SVPMA: Elevating from Consumer to Mission Critical Value

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Elevating from Consumer to Mission Critical ValueBrian Cox

Sr. Director of Marketing, SanDisk Enterprise Storage Solutions

Silicon Valley Product Management Association

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Forward-Looking Statements

During our meeting today we may make forward-looking statements.

Any statement that refers to expectations, projections or other characterizations of future events or circumstances is a forward-looking statement, including those relating to market position, market growth, product sales, industry trends, supply chain, future memory technology, production capacity, production costs, technology transitions and future products. This presentation contains information from third parties, which reflect their projections as of the date of issuance.

Actual results may differ materially from those expressed in these forward-looking statements due to factors detailed under the caption “Risk Factors” and elsewhere in the documents we file from time to time with the SEC, including our annual and quarterly reports.

We undertake no obligation to update these forward-looking statements, which speak only as of the date hereof.

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Life Examples Elevating to Critical Value

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A Number of Companies Have Been Successful

CONSUMER MISSION CRITICAL

Intel

Microsoft

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A Number of Companies Have Struggled


Sony

Nokia

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A Number of Companies Are Aspiring


Dropbox

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Dropbox’s Enterprise Shift is the Hardest Thing It’s Ever Done

http://venturebeat.com/2013/08/13/dropbox-the-enterprise/

—VentureBeat August 13, 2013

“Dropbox wants to take over the enterprise, but one thing stands in its way: Dropbox itself.”

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Given that SanDisk has a very strong brand in Consumer products, how can this be extended to Enterprise IT?

A Global Brand Leader in Consumer Flash Storage Solutions

NPD Estimate, Nov., ‘13. Estimates of the memory card & USB markets from NPD (Nov. ‘13) and GfK Retail and Technology, Sep., ‘13.

All Leading Smartphone & Tablet Manufacturers use SanDisk

SanDisk Client SSDs Used by All Leading PC Manufacturers

Retail: The Leading Brand of Flash in Key Markets

#1 Global Retail Revenue Share

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Index of Percent Definitely Would Consider/Definitely Would Buy

94

109

115

130

66

51

156

Comp Set Avg

Western Digital

Toshiba

Seagate

Hitachi

Fusion IO

SanDisk

Index of Percent Definitely Would Consider

Flash/SSD’s and Buying Intentions Quadrant

Comp Set Avg

SanDisk

Fusion IO

Hitachi

SeagateToshiba

Western Digital

0

20

40

60

80

100

120

140

160

180

200

220

240

0 20 40 60 80 100 120 140 160 180 200 220 240

Comp Set Avg. Definitely Would Consider

Co

mp

Set

Avg

. Def

init

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Wo

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y

Tech Buyer Intelligence Reports | Spring 2013, Wave Two

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Lower prices afford little or no individual customer nurturing

High prices with extensive nurturing and long sales cycle

Keys to Success in Consumer versus Mission Critical

MISSION CRITICAL ENTERPRISECONSUMER

Source: http://svpg.com/moving-from-enterprise-to-consumer/

• Nearly All about the Product (and scale)

• Supported by online marketing

• Must be intuitively easy

• As much about the Sales organization as the Product

• Supported by Field Engineers

• Product requires training and integration with existing gear

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Requires convincing the End UserRequires convincing

multiple stakeholders

Managing the Buyer Personas

MISSION CRITICAL ENTERPRISECONSUMER

http://www.mindtheproduct.com/2013/02/consumer-vs-enterprise-product-management/

• End User driven

• Influenced by advertising and possibly consumer sites

• Purchasing Department driven, but influenced by End User stakeholders

• Influenced by Sales Reps, industry studies and community of experts

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Do It Right: Go Back to the Basics

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Enterprise Customer Mix Is Changing!HDD and SSD TBs Shipped by Enterprise Consumption Categories

Source: IDC “New and Growing Channels for Storage Industry Terabyte Shipments” Mar 2013 - Doc # 239953

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are the Enterprise SSD Customers?

Enterprise Application Software Vendors: SAP, Oracle, Microsoft, VMware…

Line of Business/Function Owners: Manufacturing, Sales, Finance, HR, etc.

Traditional OEM Server & Storage Array Vendors: IBM, Dell, NetApp, etc.

Growing Web 2.0 & Cloud Computing companies: Google, Yahoo, eBay, etc.

Traditional Enterprise Data Centers: General Motors, Texaco, AAA, IRS, etc.

Dir

ect

In

dir

ect

In

flu

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to Reach the Customer: Routes to Market

Building a direct to End Customer relationship is a competitive advantage• Enables SSD vendor to create and manage perceptions with the End Customer segment

• Customer knowledge, support & trust are a significant barrier to new entrants

• Direct, unfiltered feedback on pain points, growth areas to innovate ahead of OEMs and competition

• Platform to grow business, extend into new market segments

• Risks: This business model has high S&M, so must maintain higher ASP units and profit margins, moderate R&D as % of OpEx

TRADITIONAL ROUTE

EMERGING ROUTE

SSD Vendor OEM End Customer

End CustomerOEMSSD Vendor

INFLUENCE

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to Reach the Customer:Build Awareness

Advertising and Social Media • Online, Print, External (billboards)• Blogs, Twitter, LinkedIn, SpiceWorks, Wikipedia, SlideShare, etc.

News Articles and Product Reviews• Tech enthusiast press (SSD Review, Tom’s Hardware, etc.)• IT Decision Maker press (Computerworld, InformationWeek, etc.)• Business press (WSJ, Bloomberg, NY Times, SF Chronicle, etc.)

Industry Analyst coverage• Gartner, IDC, Forrester, etc.

17Source: KnowIT Information System, Prof. Michael Goul, Arizona State University

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to Determine the Level to Staff the Team

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Competitor A $135 $53 62 39 23 1.7 $16 12% $3.5

Competitor B $440 $79 387 200 187 1.1 $101 23% $2.2

Competitor C $221 375 194 181 1.1 $99 45% $1.1

Competitor D $191 $66 115 66 49 1.3 $27 14% $2.9

Competitor E $503 $151 260 142 118 1.2 $72 14% $3.5 Mature / Harvest

Growth/land grab

OEM centric

Declining revenue

Industry benchmarking for staffing the Sales and Marketing effort

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Segment Sub-segment Database MemCached Virtualization Nearline Archival Workstation

Transaction (OLTP)

Analytics

HyperScaleDatacenter

Web 2.0 High High High High

Cloud High High

Large Enterprise High High High

Medium Enterprise High High

Small Enterprise

Pro-sumer Medium

…

to Target: End User Segmentation / Focus – Go To Market

Requirements:

• Dedicated business/tech sales per major account

• Dedicated support team, on par with Tier 1 OEM

Requirements:

• OEM co-marketing to scale efficiently

Requirements:

• Build direct engagement, by vertical/geo

Need right product, partners, proof points, reach, sales, fulfillment, support to win in each segment

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Segment Sub-segment Database MemCached Virtualization Nearline Archival Workstation

Transaction (OLTP)

Analytics

HyperScaleDatacenter

Web 2.0 High High High High

Cloud High High

Large Enterprise High High High

Medium Enterprise High High

Small Enterprise

Pro-sumer Medium

…

to Target: End User Segmentation / Focus – Product

Geo Vertical

Finance Media HPC Telco …

US

EMEA

China

Japan

…

Flash Usage Storage Model

Server Ext. Storage

Cache

Primary Storage

Where Marketing team will further define

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Do They Buy?

• OEM System Vendors• Procurement & Qualification Engineers Acquisition Cost & Specs• System Architect & Business Leaders App Performance, Reliability, TCO

• Traditional Data Centers• Data Center Managers Meeting SLAs through Performance & Uptime• Line of Business owners Meeting business objectives, IT as enabler

• Web 2.0 & Cloud Data Centers• Acquisition & Operating Cost• Acquisition & Operating Cost• Acquisition & Operating Cost

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Index of Brand Selection, Marcomm and Sales Effectiveness Criteria Regression to Likely to Buy

307

185 167139 139 123 116 113 94 91 88 75

283 270

171

122 121 120 10677 72 72 63 52

Flash/SSD’s Key Criteria That Drive Intentions—IT and Line-of-Business

IT Criteria

Line-of-Business Criteria

Product Evaluations**

White Papers** ROI* TCO* Customer Testimonials**

General Events/Conferences*

Post-Purchase Support*

3rd Party Rec.* Value* Case Studies** Ease of Doing Business*

Ease of Use*

Case Studies** Thought Leadership*

Post-Purchase Support*

Quality/Reliability/Uptime*

Industry Knowledge**

*

Product Evaluations**

Bringing in Experts***

Ease of Integration*

Support by My VAR/Reseller*

Sales Creativity***

Technical Knowledge**

*

TCO*

Sales Effectiveness

Marketing Effectiveness

Key Purchase CriteriaB BBA A

A B B B BB B

Source: Tech Buyer Intelligence Reports | Spring 2013, Wave Two

Information do Buyers Need to Buy

Source: Silicon Valley Product Management Association| March 5, 2014 Milpitas, CA

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to Pursue Which Customers

• Focus on a critical few solutions and locations where we can build a full value chain• Horizontal and Vertical solutions where our products demonstrate

a clear benefit

• When we see a sizeable Total Addressable Market (TAM)

• When the current pain point of the customers compels them to invest in adopting a new approach

• When we have established ISV certifications and partnerships

• In geographic locations where partner and Sales and Field Engineers are staffed and trained in the enterprise products, ISV solutions and the language customers use to describe their business

• Achieve success, then expand

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8 Fundamental Keys to Success

1. Ensure your CxO suite and Board of Directors are committed to theEnterprise business for the long haul and goals are aligned

You have to earn the trust of Enterprise customers – they are making 5-10 year commitments when buying and integrating your product or service into their infrastructure

Make sure everyone has a common definition of Enterprise

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2. Trying to grow Enterprise “DNA” internally is difficult and will take many, many years to get it right.

It is easier to import Enterprise DNA by acquiring some existing Enterprise providers or staff and setting them up to run their own operations.

Avoid the temptation to functionalize the operations out of the broader company, e.g. developing both Consumer and Enterprise software out of the same team, doing both Consumer and Enterprise sales out of the same team, etc.

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3. Pick a business that has an expanding customer need

e.g. Growing economic region, expanding industry, underserved market

4. Ensure you have a technology or service that is sustainably superiorto the status quo or alternatives

e.g. Higher performance, more reliable/secure, better value

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5. In Enterprise, the Sales infrastructure is just as important as the Product. Enterprise requires a different mindset than Consumer.

Best to hire Sales talent from other proven Enterprise providers rather than trying to re-train existing Consumer Sales folks

6. Enterprise Channel and ISV Partners are a key catalyst to success

They already know the Enterprise customers and can provide a halo of credibility when they promote and certify your offering

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7. Cover all the right communication avenues to build awareness and influence

Gain trust with the customer’s CxO suite/Business Unit leadership and those that approve the purchase in addition to those who will actually use the product or service

There are many stakeholders in the mission critical enterprise and each has their own trusted information sources

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8. Focus on selected markets and build success in steps

You can’t conquer the world successfully all at once.

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To Achieve Critical Value is to Make the Right Extension

NOTTHIS

THIS

SVPMA: Elevating from Consumer to Mission Critical Value

Technology

Transcript of SVPMA: Elevating from Consumer to Mission Critical Value