James Raquepau (jraquepau@parallels.com) Errol Vanderhorst (evanderhorst@parallels.com) APS Business Development APS Connect: Building Packages and Landing Deployments ©2014 Parallels IP Holdings GmbH THE PATH TO DEVELOPING TIGHT INTEGRATION WITH A GREAT USER EXPERIENCE 4 Step Process Define The APS Opportunity Develop Inhouse or Outsource Design Develop Deploy Service Assessment Package Coding & Review Launch & Lifecycle Service Design Certified for Parallels Go-toMarket Program Service Offer Development APS BUSINESS & TECHNICAL INTRODUCTION – LEARN ABOUT APS What is the APS Ecosystem? ISVs with self-hosted and syndicated cloud services • 500 cloud service applications in the APS Catalog • 10X growth in SMB users in 2013 • Top workloads in 2013 Email Websites The APS Opportunity Security Target channel partners for APS-enabled services • Large CSP Operators • Hosters • Distributors • and MSPs Leadership sponsor, Product and Technical contacts assigned APS BUSINESS & TECHNICAL INTRODUCTION – LEARN ABOUT APS What is an APS application package? Automated selling/provisioning/billing of services • • APS packages defines the The APS Opportunity • Business model for selling a cloud service • SMB customer information and resources required to provision a cloud service • Billing parameters for invoicing an SMB customer for the consumption of a cloud service Parallels Automation is the platform that runs the APS application package • Provides storefront and business (i.e. workflow) automation, including offering bundles, upselling, and cross selling of multiple services • Exposes a service via control panels and processes the APS provisioning logic by providing a single pane of “glass” for all SMB services offered • Collects and processes billable data from the cloud service APS BUSINESS & TECHNICAL INTRODUCTION – CHANNEL READINESS & API REVIEW Is your service ready for the service provider channel? Service Provider Channel Readiness Service Assessment • • Support: Service & Support SLAs, Support Systems Sales: Partner Program & Business Model for Cloud, Regional Coverage/Localization, Branding/White-label, Multi-Tier Reseller Support • Product/Development: Product Management, Docs, Tools, Support, Dev Platforms Key API/UX Readiness • Public/Private APIs (Self-Hosted/Syndicated) • Multi-tenancy support for accounts & users • • Channel ready billing, provisioning, & management APIs (CRUD) Reseller friendly user experience (Portal or API Oriented) • Identity management service interface • Service development/testing/QA support Business and Technical check lists APS BUSINESS & TECHNICAL INTRODUCTION – CHANNEL READINESS & API REVIEW Is your service ready for the service provider channel? APS Business Readiness Assessment Checklist ISV Name Service Assessment Business Contact Name Business Contact Email Date Updated Product Name Brief Product Description # 1 2 3 4 Question Y/N Currently Selling or Plans to sell via cloud distribution channel? Please briefly explain history of cloud distribution. Has sales people or plans to have sales people focused on the cloud distribution channel? Please explain geographic coverage model. Has a business model and licensing that supports cloud distribution resale? Please briefly explain how licensing works and typical terms Has marketing material to support a cloud distributor? 5 Resale is globally available. If limited, please explain geographic limitations. 6 Qualifying for joining the reseller program is open and not restrictive. Explain qualification requirements and any limitations. 7 Do you have experience negotiating distribution contracts with communications service providers? Example companies? Are you focused on the SMB market via cloud service distributors? What % of your business is via, SMB vs. Enterprise for cloud distribution? 8 9 10 Are you investing for the long term for cloud service distribution, including sales development, aps package maintenance, etc.? What is your ROI timeline expectation for the channel investment? Do you have a cloud distributor support model? 11 Is the service hosted by the service provider (your software is deployed in the service provider's data center)? 12 13 Is the service syndicated by the service provider (You run an mange the service in your own datacenters)? 14 Is the product available globally without restriction? (if there are restrictions, what are they). Do you have Multilanguage support? (if yes for which languages) Business and Technical check lists Comments APS BUSINESS & TECHNICAL INTRODUCTION – CHANNEL READINESS & API REVIEW Is your service ready for the service provider channel? APS Technical Assessment Checklist Service Assessment ISV Name Technical Contact Name Technical Contact Email Date Updated Product Name Brief Product Description Requiremement Category Option General On Premise Syndicated Yes No Yes No Yes No Yes No Service installation type Application provides customers multi-tenancy Application provides resellers multi-tenancy Service is geo-distributed Service provides different SLA's depending on plan/subscription purchased by account Business and Technical check lists On Premise and Syndicated Possible APS BUSINESS & TECHNICAL INTRODUCTION – BUSINESS/SERVICE MODELING What are you selling and how will you sell it? • Web Presence, Communication & Collaboration, IaaS, Traditional or Vertical SaaS Solutions • Instances (i.e. Website builder, CDN, SEM/SEO), Seats (i.e. O365, Backup), or Units (i.e. CPU, Storage, Bandwidth, Minutes, Hours, Days) • What are the Business / Offering Model Selling Options? • Pricing Model (freemium/premium, levels, discounts, bundles)? • Business Rules (upgrades, downgrades, reporting)? • Billing APIs or data to support the Business / Offering Model? • What is the licensing model (ISV SP & Parallels SP & SP SMB)? • Is customer interaction with the ISV Service Portal allowed? • Have you validated your offering with a launch partner? Service Offer Description Document / Checklist Service Offer Development APS BUSINESS & TECHNICAL INTRODUCTION – BUSINESS/SERVICE MODELING What are you selling and how will you sell it? APS Application Service Offer Checklist ISV Name: Application Name: Last Update: Service Offer Development 1. Business Model # Question 1.1 Service sold per user or resource instance or usage counter? Answer Comments Help Is the service sold per users or per instance/account? E.g. a website or VM are sold per instance, a mailbox per (assigned) user. 1.2 List Per user resources List the billable resources that are sold per user, if applicable. 1.3 List Per Resource Instances List the billable resources that are sold per instance, if applicable. List the resources (from above) that can be billed based on actual usage. Also describe how often the usage will have to be updated (e.g. daily or hourly or monthly). 1.4 List Per Usage Based Resources 1.5 Billing period See comments What periods are supported to be sold, and what is the minimum billing period the service can be sold for (day, week, month, year?) 1.5 Service Offer Examples See comments Provide one or multiple example offer configurations with incl. and additional resources and recommended pricing. Example Service Plan A: - Monthly price: $9.99 - Included resources: o 1 Desktop seat - Additional resources: o Desktop Seat: $8.99 o 1 GB disk space: $1.99 Example Service Plan B: - Monthly price: $39.99 - Included resources: o 1 Desktop Seat o 1 Server Seat o 10 GB of disk space (total 40GB) - Additional resources: o Desktop Seat: $8.99 o Server Seat: $29.99 o 1 GB disk space: $1.99 Service Offer Description Checklist APS BUSINESS & TECHNICAL INTRODUCTION – DECISION POINT Will you build it or outsource development? • Assess Development Skills – PHP/REST & HTML5/JavaScript – PA Domain/Resource Modeling Architect Skills • Assess Development Effort – Typically ~3 man months • Decision Point: Build In-house or Outsource – Based on availability of internal resources and skills – Internally built requires APS & PA Training (online or onsite) – Outsourced development requires obtaining proposals/bids • Either way – Have a plan to own your APS package • Assign a Product Manager & Product Marketing Manager – Support & Maintain your APS package (directly or indirectly) Develop Inhouse or Outsource DEVELOPMENT & DELIVERY PHASE – PACKAGE PLANNING How do I get started once decision is reached? • APS Developer Account (www.apsstandard.org) – – – – – – • • Documentation Developer sandboxes Development tools Example APS 2 packages Manage Support requests Manage package self-validation Documentation templates for Certified for Parallels Automation (CfPA) Training for APS and Parallels Automation (for in-house developers & outsourced projects) Resources committed Develop Inhouse or Outsource DEVELOPMENT & DELIVERY PHASE – PACKAGE PLANNING What is the APS Service Design process? • – Service Requirements Non-Functional Requirements – Personas • Service Dependencies – Scenarios • Deployment of Service – Provider • Branding – Reseller • Support – Customer Admin • Localization & Internationalization – Customer End-User • Billing & Licensing – Functional Requirements • Package Design • Application Lifecycle • Service Lifecycle • User Lifecycle • Integrations with other Applications • Service Provider • • Reseller Single Sign On • • Customer Admin Migrations • Customer End-User – Resource Model • – Required POA Types UX Mockups Service Design Document Review Service Design DEVELOPMENT & DELIVERY PHASE – PACKAGE PLANNING What is the APS Service Design process? • Engage your assigned Parallels BizDev partner manager to set up a discovery & design session Resource Model Complete Service Design DEVELOPMENT & DELIVERY PHASE – PACKAGE PLANNING How should I build my APS Package UI mockup? • Engage Parallels and service provider launch partner to get input on the planned offering model and provisioning workflows Service Design Plan for: • Service Provider Panel • Reseller Panel • Customer Control Panel • My (E/U) Control Panel UI Mockup Created & Reviewed with Parallels APS DEVELOPMENT & DELIVERY PHASE – CODING AND TESTING What are the steps needed to code a great package? • Develop both backend (logic) and frontend (UI) package elements • Write documentation following Certified for Parallels Automation (CfPA) templates • Reengage Parallels & launch partner for pre-package review, including UI Package Developed & Reviewed by Parallels Package Coding & Review APS DEVELOPMENT & DELIVERY PHASE – CODING AND TESTING What are the steps need to certify my package? • Submit package for Certified for Parallels process Certified for Parallels – Package Validation – Security Audit – UI Review – Documentation Review – Publish Certification • Only packages Certified for Parallels will be supported by the APS Support team Package Certified by Parallels APS DEVELOPMENT & DELIVERY PHASE – CODING AND TESTING What is needed launch and maintain an APS package? • Develop APS maintenance and support plan – Product Management ownership of package – Plan for future APS package updates to expose additional services or to support API updates • Launch service with Parallels Automation partner – Ensure sales/support training takes place – Co-develop marketing plan to drive awareness • Build Go-to-Market plan – Assign Product Marketing Resources – Compete Phase 2 marketing materials (see next section) Package Launched Package Launch THE PATH TO DEVELOPING TIGHT INTEGRATION WITH A GREAT USER EXPERIENCE 4 Step Process Define The APS Opportunity Develop Inhouse or Outsource Design Develop Deploy Service Assessment Package Coding & Review Launch & Lifecycle Service Offer Development Service Design Certified for Parallels Go-toMarket Programs LANDING DEPLOYMENTS: WHO ARE PARALLELS AUTOMATION USERS? Diverse ecosystem of service provider partners • HOSTERS • TELCOS • ISPs • DISTRIBUTORS • MSPs SMBs 1 - 1000 LANDING DEPLOYMENTS: WHO ARE PARALLELS AUTOMATION USERS? Diverse ecosystem of service provider partners • HOSTERS • TELCOS • ISPs • DISTRIBUTORS • MSPs SMBs 1 - 10 / 10 - 25 / 25 – 100 / 100 - 1000 LANDING DEPLOYMENTS: WHO ARE PARALLELS AUTOMATION USERS? GTM diversity within segments TELCO A TELCO B Lift ARPU Retain customers SMB SMB & IT Pro • Syndicate • Host solution • Best in brand • White-label • One size fits all markets• Differentiate by region No two Go To-Market Programs the same! LANDING DEPLOYMENTS: WORKING WITH LARGE SPs Taking Products to Market is Complicated Business Case Opportunity Go-to-Market Strategy/Plan Offer Channels Marketing Market & Sell (GTM Execution) Sales • Multiple Orgs Involved • • • • • Product management Launch Products, compete for attention IT/Ops Simplify Life / Play with Cool Stuff / Budget Management Sales Meet targets, default to traditional products Customer Care Customer Sat / Cost control Marketing The “Big Agenda” of the week Onboarding Support Typically 9-18 months to launch new service; +24 months to scale or fail • Sometimes don’t align till Executive gets involved Key to Success Exec sponsor who cares, continual deep engagement across value chain LANDING DEPLOYMENTS: WHY SO LONG? Package GTM & Monetization Barriers Business case • Convince multiple P&L owners to dedicate resources to sell non-core products with lower ARPUs and margin • The driver: reduce customer churn or exploit new revenue streams Go-toMarket • Productize SKUs • Define Service Plans • Get PM focus on service creation • Compete: cloud vs core services • Channel strategy: Multichannel and geography footprint • Buyer journey • Convince multiple BUs with different focus and KPI’s • Usage reporting (resources, activation…) Market & sell • Lack of sales momentum (inbound upsell, no campaigns, no marketing) • Selling standalone vs bundled services • Enable multiple channels • Customer activation • Compensation considerations • Approval for ISV sales incentives on top of corporate plans • Marketing: propensity buying lead/demand gen, PA Platform • Upgrade to PA 5.5+ • Resources to build and test new services • Regression testing • ISV onboarding • Migration path (APS 1.2 to APS 2) • Multi-ISV support model LANDING DEPLOYMENTS: CURRENT STATE Where is Parallels spending time? Business Case <5% Go-ToMarket <5% Market & Sell <5% PA Platform >85% Current Focus: Dealing with support, product and account issues, not revenue generation LANDING DEPLOYMENTS: CURRENT STATE Where are ISVs spending time? Business Case <5% Go-ToMarket <5% Market & Sell <5% ISV Service >85% Current Focus: Dealing with support, product and account issues, not revenue generation LANDING DEPLOYMENTS: CURRENT STATE Where are Service Providers spending time? Business Case 40%? Go-ToMarket 10% ? Market & Sell 10% ? PA Services 40%? Current Focus: Dealing with multiple masters, product issues, not revenue generation LANDING DEPLOYMENTS: PROPOSED STATE Collective focus on driving sales volume Commit resource to: - Business Case Cross department Sales training. Support can also sell. Work with Business/HR to put incentives in place Who owns the P&L number? Does he/she really own it? Have a strategy (perhaps a product) for as many channels as possible Be proactive: perform outbound campaigns with propensity buying analysis Consider onboarding players Go-ToMarket Market & Sell Platform & Service LANDING DEPLOYMENTS: RECOMMENDATIONS Create ‘Marketing & Selling’ Programs Goal: Drive sales volume based on three pillars 1 Marketing execution • Customer propensity modelling for effective customer targeting Better messaging Effective online journey Campaign development • • • 2 • • Channel expansion 3 Channel strategy and planning Introduction and onboard 3rd party telesales partners • • • • • Sales execution Sales training Enablement tools/content Cross/upsell strategy Bundle with APS apps Commission/incentives analysis Questions Paal15 What do we do? Positioning & messaging Concepting & branding Go-to-market & execution Paal15 What ambitions do we help our customers with? Setting up new channels (direct or indirect) Bringing new services to the market Onboarding and activating new partners or end-users #ParallelsSummit ©2014 Parallels IP Holdings GmbH