How to Sell Cloud
Steve Heeney
BPO Cloud Leader
© 2011 IBM United Kingdom Limited
Meeting Storyboard
•Getting an interested customer
•Cloud is hype
•Cloud isn’t secure
•What’s the value?
•Working through Cloud solutions
•More than one cloud
•Building a business case
•Client readiness
•BVA
•IBM resources
•What type of Cloud BP do you want to be?
© 2010 IBM Corporation
Are you thinking about Cloud?
Cloud is just virtualisation…
An effective cloud computing
deployment is built on a
Dynamic Infrastructure and is
highly optimized to achieve
more with less!
CLOUD
Dynamic provisioning for workloads
SHARED RESOURCES
tin
g
Common workload profiles
In
inf tegr
ra ate
str
uc with
tu
re exi
s
AUTOMATE
Flexible delivery & Self Service
STANDARDIZE
Operational Efficiency
VIRTUALIZE
Increase Utilization
CONSOLIDATE
Physical Infrastructure
Traditional IT
“… the two biggest hurdles solution providers
face as they make the leap to the cloud are
their own sales force and their customers.
… "If they [customer] can't see it, they feel
© 2010 IBM Corporation
very uncomfortable about it," [Bova said of
customers‘ hesitance to move to the cloud.
…]”
(Tiffany Bova, VP Gartner Research,
@ XChange 2010, March 8th 2010)
Major Markets dominate in early Cloud adoption but the Growth Markets
have a 10-15 CGR of 35% vs Major Markets with 24%
Unit: $B (USD)
Markets
IMT (23)
Major Markets
US IMT
Canada IMT
Alps IMT
Germany IMT
Nordic IMT
UKI IMT
Italy IMT
France IMT
SPGI IMT
BeNeLux IMT
Japan IMT
Major Markets Total
Growth Markets
Growth Markets Total
Grand Total
Korea GMR
GCG GMR
ANZ GMR
ASEAN GMR
ISA GMR
Brazil GMR
Mexico GMR
SSA GMR
RCIS GMR
ECE GMR
MENA GMR
SubSA GMR
2008
21.2
1.2
0.4
1.7
0.7
2.8
0.6
1.2
0.6
0.7
1.8
2009
27.1
1.5
0.5
2.2
0.9
3.7
0.7
1.6
0.7
0.9
2.6
2010
35.9
2.3
0.8
3.1
1.3
5.0
1.0
2.1
1.0
1.3
3.7
2011
46.0
3.1
1.1
4.3
1.9
6.8
1.3
2.9
1.4
1.8
5.2
2012
56.7
3.9
1.5
5.9
2.5
8.8
1.8
3.9
1.9
2.4
7.1
2013
68.1
4.8
1.9
7.6
3.2
11.0
2.4
5.3
2.5
3.1
9.3
2014
79.7
5.7
2.4
9.5
3.9
13.4
3.1
6.9
3.2
3.8
11.8
32.9
42.6
57.4
75.7
96.4
119.3
143.4
0.2
0.6
0.7
0.3
0.2
0.3
0.1
0.1
0.2
0.3
0.1
0.1
0.3
0.9
1.0
0.4
0.2
0.4
0.1
0.2
0.2
0.4
0.2
0.2
0.4
1.4
1.7
0.6
0.4
0.7
0.2
0.2
0.3
0.6
0.3
0.3
0.6
2.0
2.3
0.9
0.6
0.9
0.3
0.3
0.5
0.8
0.4
0.5
3.3
4.5
7.1
10.2
14.2
36.2
47.1
64.6
85.9
110.6
Source: Market Insights Cloud Phase 2 opportunity assessment, Feb 7, 2011
2015 2010-2015 CAGR
90.7
20.4%
6.7
23.8%
2.8
29.3%
11.3
29.8%
4.6
28.6%
16.0
26.1%
3.8
31.7%
8.3
31.5%
3.8
30.1%
4.5
28.3%
14.4
31.0%
166.8
23.8%
1.5
5.7
4.5
2.2
1.8
2.4
0.7
0.9
1.3
2.0
1.0
1.2
1.9
7.6
5.3
2.7
2.3
3.2
1.0
1.1
1.7
2.5
1.2
1.5
33.7%
41.2%
25.8%
33.8%
41.3%
37.5%
35.7%
37.4%
39.5%
32.8%
37.5%
33.9%
19.1
25.1
32.0
35.0%
138.4
168.5
198.8
25.2%
0.9
1.2
2.9
4.1
3.0
3.8
1.3
1.7
0.9
1.3
1.3
1.8
0.4
0.5
0.5
0.6
0.7
1.0
1.2
1.5
0.5
0.7
© 2010 IBM Corporation
0.7
0.9
IBM Cloud Centers – Global Breadth and Depth
Technical & Sales Training
•
•
•
338 technical architects in 22 countries to be trained
by June 30
124 BDE,PE, DPE in 22 countries to be trained by
June 30
248 SEI Private Cloud Integrated sales team
members in 21 IMT/GMTs to be trained by 3/31
Dedicated Resources
Delivery Capabilities
123 Tiger sellers in 21 IMT/GMTs across GTS,
Tivoli and STG
7 data centers delivering “IBM Cloud” services
38 SEI Private Cloud Integrated Teams in 21
IMT/GMTs
9 global security operations centers delivering Managed
Security Services from the IBM Cloud
•
11 IBM Cloud Labs
55 global BCRS sites delivering Information Protection
Services
•
Global Sales Acceleration Center
•
•
© 2010 IBM Corporation
Top Challenges in Moving to a Public or
Private Cloud
Barriers to Cloud Adoption
Security concerns are the
most important fear among
IT decision-makers for both
public and private cloud,
especially public cloud.
Other factors, such as
- lack of technology
maturity
- lack of personnel skill
sets
- organizational
challenges and
- difficulty integrating with
existing infrastructure
will likely decrease over
© 2010 IBM Corporation
time as cloud success
stories circulate.
Percent of Respondents
Source: “Cloud Computing Attitudes”, IDC, April, 2010
Security is among the top concerns with
cloud computing...
The IBM Security Framework is a key differentiator in the
Application and process
marketplace
People and identity
Help keep applications secure,
protected from malicious or
fraudulent use, and hardened
against failure
Mitigate the risks
associated with user
access to corporate
resources
Network, server and end point
Data and information
Optimize service availability by mitigating
risks to network components
Understand, deploy and
properly test controls for
access to and usage of
sensitive data
IBM
Security
Professional
Framework
services
Describes the business landscape of security
Physical infrastructure
Provide actionable intelligence on the
desired state of physical infrastructure
security and make improvements
IBM Cloud
Security
Guidance
Managed
services
Describes the technology landscape
IBM Capabilities
and Offerings
to Help
© 2010 IBM Corporation
Hardware and
software
Catalogs of products,
services and solutions
Moving your IT to the cloud can drive significant benefits.
1
Capabilities
From
To
Server and storage
utilization
10-20 percent
70-90 percent
Self service
None
Test provisioning
Weeks
Minutes
Change management
Months
Days or hours
Release management
Weeks
Minutes
Metering or billing
Fixed cost
model
Granular
Standardization
Complex
Self service
Payback period for
new services
Years
Cloud accelerates business
value across a wide variety
of domains.
© 2010 IBM Corporation
Based on results from IBM’s Technology Adoption Program. Client-specific results can only be ascertained after a return on investment analysis.
Unlimited
Months
Continued Cloud momentum with customers
Continued Cloud Momentum with Our Customers
Private Cloud
Note: NATO & Panasonic are approved for external use
Managed Services
Software as a Service
© 2010 IBM Corporation
Meeting Storyboard
What do I actually sell?
© 2010 IBM Corporation
Identifying Client Pain Points
Cloud computing = selling opportunities to address client needs
Key Pain Points
• Lost business opportunity - IT lacks agility
• Long deployment timelines (weeks/months+)
• Change process complex (people, cost, time) & prone to error
• Upfront investment for new infrastructure too high
• Server sprawl with low utilization
• Costly Compliance, auditing, and security patching
• Don’t know what compute resources are used or how much they cost
© 2010 IBM Corporation
• Limited funding of new IT priorities because budget consumed maintaining
existing IT infrastructure
Probing Questions to assess Client
Cloud Needs
• Response time – How quickly can you react to deliver new IT service?
• Steps to provide IT resources - How many steps are in the provisioning/ de-provisioning
process?
• Support resources - What is the ratio of system admin staff to servers or users?
• Outages - Have you experienced outages due to human error?
• Scalable IT - How are systems sized and scaled quickly (peak usage, CUOD)?
• Allocation of IT resources - How many images per user? Is IT sized for min, mean, or peak?
• IT configurations - How many different configurations used?
•How do you manage backups?
• Measurement system - Level of metering & charging method used? How is software license
compliance managed?
• Allocation of budget - Does your budget allow for innovation supporting new business initiatives?
• Is your budget eaten up on capital IT expense?
© 2010 IBM Corporation
Through your client discussion, identify the
entry point that you think is the most likely
Item Entry Point
Description
Area of
Focus?
1
Cloud Strategy
and Design
Help is needed to develop a Cloud business,
technology and operating strategy and
understand how to capitalize on the potential
business benefits (flexibility, cost savings, etc.).
Y/N?
Priority
level?
Comments?
2
Cloud-Enabled
Data Center
Help is needed to set up, migrate and/or optimize
the technology infrastructure to enable a Cloud
implementation and to maximize the value of
Cloud.
Y/N?
Priority
level?
Comments?
3
Cloud
Application
Workload
Services
Help is needed to develop, set up, deploy and/or
Y/N?
consume applications as workloads on the Cloud. Priority
level?
Comments?
© 2010 IBM Corporation
Discuss Virtualization with the client and
assess where they are on the path to
virtualization
The conversation could include these points:
You ask a lot of your IT systems. And the reality is, to make your business more agile you ask even more.
If your IT staff spends all of their time worrying about security, uptime and capacity problems, they
won’t be working with you to drive innovation.
You need your infrastructure to help you in the marketplace, to help you innovate, to help you be
more competitive, to help you succeed.
Today, success demands agility.
You need to adjust to changes in your business, from your customers, and in the world.
IBM offers virtualization solutions with Integrated Service Management designed to help your
business be more agile.
With these solutions, you can:
Consolidate resources with a choice of virtualization technologies to improve efficiency and
reduce ongoing costs – do more with less
Manage workloads simply to make it easier for your IT staff to support the key business priorities
Automate processes to reduce management costs and make execution of key tasks more
consistent
toCorporation
the demands of the
Optimize delivery of services so that applications can quickly respond
© 2010 IBM
business.
Through your discussion, assess the
client’s virtualization maturity level
Maturity Activity
Level
Description
Area of Focus?
1
Consolidate
Resources
With virtualization, you can reduce the number of servers,
Y/N?
storage, desktop, and network devices to reduce complexity Priority level?
and make IT management simpler. You can also reduce
Comments?
electricity used to power and cool these systems and save
on floor space in your data center.
2
Manage
Workloads
Consolidation with virtualization can reduce complexity by Y/N?
reducing the number of physical devices. But, virtualization Priority level?
creates a new set of management demands and more work Comments?
for your IT staff.
3
Automate
Processes
With a virtualized infrastructure, you have the ability to
assign resources to your highest priority business needs.
With automated processes based on best practices and
business rules, you can reduce manual errors as your IT
systems automatically respond to changing business
conditions.
Y/N?
Priority level?
Comments?
4
Optimize
Delivery
You need to let users self-provision IT resources
© 2010and
IBM Corporation
optimize delivery of IT services. This can help assure that
resources are delivered in the most timely and efficient
manner.
Y/N?
Priority level?
Comments?
By introducing the IBM Cloud Reference
Architecture, you can discuss the client’s
architecture readiness for cloud
IBM Cloud Computing Reference Architecture
Questions for the Client
Have you adopted, or are you adopting, a
Cloud Reference Architecture?
Y/N?
What does it look like?
Please provide description (diagram,
documentation, etc.)
What are the current levels of
development and deployment?
Please describe
Business Partners: Learn
more about it HERE
© 2010 IBM Corporation
Prioritizing Workloads to Move to Cloud
Computing
You can use simple spreadsheets to prioritize workloads. Be sure to have
someone who can fill in the spreadsheets as you discuss workloads.
The discussion might look like this:
1. Describe the workloads
Workload Categories
Workload
Analytics
Collaboration
Development / Test
Desktop / Devices
Compute
Storage
2. Identify the workloads to
move to cloud and the
priority of moving them
Priority to Move to Cloud
Move?
Y
Y
Y
N
Y
Y
Priority
1
2
3
0
2
1
0 = None 1 = Low 2 = Med, 3 = High
3. Select the cloud
deployment model(s) that
best fit each workload
Deployment
Traditional
• Traditional
• Private
Private
Mgd Private
• Managed Private
Host Priv
• Hosted Private
Shared
• Shared Services
Public
• Public Services
© 2010 IBM Corporation
Over half of UK companies indicate high interest in
adopting many workloads in either Public or Private clouds
Comparison of Cloud Delivery Models for the United Kingdom
(Current Use/Consideration)
Public
Private
Hosted Private
Business social networking tools
Workloads
82%
64%
65%
Web-facing applications
78%
71%
67%
Team workspaces / workgroup
70%
82%
64%
CRM
65%
75%
65%
Email
62%
68%
65%
HR learning/training
61%
70%
56%
Back-up/recovery
59%
69%
68%
Data analysis/data mining/analytics
58%
60%
52%
SCM
57%
67%
67%
Telephony services
57%
66%
61%
Storage
56%
68%
68%
Archive
55%
66%
68%
Data warehousing/data mart
53%
72%
72%
Business transaction lifecycle processes
52%
80%
74%
Disaster recovery
51%
62%
68%
Server
48%
67%
61%
Development environments
44%
77%
70%
Expense reporting
44%
75%
66%
Systems management
42%
56%
50%
Desktop
41%
58%
48%
ERP
41%
67%
OLTP
37%
66%
48%
Security
28%
58%
47%
Application Lifecycle Management
*
*
*
Design automation/HPC
*
*
*
Source: Market Assessment Panel, Uncovering Cloud Computing Opportunities, 2010
Base: depending on the workload, UK=30-82; *Sample sizes of less than 30
18
January 2011
© 2010 IBM 68%
Corporation
For each workload, identify the main drivers and
challenges to moving the workload to cloud computing
Drivers
Challenges
Decrease capital expenditures
Cost prohibitive/price
Decrease operational expenditures
IT organization is not structured to change
processes and policies
Lower Total Cost of Ownership
Aids in disaster recovery
Speed time to deployment
Improved availability
Improved security
Improve utilization of IT resources
Improve response to changes in workload
demand (flexibility)
Simplified management
Difficult to integrate with already installed
technology
Doubt the savings/projected ROI numbers
Technology is immature at this time
Ability to meet SLAs
Lack of staff skill sets
Issues with downtime/availability
Security concerns
© 2010 IBM Corporation
Vendor lock-in
Source: IDC, Cloud Computing Attitudes, April 2010
There is a spectrum of Cloud Computing deployment models
Private Cloud Services, behind a firewall
Delivery Model 1
Cloud scope
Delivery Model 2
Enterprise
Data Center
Enterprise
Data Center
Private Cloud
Managed
Private Cloud
Service Provider
Operated
Delivery Model 3
Enterprise
Hosted Private
Cloud - Dedicated
Service
ServiceProvider
Provider
Operated
Operated
Standardized Services
Delivery Model 5
Delivery Model 4
Ent A
Ent B
User
User
User
A
B
C
User
User
D
E
Ent C
Hosted Private
Cloud - Shared
Service
ServiceProvider
Provider
Operated
Operated
Cloud Public
Services
Operator
Enterprise
Ownership
Enterprise
Enterprise
Service Provider
Location
Enterprise
Svc Provider
Revenue
model
Time & materials,
fixed price, etc.
Access
Internal enterprise
network
Access through VPN,
public internet
Public internet
Consumer
Single enterprise
Multiple enterprises
Any enterprise/
user
Asset use
Dedicated (single
tenant)
Service Provider
Agreed-to Mgmt
Fee
Mixed
Time & materials, fixed
price, pay-as-you-go
Dedicated
Enterprise (Private)
Service Provider (“Public”)
Service Provider
Pay-as-you-go
© 2010 Multi-tenant
IBM Corporation
Source: Market Insights Cloud Phase 2 opportunity assessment, Sept 11, 2010, in consultation with International Planning & Research
Multi-tenant
IBM’s channel plays cover all of the major Cloud markets and
models
Enterprise
Data Center
Enterprise
Data Center
Private Cloud
Managed
Private Cloud
Existing channel
plays in bold
Hosted Private
Cloud - Dedicated
Service
ServiceProvider
Provider
Operated
Operated
Service Provider
Operated
IBM Cloud
Maintenance
Services
(XaaS) - $139B*
Ent C
GTS Cloud Services
IBM Industry
Cloud Services
Info Mgt
ISDM
Cloudburst
Systems SW
Cumulus
Custom Cloud
IBM Cloud
Hosting
Provider Kit
Attach IBM Cloud Services
to Private Cloud
Technology deals
© 2010 IBM Corporation
Sell with ISV’s
Lotus Live &
Other SWG
Cloud Services
ISV SaaS
Services
Communi
cations
Service
Provider
Platform
Cloud Services Provider
($24B)
(Cloud Technologies)
- $60B*
Enterprise Private
($36B)
Arms Supply
Cloud Public
Services
SmartCloud - Enterprise
IBM Cloud services Sell thru BP’s
Sell to BP’s
User
User
User
A
B
C
User
User
D
E
Public Services
($104B)
Cloud Services
BP resale of
IBM Cloud
Services –
Hosting
Provider
Model
Ent B
Hosted Private
Cloud - Shared
Service
ServiceProvider
Provider
Operated
Operated
Hosted Private ($16B)
TivoliLive
IPS
Managed
Security
Managed Private
($19B)
New Channels
Play to be
developed
Ent A
Enterprise
* 2015 WW Cloud Market Size: Source – IBM Market Insights Cloud Phase 2 opportunity assessment, Feb 7, 2011
Select “Create a
new workshop”
and click the “OK”
button
© 2010 IBM Corporation
How is the BVA tool used?
A proven process to support customers with a ROI analysis
ROI Analysis Process
Position
• Understand
strategic goals
• Identify ROI
sponsor
• Discuss ROI
approach and
methodology
Interview
Generate
• Input data into
• Complete
ROI tool
questionnaire
• Estimate project
• Understand
business drivers implementation
costs,
and technical
timescales and
environment
resources
• Conduct internal
review
Validate
• Review analysis
with sponsor
• Revise input
and
assumptions
• Rerun analysis
• Generate new
report
Present
• Present ROI to
management
board
• Review
business
benefits
• Discuss next
steps and
acceptance
criterias
© 2010 IBM Corporation
REVISE INPUTS
Meeting Storyboard
What type of BP would you like to be?
© 2010 IBM Corporation
IBM/Partner Cloud Computing Strategic Plan - 2011
Markets selected?
What will we sell them?
How will we make money?
Large
Private Cloud Solutions?
Average transaction size
Medium
Public Cloud Services
Gross/Net Profit Margins
Small
Other?
Follow on opportunity
Industries
Who are the target Clients?
To be determined
Non-cloud related follow on
How many leads do we need?
To be determined
What % can we close?
To be determined
Goals – what will we achieve in our cloud business this year?
# of Cloud deals (types, size)
Revenue goals, trained sellers and practitioners
How can we start our Cloud business?
tbd
What resources will be required?
Partner IBM © 2010 IBM Corporation
IBM/Partner Cloud Strategy: IBM and Partner will launch our Cloud business in the (local) market by…
Cloud computing presents new business opportunities for
existing and emerging Business Partners
Private Cloud
Implementation
Opportunity: $23B
growing to $67B
Infrastructure &
Platform Services
Opportunity: $16B
growing to $55B
Business Solutions
Opportunity: $22B
growing to $67B
“I want to help my clients to
design, build, manage their
private cloud”
“I want to build and operate a public cloud
infrastructure (IaaS and PaaS)”
“I want to deliver my application or asset as a cloud service”
“I want to resell a
portfolio of public cloud
services”
© 2010 IBM Corporation
“I want to extend and add value to
other providers’ clouds”
26
Thank You!
ibm.com/cloud/partner
© 2010 IBM Corporation
© 2011 IBM, the IBM logo, ibm.com, Smarter Planet, the Smarter Planet icon, Cognos and LotusLive are trademarks of IBM
Corp. registered in many jurisdictions worldwide. A current list of IBM trademarks is available on the Web at "Copyright and
trademark information” at ibm.com/legal/copytrade.shtml
27