automation as a competitive adv - no notes
TRANSCRIPT
May 19-20 l Washington, DC l Omni Shoreham
Automation as a Competitive Advantage
Jan-Jaap Jager
Managing Director - Asia / MEA , Parallels
Automation As A Competitive Advantage2
Agenda
• What has happened / is happening…
• How to keep Competitive
• Automation the Secret to Success
• How can Parallels Help
Automation As A Competitive Advantage3
What has happened / is happening…
OPPORTUNITY
Automation As A Competitive Advantage4
Hosting Industry • Industry continues to mature
– Seen as a serious business
• Market Consolidation– Leaders are buying followers/ close competitors
– Leaders are buying smaller companies
• SaaS is not futuristic, it exists today– Was and will be even more of a growth driver
– Plenty of room for all hosting types
– Threat and opportunity
• Larger ISVs see the need to move to SaaS as well– SaaS is SOFTWARE as a service. They are important partners if
you are to take advantage of SaaS opportunity
– Does it make sense for ISV to be a Service Provider?
Automation As A Competitive Advantage5
ISV / SI
ISV Applikation
Actual Market Situation
Automation As A Competitive Advantage6
ISV Application
ISV Application
ISV ApplicationISV Application
ISV Application
ISV Application
ISV / SI
Actual Market Situation
Automation As A Competitive Advantage7
ISV Applikation
ISV Applikation
ISV
SaaS ISV Appl.
Market Trend
Automation As A Competitive Advantage8
Hosting Market: Look ahead• Hosting market grew to $8.2B in 2006 (from $6.8B in 2005)*
• US Market – represents only 50-60% of worldwide market
• By 2011, the market is predicted to grow to $16.4B*Revenue By Service Type, 2006*
Complex Managed Hosting
58%
Dedicated5%
Shared & Virtual Private Server20%
Colocation17%
• Trend #1: Traditional hosting market is established and growing, but slowing down
• Trend #2: Managed hosting and SaaS are the growing segments*
• Key Point: Changes may be required to sustain revenues and continue growth
* source: IDC presentation at 2007 Parallels Hosting Summit
SaaS % of Business Software MarketOpportunity: $8B increasing to $40B
0%
5%
10%
15%
20%
25%
2006 2011
Automation As A Competitive Advantage9
What has happened / is happening…
Parallels Summit 20089
OPPORTUNITY GIANTS
Automation As A Competitive Advantage10
Applications
Google productivity tools for small and medium sized businesses.
Internet Giant – Google • Google targeting SMBs with SaaS
– Google Sites (collaboration)
– Google Apps (productivity tools)
Collaboration Screen Images
Competitor to providers offering Hosted SharePoint services.
Apps Hosting
Note that Google’s service offering is starting to resemble website hosting.
Automation As A Competitive Advantage11
Targeting DevelopersComplex usage-based fees which are not understood by typical SMBs.
Internet Giant – Amazon (and others) • Amazon Web Services?
– S3 – Amazon Simple Storage Service
– EC2 – Amazon Elastic Computer Cloud
• WebStores targets merchants
Home Page Screen Images
Found Web Services after scrolling down (not in the main departments).
WebStores
Compete with e-commerce offerings - $60/month plus 7%.
Automation As A Competitive Advantage12
Workspace
Online file sharing for office applications. “may include advertising”
Internet Giant – Microsoft • Microsoft targeting SMBs with SaaS
– Exchange Hosted Services (recent announcement)– Workspace (file sharing for office applications) – Small business (web site and domain tools)
Email Screen Images
New offer is targeted at SMBs as well as large providers.
Small Business
Template-based websites with branded email and shared workspace.• Microsoft is partnering with ISVs and hosting providers
– Take advantage of the opportunity
Automation As A Competitive Advantage13
Other Bigger Industry Players – like…
Automation As A Competitive Advantage14
What has happened / is happening…
OPPORTUNITY GIANTS
PRICE EROSION
Automation As A Competitive Advantage15
Hosting Services Price Development
E-Mail ASP.NET &.NET Services
E-CommerceInitial Presence
Added Value Applications
Average Revenue Per User
$2 - $10
$500 - $1,500
$150 - $500
$10 - $150Shared Website, static pages
Shared VPSDedicated VPS
Shared, dynamic Website
Demand for Services Managed
Dedicated Environment with Web Servers), DB, Storage, Security, etc.
Dedicated Web Server with Root Access
ARPU/S opportunities:Shared to VPS to Dedicated
New SaaS Applications
Automation As A Competitive Advantage16
Effect of Price Erosion
Your Premium Customers
$ / Customer
# of Customers
Your Typical Customers
(Currently) “non addressable” Customers
What if you:
(A) Lower your cost of sale (i.e. lower barrier to entry)
(B) Lower cost of operations
Cost
IT Optimization and Automation
Automation As A Competitive Advantage17
What has happened/ is happening…
PRICE EROSION
GIANTSOPPORTUNITY
CHALLENGES
Automation As A Competitive Advantage18
Typical Challenges• Managing Costs
– Hosters are growing – problem is, costs are growing at the same speed
– Must have economies of Scale
• Managing Complexity– The bigger the infrastructure the more complex the management, especially when no
good management automation is in place
• Scalability to answer your growth– Can your platform automatically grow with your customer growth?
– Horizontal and vertical?
– Can you offer new services effectively and efficiently?
• Business Intelligence– Do you actually know your customers?
– Know what kind of services they like? what they don’t like?
– What is your churn rate and why are they leaving?
– What is your up-selling ratio and for which services?
– Which marketing plan is successful and which are not?
• Flexibility– Up sell, cross sell, upgrade, management
– Can the change be done by the customer it self (its better for the customer and you!)
Automation As A Competitive Advantage19
Typical Challenges• Complete solution
– for installation/configuration, upgrade/downgrade & management/monitoring
• Single Sign On– Does your customer have one single interface where they can logon to see and
manage all services themselves?
– Able to add new applications in the same single sign on concept?
• Billing Automation– Payment Collection
– Maintaining Customer Information
– Maintenance product catalog and pricing
– Quickly deploy price changes in your billing system, online store and for your resellers
• Service‘s are like Islands– Different services, platforms, logins, invoices, etc.
• Provisioning complex applications services– Are Configuration and Deployment automated?
Automation As A Competitive Advantage20
Agenda
• What has happened/ is happening…
• How to stay Competitive
• Automation the Secret to Success
• How can Parallels Help
Automation As A Competitive Advantage21
How to stay competitive• Pricing
– Must be Low enough to attract customers and high enough to be Profitable
• Business Operations– Be paranoid about efficiency by elimination of manual
processes– Full Automation and Self Management are key
• Broader Set Service Plans– Many & variety of services– Many & variety of applications– Give the customer a choice
• Better & flexible upgrade path– Variety of workloads– Variety of sizing options– Automatic upgrades
How To Achieve This? • Virtualization & Automation
– Helps for additional efficiency and flexibility
– Remember to be paranoid about efficiency
• Business Automation – Automate every aspect of your business and system processes
– Must be fully integrated across all customers, partners and service plans – it is so for the GIANTS!
• Focus– Maximize opportunities based on your Strengths
– Where you could differentiate and cooperate, do so
– Separately we lose, only cooperating we could win
– Standards like APS Standard are required
• Have Optimized Infrastructure– Automate, Virtualize and Standardize
Automation As A Competitive Advantage22
Automation As A Competitive Advantage23
Agenda
• What has happened/ is happening…
• How to keep Competitive
• Automation the Secret to Success
• How can Parallels Help
Automation As A Competitive Advantage24
Secret to Success
24
Enabling your Business
HostingBusiness
Automation
Service&
Support
Marketing &
3 P’s
Operations &
Finance
Marketing Good Products Good Pricing Good Promotion
Service & Support Efficient Meets customer expectations
Operations & Finance Process Driven
Enabling Technology Rapid deployment of services 100% automated Scalable
Automation is the main contributor to the value of ALL your services.
Not automated = Not offered
Automation As A Competitive Advantage25
Agenda
• What has happened/ is happening…
• How to keep Competitive
• Automation the Secret to Success
• How can Parallels Help
Automation As A Competitive Advantage26
Standardsprovide automatedapplication delivery
SaaS Enabled!
Control Panelshelp to
Contain Costsand
Grow RevenueHigh Cost
Hard to Grow
Manual Hosting
Parallels Vision – Automation
Cost of Service Delivery
Sca
lab
ilit
y an
d N
ew S
ervi
ce C
reat
ion
(re
ven
ue
op
po
rtu
nit
y)
Service delivery Semi
Service management Manual
Service creation Manual
Simple Hosting
Service delivery Auto
Service management Semi
Service creation Manual
Optimized Hosting
Service delivery Auto
Service management Auto
Service creation Auto
high cost low cost
Automation As A Competitive Advantage27
Parallels Automation Overview
Parallels Virtual AutomationPowerful tool helping administrators manage their virtual infrastructure
Parallels Operations AutomationSolution for automating key IT processes and providing delegated management through the organization
Parallels Business AutomationSolution for automating key IT business functions including service ordering and chargeback accounting
Automation As A Competitive Advantage28
Top 10 Reasons for Parallels Automation1. Lowers your cost of operations and cost of sales
– By automation of service provisioning, management and billing
2. Enables you to offer any kind of ISV application within a SaaS concept
– Through one single service delivery platform
3. Enable quick time to market– Offer any ISV application as a SaaS model within 30 days in a complete
automated provisioning and billing hosted solution
4. Highly scalable solution – Manage millions of accounts
– It can be deployed in clustered and load-balanced configurations
– Supporting mission-critical services on a high-level
5. Completely Customizable to your needs– Wide range of APIs and SDKs available
Automation As A Competitive Advantage29
Top 10 Reasons for Parallels Automation6. Central Business Intelligence/ Billing/ Ordering system
– seamlessly integrates into your website and internal systems
– gives you unique visibility into performance of your business - growth, profitability, churn, up-sell and cross sell effectiveness, etc
7. Unlimited reseller and white label capabilities – Resellers can build their own stores, manage their own pricing, and
manage their own customers. Without limits
8. Proven solution – 500+ deployments worldwide
9. Allows you to concentrate on what you do best – sell hosting services
– Leave software development to us (largest dev team in the industry)
– 300+ developers and engineers working on Parallels Automation
10. Don’t reinvent the wheel we have already done it for you
Automation As A Competitive Advantage30
Summary
PARANOID
CUSTOMER SATISFACTION
REVENUE & PROFITABILITY
DON‘T REINVENT THE WHEEL
Automation As A Competitive Advantage31
Don‘t try to be Albert Einstein by yourself…
… he was already crazy enough…
…take advantage of the Parallels Automation Einstein's
Thank You
Let us have a discussion now how we can help YOU as well…