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Cloud Model Choice - PowerPoint Presentation

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Cloud Model Choice - PPT Presentation

Private Hybrid and LesserKnown Models for Partners Lee Bank Senior Director of Alliances amp Channels Oracle Financing January 2015 2 Creating Competitive Advantage Give partners the option to provide perpetual license rights at the end of the service term ID: 557448

partner cloud model amp cloud partner amp model services saas customer solution term software oracle data implementation center applications

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Slide1

Cloud Model Choice

Private, Hybrid, and Lesser-Known Models for Partners

Lee Bank

Senior Director of Alliances & Channels

Oracle Financing

January 2015Slide2

2Slide3

Creating Competitive Advantage

Give partners the option to provide perpetual license rights at the end of the service term

Drop software input costs to $0 for customer renewal terms

Allow customers to leverage existing software licensing and hardware investments

Recover implementation costs upfront even when customer payment is spread over the solution term

3

Cloud Model Choice for PartnersSlide4

Program Agenda

Partner ChoiceAny CloudUnderstanding and Benefiting from Component Break-upTradeoffs and Considerations for Each Model

Next Steps

1

2

3

4

5

4Slide5

Cloud Model Partner Choice

Oracle Public Cloud

SaaS applications (CRM, HCM, ERP… Taleo, Endeca, Eloqua, Responsys)

IaaS, PaaS, XaaS

“Synthetic SaaS” Model

Bring Your Own License (BYOL)

Portable SaaS

“SI’s Proprietary Solution” Model

Business Process Services (BPS)

5

Public Cloud, Private Cloud, Hybrid and Lesser-Known ModelsSlide6

What Qualifies as a “Cloud” Solution?

6

?

Cloud /

SaaS

Solution Model

Off-Premise, Hosted

No IT or Data Center Resources Required

Seamless Bug Fixes and Upgrades

Fixed Term (with Termination Fee)

Monthly (or Periodic) Payments

No Ownership / No Capital Expense (Services /

OpEx

Accounting Treatment)

Cloud /

SaaS

Solution ModelSlide7

Inside the Cloud “Black Box”

7

Off-Premise, Hosted

No IT or Data Center Resources Required

Seamless Bug Fixes and Upgrades

Fixed Term (with Termination Fee)

Monthly (or Periodic) Payments

No Ownership / No Capital Expense (Services /

OpEx

Accounting Treatment)

Cloud /

SaaS

Solution Model

Implementation / Services

Support & Upgrades

Hardware

Data Center & Managed

Svs

Database

Middleware

Applications

Software

Operating System

Implementation / Services

Support & Upgrades

Hardware

Data Center & Managed

Svs

Database

Middleware

Applications

Software

Operating System

Traditional On-Premise

Solution Model

All or only some “layers”

One-to-Many or One-to-One

(ISV or SI)

Single or Multiple VendorsSlide8

Decoupling Cloud Solution Components

8

Off-Premise, Hosted

No IT or Data Center Resources Required

Seamless Bug Fixes and Upgrades

Fixed Term (with Termination Fee)

Monthly (or Periodic) Payments

No Ownership / No Capital Expense (Services /

OpEx

Accounting Treatment)

Cloud /

SaaS

Decoupled Illustration

Implementation / Services

Support & Upgrades

Hardware

Data Center & Managed

Svs

Database

Middleware

Applications

Software

Operating System

Implementation / Services

Support & Upgrades

Hardware

Data Center & Managed

Svs

Database

Middleware

Applications

Software

Operating System

All or only some “layers”

One-to-Many or One-to-One

(ISV or SI)

Single or Multiple VendorsSlide9

Contracting / Structuring Options by Component

9

Traditional T&M or Fixed; billed as delivered

Incurred by partner “upfront,” but recovered over solution term

Cloud /

SaaS

Decoupled Acquisition / Contracting Options

Implementation / Services

Support & Upgrades

Hardware

Data Center & Managed

Svs

Database

Middleware

Applications

Software

Operating System

Direct with Oracle

Co-sell, Re-sell, or Pass-thru with Partner

Previous licensing transaction

ULA in midterm

Proprietary, Private Label, Re-sell or Reference (Partner’s Partner)

Third-PartySlide10

Cloud Model Partner Choice

Oracle Public Cloud

SaaS applications (CRM, HCM, ERP… Taleo, Endeca, Eloqua, Responsys)

IaaS, PaaS, XaaS

“Synthetic SaaS” Model

Bring Your Own License (BYOL)

Portable SaaS

“SI’s Proprietary Solution” Model

Business Process Services

(BPS)

10

Public Cloud, Private Cloud, Hybrid and Lessor-Known ModelsSlide11

Cloud

Model Partner Choice

11

Public

Cloud, Private Cloud, Hybrid and Lessor-Known Models

Model Name (licensing model)

Licensee

(on

Oracle Order

)

Price

List / Products

1. Public Cloud Applications/Subscriptions

(SaaS/subscription only, no perpetual rights)

End-customer only

(

direct, resell to be introduced, referral

)

Cloud only

2. “Synthetic

SaaS”

(subscription-structure option with perpetual rights)

End-customer (

direct, resell/co-sell

)

All Oracle Apps/Tech

3. “SI’s

Proprietary Cloud Solution”

(

subscription-structure option with perpetual rights

)

Partner (direct or resell from VAD and/or VAR)

All Oracle Apps/Tech

4. BPS (Subscription only, no perpetual rights)

Partner only

Most all Oracle Apps*

2,3

Operating or expense structure options

3

Can include a

ll software, hardware, partner services

$

$

$Slide12

Tradeoffs & Considerations

12

+

-

“Synthetic

SaaS

Any contract term (12-60

mos

)

Customer (not partner) has all payment risk

Allows for operating or capital expense accounting treatment

Customer builds equity towards perpetual license purchase option

No contractual obligation for partner to provide or define “BPO Services”

Easy to include partner’s implementation or other services

Customer can change hosting vendor or take solution in-house (at end of term)

Vendor contracts / pricing is exposed to customer

Best only for IT-savvy customers

Least repeatable modelSlide13

Tradeoffs & Considerations

13

+

-

SI’s Proprietary Cloud Solution

Partner can offer any pricing / structure / terms

Partner receives end-of-term purchase option (large profit upside with customer)

Flexible terms for transfer of perpetual software license to customer (if desired)

Reallocation of tech hosting licenses to a different customer (but not Apps licenses)

Highly repeatable model

Partner owns all payment risk

Difficult to include implementation servicesSlide14

Tradeoffs & Considerations

14

+

-

BPS (Oracle Business Process Services Resell)

Easy – standard price list

Pretty packaging (opaque pricing)

Operating expense payment match revenue cash flows

Smaller margin

Partner owns payment risk (except in the case of customer bankruptcy)

BPO agreement required; Partner must meet BPO Go-to-Market Program requirements and demonstrate BPO expertise and ability

No ownership option; no equity / credit created towards purchaseSlide15

Next Steps

Schedule a Partner Cloud Models WorkshopWorkshop/deep-dive into model tradeoffs and considerationsCustomize the discussion to your and your customers’ requirements (one-to-one)

It’s your choice

Don’t believe “That product/functionality isn’t offered as a SaaS/Cloud solution”

Use choice and flexibility to create competitive, economic or GTM advantage

Contact info:

lee.bank@oracle.com

305.531.802215Slide16

16Slide17