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Cloud & Smarter Infrastructure Changing the Game with C&SI SaaS Solutions for Business Partners

Cloud & Smarter Infrastructure Changing the Game with C&SI SaaS Solutions for Business Partners. SaaS Market Overview C&SI SaaS Offerings SaaS Channel Business Models. Agenda. What is Software as a Service (SaaS)?.

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Cloud & Smarter Infrastructure Changing the Game with C&SI SaaS Solutions for Business Partners

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  1. Cloud & Smarter Infrastructure Changing the Game with C&SI SaaS Solutions for Business Partners

  2. SaaS Market Overview C&SI SaaS Offerings SaaS Channel Business Models Agenda

  3. What is Software as a Service (SaaS)? Software as a Service (SaaS) is a software delivery model in which software and associated data are centrally hosted in the cloud. SaaS is typically accessed via a web browser. Payment for the service is through a subscription model. You are using SaaS today if you access applications like Facebook, Twitter, or gmail. See the last page in this deck for additional resources on SaaS, Cloud, and utility-based computing

  4. …and the decision making process is changing Decision making power is shifting from the traditional IT buyer to a new audience - the Line of Business owner & practitioner • By 2016, 80% of new investments will directly involve LOB execs with LOB leading decisions in more than 50% of those investments • 48% discover brands they are not aware of while searching, 24% decide which brand to purchase solely from their self directed digital research  • 60% of the IT purchase process decision is completed before the prospect engages a vendor CIO CTOs IT Managers IT Operations Manager Data Center Manager Decision Makers Economic Buyers Decision Makers Influencers Developers Technical Leaders System Administrators IT Operations Data Scientists Recommenders Users Practitioners *Source: Google & Compete B2B Customer Study, June 2012

  5. How can SaaS help? Improved TCO due to lower infrastructure costs (Capex), low labor costs (Opex) Flexible subscription pricing Minimal upfront investment Continuous delivery of new capabilities allows rapid innovation and access to immediate code fixes Lower risk with try and buy approach Accelerates evaluations and decision making

  6. What is the Total Cost of Ownership? On-premise vs. Saas 30 VMs Software Subscription or License costs • Software Subscription or License costs • Support and Maintenance Infrastructure Costs • Hardware • Storage Management and Operations • Deploy App • Support Training • App Tuning • App Support • Software Maintenance (e.g upgrades) 1650 VMs 300 VMs

  7. Why are Customers buying SaaS? Customers that want to shift from Capital Expenses (On-premise) to Operating Expenses (SaaS) to fund software purchases Other 17% 18% Customers that wish to replace existing licensed and/or client/server applications with SaaS applications 15% Customers who want to quickly gain access to new capabilities that they cannot obtain by purchasing existing software products and services 50% *Source: Gartner, Softletter, Forrester, GigaOM

  8. SaaS Market Overview C&SI SaaS Offerings SaaS Channel Business Models Agenda

  9. IBM Service Exchange – Digital Presence • Readily available • Continuous delivered • Scaling to needs • Immediate Feedback Learn Explore Try Extend Use / Buy Support

  10. Why is this important to YOU? Service Engage faster time to value for your clients POC in days not weeks / months with 30 day evals Earn quick wins, close more often, earn more money Expand your footprint in your accounts using a land and expand strategy Displace competitors, on flexibility, broad capabilities, lack of comparable offer Service engage puts you and your clients in the driver’s seat. Take a drive today!

  11. Links – Service Engage, IBM, PartnerWorld IBM Application Performance Management (SaaS) increases your end user satisfaction with complete visibility and control of your application environment.

  12. Links – Service Engage, IBM, PartnerWorld IBM Workload Automation (SaaS)drives the execution of Business Processes with the lowest TCO across all environments, servers and applications. It offers speed of automation, power to business and precise governance.

  13. Links – Service Engage, IBM, PartnerWorld SmartCloud Control Desk (SaaS)delivers a unified service management solution to simplify business processes, maximize asset efficiency, and improve the end user experience

  14. Links – Service Engage, IBM, PartnerWorld Maximo Asset Management (SaaS)Business Case Packaging & Pricing

  15. Application Performance Management Target SaaS Customers IBM Application Performance Management Entry (SaaS) Target: Use existing deployments of IBM middleware (AIM & IM) to attach APM capability. Sales Tactic : Call on IT Ops, LOB or App Dev team and ask about middleware & app performance monitoring $25/month per Average Managed Virtual Server (aMVS) Workload Automation Target: High labor costs and risk of human errors as a result of manually intensive work to synchronize activities across enterprises. Sales Tactic : WA SaaSautomates repetitive tasks in support of business services, and control on-time delivery of those services IBM Workload Automation (SaaS) Starts at $70 per 1,000 executed jobs per month IT Service and Asset Management Target: Customers with huge cost to upgrade old versions helpdesk (BMC, HP), linking configuration Items (CIs) to their IT assets, slow service request handling, incident and problem resolution Sales Tactic : SCCD SaaS as cost effective option to solve the above issues. IBM SmartCloud Control Desk (SaaS) $99/month per Authorized User $297/month per Concurrent User

  16. Existing Customer Up-sellHow to farm existing install base Add-on Value Propositions Solutions To Sell Existing Install Base Workload Automation (SaaS) also integrates with Cognos, Datastage, Informatica, Netezza, WebSphere MQ, Platform LSF, Sterling Connect Direct. 16

  17. Key Considerations for Partners • Business Value • Why SaaS: $1-2Billion addressable market for CSI SaaS offerings, with 50-100% growth rate for various solutions. • Average deal size: 100-200K Annual Contract Value, with 30-40% growth on the same account as user base and scope expand • Software vs services ratios: 1:2 as configuration, customization and integration work remains (only install and standard configuration come with SaaS). • Sales cycle: 1-2 months, as 60% of prospects know what they want before they contact vendors. The key is to engage prospects effectively in digital marketing. • Return for BP: brand-new SaaS revenue stream, with associated services • Distribution model: authorized distribution, the same as on-premise counterparts • Target BP seller: • - Certified BP with APM, SCCD, TWS, EAM skills • - MSP • Target end user: • - APM: IBM middleware (AIM/IM) customer • - SCCD: BMC, HP customer with older versions Helpdesk, with high upgrade costs

  18. SaaS Market Overview C&SI SaaS Offerings SaaS Channel Business Models Agenda

  19. Business Partner SaaS Business Models IBM delivered SaaS BP delivered SaaS Referral Re-Marketers BP Storefront IBM Software Value Plus (SVP) Leverage standard two tier distribution channel IBM SaaS Referral Incentive Leverage IBM SaaS Offerings to enhance solutions Application Specific Licensing(ASL, xSP) BP’s solution bundled with IBM perpetual software IBM SaaS Solution Provider(SSP) BP’s expertise with IBM SaaS • Autonomous selling • Level 1 & 2 Support provided by the partner • Restricted-Use License; License held by partner • Known price to BP for the IBM SW for the duration of contract • Monthly parts available on selected products • BP resells, invoice, deliver IBM Sales Rep is incented • Authorized Partners only • Standard VAD/ VARincentive model • IBM provides Level 1 & 2 • Partner Guided Selling tool used to quote and sell • BP sell, invoice, deliver IBM Sales Rep incented • Earn 25%on subscription parts, for life of contract (single-user) • Earn up to 35%off tier price for life of contract (multi-customer) • Level 1 support provided by partner • Tier one contractual relationship between IBM and BP • BP prices independently • BP identify Opportunity, Co-Sell with IBM • Earn15%fees on first contract subscription • Level 1 & 2 support provided by IBM • IBM handles pricing

  20. IBM Software Value Plus Reseller (SVP) Key Features • Business Partner resells (remarkets) IBM hardware and or software and… • Jointly owns customer with IBM • Uses business know how, related services together with IBM SaaS to drive sales • Leverages two product categories • Open - Virtually all IBM Business Partners resell the products through Passport Advantage program • Authorized – Only Business Partners who are approved under IBM SVP Business Partner Agreement for the product can resell that product through Passport Advantage program Roles • Identifies opportunities or receives opportunity from IBM • Convinces customer to acquire SaaS solution • Sell IBM SaaS under Passport Advantage using IBM service agreement and terms of use • Sets customer price and processes PO through IBM Value Added Distributor • Invoices customer • Pays VAD as invoiced • Sets price to Business Partner • Invoices Business Partner • Pays IBM as invoiced for virtually all charges associated with service until customer cancels service • Provides VAD discount • Invoices VAD • Authorizes use of service to customer under IBM service agreement and terms of use • Assigns Proof of Entitlement to customer • Runs and delivers SaaS application from its data center • Provides customer support IBM I Business Partner VAD 20

  21. Operational Model on Service Engage (SVP) IT Practitioner Accesses Live Demo Trial Environment Request to purchase through Business Partner Requests support through Engage Partner Specific URL to Trial Access Paid Standard VAD/ VAR model Lead$ Business Partner IBM’s Partner Guided Selling Tool Forum, L1, L2, L3 IBM Hosted Trial Environment Sandbox Leads SCCD APM Unica WA

  22. IBM SaaS Solution Provider (SSP) Key Features • Business Partner sells solutions, manages accounts, provides support and… • Owns customer relationship and is single interface • Uses business know how, related services together with IBM SaaS to drive sales • Leverages two flexible options available with extra capacity added as required: • Multiple End User – SaaS Solution Provider commits to volume of SaaS over term and decides how to utilize capacity across range of customers • Single End User – SaaS Solution Provider commits to volume of SaaS over term tied to a single customer (non-transferrable) Roles • Identifies opportunity or receives from IBM • Convinces customer to buy SaaS solution • Delivers total solution • Authorizes use of service under BP’s service agreement • Sets price & processes PO with IBM • Invoices customer • Sole customer support interface • Pays IBM as invoiced for charges until canceled • Sells product to Business Partner at a discount • Invoices Business Partner • Authorizes use of service to Business Partner under an IBM service agreement & terms of use • Assigns Proof of Entitlement to Business Partner • Responsible for running and delivering the SaaS application from its data center • Provides support to Business Partner IBM Business Partner 22

  23. Operational Model on Service Engage (SSP) IT Practitioner Accesses Live Demo Trial Environment Request to purchase through partner portal Requests support through partner portal Partner Specific URL to Trial Access Lead$ Business Partner Partner Portal Earn 25% on subscription IBM’s Software Quote and Order Tool Deliver Partner Value add Code IBM Hosted Trial Environment Sandbox Leads SCCD APM Unica WA

  24. IBM Referral Incentive for SaaS Key Features • Business Partner influences SaaS sale with clients and… • Identifies opportunities, works with IBM to close sale and deliver SaaS • Uses marketplace reach and existing client relationships to identify opportunities • Uses business know how and relationships to jointly close sale with IBM Roles • Identifies opportunities • Convinces customer to acquire SaaS based solution • Co-sells with Business Partner • Sells SaaS either under Passport Advantage or Cloud Service Agreement • Sets price & processes purchase order • Provides Business Partner fee payment for processed sales • Invoices customer • Authorizes use of service to customer under an IBM service agreement and terms of use • Assigns Proof of Entitlement to customer • Runs and delivers SaaS application from its data center • Provides customer support • Pays IBM as invoiced for virtually all charges associated with service until service is cancelled Customer Business Partner IBM 24

  25. Operational Model on Engage: IBM SaaS Referral Incentive Program IT Practitioner Accesses Live Demo Trial Environment Request to purchase through Engage Requests support through Engage Partner Specific URL to Trial Access Paid 15% of Annual Contract Value Lead$ Business Partner Forum, L1, L2, L3 Deliver IBM Hosted Trial Environment Sandbox Leads SCCD APM Unica WA

  26. IBM Referral Incentive for SaaS – Rewards Applies to: commercial accounts only virtually all account classifications: Industry, Enterprise Select, Enterprise non Select & Midmarket Payout percentages: contract value New Deals: 15% Up-sell: 15% Contract Extensions: 5% Some products not eligible for Contract Extension fees Fees paid on Annual Contract Value Only includes Subscription Charge Type For multi-year contracts, fee is payable each year Maximum fee payment: $150,000 per single claim Partner creates profile & claims referral incentives Visit PartnerWorld for more information: https://www-304.ibm.com/partnerworld/wps/servlet/ContentHandler/swg_com_sfw_sc_saas 26

  27. Creating unique URL format to drive Business Partner Leads!!!For IBM Partners in the SaaS Partner Programs…. URL Format is: www.ibmserviceengage.com?/utm_source=reference code • reference code =1<campaign><country_code><PartnerWorld_ID>:<email_address> • URL details: • 1 is fixed for all partner sellers • <campaign> is the specific partner program: 01 – SVP 02 – SSP 03 – Referral • Insert your campaign, country code, PartnerWorld ID, and email address into the reference code • Example: • I am in the SaaS Referral so my <campaign> is 03 • I am based in the UK so my <country_code> is uk (see next slide for country codes) • My <PartnerWorld_ID> is xyz123 • My optional seller <email_address> is johndoe@uk.partner.com • My reference code = 103ukxyz123:johndoe@uk.partner.com My URL is = www.ibmserviceengage.com?/utm_source=103ukxyz123:johndoe@uk.partner.com • Distribution of BP URLs: • VADs would distribute unique URLs for SVP to their Resellers • Receive unique URL in SSP approval email • Receive unique URL in SaaS Referral approval email

  28. How do I maintain my leads? SaaS Inside Sales Rep qualifies client (Optional) 5 Learn Explore Try Extend Use / Buy Support 6 4 Trial list SaaS ISR SaaS ISR informs BP that client has started trial SaaS Inside Sales Rep receives client response associated with BP and matches to trial list BP Client 1 BP provides their unique IBM Service Engage url to client Client receives free trial Client registers 3 2

  29. IBM Service Engage Partner World SaaS landing page Key Resources For SaaS Offerings Find the business model for youHow would you like to work with IBM? Work with IBM SaaS products(Select one of the sections below for complete details) Own the customer relationship SaaS Solution Provider (IBM Solution Provider – IBM Software as a Service) Resell authorized products through IBM Software Value Plus (SVP) IBM Software Value Plus (SVP) SaaS Act as a referral Business Partner IBM Referral Incentive for SaaS and Software 1. 2. 3. • Partner World Center of Competency https://www-304.ibm.com/partnerworld/wps/servlet/mem/ContentHandler/A725247N63902M39

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