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AN INTRO TO
Managed Technology-as-
a-Service (XaaS) Solutions
Why your service catalog needs managed XaaS solutions.
ICT Associates LLC
©2018ICTAssociatesLLC.Allrightsreserved. 1
Table of Contents 1. Impact of Digital Disruption……...3
Digital Disruption Business Outcomes
2. Managed XaaS Solutions………..6
Managed XaaS Defined Managed XaaS Benefits
The Role of The MSP Who Can Benefit?
3. Solution Design…………………..11
Design Considerations Design Components
4. Conclusion………………………..14
2
DIGITAL DISRUPTION
Technologytrendssuchascloudfirst,technology-as-a-service,theInternetofThings,dataanalyBcs,intelligentautomaBon,andtheon-demandeconomyarecausingdigitaldisrupBoninthemarketplace.ProductfeaturesarerapidlycommodiBzingandcustomersareincreasinglyconsumingtechnologyasaservice,payingonarecurringbasisonlyforthosefeaturesthatproduceongoingbusinessvalue.Thesetrendsarecompellingtechnologycompaniesandserviceproviderstocreatenewbusinessmodelsthatarehavingaprofoundimpactonrevenues,profits,organizaBonalcapabiliBesandthecustomerexperience.AstheindustryshiKstowardcloudservicesmodelsandenterprisesadoptanddeployhybridITinfrastructure,manyorganizaBonsarefacedwithadilemma:eitheradaptandembraceconsumpBon-basedeconomicmodelsorrisklosingrelevance,marketshareandrevenue.
Business Models Are Evolving
©2018ICTAssociatesLLC.Allrightsreserved.4
BUSINESS OUTCOMES
Theabilitytorapidlydefine,developandoperaBonalizenewservice-basedsoluBons(whichcanbecloud-basedoron-premiseandsingleormulB-tenant)iscriBcaltosuccessintoday’smarkets.ThisisparBcularlytrueformanagedtechnology-as-a-service(XaaS)soluBonsthatcombinetechnology,support,andprofessionalservicesintoaflexiblesubscripBonmodel. TechnologycompaniesandserviceprovidersmustbecapableofcreaBngandsellinginnovaBveofferingsthatincreaseadopBonbydeliveringimmediateoutcomesandbusinessvaluetocustomers.Inreturn,they’llposiBonthemselvestodeveloplong-termcustomerrelaBonshipsthatresultinexpandedsalesandrenewals.CreaBngthiskindofbusinesssuccess,wheretechnologycompaniesandserviceprovidersbuildofferingsthatarefocusedoneffecBveconsumpBonandbusinessoutcomes,requiresanewwayofthinking.�
New Offerings Must Deliver Business Value
©2018ICTAssociatesLLC.Allrightsreserved.5
MANAGED XAAS DEFINED
Commercialandgovernmententerprisesareeagertoconsumetechnologybasedonthefeaturestheyuse,payingonarecurringbasisaslongastheyconBnuetoreceivevaluefromthesoluBon.Asaresult,technologyprovidersarerecognizingthattradiBonalbusinessmodels,whichrequirecustomerstoassume100%oftheoutcomeriskwithupfrontCAPEXpurchases,aresuccumbingtoOPEXmodelsthatbundleproduct,support,andprofessionalservicesintoaflexiblesubscripBonmodel.Thesemodelsaretypicallyreferredtoasmanagedtechnology-as-a-service(XaaS)soluBonsandtheyincludehosBng,servicemanagement,operaBon,maintenance,support,upgrades,aswellasconsulBngservicesdesignedtoproducemeasureablebusinessoutcomes.ManagedXaaSsoluBonscanbeofferedasacloudsoluBon,hostedonpremiseatthecustomer’sdatacenter,ortheycanbeablendofboth(i.e.,hybriddeliverymodel).InaddiBon,managedXaaSsoluBonscanbesingleormulB-tenantdependingupontheservicedeliveryarchitectureandusecase.
A New Way To Consume Technology
©2018ICTAssociatesLLC.Allrightsreserved.7
MANAGED XAAS BENEFITS
Inarapidlychangingdigitalworld,productsarebecomingmorecomplexastechnologyprovidersaddfeatures.Asaresult,thegapiswideningbetweentechnologycapabiliBesandtheabilityofcustomerstoleveragethem.Customerssimplyaren'tabletorecognizethefullvalueoftechnologysoluBons.IfcompeBBvedifferenBaBonisenBrelyfocusedonfeaturesetandcustomersareunabletodealwithproductfeaturecomplexity,technologyproviderswillhaveissuesmoneBzingtechnologyunlessitcanbeconsumed“asaservice.”Herearesomeadvantages:• AbilitytoaligncostswithuBlizaBon(subscripBonpricing).• Abilitytorapidlydeploynewserviceswithcontrolledcostsand
minimumcomplexityandrisk.• Abilitytoscaleservicesup/downasrequiredbybusinessdemands.
• EliminaBonorreducBonofcapitalpurchases(CAPEX)andupfrontinvestmentsbyuBlizingoperaBonalexpensemodels(OPEX).
Advantages of Managed XaaS Solutions
©2018ICTAssociatesLLC.Allrightsreserved.8
THE ROLE OF THE MSP
InthemanagedXaaSsoluBonmodel,themanagedservicesprovider(MSP)—whethertradiBonalserviceprovider,atechnologycompanywithanembeddedservicescapability,orapartnershipbetweenthetwo—hasresponsibilityforthecompletedelivery,operaBon,andbusinessvaluereceivedbythecustomerfromtheoffering.It’stheMSP’sresponsibilitytocreatemanagedXaaSsoluBonsthataddressspecificcustomerchallengestoproducemeasurablebusinessvalueduringserviceoperaBon.Todeliverbusinessvalue,managedXaaSsoluBonsneedtobelinkedtoiniBaBves,processesandKPIsassociatedwithrunning,growingortransformingthecustomer’sbusiness.Forexample,bydesigningthemanagedXaaSsoluBontoenablecriBcalcustomerbusiness,operaBonaland/ortechnicalprocesses,MSPscaneffecBvelyimproveadopBonandensureasuperiorcustomerexperience.Thishelpstoreducechurnandcreateupsellingandcross-sellingopportuniBesforsalesteams.
The Importance of Offering Design
©2018ICTAssociatesLLC.Allrightsreserved.9
WHO CAN BENEFIT?
CreaBngbusinesssuccessinthedigitalworldrequiresthatMSPsbuildmanagedXaaSofferingsfocusedoneffecBveconsumpBonandbusinessoutcomes.IfyourorganizaBonisreadytoembracethesemarketchanges,youmaywanttoconsiderdevelopingandsellingaporgolioofmanagedXaaSofferingsbuiltaroundyouruniquecapabiliBes.ThefollowingorganizaBonscanbenefitfromaddingmanagedXaaSsoluBonstotheirservicecatalog:
• TechnologycompanywithanembeddedservicesorganizaBonthatneedstodevelopandlaunchamanagedservicecapability.
• TechnologycompanythatneedstoenableitspartnerecosystemtodevelopandlaunchamanagedservicecapabilitybyembeddingitssoluBonsintothepartnerserviceporgolio.
• TradiBonalmanagedservicesproviderortechnologyservicescompanythatneedstodevelopandlaunchamanagedservicecapabilitybasedonmulB-vendorXaaSsoluBons.
Business Success in The Digital World
©2018ICTAssociatesLLC.Allrightsreserved.10
DESIGN CONSIDERATIONS
CustomershavetradiBonallyassumedmuchoftheriskforderivingbusinessvaluefromtheirinvestmentsintechnologyservicesandsoluBons.Inan"as-a-service"world,however,customersbuysoluBonstobusinessproblemsandmuchoftheriskisassumedbythetechnologyorserviceprovider.Thismeansthatachievingahealthy,ongoingfinancialrelaBonshipwithcustomersdependsonthesupplier'sabilitytodemonstratebusinessvaluefromtheirsoluBons.ThistypicallyinvolvescreaBngaformalcustomersuccessmanagementorganizaBontocommunicatebusinessvalueandimproveadopBonduringserviceoperaBon.InaddiBon,MSPsneedtoestablishandgovernasetofconsistent,measurableandrepeatableofferingdesignprocessestodevelopasoluBonthatdrivesbusinessoutcomesandensuresasuperiorcustomerexperience.
Customers Buy Solutions to Business Problems
©2018ICTAssociatesLLC.Allrightsreserved.12
DESIGN COMPONENTS
Whenpreparingforservicedesign,thereare2valueproposiBonstokeepinmind,onefortheunderpinningtechnologyandtheotherforthemanagedservice.WhentheseindividualvalueproposiBonsarecombined,themanagedXaaSsoluBonshouldhaveadifferenBatedvalueproposiBonthatcanbesupportedbyabusinesscaseandarBculatedbythesalesteam.MSPsneedtoapplythefollowingcomponentsofservicedesigntocreateasuccessfulmanagedXaaSsoluBon:
• FuncBonalandnon-funcBonalrequirements,includingcapabiliBesandresources,
• ITservicemanagementsystemsandtoolsformanagementandcontrolofthesoluBon,
• Technologyarchitecturesandsystems,• ProcessdesignforserviceoperaBon,and• MeasurementmethodsandmetricstoquanBfybothservice
performanceandbusinessvalue.
The Solution Value Proposition
©2018ICTAssociatesLLC.Allrightsreserved.13
MANAGED XAAS
Inthedigitalera,customersbuysoluBonstobusinessproblemsenabledbyhigh-valuetechnologyservices.AsthepaceofdigitaltransformaBonincreases,technologycompaniesandserviceprovidersareaddingmanaged“as-a-service”offeringstotheirservicecatalogs.AmanagedXaaSsoluBonisarapidlygrowingclassofmanagedservicesthatcombinestechnology,support,andprofessionalservicesintoaflexiblesubscripBonmodel.ThesesoluBonscanbecloud-basedand/oron-premiseandsingleormulB-tenant,andtheycombinethebenefitsofa“paidtooperate”servicewiththeadvantagesofan“as-a-service”businessmodel,suchasscalabilityandconsumpBon-basedpricing.ThemostimportantdifferenBaBngfeatureofamanagedXaaSsoluBonisthatitmustdeliverbusinessvalueoverthecustomerlifecycle—fromorderlandingthroughrenewal.
Delivering Business Value Over The Customer Lifecycle
©2018ICTAssociatesLLC.Allrightsreserved.15
ICT Associates provides business consulting to fuel the key phases of service offering development from concept through sales execution and enablement. Our subject matter expertise is applicable to a broad range of service-based solutions, including Managed XaaS Solutions.
“ In a digital world, customers buy solutions that deliver outcomes and business value.
“Service Strategy &
Portfolio Development
Full Lifecycle Business
Development Consulting
Content Development,
Technical Writing & Documentation
Federal SBIR Program
Consulting
16
Contact ICT Associates to learn how we can help you overcome today’s most compelling services
business challenges.
Please visit our web site at www.ictassociatesllc.com
Tele (USA): +1 (240) 394-6510
Email: [email protected]
Learn More
©2018ICTAssociatesLLC.Allrightsreserved.17