“Yes, I am a Reseller! But, Where’s the Margin?”
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“Yes, I am a Reseller! But, Where’s the Margin?” Every hosting company wants to find their path to success in an increasingly crowded, global, and commoditizing market. With more and more companies getting on the hosting bandwagon, how do you differentiate yourself? How do you bring in that extra bit which will bring your customers the value that they are looking for? In this session, the speaker shares multiple scenarios and best practices on how hosting providers can go beyond just being just resellers to becoming value partners, and in the process build up their margins. Lemanto Siantar Channel Development Manager Softlayer Technologies, an IBM Company
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“Yes, I am a Reseller! But, Where’s the Margin?”
- 1. CONFIDENTIAL INFORMATION • SOFTLAYER, AN IBM COMPANY Yes, I am a Reseller. But, Where is the Margin? Lemanto Siantar Channels Development Manager SoftLayer
- 2. CONFIDENTIAL INFORMATION • SOFTLAYER, AN IBM COMPANY Traditional Reseller Model PORTFOLIO MARGIN ON INFRA MARGIN ON MAINTAINENCE Product from Company A RESELLER Product from Company B In-house Infrastructure Partner Infrastructure LICENSE FEES LICENSE FEES INFRA COSTS MAINTAINANCE COSTS MEMBERSHIP FEES MARGIN SERVICES MARGIN SERVICES MARGIN TOTAL ACQUISITION COST ONE GIANT MARGIN CUSTOMER INITIAL DISCOUNT LOYALTY/ NEW CUSTOMER REDUCTION COMPETITOR ADVANTAGE DISCOUNT ANNUAL CONTRACT DISCOUNT SERVICE DELIVERY COSTS UNEXPECTED MAINTAINENCE COSTS ? ?
- 3. CONFIDENTIAL INFORMATION • SOFTLAYER, AN IBM COMPANY Traditional Reseller Model PORTFOLIO MARGIN ON INFRA MARGIN ON MAINTAINENCE Product from Company A RESELLER Product from Company B In-house Infrastructure Partner Infrastructure LICENSE FEES LICENSE FEES INFRA COSTS MAINTAINANCE COSTS MEMBERSHIP FEES MARGIN SERVICES MARGIN SERVICES MARGIN TOTAL ACQUISITION COST ONE GIANT MARGIN CUSTOMER INITIAL DISCOUNT LOYALTY/ NEW CUSTOMER REDUCTION COMPETITOR ADVANTAGE DISCOUNT ANNUAL CONTRACT DISCOUNT SERVICE DELIVERY COSTS UNEXPECTED MAINTAINENCE COSTS ? ?
- 4. CONFIDENTIAL INFORMATION • SOFTLAYER, AN IBM COMPANY The New-Age Resellers PORTFOLIO Product from Company A RESELLER Product from Company B In-house Infrastructure Partner Infrastructure LICENSE FEES LICENSE FEES INFRA COSTS MAINTAINANCE COSTS MEMBERSHIP FEES MARGIN SERVICES MARGIN SERVICES MARGIN TOTAL ACQUISITION COST ONE GIANT MARGIN CUSTOMER INITIAL DISCOUNT LOYALTY/ NEW CUSTOMER REDUCTION COMPETITOR ADVANTAGE DISCOUNT ANNUAL CONTRACT DISCOUNT SERVICE DELIVERY COSTS UNEXPECTED MAINTAINENCE COSTS ? ? MARGIN ON INFRA MARGIN ON MAINTAINENCE CORE INFRASTRUCTURE PARTNER MARGIN SERVICES
- 5. CONFIDENTIAL INFORMATION • SOFTLAYER, AN IBM COMPANY Be a SaaS Provider – Increase your Scope COREINFRASTRUCTUREPARTNER SaaS Tool o Manage Your Infrastructure Beautiful Graphing Custom Dashboards API Management Website Monitoring Cloud Management Server Monitoring Advanced Alerting Full API Plugin Store Fully Hosted Monitor Everything
- 6. CONFIDENTIAL INFORMATION • SOFTLAYER, AN IBM COMPANY Master an Industry – Specialize a Niche Segment COREINFRASTRUCTUREPARTNER GAMING & SMARTPHONE APPLICATION DEVELOPERS Japan-based managed hosting service provider • Managed Hosting • Dedicated Servers • Cloud Servers • Network Integration
- 7. CONFIDENTIAL INFORMATION • SOFTLAYER, AN IBM COMPANY Host a Product – Manage the Environment Oracle ATG Commerce In-house Infrastructure CORE INFRASTRUCTURE PARTNER PCI Level 1 Compliant Hosting Provider • Oracle ATG Commerce Installation, Configuration and Maintenance • Oracle Database, JBoss Enterprise and RedHat Linux Enterprise Licensing • 24/7 Expert Support • 99.9% Uptime SLA • PCI Level 1 Compliant • Performance Tuning • Disaster Recovery • Content Delivery Network through Akamai, Limelight • ATG Development Server Only • Disaster Recovery Cluster (DR) • Hot-Hot Global Load Balancing • Migration • PCI Compliance Consulting • Scalability Services • Upgrades • Web Performance Package
- 8. CONFIDENTIAL INFORMATION • SOFTLAYER, AN IBM COMPANY Partner Type Definition Referral Program Are in a position to refer new hosting customers to SoftLayer: Business Partners receive monthly commission payments for referring customers to SoftLayer that result in a signed contract (10% year 1, 8% year 2, 6% year 3) Refer single or multiple accounts of at least $150 per month in customer billings. Referred customers sign directly with SoftLayer Examples include application developers, consultants, web designers, etc. Referral partners are managed by channel sales team Services & Solution Provider Program Buy IaaS offerings from SoftLayer at a discount (from 5 to 20%) Hosting may be resold or delivered as a component of the Business Partner’s overall solution. May or may not leverage SoftLayer’s brand. Is responsible for Level 1 Support. Examples are SIs, MSPs, Solution Providers, Distributors, and ISVs. Relationships are managed by the SoftLayer Channel Sales team Current Channel Programs & Definitions
- 9. CONFIDENTIAL INFORMATION • SOFTLAYER, AN IBM COMPANY SoftLayer - Global IaaS Leader Formed by 10 industry veterans in 2005 Model predicated on software-driven infrastructure Unencumbered by early-industry legacy restrictions Founding principles Innovation, Empowerment, Automation, Integration Acquired by IBM in July 2013 9
- 10. CONFIDENTIAL INFORMATION • SOFTLAYER, AN IBM COMPANY Cloud Infrastructure At Enterprise Scale BARE METAL SERVERS VIRTUAL INSTANCES Public CloudsHosted Hybrid CloudsHosted Private CloudsVirtual Servers Private Clusters STORAGE
- 11. CONFIDENTIAL INFORMATION • SOFTLAYER, AN IBM COMPANY 21,000 Leading-edge Companies Depend on Our Cloud Software as a Service Mobile & Communications WhatsApp Voxer Instapaper Yelp Social Games and Entertainment Hosting & Service Providers EnterpriseMarketing and Digital MediaPlatform as a Service
- 12. CONFIDENTIAL INFORMATION • SOFTLAYER, AN IBM COMPANY
Notas do Editor
- https://marketplace.ibmcloud.com/apps/340?restoreSearch=true#!features Server Density A SaaS tool to manage your infrastructure. Provision instances on the SoftLayer cloud. Monitor Linux, Windows, FreeBSD & Mac servers and check website uptime and response time.
- DataHotel Co., Ltd. (DataHotel), a Japan-based managed hosting service provider for mobile and smartphone application developers, has selected SoftLayer. as its cloud infrastructure provider of choice, in order to expand overseas delivery of “DATAHOTEL for App." IT infrastructure plays a vital role in sustaining a company’s growth as they expand into new markets. As such, organizations require a high level of support from their IT vendors as they expand globally to ensure that they can deliver stable services to their customers, keep costs low and maintain enough flexibility to adapt to rapidly changing business needs – regardless of where their IT infrastructure is physically located. With its flagship service, “DATAHOTEL for App.” DataHotel manages the IT infrastructure for gaming and smartphone application developers, allowing customers to focus on development rather than IT maintenance. As smartphone use increases world-wide, DataHotel provides a global IT infrastructure that can support application development and delivery for overseas customers, without subjecting them to performance and latency issues*. SoftLayer’s bare metal servers allow DataHotel to support its customers’ complex frameworks in a way that virtual machines could not. Further, the dedicated network and low latency that SoftLayer’s cloud provides allows DataHotel to maintain the security and performance that it needs to drive global expansion.
- Spark::red is a global PCI Level 1 compliant hosting provider specializing in Oracle ATG Commerce. They offer Oracle ATG Commerce hosting solutions for medium and large eCommerce businesses including Fortune 1000 companies. With full-redundancy at every layer, the most powerful servers, and the industry's most knowledgeable architects, Spark::red delivers exceptional environments in weeks, instead of months. The Spark::red Oracle Commerce Solution is a package that includes all required hardware and software installation, configuration, securing, tuning, monitoring and support (including deployments and integrations) as well as Oracle Database and JBoss licensing. As we strive to be a real technology partner for you we built our hosting solution around your business needs. Spark::red can grant you access to production systems allowing you to make changes to the website as needed. Features: Oracle ATG Commerce Installation, Configuration and Maintenance Oracle Database, JBoss Enterprise and RedHat Linux Enterprise Licensing 24/7 Expert Support 99.9% Uptime SLA PCI Level 1 Compliant Performance Tuning Disaster Recovery Content Delivery Network through Akamai, Limelight Services: ATG Development Server Only Disaster Recovery Cluster (DR) Hot-Hot Global Load Balancing Migration PCI Compliance Consulting Scalability Services Upgrades Web Performance Package
- Global Cloud Leader Created by 10 Industry Veterans – 18 years – 3 companies Started with one of the first mass market hosting companies in the world 1995 Dialup, hosting, domain registration Learned the value of automation Next moved to ne of the first mass market dedicated hosting companies in the world 1999 Colocation & managed services Learned how automation could enable faster provisioning SoftLayer We previously had seen how most customers were ordering the same products and services over and over, but did so in a custom way. They were all using the same x86 servers, firewalls, and load balancers, etc but in a custom deployment. We had the ability to created something new from blank sheet of paper – driven by customer demands and needs. Wanted to design something that at the time didn’t exist We decided to pre-build a standardized platform with an abstraction layer on top called IMS that allows us to sell infrastructure as service. Buy it buy the drink, only pay for what you used, and easily scale over time with price predictability We had to think differently about how we did things before to achieve the attributes our customers were looking for. Rack and stack servers differently Create a new complex network topology that didn’t exist Create a billing model to allow for monthly and hourly billing Ultimately SoftLayer would become one of the first (if not the first) cloud computing company in May 2005 - 12 months before our closest competitor – Amazon. Four Guiding Principles Innovation – “innovate or die” – SoftLayer’s fundamental operating mantra is to bring new technologies to market as soon as they become commercially viable Empowerment – complete transparency and control to the end customer. Our datacenter is your datacenter. We show customers everything. If you want the information its there, if not spin up your infrastructure and you are on your way. Automation – key takeaway today – automation / automation / automation – if it cannot be automated – it does not live within the SL platform. Automation; 1) reduces costs 2) improves efficiency, 3) improves time to market, 4) eliminates human mistakes and results in higher SLA Integration - hosting solutions traditionally have been disparate operating silos – SoftLayer offers a fully integrated approach from billing to service delivery delivered thru a single interface and API set. It also means building solutions that allow you to integrate your current infrastructure into the SoftLayer cloud.
- Global Cloud Platform SL is the ONLY cloud provider to offer bare metal, private clouds and public clouds in a single integrated environment. Bare metal – for I/O and proc intensive applications – Ideal for database and big data Lose 20-50% of horsepower if you virtualize Brings cloning flexibility of virtualization to bare metal with FlexImage Physical to virtual or vice versa Private cloud – Your hypervisor on our hardware Whatever hypervisor… we do not care Public cloud – virtual machines in a multi-tenant environment Flexibility and the fastest deployment Low management overhead as hypervisor is turned over to us Mix and Match all three technologies across multiple datacenters Largest and most sophisticated customers use all three Interconnected private network with no bandwidth cost Presented to you as if they were in the same physical rack Can share systems - firewalls, load balancers, SAN storage and backup All managed through the same UI or API
- Leading-edge Customers First 5 years – internet centric SMBs – born on the web and die on the web – revenues tied to platform Last 3 years – huge shift to enterprise or fortune 1000 – top 25 customer base rolled almost 100% Future – continue to service internet centric customers while services cloud demands of IBMs enterprise clients