Business Partner Success In the Era of the Third Platform Marilyn Carr, Channels and Alliances...
-
Upload
lesley-blake -
Category
Documents
-
view
220 -
download
5
Transcript of Business Partner Success In the Era of the Third Platform Marilyn Carr, Channels and Alliances...
![Page 1: Business Partner Success In the Era of the Third Platform Marilyn Carr, Channels and Alliances Research.](https://reader033.fdocuments.in/reader033/viewer/2022051620/56649ec05503460f94bcb1a7/html5/thumbnails/1.jpg)
Business Partner SuccessIn the Era of the Third Platform
Marilyn Carr, Channels and Alliances Research
![Page 2: Business Partner Success In the Era of the Third Platform Marilyn Carr, Channels and Alliances Research.](https://reader033.fdocuments.in/reader033/viewer/2022051620/56649ec05503460f94bcb1a7/html5/thumbnails/2.jpg)
© IDC Visit us at IDC.com and follow us on Twitter: @IDC 2
Agenda The Third Platform What’s The Problem Why You Have To Go To The Cloud
![Page 3: Business Partner Success In the Era of the Third Platform Marilyn Carr, Channels and Alliances Research.](https://reader033.fdocuments.in/reader033/viewer/2022051620/56649ec05503460f94bcb1a7/html5/thumbnails/3.jpg)
© IDC Visit us at IDC.com and follow us on Twitter: @IDC 3
The Third Platform
![Page 4: Business Partner Success In the Era of the Third Platform Marilyn Carr, Channels and Alliances Research.](https://reader033.fdocuments.in/reader033/viewer/2022051620/56649ec05503460f94bcb1a7/html5/thumbnails/4.jpg)
The Third Platform
![Page 5: Business Partner Success In the Era of the Third Platform Marilyn Carr, Channels and Alliances Research.](https://reader033.fdocuments.in/reader033/viewer/2022051620/56649ec05503460f94bcb1a7/html5/thumbnails/5.jpg)
How is the third platform evolving?
Source: IDC
![Page 6: Business Partner Success In the Era of the Third Platform Marilyn Carr, Channels and Alliances Research.](https://reader033.fdocuments.in/reader033/viewer/2022051620/56649ec05503460f94bcb1a7/html5/thumbnails/6.jpg)
Changing Roles
By 2016,
LOB executives
will be directly involved in
80% of new IT investments
![Page 7: Business Partner Success In the Era of the Third Platform Marilyn Carr, Channels and Alliances Research.](https://reader033.fdocuments.in/reader033/viewer/2022051620/56649ec05503460f94bcb1a7/html5/thumbnails/7.jpg)
8
More closely aligned today than five years ago
About the same
Less aligned today than five years ago
0% 20% 40% 60% 80% 100%
LOBIT
Current State of Alignment of IT and Business
Source: IDC Canada BITAP n1 2014 Survey, February 2014 - n = 200
![Page 8: Business Partner Success In the Era of the Third Platform Marilyn Carr, Channels and Alliances Research.](https://reader033.fdocuments.in/reader033/viewer/2022051620/56649ec05503460f94bcb1a7/html5/thumbnails/8.jpg)
The Cloud Opportunity
9
the growth of the IT industry overall
5X
![Page 9: Business Partner Success In the Era of the Third Platform Marilyn Carr, Channels and Alliances Research.](https://reader033.fdocuments.in/reader033/viewer/2022051620/56649ec05503460f94bcb1a7/html5/thumbnails/9.jpg)
10
The Cloud in Canada
17%CAGR
4%CAGR
$1,134
$9,557
73% of Top Executives agree that Individual departments have a
much greater role in new technology selection
than 2 years ago
C$M
![Page 10: Business Partner Success In the Era of the Third Platform Marilyn Carr, Channels and Alliances Research.](https://reader033.fdocuments.in/reader033/viewer/2022051620/56649ec05503460f94bcb1a7/html5/thumbnails/10.jpg)
11
Perceived Business Value of Cloud / Mobile
Mobile Cloud Social Big Data0%
10%
20%
30%
40%
50%
60%
70%
80%
37%28% 25%
18%
30%
14%12%
10%
Very high business value
High business value
Source: IDC Canada BITAP n1 2014 Survey, February 2014 - n = 200
![Page 11: Business Partner Success In the Era of the Third Platform Marilyn Carr, Channels and Alliances Research.](https://reader033.fdocuments.in/reader033/viewer/2022051620/56649ec05503460f94bcb1a7/html5/thumbnails/11.jpg)
No pla
ns
No pla
ns b
ut w
ill ev
aluat
e in
18 m
onth
s
Evalua
ting
Mob
ile A
pplic
ation
Stra
tegy
Wor
king
on 1
st m
obile
app
imple
men
tatio
n
Have
launc
hed
first
mob
ile a
pplic
ation
Accele
ratin
g Pac
e of
Dev
elopm
ent w
ith 2
nd o
r 3rd
Mob
ile A
pp.
Intro
ducin
g inn
ovat
ing d
evelo
pmen
t tec
hniqu
es -5%
0%5%
10%15%20%25%30%
Source: IDC's 1H13 Western European Enterprise Mobility CIO Survey. Sample = 375
What best describes your firm's maturity regarding mobile app development and/or deployment?
+ mobile app maturity
12
We’re Just Beginning for Mobile
![Page 12: Business Partner Success In the Era of the Third Platform Marilyn Carr, Channels and Alliances Research.](https://reader033.fdocuments.in/reader033/viewer/2022051620/56649ec05503460f94bcb1a7/html5/thumbnails/12.jpg)
13
Cloud First, Mobile First
Among those who said Cloud Computing provides high or very high
business value 82% also said the same of
Mobile Technologies.
Source: IDC Canada BITAP n1 Survey, February 2013
![Page 13: Business Partner Success In the Era of the Third Platform Marilyn Carr, Channels and Alliances Research.](https://reader033.fdocuments.in/reader033/viewer/2022051620/56649ec05503460f94bcb1a7/html5/thumbnails/13.jpg)
Canadian IoT Installed Base
14Source: IDC Canada, preliminary estimates, May 2014
$5.6B
$21.1B
2013: 28M Units 2018: 114M Units
33% CAGR
![Page 14: Business Partner Success In the Era of the Third Platform Marilyn Carr, Channels and Alliances Research.](https://reader033.fdocuments.in/reader033/viewer/2022051620/56649ec05503460f94bcb1a7/html5/thumbnails/14.jpg)
© IDC Visit us at IDC.com and follow us on Twitter: @IDC 15
So What’s The Problem?
![Page 15: Business Partner Success In the Era of the Third Platform Marilyn Carr, Channels and Alliances Research.](https://reader033.fdocuments.in/reader033/viewer/2022051620/56649ec05503460f94bcb1a7/html5/thumbnails/15.jpg)
16© IDC Visit us at IDC.com and follow us on Twitter: @IDC
![Page 16: Business Partner Success In the Era of the Third Platform Marilyn Carr, Channels and Alliances Research.](https://reader033.fdocuments.in/reader033/viewer/2022051620/56649ec05503460f94bcb1a7/html5/thumbnails/16.jpg)
17© IDC Visit us at IDC.com and follow us on Twitter: @IDC
The Marshmallo
w Test
Stanford 1970, Walter Mischel
Repeated around the world
Studies on Delayed Gratification with children (4-6 yrs)
![Page 17: Business Partner Success In the Era of the Third Platform Marilyn Carr, Channels and Alliances Research.](https://reader033.fdocuments.in/reader033/viewer/2022051620/56649ec05503460f94bcb1a7/html5/thumbnails/17.jpg)
18© IDC Visit us at IDC.com and follow us on Twitter: @IDC
The Deal: 1 Marshmallow
now Or 2 if you wait
![Page 18: Business Partner Success In the Era of the Third Platform Marilyn Carr, Channels and Alliances Research.](https://reader033.fdocuments.in/reader033/viewer/2022051620/56649ec05503460f94bcb1a7/html5/thumbnails/18.jpg)
19© IDC Visit us at IDC.com and follow us on Twitter: @IDC
The Deal: 1 Marshmallow
now Or 2 if you wait
![Page 19: Business Partner Success In the Era of the Third Platform Marilyn Carr, Channels and Alliances Research.](https://reader033.fdocuments.in/reader033/viewer/2022051620/56649ec05503460f94bcb1a7/html5/thumbnails/19.jpg)
20© IDC Visit us at IDC.com and follow us on Twitter: @IDC
The Deal: 1 Marshmallow
now Or 2 if you wait
2/3 of kids ate the Marshmallow
![Page 20: Business Partner Success In the Era of the Third Platform Marilyn Carr, Channels and Alliances Research.](https://reader033.fdocuments.in/reader033/viewer/2022051620/56649ec05503460f94bcb1a7/html5/thumbnails/20.jpg)
21© IDC Visit us at IDC.com and follow us on Twitter: @IDC
The Follow-up: ~18 years later Children who waited
had better life outcomes
SAT Scores Education BMI
![Page 21: Business Partner Success In the Era of the Third Platform Marilyn Carr, Channels and Alliances Research.](https://reader033.fdocuments.in/reader033/viewer/2022051620/56649ec05503460f94bcb1a7/html5/thumbnails/21.jpg)
22© IDC Visit us at IDC.com and follow us on Twitter: @IDC
So what does this have to do with
IT Solution Providers?
![Page 22: Business Partner Success In the Era of the Third Platform Marilyn Carr, Channels and Alliances Research.](https://reader033.fdocuments.in/reader033/viewer/2022051620/56649ec05503460f94bcb1a7/html5/thumbnails/22.jpg)
© IDC Visit us at IDC.com and follow us on Twitter: @IDC 23
Why You Have To Go To The Cloud
![Page 23: Business Partner Success In the Era of the Third Platform Marilyn Carr, Channels and Alliances Research.](https://reader033.fdocuments.in/reader033/viewer/2022051620/56649ec05503460f94bcb1a7/html5/thumbnails/23.jpg)
24
Why Go to the Cloud
Growth
Profitability
Company Valuation
Future Viability
![Page 24: Business Partner Success In the Era of the Third Platform Marilyn Carr, Channels and Alliances Research.](https://reader033.fdocuments.in/reader033/viewer/2022051620/56649ec05503460f94bcb1a7/html5/thumbnails/24.jpg)
25
Why Go to the Cloud
Growth
Profitability
Company Valuation
Future Viability
![Page 25: Business Partner Success In the Era of the Third Platform Marilyn Carr, Channels and Alliances Research.](https://reader033.fdocuments.in/reader033/viewer/2022051620/56649ec05503460f94bcb1a7/html5/thumbnails/25.jpg)
26
Shift from Servers to Services
IDC predicts that service providers will account for over 27% of total server shipments by 2016
A brand new Hyperscale Market has emerged
© IDC Visit us at IDC.com and follow us on Twitter: @IDC
![Page 26: Business Partner Success In the Era of the Third Platform Marilyn Carr, Channels and Alliances Research.](https://reader033.fdocuments.in/reader033/viewer/2022051620/56649ec05503460f94bcb1a7/html5/thumbnails/26.jpg)
27
Shift from On-Prem to Cloud Software
About 90% of net new commercial apps will be developed specifically for Cloud in 2014
Over 92% of companies surveyed said they had plans to shift their IT budget towards Public Cloud
Source: IDC’s CloudTrack Survey, 2012
![Page 27: Business Partner Success In the Era of the Third Platform Marilyn Carr, Channels and Alliances Research.](https://reader033.fdocuments.in/reader033/viewer/2022051620/56649ec05503460f94bcb1a7/html5/thumbnails/27.jpg)
The Cloud Consumption Model Represents a Huge Shift
70% of CIOs will embrace a “cloud first” strategy in 2016
CIOs and CFOs will move to “zero capital” and transform the
IT financial model
By 2016, it is predicted that nearly 25% of all software revenue will be subscription based.
IDC Predictions:
![Page 28: Business Partner Success In the Era of the Third Platform Marilyn Carr, Channels and Alliances Research.](https://reader033.fdocuments.in/reader033/viewer/2022051620/56649ec05503460f94bcb1a7/html5/thumbnails/28.jpg)
29
Reality
“We would probably make more money if we could keep everybody on on-premise.
But that's not going to happen.”
![Page 29: Business Partner Success In the Era of the Third Platform Marilyn Carr, Channels and Alliances Research.](https://reader033.fdocuments.in/reader033/viewer/2022051620/56649ec05503460f94bcb1a7/html5/thumbnails/29.jpg)
30
Reality
“I think that if we don't partner with [our vendor]
and do this, then somebody else is going to
take our customers.”
![Page 30: Business Partner Success In the Era of the Third Platform Marilyn Carr, Channels and Alliances Research.](https://reader033.fdocuments.in/reader033/viewer/2022051620/56649ec05503460f94bcb1a7/html5/thumbnails/30.jpg)
31
Reality
For us to compete in two years, if we don’t have a few references and a few
case studies and a few like, ‘yeah, we’ve done it and
here are the scars,’ we’re going to lose those
deals.”
![Page 31: Business Partner Success In the Era of the Third Platform Marilyn Carr, Channels and Alliances Research.](https://reader033.fdocuments.in/reader033/viewer/2022051620/56649ec05503460f94bcb1a7/html5/thumbnails/31.jpg)
32
Reality
“Cloud is the Future.”
“The stats on the market are clear.”
![Page 32: Business Partner Success In the Era of the Third Platform Marilyn Carr, Channels and Alliances Research.](https://reader033.fdocuments.in/reader033/viewer/2022051620/56649ec05503460f94bcb1a7/html5/thumbnails/32.jpg)
33
Why Go to the Cloud
Growth
Profitability
Company Valuation
Future Viability
![Page 33: Business Partner Success In the Era of the Third Platform Marilyn Carr, Channels and Alliances Research.](https://reader033.fdocuments.in/reader033/viewer/2022051620/56649ec05503460f94bcb1a7/html5/thumbnails/33.jpg)
© IDC Visit us at IDC.com and follow us on Twitter: @IDC 34
Cloud Partners OutperformRevenue Growth %
<10% Cloud 10% to <20% Cloud 20% to <50% Cloud 50% + Cloud Revenue
7%8%
16%
14%
Revenue Growth %
Source: Microsoft eBook, IDC 2014, n=670
![Page 34: Business Partner Success In the Era of the Third Platform Marilyn Carr, Channels and Alliances Research.](https://reader033.fdocuments.in/reader033/viewer/2022051620/56649ec05503460f94bcb1a7/html5/thumbnails/34.jpg)
35
Why Go to the Cloud
Growth
Profitability
Company Valuation
Future Viability
![Page 35: Business Partner Success In the Era of the Third Platform Marilyn Carr, Channels and Alliances Research.](https://reader033.fdocuments.in/reader033/viewer/2022051620/56649ec05503460f94bcb1a7/html5/thumbnails/35.jpg)
36
Cloud Partners OutperformGross Profit %
<10% Cloud 10% to <20% Cloud 20% to <50% Cloud 50% + Cloud Revenue
24% 26%
33%
42%Gross Profit %
Source: Microsoft eBook, IDC 2014, n=670
![Page 36: Business Partner Success In the Era of the Third Platform Marilyn Carr, Channels and Alliances Research.](https://reader033.fdocuments.in/reader033/viewer/2022051620/56649ec05503460f94bcb1a7/html5/thumbnails/36.jpg)
37© IDC Visit us at IDC.com and follow us on Twitter: @IDC
Cloud Partners Outperform
Cloud is not the only thing causing these results
IDC believes the best performing partners are adopting Cloud first, and faster
![Page 37: Business Partner Success In the Era of the Third Platform Marilyn Carr, Channels and Alliances Research.](https://reader033.fdocuments.in/reader033/viewer/2022051620/56649ec05503460f94bcb1a7/html5/thumbnails/37.jpg)
38
Cloud Profitability
Revenue
Cost of Goods Sold
Gross Profit
SG&A Expenses
Operating Profit
$
Cost of Goods Sold
Gross Profit
![Page 38: Business Partner Success In the Era of the Third Platform Marilyn Carr, Channels and Alliances Research.](https://reader033.fdocuments.in/reader033/viewer/2022051620/56649ec05503460f94bcb1a7/html5/thumbnails/38.jpg)
39
Cloud Profitability Example Cancom HQ Munich, Germany Formed in 1992 ~600M € VAR Transitioning to Recurring
Revenue
© IDC Visit us at IDC.com and follow us on Twitter: @IDC
![Page 39: Business Partner Success In the Era of the Third Platform Marilyn Carr, Channels and Alliances Research.](https://reader033.fdocuments.in/reader033/viewer/2022051620/56649ec05503460f94bcb1a7/html5/thumbnails/39.jpg)
40
Cloud Profitability Example
Margin (%) * Estimated Hauck & Aufhauser
![Page 40: Business Partner Success In the Era of the Third Platform Marilyn Carr, Channels and Alliances Research.](https://reader033.fdocuments.in/reader033/viewer/2022051620/56649ec05503460f94bcb1a7/html5/thumbnails/40.jpg)
41
Why Go to the Cloud
Growth
Profitability
Company Valuation
Future Viability
![Page 41: Business Partner Success In the Era of the Third Platform Marilyn Carr, Channels and Alliances Research.](https://reader033.fdocuments.in/reader033/viewer/2022051620/56649ec05503460f94bcb1a7/html5/thumbnails/41.jpg)
42
Company Valuations are Higher for Recurring Revenue
© IDC Visit us at IDC.com and follow us on Twitter: @IDC
“And the stock market values companies with
more regular cashflow more highly.
Even if the revenues were the same, the costs the same, the profits the same,
moving from a variable revenue stream such as upgrades to a more regular one as in subscriptions should boost the value
of Adobe itself.
Tim Worstall ContributorForbes
June 18, 2013
![Page 42: Business Partner Success In the Era of the Third Platform Marilyn Carr, Channels and Alliances Research.](https://reader033.fdocuments.in/reader033/viewer/2022051620/56649ec05503460f94bcb1a7/html5/thumbnails/42.jpg)
43
Company Valuations are Higher for Recurring Revenue
![Page 43: Business Partner Success In the Era of the Third Platform Marilyn Carr, Channels and Alliances Research.](https://reader033.fdocuments.in/reader033/viewer/2022051620/56649ec05503460f94bcb1a7/html5/thumbnails/43.jpg)
© IDC Visit us at IDC.com and follow us on Twitter: @IDC 44
Company Valuations are Higher for Recurring Revenue
“There’s lots of rules of thumb. Recurring revenue companies are at a 7X multiple, an 8X multiple, 6X… Very
good multiples.
And non-recurring are 3X, 4X, 5X.
You do get a much higher multiple when you have high recurring
revenue. For sure.”
Jim Estill, Former CEO, Synnex Canada Current Venture CapitalistCanrock Ventures
![Page 44: Business Partner Success In the Era of the Third Platform Marilyn Carr, Channels and Alliances Research.](https://reader033.fdocuments.in/reader033/viewer/2022051620/56649ec05503460f94bcb1a7/html5/thumbnails/44.jpg)
Company Valuations are Higher for Recurring Revenue
Potential Valuation
Traditional Revenue Business
Recurring Revenue Business
Revenue Multiple 0.2 to 1.5 times 2 to 6 times
EBITDA Multiple 2 to 2.5 times 5 to 14 times
Source: IDC Partner Valuation Study 2014
“For the average sub $5 million a year VAR, it’s tough to get past three times EBITDA“ - Brent Twist, Encore Business Solutions
![Page 45: Business Partner Success In the Era of the Third Platform Marilyn Carr, Channels and Alliances Research.](https://reader033.fdocuments.in/reader033/viewer/2022051620/56649ec05503460f94bcb1a7/html5/thumbnails/45.jpg)
46© IDC Visit us at IDC.com and follow us on Twitter: @IDC
Focus on the future revenue streams that
you can build Don’t focus on the marshmallow in
front of you
And may you build a WEALTH of
Marshmallows
Thank You…
![Page 46: Business Partner Success In the Era of the Third Platform Marilyn Carr, Channels and Alliances Research.](https://reader033.fdocuments.in/reader033/viewer/2022051620/56649ec05503460f94bcb1a7/html5/thumbnails/46.jpg)
Business Partner SuccessIn the Era of the Third Platform
Marilyn Carr, Channels and Alliances Research