Cloud Channel Summit 2015 | @rhipecloud #RCCS15

Are you relevant ?

Chris Sharp | VP Strategy | rhipe

Context . . . Change

Cloud

Gartner Top 10

trends 2015

Cloud is the

new IT reality

Big Data

Accenture

89% believe

no big data

strategy =

business

risk, market

share loss

Mobility

IDC

APAC $25bn

M-commerce

market in 2015

(accounting for

50% of all

e-commerce)

Enterprise Social

Avanade

Majority

of large companies

are leveraging

consumer-driven

social networking

instead of

enterprise-class

social

Context . . . More Change

Security

Top 3 across most

surveys

But…

IoT

IDC

$8.9tn & 212bn

devices by 2020

3D printing

Canalys

3D printing

$16.2bn by 2018,

CAGR 45.7%

Wanted Analytics –

35% of ads for

engineering jobs

prioritise 3D

printing (Sept 14)

Next

Shift Happens…

“Buyer pull” vs “Supplier push”

Understanding The Bow Tie

Where is the Cloud market at?

SOURCE : THE ASIA PACIFIC SME CLOUD COMPUTING ATTRACTIVENESS INDEX 2015

Where is the Opportunity Next Year?

Country HSP Opportunity($M) Current Penetration

New Zealand $40 35%

Singapore $41 31%

Australia $212 29%

Korea $338 16%

Thailand $62 3%

Malaysia $64 2%

Philippines $61 1%

Indonesia $117 0%

Vietnam $43 0%

Total $978 15%

451 Research . . . hot off the press

http://bit.ly/MS-451-HOSTING-STUDY-2015Microsoft to

rhipe to you…

http://bit.ly/MS-451-HOSTING-STUDY-2015 Microsoft to

rhipe to you…

451 Research – hot off the press

http://bit.ly/MS-451-HOSTING-STUDY-2015Microsoft to

rhipe to you…

451 Research – hot off the press

Forrester SurveyKey target survey sample scope

Survey Scope

Total: 79 interviews

Target companies: rhipe cloud

partners

Target roles: Head roles like

CEO, COO, CIO/CTO, senior

managers, and managers

Database: Database -

provided by rhipe and

augmented by Forrester

Survey LOI: 25 to 30 minutes

What makes fast growing service providers

different?

The fast growing IT partners are more likely

to be Managed Services Providers

Source: 61 IT partners who expect to growth their business by at least 10% over the next two years

2%

3%

5%

5%

13%

15%

16%

41%

Trusted Advisor

Independent software

vendor (ISV)

Direct market reseller

(DMR)

Systems integrator (SI)

Hosting service

provider

Value-added reseller

(VAR)

IT consulting firm

Managed service

provider (MSP)

Which one best describes your company?

35%

Total % from 79

IT partners

16%

24%

10%

6%

4%

3%

1%

The shift from

VAR to MSP

Are you expanding your service offerings, simplifying them,

or keeping them the same or similar?

These fast growing IT partners are aggressively

growing their solution set on offer

Expanding,

87%

Simplifying,

5%

Same, 8%

DifferentiationSource: 61 IT partners who expect to growth their business by at least 10% over the next two years

For this calendar year, what is you organisation’s top priority vertical?

They are more likely to be focused on professional

services . . . and less likely on government

2%

2%

2%

3%

3%

5%

7%

11%

15%

15%

16%

20%

Energy/Utilities

Travel & Transportation

Electronics

Telecom

Education

Healthcare & Life Science

Others

Government (Central, State)

Banking & Financial management

Retail

Manufacturing

Professional Services 16%

Total % from 79 IT partners

14%

11%

13%

18%

6%

4%

4%

4%

1%

5%

4%

Source: 61 IT partners who expect to growth their business by at least 10% over the next two years

Results

focused

customers

Many of these businesses started their

Cloud journey years ago

When did you start offering Cloud services?

12%

4%

43%

39%

2%

More than 7 years ago

5- 7 years ago

3- 5 years ago

1-3 years ago

Less than a year 3%

Total % from 79 IT partners

42%

38%

5%

12%

Source: 60 IT partners

Competitor

Experience

is growing

Growing revenue and competition will

be the biggest challenges

Source: 61 IT partners who expect to growth their business by at least 10% over the next two years

What are your company’s top 3 business challenges?

3%

11%

8%

8%

16%

15%

11%

21%

5%

13%

5%

10%

16%

13%

8%

8%

21%

5%

8%

8%

13%

10%

18%

25%

11%

Others

Poor support from our vendors

The rate of technology change

Responding to our client’s business …

Finding and retaining people

Increasing profit margin

Increasing expectation from Customer

Reducing costs

Competition

Growing revenue

Rank1

Rank2

Rank3

Sales,

Marketing

and Automation

What is the

difference

between

those

companies

that offer

Cloud

services

and those

that do

not?

Cloud providers are much more likely to offer a broad

solution set to many industries, BUT services and

Industry vertical focus

Share of

wallet and

vertical IPBase: 79 partners; Source: A commissioned study conducted by Forrester Consulting on behalf of rhipe, January 2015

53%

12%

22%

13%

21%

58%

11%

11%

We are a provider of a

broad solution set to a

broad set of industries

We are a provider of a

narrow solution set to a

narrow set of industries

We are a provider of a

broad solution set to a

narrow set of industries

We are a provider of a

narrow solution set to a

broad set of industries

Does not offer cloud Offers cloud

What statement best describes your firm?

7%

0%

5%

15%

5%

18%

2%

43%

0%

2%

3%

0%

5%

0%

58%

0%

5%

0%

16%

11%

0%

5%

Intel Servers

Storage

Networking

PCs, Printers & Other Hardware

IT Services that you Resell –…

Vertical solutions

Horizontal solutions

IT Services Delivered by your…

Application Software – Resold

In-house Software

Other Revenue

No cloud offering Cloud offering

Share of

wallet and

vertical IPBase: 79 partners; Source: A commissioned study conducted by Forrester Consulting on behalf of rhipe, January 2015

For the last calendar year, what were the top 3 key IT products & services that

you sold?

Cloud providers are much more likely to offer a broad

solution set to many industries, BUT services and Industry

vertical focus

IT partners who sell cloud solutions are much more likely

to sell . . . multiple solutions across more vendors

Next

logical purchaseBase: 79 partners; Source: A commissioned study conducted by Forrester Consulting on behalf of rhipe, January 2015

53%

42%

5%

68%

32%

Less than 5

5 to 10

More than 10

Does not offer cloud

How many professional solutions/services

offerings do you sell to the average

customer?

18%

38%

33%

10%

26%

47%

21%

5%

Less than 10

10 to 19

20 to 29

30 or more

No cloud offering

What is the total number of vendors with

whom your company has reseller or service

provider agreements?

Fast GrowingOther interesting facts

Higher proportion revenue from cloud (64% vs 59%)

IT Services and Application focus, with Security, application

and cloud software most likely to be sold

Likely to be mid-sized : Flexibility and Agility

A fast growing rhipe customer is,

on average

A mid-sized firm, offering a growing portfolio of capabilities

to their customers in the professional services, manufacturing,

retail and financial services industries

They have a strong focus on selling their own IT services

– keeping revenue in-house

They sell security, applications, cloud, service management

and analytics software – and have embraced cloud as a delivery platform –

either from their own DC or that of an IT vendor

These IT partners make a lot of their revenue from cloud

– and turn over around $0.5-15 million dollars a year in total

How does Cloud help these partners?

Cloud computing broadens the scope of the vendors they resell – they have a

much greater portfolio of capabilities to offer to client

The greater portfolio of services means that they tend to sell more solutions per

customer

Cloud that help them sell to higher margin industries (such as financial

services)and also helps them sell to larger businesses – likely increasing the

value of the contracts they sign

IT partners that sell cloud computing are more likely to be aggressively growing

their business

Cloud-focused businesses sell much more of their own IT services –

meaning they keep more money in-house, passing less on to their partners

Cloud Channel Summit 2015 | @rhipecloud #RCCS15

Service

Provider

Best

Practice

Service Provider Best Practice Framework

Business Strategy (Commercialisation)

Delivery Strategy (Consumption)

Platform Strategy (Enablement)

Research Strategy (Innovation)

IaaS Example

Business Strategy (Commercialisation)

Delivery Strategy (Consumption)

Platform Strategy (Enablement)

Research Strategy (Innovation)

Moving up the stack

SI Example

Business Strategy (Commercialisation)

Delivery Strategy (Consumption)

Platform Strategy (Enablement)

Research Strategy (Innovation)

Own your customers journey

rhipe summary

* Powered by IT

Business

Solutions

Service

Based

Holistic

Notabout a

product or

program

Notabout

Cloud, Big

Data etc.

Isabout businesses changing

the IT agenda and demanding

Call to action

Be AGILE

Dare to be DIFFERENT

Stay RELEVANT

Cloud Channel Summit 2015 | @rhipecloud #RCCS15

enquiries.th@rhipe.com