SaaSMAX Special Event: CompTIA - IT Channel Trends In Cloud/SaaS

SaaSMAX Special Event: CompTIA - IT Channel Trends In Cloud/SaaSDecember 18, 2013

Presenter: Tim Herbert, VP Research & Market Intelligence, CompTIA

Host: Dina Moskowitz, CEO, SaaSMAX

Agenda

• Introduction• Size & Scope of IT Industry & IT Channel• Partnership Aspects & Framework• Trends in Cloud Growth, Demand, Adoption• Customer Challenges • Factors Influencing Channel Partner Decision to

Partner

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About CompTIA

2013 © SaaSMAX Corp. All rights reserved.


Education

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AdvocacyTim HerbertVP Research & Market IntelligenceCompTIA

CompTIA, a not-for-profit trade association, dedicated to serving IT companies and IT professionals

The IT Industry’s Path to $5 Trillion

IT Services Hardware Software

38% 37%

25%

32%

50%

18%

U.S. World

Core IT Market

41%

59%

Fixed Voice/Data

Wireless Voice/Data

Telecom Services

+39% by 2020

Source: IDC


IT Channel Overview

IT Product or Service from Vendor, OEM

Distributor, VAD, Retailer Customer

IT Solution Providers, VARs, MSPs, Integrators, Designers, etc.

Traditional route to market flow through the IT channel

The Potential Channel Universe:

~120,000 Firms with payroll (employer firms)~350,000 Self employed (do not have payroll)~75,000 Firms of some scale; commonly used as

the target channel universe among vendors

For many IT vendors, estimates suggest 75% of their business flows through the IT channel.


Most IT Channel Firms Are Hybrids, Offering a Mix of Products and Services

Reseller / VAR

Managed print services

ISV

Telecom-related services

IT repair services/service center

System/network integration services

Managed services

Application development

Web development

IT support or help desk services

IT consulting services

IT solutions (e.g. combining elements_x000d_ of hardware, software or services)

24%

25%

25%

33%

41%

46%

49%

50%

52%

52%

61%

64%


The Partnership Aspect of Channel Partners

% reporting a NET GAIN in vendor program participation in 2012

43%

% of channel partners belonging to more than 15 vendor programs

On average, channel partners belong to 8 vendor programs

14%


Cloud Business Models Framework for the Channel

Build Provide / Provision

Enable / Integrate

Manage / Support

IaaS | PaaS | SaaS

Public | Private | Hybrid Clouds

Cloud Aggregation | Brokerage Services

Procure HW + SW; add

expertise to build cloud

Resell

White-label

Hosting / Direct to customer

Deployment

Consulting | Advising | IT Solutions

Integration

Break/Fix

Managed Services

Customization / Development

Architecture / Design


Cloud Business Models Framework Cont.

48% 49% 51%61%

32% 34% 35%27%

Build Provide/ Provision

Manage/ Support

Cloud Business Model Involvement among Channel Partners

Enable/Integrate

Currently provide

Plan to provide

Channel Partner Assessment of Their Cloud Offerings

Strategic Opport-unistic

Build 46% 37%

Provide/Provision 49% 38%

Enable/Integrate 53% 33%

Manage/Support 58% 32%


Cloud Growth Trajectory

26%% of channel partners expecting significant growth in cloud revenue (15% +) over next 12 months

Manage / Support segment

Build segment

Enable / Integrate segment

Provide / Provision segment

20%

23%

25%

32%

Cloud Growth Opportunities Expectations* Over Next 2 Years

19.5% CAGR through 2016

SaaS Growth Forecast

25% in 2013

24% CAGR through 2016*From perspective of channel partners in CompTIA study


Customer Demand for Cloud Solutions

37%

41%

22%

Customer Demand for Cloud Solutions

Very High Demand

High Demand

63% NET High Demand

Somewhat High or Low

Demand

Rating of Demand from Channel Partner Perspective

Channel partners with a cloud build practice or a provide/provision practice are most bullish on customer demand for cloud solutions.

Customer desire to reduce complexity

Customer desire to increase mobile/remote access to company data

Customer eyeing cost reductions / price sensitive

Customer business objectives best met with cloud solutions

Ability to on-ramp and scale new features/services faster

Customer has no in-house IT management

Main Reasons to Recommend Cloud over On-premise Solutions


Typical Stages of Customer Cloud Adoption

Experimentation Non-Critical Use Full Production Optimization

Currently Using IaaS/PaaS

36%

57%53%

Currently Using Cloud Solution For:59% Storage/back-up53% E-mail 49% Web presence 48% Disaster recovery/business continuity46% Business productivity44% Collaboration41% CRM41% Mobile application backend41% Analytics or business intelligence40% Communications (webinar, videoconferencing, IM, etc.)38% Financial management 36% Expense management 34% HR management32% Help desk31% ERP


Customer Challenges in Using Cloud Solutions

Lower performance than expected

Locked in to cloud provider

Painful transition from legacy systems

Defining/justifying ROI

Costs higher than originally estimated

Learning curve for cloud model

Changes to IT policy

Integration with existing systems

26%

26%

28%

30%

35%

39%

40%

49%


Factors Influencing Channel Partner Decision to Join and/or Leave Vendor Partner Program

• Margins• Discounts / rebates• Cost of membership• Deal registration

Money Issue

• Product line / strategic fit• Degree of conflict with vendor’s direct sales• Volume requirements

Strategic Issue

• Ease or difficulty of doing business with• Consistency of requirements• Level and effectiveness of support (marketing,

training, pre/post sales)

Execution Issue

60% or channel partners report evaluating their vendor partner program participation quarterly or semi-annually.


Wrap-up Summary Points SaaSMAXThe Ultimate SaaS Marketplace

Channel Universe: 500,000+ entities – they OWN millions of customer relationships!

Channel Universe uses/purchases/resellers cloud solutions.

Channel partners belong to 8 vendor programs, 43% participation gain in 2012

60% of Channel partners pro-actively evaluate participation in vendor programs.

Influenced by Money, Strategy, Execution/Enablement.

63% of Channel Partner’s customers have Very High or High demand for Cloud Solutions.

IF YOU’RE A B2B SAAS VENDOR,

MARKET TO AND LEVERAGE THE CHANNEL UNIVERSE!

Be A Part of Our Communities SaaSMAXThe Ultimate SaaS Marketplace

Join SaaSMAX! SaaS Vendors: Contact [email protected] for a special discount code to join, mention CompTIA Webinar in subject header.

IT Channel/Resellers/Buyers: Free to join, www.SaaSMAX.com

Join CompTIA!All SaaSMAX Members can join CompTIA for $150 ($100 discount!), $100 off Security Trustmark and $100 off MSP Partner Trustmark. http://www.saasmax.com/info/partners.html

mailto:[email protected]

http://www.saasmax.com/

http://www.saasmax.com/info/partners.html

http://www.saasmax.com/info/partners.html

Thank you!Dina Moskowitz, CEO, SaaSMAX Corp.

[email protected]

Tim Herbert, VP Research & Market Intelligence, [email protected]



Technology

SaaSMAX Special Event: CompTIA - IT Channel Trends In Cloud/SaaS