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Challenges of Achieving Scale – Lessons learned after 10 Years as a Cloud Provider - Advice from Global Micro - Microsoft Hosting Partner of the Year 2010 and 2011. Presentation by JJ Milner www.globalmicro.co.za. Follow me on twitter @jjrmilner
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Building your own Cloud
Embassy
Presented by JJ Milner Managing Director of Global Micro
Microsoft Hosting Solutions Partner of the Year
2010 WINNER
What is cloud?
∙ Cutting through the hype:
To a managed service provider, cloud differs from the traditional
approach to outsourcing
• On demand provisioning
• Pay as you go – pay as you grow
• Much lower cost as economies of scale are assumed
• Near infinite capacity
∙ Cloud is not virtualisation
∙ Cloud is not finance / off balance sheet financing
Challenges of Achieving Scale –
Lessons learned after 10 Years as a
Cloud Provider
∙ You need a minimum of 100 000 Users to break even
∙ New entrants to the market have a lower cost base
∙ Disruptive pricing can invalidate your assumptions
Lesson #1
Organic Growth is not an option
∙ You have to build redundancy for every possibility
∙ 100 000 + users means that every one of your
assumptions will be tested 24 x 7 x 365
Lesson #2
Life Happens
∙ Services need to be mature when they are launched
∙ Learning on job means death by a thousand needle pricks
∙ Don’t Bluff, the Cloud Services will expose your weaknesses
Lesson #3
It takes time to build immunity
Show me the money
The rule of 78
Question
If you add R1,000 in new recurring business every
month, how much will you bill by the end of year 1?
Answer
R78,000
Show me the money
The rule of 78
Question
If you add R1,000 in new recurring business every
month, how much will you bill by the end of year 3? Answer
R666,000
You’re going to be rich! ∙ Where do I start? What’s the catch?
• Upfront Investments are considerable
• Any delay in growth means you are un-profitable
• A new competitor can enter the market and change the rules
• Margins are thin… Pennies only count when you have
hundreds of thousands of them
∙ Don’t build your own • Take a predictable margin (profit every month)
Become a cloud Ambassador in your own
Cloud Embassy
◉ Bring together to best cloud offerings – but keep it simple
○ 73% of customer’s IT stack today are based on Microsoft Technologies
○ Using the MS as cornerstone of your cloud practise, means easier migration and no learning curve for your customers
◉ Provide a single point of contact to your customers for all vendors, services and products
◉ Provide one statement / bill each month for all
◉ Go beyond the router
○ Leverage cloud based services to support
your customer’s on premise requirements
today.
Cloud is in Vogue - Tourism is booming
◉ The Cloud is a competitive landscape so make sure you are equipped to
market yourself effectively
○ Invest in Search engine Optimisation and speak to a wider audience
◉ Vanilla or “Good enough” offerings are a no-go
○ Your services must provide features relevant to local customers
○ France is not the same without Cheese and Wine
… So add your own flavour to the mix.
Protect your sovereignty
◉ The cloud means everyone can talk to your clients and invite them to visit
their Cloud Offerings
◉ Offer a premium Service Level Agreement to protect you and your customer
◉ Set your own prices
◉ Protect your Territorial Waters
○ Keep your Service Providers Honest
○ White Label Everything
○ Provide a single sign on experience
○ Register All your Leads
Look for a Tier 1 Hoster that provides:
◉ The complete Microsoft Communications Stack (Exchange, Sharepoint, Lync)
◉ Hosted backup solutions
◉ White label offering – so that you can promote your brand and own the client
◉ Automated Provisioning and administration portal for you, and your customers
◉ Integrated ticketing to your help desk
◉ Syndicated website SEO optimised website
content and brochures with your branding
and contact details
Look for a Tier 1 Hoster that provides:
◉ Lead registration
◉ A partner manager who will ride along to customers to help you close deals
◉ A white label recurring billing solution
◉ White label RMM tools that interface with SCOM
◉ SLA with penalties on every service – this is your name on the line
◉ An opportunity to set your own prices.
Learn More
◉ Visit our Website
○ http://www.globalmicro.co.za/PartnerPrograms
◉ Contact JJ Milner
○ jj@globalmicro.co.za
○ +2783 602 6601
© 2010 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be
registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date
of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a
commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of
this presentation.
MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS
PRESENTATION.
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