September 20-22, 2010Gaylord National Resort & Convention CenterWashington, DC

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Track One:Cloud Computing Crash Course

Moderator:Clark Atwood, Vice President, Concierge Communications (catwood@conciergecom.com)

Panelists:Jason Baker, CTO ReliaCloud (jason.baker@reliacloud.com)

William Hiatt, CTO, RapidScale (william.hiatt@rapidscale.net)

Brandon Peccoralo, Sourcing Consultant, COLOTRAQ (bpeccoralo@colotraq.com)

Andrew Pryfogle, President & CEO, Terrapin Solutions, LLC (APryfogle@Terrapin-Solutions.com)

Hannah Smitterberg, CEO, Cost Effective Technologies (hannah.smitterberg@gocetech.com)

September 20, 2010

Cloud Computing Crash Course

Agenda

• Please silence your phones• Review the opportunity

10 minutes• Hear from experts on making money and best

practices in Cloud Computing10 questions4 minutes per answer

• Review a case study from an agent• Please make notes• Hold questions until the end

What is Cloud Computing?

• Quality questions and answers are harder to come by than a crisp $2 bill

• Different views– Communications view

• Network centric

– IT Solution Provider view• Client technology centric

Cloud Computing is ______.

Tiffany BovaResearch VP for Gartner

“How tech is delivered”“How tech is acquired”

xChange Americas – August 2010

“The Cloud”

Private Networks

ServersOperating Systems

Applications

CoS/QoS

Connectivity

End User Devices

Single/Multiple Locations

Internet

Connectivity

Security

Premises Infrastructure

Others

LegacyPSTN

Hosting

Public Network

Security

Equipment

What is Driving Cloud Computing?Re

duce

Lab

or

SW/

HW

Upd

ates

Com

plia

nce

Cost

Red

uctio

n

Legi

slati

on

Exte

nsib

ility

Scal

abili

ty

Mob

ility

Cons

umpti

on

Customers

Cloud ComputingCloud Computing

Cloud Opportunity

Eric MartoranoDirector, Channel Strategy, Incentives and Partner

Marketing at Microsoft

“Cloud services opportunities are six

times that of hardware.”xChange Americas – August 2010

Who Supplies Cloud Computing?

• Communication Providers• IT Support Companies• Hardware Manufacturers• Online Retail Companies• Etc……..

“Ultimately it is technical sales people that supply Cloud Computing.”

Clark AtwoodChannel Partner Expo – Sept 2010

Cloud Computing

Cloud Computing

MicrosoftAzureStorageWindowsBPOSForeFrontInTuneBingMore…

AmazonEC2S3 & EBS??SQS & SNS??CloudWatch??More…

IBMIBM CloudIBM SBS??Lotus??IBM SBD??More…

Google??StorageChromeAppsPostini??GoogleMore…

Dell Oracle Cisco HP

The fight is on!

Panel of Experts

1. Educating Prospects2. Industries to Capture3. Desktop as a Service4. Security5. Mobility

6. Disaster Recovery7. What’s Next8. Sales Barriers9. Commission Example10. Program Overview

Education is always a challenge to the sales process of any product. Your company looks at five different ways to help companies learn about Cloud Computing. Which one of this is best in a particular sales situation?

Client Learning

13

»Tailor pitch to your audience

»Business: Webinars, Use Cases, TCO

»Technical: Let them play with it

Best ways to sell cloud

You have an impressive client list posted on your Web site by industry. What are the top three

industries that embrace Cloud Computing and what is the secret to penetrating them?

Industry Targets

Hot Industries for CloudDon’t think vertical, think application

Rate of adoption

Cyclical

Resource

Utilization

EnvironmentalLifecycle

Potential Scale

How do you transition businesses into a monthly fee for Desktop as a Service (Daas) instead of paying once for a computer and software and keeping it for five plus years?

Monthly Fees

• Some customers already used to paying for part of desktops as a fee• EX: Microsoft Enterprise Licensing

Agreement • Position it by the numbers• Look at desktop costs

• Procurement (Buy vs. Lease)• Deployment • Sustainment

Many security solutions are being embedded into product offerings or utilizing existing security options like SSL.

Where is Cloud Security headed and how does that affect the indirect channel?

Security

Standardization & reputation Size of organization Tradeoffs Type of data

SIM

PLE

| S

MAR

T |

SEC

URE

Public, Private, Hybrid?

Company A

Company B

Company DCompany C

Company E

Company A

Company B

Company D

Company C

Company E

Hybrid

Public

Private

How does mobility play in the Cloud space and how do agents make money combining mobility and Cloud Computing?

Mobility

“40 Million Americans occasionally “Tele-work” every month.” – workingfromanywhere.org

Cloud Computing is a Huge Driver for Mobility

Wi-Fi-connected Laptops are not sufficient when “Always On” is the requirement

3G & 4G Connectivity is Critical

Big Up-front & Recurring dollars being paid out.- AT&T, Verizon, Sprint

Disaster Recovery as a Service (DRaaS) is needed by any business that wants to survive a disaster. You list some common

threats on your Web site. How do you position this service, which the client hopes they will never use, and still help the

customer feel they are paying for something valuable?

Reasons for Disaster Recovery• Hackers • Major power failures • Terrorist attacks • System administration errors • Natural Disasters and • Computer Viruses• Other

Disaster Recovery

• Size of business• Locations• Employees• Revenue

• Cost of downtime• Lost Productivity• Lost Billings

• Challenge vs. opportunity• Outsourcing vs. doing it themselves

E-mail and CRM have enjoyed some rapid growthin the Cloud Computing space. What is the next wave of Software as a Service that we should be preparing

to see take market share from its premises-based sibling?

The Next Wave

SIM

PLE

| S

MAR

T |

SEC

URE

XaaS – Everything as a ServiceCu

stom

er S

izeSm

all

M

id-S

ized

L

arge

XaaSA comprehensive solution that

combines IT Services with IaaS & SaaS in a platform that is designed specifically for

small & mid-sized organizations

CSC

MSI

Kaseya

BMC

ConnectWise

Etc.

Amazon EC2

Rackspace.com

VMWare

Citrix

Etc.

Google Apps

Salesforce.com

Zoho

Microsoft (Well,Sort Of!)

Etc.

Google App Engine

Force.com

MicrosoftAzure

I.T. ServiceProviders

Infrastructureas a Service

Softwareas a Service

DeveloperPlatforms

In the survey you did earlier this year, you identified eight potential barriers to adopting Cloud Computing. How do overcome these and other barriers in the sales process?

Sales Barriers

» Biggest Barrier: Giving up control

» Biggest Competitor: In-house IT

» Walk before you run» Identify first App to cloudify» Storage is the low-hanging fruit» Prove the business case first

Overcoming Barriers in the Sales Process

Agents are seeing their existing base of MRC crumble under price compression as most solutions move to a commodity. What products in Cloud Computing hold the greatest promise for commissions?

High Dollar Sales

The Key: Increase Share of Wallet

STOP thinking “Total Telecom Spend” START thinking “Total Technology Spend”

Cloud Computing Recurring Revenue Sources- Virtualized Servers - $250 - $400 per server- Cloud Storage - $200 - $500 per SAN- Desktop Virtualization - $125 - $250 per desktop

Commissions vary in Cloud Computing from small onetime payments to residual income streams. Can you

give us some examples of Cloud Computing Agent programs and what to expect in commissions?

Agent Programs

Commission StructureSTANDARD USAGE COMMITMENT BASED ONE-OFF NEGOTIATED

Provider pays according to the current contract in place for other services — typically 10–25% of MRR.

Provider pays commission based on a fixed monthly charge, no commissions paid on charges for exceeding committed monthly usage.

Commissions are negotiated for each individual deal.

04/10/2023 Terrapin Solutions Confidential 32

A Cloud Case StudyTexan Hyundai

Brought to you by Terrapin Solutions, your Cloud Services Master Agency

04/10/2023 Terrapin Solutions Confidential 33

Customer Intro

Owners bought a defunct auto dealership in Houston, TX

Inherited an 8-year old PBX and some old PCs and old network infrastructure

2 Driving Goals Keep cash investment on infrastructure to a minimum Open store in under 30 days

04/10/2023 Terrapin Solutions Confidential 34

The Initial Opportunity

Single PRI T1 DIA

Total Revenue Opportunity? < $1,000 MRR

04/10/2023 Terrapin Solutions Confidential 35

Just a Few Extra Questions

Can you tell me about your computing environment? Servers? Storage? Desktops? Mobile Workers?

The Answers we got Need to run ADP ADP required huge hardware investment in servers and desktpos Was about to spend over $75,000 on infrastructure Was about to sign a IT Support contract for $80,000 per year

04/10/2023 Terrapin Solutions Confidential 36

The Winning Solution

Virtual-Q Cloud Computing Virtualized Desktops New HP Thin Clients at <$300 per machine Cloud-based storage, processing, and auto-backups Fully Virtualized their ADP platform 7x24 Live Support

Appia Hosted VoIP Cisco IP Phones on Every Desk, No PBX or Voicemail Hardware Custom Auto Attendant

Appia MPLS QoS for Voice, CoS for Virtual-Q Traffic

Installed Entire State-of-the-Art Solution in <30 Days <$10,000 in CAPEX

04/10/2023 Terrapin Solutions Confidential 37

The Final Revenue Picture

Virtual-Q - $3,200 per month Appia Hosted VoIP - $1,850 per month Appia MPLS - $750 per month

Total Monthly Revenue: $5,800 per month

Almost 6x Greater than Original Opportunity

Note: Resulted in over $100,000 Reduction in TCO

04/10/2023 Terrapin Solutions Confidential 38

Summary

If Cloud Services is Not part of your portfolio, you’re LEAVING MONEY ON THE TABLE

Add “Just a Few More Questions” to your Selling Process

You don’t have to be expert in the Cloud to start – Rely on Experts

Texan Hyundai Ownership Group is now doing this again at up to 7 more locations in the next 6 months. Will have turned a $1,000 opportunity into a $40,000+ opportunity

04/10/2023 Terrapin Solutions Confidential 39

Time to Grow Revenue with The Cloud

Thank you

September 20-22, 2010Gaylord National Resort & Convention CenterWashington, DC

Join the Twitter conversation! Add #CPexpo to all your show-related tweetsJoin the Twitter conversation! Add #CPexpo to all your show-related tweets

Track One:Cloud Computing Crash CourseAudience Questions & Answers

Moderator:Clark Atwood, Vice President, Concierge Communications (catwood@conciergecom.com)

Panelists:Jason Baker, CTO ReliaCloud (jason.baker@reliacloud.com)

William Hiatt, CTO, RapidScale (william.hiatt@rapidscale.net)

Brandon Peccoralo, Sourcing Consultant, COLOTRAQ (bpeccoralo@colotraq.com)

Andrew Pryfogle, President & CEO, Terrapin Solutions, LLC (APryfogle@Terrapin-Solutions.com)

Hannah Smitterberg, CEO, Cost Effective Technologies (hannah.smitterberg@gocetech.com)

September 20-22, 2010Gaylord National Resort & Convention CenterWashington, DC

Join the Twitter conversation! Add #CPexpo to all your show-related tweetsJoin the Twitter conversation! Add #CPexpo to all your show-related tweets

Thank you!