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© 2011 CloudOne2
Agenda About CloudOne
Cloud Styles
Cloud Layers
Inside the Virtual Private Cloud
Connecting to the Virtual Private Cloud
Cloud Drivers
Cloud Buyers
Cloud Success Factors
Cloud Security
Peak Concurrent User Licensing
Peak Concurrent User Licensing: The Hybrid Model
Cloud Sales Process Steps
Analyzing Total Cost of Ownership
Analyzing Total Cost of Ownership: Examples
IBMers Get More Commissions When Using CloudOne
© 2011 CloudOne
Who is CloudOne?
CloudOne isThe first and leading provider of IBM Rational software in the cloud.
The partner with the most flexible licensing options:you own it, you buy it or you “rent” it through Software-as-a-Servicein whatever combination makes sense.
A company with the largest consortium of partners who help you move to the cloud.
Rational + Cloud = Better Together
© 2011 CloudOne4
Cloud Styles
Public Clouds
“Public Utility” bring any
workload, your own software.Amazon, Google,
IBM
Private Clouds
VirtualPrivate Clouds
Manage your own internal
resources like a cloud.
Consulting Service
Companies
Your own, new, private
datacenter in the cloud.
Hybrid Cloud
Intercloud
© 2011 CloudOne5
Cloud Layers
Infrastructure as a Service (IaaS)Server, Storage, Network
Platform as a Service (PaaS)Middleware, Databases, OS
Software as a Service (SaaS)Application Software and Tools
Con
su
ltin
g S
erv
ices
Tran
sform
ati
on &
In
novati
on
Increasing value & differentiation as you move up
MigrationServices
MigrationServices
MigrationServices
© 2011 CloudOne
Inside the Virtual Private Cloud
Network–Fully redundant–VLAN trunking and
encapsulation
Server–Intel based blades–Redundant memory with
failover
Operating System–VMware ESXi hypervisor–Windows guest OS–Linux guest OS
Storage–Storage area network–Dynamically resizable
Firewall
Edge network
Blades
SAN switching devices
SAN
© 2011 CloudOne7
Connecting to a Virtual Private Cloud
Client and virtual servers connected to Internet, but
not to each other.
Cisco VPN makes secure “pipe” through Internet so Client can
see/access server (through browser, internet protocols)
Desktop software can be accessed through Remote Desktop Clients
or through Virtual Desktop Integration (VDI)
© 2011 CloudOne
ElasticGlobal EconomicalOne common
environment foreveryone,
everywhere,anytime.
Real collaboration,one project view,no access holes.
Scales up(and down) real-time as
your businesschanges.
Dynamic datacenter,always ready to scale,
no “shelfware”.
Eliminateswaste and gets the most fromyour project’s
budget.
No startup costs,billing for actual use,no capital approvals.
Cloud Drivers
© 2011 CloudOne
Cloud Buyers
IT Finance
Users
“Joe”
“Buck”“Sally”
Joe - Tool User• Wants to have access to new technology• Successful when approaching Buck• Fails when approaching Sally
© 2011 CloudOne
Cloud Buyers
IT Finance
Users
“Joe”
“Buck”“Sally”
Joe - Tool User• Wants to have access to new technology• Successful when approaching Buck• Fails when approaching Sally
Buck - Procurement• Wants cost savings• Successful when approaching Joe• Fails when approaching Sally
© 2011 CloudOne
Cloud Buyers
IT Finance
Users
“Joe”
“Buck”“Sally”
Joe - Tool User• Wants to have access to new technology• Successful when approaching Buck• Fails when approaching Sally
Buck - Procurement• Wants cost savings• Successful when approaching Joe• Fails when approaching Sally
Sally - Corporate IT• Has Security/Trust Issues – sees cloud as
“outsourcing”• Successful when approaching Joe• Successful when approaching Buck
© 2011 CloudOne
Cloud Buyers
IT Finance
Users
“Joe”
“Buck”“Sally”
Joe - Tool User• Wants to have access to new technology• Successful when approaching Buck• Fails when approaching Sally
Buck - Procurement• Wants cost savings• Successful when approaching Joe• Fails when approaching Sally
Sally - Corporate IT• Has Security/Trust Issues – sees cloud as
“outsourcing”• Successful when approaching Joe• Successful when approaching Buck
MarketingEfforts should target “Sally”Other buyers easier if Sally buys in
© 2011 CloudOne14
Cloud Success Factors
Identifying “Sally”, “Buck” and “Joe” early in the sales process, and tailoring messages and sales process to their unique needs:– Sally (IT) : Security, operational concerns, architecture– Buck (Procurement): Clear TCO and cost savings– Joe (User): Improved performance, accessibility, simplicity, globalization
Already IBM Tool user (or about to be)– Difficult to sell to “whitespace” without additional marketing presence,
resources– Existing install base already “sold” on value to cost ratio
The heart of security is trust–Many customers with lax security compared to CloudOne– Heart of security concern mitigation is personal relationship with CloudOne
team
Face to Face is required for deal closure– Creates interpersonal relationship necessary to overcome trust issues– Differentiates CloudOne solution from pure web-based vendors
© 2011 CloudOne
CloudOne Security
Data Center
Rack
Network Routing
Storage Unit
Volumes
Image
Blade Enclosure
Blade Server
Hypervisor
OS/Server Image
Uninterrupted Cisco VPN “Envelope”From Desktop to Rational Server
All Layers 1..n (1..n Data Centers, 1..n Racks, etc.)
© 2011 CloudOne18
Peak Concurrent User Licensing: The Hybrid Model
You can afford this many
licenses
But need this many
Result:Look for cheaper, less capable solutions
You can afford this many
licenses
“Rent” these licenses
Result:Happy user of great Rational software
Maximize your budget by “buying” licenses for everyday users and “renting” for the peaks and unknowns.
“Wrapping” Software as a Service around your perpetual licenses and you solve these challenges:
• Limited capital budget• No hardware resources/budget• No IT support resources• Lack of expertise• Short time frame• Need for flexibility• Want to try before buying• Have a short term project
© 2011 CloudOne
1Prospect
2Lead
3Qualification
4Assess
To Pass Gate:Have Valid Contact
InfoInitial Qualifying
Call Set
Uses:E-mail Template
To Pass Gate:Complete
Qualifying CallRecorded in SF.COM
Decision to Continue
Uses:About CloudOne
PDFQualifying Questions
To Pass Gate:Identified Triangle 3
(T3)Meetings Set with
T3Recorded Reasons
to ActRecorded Power
ChainDecision to Continue
Uses:eWeek McD (Sally)Addl. Case Studies
(Sally)TCO Whitepaper
(Buck)Recorded Demo
(Joe)
To Pass Gate:Completed T3 Calls
Refined Power Chain
Budget/Authority (Buck)
Architecture Mtg. (Sally)
Pilot Agreement (Joe)
All recorded in SF.COM
Decision to Continue
Uses:Security
WhitepaperInfrast. Whitepaper
Sample Arch. (Sally)
TCO Workbook (Buck)
Pilot Plan Docs (Joe)
Cloud Sales Process Steps
© 2011 CloudOne
5Propose
6Negotiate
7Implement
8Support
To Pass Gate:Complete/Doc PilotComplete/Doc Arch.
Complete/Doc Proposal
Uses:Arch. Present.
TemplateInstaCloud Templates
Reviewers GuidesProposal TemplateSaaS/Cloud Price
Wkbk
To Pass Gate:Signed Contract
Uses:MSASLA
ISSR or Partner SoW
To Pass Gate:Help Desk Orientation
Implement. Proj. Plan
Support Handoff Call
Uses:Sample Impl. Proj.
PlanHelp Desk Video/PDF
Additional Tasks:CEO Thank You &
GiftGrowth Sales Oppty
Uses:Gifts & Cards
Cloud Sales Process Steps
© 2011 CloudOne
Analyzing Total Cost of Ownership
Tangible Elements Software acquisition &
Maintenance Hardware Acquisition &
Maintenance Support Operating system software Network HW/SW Installation &
Configuration Ongoing IT support Backup systems & Disaster
Recovery Upgrade support
Intangible Elements Rapid deployment Increased user adoption Reduced support needs Improved flexibility Improved compliance Very quick provisioning Avoid shelfware
© 2011 CloudOne
Hospital has 50 total users of IBM Rational Team Concert
Quick and effective Agile implementation
Includes SaaS Floating software licenses and limits shelfware
Allocation of infrastructure and support as noted
34% savings
Cloud Rational Team Concert from CloudOne
Analyzing Total Cost of Ownership: ExamplesHospital Team Concert Collaboration Workbench
On Premise SaaS SavingsSoftware license $314,000 $503,000 -$189,000Software maintenance $314,000 $0 $314,000Hardware $24,668 $0 $24,668Backup hardware $24,668 $0 $24,668Hardware support $7,400 $0 $7,400OS software $1,926 $0 $1,926Network $2,500 $0 $2,500Backup power $1,200 $0 $1,200Install/config/migrate $11,250 $4,000 $7,250Ongoing IT support $112,500 $0 $112,500End-user IT support $225,000 $150,000 $75,000Training $15,000 $15,000 $0Total $1,054,112 $672,100 $382,012
© 2011 CloudOne
Electronics Manufacturer has 450 users of IBM Rational Developers Workbench including RQM, DOORS, Rhapsody, System Architect
Includes SaaS Floating software licenses and limits shelfware
Allocation of infrastructure and support as noted
Cloud Systems Workbench from CloudOne
Analyzing Total Cost of Ownership: ExamplesElectronics Manufacturer Workbench
Traditional SaaS SavingsSoftware license $960,000 $1,415,000 -$455,000Software maintenance $77,828 $0 $77,828Hardware $77,828 $0 $77,828Backup hardware $77,828 $0 $77,828Hardware support $19,485 $0 $19,485OS software $5,895 $0 $5,895Network $7,375 $0 $7,375Backup power $1,900 $0 $1,900Install/config $34,340 $0 $34,340Ongoing IT support $177,500 $0 $177,500End-user IT support $710,000 $1,315,000 -$605,000Training $45,000 $0 $45,000Total $3,077,128 $2,730,000 $347,128
© 2011 CloudOne
City uses 50 seats of IBM Rational Focal Point for project decision support
Includes SaaS Floating software licenses and limits shelfware
Allocation of infrastructure and support as noted
29% savings
Cloud Focal Point from CloudOne
Analyzing Total Cost of Ownership: ExamplesMunicipality Project Support
On Premise SaaS SavingsSoftware license $266,900 $470,785 -$203,885Software maintenance $266,900 $0 $266,900Hardware $20,968 $0 $20,968Backup hardware $20,968 $0 $20,968Hardware support $6,290 $0 $6,290OS software $1,638 $0 $1,638Network $2,175 $0 $2,175Backup power $1,020 $0 $1,020Install/config/migrate $9,560 $4,000 $5,560Ongoing IT support $95,625 $0 $95,625End-user IT support $191,250 $139,960 $51,290Training $12,750 $12,750 $0Total $896,044 $627,495 $268,549
© 2011 CloudOne
University needs to simulate 5,000 students using enrollment system
Includes SaaS licenses for virtual users & server
SaaS is elastic for “bursty” workloads like performance testing
SaaS model eliminates “shelfware”
66% savings
Cloud Performance Testing from CloudOne
Analyzing Total Cost of Ownership: ExamplesHigher Education Web Performance Test
On Premise SaaS SavingsSoftware license $65,430 $10,618 $54,812Software maintenance $0 $0 $0Hardware $18,500 $0 $18,500Backup hardware $18,500 $0 $18,500Hardware support $4,400 $0 $4,400OS software $642 $0 $642Network $1,500 $2,000 -$500Backup power $1,200 $0 $1,200Install/config $11,250 $0 $11,250Ongoing IT support $22,500 $0 $22,500End-user IT support $45,000 $30,000 $15,000Training $15,000 $15,000 $0Total $203,922 $57,618 $146,304
© 2011 CloudOne
Global Retailer uses ClearCase & ClearQuest for internal product code management
Includes SaaS Floating software licenses and limits shelfware
Allocation of infrastructure and support as noted
35% savings
Cloud ClearCase/ClearQuest from CloudOne
Analyzing Total Cost of Ownership: ExamplesRetail Internal Code Management System
On Premise SaaS SavingsSoftware license $628,000 $1,006,200 -$378,200Software maintenance $628,000 $0 $628,000Hardware $49,336 $0 $49,336Backup hardware $49,336 $0 $49,336Hardware support $14,800 $0 $14,800OS software $3,852 $0 $3,852Network $5,000 $0 $5,000Backup power $2,400 $0 $2,400Install/config/migrate $22,500 $8,000 $14,500Ongoing IT support $225,000 $0 $225,000End-user IT support $450,000 $300,000 $150,000Training $30,000 $30,000 $0Total $2,108,224 $1,344,200 $764,024
© 2011 CloudOne
Cloud hosting and SaaS enable direct correlation of cost to usage
Hybrid implementation of software (blend of perpetual & SaaS) provides “best fit”
Best utilization of knowledge resources
Simplified financial structure enables “charge back” to departments/projects
Performance testing provides substantial savings
Analyzing Total Cost of Ownership: ExamplesKey TCO Findings
© 2011 CloudOne
IBMers Get More Commissions When Using CloudOne
IBMers get paid on new license revenue–CloudOne works like any other reseller for perpetual, term and token licenses–You get sales credit and commission for anything sold that is fulfilled by CloudOne.
IBMers get paid on Software as a Service–You get sales credit on the software we buy from IBM to resell each month to your customer.–Not just in the current period, but for as long as you own that customer! –This is a new revenue stream for you: only with CloudOne!
IBMers get paid on Services–When CloudOne’s Cloud hosting is sold as a service under ISSR, you get $1 for every $1 of services revenue!–This is a new revenue stream for you: only with CloudOne!
28
© 2011 CloudOne29
Summary CloudOne is the “Swiss Army Knife” partner
CloudOne is a unique provider of Virtual Private Clouds
CloudOne offers true Software as a Service capabilities
CloudOne provides an integrated multilayer VPC
CloudOne can integrate desktop software in many ways
Global, Elastic and Economical are the cloud drivers
IT, users and procurement are the buyers, and they must align
You must establish trust F2F, and be an existing tool customer
What CloudOne does for security is better than most
Peak Concurrent User Licensing is the heart of cost savings
Hybrid Model licensing is the most popular method
There are eight Cloud Sales Process Steps
Total Cost of Ownership is about both hardware and software
There are TCO examples across many products and verticals
IBMers get paid in new ways when using CloudOne