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THE OFFICIAL PUBLICATION OF THE CHANNEL PARTNERS CONFERENCE & EXPO




Channel Partners
Vol. 2, Issue 10, OCT 2012 | $5.99 US
channelpartnersonline.com
                                                            CLOUD COMPUTING
                                                     A SPECIAL ALL-DIGITAL,GREEN ISSUE
                                                                                                 TM




                                         Choosing
                                         Suppliers + Models




                                                                             IN THIS ISSUE:
                                                 DEFINING CLOUD CHANNEL BUSINESS MODELS     6
                                                         DIFFERENTIATING CLOUD PROVIDERS    11
                                                                 VETTING A CLOUD PROVIDER   15
                                              5 TIPS FOR FINDING THE RIGHT CLOUD PROVIDER   25
                                        5 SIGNS YOU’VE CHOSEN THE WRONG CLOUD PROVIDER      30
CONTENTS
                                                                                                                                                    IT


                                                                                                                                                                          ™


                                                                                                                                                                      M
                                                                                                                                                           T ELEC O


                                                                                                                                              OCT 2012
                                                                                                                                              channelpartnersonline.com




                                                                                                                                                         5
                                                                                                                          11




                                                             15                                                           30

                                                            OPINION                                                       15 Vetting a Cloud Provider
                                                            4    Editor’s Letter: Advantageous                                 By Jo Peterson & Manon Buettner
                                                                                                                               Finding a cloud provider is easy. Finding the
                                                                 Liaisons: Providers & Peers
                                                                                                                               right provider is hard. This article outlines key
                                                                 By Khali Henderson
                                                                                                                               considerations and suggests questions to help
                                                                 A first step to success in the cloud is aligning
                                                                                                                               define your client’s requirements and recognize
                                                                 yourself with the right providers, but keep in
 | channelpartnersonline.com




                                                                                                                               provider differentiators — both strengths
                                                                 mind that strategic partnerships in the cloud may
                                                                                                                               and shortcomings — so you can help your
                                                                 extend beyond providers to peers that can bring
                                                                                                                               clients reap the benefits of cloud services.
                                                                 complementary skills and supplier relationships.

                                                                                                                          25 5 Tips for Finding the Right
                                                            FEATURES                                                         Cloud Provider
                                                            6    Defining Cloud Channel Business Models                        By Dina Moskowitz
CHANNEL PARTNERS DIGITAL ISSUE  CLOUD COMPUTING OCT 2012




                                                                 By Rauline Ochs                                               Smart vendor selection will turn into more reliable
                                                                 Solution providers, resellers, managed service                long-term recurring revenue. However, there is
                                                                 providers and others that aggregate, integrate or             no question that it can be a daunting task unless
                                                                 customize typically do so under the cloud services            you tackle it with structure and method. This
                                                                 broker label. This article offers some definitions and        article offers a few suggestions for successful
                                                                 examples of the variations on the broker model.               and profitable cloud provider selection.

                                                            11   Differentiating Cloud Providers                          30 5 Signs You’ve Chosen
                                                                 By Lawrence M. Walsh                                        the Wrong Cloud Provider
                                                                 If partnership is the key to cloud channel                    By Scott Kinka
                                                                 success, understanding the types of providers                 Picking the right partner is easier said than
                                                                 and their roles is essential. This article defines            done. And when it comes to the cloud, it’s
                                                                 the essential cloud players that channel partners             hard to tell one provider from the next. But
                                                                 can both align with and compete against.                      here are five things you must understand to
                                                                                                                               separate the right choice from the wrong one.

     2
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© 2012 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo
and all other AT&T marks contained herein are trademarks of AT&T Intellectual
Property and/or AT&T affiliated companies.
ADVANTAGEOUS LIAISONS:
                                   EDITOR'S LETTER




                                                            PROVIDERS & PEERS

                                                            I
                                                                  just got an email from the Agent Alliance. You probably read it too. It was a blog
                                                                  from the consortium’s CEO Bill Power about channel partners’ — specifically
                                                                  telecom agents’ — struggle with delivering cloud services.
                                                                     He writes: “They freely admit they’re significantly behind the power curve and are
                                                                  scrambling to catch up to their customers’ interests and demands.”
                                                                A recent report from Techaisle confirms that a higher percentage of small and medium
                                                             businesses are asking for cloud services than there are channel partners offering them.
                                                                So what does an agent do about this? That’s the question Power asks in his blog.
                                                             “The solution that I hear regularly posed is to rush out and add multiple cloud providers
                                                             to your portfolio. But how in the world do we determine which providers to add?”
                                                                That’s what this digital issue is all about — helping channel partners to align yourself
                                                             with the right providers and to help you find your role in the value chain. We have
                                                             included definitions about channel cloud business models and potential provider types
                                                             as well checklists on what to look for in a supplier.
                                                                Of course this is just a starting place for building your cloud practice. As for Power,
                                                             the conclusion he and his colleagues at the Agent Alliance have reached is that
                                                             strategic partnerships in the cloud may extend beyond providers to peers that can bring
                                                             complementary skills and supplier relationships.
                                                                Channel Partners agrees with this approach and has been working to facilitate those
                                                             connections through its Peer-to-Peer Networking and Agent-VAR Partnering initiatives.
                                                             Both are excellent opportunities to meet with potential allies in the cloud.
 | channelpartnersonline.com




                                                                As always, we would welcome your feedback
                                                             on the content and the digital issue experience.
                                                             You can contact me at khenderson@vpico.com or               MORE INFO////
                                                             on Twitter.
                                                                                                                         RESEARCH
                                                                Enjoy!
                                                                                                                                       SMBs Demand More Cloud,
                                                                                                                                       Mobility Than Channel Supplies
CHANNEL PARTNERS DIGITAL ISSUE  CLOUD COMPUTING OCT 2012




                                                                                                                                       Partnering Trends Between
                                                                                                                                       Telecom and IT Channels 2012
                                                                            Khali Henderson
                                                                                                                                     IMMERSION CENTER
                                                                            Editor-in-Chief
                                                                              @khalihenderson                                          Peer-to-Peer Networking
                                                                                                                                       Immersion Center
                                                                                                                                     SOURCES:
                                                                                                                                       Agent Alliance
                                                                                                                                       Techaisle


                                                                              // IN THIS ISSUE //////////
                                                                              Table of Contents p. 2   ■    Defining Cloud Channel Business Models p. 6
     4
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                                       ScanSource, Inc. (NASDAQ: SCSC) operates as a wholesale
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                                                            Defining




CA NL
 HN E                                                                                        Business Models
                                                                                              ///By Rauline Ochs

                                                                                                A 2012 IPED end-customer sur vey highlighted 43
                                                                                             percent of end-user customer respondents indicated a
 | channelpartnersonline.com




                                                                                             desire to manage the new and emerging telephony and IT
                                                                                             computing environment themselves, specifically without
                                                                                             the assistance of a cloud services broker. Fifty-seven
                                                                                             percent of respondents indicated the cloud services broker
                                                                                             role as important especially when three or more cloud
                                                                                             services are being consumed or integrated for use by the
CHANNEL PARTNERS DIGITAL ISSUE  CLOUD COMPUTING OCT 2012




                                                                                             end customer.
                                                                                                The term cloud services broker was introduced by
                                                                                             technology research firm Gartner Inc. and is now widely
                                                                                             used in the industry. Is it used correctly in the industry?
                                                                                             Typically, yes, because the term, cloud services broker, is
                                                                                             broad. The cloud services broker role encompasses a wide
                                                                                             range of capabilities and services reflecting the complexity
                                                                                             of today’s telephony and IT computing environments.
                                                                                                Solution providers, resellers, managed service providers
                                                                                             (MSPs) and others that aggregate, integrate or customize
                                                                                             typically do so under the cloud services broker label. Let’s
                                                                                             look at some examples:
                                                              // IN THIS ISSUE //////////
                                                              Editor’s Letter p. 4   ■   Differentiating Cloud Providers p. 11   ■   Table of Contents p. 2
     6
ACS Services, founded in 1987 as an IT VAR is now also
                                                              CLOUD                a telephony VAR and an MSP as a result of the acquisition
                                                                                   of Idwellings. ACS Services also has the capability to perform
                                                            INTEGRATOR             the role of a cloud services broker for its customers following
                                                                                   a significant effort to transform its business over time. ACS
                                                                                   Services’ customer offerings are built on server, storage,
                                                                      networking, voice, data, unified communications and white-labeled cloud
                                                                      services to meet customer needs. These include server hosting and patch
                                                                      management, backup disaster recovery (BDR), help desk support, website
                                                                      design, voice, data and VoIP services integrated and customized on a
                                                                      customer-specific service level.
                                                                         ACS vendor partners include: Verizon, Cisco, HP, Dell, EMC, Juniper,
                                                                      Fortinet, Citrix and the Infotech BDR cloud service which they offered
                                                                      initially before hosting BDR in their own data center.
                                                                         ACS integrates the component products through an overall service
                                                                      level agreement taking the integration and management burden from
                                                                      the customer as the broker of the cloud services. This example involves
                                                                      managed and “white-labeled” public cloud services. The integration
                                                                      component also applies to VARs or MSPs that may stand up private clouds,
                                                                      behind the client firewall as well.



                                                                                    Cloud Sherpas, a specialist in mail, collaboration and CRM
                                                              CLOUD              applications, is an example of a cloud services broker that
                                                                                 can offer data or mail migration then integrate and customize
                                                            CUSTOMIZER           the application environment on a Google Apps sof tware
                                                                                 cloud services platform for the customer, taking the technical
                                                                                 integration burden from the customer. Similarly, Bluewolf not
                                                                      only offers migration offerings to Salesforce.com with their own intellectual
 | channelpartnersonline.com




                                                                      proper ty (IP) developed for that purpose, but also implementation
                                                                      customization performed with and as an extension to Salesforce.com.
                                                                         Both Cloud Sherpas and Bluewolf are examples of a new generation
                                                                      of solution providers tagged as “born in the cloud” or “cloud pure-plays”
                                                                      because the business model was built around cloud services application
                                                                      integration or in some cases cloud services resale. The “born in the cloud”
                                                                      or “cloud pure-play” company typically did not transform from a legacy VAR,
CHANNEL PARTNERS DIGITAL ISSUE  CLOUD COMPUTING OCT 2012




                                                                      solution provider, MSP, reseller or other related IT or telephony business.
                                                                      These companies were not in business 20 years ago; they developed around
                                                                      the cloud services ecosystem.




                                                                   // IN THIS ISSUE //////////
                                                                   Editor’s Letter p. 4   ■   Differentiating Cloud Providers p. 11   ■   Table of Contents p. 2
       7
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                                                                        Copyright © 2012 CA. All rights reserved.
There is a third capability that qualifies one as a cloud
                                                              CLOUD              services broker. This is the aggregator capability. I have most
                                                                                 often observed the aggregation capability when offered by IT
                                                            AGGREGATOR           distributors or select telephony master agents.
                                                                                    Synnex, Ingram Micro and Arrow are examples of distributors
                                                                                 who are aggregating cloud services and the necessary processes
                                                                  to assist VARs, MSPs and others to successfully transition from pure on-premises,
                                                                  project-based, resale to service level agreement based recurring revenue.
                                                                     Synnex’s CLOUDSolv offers not only access to SaaS and IaaS public cloud
                                                                  offerings to VARs for resale, but also aggregates those cloud services with the
                                                                  provisioning portal on behalf of the cloud service provider, customer billing
                                                                  processes and accounting systems that understand recurring revenue. In some
                                                                  cases, the aggregator is able to jointly brand the service level administration to
                                                                  the end customer on behalf of the VAR. This aggregation of not only the cloud
                                                                  services, but also the necessary processes and systems enables VARs to offer
                                                                  the solution without building the systems, expertise and capabilities themselves.
                                                                     A telephony-IT cloud example of a similar aggregation of sales support,
                                                                  pricing and provisioning for the actual hosted or cloud-based telephony or
                                                                  IT-based solutions is offered by the CSC division of Intelisys, the master agent.
                                                                  What is unique about this aggregated set of solutions for telephony and IT VARs
                                                                  and MSPs is that it is the only one of which I am aware today that aggregates
                                                                  cloud-based telephony (voice, data, unified communications) and IT (virtual
                                                                  desktop infrastructure (VDI), BDR, IaaS, SaaS, etc.) for a true end-to-end set of
                                                                  telephony and cloud-based offerings to support the model demonstrated by ASC
                                                                  Systems and their willingness to cross sell telephony and IT to the end customer.

                                                                     As you consider your company’s path forward in the new cloud ecosystem,
                                                                  your integration, customization or aggregation capabilities are the critical value-
                                                                  add to your end customers, especially when more than three cloud services
                                                                  are consumed. Equally important is your choice of service provider with whom
 | channelpartnersonline.com




                                                                  to team.

                                                                                 Rauline Ochs is a member
                                                                              of the IPED channel research,
                                                                              consulting and training arm of                                MORE INFO////
                                                                              UBM C h a n n e l th e p u b l is h e r
                                                                                                                                           ARTICLES
CHANNEL PARTNERS DIGITAL ISSUE  CLOUD COMPUTING OCT 2012




                                                                              of C o m p ute r R e s e l l e r N ews
                                                                                                                                            Cloud Driving Need
                                                                              (CRN). Prior to IPED, she served
                                                                                                                                            for Multidimensional Channels
                                                                  as Oracle’s senior vice president, Nor th
                                                                  American alliances and channels and senior                                  The Rise of the
                                                                  vice president of worldwide alliances for                                   Cloud Integrator
                                                                  BEA Systems. Ochs began her career with                                  BLOG
                                                                  15 years at the IBM Corp., ultimately rising                               Everyone Wants a
                                                                  to vice president, Americas software chan-                                 Piece of the Cloud
                                                                  nel sales and marketing. She was named
                                                                                                                                           SOURCES
                                                                  CRN Channel Executive of the Year 2007,
                                                                                                                                            IPED
                                                                  top Channel Executives and Most Influential
                                                                  Women in the Channel 2005 through 2007.                                     Gartner Inc.
                                                                   // IN THIS ISSUE //////////
                                                                   Editor’s Letter p. 4   ■   Differentiating Cloud Providers p. 11   ■   Table of Contents p. 2
     9
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Differentiating
                                                                   Cloud
                                                                Providers                                                        ///By Lawrence M. Walsh



                                                                     E
                                                                                nterprises already are spending as much as one-third of
                                                                                their IT budgets on cloud computing products and ser-
                                                                                vices, according to IDC enterprise research. Better yet,
                                                                                cloud’s proportion of business IT budgets is increasing 15
 | channelpartnersonline.com




                                                                  percent year over year and will continue to do so for the next three to
                                                                  five years. At this rate, cloud will make up more than 50 percent of the
                                                                  average business IT budget by 2015.
                                                                     The channel is increasingly incorporating cloud computing prod-
                                                                  ucts and services as part of their portfolios. Software-, infrastructure-
                                                                  and platform-as-a-service are already part of the channel partner’s
                                                                  repertoire. So, too, is the data center virtualized as a private cloud,
CHANNEL PARTNERS DIGITAL ISSUE  CLOUD COMPUTING OCT 2012




                                                                  hosted virtual servers and managed applications.
                                                                     Yet, according to the Cloud & Technology Transformation Alliance, a
                                                                  joint research venture by The 2112 Group and Channel Partners, most
                                                                  channel partners earn less than 10 percent of their gross revenue
                                                                  and profit from the sale and support of cloud computing. Finding
                                                                  the right sales and technical talent to operate a cloud business, and
                                                                  understanding and transforming a channel partner business to cloud
                                                                  parameters are the chief obstacles to cloud success. However, these
                                                                  are just indicative of the larger problem facing channel partners: the
                                                                  inability to do everything cloud demands.



                                                            // IN THIS ISSUE //////////
                                                            Defining Cloud Channel Business Models p. 6   ■   Vetting a Cloud Provider p. 15   ■   Table of Contents p. 2
11
Cloud computing may be economical for a consumer, but it is expensive to
                                                            deliver. To provide a full-blown cloud solution, a channel partner would have to
                                                            build a data center, acquire software licenses, integrate management and billing
                                                            applications, hire and train staff, and maintain non-revenue-producing capacity.
                                                            To enter the cloud, channel partners must team with cloud providers, software
                                                            vendors and service providers to gain access to resources and expertise.
                                                               If partnership is the key to cloud channel success, understanding the types
                                                            of providers and their roles is essential. The following are the essential cloud
                                                            players that channel partners can both align with and compete against.
                                                               Cloud Provider: This is a mash-up category of traditional software vendors
                                                            and born-in-the-cloud service providers. The cloud provider is typically the
                                                            originator of a cloud service, operating infrastructure, applications and cus-
                                                            tomer support in one package. Companies such as Microsoft Corp. (Office
                                                            365), Google (Google Apps) and Salesforce.com Inc. make up this category.
                                                            According to analyst reports, more than 70 percent of new applications writ-
                                                            ten by traditional software vendors are cloud-only, mean-
                                                            ing they will no longer have a client-side equivalent.
                                                               Cloud Aggregator: Cloud aggregators are bundlers —                              Understanding
                                                            or, a more apt description, distributors of cloud services
                                                            and hosting capacities. Many cloud aggregators special-
                                                                                                                                               the different
                                                            ize in common productivity, security and utility applica-
                                                            tions. They provide user interfaces and management tools
                                                                                                                                               cloud players is
                                                            that make the resale and support of cloud-based applica-
                                                            tions and resources easier for channel partners.
                                                                                                                                               the first step in
                                                               Cloud ISVs: This emerging cloud category is little more                         building better
                                                            than the evolution of the independent software vendor
                                                            and application developer. In the past, ISVs wrote appli-                          cloud offerings.
                                                            cations that would complement and enhance the software
                                                            of major vendors such as Microsoft and Oracle Corp.
 | channelpartnersonline.com




                                                            Today, ISVs are discovering that cloud computing is a tre-
                                                            mendous distribution mechanism, and their wares can be
                                                            customized to provide specialty capabilities for cloud ser-
                                                            vices. Many ISVs work through conventional vendor chan-
                                                            nels to bring their wares to partners. However, many are also building inde-
                                                            pendent channel relationships.
CHANNEL PARTNERS DIGITAL ISSUE  CLOUD COMPUTING OCT 2012




                                                               Hosting/Colocation Provider: Hosting companies are data centers that
                                                            provide resellers and end users with shared resources as an alternative to
                                                            selling and supporting on-premises servers and storage. Hosting companies
                                                            typically provide servers (shared or dedicated) and the underlying operating
                                                            system, while channel partners and/or their customers provide the software
                                                            for different uses and workloads. Increasingly, hosting providers are extending
                                                            management services for their servers and, in some instances, select applica-
                                                            tions.
                                                              Telecom Carriers: Until recently, connectivity and data transport services
                                                            that support other cloud services have been the role of traditional telephony
                                                            carriers in cloud computing. Now, major and regional carriers have invested


                                                                    // IN THIS ISSUE //////////
                                                                    Defining Cloud Channel Business Models p. 6   ■   Vetting a Cloud Provider p. 15   ■   Table of Contents p. 2
12
Better
   Cloud
 computing.



   Mobility.




  Security.




Get the story at
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in the development of cloud services. Verizon bought Terremark for its host-
                                                            ing capacity, while AT&T is developing storage, email and platform services.
                                                            Sprint has extensive enterprise security services, many of which are being
                                                            sold through reseller agents or syndication partners.
                                                               IT Distributors: Distribution’s traditional role is to “pick, box and ship”
                                                            services for hardware and software products. Broadline and specialty dis-
                                                            tributors provide cloud product and service support to their channel part-
                                                            ners. Through distribution cloud services programs such as those offered by
                                                            Ingram Micro Inc., Tech Data Corp., Synnex Corp. and Avnet Inc., channel
                                                            partners have access to expert support and resources, training, reference
                                                            architectures and hosting capacity. Distributors are also bridging relation-
                                                            ships between cloud providers and resellers.
                                                               Hardware Vendors: The cloud still requires hardware as the platform
                                                            for connectivity and application hosting. Hardware vendors such as Cisco
                                                            Systems Inc., Hewlett-Packard Co., IBM Corp. and Dell Inc. are providing
                                                            more than the metal backbone of cloud services; they recognize their future
                                                            sales are contingent on cloud providers growing. Through marketing and
                                                            technical support, hardware vendors are helping cloud providers grow sales.
                                                            In turn, they expect cloud providers to purchase more hardware to expand
                                                            their service capacity.
                                                               Cloud Integrators: Not all clouds are public or hosted, particularly in the
                                                            enterprise. In fact, the fastest growing cloud segment is enterprise private
                                                            clouds, and such infrastructure is developed and supported by system inte-
                                                            grators that previously sold high-end appliances and deployed professional
                                                            services. Many system integrators have redeployed resources to work with
                                                            vendors and other channel partners in the development of private clouds for
                                                            their clients.

                                                               There are numerous other cloud providers, but these are the essential actors
 | channelpartnersonline.com




                                                            in the pantheon. Channel partners are forming different combinations of cloud
                                                            relationships to build complete portfolios of cloud products and services. Such
                                                            relationships are essential given the current state of cloud
                                                            sales. According to CTTA research, 65 percent of channel
                                                            partners say they are or suspect they are losing sales
                                                            opportunities because they cannot provide the cloud
                                                                                                                            MORE INFO////
                                                            services desired by their customers. Understanding the          RESEARCH
CHANNEL PARTNERS DIGITAL ISSUE  CLOUD COMPUTING OCT 2012




                                                            different cloud players is the first step in building better      Telcos, MSOs, ‘Hosters’ to Get
                                                            cloud offerings.                                                  Half of U.S. SMB Cloud Spend
                                                                                                                                                 CTTA State of the Cloud
                                                                                                                                                 Channel Report
                                                                           Lawrence M. Walsh is president and CEO
                                                                        of The 2112 Group, a channel services com-                             SOURCES
                                                                        pany, and editor-in-chief of Channelnomics, a                           Cloud & Technology
                                                                        blog on channel business models and trends.                             Transformation Alliance
                                                                        He also is executive director of the Cloud &                             The 2112 Group
                                                            Technology Transformation Alliance. You can reach him at
                                                                                                                                                 Channelnomics
                                                            lmwalsh@the2112group.com.
                                                                                                                                                 IDC
                                                                    // IN THIS ISSUE //////////
                                                                    Defining Cloud Channel Business Models p. 6   ■   Vetting a Cloud Provider p. 15   ■   Table of Contents p. 2
14
///By Jo Peterson & Manon Buettner




                                                                           t           The decision to move a client’s IT infrastructure to
 | channelpartnersonline.com




                                                                                    “The Cloud” should be based on strategic business
                                                                                    rationale, and the ensuing process is not to be taken
                                                                                    lightly. After all, choosing the right cloud service pro-
                                                                                    vider is not only critical for the success of your client’s
                                                                                    cloud strategy, it will most likely affect his/her busi-
                                                                                    ness. Finding a cloud provider is easy, with myriad
                                                                                    providers beckoning. The question to ask yourself
CHANNEL PARTNERS DIGITAL ISSUE  CLOUD COMPUTING OCT 2012




                                                                                    is: Am I truly prepared and educated enough to help
                                                                                    guide my client through finding the right provider and
                                                                                    migrating to cloud?
                                                                                       Understanding cloud is like learning a new lan-
                                                                                    guage. Fluency comes not with book learning but
                                                                                    with actual use and practice. To be successful, one
                                                                                    must invest time and energy to learn the underlying
                                                                                    technologies, grow relationships with cloud provid-
                                                                                    ers and prepare to have strategic discussions with IT
                                                                                    executives about their business drivers.



                                                            // IN THIS ISSUE //////////
                                                            Differentiating Cloud Providers p. 11   ■   5 Tips for Finding Right Cloud Provider p. 25   ■   Table of Contents p. 2
15
Be A Leader
In Cloud.
Become A Part
Of CTTA Today.


 The Cloud and Technology Transformation Alliance (CTTA) – formerly
 the Cloud Convergence Council – is a communal forum of IT vendors, distributors,
 resellers, agents and end users that develops guidance on technology adoption and
 best practices for the use of technology to maximize business value.

  Technology is moving fast. Sometimes too fast. That’s where CTTA comes in to play.
 Through forums and research, CTTA provides the community with perspective and
 guidance on getting the most out of technology hardware, software and services.

   The CTTA is open to all companies in the business technology value chain. As a
 member, you will be able to participate in group forums, receive access to exclusive
 research and network with peers and vendors.


     Become a CTTA member today!                              Want to be a CTTA Sponsor?
       Signing up is easy. Go to:                             For more information contact:
         www.cttalliance.com                                Susan Kostbar at (480) 675-8102



                                   2012 CTTA Sponsors
      Gold Sponsors                    Titanium Sponsor                 Silver Sponsor   Bronze Sponsor




                                              IT
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                                                     T ELEC O
In this article, we will offer background and questions to help
                                                            define your client’s requirements and recognize provider differen-
                                                            tiators — both strengths and shortcomings — so you can begin to
                                                            help your clients reap the benefits cloud can offer.

                                                            NOT ALL CLOUD SERVICE PROVIDERS
                                                            ARE CREATED EQUAL.
                                                               In 2002, Amazon Web Services was launched offering a suite
                                                            of cloud-based services including storage, computation and even
                                                            human intelligence through the Amazon Mechanical Turk. It wasn’t
                                                            until 2006, with the launch of their Elastic Compute Cloud EC2, that
                                                            “utility computing” became a recognized term defined as a com-
                                                            mercial service that allows small companies and individuals to rent
                                                            computers on which to run their own computer applications. Hosting
                                                            providers such as Savvis, SoftLayer and Rackspace also were
                                                            among the first to offer what’s now considered cloud computing.
                                                               Fast forward to 2012 and there are more providers than you
                                                            can name. New entrants to the market are surfacing rapidly. Some
                                                            cloud providers are able to integrate a full suite of data center, IT,
                                                            security and network services into a total solution set uniquely
                                                            tailored to your client’s immediate and long-term cloud vision.
                                                            Others are focused on the mass market and emphasize self-
                                                            service, portal-driven products predominantly relevant to
                                                            startups and developers. Most, however, provide only
                                                            subsets of a total solution, requiring a cobbling together
                                                            of third-party services from entities that you either don’t
                                                            know or with whom you don’t have an established working
                                                            relationship.
                                                               As a valued adviser to your client, you want to help
                                                            guide them toward the most relevant solutions for
                                                            their particular situation. Therefore, it is crucial to
 | channelpartnersonline.com




                                                            begin by fully evaluating and defining the refer-
                                                            ence architecture, technical and performance
                                                            indicators, and underlying business drivers that
                                                            are supporting their migration to cloud.
                                                               While traditional telcos may offer infrastructure-
                                                            as-a-service (IaaS), either organically or through cloud provider
CHANNEL PARTNERS DIGITAL ISSUE  CLOUD COMPUTING OCT 2012




                                                            acquisitions, they may not be the most mature players in this
                                                            space. The biggest pitfall of limiting your search to providers
                                                            currently in your portfolio is that, with few exceptions, these will
                                                            include the larger, established, traditional network service pro-
                                                            viders that have only recently adopted IaaS as a set of adjunct or
                                                            tertiary services.
                                                               With few exceptions, the Iaas solutions offered by carriers today
                                                            are much less mature, have fewer features and functions, and require
                                                            more manual intervention for setup and changes. So, while it is less
                                                            work to focus exclusively on your bench of incumbent carriers to
                                                            find options, you’ll be doing your client a great disservice by forcing
                                                            them to fit into what will likely be an immature or restrictive solution.
                                                            Therefore, hosting and cloud services may not be these companies’
                                                                    // IN THIS ISSUE //////////
                                                                    Differentiating Cloud Providers p. 11   ■   5 Tips for Finding Right Cloud Provider p. 25   ■   Table of Contents p. 2
17
core competency. (CenturyLink’s acquisition                           or environments need to be moved and the
                                                            of Savvis and Verizon Wireless acquiring Ter-                         business drivers for moving them. Only then
                                                            remark are two notable exceptions.) Your best                         can you can begin the search for the right
                                                            bet is to find firms that have invested signifi-                      cloud provider.
                                                            cant time, money and personnel to convince
                                                            the market that they are committed to cloud                           EVALUATING A PROVIDER
                                                            computing and your client’s positive experi-                             Armed with the client requirements, you
                                                            ence. If this set of products is not fully baked                      can begin searching for the right cloud service
                                                            (or clearly explained) on the front end, chances                      provider. When vetting a cloud provider, focus
                                                            are, it won’t be baked on the back end either.                        a few key areas:
                                                                                                                                  • Performance/Architecture and Tech-
                                                                                                                                  nical Considerations
                                                                                                                                  • Security
                                                                                                                                  • Service/Support
                                                                                                                                  • Pricing
                                                                 Understanding cloud is like                                          Performance/Architecture and Tech-
                                                                  learning a new language.                                        nical Considerations. From a performance
                                                                   Fluency comes not with                                         and technical considerations standpoint,
                                                                    book learning but with                                        you’ll want to understand how long the
                                                                                                                                  provider has been in the IT outsourcing
                                                                   actual use and practice.
                                                                                                                                  business and if the provider has the finan-
                                                                                                                                  cial resources to continue to deliver and
                                                                                                                                  upgrade services throughout the business
                                                                                                                                  life cycle.
                                                                                                                                      Business is global; is your provider? Does
                                                            START WITH THE                                                        the service provider offer the seamless global
                                                            RESULTS IN MIND                                                       footprint your client’s business needs to grow?
                                                                It is crucial that you understand what the                        Can the data and environment be easily repli-
                                                            client is trying to accomplish from a business                        cated globally? Will you be able to manage the
                                                            standpoint before having an effective cloud
 | channelpartnersonline.com




                                                                                                                                  infrastructure transparently, regardless of time
                                                            conversation. In other words, what needs                              or location?
                                                            aren’t addressed in the client’s current envi-                            As you search for a cloud provider, it is
                                                            ronment that is driving the pursuit of a cloud                        critical to understand how well your client’s
                                                            solution? If the client doesn’t have a clear                          application will perform after it’s moved to
                                                            picture of what his/her real needs are, you                           the cloud. You’ll want to assure that your cli-
                                                            won’t have one either.                                                ent’s application will perform as well as users
CHANNEL PARTNERS DIGITAL ISSUE  CLOUD COMPUTING OCT 2012




                                                                True IaaS is can be as simple as spinning                         expect, now and in the future. Here are a few
                                                            up some compute instances for a test and                              questions to ask:
                                                            development environment, but it also can be                           • Is the cloud service provider using current
                                                            as complex as moving an e-tailer’s production                         generation enterprise-grade hardware to host
                                                            infrastructure into a hybrid colocation/cloud                         my client’s data?
                                                            environment involving a phased migration                              • Will the provider reveal the names of the
                                                            strategy and complex design.                                          hardware vendors it utilizes to provide the
                                                                So, it’s important to define the requirements                     service? (Cisco, Hewlett-Packard, VMware,
                                                            first. Many clients are taking a hybrid approach                      Microsoft, etc.)
                                                            to cloud services. Before searching for the right                     • Is the provider committed to keeping up
                                                            cloud service provider for eager clients, it’s                        with the rapid pace of technology changes
                                                            important to understand which applications                            thought the life cycle of the business?

                                                                    // IN THIS ISSUE //////////
                                                                    Differentiating Cloud Providers p. 11   ■   5 Tips for Finding Right Cloud Provider p. 25   ■   Table of Contents p. 2
18
IT



                                                                                                                                                    M
                                                                                                                                                               ™   Solution Center
                                                                                                                                        T ELEC O


                                                                                                                                                                       Business Ethernet.
                                                                                                                                                                    Maximum Connectivity.
                                                                                                                                                                         Maximum Value.
                                                                               A Solution for Your Customers


                                                                                                                                                                   The need for reliable data access that
                                                                                                                 Business Ethernet
                                                                                                                                                                   can accommodate remote workers and
                                                                                                                                               The Business
                                                                                                                                      Connectivity of Choice
                                                                                                                                                                   multiple locations makes choosing the
                                                                                                                                                                   right connectivity a critical decision.


                                                                                                                                                                   Download the Data Sheets and
                                                                                                 Business Services
                                                                                                                                                                   Whitepapers contained within this
                                                 Learn More: Call us at 877.634.2728.
                                                                                                      Is Ethernet the Right Choice
                                                                                                                for Your Network?
                                                                                                                             www.megapath.com
                                                                                                                                                                   Solution Center to learn more about
                                                                                                                                                                   Business Ethernet – a solution for your
                                                                                                                                                                   customers that can deliver more
                                                                     Business Ethernet vs. T1 Comparison
                                                                                                                                                                   bandwidth than traditional T1 and Bonded
                                                                                                                                                                   T1 services, at a much lower cost.
T1 vs. Business Ethernet Comparison:
Ethernet—where available—offers both higher bandwidths and lower prices than comparable T1 service,
but has distance limitations while T1 is practically everywhere.




  T1 AND BONDED T1s                                 BUSINESS ETHERNET                                 DIFFERENCES


  Symmetrical Bandwidth                             Symmetrical Bandwidth

  T1: 1.5 Mbps                                      2, 3, 5, 8, 10, 20 Mbps                           Ethernet offers higher
  Bonded T1: 3, 4.5, 6, 7.5, 10.5, 12 Mbps          Additional speeds up to 45 Mbps available         bandwidth options
                                                    in select markets.

  99.99% uptime SLA                                 99.99% uptime SLA

                          Learn More: Call us at 877.634.2728.                                                               www.megapath.com

                                                                                                                                                                   Topics include:
  1.5 T1 price $299/mo.                    2x2 Ethernet: $199/mo.                                     Double bandwidth for less than
                                                    3x3 Ethernet: $299/mo.                            comparable T1 price

  Loop bonding – more expensive                     Loop bonding                                      Industry standard




                                                                                                                                                                     • Ethernet vs. T1 Comparison Sheet
  Available nationwide 365 MSAs                     7,000–9,000 ft from CO to get Ethernet but        Ethernet has distance
                                                    nationwide footprint; distance limitations        limitations vs. T1 which is
                                                                                                      ubiquitous

  Quality of Service with VoIP                      Quality of Service with VoIP




                                                                                                                                                                     • Business Ethernet: The Advantages
  Dedicated DSL/speed will not fluctuate            Speed will not fluctuate

  T1 voice and data line is a form of Internet      Fast Ethernet is the cabling used in LAN
  connection                                        environments, making them speedier
                                                    and more reliable

  Tops out at 12 Mpbs                               Connect multiple business locations to give
                                                    a high-speed dedicated Ethernet connection
                                                    to ramp to private cloud networks—such as
                                                    nationwide or international MPLS networks
                                                                                                                                                                       for Business Customers
                                                                                                                                                                     • Choosing Ethernet Services
  T1 lines offer 1.5 Mbps per line. Each            Where available, Business Ethernet often          Ethernet, where available,
  additional line bonded to the original line       offers both higher bandwidths and lower           offers both higher bandwidths
  increases the speed by 1.5 Mbps; for              prices, partially due to the efficiency of the    and lower prices
  example, a double-bonded solution is              technology involved in transmitting higher
  3 Mbps. Bonding is practical up to                bandwidths over common copper wiring.
  10–12 Mbps; above that, other solutions—
  such as DS3 or Ethernet—are often more



                                                                                                                                                                     • More!
  cost effective.




    Get Started Now: 877.634.2728 to learn more.                                                        www.megapath.com




                                                                                                                                                                                 Sponsored by:



                                                                                                                                                                     Find the complete Solution Center at
  channelpartnersonline.com/solution-centers.aspx
• Does the provider offer a range of services that can be mixed
                                                                                           and matched to best fit the requirements of all my client’s cloud-
                                                                                           based applications?
                                                                                           • Can the provider integrate hybrid solutions requiring connectiv-
                                                                                           ity between my client’s private data center, colocation, managed
                                                                                           hosting and cloud?
                                                                                           • Does the provider offer a range of connectivity offerings, from
                                                                                           general Internet access to high-speed secure private networking?
                                                                                           Is the connectivity provided directly from the provider or sourced
                                                                                           via third party? Does the provider manage this connectivity? Is
                                                                                           there a service level agreement (SLA) for the connectivity? How
                                                                                           is that connectivity integrated into the cloud solution?
                                                                                           • Which hypervisor does the provider use? This is important
                                                                                           because there is no standard hypervisor. Most companies lever-
                                                                                           age VMware ESX, but does the provider? Understanding this can
                                                                                                help scope whether or not you can import and the virtual
                                                                                                   machines your client already has.
                                                                                                       • Can the provider support the VM specifications your
                                                                                                          client needs? This will help define whether your cli-
                                                                                                           ent’s app is able to run properly.
                                                                                                             • How many CPUs, GB of RAM or disk can a
                                                                                                             single VM have? Can your client leverage the
                                                                                                            same host names, IP and MAC addresses the
                                                                                                           company uses internally?
                                                                                                         • How many VM modules are to be used?
                                                                                                       Security Considerations. Security, especially as it relates
                                                                                           to public cloud offerings, is a popular concern when moving mis-
                                                                                           sion-critical data to the cloud. But don’t rule out public cloud com-
                                                                                           pletely until you understand how prospective providers handle this
                                                                                           area. Be sure to understand how the data is secured by asking the
 | channelpartnersonline.com




                                                                                           following questions:
                                                                                           • Does the provider offer a secure environment, both physically
                                                                                           (data center) and logically? How secure is this environment?
                                                                                           • Does the provider maintain a “defense-in-depth” solution that
                                                                                           meets all my client’s internal security requirements?
                                                                                           • Is the security built into the product offering, or is it something
                                                                                           you and your client will have to design and bolt onto the solution?
CHANNEL PARTNERS DIGITAL ISSUE  CLOUD COMPUTING OCT 2012




                                                                                           • Is the security provided by and supported by a professional internal
                                                                                           organization? Does it require the involvement of a third party?
                                                                                           • Can the security provided be customized and adopted to meet
                                                                                           requirements unique to my client’s enterprise?
                                                                                           • Does the provider meet all of the various business and regulatory
                                                                                           compliance that the enterprise is legally required to implement?
                                                                                           • Can the provider document its compliance/security processes
                                                                                           and procedures?
                                                                                           • Can I be confident that the security measures the cloud service
                                                                                           provider offers are as stringent as the ones implemented within
                                                                                           my client’s own data centers?



                                                            // IN THIS ISSUE //////////
                                                            Differentiating Cloud Providers p. 11   ■   5 Tips for Finding Right Cloud Provider p. 25   ■   Table of Contents p. 2
20
• Can the service provider tell you
                                                            with certainty where the business
                                                            critical data your client shares with
                                                            them will reside? If not, is it certain it
                                                            is secure?
                                                               Service & Support Consider-
                                                            ations. At this early stage in cloud                             Application portability and access
                                                            adoption, most service level agree-                                to technical resources will be
                                                            ments (SLAs) are one-sided in favor                              paramount to offer assurance that
                                                            of the provider. This limits their lia-                           future needs will be addressed.
                                                            bility in an emerging market and
                                                            allows them to offer the most aggres-
                                                            sive price points. While studies
                                                            have proven that higher SLAs don’t
                                                            equate to higher uptime, you should
                                                                                                                      • Is the cloud ser vice provider’s
                                                            eliminate those who aren’t standing                       pricing clear and understandable?
                                                            behind their service. Here are some                       • What is included and excluded from
                                                            questions to ask:                                         the solution’s pricing?
                                                            • Does the provider offer compre-                         • Is support built into the pricing
                                                            hensive and documented SLAs?                              model, or is it a premium on top of
                                                            • Is there a clear and concise escala-                    the standard pricing?
                                                            tion path?                                                • Are essential components missing
                                                            • Are the SLAs applicable immedi-                         that require third party plug-ins?
                                                            ately or after some arbitrary time has                    • Does the pricing deliver and satisfy
                                                            elapsed?                                                  the value I expect to realize from my
                                                            • Are there exceptions during mainte-                     client’s cloud strategy? (Low pricing
                                                            nance windows?                                            does not equate to high value if all
                                                            • Are they clear and easy to                              other requirements are not fully
                                                            understand?                                               satisfied.)
 | channelpartnersonline.com




                                                            • How easily are they enforced?                           • Can I view my client’s company
                                                               From a support perspective, ask                        spend throughout the month?
                                                            whether the service provider offers                       • Can I control who has access to
                                                            the following:                                            utilize the cloud services?
                                                            • local onsite team of cloud experts?                     • Can spending and spending con-
                                                            • a clear and concise escalation                          trols be implemented on a depart-
                                                            path?                                                     mental or individual basis?
CHANNEL PARTNERS DIGITAL ISSUE  CLOUD COMPUTING OCT 2012




                                                            • a global view of a client’s entire                      • Does the cloud provider offer and
                                                            cloud solution?                                           suppor t an API to inte grate the
                                                            • a single neck to choke from a                           service into my client’s operational
                                                            support perspective?                                      model?
                                                            • real-time trouble tickets?                              • Does the cloud provider of fer
                                                                                                                      reporting that truly helps run my cli-
                                                               Pricing Considerat ions. The                           ent’s business more efficiently?
                                                            most obvious reason to have the                           • How will this pricing model scale as
                                                            solution defined prior to soliciting                      my client grows?
                                                            pricing is to ensure the proposals                        • Does this pricing favor my client’s
                                                            reflect the exact specifications and                      compute and storage usage/
                                                            costs to facilitate the comparison.                       utilization?

                                                                    // IN THIS ISSUE //////////
                                                                    Differentiating Cloud Providers p. 11   ■   5 Tips for Finding Right Cloud Provider p. 25   ■   Table of Contents p. 2
21
IT
                                                           CLOUD vs. MANAGED UC
                                 M
                                        ™

                                                                       Cloud UC vs. Managed UC:
                      T ELEC O
  FREE    WEBINAR       SERIES
                                                               Which Is Right For Your Customer?
                                                                                  Available On Demand
                                                       The hype over UC has become reality. Find out about
                                                       managed and cloud UC solutions and how to match
                                                            them to customer requirements in this Webinar.




                                                                       CLOUD PARTNERS
EDUCATION                                                            Learn the Secret to Becoming
ON YOUR                                                                a High-Value Cloud Partner
                                                                                  Available On Demand

SCHEDULE                                                           How can you move your cloud practice up
                                                                   the value chain? Find out in this Webinar.


This exclusive Channel Partners
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on mobility, deciding between
cloud UC vs. managed UC for your                                                        MOBILITY
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these premier Webinars is free, and
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                    channelpartnersonline.com/webinars
Only by thoroughly evaluating prospective service pro-
                                                            viders and vetting their applicability to solve your client’s
                                                            unique business requirements can you ensure a success-
                                                            ful partnership. Shortsighted decisions based solely on
                                                            price can lead to frustration and soured relationships.
                                                               Buying enterprise-class infrastructure also isn’t
                                                            enough. The provider must be committed to its VMware
                                                            rollout, open API integration and self-service portals,
                                                            and have specialists available for pre- and post-sales
                                                            support. Client requirements inevitably will evolve over
                                                            time. Application portability and access to technical
                                                            resources will be paramount to offer assurance that
 | channelpartnersonline.com




                                                            future needs will be addressed.
                                                               While your clients will ultimately define what’s most
                                                            important to them in the selection process, your guid-
                                                            ance, introductions and vetting assistance will be
                                                            deemed invaluable. Providers, clients and the channel
                                                            community are all together in this early adoption phase.
                                                            Each opportunity is a chance to dive deeper into this                                    MORE INFO////
CHANNEL PARTNERS DIGITAL ISSUE  CLOUD COMPUTING OCT 2012




                                                            rapidly evolving market.                                                                 ARTICLE
                                                                                                                                                      Channel Women Support
                                                                                                                                                      ‘Cloud Girls’ Group
                                                                                          Jo Peterson is director of
                                                                                       Converged Cloud and Data Services                             BLOG
                                                                                       for telecom agency TeleProviders.                               Cloudy With a Chance of Rain
                                                                                       M a non Buet tn e r is pr inc ip a l at                       SOURCES
                                                                                       Nuvalo, a data center and managed                              TeleProviders
                                                                                       services consulting and brokerage
                                                                                                                                                       Nuvalo
                                                            firm. Both are members of the Cloud Computing Forum (aka
                                                            Cloud Girls), a women’s networking group for channel partners                              Cloud Computing Forum
                                                            and suppliers delivering cloud solutions.                                                  (aka Cloud Girls)
                                                                    // IN THIS ISSUE //////////
                                                                    Differentiating Cloud Providers p. 11   ■   5 Tips for Finding Right Cloud Provider p. 25   ■   Table of Contents p. 2
23
IT


                                                                                                                                                                           ™


                                                                                                                                                                       M
                                                                                                                                                            T ELEC O
                                                                                                                                         REPORT         SERIES




The State of the Market
These	“State	of”	reports	are	conducted	by	the	Channel	Partners	editorial	team.	They	deliver	
quantitative	results	surrounded	by	qualitative	executive	summaries	of	the	findings	—	designed	
to	 help	 you	 get	 a	 pulse	 on	 your	 peer’s	 analysis	 of	 or	 purchase	 decisions	 for	 products,	
technologies	or	services.


                                                                                                            Ethernet Services & The Channel
          March 2012 $39.00 US
                                                                                        COMMUNICATIONS

                                                                                                            •	 Channel	adoption	of	Ethernet	services	
                                                                                                            •	 Channel	revenue	from	Ethernet	services	in	
                                                                                                              2011	and	projections	for	2012
                                                    R        E         P        O          R            T   •	 Channel	sales	of	Ethernet	services	by	
                                                                                                              type,	speed	and	application
                                     Ethernet Services
                                       & The Channel:                                                       Underwritten	by:
                            State of the Market 2012
                                Ethernet services are in increasing demand by business.
                                And channel partners — agents, VARs, dealers, systems
                               integrators, consultants and MSPs — are in a position to
                          help customers fill that need. This “State of the Market” report
                         reveals the indirect sales channel’s current and projected sales
                                                              activity with Ethernet services.


                                         By Khali Henderson, Editor-in-Chief, Channel Partners




                                                                                                            Cablecos & The Channel
           August 2012 $39.00 US
                                                                                       COMMUNICATIONS
                                                                                                            •	Channel	attitudes	about	and	adoption	of	
                                                                                                              cableco	telecom	services
                                                                                                            •	Channel	comparisons	of	cableco	and	telco	
                                                   R         E        P        O          R        T          services	and	partner	programs
                                                                                                            •	Channel	experiences	with	and	expectations	
                                                                                                              for	cableco	channel	programs
                                                                                                            Underwritten	by:	
                             Cablecos & The Channel:
                            State of the Market 2012
                               The results of Channel Partners' second annual survey of
                            channel partners’ attitudes about offering cableco programs
                                                                            and services.
                                                By Khali Henderson, Editor-in-Chief, Channel Partners
                                                           Kelly Teal, Senior Editor, Channel Partners




Download Now                                                                                  channelpartnersonline.com/reports
5 TIPS
                                                                                 For Finding
                                                                        RIGHT
                                                                                      THE




                                                                       Cloud Provider                                             ///By Dina Moskowitz
 | channelpartnersonline.com




                                                                     O
                                                                              ver the past several years, thousands of SaaS and cloud apps
                                                                              have been launched into the market, providing new solutions to
                                                                              business and operational processes, IT infrastructure, communi-
                                                                              cations infrastructure and just about anything else you can think
                                                                  of. We can expect to see thousands more launched as traditional software
                                                                  applications convert to SaaS, new SaaS apps are developed for specialized
CHANNEL PARTNERS DIGITAL ISSUE  CLOUD COMPUTING OCT 2012




                                                                  processes (e.g., managing wireless access points or call centers) and new
                                                                  subcategories of apps are introduced for vertical markets (e.g., point-of-sale
                                                                  apps for single- and multistore owners or kiosks, etc.)
                                                                     The years ahead will be very profitable and exciting for solution provid-
                                                                  ers, resellers and other trusted advisers that are willing to invest the time
                                                                  to research which SaaS and cloud apps would be right for their custom-
                                                                  ers. Smart vendor selection will turn into more reliable long-term recurring
                                                                  revenue. However, there is no question that it can be a daunting task unless
                                                                  you tackle it with structure and method. Below are a few suggestions of how
                                                                  to structure and add method to successful and profitable vendor selection:



                                                            // IN THIS ISSUE //////////
                                                            Vetting a Cloud Provider p. 15   ■   5 Signs You've Chosen the Wrong Cloud Provider p. 30   ■   Table of Contents p. 2
25
1
                                                                                  Focus on your customer’s
                                                                                  needs, not cloud. I’ve been talking to                                            Businesses
                                                                           people about cloud apps for several years now,
                                                                           and I can tell you that “the cloud” is just not tan-                                     are buying
                                                            gible to most people. Yet studies show more than three quar-
                                                            ters of the population already are using at least one cloud app.                                        and using
                                                            A 2012 study by Techaisle reports that in the past two years,
                                                            the average number of cloud business applications used by                                               cloud apps
                                                            SMBs has more than doubled, from two in 2010 to four in 2011
                                                            to a projected seven in 2012.
                                                                                                                                                                    without
                                                               These stats, as well as your own personal use of cloud apps                                          knowing
                                                            are great reminders that people and businesses are buying and
                                                            using cloud apps without knowing or caring that they are “in the
                                                                                                                                                                    or caring
                                                            cloud,” because the apps are providing valuable solutions and                                           that they
                                                            information, and are typically more affordable than traditional
                                                            software solutions. So, before you begin your vendor selec-                                             are "in the
                                                            tion process, spend some time with your customer determining
                                                            what their pains and needs really are, avoiding any talk of the                                         cloud."
                                                            cloud. Once you understand those needs, think about which
                                                            ones you are qualified to tackle, and in what order.




                                                                  2
                                                                                  Use customer requirements as top-level filters.
                                                                                  When you’re finding out what your client’s needs and pains are, include
                                                                                  less obvious questions that could drive their purchase decisions. Here are
                                                                                  a few examples of what to ask your clients in order to quickly identify and
 | channelpartnersonline.com




                                                                                  eliminate unqualified apps:
                                                            „  Is your organization required to follow regulatory compliance laws such as HIPAA,
                                                            Sarbanes Oxley, etc., or any internal data and/or security compliance requirements?
                                                            „ Would you organization prefer or require ecosystem-specific solutions? For example,
                                                            must it integrate with SAP, Oracle, Microsoft, Google, etc. or is that not a critical factor?
                                                            „ What is your current accounting platform and CRM platform, and would any software
CHANNEL PARTNERS DIGITAL ISSUE  CLOUD COMPUTING OCT 2012




                                                            or new processes you purchase be required to integrate with either or both of them?
                                                            „ Do you expect to add new employees in certain departments of your business in the
                                                            year ahead? Approximately how many?
                                                            „ Do you sell products and/or services to the government sector or plan to in the year ahead?
                                                            „ Do you have offices and/or employees overseas who access your company data?
                                                            „ Are there limitations to the type of Internet connection that you are allowed to use in
                                                            your organization? (Some nonprofits, for example, might have employees who still are
                                                            using Internet dial-up connections).
                                                            „ What hardware devices does your company currently use and what are your policies
                                                            or restrictions about access to accessing company data on mobile devices?


                                                                // IN THIS ISSUE //////////
                                                                Vetting a Cloud Provider p. 15   ■   5 Signs You've Chosen the Wrong Cloud Provider p. 30   ■   Table of Contents p. 2
26
A Day
              n
            the            Cloud
                                                             Now Online!

What Is It?
A Day In The Cloud is an exclusive series of Documentaries for cloud education and channel
enablement created by Channel Partners. If you want to understand the conceptual, physical
attributes and packaging of cloud services and solutions, then this series will be a key educational
source for you.
Partners with valuable technology insight will be featured in the series and will enhance the business
discussion and accelerate the sales cycles at the end customer point. The series will include tutorials,
blueprint/schematics of cloud solutions, statistics, videos of physical locations where data is housed,
managed and secured, and sales clinics on packaging and selling cloud service.



Where Can I Find It?
The first documentary, sponsored by AT&T, is now online as part of the Channel Partners Resource
Center. Watch for the debut of the second documentary in the series, sponsored by SunGard, to be
released in October 2012.

channelpartnersonline.com/adayinthecloud

                                            Sponsored by:
3
                                                                                  Perform due diligence
                                                                                  about how your client’s
                                                                                  data will be treated. When a                                        Smart vendor
                                                                            client uses a SaaS or cloud app, they are                                 selection will
                                                            putting their data in someone else’s care. Whereas con-
                                                            sumers rarely think about issues of data and security,
                                                                                                                                                      turn into more
                                                            when it comes to a business it should be of the utmost                                    reliable long-
                                                            concern. Below are some examples of important ques-
                                                            tions you as a solutions provider should be asking sup-                                   term recurring
                                                            pliers about the security, backup and management of
                                                            your clients’ data. Most of this information should also
                                                                                                                                                      revenue.
                                                            be included in the provider’s standard licensing agree-
                                                            ment, so it’s important to evaluate the agreement and
                                                            determine what answers
                                                            are required or may not



                                                                                                                4
                                                            be acceptable.                                                    Evaluate terms and condi-
                                                            „  Do you back up my cli-
                                                            ent’s data? How often?
                                                                                                                              tions in licensing agree-
                                                            „ Do you save archived                                            ments. When SaaSMAX accepts a
                                                            versions of my client’s data?                                     new app provider into its marketplace, it
                                                            „ Where do you host my                         requires them to disclose several key terms and condi-
                                                            client’s data?                                 tions in their standard licensing agreements. This helps
                                                            „ What security do you                         resellers quickly evaluate those factors and determine
                                                            deploy when users use
                                                                                                           whether or not they are comfortable recommending doing
                                                            your app?
                                                            „ D o you e ncr ypt my
                                                                                                           business with a specific supplier. Some of these terms
 | channelpartnersonline.com




                                                            client’s data before it is                     and conditions include but are not limited to:
                                                            stored and/or before it is                     „   All end-user’s data is owned by the end user
                                                            backed up?
                                                            „ How does my client get
                                                                                                           „   The perpetual right to use the SaaS app
                                                            their data back when the                       „   A provision for the source code to be in escrow
                                                            contract is terminated?
                                                                                                           „   A statement that the terms of the agreement are sub-
CHANNEL PARTNERS DIGITAL ISSUE  CLOUD COMPUTING OCT 2012




                                                            What formats will the data
                                                            be in? How will this be                        ject to change at the spp supplier’s discretion
                                                            accomplished?                                  „   A warranty that the app is free of material defects




                                                                // IN THIS ISSUE //////////
                                                                Vetting a Cloud Provider p. 15   ■   5 Signs You've Chosen the Wrong Cloud Provider p. 30   ■   Table of Contents p. 2
28
5
                                                                                  Consider your own
                                                                                  criteria when select-
                                                                                  ing a provider. Now that                                    The better your
                                                                           you know your client’s needs and
                                                            requirements, think about what’s important to                                     selection up front,
                                                            your business.
                                                            „   Do you care if the app provider has an estab-
                                                                                                                                              the more trust
                                                            lished distribution/channel partner incentive pro-                                you will have with
                                                            gram in place? (If they don’t you could be facing
                                                            an inexperienced or undercapitalized vendor, or                                   your clients.
                                                            one that does not appreciate the role you play in
                                                            the sales process).
                                                            „ Does your business rely a lot on service reve-
                                                            nues providing training, integration and support?
                                                            If so, you might want to avoid app vendors who                                   In summary, being smart
                                                            insist on providing that themselves.                                          about selecting the right SaaS
                                                            „ Is it important to you that the SaaS and cloud                              and cloud app providers for your
                                                            apps you sell be white labeled to display your brand?                         customer will require some time
                                                            „ Do you need to control the client billing and                               and a learning curve up front.
                                                            provisioning process? Will you only work with                                 But done right, the rewards can
                                                            SaaS and cloud vendors who sell to you whole-                                 be multiyear recurring revenue
                                                            sale? Or do you prefer that the customer contract                             from providers that are happy to
                                                            direct with the app vendor and let them handle                                compensate you for your invest-
                                                            the billing?                                                                  ment and client-retention efforts.
                                                            „ Do you care if your commission is one-time                                  And the better your selections
                                                            versus the life of the transaction? Different app                             are up front, the more trust and
 | channelpartnersonline.com




                                                            vendors offer different incentives and you should                             influence you will have with your
                                                            be aware of them.
                                                                                                                                          clients as you recommend and
                                                                                                                                          sell additional solutions.
                                                                           Dina Moskowitz is founder and CEO
                                                                        of SaaSMAX Inc., a SaaS distribution,
                                                                        marketplace and channel manage-
CHANNEL PARTNERS DIGITAL ISSUE  CLOUD COMPUTING OCT 2012




                                                                        ment platform to help solution provid-                             MORE INFO////
                                                                        ers prequalify SaaS/cloud software as                             ARTICLES
                                                                        well as facilitate deal management,                                SaaSMAX Debuts Channel
                                                            commission management, reseller contracting and
                                                                                                                                           Cloud Marketplace
                                                            market enablement between SaaS ISVs and solu-
                                                            tion providers. Prior to SaaSMAX, Moskowitz was                               BLOG
                                                            CEO and founder of Critical Digital Data Solutions                              Is The Cloud Profitable
                                                            Inc., which developed cloud-based data storage                                  for Your Business?
                                                            solutions. She earned a bachelor’s degree in eco-
                                                            nomics from the Wharton School of Business, Uni-                                 SaaSMAX Inc.
                                                            versity of Pennsylvania.                                                         Techaisle


                                                                // IN THIS ISSUE //////////
                                                                Vetting a Cloud Provider p. 15   ■   5 Signs You've Chosen the Wrong Cloud Provider p. 30   ■   Table of Contents p. 2
29
5 SIGNS
                                                                      You’veTHE
                                                                              chosen
                                                              WRONG
                                                            Cloud Provider                                ///By Scott Kinka
 | channelpartnersonline.com




                                                                  A        ccording to Microsoft, the number of small busi-
                                                                           nesses entering the cloud business will triple in the
                                                                           next few years. So if you’ve already become a part
                                                               of that statistic, you’ve made a wise choice. Unless, of course,
CHANNEL PARTNERS DIGITAL ISSUE  CLOUD COMPUTING OCT 2012




                                                               you’ve picked the wrong provider to be your partner.
                                                                  Picking the right partner is easier said than done. And when it
                                                               comes to the cloud, it’s hard to tell one provider from the next.
                                                               So if you can’t even tell them apart, how are you supposed to
                                                               pick one that will help you grow during the next phase of your
                                                               evolution?
                                                                  Only you know what will be the right fit for your customers. But
                                                               here are the five things you must understand about your vendors
                                                               to make the right choice:




                                                            // IN THIS ISSUE //////////
                                                            5 Tips for Finding the Right Cloud Provider p. 25   ■   Contacts p. 33   ■   Table of Contents p. 2
30
1
                                                                             Type of cloud.                   There are significant differences between
                                                                            public, private, hybrid and virtual private offerings. They all meet very spe-
                                                                            cific business needs, but consumer interest and service provider commod-
                                                                            itization have caused businesses to misuse each offering. For example,
                                                            Amazon (largely credited with the invention of the public cloud) targets the Web applica-
                                                            tion development, testing and research communities. Although the terms and condi-
                                                            tions specifically state what data should be placed in that cloud, it hasn’t stopped cus-
                                                            tomers and their partners
                                                            from moving mission-criti-



                                                                                                                2
                                                            cal and other sensitive data
                                                            there. It also hasn’t pre-
                                                            vented ser vice providers
                                                                                                                                  The “also” cloud.
                                                                                                                    The Microsoft survey mentioned pre-
                                                            f rom building their own                                viously also found an important fact
                                                            offerings on top of
                                                                                                                    that surprised the industry:
                                                            Amazon’s public infrastruc-
                                                            ture. It’s important to make            Businesses that are looking to move more services
                                                            sure that the abilities of the          to the cloud want to do so with the same vendor.
                                                            cloud you’ve chosen will be             Unfortunately, most pure-play cloud providers focus
                                                            able to fulfill your custom-            on doing one thing and doing it well (email, hosted
                                                            er’s business objectives.
                                                                                                    PBX, desktop, etc). But now, based on customer
                                                            While the public cloud
                                                            might be an inexpensive                 demand, many of these providers (as well as tradi-
                                                            option, it doesn’t meet most            tional carriers) have decided to quickly cobble
                                                            standard business require-              together additional cloud products or start reselling
                                                            ments for privacy and secu-             other clouds to look like all-in-one commercial offer-
                                                            rity. If you don’t know what
                                                                                                    ings. Channel partners must ask the tough ques-
                                                            kind of cloud you’re pro-
                                                            posing to your customer,                tions to understand if their provider is actually deliv-
 | channelpartnersonline.com




                                                            find out.                               ering that cloud or someone else’s “also” cloud.




                                                                3
                                                                             Cloud infrastructure.                        IP lowers the barrier of entry for
CHANNEL PARTNERS DIGITAL ISSUE  CLOUD COMPUTING OCT 2012




                                                                             service providers as much as it does for customers. This means that it
                                                                             doesn’t take a lot of expense to start up a few servers and get in the game.
                                                                             The issue is that it takes a ton of money to do it right, and it’s the channel
                                                            partner’s job to make sure its customers understand what they are getting into. Platform
                                                            and software manufacturers, open source or supported, dedicated or high availability,
                                                            speed and type of storage, geographic diversity, security and third-party auditing, and
                                                            compliance on systems and process — these factors and more have to be considered,
                                                            understood and dealt with by a channel partner. That’s not a trivial task that an organiza-
                                                            tion can get involved with quickly and take lightly. Remember, just because a billion-dollar
                                                            carrier is offering a cloud service doesn’t mean it has invested billions of dollars in its new
                                                            cloud offering.


                                                                       // IN THIS ISSUE //////////
                                                                       5 Tips for Finding the Right Cloud Provider p. 25   ■   Contacts p. 33   ■   Table of Contents p. 2
31
Oversimplifying and overpromising.
                                                                4          I often have potential customers tell me that our competition promised to
                                                                           help the customer move everything to the cloud and support its end users,
                                                                           both for no additional fee. This is simply misleading. Despite what many
                                                            cloud service providers tell you, moving to the cloud requires the customer’s IT staff, who
                                                            know the business, to take part in the migration. There is no magic wand that makes
                                                            everything appear in the cloud. These promises seem attractive to the channel partner
                                                            because they can offer an on-ramp to the cloud without effort and expense. But when the
                                                            service provider says “no,” your customer will be blaming you for your poor recommendation.



                                                                             Misunderstanding
                                                                5            continuity.           It’s true that
                                                                           the cloud provides disaster recov-
                                                                                                                                           Before you select an
                                                                                                                                           all-in-one cloud vendor,
                                                                           ery that customers generally can’t
                                                                                                                                           be sure to understand
                                                            afford by themselves. A well-designed offering is                              where your provider
                                                            built on the right equipment, in a proper enter-
                                                            prise-class data center, with high availability built
                                                                                                                                           stands on these five
                                                            in. However, moving something to the cloud does                                critical questions.
                                                            not mean that it’s served from all over the world
                                                            automatically. Generally, cloud providers don’t
                                                            move your customer’s critical apps and content,                                Channel partners have an unprec-
                                                            free of charge, to the West Coast if the East                              edented opportunity in front of them,
                                                            Coast experiences an outage, and vice versa.                               because more and more custom-
                                                            The customer will still have to buy resources                              ers are understanding the cloud and
                                                            elsewhere to make this happen. And while many                              choosing to move more services to
 | channelpartnersonline.com




                                                            cloud providers offer services to support this                             it. But they also have a tendency to
                                                            level of continuity, failures in the cloud are not                         want to lean on a single vendor to do
                                                            unheard of. The bottom line: Setting the wrong                             so. Before you select an all-in-one
                                                            expectations in the beginning will lead to a real                          cloud vendor, be sure to understand
                                                            problem when disaster strikes.                                             where your provider stands on these
                                                                                                                                       five critical questions.
CHANNEL PARTNERS DIGITAL ISSUE  CLOUD COMPUTING OCT 2012




                                                                           Scott Kinka is CTO and founding
                                                                        partner of Evolve IP, an IT and com-
                                                                        munications cloud services provider.                               MORE INFO////
                                                                        Kinka is responsible for designing,                                BLOGS
                                                                        implementing and delivering a com-                                   The Problem With Cloud
                                                                        prehensive suite of application, infra-                              Service Providers
                                                            structure and security solutions. He has been
                                                                                                                                           SOURCES
                                                            involved in sales and consulting of advanced
                                                                                                                                            Evolve IP
                                                            application, communications and networking
                                                            solutions for more than 12 years.                                                    Microsoft


                                                                        // IN THIS ISSUE //////////
                                                                        5 Tips for Finding the Right Cloud Provider p. 25   ■   Contacts p. 33   ■   Table of Contents p. 2
32
About Channel Partners
                                                                                                                                                                                     IT


                                                                                                                                                                                                                               ™


                                                                                                                                                                                                                     M
                                                                                                                                                                                                          T ELEC O
                                      CHANNEL PARTNERS CONTACTS




                                                                     For more than two decades, Channel                         SALES/MARKETING
                                                                  Partners has been the leader in providing                     NETWORK LEADER
                                                                  news and analysis to indirect sales                           John Siefert – jsiefert@vpico.com, ext. 1233
                                                                  channels serving the communications
                                                                                                                                STRATEGIC ACCOUNT DIRECTOR
                                                                  industry. It is the unrivaled resource                        Susan Kostbar • skostbar@vpico.com, ext. 1402
                                                                  for re selle r s, aggre gator s, agents,
                                                                                                                                CHANNEL PARTNERS EVENT SALES DIRECTOR
                                                                  brokers, VARs, systems integrators,                           Stacy Whitley • swhitley@vpico.com, ext. 1075
                                                                  interconnects and dealers that provide
                                                                                                                                ACCOUNT EXECUTIVE
                                                                  network-based communications and
                                                                                                                                Andrew Masayestewa • amasayestewa@vpico.com, ext. 1061
                                                                  computing services, associated CPE
                                                                  and applications as well as managed                           AUDIENCE AND CONTENT COORDINATOR
                                                                  and professional ser vices. Channel                           Lauren Kane • lkane@vpico.com, ext. 1113
                                                                  Par tners is the official media of the                        MARKETING AND AUDIENCE CONTENT MANAGER
                                                                  Channel Partners Conference & Expo.                           David Hurley • dhurley@vpico.com, ext. 1091

                                                                                                                                REPRINTS & LIST RENTALS
                                                                                                                                Jennifer Thompson • jthompson@vpico.com, ext. 1170
                                                                                                                                Subscription Customer Service • 800-581-1811
                                                                  EDITORIAL
                                                                  EDITOR-IN-CHIEF
                                                                  Khali Henderson – khenderson@vpico.com, ext. 1678

                                                                  SENIOR EDITOR
                                                                  Kelly M. Teal – kteal@vpico.com, ext. 1020

                                                                  MANAGING EDITOR
                                                                  Buffy Naylor – bnaylor@vpico.com, ext. 1043                   CHIEF EXECUTIVE OFFICER John Siefert
                                                                                                                                EXECUTIVE VICE PRESIDENT/CFO Kelly Ridley
                                                                  SENIOR ONLINE MANAGING EDITOR
 | channelpartnersonline.com




                                                                                                                                CONTROLLER Jennifer Janos
                                                                  Craig Galbraith – cgalbraith@vpico.com, ext. 1124             VICE PRESIDENT, HUMAN RESOURCES Heather Wood
                                                                  CONTRIBUTORS
                                                                  Manon Buettner              Rauline Ochs                      PUBLISHED BY VIRGO PUBLISHING, LLC
                                                                  Scott Kinka                 Jo Peterson                       3300 N. Central Ave., Suite 300, Phoenix, AZ 85012
                                                                  Dina Moskowitz              Lawrence M. Walsh                 Tel. 480-990-1101 • Fax 480-990-0819
                                                                                                                                Website: vpico.com
CHANNEL PARTNERS DIGITAL ISSUE  CLOUD COMPUTING OCT 2012




                                                                  PRODUCTION
                                                                  VICE PRESIDENT, MARKETING SERVICES Danielle Dunlap            Copyright © 2012 VIRGO Publishing, LLC. All rights reserved. The publisher reserves the
                                                                                                                                right to accept or reject any advertising or editorial material. Advertisers, and/or their
                                                                  ART DIRECTOR, COMMUNICATIONS Israel Laveaga                   agents, assume the responsibility for all content of published advertisements and assume
                                                                                                                                responsibility for any claims against the publisher based on the advertisement. Editorial
                                                                  ADVERTISING ART DIRECTOR Angela Wright                        contributors assume responsibility for their published works and assume responsibility
                                                                  PRODUCTION MANAGER Leez May                                   for any claims against the publisher based on the published work. Editorial content may
                                                                                                                                not necessarily reflect the views of the publisher. Materials contained on this site may not
                                                                                                                                be reproduced, modified, distributed, republished or hosted (either directly or by linking)
                                                                                                                                without our prior written permission. You may not alter or remove any trademark, copyright
                                                                                                                                or other notice from copies of content. You may, however, download material from the site
                                                                                                                                (one machine readable copy and one print copy per page) for your personal, noncommercial

                                                                  channelpartnersonline.com                                     use only. We reserve all rights in and title to all material downloaded. All items
                                                                                                                                submitted to CHANNEL PARTNERS become the sole property of VIRGO Publishing, LLC.




                                                                               // IN THIS ISSUE //////////
                                                                               5 Signs You've Chosen the Wrong Provider p. 30   ■   Editor's Letter p.4         ■   Table of Contents p. 2
33

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2012 starting a-cloud-service-practice

  • 1. THE OFFICIAL PUBLICATION OF THE CHANNEL PARTNERS CONFERENCE & EXPO Channel Partners Vol. 2, Issue 10, OCT 2012 | $5.99 US channelpartnersonline.com CLOUD COMPUTING A SPECIAL ALL-DIGITAL,GREEN ISSUE TM Choosing Suppliers + Models IN THIS ISSUE: DEFINING CLOUD CHANNEL BUSINESS MODELS 6 DIFFERENTIATING CLOUD PROVIDERS 11 VETTING A CLOUD PROVIDER 15 5 TIPS FOR FINDING THE RIGHT CLOUD PROVIDER 25 5 SIGNS YOU’VE CHOSEN THE WRONG CLOUD PROVIDER 30
  • 2. CONTENTS IT ™ M T ELEC O OCT 2012 channelpartnersonline.com 5 11 15 30 OPINION 15 Vetting a Cloud Provider 4 Editor’s Letter: Advantageous By Jo Peterson & Manon Buettner Finding a cloud provider is easy. Finding the Liaisons: Providers & Peers right provider is hard. This article outlines key By Khali Henderson considerations and suggests questions to help A first step to success in the cloud is aligning define your client’s requirements and recognize yourself with the right providers, but keep in | channelpartnersonline.com provider differentiators — both strengths mind that strategic partnerships in the cloud may and shortcomings — so you can help your extend beyond providers to peers that can bring clients reap the benefits of cloud services. complementary skills and supplier relationships. 25 5 Tips for Finding the Right FEATURES Cloud Provider 6 Defining Cloud Channel Business Models By Dina Moskowitz CHANNEL PARTNERS DIGITAL ISSUE  CLOUD COMPUTING OCT 2012 By Rauline Ochs Smart vendor selection will turn into more reliable Solution providers, resellers, managed service long-term recurring revenue. However, there is providers and others that aggregate, integrate or no question that it can be a daunting task unless customize typically do so under the cloud services you tackle it with structure and method. This broker label. This article offers some definitions and article offers a few suggestions for successful examples of the variations on the broker model. and profitable cloud provider selection. 11 Differentiating Cloud Providers 30 5 Signs You’ve Chosen By Lawrence M. Walsh the Wrong Cloud Provider If partnership is the key to cloud channel By Scott Kinka success, understanding the types of providers Picking the right partner is easier said than and their roles is essential. This article defines done. And when it comes to the cloud, it’s the essential cloud players that channel partners hard to tell one provider from the next. But can both align with and compete against. here are five things you must understand to separate the right choice from the wrong one. 2
  • 3. The AT&T cloud. Securely at your customers’ commands. AT&T cloud solutions are designed to flexibly follow your customers’ commands, all while delivering security most other clouds don’t. The difference is the AT&T network, one of the world’s most reliable, best performing and secure networks. Which means that the AT&T cloud is where your customers need it, when they need it, and adjusts capacity as needed. To see what the AT&T network of possibilities can do for your customers’ businesses, visit att.com/cloud Interested in becoming an AT&T Solution Provider? Visit att.com/alliance for more information. UNLIMITED LIMITED © 2012 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies.
  • 4. ADVANTAGEOUS LIAISONS: EDITOR'S LETTER PROVIDERS & PEERS I just got an email from the Agent Alliance. You probably read it too. It was a blog from the consortium’s CEO Bill Power about channel partners’ — specifically telecom agents’ — struggle with delivering cloud services. He writes: “They freely admit they’re significantly behind the power curve and are scrambling to catch up to their customers’ interests and demands.” A recent report from Techaisle confirms that a higher percentage of small and medium businesses are asking for cloud services than there are channel partners offering them. So what does an agent do about this? That’s the question Power asks in his blog. “The solution that I hear regularly posed is to rush out and add multiple cloud providers to your portfolio. But how in the world do we determine which providers to add?” That’s what this digital issue is all about — helping channel partners to align yourself with the right providers and to help you find your role in the value chain. We have included definitions about channel cloud business models and potential provider types as well checklists on what to look for in a supplier. Of course this is just a starting place for building your cloud practice. As for Power, the conclusion he and his colleagues at the Agent Alliance have reached is that strategic partnerships in the cloud may extend beyond providers to peers that can bring complementary skills and supplier relationships. Channel Partners agrees with this approach and has been working to facilitate those connections through its Peer-to-Peer Networking and Agent-VAR Partnering initiatives. Both are excellent opportunities to meet with potential allies in the cloud. | channelpartnersonline.com As always, we would welcome your feedback on the content and the digital issue experience. You can contact me at khenderson@vpico.com or MORE INFO//// on Twitter. RESEARCH Enjoy! SMBs Demand More Cloud, Mobility Than Channel Supplies CHANNEL PARTNERS DIGITAL ISSUE  CLOUD COMPUTING OCT 2012 Partnering Trends Between Telecom and IT Channels 2012 Khali Henderson IMMERSION CENTER Editor-in-Chief @khalihenderson Peer-to-Peer Networking Immersion Center SOURCES: Agent Alliance Techaisle // IN THIS ISSUE ////////// Table of Contents p. 2 ■ Defining Cloud Channel Business Models p. 6 4
  • 5. MORE THAN A DISTRIBUTION PARTNER. WE’RE YOUR CATALYST FOR SUCCESS. Discover how we can help you explore growth opportunities in the cloud. Check out our new video featuring ScanSource, Inc. Chief Technology Officer, Greg Dixon. VIEW CLOUD VIDEO For more information, call 800.790.2029, EXT. 2960 THIS IS A CATALYST FOR CLOUD SOLUTIONS Cloud Affiliations: ABOUT SCANSOURCE, INC. Catalyst Telecom is a sales unit of international specialty technology distributor, ScanSource, Inc. ScanSource, Inc. (NASDAQ: SCSC) operates as a wholesale distributor of specialty technology products, providing distribution sales and services to resellers in the specialty CATALYSTTELECOM.COM technology markets. The company has two geographic distribution segments: one serving North America and an 800.790.2029 EXT. 2160 international segment serving Latin America and Europe.
  • 6. CLOUD Defining CA NL HN E Business Models ///By Rauline Ochs A 2012 IPED end-customer sur vey highlighted 43 percent of end-user customer respondents indicated a | channelpartnersonline.com desire to manage the new and emerging telephony and IT computing environment themselves, specifically without the assistance of a cloud services broker. Fifty-seven percent of respondents indicated the cloud services broker role as important especially when three or more cloud services are being consumed or integrated for use by the CHANNEL PARTNERS DIGITAL ISSUE  CLOUD COMPUTING OCT 2012 end customer. The term cloud services broker was introduced by technology research firm Gartner Inc. and is now widely used in the industry. Is it used correctly in the industry? Typically, yes, because the term, cloud services broker, is broad. The cloud services broker role encompasses a wide range of capabilities and services reflecting the complexity of today’s telephony and IT computing environments. Solution providers, resellers, managed service providers (MSPs) and others that aggregate, integrate or customize typically do so under the cloud services broker label. Let’s look at some examples: // IN THIS ISSUE ////////// Editor’s Letter p. 4 ■ Differentiating Cloud Providers p. 11 ■ Table of Contents p. 2 6
  • 7. ACS Services, founded in 1987 as an IT VAR is now also CLOUD a telephony VAR and an MSP as a result of the acquisition of Idwellings. ACS Services also has the capability to perform INTEGRATOR the role of a cloud services broker for its customers following a significant effort to transform its business over time. ACS Services’ customer offerings are built on server, storage, networking, voice, data, unified communications and white-labeled cloud services to meet customer needs. These include server hosting and patch management, backup disaster recovery (BDR), help desk support, website design, voice, data and VoIP services integrated and customized on a customer-specific service level. ACS vendor partners include: Verizon, Cisco, HP, Dell, EMC, Juniper, Fortinet, Citrix and the Infotech BDR cloud service which they offered initially before hosting BDR in their own data center. ACS integrates the component products through an overall service level agreement taking the integration and management burden from the customer as the broker of the cloud services. This example involves managed and “white-labeled” public cloud services. The integration component also applies to VARs or MSPs that may stand up private clouds, behind the client firewall as well. Cloud Sherpas, a specialist in mail, collaboration and CRM CLOUD applications, is an example of a cloud services broker that can offer data or mail migration then integrate and customize CUSTOMIZER the application environment on a Google Apps sof tware cloud services platform for the customer, taking the technical integration burden from the customer. Similarly, Bluewolf not only offers migration offerings to Salesforce.com with their own intellectual | channelpartnersonline.com proper ty (IP) developed for that purpose, but also implementation customization performed with and as an extension to Salesforce.com. Both Cloud Sherpas and Bluewolf are examples of a new generation of solution providers tagged as “born in the cloud” or “cloud pure-plays” because the business model was built around cloud services application integration or in some cases cloud services resale. The “born in the cloud” or “cloud pure-play” company typically did not transform from a legacy VAR, CHANNEL PARTNERS DIGITAL ISSUE  CLOUD COMPUTING OCT 2012 solution provider, MSP, reseller or other related IT or telephony business. These companies were not in business 20 years ago; they developed around the cloud services ecosystem. // IN THIS ISSUE ////////// Editor’s Letter p. 4 ■ Differentiating Cloud Providers p. 11 ■ Table of Contents p. 2 7
  • 8. Let’s get this cloud on the road Clients need, want and will pay good money for the cloud they need, when they want it. Which is now. That’s the beauty of the CA AppLogic® platform, the turnkey cloud computing solution that helps you bring revenue-producing services to market quickly and build margin. Fast. + FIND OUT how CA Technologies can help you accelerate IT and deploy cloud in minutes instead of months. Visit ca.com/marginwithcloud Speak to a specialist Copyright © 2012 CA. All rights reserved.
  • 9. There is a third capability that qualifies one as a cloud CLOUD services broker. This is the aggregator capability. I have most often observed the aggregation capability when offered by IT AGGREGATOR distributors or select telephony master agents. Synnex, Ingram Micro and Arrow are examples of distributors who are aggregating cloud services and the necessary processes to assist VARs, MSPs and others to successfully transition from pure on-premises, project-based, resale to service level agreement based recurring revenue. Synnex’s CLOUDSolv offers not only access to SaaS and IaaS public cloud offerings to VARs for resale, but also aggregates those cloud services with the provisioning portal on behalf of the cloud service provider, customer billing processes and accounting systems that understand recurring revenue. In some cases, the aggregator is able to jointly brand the service level administration to the end customer on behalf of the VAR. This aggregation of not only the cloud services, but also the necessary processes and systems enables VARs to offer the solution without building the systems, expertise and capabilities themselves. A telephony-IT cloud example of a similar aggregation of sales support, pricing and provisioning for the actual hosted or cloud-based telephony or IT-based solutions is offered by the CSC division of Intelisys, the master agent. What is unique about this aggregated set of solutions for telephony and IT VARs and MSPs is that it is the only one of which I am aware today that aggregates cloud-based telephony (voice, data, unified communications) and IT (virtual desktop infrastructure (VDI), BDR, IaaS, SaaS, etc.) for a true end-to-end set of telephony and cloud-based offerings to support the model demonstrated by ASC Systems and their willingness to cross sell telephony and IT to the end customer. As you consider your company’s path forward in the new cloud ecosystem, your integration, customization or aggregation capabilities are the critical value- add to your end customers, especially when more than three cloud services are consumed. Equally important is your choice of service provider with whom | channelpartnersonline.com to team. Rauline Ochs is a member of the IPED channel research, consulting and training arm of MORE INFO//// UBM C h a n n e l th e p u b l is h e r ARTICLES CHANNEL PARTNERS DIGITAL ISSUE  CLOUD COMPUTING OCT 2012 of C o m p ute r R e s e l l e r N ews Cloud Driving Need (CRN). Prior to IPED, she served for Multidimensional Channels as Oracle’s senior vice president, Nor th American alliances and channels and senior The Rise of the vice president of worldwide alliances for Cloud Integrator BEA Systems. Ochs began her career with BLOG 15 years at the IBM Corp., ultimately rising Everyone Wants a to vice president, Americas software chan- Piece of the Cloud nel sales and marketing. She was named SOURCES CRN Channel Executive of the Year 2007, IPED top Channel Executives and Most Influential Women in the Channel 2005 through 2007. Gartner Inc. // IN THIS ISSUE ////////// Editor’s Letter p. 4 ■ Differentiating Cloud Providers p. 11 ■ Table of Contents p. 2 9
  • 10. Motorola Solutions PartnerEmpower™ Program MAKE THE MOST OF OPPORTUNITY Today is another opportunity to close the big deal. To set yourself apart from competitors. To build long-lasting relationships with customers. To bring true innovation to burgeoning markets. Are you ready? As a member of the Motorola Solutions PartnerEmpower™ To get more information, visit us at Program, you will be. PartnerEmpower provides a path www.motorolasolutions.com/ to business growth through access to our top-ranked partnerempower mobility and communications products, tools that help you drive sales, and the backing of a vendor that highly values its channel. Team with Motorola Solutions today. Together, we can achieve new levels of success while helping customers rise in the moments that matter. MOTOROLA, MOTO, MOTOROLA SOLUTIONS and the Stylized M Logo are trademarks or registered trademarks of Motorola Trademark Holdings, LLC and are used under license. All other trademarks are the property of their respective owners. ©2012 Motorola Solutions, Inc. All rights reserved. 
  • 11. Differentiating Cloud Providers ///By Lawrence M. Walsh E nterprises already are spending as much as one-third of their IT budgets on cloud computing products and ser- vices, according to IDC enterprise research. Better yet, cloud’s proportion of business IT budgets is increasing 15 | channelpartnersonline.com percent year over year and will continue to do so for the next three to five years. At this rate, cloud will make up more than 50 percent of the average business IT budget by 2015. The channel is increasingly incorporating cloud computing prod- ucts and services as part of their portfolios. Software-, infrastructure- and platform-as-a-service are already part of the channel partner’s repertoire. So, too, is the data center virtualized as a private cloud, CHANNEL PARTNERS DIGITAL ISSUE  CLOUD COMPUTING OCT 2012 hosted virtual servers and managed applications. Yet, according to the Cloud & Technology Transformation Alliance, a joint research venture by The 2112 Group and Channel Partners, most channel partners earn less than 10 percent of their gross revenue and profit from the sale and support of cloud computing. Finding the right sales and technical talent to operate a cloud business, and understanding and transforming a channel partner business to cloud parameters are the chief obstacles to cloud success. However, these are just indicative of the larger problem facing channel partners: the inability to do everything cloud demands. // IN THIS ISSUE ////////// Defining Cloud Channel Business Models p. 6 ■ Vetting a Cloud Provider p. 15 ■ Table of Contents p. 2 11
  • 12. Cloud computing may be economical for a consumer, but it is expensive to deliver. To provide a full-blown cloud solution, a channel partner would have to build a data center, acquire software licenses, integrate management and billing applications, hire and train staff, and maintain non-revenue-producing capacity. To enter the cloud, channel partners must team with cloud providers, software vendors and service providers to gain access to resources and expertise. If partnership is the key to cloud channel success, understanding the types of providers and their roles is essential. The following are the essential cloud players that channel partners can both align with and compete against. Cloud Provider: This is a mash-up category of traditional software vendors and born-in-the-cloud service providers. The cloud provider is typically the originator of a cloud service, operating infrastructure, applications and cus- tomer support in one package. Companies such as Microsoft Corp. (Office 365), Google (Google Apps) and Salesforce.com Inc. make up this category. According to analyst reports, more than 70 percent of new applications writ- ten by traditional software vendors are cloud-only, mean- ing they will no longer have a client-side equivalent. Cloud Aggregator: Cloud aggregators are bundlers — Understanding or, a more apt description, distributors of cloud services and hosting capacities. Many cloud aggregators special- the different ize in common productivity, security and utility applica- tions. They provide user interfaces and management tools cloud players is that make the resale and support of cloud-based applica- tions and resources easier for channel partners. the first step in Cloud ISVs: This emerging cloud category is little more building better than the evolution of the independent software vendor and application developer. In the past, ISVs wrote appli- cloud offerings. cations that would complement and enhance the software of major vendors such as Microsoft and Oracle Corp. | channelpartnersonline.com Today, ISVs are discovering that cloud computing is a tre- mendous distribution mechanism, and their wares can be customized to provide specialty capabilities for cloud ser- vices. Many ISVs work through conventional vendor chan- nels to bring their wares to partners. However, many are also building inde- pendent channel relationships. CHANNEL PARTNERS DIGITAL ISSUE  CLOUD COMPUTING OCT 2012 Hosting/Colocation Provider: Hosting companies are data centers that provide resellers and end users with shared resources as an alternative to selling and supporting on-premises servers and storage. Hosting companies typically provide servers (shared or dedicated) and the underlying operating system, while channel partners and/or their customers provide the software for different uses and workloads. Increasingly, hosting providers are extending management services for their servers and, in some instances, select applica- tions. Telecom Carriers: Until recently, connectivity and data transport services that support other cloud services have been the role of traditional telephony carriers in cloud computing. Now, major and regional carriers have invested // IN THIS ISSUE ////////// Defining Cloud Channel Business Models p. 6 ■ Vetting a Cloud Provider p. 15 ■ Table of Contents p. 2 12
  • 13. Better Cloud computing. Mobility. Security. Get the story at juniper.net
  • 14. in the development of cloud services. Verizon bought Terremark for its host- ing capacity, while AT&T is developing storage, email and platform services. Sprint has extensive enterprise security services, many of which are being sold through reseller agents or syndication partners. IT Distributors: Distribution’s traditional role is to “pick, box and ship” services for hardware and software products. Broadline and specialty dis- tributors provide cloud product and service support to their channel part- ners. Through distribution cloud services programs such as those offered by Ingram Micro Inc., Tech Data Corp., Synnex Corp. and Avnet Inc., channel partners have access to expert support and resources, training, reference architectures and hosting capacity. Distributors are also bridging relation- ships between cloud providers and resellers. Hardware Vendors: The cloud still requires hardware as the platform for connectivity and application hosting. Hardware vendors such as Cisco Systems Inc., Hewlett-Packard Co., IBM Corp. and Dell Inc. are providing more than the metal backbone of cloud services; they recognize their future sales are contingent on cloud providers growing. Through marketing and technical support, hardware vendors are helping cloud providers grow sales. In turn, they expect cloud providers to purchase more hardware to expand their service capacity. Cloud Integrators: Not all clouds are public or hosted, particularly in the enterprise. In fact, the fastest growing cloud segment is enterprise private clouds, and such infrastructure is developed and supported by system inte- grators that previously sold high-end appliances and deployed professional services. Many system integrators have redeployed resources to work with vendors and other channel partners in the development of private clouds for their clients. There are numerous other cloud providers, but these are the essential actors | channelpartnersonline.com in the pantheon. Channel partners are forming different combinations of cloud relationships to build complete portfolios of cloud products and services. Such relationships are essential given the current state of cloud sales. According to CTTA research, 65 percent of channel partners say they are or suspect they are losing sales opportunities because they cannot provide the cloud MORE INFO//// services desired by their customers. Understanding the RESEARCH CHANNEL PARTNERS DIGITAL ISSUE  CLOUD COMPUTING OCT 2012 different cloud players is the first step in building better Telcos, MSOs, ‘Hosters’ to Get cloud offerings. Half of U.S. SMB Cloud Spend CTTA State of the Cloud Channel Report Lawrence M. Walsh is president and CEO of The 2112 Group, a channel services com- SOURCES pany, and editor-in-chief of Channelnomics, a Cloud & Technology blog on channel business models and trends. Transformation Alliance He also is executive director of the Cloud & The 2112 Group Technology Transformation Alliance. You can reach him at Channelnomics lmwalsh@the2112group.com. IDC // IN THIS ISSUE ////////// Defining Cloud Channel Business Models p. 6 ■ Vetting a Cloud Provider p. 15 ■ Table of Contents p. 2 14
  • 15. ///By Jo Peterson & Manon Buettner t The decision to move a client’s IT infrastructure to | channelpartnersonline.com “The Cloud” should be based on strategic business rationale, and the ensuing process is not to be taken lightly. After all, choosing the right cloud service pro- vider is not only critical for the success of your client’s cloud strategy, it will most likely affect his/her busi- ness. Finding a cloud provider is easy, with myriad providers beckoning. The question to ask yourself CHANNEL PARTNERS DIGITAL ISSUE  CLOUD COMPUTING OCT 2012 is: Am I truly prepared and educated enough to help guide my client through finding the right provider and migrating to cloud? Understanding cloud is like learning a new lan- guage. Fluency comes not with book learning but with actual use and practice. To be successful, one must invest time and energy to learn the underlying technologies, grow relationships with cloud provid- ers and prepare to have strategic discussions with IT executives about their business drivers. // IN THIS ISSUE ////////// Differentiating Cloud Providers p. 11 ■ 5 Tips for Finding Right Cloud Provider p. 25 ■ Table of Contents p. 2 15
  • 16. Be A Leader In Cloud. Become A Part Of CTTA Today. The Cloud and Technology Transformation Alliance (CTTA) – formerly the Cloud Convergence Council – is a communal forum of IT vendors, distributors, resellers, agents and end users that develops guidance on technology adoption and best practices for the use of technology to maximize business value. Technology is moving fast. Sometimes too fast. That’s where CTTA comes in to play. Through forums and research, CTTA provides the community with perspective and guidance on getting the most out of technology hardware, software and services. The CTTA is open to all companies in the business technology value chain. As a member, you will be able to participate in group forums, receive access to exclusive research and network with peers and vendors. Become a CTTA member today! Want to be a CTTA Sponsor? Signing up is easy. Go to: For more information contact: www.cttalliance.com Susan Kostbar at (480) 675-8102 2012 CTTA Sponsors Gold Sponsors Titanium Sponsor Silver Sponsor Bronze Sponsor IT CTTA is facilitated by M ™ T ELEC O
  • 17. In this article, we will offer background and questions to help define your client’s requirements and recognize provider differen- tiators — both strengths and shortcomings — so you can begin to help your clients reap the benefits cloud can offer. NOT ALL CLOUD SERVICE PROVIDERS ARE CREATED EQUAL. In 2002, Amazon Web Services was launched offering a suite of cloud-based services including storage, computation and even human intelligence through the Amazon Mechanical Turk. It wasn’t until 2006, with the launch of their Elastic Compute Cloud EC2, that “utility computing” became a recognized term defined as a com- mercial service that allows small companies and individuals to rent computers on which to run their own computer applications. Hosting providers such as Savvis, SoftLayer and Rackspace also were among the first to offer what’s now considered cloud computing. Fast forward to 2012 and there are more providers than you can name. New entrants to the market are surfacing rapidly. Some cloud providers are able to integrate a full suite of data center, IT, security and network services into a total solution set uniquely tailored to your client’s immediate and long-term cloud vision. Others are focused on the mass market and emphasize self- service, portal-driven products predominantly relevant to startups and developers. Most, however, provide only subsets of a total solution, requiring a cobbling together of third-party services from entities that you either don’t know or with whom you don’t have an established working relationship. As a valued adviser to your client, you want to help guide them toward the most relevant solutions for their particular situation. Therefore, it is crucial to | channelpartnersonline.com begin by fully evaluating and defining the refer- ence architecture, technical and performance indicators, and underlying business drivers that are supporting their migration to cloud. While traditional telcos may offer infrastructure- as-a-service (IaaS), either organically or through cloud provider CHANNEL PARTNERS DIGITAL ISSUE  CLOUD COMPUTING OCT 2012 acquisitions, they may not be the most mature players in this space. The biggest pitfall of limiting your search to providers currently in your portfolio is that, with few exceptions, these will include the larger, established, traditional network service pro- viders that have only recently adopted IaaS as a set of adjunct or tertiary services. With few exceptions, the Iaas solutions offered by carriers today are much less mature, have fewer features and functions, and require more manual intervention for setup and changes. So, while it is less work to focus exclusively on your bench of incumbent carriers to find options, you’ll be doing your client a great disservice by forcing them to fit into what will likely be an immature or restrictive solution. Therefore, hosting and cloud services may not be these companies’ // IN THIS ISSUE ////////// Differentiating Cloud Providers p. 11 ■ 5 Tips for Finding Right Cloud Provider p. 25 ■ Table of Contents p. 2 17
  • 18. core competency. (CenturyLink’s acquisition or environments need to be moved and the of Savvis and Verizon Wireless acquiring Ter- business drivers for moving them. Only then remark are two notable exceptions.) Your best can you can begin the search for the right bet is to find firms that have invested signifi- cloud provider. cant time, money and personnel to convince the market that they are committed to cloud EVALUATING A PROVIDER computing and your client’s positive experi- Armed with the client requirements, you ence. If this set of products is not fully baked can begin searching for the right cloud service (or clearly explained) on the front end, chances provider. When vetting a cloud provider, focus are, it won’t be baked on the back end either. a few key areas: • Performance/Architecture and Tech- nical Considerations • Security • Service/Support • Pricing Understanding cloud is like Performance/Architecture and Tech- learning a new language. nical Considerations. From a performance Fluency comes not with and technical considerations standpoint, book learning but with you’ll want to understand how long the provider has been in the IT outsourcing actual use and practice. business and if the provider has the finan- cial resources to continue to deliver and upgrade services throughout the business life cycle. Business is global; is your provider? Does START WITH THE the service provider offer the seamless global RESULTS IN MIND footprint your client’s business needs to grow? It is crucial that you understand what the Can the data and environment be easily repli- client is trying to accomplish from a business cated globally? Will you be able to manage the standpoint before having an effective cloud | channelpartnersonline.com infrastructure transparently, regardless of time conversation. In other words, what needs or location? aren’t addressed in the client’s current envi- As you search for a cloud provider, it is ronment that is driving the pursuit of a cloud critical to understand how well your client’s solution? If the client doesn’t have a clear application will perform after it’s moved to picture of what his/her real needs are, you the cloud. You’ll want to assure that your cli- won’t have one either. ent’s application will perform as well as users CHANNEL PARTNERS DIGITAL ISSUE  CLOUD COMPUTING OCT 2012 True IaaS is can be as simple as spinning expect, now and in the future. Here are a few up some compute instances for a test and questions to ask: development environment, but it also can be • Is the cloud service provider using current as complex as moving an e-tailer’s production generation enterprise-grade hardware to host infrastructure into a hybrid colocation/cloud my client’s data? environment involving a phased migration • Will the provider reveal the names of the strategy and complex design. hardware vendors it utilizes to provide the So, it’s important to define the requirements service? (Cisco, Hewlett-Packard, VMware, first. Many clients are taking a hybrid approach Microsoft, etc.) to cloud services. Before searching for the right • Is the provider committed to keeping up cloud service provider for eager clients, it’s with the rapid pace of technology changes important to understand which applications thought the life cycle of the business? // IN THIS ISSUE ////////// Differentiating Cloud Providers p. 11 ■ 5 Tips for Finding Right Cloud Provider p. 25 ■ Table of Contents p. 2 18
  • 19. IT M ™ Solution Center T ELEC O Business Ethernet. Maximum Connectivity. Maximum Value. A Solution for Your Customers The need for reliable data access that Business Ethernet can accommodate remote workers and The Business Connectivity of Choice multiple locations makes choosing the right connectivity a critical decision. Download the Data Sheets and Business Services Whitepapers contained within this Learn More: Call us at 877.634.2728. Is Ethernet the Right Choice for Your Network? www.megapath.com Solution Center to learn more about Business Ethernet – a solution for your customers that can deliver more Business Ethernet vs. T1 Comparison bandwidth than traditional T1 and Bonded T1 services, at a much lower cost. T1 vs. Business Ethernet Comparison: Ethernet—where available—offers both higher bandwidths and lower prices than comparable T1 service, but has distance limitations while T1 is practically everywhere. T1 AND BONDED T1s BUSINESS ETHERNET DIFFERENCES Symmetrical Bandwidth Symmetrical Bandwidth T1: 1.5 Mbps 2, 3, 5, 8, 10, 20 Mbps Ethernet offers higher Bonded T1: 3, 4.5, 6, 7.5, 10.5, 12 Mbps Additional speeds up to 45 Mbps available bandwidth options in select markets. 99.99% uptime SLA 99.99% uptime SLA Learn More: Call us at 877.634.2728. www.megapath.com Topics include: 1.5 T1 price $299/mo. 2x2 Ethernet: $199/mo. Double bandwidth for less than 3x3 Ethernet: $299/mo. comparable T1 price Loop bonding – more expensive Loop bonding Industry standard • Ethernet vs. T1 Comparison Sheet Available nationwide 365 MSAs 7,000–9,000 ft from CO to get Ethernet but Ethernet has distance nationwide footprint; distance limitations limitations vs. T1 which is ubiquitous Quality of Service with VoIP Quality of Service with VoIP • Business Ethernet: The Advantages Dedicated DSL/speed will not fluctuate Speed will not fluctuate T1 voice and data line is a form of Internet Fast Ethernet is the cabling used in LAN connection environments, making them speedier and more reliable Tops out at 12 Mpbs Connect multiple business locations to give a high-speed dedicated Ethernet connection to ramp to private cloud networks—such as nationwide or international MPLS networks for Business Customers • Choosing Ethernet Services T1 lines offer 1.5 Mbps per line. Each Where available, Business Ethernet often Ethernet, where available, additional line bonded to the original line offers both higher bandwidths and lower offers both higher bandwidths increases the speed by 1.5 Mbps; for prices, partially due to the efficiency of the and lower prices example, a double-bonded solution is technology involved in transmitting higher 3 Mbps. Bonding is practical up to bandwidths over common copper wiring. 10–12 Mbps; above that, other solutions— such as DS3 or Ethernet—are often more • More! cost effective. Get Started Now: 877.634.2728 to learn more. www.megapath.com Sponsored by: Find the complete Solution Center at channelpartnersonline.com/solution-centers.aspx
  • 20. • Does the provider offer a range of services that can be mixed and matched to best fit the requirements of all my client’s cloud- based applications? • Can the provider integrate hybrid solutions requiring connectiv- ity between my client’s private data center, colocation, managed hosting and cloud? • Does the provider offer a range of connectivity offerings, from general Internet access to high-speed secure private networking? Is the connectivity provided directly from the provider or sourced via third party? Does the provider manage this connectivity? Is there a service level agreement (SLA) for the connectivity? How is that connectivity integrated into the cloud solution? • Which hypervisor does the provider use? This is important because there is no standard hypervisor. Most companies lever- age VMware ESX, but does the provider? Understanding this can help scope whether or not you can import and the virtual machines your client already has. • Can the provider support the VM specifications your client needs? This will help define whether your cli- ent’s app is able to run properly. • How many CPUs, GB of RAM or disk can a single VM have? Can your client leverage the same host names, IP and MAC addresses the company uses internally? • How many VM modules are to be used? Security Considerations. Security, especially as it relates to public cloud offerings, is a popular concern when moving mis- sion-critical data to the cloud. But don’t rule out public cloud com- pletely until you understand how prospective providers handle this area. Be sure to understand how the data is secured by asking the | channelpartnersonline.com following questions: • Does the provider offer a secure environment, both physically (data center) and logically? How secure is this environment? • Does the provider maintain a “defense-in-depth” solution that meets all my client’s internal security requirements? • Is the security built into the product offering, or is it something you and your client will have to design and bolt onto the solution? CHANNEL PARTNERS DIGITAL ISSUE  CLOUD COMPUTING OCT 2012 • Is the security provided by and supported by a professional internal organization? Does it require the involvement of a third party? • Can the security provided be customized and adopted to meet requirements unique to my client’s enterprise? • Does the provider meet all of the various business and regulatory compliance that the enterprise is legally required to implement? • Can the provider document its compliance/security processes and procedures? • Can I be confident that the security measures the cloud service provider offers are as stringent as the ones implemented within my client’s own data centers? // IN THIS ISSUE ////////// Differentiating Cloud Providers p. 11 ■ 5 Tips for Finding Right Cloud Provider p. 25 ■ Table of Contents p. 2 20
  • 21. • Can the service provider tell you with certainty where the business critical data your client shares with them will reside? If not, is it certain it is secure? Service & Support Consider- ations. At this early stage in cloud Application portability and access adoption, most service level agree- to technical resources will be ments (SLAs) are one-sided in favor paramount to offer assurance that of the provider. This limits their lia- future needs will be addressed. bility in an emerging market and allows them to offer the most aggres- sive price points. While studies have proven that higher SLAs don’t equate to higher uptime, you should • Is the cloud ser vice provider’s eliminate those who aren’t standing pricing clear and understandable? behind their service. Here are some • What is included and excluded from questions to ask: the solution’s pricing? • Does the provider offer compre- • Is support built into the pricing hensive and documented SLAs? model, or is it a premium on top of • Is there a clear and concise escala- the standard pricing? tion path? • Are essential components missing • Are the SLAs applicable immedi- that require third party plug-ins? ately or after some arbitrary time has • Does the pricing deliver and satisfy elapsed? the value I expect to realize from my • Are there exceptions during mainte- client’s cloud strategy? (Low pricing nance windows? does not equate to high value if all • Are they clear and easy to other requirements are not fully understand? satisfied.) | channelpartnersonline.com • How easily are they enforced? • Can I view my client’s company From a support perspective, ask spend throughout the month? whether the service provider offers • Can I control who has access to the following: utilize the cloud services? • local onsite team of cloud experts? • Can spending and spending con- • a clear and concise escalation trols be implemented on a depart- path? mental or individual basis? CHANNEL PARTNERS DIGITAL ISSUE  CLOUD COMPUTING OCT 2012 • a global view of a client’s entire • Does the cloud provider offer and cloud solution? suppor t an API to inte grate the • a single neck to choke from a service into my client’s operational support perspective? model? • real-time trouble tickets? • Does the cloud provider of fer reporting that truly helps run my cli- Pricing Considerat ions. The ent’s business more efficiently? most obvious reason to have the • How will this pricing model scale as solution defined prior to soliciting my client grows? pricing is to ensure the proposals • Does this pricing favor my client’s reflect the exact specifications and compute and storage usage/ costs to facilitate the comparison. utilization? // IN THIS ISSUE ////////// Differentiating Cloud Providers p. 11 ■ 5 Tips for Finding Right Cloud Provider p. 25 ■ Table of Contents p. 2 21
  • 22. IT CLOUD vs. MANAGED UC M ™ Cloud UC vs. Managed UC: T ELEC O FREE WEBINAR SERIES Which Is Right For Your Customer? Available On Demand The hype over UC has become reality. Find out about managed and cloud UC solutions and how to match them to customer requirements in this Webinar. CLOUD PARTNERS EDUCATION Learn the Secret to Becoming ON YOUR a High-Value Cloud Partner Available On Demand SCHEDULE How can you move your cloud practice up the value chain? Find out in this Webinar. This exclusive Channel Partners Webinar Series features information on mobility, deciding between cloud UC vs. managed UC for your MOBILITY customers and developing a custom CompTIA Quick Start Guide cloud practice. All of the content in these premier Webinars is free, and to Crafting a Mobility Offering Available On Demand access is now available On Demand. Smartphones and tablets are accelerating businesses’ move to mobility. Find out VIEW TODAY the steps for building a successful mobility strategy in this Webinar. To view these webinars, visit: channelpartnersonline.com/webinars
  • 23. Only by thoroughly evaluating prospective service pro- viders and vetting their applicability to solve your client’s unique business requirements can you ensure a success- ful partnership. Shortsighted decisions based solely on price can lead to frustration and soured relationships. Buying enterprise-class infrastructure also isn’t enough. The provider must be committed to its VMware rollout, open API integration and self-service portals, and have specialists available for pre- and post-sales support. Client requirements inevitably will evolve over time. Application portability and access to technical resources will be paramount to offer assurance that | channelpartnersonline.com future needs will be addressed. While your clients will ultimately define what’s most important to them in the selection process, your guid- ance, introductions and vetting assistance will be deemed invaluable. Providers, clients and the channel community are all together in this early adoption phase. Each opportunity is a chance to dive deeper into this MORE INFO//// CHANNEL PARTNERS DIGITAL ISSUE  CLOUD COMPUTING OCT 2012 rapidly evolving market. ARTICLE Channel Women Support ‘Cloud Girls’ Group Jo Peterson is director of Converged Cloud and Data Services BLOG for telecom agency TeleProviders. Cloudy With a Chance of Rain M a non Buet tn e r is pr inc ip a l at SOURCES Nuvalo, a data center and managed TeleProviders services consulting and brokerage Nuvalo firm. Both are members of the Cloud Computing Forum (aka Cloud Girls), a women’s networking group for channel partners Cloud Computing Forum and suppliers delivering cloud solutions. (aka Cloud Girls) // IN THIS ISSUE ////////// Differentiating Cloud Providers p. 11 ■ 5 Tips for Finding Right Cloud Provider p. 25 ■ Table of Contents p. 2 23
  • 24. IT ™ M T ELEC O REPORT SERIES The State of the Market These “State of” reports are conducted by the Channel Partners editorial team. They deliver quantitative results surrounded by qualitative executive summaries of the findings — designed to help you get a pulse on your peer’s analysis of or purchase decisions for products, technologies or services. Ethernet Services & The Channel March 2012 $39.00 US COMMUNICATIONS • Channel adoption of Ethernet services • Channel revenue from Ethernet services in 2011 and projections for 2012 R E P O R T • Channel sales of Ethernet services by type, speed and application Ethernet Services & The Channel: Underwritten by: State of the Market 2012 Ethernet services are in increasing demand by business. And channel partners — agents, VARs, dealers, systems integrators, consultants and MSPs — are in a position to help customers fill that need. This “State of the Market” report reveals the indirect sales channel’s current and projected sales activity with Ethernet services. By Khali Henderson, Editor-in-Chief, Channel Partners Cablecos & The Channel August 2012 $39.00 US COMMUNICATIONS • Channel attitudes about and adoption of cableco telecom services • Channel comparisons of cableco and telco R E P O R T services and partner programs • Channel experiences with and expectations for cableco channel programs Underwritten by: Cablecos & The Channel: State of the Market 2012 The results of Channel Partners' second annual survey of channel partners’ attitudes about offering cableco programs and services. By Khali Henderson, Editor-in-Chief, Channel Partners Kelly Teal, Senior Editor, Channel Partners Download Now channelpartnersonline.com/reports
  • 25. 5 TIPS For Finding RIGHT THE Cloud Provider ///By Dina Moskowitz | channelpartnersonline.com O ver the past several years, thousands of SaaS and cloud apps have been launched into the market, providing new solutions to business and operational processes, IT infrastructure, communi- cations infrastructure and just about anything else you can think of. We can expect to see thousands more launched as traditional software applications convert to SaaS, new SaaS apps are developed for specialized CHANNEL PARTNERS DIGITAL ISSUE  CLOUD COMPUTING OCT 2012 processes (e.g., managing wireless access points or call centers) and new subcategories of apps are introduced for vertical markets (e.g., point-of-sale apps for single- and multistore owners or kiosks, etc.) The years ahead will be very profitable and exciting for solution provid- ers, resellers and other trusted advisers that are willing to invest the time to research which SaaS and cloud apps would be right for their custom- ers. Smart vendor selection will turn into more reliable long-term recurring revenue. However, there is no question that it can be a daunting task unless you tackle it with structure and method. Below are a few suggestions of how to structure and add method to successful and profitable vendor selection: // IN THIS ISSUE ////////// Vetting a Cloud Provider p. 15 ■ 5 Signs You've Chosen the Wrong Cloud Provider p. 30 ■ Table of Contents p. 2 25
  • 26. 1 Focus on your customer’s needs, not cloud. I’ve been talking to Businesses people about cloud apps for several years now, and I can tell you that “the cloud” is just not tan- are buying gible to most people. Yet studies show more than three quar- ters of the population already are using at least one cloud app. and using A 2012 study by Techaisle reports that in the past two years, the average number of cloud business applications used by cloud apps SMBs has more than doubled, from two in 2010 to four in 2011 to a projected seven in 2012. without These stats, as well as your own personal use of cloud apps knowing are great reminders that people and businesses are buying and using cloud apps without knowing or caring that they are “in the or caring cloud,” because the apps are providing valuable solutions and that they information, and are typically more affordable than traditional software solutions. So, before you begin your vendor selec- are "in the tion process, spend some time with your customer determining what their pains and needs really are, avoiding any talk of the cloud." cloud. Once you understand those needs, think about which ones you are qualified to tackle, and in what order. 2 Use customer requirements as top-level filters. When you’re finding out what your client’s needs and pains are, include less obvious questions that could drive their purchase decisions. Here are a few examples of what to ask your clients in order to quickly identify and | channelpartnersonline.com eliminate unqualified apps: „ Is your organization required to follow regulatory compliance laws such as HIPAA, Sarbanes Oxley, etc., or any internal data and/or security compliance requirements? „ Would you organization prefer or require ecosystem-specific solutions? For example, must it integrate with SAP, Oracle, Microsoft, Google, etc. or is that not a critical factor? „ What is your current accounting platform and CRM platform, and would any software CHANNEL PARTNERS DIGITAL ISSUE  CLOUD COMPUTING OCT 2012 or new processes you purchase be required to integrate with either or both of them? „ Do you expect to add new employees in certain departments of your business in the year ahead? Approximately how many? „ Do you sell products and/or services to the government sector or plan to in the year ahead? „ Do you have offices and/or employees overseas who access your company data? „ Are there limitations to the type of Internet connection that you are allowed to use in your organization? (Some nonprofits, for example, might have employees who still are using Internet dial-up connections). „ What hardware devices does your company currently use and what are your policies or restrictions about access to accessing company data on mobile devices? // IN THIS ISSUE ////////// Vetting a Cloud Provider p. 15 ■ 5 Signs You've Chosen the Wrong Cloud Provider p. 30 ■ Table of Contents p. 2 26
  • 27. A Day n the Cloud Now Online! What Is It? A Day In The Cloud is an exclusive series of Documentaries for cloud education and channel enablement created by Channel Partners. If you want to understand the conceptual, physical attributes and packaging of cloud services and solutions, then this series will be a key educational source for you. Partners with valuable technology insight will be featured in the series and will enhance the business discussion and accelerate the sales cycles at the end customer point. The series will include tutorials, blueprint/schematics of cloud solutions, statistics, videos of physical locations where data is housed, managed and secured, and sales clinics on packaging and selling cloud service. Where Can I Find It? The first documentary, sponsored by AT&T, is now online as part of the Channel Partners Resource Center. Watch for the debut of the second documentary in the series, sponsored by SunGard, to be released in October 2012. channelpartnersonline.com/adayinthecloud Sponsored by:
  • 28. 3 Perform due diligence about how your client’s data will be treated. When a Smart vendor client uses a SaaS or cloud app, they are selection will putting their data in someone else’s care. Whereas con- sumers rarely think about issues of data and security, turn into more when it comes to a business it should be of the utmost reliable long- concern. Below are some examples of important ques- tions you as a solutions provider should be asking sup- term recurring pliers about the security, backup and management of your clients’ data. Most of this information should also revenue. be included in the provider’s standard licensing agree- ment, so it’s important to evaluate the agreement and determine what answers are required or may not 4 be acceptable. Evaluate terms and condi- „ Do you back up my cli- ent’s data? How often? tions in licensing agree- „ Do you save archived ments. When SaaSMAX accepts a versions of my client’s data? new app provider into its marketplace, it „ Where do you host my requires them to disclose several key terms and condi- client’s data? tions in their standard licensing agreements. This helps „ What security do you resellers quickly evaluate those factors and determine deploy when users use whether or not they are comfortable recommending doing your app? „ D o you e ncr ypt my business with a specific supplier. Some of these terms | channelpartnersonline.com client’s data before it is and conditions include but are not limited to: stored and/or before it is „ All end-user’s data is owned by the end user backed up? „ How does my client get „ The perpetual right to use the SaaS app their data back when the „ A provision for the source code to be in escrow contract is terminated? „ A statement that the terms of the agreement are sub- CHANNEL PARTNERS DIGITAL ISSUE  CLOUD COMPUTING OCT 2012 What formats will the data be in? How will this be ject to change at the spp supplier’s discretion accomplished? „ A warranty that the app is free of material defects // IN THIS ISSUE ////////// Vetting a Cloud Provider p. 15 ■ 5 Signs You've Chosen the Wrong Cloud Provider p. 30 ■ Table of Contents p. 2 28
  • 29. 5 Consider your own criteria when select- ing a provider. Now that The better your you know your client’s needs and requirements, think about what’s important to selection up front, your business. „ Do you care if the app provider has an estab- the more trust lished distribution/channel partner incentive pro- you will have with gram in place? (If they don’t you could be facing an inexperienced or undercapitalized vendor, or your clients. one that does not appreciate the role you play in the sales process). „ Does your business rely a lot on service reve- nues providing training, integration and support? If so, you might want to avoid app vendors who In summary, being smart insist on providing that themselves. about selecting the right SaaS „ Is it important to you that the SaaS and cloud and cloud app providers for your apps you sell be white labeled to display your brand? customer will require some time „ Do you need to control the client billing and and a learning curve up front. provisioning process? Will you only work with But done right, the rewards can SaaS and cloud vendors who sell to you whole- be multiyear recurring revenue sale? Or do you prefer that the customer contract from providers that are happy to direct with the app vendor and let them handle compensate you for your invest- the billing? ment and client-retention efforts. „ Do you care if your commission is one-time And the better your selections versus the life of the transaction? Different app are up front, the more trust and | channelpartnersonline.com vendors offer different incentives and you should influence you will have with your be aware of them. clients as you recommend and sell additional solutions. Dina Moskowitz is founder and CEO of SaaSMAX Inc., a SaaS distribution, marketplace and channel manage- CHANNEL PARTNERS DIGITAL ISSUE  CLOUD COMPUTING OCT 2012 ment platform to help solution provid- MORE INFO//// ers prequalify SaaS/cloud software as ARTICLES well as facilitate deal management, SaaSMAX Debuts Channel commission management, reseller contracting and Cloud Marketplace market enablement between SaaS ISVs and solu- tion providers. Prior to SaaSMAX, Moskowitz was BLOG CEO and founder of Critical Digital Data Solutions Is The Cloud Profitable Inc., which developed cloud-based data storage for Your Business? solutions. She earned a bachelor’s degree in eco- nomics from the Wharton School of Business, Uni- SaaSMAX Inc. versity of Pennsylvania. Techaisle // IN THIS ISSUE ////////// Vetting a Cloud Provider p. 15 ■ 5 Signs You've Chosen the Wrong Cloud Provider p. 30 ■ Table of Contents p. 2 29
  • 30. 5 SIGNS You’veTHE chosen WRONG Cloud Provider ///By Scott Kinka | channelpartnersonline.com A ccording to Microsoft, the number of small busi- nesses entering the cloud business will triple in the next few years. So if you’ve already become a part of that statistic, you’ve made a wise choice. Unless, of course, CHANNEL PARTNERS DIGITAL ISSUE  CLOUD COMPUTING OCT 2012 you’ve picked the wrong provider to be your partner. Picking the right partner is easier said than done. And when it comes to the cloud, it’s hard to tell one provider from the next. So if you can’t even tell them apart, how are you supposed to pick one that will help you grow during the next phase of your evolution? Only you know what will be the right fit for your customers. But here are the five things you must understand about your vendors to make the right choice: // IN THIS ISSUE ////////// 5 Tips for Finding the Right Cloud Provider p. 25 ■ Contacts p. 33 ■ Table of Contents p. 2 30
  • 31. 1 Type of cloud. There are significant differences between public, private, hybrid and virtual private offerings. They all meet very spe- cific business needs, but consumer interest and service provider commod- itization have caused businesses to misuse each offering. For example, Amazon (largely credited with the invention of the public cloud) targets the Web applica- tion development, testing and research communities. Although the terms and condi- tions specifically state what data should be placed in that cloud, it hasn’t stopped cus- tomers and their partners from moving mission-criti- 2 cal and other sensitive data there. It also hasn’t pre- vented ser vice providers The “also” cloud. The Microsoft survey mentioned pre- f rom building their own viously also found an important fact offerings on top of that surprised the industry: Amazon’s public infrastruc- ture. It’s important to make Businesses that are looking to move more services sure that the abilities of the to the cloud want to do so with the same vendor. cloud you’ve chosen will be Unfortunately, most pure-play cloud providers focus able to fulfill your custom- on doing one thing and doing it well (email, hosted er’s business objectives. PBX, desktop, etc). But now, based on customer While the public cloud might be an inexpensive demand, many of these providers (as well as tradi- option, it doesn’t meet most tional carriers) have decided to quickly cobble standard business require- together additional cloud products or start reselling ments for privacy and secu- other clouds to look like all-in-one commercial offer- rity. If you don’t know what ings. Channel partners must ask the tough ques- kind of cloud you’re pro- posing to your customer, tions to understand if their provider is actually deliv- | channelpartnersonline.com find out. ering that cloud or someone else’s “also” cloud. 3 Cloud infrastructure. IP lowers the barrier of entry for CHANNEL PARTNERS DIGITAL ISSUE  CLOUD COMPUTING OCT 2012 service providers as much as it does for customers. This means that it doesn’t take a lot of expense to start up a few servers and get in the game. The issue is that it takes a ton of money to do it right, and it’s the channel partner’s job to make sure its customers understand what they are getting into. Platform and software manufacturers, open source or supported, dedicated or high availability, speed and type of storage, geographic diversity, security and third-party auditing, and compliance on systems and process — these factors and more have to be considered, understood and dealt with by a channel partner. That’s not a trivial task that an organiza- tion can get involved with quickly and take lightly. Remember, just because a billion-dollar carrier is offering a cloud service doesn’t mean it has invested billions of dollars in its new cloud offering. // IN THIS ISSUE ////////// 5 Tips for Finding the Right Cloud Provider p. 25 ■ Contacts p. 33 ■ Table of Contents p. 2 31
  • 32. Oversimplifying and overpromising. 4 I often have potential customers tell me that our competition promised to help the customer move everything to the cloud and support its end users, both for no additional fee. This is simply misleading. Despite what many cloud service providers tell you, moving to the cloud requires the customer’s IT staff, who know the business, to take part in the migration. There is no magic wand that makes everything appear in the cloud. These promises seem attractive to the channel partner because they can offer an on-ramp to the cloud without effort and expense. But when the service provider says “no,” your customer will be blaming you for your poor recommendation. Misunderstanding 5 continuity. It’s true that the cloud provides disaster recov- Before you select an all-in-one cloud vendor, ery that customers generally can’t be sure to understand afford by themselves. A well-designed offering is where your provider built on the right equipment, in a proper enter- prise-class data center, with high availability built stands on these five in. However, moving something to the cloud does critical questions. not mean that it’s served from all over the world automatically. Generally, cloud providers don’t move your customer’s critical apps and content, Channel partners have an unprec- free of charge, to the West Coast if the East edented opportunity in front of them, Coast experiences an outage, and vice versa. because more and more custom- The customer will still have to buy resources ers are understanding the cloud and elsewhere to make this happen. And while many choosing to move more services to | channelpartnersonline.com cloud providers offer services to support this it. But they also have a tendency to level of continuity, failures in the cloud are not want to lean on a single vendor to do unheard of. The bottom line: Setting the wrong so. Before you select an all-in-one expectations in the beginning will lead to a real cloud vendor, be sure to understand problem when disaster strikes. where your provider stands on these five critical questions. CHANNEL PARTNERS DIGITAL ISSUE  CLOUD COMPUTING OCT 2012 Scott Kinka is CTO and founding partner of Evolve IP, an IT and com- munications cloud services provider. MORE INFO//// Kinka is responsible for designing, BLOGS implementing and delivering a com- The Problem With Cloud prehensive suite of application, infra- Service Providers structure and security solutions. He has been SOURCES involved in sales and consulting of advanced Evolve IP application, communications and networking solutions for more than 12 years. Microsoft // IN THIS ISSUE ////////// 5 Tips for Finding the Right Cloud Provider p. 25 ■ Contacts p. 33 ■ Table of Contents p. 2 32
  • 33. About Channel Partners IT ™ M T ELEC O CHANNEL PARTNERS CONTACTS For more than two decades, Channel SALES/MARKETING Partners has been the leader in providing NETWORK LEADER news and analysis to indirect sales John Siefert – jsiefert@vpico.com, ext. 1233 channels serving the communications STRATEGIC ACCOUNT DIRECTOR industry. It is the unrivaled resource Susan Kostbar • skostbar@vpico.com, ext. 1402 for re selle r s, aggre gator s, agents, CHANNEL PARTNERS EVENT SALES DIRECTOR brokers, VARs, systems integrators, Stacy Whitley • swhitley@vpico.com, ext. 1075 interconnects and dealers that provide ACCOUNT EXECUTIVE network-based communications and Andrew Masayestewa • amasayestewa@vpico.com, ext. 1061 computing services, associated CPE and applications as well as managed AUDIENCE AND CONTENT COORDINATOR and professional ser vices. Channel Lauren Kane • lkane@vpico.com, ext. 1113 Par tners is the official media of the MARKETING AND AUDIENCE CONTENT MANAGER Channel Partners Conference & Expo. David Hurley • dhurley@vpico.com, ext. 1091 REPRINTS & LIST RENTALS Jennifer Thompson • jthompson@vpico.com, ext. 1170 Subscription Customer Service • 800-581-1811 EDITORIAL EDITOR-IN-CHIEF Khali Henderson – khenderson@vpico.com, ext. 1678 SENIOR EDITOR Kelly M. Teal – kteal@vpico.com, ext. 1020 MANAGING EDITOR Buffy Naylor – bnaylor@vpico.com, ext. 1043 CHIEF EXECUTIVE OFFICER John Siefert EXECUTIVE VICE PRESIDENT/CFO Kelly Ridley SENIOR ONLINE MANAGING EDITOR | channelpartnersonline.com CONTROLLER Jennifer Janos Craig Galbraith – cgalbraith@vpico.com, ext. 1124 VICE PRESIDENT, HUMAN RESOURCES Heather Wood CONTRIBUTORS Manon Buettner Rauline Ochs PUBLISHED BY VIRGO PUBLISHING, LLC Scott Kinka Jo Peterson 3300 N. Central Ave., Suite 300, Phoenix, AZ 85012 Dina Moskowitz Lawrence M. Walsh Tel. 480-990-1101 • Fax 480-990-0819 Website: vpico.com CHANNEL PARTNERS DIGITAL ISSUE  CLOUD COMPUTING OCT 2012 PRODUCTION VICE PRESIDENT, MARKETING SERVICES Danielle Dunlap Copyright © 2012 VIRGO Publishing, LLC. All rights reserved. The publisher reserves the right to accept or reject any advertising or editorial material. Advertisers, and/or their ART DIRECTOR, COMMUNICATIONS Israel Laveaga agents, assume the responsibility for all content of published advertisements and assume responsibility for any claims against the publisher based on the advertisement. Editorial ADVERTISING ART DIRECTOR Angela Wright contributors assume responsibility for their published works and assume responsibility PRODUCTION MANAGER Leez May for any claims against the publisher based on the published work. Editorial content may not necessarily reflect the views of the publisher. Materials contained on this site may not be reproduced, modified, distributed, republished or hosted (either directly or by linking) without our prior written permission. You may not alter or remove any trademark, copyright or other notice from copies of content. You may, however, download material from the site (one machine readable copy and one print copy per page) for your personal, noncommercial channelpartnersonline.com use only. We reserve all rights in and title to all material downloaded. All items submitted to CHANNEL PARTNERS become the sole property of VIRGO Publishing, LLC. // IN THIS ISSUE ////////// 5 Signs You've Chosen the Wrong Provider p. 30 ■ Editor's Letter p.4 ■ Table of Contents p. 2 33