Making Money in the Cloud Part 3: Essential Steps to Build a Cloud Service Practice

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Information about Making Money in the Cloud Part 3: Essential Steps to Build a Cloud...

Published on March 4, 2014

Author: KaseyaCorp



It’s widely known that many managed service providers (MSP) have added Cloud technology to their solutions set. Recent Kaseya findings also revealed that successful MSPs have grown Cloud businesses - with significantly higher gross margins – approximately 3x faster than their on-premise peers.

In the 3rd installment of a 3-part webinar series, IT services expert Dan Shapero, Founder of ClikCloud, walks through the process of building a go-to-market plan for Cloud services offerings and provides attendees with tips to begin building their own go-to-market plans.

You'll learn:
· How to create – and implement – Cloud service pricing strategies that improve margins
· Insights on essential marketing campaigns, including messaging, lead generation, and other tactics to promote your new Cloud services effectively
· Management options for aligning sales compensation with Cloud based revenue goals
· How to avoid common pitfalls and mistakes made by many MSPs when they first offered Cloud services
· And much more

MSP Best Practices Making Money in the Cloud | Essential Steps to Build a Cloud Service Practice (Part 3 of 3) March 4, 2014

Agenda • Introductions • Recap of Parts 1 & 2 – Understanding the market opportunity – Internal Readiness • Cloud service pricing strategies • Marketing campaigns to promote your new Cloud services effectively • Aligning sales compensation with revenue goals • Common pitfalls and mistakes made by MSPs when introducing Cloud services • Q&A

You could win! Winner drawn at end of session

About Kaseya • Founded in 2000 • Over 10,000 customers and a presence in over 20 countries • Award-winning IT systems management software offered as SaaS and on-premise • Serving customers across industries including government, military, retail, healthcare, education, financial, and more • Serving both Managed Service Providers and IT departments • Gartner Magic Quadrant 2013 – Visionary: Client Management Tools • New management team and backing from Insight Venture Partners in 2013 • New acquisitions: – Rover Apps for BYOD – Zyrion Traverse for Cloud & Network Monitoring – 365 Command for Office 365 administration

Kaseya: The IT Management Solution for MSPs and Mid-Market Enterprises 5

Why MSPs Choose Kaseya A single Kaseya user can proactively manage 1,000s of automated IT systems and network tasks in the same amount of time required by a team of technicians using other techniques It’s the industry’s only patented single-server-singleagent architecture; MSPs get enterprise-class capability that is easy to use and easy to afford With 50+% of top MSPs worldwide using Kaseya, they get access to the most robust community available And with so many ISVs plugging in to Kaseya via a seamless integration process, they get an easy way to leverage their existing strategic technology partnerships

About ClikCloud • Pay-as-you-go Digital Marketing Firm – Custom Tailored Website – Bi-Monthly Blog Content – Monthly Newsletter – Pay-per-click Ad Management – Hosting & Web Analytics Included • Kaseya Industry Expert since 2012

Recap of Part 1 • Understanding the Cloud Market Opportunity – Market Drivers – Service Opportunities – Cloud Security Concerns – Pitfalls to Avoid

Recap of Part 2 • Is Your MSP Team Ready for the Cloud? – Channel Models for Cloud – Aligning Sales & Marketing – Service & Support Models – Operational Metrics – Pitfalls to avoid

Making Money in the Cloud | Essential Steps to Build a Cloud Service Practice 000000_10

Agenda • • • • Pricing Models and Operational Metrics Marketing Considerations Sales Compensation and Revenue Alignment Pitfalls to Avoid

Cloud Business Model Comparison • Migration • Design • Integrate • Broker/Agent • Manage • Support • SaaS Publisher • IaaS Owner • Operator Cloud Designer/ Builder Cloud Reseller Cloud Service Provider

Metrics to Drive Success • For Cloud Designers and Builders – Percentage (%) billable services per project – Percentage (%) attach rate of services per project (100% should be your target) – Target a percentage (%) of company top line revenue derived from services – Specific services sales goals – Margin targets on service transactions

Metrics to Drive Success • For Cloud Services Resellers or Cloud Services Providers more of a shift may be required – Recurring revenue growth vs. transactional revenue – Front-end lead generation metrics to drive down-stream recurring revenue – Customer-by-customer increases in recurring revenue – Forecasting for customer churn – Projected annual total contract value – Cost of customer acquisition – Level of customer satisfaction – Rate of new customer acquisition

Additional Pricing Considerations Prepaid / Multi-Year Pay as you go

Marketing Considerations

Application Micro Small Medium Large Business productivity 19% 43% 60% 52% Email 23% 48% 52% 48% Web presence 23% 50% 48% 44% Virtual desktop 15% 44% 54% 44% Collaboration 6% 34% 52% 53% Analytics 8% 33% 36% 35% CRM 2% 28% 36% 43% HR management 8% 29% 32% 34% Expense management 8% 22% 28% 41% Help desk 2% 27% 31% 32% Invoicing 4% 23% 25% 21% ERP 4% 15% 24% 28% Payroll 8% 26% 22% 18% Call center 4% 14% 22% 24% Source: CompTIA’s 2nd Annual Trends in Cloud Computing study Base: 373 U.S. businesses (aka end users) currently using cloud solutions

Other Key Benefits Reported by Users Benefits Cloud Adopters Have Experienced Ability to cut costs 43% Be er op on for mul ple reasons 42% Moderniza on of legacy IT 40% Reduce capital expenditures 38% Add new capabili es or features 38% Be er model for licensing/upgrades 35% Business units operate more freely 35% Crea on of new offerings or services 34% Reduce opera onal complexity 33% Simple/fast implementa on Reduc on in internal IT headcount Predictable pricing 32% 29% 25% Source: CompTIA’s 4th Annual Trends in Cloud Compu ng Base: 449 U.S. end users with cloud solu ons

Website Considerations • Have a Strong, Easy to Find “Call to Action” • Include Keyword Rich Content • Ensure Phone Number is Prominent • Mobile Friendly

Optimized Landing Page • • • • Support Call To Action Add a Human Element Set Expectations Keep Your Qualification Form “Above the Fold” 20

On Page Search Engine Optimization • Keyword Research • Unique Titles & Descriptions • Search Engine Submission • Webmaster Tools • Reporting & Analysis

Relevant Blog Content • Provide IT Best Practices • Write with Business Owner in Mind • Stay Vendor Neutral • SEO Optimize • Discuss News & Trends: – – – – Cloud Computing Mobility IT Security Data Protection

Email Newsletter to Stay Top of Mind • • • • Branded RSS Feed from Blog Social Media Links Offer & Features Service • Best Practice Footer w/ Address & Unsubscribe Links & List Management

Social Media Integration • Up Cycle Blogs & Videos • Automate Blog Feeds • Include Links in Your Newsletter Links • Build a Fan Base • Join LinkedIn Groups

Sales Considerations

Align Sales Goals With Business Goals Suspects Prospects Pipeline Accounts

Review Compensation Models • • • • Evergreen Commissions Upfront Commissions Life Cycle Commissions Retention Bonuses

What skills and knowledge is your talent missing? Vertical Knowledge Business Acumen • Retail, healthcare, education, hospitality, etc. – Products – Competitors – Challenges – Strategic positions within the industry – Industry terminology (churn, rework, etc.) • Knowledge of the operations of an organization – Financial • CAPEX vs. OPEX • Revenue vs. profit • Annual report – Workflow through departments • Understands the business value of cloud

Avoiding the Pitfalls

Understand the Challenges

Understand the Challenges Challenges Channel Faced in Adop ng Cloud Not Significant Somewhat Significant Very Significant Developing cloud tech/sales exper se 11% 40% 50% Op mizing cloud marke ng/sales messaging 12% 39% 49% Cash flow/financial considera ons 12% 42% 46% Determining business model 12% 43% 45% Balancing needs of legacy business 12% 44% 44% Ini al startup costs 14% 42% 44% Deciding vendors to work with 14% 43% 43% Source: CompTIA’s 4th Annual Trends in Cloud Compu ng study Base: 400 U.S. IT or Business execu ves (aka end users) using cloud solu ons

Do’s & Don’ts • Don’t Assume Cloud is “Just Another Product” • Do Consider the Impact on: – Team/Skills – Operating Model – Sales & Marketing • Don’t Neglect Your Sales & Marketing Tools • Get Help When/Where You Need It

Wrap Up Pay-as-you-go Digital Marketing Service • • • • • Custom Tailored Website Syndicated Blog Content Monthly Newsletter Social Media Integration Hosting & Web Analytics Included Attendee Offer: Free 30 Min. Marketing Consultation Email: info@ Subject: “Consultation” For More Info visit: “ClikCloud is brilliant – they take the hassle out of digital marketing. It’s more than a website, it’s like having a digital marketing team available as a pay as you go subscription.." Anthony M. NSW Australia

Next Steps • More on ClikCloud • Learn more about Kaseya for MSPs • For a free live product demo • For a free trial Kaseya Industry Expert Webinars • To speak with us /KaseyaFan /company/kaseya @kaseyacorp

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