Cloud Solutions Move to cloud and deliver business outcomes in an as-a-service delivery model Cloud Solutions Contents The Digital Transformation Opportunity Why should you move your customers to the Cloud? Benefits of the Microsoft Cloud Solutions Provider Program (CSP) A Microsoft Licencing Comparison Create a Successful Cloud Strategy Why partner with Tech Data for Microsoft CSP Next Steps Cloud Solutions The Digital Transformation Opportunity Digital transformation is a complex process that changes how enterprises work and go to market, which creates long-term opportunity for partners equipped to take customers on this on-going digital journey. Transformation leverages digital technologies to innovate new business models, business processes, and services, and to improve experiences, operational efficiencies, and organizational performance. According to IDC the market opportunity for Digital Transformation in 2019 is $1.7 trillion. The cloud has changed more than the way we implement and manage IT; it’s changing the very fabric of business. With ready access to data, and intelligent new ways to view, analyse and use the information, the cloud has engendered powerful new capabilities which are disrupting entire business models. Three converging trends are accelerating this partner opportunity. Executive mandate. Digital transformation is at the forefront of customer conversations and is a board-level initiative. Executives view the path to capturing this opportunity as becoming technology-centric to deliver new customer experiences. Line-of-business led. Line-of-business (LOB) leaders such as marketing, operations, sales, HR, and finance leaders are being called upon to drive business model changes and technology decisions, and to facilitate digital innovation towards a technology-centric business. Built on the third platform. The new generation of technologies – big data, analytics, social, and mobile – are necessary to enable the achievement of a company’s digital goals. These technologies, along with accelerators like the Internet of Things (IoT) and artificial intelligence (AI), will dominate the unprecedented increase in future technology spending. Source: IDC eBook The Digital Transformation Opportunity sponsored by Microsoft Cloud Solutions Why should you move your customers to the Cloud? Hybrid cloud computing is now the defacto for mid-market and enterprise organisations. Today customers are looking for next-generation technology solutions that deliver business based outcomes in ‘as a service’ delivery models. This allows them to ‘pay as they go’ for these market leading solutions with no upfront investment and using OpEx rather than CapEx. It also dramatically speeds up their time to market and allows them to innovate and differentiate themselves. SMBs can also benefit from this approach, no matter how small or niche their business is. Forward looking partners are shifting their focus to high-value digital solutions in the cloud. Advances in big data/analytics have created new markets for emerging technologies like AI and machine learning, IoT, and blockchain. The expansion of the cloud ecosystem and access to data have created new security and compliance requirements, which become table stakes for digital transformation. In fact, IDC predicts that the General Data Protection Regulation alone will create a $3.5 billion market opportunity. • CLOUD MASTERY: 70% of partners surveyed were focused on cloud services to provide value. But again, that’s just the start. • MODERN TECHNOLOGIES: By 2019 IDC predicts that 40% of digital initiatives will be supported by cognitive/AI capabilities, big data, and IoT, providing critical insights for new operating and monetisation models. • NEW SKILLS: Partners skilled in digital technologies, transformation services and modern business practices will be at the forefront of the digital economy, and able to attract the best talent. By 2020, 85% of new hires will be screened for analytical and AI skills. And by 2020, 25% of Global 2000 companies will have developed digital training programs and digital cooperatives. Business transformation within the larger trend of digital transformation cannot be understated. As a partner you should align your strategy and goals to market opportunity, and focus on meeting customer requirements by leading with the transformation of your own business. Source: IDC eBook The Digital Transformation Opportunity sponsored by Microsoft Cloud Solutions Benefits of the Microsoft CSP Program The Microsoft CSP program enables partners to directly manage the entire Microsoft cloud customer lifecycle. Partners in this program directly provision, manage and support their customer subscriptions. Partners can easily package their own tools, products and services and combine them into one monthly or annual customer bill. • Partners are the first point of contact for all their customers’ needs • Partners own and control the billing cycle (monthly or annually) • Partner create unique financing options • Partners sell integrated offers and services – one sales motion to drive services attach and upsell • Partners receive in-product tools to directly provision, manage and support Partners can sell all major commercial suites and standalone products for Office 365, Windows Intune, and EMS. Partners can sell to any commercial Customer. Enterprise Agreements may offer additional discounts, but this will vary based on your value added services offering. Although pricing pressure may be felt at 1,000 seats, there is no seat cap. Customers can more easily purchase partner tools, products and/or services with their subscription in one predictable monthly bill. Beyond the inherent benefits of the Cloud, customers will have more frequent interactions with you which can serve to deepen the relationship. Lastly and most importantly; For every $1 of revenue that Microsoft generates, partners can generate an additional $9.64 of revenue. Source: IDC eBook The Digital Transformation Opportunity sponsored by Microsoft A Microsoft Licencing Comparison Advisor is no longer available. The margins in Advisor were limited and CSP is more flexible. If you are currently buying Open licencing it’s not scalable. CSP offers you more flexibility. You already have experience in selling Office 365. Open is no longer the only model available through distribution. Microsoft CSP Open Duration of subscription 1 month 1 year Team 1 month 1 year Flexibility High Low Price per seat Low Low Usage calculated Daily Annually Support Tech Data & Microsoft Microsoft Tool StreamOne Digital on Demand End customer billing Tech Data Microsoft Reseller billing 1 summary invoice per month Per order Delivery 1 - 24 hrs 24-48 hrs Cloud Solutions Create a successful Cloud Strategy Here are four steps that you can take to get the orders rolling in. Option 1: Specialise The first way to create unique added value is by specialising. Customers who know you are an expert in a product or sector will be more likely to come to you for advice. Combined with your personal standpoint, this makes you a highly prized and much sought-after source of information. Don’t be afraid to try things out in this area. That way you’ll soon get the most out of these opportunities. Also ask your customers what you can do to improve. Option 2: Customise your offering for each target group Adding value for your customers usually takes the form of customising something. Customers appreciate getting exactly what they ask for, and that helps you build up a good relationship with them. But it can often have a less beneficial impact on your bottom line. A good suggestion is to create a module for each of your target groups that more than one customer can use. As you’ll be selling larger numbers of the same module, your margins will improve. What’s more, customers are increasingly expecting IT resellers to act as business consultants as well these days. Functionality is delivered from the cloud, so the complexity lies elsewhere. You can secure your added value in an advisory role in which you use your knowledge of business processes and specific features of the market. Option 3: Focus on intellectual property Everything that comes out of a person’s brain is intellectual property. Have you thought up something ingenious, written a program or built a tool? Then that’s your intellectual property. Try to convert smart ideas into products whenever you can. It’s a good idea to start small, for example with a smart tool as an add-on to an existing cloud solution. If you are having trouble converting an idea into a product, try bringing in a professional to help. It’s a one-off investment but in the long- term it could pay for itself many times over. Option 4: Keep ahead of the competition Would you like to stand out by leading the way in cloud solutions? Then it may be worth considering taking on someone specifically for this purpose or tasking one of your staff with it. That way you can keep abreast of trends and developments in the cloud. ‘A strategy delineates a territory in which a company seeks to be unique.’ – Michael Porter Why partner with Tech Data for Microsoft CSP? Engage in our comprehensive enablement to upskill your commercial, technical and marketing resources. We can help you to achieve business transformation, gain technical accreditations and get your sales resources up to a level where they are confident to sell cloud. Our courses are available both on-line and face to face across the European region. Leverage our cloud platform StreamOne