Slides from IDC analyst Darren Bibby and Microsoft partner Alex Brown, CEO of 10th Magnitude, on how partners can build successful cloud practices with Microsoft Azure.

1. Darren Bibby, VP Channels and Alliances Research, IDC
Seth Varty, Sr. Business Planner, Microsoft Azure, Microsoft
Alex Brown, CEO and Founder, 10th Magnitude

3. Successful Cloud Partners 2.0
Darren Bibby
VP, Channels and Alliances Research
IDC

4. IDC Study: Successful Cloud Partners 2.0
 Follow-up to 2013 report
 Survey of over 700 solution providers
worldwide
 In-depth interviews with 20 leading Cloud
partners
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mspartner.microsoft.com › Home › Solutions

5. IDC Study: Successful Cloud Partners 2.0
Contents:
 IDC Cloud Market Overview
 Cloud Partners Continue to Outperform
 Planning For Your Cloud Business
 Your Cloud Business Strategy
 Your Cloud Sales Strategy
 Your Cloud Marketing Strategy
 Your Cloud Managed Services Strategy
 Your Cloud Intellectual Property Strategy
mspartner.microsoft.com › Home › Solutions

6. The Cloud Market is Growing Fast
 Public IT cloud services spending reached $47.4
billion in 2013 and will reach over $107 billion in 2017,
five times the growth of the IT industry as a whole.
 At 57.9%, SaaS will remain the largest public IT cloud
service category through 2017.
 Emerging markets will grow 1.8X faster than
developed markets. By 2017, emerging markets will
account for 21.3% of the public cloud opportunity.
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7. Cloud Partners Continue To Outperform
 Cloud-oriented partners continue to outperform their peers.
 Performance related to cloud – but also that that top performing solution
providers have been taking on cloud in their businesses earlier, and
adopting it faster, than their peers
 Successful partners see critical trends first.
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8. Cloud Partners Continue To Outperform
 Cloud-oriented partners continue to outperform their peers.
 Performance related to cloud – but also that that top performing solution
providers have been taking on cloud in their businesses earlier, and
adopting it faster, than their peers
 Successful partners see critical trends first.
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9. Planning for Your Cloud Business
 Endure short term pain for long term gain
 Importance of Recurring Revenue
 Don’t wait to adopt cloud
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10. Cloud Changes
The Selling Relationship
Stock Sell Use

11. Combined vs. Separate Sales Teams
Separate Cloud Group Integrated Group
Integrated Sales
Traditional Sales
Cloud Sales
Internal Focus – Eliminate Conflict External Focus – Offer Choice
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12. Integrated or Separate Company
Structures
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13. Sales Compensation
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14. Cloud Sales Strategy
 Land and Expand
 Profile of the New Salesperson
 Learn to Speak to LoB
 You may not have to change everything
 Reduce Cost of Sale
 Take Your Customer to the Cloud in Steps
 Take FUD Offline
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15. Your Cloud Managed Services Strategy
 Increase gross margin through managed
services
 Create efficiencies in your managed services
 Retainer hours, Ongoing agreements
 Be your customers’ CIO or IT department
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17. How to Transact with Azure:
You and Your Customers
Microsoft has a few different options for Partners and Customers to
purchase Azure and use it for their own needs or in support of their
customer’s
• www.Azure.com: Pay as You Go or make a monthly/annual commitment
• Enterprise Agreement: Make an upfront purchase or pay quarterly as you go.
Once you’re set up with access to Azure, there are a few scenarios that
come to life:
1. Build and manage applications for your customers
2. Help customers manage their own Azure environment(s)
3. Support a customer’s migration of Enterprise environments into the cloud

18. How to Transact with Azure:
Own your own EA
Scenario: Customer needs a small LOB app built, and wants 10th
Magnitude to keep it running for them.
My Response: I’ll have the app built for you in a month, and then will
charge you every month to keep it running.
To do this I need:
$30
$20
$10
$0
1 person 1 month
Month 1 Month 2 Month 3 Month 4 Month 5
Thousands
Support
Azure MSP
Development

19. How to Transact with Azure:
Customer Pay as they Go
Scenario: Customer wants to migrate their Dev/Test environment to
Azure to see how it goes. They aren’t sure if they’ll leave it there.
My Response: No problem, it’ll take us a few days to get the
environment moved. Purchase Azure on your credit card for the
moment, so there is no need to make a commitment. We’ll provide on-going
operations support so your team remains focused on development
To do this I need:
$10
$5
$0
1 person 1 week
Month 1 Month 2 Month 3 Month 4 Month 5
Thousands
Operations Support
Development

20. How to Transact with Azure:
Influence Customer to have their own EA
Scenario: Customer wants to migrate and run their datacenter in Azure.
My Response: Let’s select and migrate your workloads over time so you
can build the processes needed to run in the cloud. We’ll size the EA
you’ll need to have in place to support this and provide maintenance for
each server
To do this I need:
$60
$40
$20
$0
3 engineers 5 months
Month 1 Month 2 Month 3 Month 4 Month 5
Thousands
Server Maintenance
Migration