Building a more complete Cloud offering for next-generation enterprise

Demand for the Always-On business presents further opportunity for resellers

The Cloud market has seen extraordinary development in the last five years with more and more organisations moving their infrastructure to the Cloud.

Analyst firm, IDC, predicts the worldwide market for hosted private Cloud, which amounted to $US8.9 billion in 2014 and will grow at a CAGR of 35.4 per cent to reach $US40.6 billion in 2019. The organisation also predicts that service providers will account for over 43 per cent of total server shipments by 2017.

This represents a monumental, industry-wide shift from buying and selling servers, to buying and selling services. Now is the perfect opportunity to create Backup-as-a-Service or Disaster recovery-as-a-service revenue streams, built upon a tested and proven availability platform.

One of the key markets that has arisen and is predicted to grow as a result of this growth is business continuity. The field encompasses disaster recovery, backup and continuity. The question is, how partners can capitalise on this movement without compromising existing business opportunities. Simply put, where is the value-add?

What the market wants

In July 2015, Veeam conducted a survey of 156 service providers and resellers and the results indicate that partners around the world consider DRaaS to be strategic to their business.

Two-thirds (66 per cent) of respondents said that DRaaS is important or very important to their current business. That number grew to 75 per cent when asked how important DRaaS is to their growth over the next 12–18 months.

Interestingly, more than 56 per cent of respondents said that over half of their current customers are interested in DRaaS.That number jumped to 71 per cent when respondents were asked to consider both current and potential customers in their target market.

Drivers for adoption

Barriers to adoption

Download “The DRaaS Market Opportunity” full report here

The bigger question of general availability

In late 2015, Veeam commissioned independent technology market research specialist, Vanson Bourne, to undertake a global research project to determine the level of availability in the modern business.

84 per cent of IT decision makers (ITDMs) globally admitted their organisation has an availability gap

In excess of 1,000 senior ITDMs from enterprise-sized organisations were interviewed from countries including Australia, New Zealand, other parts of APAC, the US and Europe.

The research discovered that 84 per cent of IT decision makers (ITDMs) globally admitted their organisation has an availability gap. This figure is two per cent higher than it was in 2014.

This costs businesses up to $US16 million a year in lost revenue and productivity, in addition to the negative impact on customer confidence and brand integrity (according to 68 percent and 62 percent of respondents respectively).

To combat this, the study found most organisations were investing in datacentres, with two-thirds (68 per cent) doing so specifically in order to enable 24/7 always-on operations. While enterprises appreciate the challenges facing them and many are taking measures, some seem still to be falling short.

Staggering shortcomings

What is alarming is that despite obvious investment, the average number of unplanned downtime events reported in A/NZ has increased 30 per cent from 2014 to 2015.This shows that while there is definite concern out there, organisations across the region are struggling to keep up with the 24/7 demands of customers.

Globally, the average length of each downtime event has also increased from less than one and a half hours to almost two hours for mission-critical applications.The result of these increases is that the average annual cost of downtime to a global organisation can be up to $US16 million. That is $US6 million higher than recorded in the 2014 wave of this study.

In addition, application downtime can have an impact that goes beyond financial loss: the majority report that confidence in the organisation (68 per cent) and brand (62 per cent) can also suffer.

What this study clearly illustrates is that despite senior ITDMs understanding that availability is of paramount importance, and that investments are being made, the reality is that service levels are falling short.

Users are demanding a crisp, seamless experience, but instead have to deal with services that are below par and this is costing enterprises millions of dollars in lost revenue, productivity and brand reputation.

Partner Opportunity – transitioning from a reseller to a true service provider

Strategic planning for business continuity is a critical area for partners to address as they help business decision makers (BDMs) find out what their end-users need from an always-on enterprise.

The role of the partner should be to communicate these needs to the IT department, but, it is also vital to encourage the rest of the organisation to invest for a continuous plan where appropriate.

Too often, organisations are hiding their heads in the clouds when it comes to the risk of unplanned downtime, when they should be putting their disaster recovery solution there instead. By aligning DR and availability strategies, IT departments can truly leverage the benefits of hybrid cloud architecture without sacrificing that critical direct line of communication and personal relationship with the DRaaS provider

Peter Bender, Head of Channel and Alliances, ANZ at Veeam.

In doing this, partners move from the realm of reseller, through consultant and into the service provider space. Here they are able to truly differentiate themselves from competitors.

This cannot be achieved overnight and ITDMs cannot do it alone. Partners need to support their customers in improving availability through considered and effective deployments that complement and enhance the existing infrastructure.

Find out more about Veeam's partner program

Find out more

Helping partners scale and add value

To help partners take their customers through this journey, Veeam has developed a world-class partner program for service providers. Companies looking to use Veeam as part of their hosting environment or provide Veeam-powered backup and disaster recovery (BDR) services need only to join the Veeam Cloud Service Provider Program (VCSP) to get started.

While the Veeam end user license agreement (EULA) limits usage of the company’s software to your own data, a VCSP membership and licenses remove this restriction. This means partners can use Veeam products (including the vendor’s free offerings) to deliver services to customers.

These expanded usage rights allow partners to leverage more of the Veeam product suite to deliver outcomes to customers.

Partners are already taking advantage of the program by offering services through expanded usage rights in areas such as Hosted Virtual Machines, offering customers infrastructure-as-a-service (IaaS) and platform-as-a-service (PaaS) solutions.

Partners are also having success by offering hosted applications protected with Veeam that include software-as-a-service (SaaS) and offerings from application service providers (ASPs).

Many Veeam partners have also been having success offering other essential business services through virtual machines (VMs) protected by Veeam such as taxation services, e-commerce and document delivery to name a few.

Tapping in to the right markets

By becoming a Veeam partner, companies get access to the company’s Cloud Connect service that gives them access to a market of over 200,000 customers currently using Veeam backup hosted repositories.

By joining the Veeam Cloud Connect ecosystem, partners will be able to attract new customers and build recurring revenue streams.

Because Veeam is 100 per cent channel focussed, it does not offer its own services directly to customers so partners will never face competition from Veeam. Even if a customer wants to buy direct from Veeam, they cannot. Veeam funnels every lead through its VCSP program and in doing so, opens up new sales opportunities for partners every day.

By becoming a Veeam partner, companies get access to the company’s Cloud Connect service that gives them access to a market of over 200,000 customers currently using Veeam backup hosted repositories.

Partners can manage multiple Cloud repositories for customers from a single interface, making it simpler and more cost-effective to manage a client’s infrastructure.

Veeam Cloud gateways eliminate the need for a VPN by virtualising all traffic to a single port and using SSL to securely transmit data from the customer’s infrastructure to the service provider’s.

Centralised resource management allows for storage allocation to each customer along with out-of-the-box reports and alerts to track storage consumption, manage expiration dates and send automatic renewal reminders.

All data is protected in-flight with SSL, but for customers that need an additional level of security, Veeam can encrypt data at source before it leaves the perimeter.

Providing flexibility

The VCSP program also gives partners much needed flexibility. The program is free to join and comes with no obligations to buy at any time. Tiering is based on the number of VMs protected or managed. Even if a partner decides not to offer Veeam immediately, they can still get access to the free tools the program provides.

Partners can deploy Veeam backup infrastructure wherever they need to, including on the customer site. They simply need to license each VM to protect and deploy components as needed without having to pay additional fees.

Veeam offers both monthly rental and perpetual VCSP licenses so partners can choose the licensing option that best fits their business model. Partners have the ability to use rental licenses for the variable part of their business to provide flexibility and perpetual licenses for long-term contracts that give stability to the business.

The program and product suite are designed in such a way so that partners can offer Availability services to any customer in their target market, regardless of the storage, applications or operating systems they use. Veeam supports both VMware vSphere and Microsoft Hyper-V which means partners can expand their addressable market even further.

Along with this, the program provides partners free 24x7 support; free not-for-resale (NFR) license keys for development, testing, demonstration and training; and access to the VCSP forum where partners can ask questions and exchange ideas with other partners around the world and Veeam.

Veeam offerings for partner transformation

Veeam is committed to helping its partners grow their business in a variety of different ways. Whether it is augmenting an existing offering, on-boarding new capabilities, or transitioning your business from a reseller to service provider model, Veeam has the tools to get you there.

Veeam Cloud Connect

The underlying technology of the Veeam partner BaaS and DRaaS offering is the Veeam Cloud Connect backup and replication included within Veeam Availability Suite, Veeam Backup & Replication, and Veeam Backup Essentials for all end users at no additional charge and with no additional licensing required.

Combining the features of Cloud Connect with other Veeam offerings will help partners develop a mature and attractive offering to take to market

Veeam Cloud Connect is a well adopted and innovative multi-tenant Cloud platform designed to support, enable and promote service provider adoption. The company has gone to great lengths to make it easy for service providers in the Veeam Cloud & Service Provider (VCSP) program to offer hosted backup repositories, managed backup services and Disaster Recovery as a Service (DRaaS) with Veeam.

Combining the features of Cloud Connect with other Veeam offerings will help partners develop a mature and attractive offering to take to market.

This represents a huge opportunity for service providers managing an organisation’s infrastructure. Veeam Cloud Connect makes it easy for partners to acquire new customers, build recurring revenue and dive into the rapidly-growing Cloud services and DRaaS market.

To get access to these features VCSP partners will also need a Cloud Connect licence to access all these features and get access to Veeam’s vast customer base. These customers are also using this as part of their existing offering. By adding it to theirs, partners can offer value added services to a base already committed to Veeam technology.

Learn more about Veeam Cloud Connect here.

Veeam Managed backup Portal

Without an appropriate tool to manage infrastructure, partners will struggle to handle the volume of work and grow their business. The Veeam Managed backup Portal is a service provider business-in-a-box.  The solution streamlines delivery, invoicing and reporting of Veeam-powered managed backup services for service providers, including resellers looking to provide a managed backup solution, all at no extra cost.

Veeam also helps partners manage their own infrastructure whether they build it or leverage a public Cloud like Microsoft Azure. For this they need a few necessary tools to get started like a billing process, remote backup monitoring and management capabilities, and a tracking, invoicing and reporting engine to stay on top of their business and customers. This all comes free to members of the VCSP Program.

The Veeam Managed Backup Portal for Service Providers is tightly integrated with Veeam Cloud Connect Backup for Service Providers. This ensures partners can remotely monitor and manage their customer’s backup infrastructure, but can also send backups to their hosted backup repository.

To ensure partners constant availability, the Veeam Managed Backup Portal utilises the Cloud Connect gateways for the single port SSL/TLS connection.

However partners are not required to purchase Veeam Cloud Connect in order to utilise Veeam Managed Backup Portal. This is just another example of the way Veeam is adding value for its partners.

Learn more about Veeam Managed backup Portal here

White Labelling

Many partners looking to start a Cloud services business don’t have the capital or infrastructure to do so. This can be a big hurdle and discourage many from entering the market.

Veeam can assist this type of partner by connecting resellers with Cloud providers and Veeam’s network of VCSP partners who can offer the ability to white label or deploy a Veeam Cloud Connect service utilising their Cloud and hosting expertise.

Companies ready to equip Veeam partners in this space include the likes of Zetta, Probax, Cloud Plus and Hosted Network.

For existing partners, this feature offers access to new customers or revenue through the vast network of Veeam partners looking to work together offering white labelled services.

Benefits of the Veeam Channel program

Veeam operates on a 100% channel-based business model and recognises that the success of the VCSP program contributes to our mission. Veeam’s VCSP program will create a more empowered and enabled channel community, to help their customers implement a workable DRaaS solutions while reaping the revenue rewards themselves.

Why join the VCSP program?

Expand your offerings Sell Veeam perpetual licenses following the reseller business model, offer Veeam-powered services following the VCSP program business model, or provide a mix of both. As a VCSP partner, you can take advantage of the awareness – and demand – for Veeam solutions by using Veeam in your hosting environment or by offering Veeam-powered backup and disaster recovery services.

Build recurring revenue Adding Veeam-powered services and/or leveraging Veeam to protect hosted VMs will quickly grow your monthly profits. You can make sales via a recurring-revenue model and use this to handle the monthly billing to your customers. Reach out to your existing Veeam customer base and offer them Veeam-powered services – it’s an easy way to turn one-time revenue into a continuous flow of income.

Deployment flexibility VCSP partners have the ability to deploy Veeam solutions on-site at the customer location or within your hosted environment.

We grow together: As you increase your commitments to the partnership, we do as well – we begin investing in your organisation so we can grow together. The more VMs you protect or manage with Veeam, the more you’ll move up in the VCSP program. With each higher tier, you’ll receive additional benefits that are intended to help you grow your services business.

Interested in joining the VCSP program?

Apply now

Sales and marketing support

As a VCSP partner, you can take advantage of the awareness and demand for Veeam solutions plus get access to a wealth of marketing benefits:

  • Free listings in the VCSP Directory to promote your hosting, cloud backup, and BDR service offerings (including BaaS and DRaaS) on Veeam’s website.
  • Free listings in the Service Provider Lookup so customers can have visibility of your Veeam Cloud Connect offering directly from their Veeam backup console.
  • Free marketing resources: Take advantage of marketing templates, a complete email marketing tool, and more – all available for free on the Veeam ProPartner portal!
  • Market development funds: Have an idea for promoting your Veeam-powered offerings? Submit a proposal and you could receive MDF to help fund it. You could even get support for joint marketing activities with Veeam.

Training and accreditation

Getting skilled up quickly can be a big challenge for partners when considering bringing on a new product. To assist in this process, Veeam has set up its online university so staff can gain new skills and certifications at a time that is most suitable for them. The company also offers live and recorded webinars for partners to gain insights from on-site Veeam experts. As a Veeam partner, you are never left out in the cold when trying to solve a customer problem.

Greater rewards for committed partners

The Veeam ProPartner Program rewards those that invest in Veeam with three levels of partnership for each stage of a partner’s growth and margins are protected and improved upon through the incentives program. Access to more opportunities are available through a listing on the VCSP Directory section of veeam.com