systems Integrators
Established in the 70s with the emergence of IT
Involved in IT design solutions and organization issues
Well known by CEOs, CFOs and ITs


IT Services (solution Ready made solutions
design, organizations) Low revenues
Hosting/branding Little room for services
applications Cannibalization risk


Motivate System Integrators
Channel proposal to be integrated in a
broader service proposition to
customers

Possibility to host application or
customer data for the SI to propose
outsourcing package

Solid technical interface


Example Cap Gemini
Pegasystem is a Business Process Management
application provider
Has cooperated with CapGemini to launch a
new «BPM as a Service» platform
Beneﬁts for CapGemini: sell services and
recurring revenues
Dedicated Cloud Computing department at
CapGemini


Telcos
Long time established Companies
Radical portfolio extension since the Internet appearance
Well known by Purchase dpts and more and more IT

Portfolio extension
Aligned with business Requires IT knowledge
model Disruptive for IT
Data & application decision makers
hosting


Motivate Telcos

Possibility for the Telco to host
application or customer data (branding
option)

Solid on-boarding program for sales &
technical teams

Dedicated teams to do out-band
prospection


Example BT
Porfolio expansion
through a multi
solutions offering
Data/Applications
hosted by BT
Complementary to
broadband internet
offering


Vertical Channel
Need
Identiﬁcation
Vertical
Channel

Point of Service
Customer purchase Provider


A Massive Presence
IT Companies Business
Resellers Services
Integrators Companies

120 000 Companies* 1 800 000 Companies**

(*) EMEA Source Compubase
(**) Western Europe Source IDC


Services categories
Accounting
Collaboration Sales & Marketing Manufacturing HR
Finance/Insurance
Business Marketing Outsourcing HR consultants Accounting
consultant Agencies services Companies
Business
Marketing Training Business Consultants Business
agencies Companies Consultants Consultants
Accounting
Accounting Business Companies
Companies Consultants


Non-Contractual Resellers
Role Compensation

Referral • introduce the product to customer • 10% discount
• register the customer • no upfront payment
• introduce the product to customer • 20% discount
Interface • register the customer • no upfront payment
• invoice the customer
• introduce the product to customer
• 30% discount
Facilitator • register the customer
• Online training
• invoice the customer
• no upfront payment
• train the customer


Vertical Channel Platform


Business Services
Huge variety of Companies
90% between 1-10 employees (many free-lance)
In all businesses


Portfolio extension Certification/ upfront
Services opportunity contract

Recurring model Complicated process
Credibility Technical involvement


Motivate Vertical Channel

Turnkey solutions
Hassle free resell platform
Direct customer support/hot
line
Room for consulting services


Example Lixao
Communication / Web design agency
Mostly involved in communication
design and web development for
SMEs
Has added Emailing, data hosting,
collaboration tools for their customers
Beneﬁts: tracking their customer
evolution and keep the conversation
open


Example Accounting
Accounting Company with 130
employees
Has never been involved in
reselling IT equipment or software
Often asked advices by SMEs
without IT management
Would consider including SaaS/
Cloud solutions in their offering


Aggregators
Applications
Aggregators Channel
Providers

Application
Hosting
Customers
Data
Hosting
Servicing
Resellers
(billing)


Aggregators
Mostly startup Companies
Various business models
Various services offering


Solid value proposition
Room for hosting No markup possibility
application & data
Recurring model


Motivate Aggregators
Make sure there is room in
your business models for
them to provide: access to
speciﬁc channels, customers
or complete your service
offering
One on one negotiation


Example Revevol
Consulting Company assisting large
Companies in their IT decisions
Becomes involved in reselling IT solutions
with the Cloud Computing
Signed agreements with several SaaS/
Cloud players including Google Aps
Just bid with Valeo for the installation of
30 000 users with Google offering


The new channel map
Converted Channels Vertical Channels

IT Channels Consultants

System Integrators Accountants

VARs Marketing Agencies

Telcos SaaS Resellers/Dist

OEMs Application Hosting

Direct Data Hosting

Direct Play Aggregators


Don’t push
on a rope


Demand Demand
Fulﬁlment Generation


Fulﬁlment vs Generation
Demand Fulﬁlment Generation Comments

Full dedication
IT Vendor direct ***** ***** Limited capacity

Great coverage
IT Vendor Channel **** * Limited mindshare

Good coverage
Integrators *** *** Good push

Proactive demand
Vertical Channel * **** No supply chain


There is no perfect channel

There is only a perfect balance

Vitaminize your channel

Dealing with complexity
Expanding to Expanding to US How to get
channel loyalty?
Europe How to compensate
the channel? How to reach
Converting channel or
resellers?
Direct or Indirect?
creating channels? How to build a platform
for vertical resellers?

How to get reseller How to train
commitment?
resellers?
How to follow up their
business plan? How to negotiate a
contract?


Recruiting and Developing Channels
for IT Companies
in EMEA and US


Large and Medium IT
Companies

Small IT Companies &
Start ups

SaaS & Cloud Computing
Companies


Channel Recruitment and
Management

Business Channel Channel Channel Channel
Identiﬁcation Framework Recruitment Ramp Up Management


Channel Management Training
Senior Business Management
Channel Account Managers

Channel Performance Enhancement
Channel Benchmarking
Channel Business Coaching
Channel Social Media


Roland Adoflsson
Thierry Ghenassia
Experience HP, 3Com, Startups
Specialty: Telecom, Network,
Your extended team
Experience Avaya, others General IT
Specialty: Telecom, General IT, software Geography: EMEA Gaelle Hunt
Geography: EMEA Location: France Experience Apple, EFI, startups
Location: UK Specialty: Software, General IT, Software
Geography: EMEA, Global
Laurent Glaenzer Location: France
Heather Margolis
Experience Dell,
Specialty: Cloud/SaaS, General IT, Social
Experience HP, Autodesk
Specialty: Cloud/SaaS, General IT,
Software
200+ years
Geography: EMEA Eric Bessone
cumulated
Networking, Web
Geography: US Location: France
Experience Autodesk, others
Location: Boston US Specialty: Software, Cloud/SaaS, General IT
Geography: EMEA

experience in IT
Location: France

Hans Gerke

Channel
Experience Sun, Apple,
Xavier Olivella Specialty: Cloud/SaaS, General IT, Software
Experience HP, Autodesk, others Geography: EMEA, Global
Specialty: Software, General IT, Printing Location: Germany

Management
Geography: EMEA
Location: Spain Gianni Graziani
Thomas Baur
Experience Apple, Autodesk,
Experience Xerox, Techdata,, Autdesk,
others
Specialty: General IT, Software
Specialty: Software, General IT
Geography: EMEA
Geography: EMEA, South Europe
Amar Kabli Location: Germany
Location: Italy
Experience Orange, Autodesk
Specialty: Software, Cloud/SaaS, General IT
Geography: EMEA, North Africa Philippe Romascano
Location: France, Algeria
Experience HP - Verious entities
Specialty: Software, General IT
Geography: Middle-East, Africa, Eastern
Countries
Location: Switzerland


Scalability
InHouse Lemon Operations
300
300

225

150
150

75

50 80 0

1 Country
2 Countries


Agility

0 3 6 9 12 Months

12

3


Expertise

0 1 2 3 Years

NOW


Control
Are we on Full business
Sales & track?
Inventory real time visibility

Actual
Results &
Computer & Co Customized No infrastructure
View
Forecasts to manage
Units & J F M A M J J Marketing &
Revenues Units Revenues ROI SaaS application
Product line view
Marketing programs
Company
with access from
Directory

Reseller or Consolidation
directory and SmartPhone &
visit history
Channel view Web


Freedom

All methodologies are under
Common Creatives licence
(free to use, not to resell)

Probation period

Termination at any time


Vitamins

We love making
your resellers
fan of you

Vitaminize your channel!

Thanks!
Laurent.Glaenzer@Lemon-Operations.com


BaaS Afdel

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