October 30, 2024 • 21 mins
The cloud isn’t going anywhere. As hyperscalers continue to rise, now is the time to determine where you fit into the cloud landscape and how to best position your services to meet end-user needs.
Shelby Skrhak speaks with Laurent Haccoun, category business manager modern infrastructure solutions, Darryl Oliver, director, global cloud portfolio development and Anastasia Quinn, senior program manager, all of Ingram Micro, about:
To join the discussion, follow us on Twitter @IngramMicroUSA #B2BTechTalk
Listen to this episode and more like it by subscribing to B2B Tech Talk on Spotify, Apple Podcasts or Spreaker.
Shelby Skrhak speaks with Laurent Haccoun, category business manager modern infrastructure solutions, Darryl Oliver, director, global cloud portfolio development and Anastasia Quinn, senior program manager, all of Ingram Micro, about:
- The state of the cloud today
- Navigating cloud commits
- How private offers affect the marketplace
To join the discussion, follow us on Twitter @IngramMicroUSA #B2BTechTalk
Listen to this episode and more like it by subscribing to B2B Tech Talk on Spotify, Apple Podcasts or Spreaker.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:08):
You're listening to B to B Tech Talk with Ingram Micro,
a place to learn about how to grow your business
and stay ahead of technological advances before they've become mainstream.
This episode is sponsored by Ingram Micro's Expantage, the next
Level way to transform your business's potential and reshape how
customers see you through advanced transactional data.
Speaker 2 (00:26):
Let's get into it. Welcome to B to B Tech
Talk with Ingram Micro. I'm your host, Shelby Skirhawk, and
we've got three guests today. First off, we've got Laurent
her Cone.
Speaker 3 (00:38):
Hey, Shelby, Hey there, how are you doing? So?
Speaker 2 (00:40):
You are category Business Manager Modern Infrastructure Solutions. That's a
mouthful for with Ingram Micro.
Speaker 4 (00:47):
It's a mouthful. I'm excited to be here on this podcast.
Thanks for having us.
Speaker 2 (00:50):
Excellent all right, So we also have Darryl Oliver. He
is director of Global Cloud Portfolio Development Ingram Micro. Hey there, Darryl.
Speaker 5 (00:58):
Hi, Shelby, how are you good?
Speaker 6 (00:59):
How are you?
Speaker 2 (01:00):
And then, last but not least, we've got Anastasia Quinn.
She is a senior program director at Ingram Micro and
a hello Anastasia.
Speaker 6 (01:08):
Well, hello there, Shelby, thank you for having us today.
Speaker 2 (01:12):
Of course, thank you. So today we are talking about
hyperscaler marketplaces kind of this the trend of marketplaces, the
ecosystem for partners and Ingram micro. So I guess let's
let's get into it and say, I'll turn it to you, Darryl.
Give us a sense of what's going on in the cloud.
Speaker 5 (01:33):
Yeah, absolutely, so a lot's going on in the cloud.
Our cloud business and cloud overall is growing just as
we would like and just as we expected. If you
take a look at some of the hyperscalers like AWS,
just to give you a picture, there's seventeen and a
half billion in twenty seventeen and in twenty twenty three
(01:56):
ninety one billion, So that gives you a huge kind
of growth thirty one percent gager, you know. And if
you look at Google as an example, you know they
have thirty three billion in twenty twenty three. So you know,
if you look at AWS, you look at Google, you
look at Microsoft, those are pretty much the leaders in
the market share. And Microsoft's kind of climbed a little
(02:18):
bit from fifteen percent market share to nearly twenty five percent.
Google has gone from seven to eleven, but AWS is
still leading in the market share. So that's kind of
where cloud is today. And what we're really seeing is
marketplace has made a shift in the cloud and what
is marketplace there? There are SaaS vendors that are usually
(02:41):
hosted on these hyperscalers, and now those SaaS transactions are
starting to happen on the marketplaces. And so when we
talk about spending commitments, AWS uses a terminology of a
private pricing agreement. There's also an older term still you
out there, which is an EDP, and then Google uses
(03:04):
not a great word but CUD committed use discount, and
then Microsoft uses the MAC which is Microsoft Azure Consumption commitment.
So these commitments have definitely driven more sales to the
hyperscalers and to the marketplaces. You know, industry analysts are
(03:25):
saying that there's three hundred and sixty billion dollars in
committed spends across these three hyper scalers, and it really
as we said, AWS leads with the market share at
one hundred and fifty eight billion, Microsoft one hundred and
twenty nine billion, in Google with seventy two billion. So
(03:46):
there's even industry experts out there that are saying that
by twenty twenty five this can go from three hundred
and sixty billion to five hundred billion. So obviously the
cloud's in a great state right now, creating a great
positive customer experience for customers to be able to not
just buy their compute, their storage, but now on the marketplaces,
(04:08):
being able to swiftly deploy software solutions through the marketplace
and being able to deploy it into their cloud environment,
saving time effort on setup and configuration. That's really what's
driving kind of the hyper scale and this marketplace motion.
Speaker 2 (04:26):
Well, okay, so then the CUD, the commuted, use to scout,
the EDP, the private pricing, all of these, how much
of these commitments can be spent on the marketplace? And
let me ask you that question the wrong.
Speaker 4 (04:41):
Sure so great question, aws, is actually twenty five percent.
So twenty five percent of that commitment can be burnt
down on the marketplace, same as gcpday two is twenty
twenty five percent. As you're interestingly enough, is one hundred
percent of that MAX commitment can be burnt down on
the marketplace. But having said that, shall be not every
no one has these commitments, especially on the MAX. Those
(05:03):
are really for the large enterprise clients. But you know,
I would be remiss if I didn't mention some stats
here Shelby around the marketplace.
Speaker 3 (05:09):
We have some for AWS.
Speaker 4 (05:11):
Get this for AWS two million active subscriptions, over twelve
thousand products, two thousand ISVs, and over three hundred and
twenty five thousand customers. Right, So that's really huge, and
so you ask about those, you know, how much can
be burnt down. So let's take an example, and this
actually we've experienced something very similar to this. Let's say
(05:32):
you have an end user and they make a ten
million dollar commitment. Let's say it's AWS. They can spend
up to two and a half million dollars of their
commitment on marketplace. Now, a lot of times when people
are kind of estimating and they're putting down their cloud commits,
they basically have an estimate of their usage, and that
usage doesn't always come in to the extent that they
thought it might. So, you know, we've been in scenarios where, hey,
(05:54):
a client has a commitment that they need to hit.
So let we get sick with this example of ten
million dollars. Let's say that they're short. They're short by
two million dollars because the usage didn't come in the
storage didn't come into what to the extent that they
thought they might need to use it. Well, what are
they going to do then just walk away from the
two million dollar commitment that they made. No, they're absolutely
going to burn it down with something else. And so
(06:14):
oftentimes what end users will do is just turn to
the marketplace in a hurry and say what can we
buy for this money?
Speaker 3 (06:20):
And it's it's funny, Shelby.
Speaker 4 (06:21):
We were actually in a situation like that ourselves where
we had an end user through one of our partners,
and they were like, listen, we have to burn this
down on marketplace. And so you know, I was very
thrilled the Ingram micro was there to support the partner
and we close that deal and it's worth nearly two
million dollars. But can you imagine that? And so that's
what's going on in this space. There's very large deals
happening very very quickly, and so just you know, thinking
(06:45):
through how big this is. Right, if you think about that,
think about that ten million dollar commitment, right, we're all
in sales.
Speaker 3 (06:52):
Would aws or any of these hyperscalers.
Speaker 4 (06:55):
Would they be happy if that commitment stayed at ten
million dollars the following year in the year afternoon.
Speaker 3 (07:00):
Oh, they're absolutely looking to grow.
Speaker 4 (07:02):
So those those PPAs, as Daryl says, they're going to
keep getting bigger and bigger year after year. And then
if you think about it from the end user's perspective, right,
these it budgets are very much under constraint, and so
of course the thought is, hey, if I make a
bigger commitment, how seeplell might discount be right, And so
then the natural inclination is what else can I put
(07:22):
into this commitment?
Speaker 3 (07:23):
Right?
Speaker 4 (07:23):
And so think about this happening across end users year
after year, and then getting even more end users securing
more of these cloud commitments, and you can absolutely see
where it's headed. Daryl Darrel mentioned the three hundred and
sixty billion dollars that's a committed spend, and it's on
its way to being five hundred billion dollars. We do
have some industry stats that show how much is expected
to transact on the marketplace.
Speaker 3 (07:44):
Get this Shelby.
Speaker 4 (07:45):
In twenty twenty four, it's expected to be thirty billion
dollars on the marketplace, and by twenty twenty eight, eighty
five billion dollars on the marketplace. And by twenty twenty seven,
half of those are expected to be happening with a partner.
So it's a huge shift in our industry. Shell be,
It's a really pivotal moment, and a lot of this
is actually being done by private offers.
Speaker 2 (08:07):
I'm really glad that you broke that down and you
kind of gave more of the narrative of how this happens,
because yeah, I mean, at a certain point when you're
talking about this many billions of dollars, my god, it's
monopoly money. It doesn't seem real, right, But you know,
then when you actually get to it, Okay, you know,
all right, so we're looking at a ten billion dollar
and we're two billion dollars short. What do you do
(08:29):
with that? And I guess you want to make the
best decisions possible instead of just a supermarket. You know,
I'll grab quickly of what's there. So you mentioned the
private offers, Anna, let me turn to you. What is
a private offer?
Speaker 3 (08:44):
Then?
Speaker 6 (08:45):
Private offers a word that Darryl and Lauren and I
must say one hundred times a day. A private offer
in a hyperscalar marketplace is a sales agreement or a
contract that enables customers and the preferred partartners to purchase
products with tailored terms and pricing that's not available on
(09:05):
those probit listings that ISPs have on these Hyperscalar marketplaces.
We've seen recent industry analysts so that private offers comprise
of over seventy percent of a WUS marketplace sales and
fifty percent of Microsoft sales, with private offers through channel
partners growing the fastest. It's actually projected that fifty percent
(09:30):
of Hyperscaler marketplace sales will occur through private offers through
the channel in just a few years by twenty twenty seven.
It's huge. This trend presents a significant opportunity for our
channel partners and resellers to differentiate themselves by offering unique
(09:50):
services and technology solutions.
Speaker 2 (09:54):
So when you say the unique services and technology solutions,
just quickly, what do you mean by that?
Speaker 6 (10:00):
Yeah, So that could be a unique professional service that
they list on a marketplace, or maybe they wrap around
and manage service or one of their professional services that
is from existing listings that vendors have in the marketplace.
Got it?
Speaker 3 (10:15):
Okay? Okay.
Speaker 6 (10:16):
It's all about that customized customer experience and providing a
solution to an end customer that helps with their business goals.
Speaker 2 (10:25):
Yeah, that makes sense. Okay, Well, so then why do
end customers procure through hyperscale marketplaces. Is it strictly just
for the burndown of these committed spends or you know,
are there other advantages here, Laurent Shelby.
Speaker 4 (10:41):
That's a big part of it is these burndown of
these committed spends. But I you know, that is definitely
not the whole story because we have a lot of
end users who have no committed spends and yet they're
still using it. So right to your point, why, Well,
first of all, for those who do have that commitment, right,
they want to be able to continue to burn down
spends and then maintain those lucrative discounts as I mentioned
earlier on on their cloud spending. So that means every
(11:04):
year that going up and they're trying to keep getting
more and more lucrative discounts, and so they're looking to
marketplace say.
Speaker 3 (11:09):
What else can we put into the cloud?
Speaker 4 (11:11):
So that's part of it, but I'd say not just that, right,
It's a very simplified process. It's a simplified provisioning and
purchasing process from the view of the end user, Like,
if you're an end user, think about it, right, We've
seen some scenarios with very complex software products that could
take weeks to deploy. But if you're buying it from AWS,
(11:31):
for example, because it's all because the software has been
pre configured to run on AWS, the deployment costs this
much lower, so it's faster time to value, faster procurement.
The billing is consolidated, so when you get that bill,
you don't have a bill from various different sources. It's
really a consolidated bill, which is a big draw. The
other thing Shelby is like, think about it, if it's
(11:53):
a new vendor for an end user. A lot of
times you've got to go through contracts, you've got to
go through setting up and your vendor in your system.
With this, it's all consolidated because it's all coming from
the same source, so makes things a lot easier. And
then from a reseller perspective, think about if you're trying
to take down a deal. Right in the traditional world,
(12:14):
you've got the vendor rep and you also have the
partner rep trying and take down a deal. But the
beauty with doing something on a Marketplace is now you
can also co sell with the cloud platform reps themselves.
So imagine if you're trying to take down a deal
on Azure Marketplace. Well, and let's say I'm giving you
an example. Let's say it was a Cisco deal, but
you've got a Cisco rep, You've got the partner rep.
But now you also have a Microsoft rep who also
(12:36):
wants to take down the deal.
Speaker 3 (12:37):
So it's very cool.
Speaker 4 (12:38):
This whole notion of co selling transacting on the marketplace
now unlocks all of that. But you know, i'day, at
the end of the day, it's really about simplicity for
the end user, right. We have gotten feedback from some
of our deals where I've seen the end user basically
respond back like one sentence like, hey, this was super simple, thanks,
I mean, what more do you want?
Speaker 3 (12:59):
It's very cool.
Speaker 4 (13:00):
So I would say, not every customer has committed to spend,
but there's a lot of good reasons on why this
is becoming more and more standard in the industry.
Speaker 2 (13:07):
And becoming standards. I mean, this is obviously a change
from how things have been done in the past, this
co selling. So yeah, so I guess I would assume
that's a disruption in the industry. So why should customers
or I guess, why should partners participate in this motion?
And how does ingram micro fit into all of this?
Speaker 6 (13:29):
And by participating in hyperscalar marketplaces, channel partners can meet
their customers where they prefer to purchase, ensuring they remain
relevant in this rapid evolving market. These private offer programs
enable channel partners to tap into brand new revenue streams
and ultimately capitalize on market demand. There's been research that's
(13:52):
shown that private offers increase overall deal sizes by four
to five times for North American resellers and they even
accelerate deal closure rates by fifty percent.
Speaker 2 (14:04):
Wow, that's that's significant.
Speaker 6 (14:06):
That's right. And by embracing these opportunities, channel partners can
enhance their business and better serve their customers and meet
them where they want to purchase.
Speaker 2 (14:15):
Right, meeting them where they want to purchase and making
everything just simpler, putting it all together, that I mean,
that does make perfect sense. So then, Laurent, how does
ingram micro help its partners.
Speaker 4 (14:27):
Yeah, that's a great question. So first of all, let's
level set right. Ingram micro is all about helping its
partners you know, I've spoken a lot to AWS and
I've heard them describe us basically.
Speaker 3 (14:37):
The connective tissue in all of this.
Speaker 4 (14:39):
And you know, if you take a step back, Shelby,
if you think about who is ingram Micro, think about it.
We are the twenty twenty three distributor of the Year
for AWS, both globally and for North America. So we're
very heavily entrenched for AWS specifically. We've got over four
hundred certifications. We've got many ABS competencies like migration consulting,
DevOps consulting, just to name a few. We hold immersion
(15:01):
days regularly to help our partners learn and grow and
to help our partners really increase their partner's status within AWS.
We've got tremendous ABIs marketplace expertise, literally closing hundreds and
hundreds of deals. So I will tell you that we've
been in many situations where partner's like, hey, you know,
walk me through this, how do I do this. We've
literally screen shared with partners how to do these how
(15:22):
to do these deals in real time. So you know,
we've got a lot of experience with the Albis marketplace
excel itself, and we're really there to help our partners,
both new and existing, on how to transact these deals
and how to help them do it at scale.
Speaker 3 (15:35):
You know, I'd be remiss if I didn't say, Shelby.
Speaker 4 (15:38):
On top of the ABS expertise, and you know I'm
only touching on AWS, but equally AZURE, GCP, we've got
a lot of expertise in these hyperscalers. But on top
of that, think about like what we're transacting, right, We're
transacting these vendor deals on these marketplaces. So who better
to work with from a vendor perspective? Right, We've got
all kinds of whether it's like IBM, red Hat, Cisco
(15:58):
just to name a few, but we've got all kinds
of pre sale support, pricing, onboarding, we know all about
the program rules, so we're expert in these vendors. And
then top it off with all these other great things
we could do before our partners, like financing options from
multi year deals. We're able to help our partner scale.
I mean, I will tell you, Shelby, we had one
partner in particular, we literally did hundreds of marketplace deals
(16:21):
in a very short time span.
Speaker 3 (16:23):
I'm talking weeks. So we're in a position to help
those partner scales.
Speaker 4 (16:27):
We can be global CPPO, and what that means is
we can transact on partners who are not for example AWS, like,
some partners don't necessarily want to become ABS partners, we
can help them transact. Nonetheless, others want to learn to
become ABS partners, Hey, we can help you in spades.
And then there's some partners who are frankly outside of jurisdiction,
meaning that they're not in the g they don't meet
(16:49):
the geographic qualifications. Well, we can represent them so they
can still participate in these hyperscaler marketplaces. We can help
partners by working with them on their strategy. And we
even have integrations to our Expantage platforms so that those
partners who don't necessarily want to be as partners, they
can do it all from Exvantage and we can help them.
And then those who are ABS partners, we can help
(17:10):
them as well. All through our platform. They can add
hardware software all from one pane of glass, which is
really really cool.
Speaker 2 (17:16):
I'm just curious the geographic qualifications.
Speaker 4 (17:19):
What do you mean for AWS specifically you need to
have a US Bank account at least at this moment
in time. Okay, so if you are a partner in
another country and you don't have necessarily a US bank account, right,
That for sure happens. You might want to turn to
Ingram micro and then we can transact that deal on
your behalf in that other country. So thanks to our
global footprint, we have the global presence to be able
(17:41):
to help these partners around the world.
Speaker 2 (17:43):
Yeah, that makes sense. Okay, Yeah, Well, so Darryl explain
the process how it works with expandage.
Speaker 3 (17:52):
Yeah.
Speaker 5 (17:52):
Absolutely, As Laurent was saying, when you have a partner
that didn't have your diction, they don't have a US
bank account, We've been able to kind of work with
a partner. They're actually able to go into exvantage. They're
able to kind of initiate a request with us with
our rep or online to advantage. We're able to kind
(18:17):
of work with the partner and the vendor. As Laurent said,
We're able to kind of negotiate that that quote, that opportunity.
We work with the vendor, we work with the partner,
We work with the aw WES rep and co selling
understand kind of what that spend may be if there's
you know, if they're spend available. Sometimes the quotes go
(18:39):
up and through Axvantage, we can kind of bring the
partner in even though they may not be a partner
of aw WES because that US bank account, they can
still be working that opportunity through Axvantage, so they can
talk to the customer negotiate the deal, letting gram Micro
know what that price is going to be. That will
(19:01):
extend that private offer through our Exvantage integration with aws's marketplace.
And that's just one way, right We're also going to
have you know, the listings of the vendors that Laurent
red Hat, Paulo Alto, IBM Info blocks, you know, many
different vendors we're working with. Those will be listings on
(19:23):
Expantage where our partners will be able to log on
and they can initiate a private offer request from there
and we'll be able to go through that whole quoting.
And today, what we hear from some of the vendors
and some of the partners is that it's just kind
of clunky right now and it's not very scalable. How
can Ingram Micro help Because we've been here for our
partners and our vendors and doing, like Lorent said, sometimes
(19:45):
hundreds of deals in a short amount of time and
getting that quoting working through the programs, you know, extending
offers through another platform like aws's marketplace. That's what we're
here for and that's how it will transact to Expantage.
Speaker 2 (19:59):
Okay, excellent. Well, So as we do start to kind
of wrap up our episode, definitely want to have some
contact information, So how can people learn more? I ask
answer any questions they may have about something that we
talked about today.
Speaker 4 (20:14):
Shelby, I'd say, just reach out to your account manageerating
or micro or by all means, you could reach out
to Anna, Daryl or myself, to all our partners listening.
We'll provide the email addresses. But definitely, I think this
is a huge opportunity to capitalize on. Daryl highlighted what
the growth rates have been. I mean, this is just huge,
and I'd love to say sixty They did an interview, Shelby.
(20:35):
I forgot to mention this, sixty five percent of Channel partners,
or I should say of the channel partners interviewed sixty
five percent of the end users for using Hyperscaler Marketplace today.
So the area is just booming. It's just totally booming.
It's a huge, monumental shift in our industry, and what's
great about is we're here to help our partners through it.
So by all means, reach out to the account manager
IT ing or Micro or to Anna Darrel and myself
(20:58):
will be happy to help.
Speaker 2 (20:59):
Well, excellent, Well, I appreciate all of your time and
your insight today. Thank you so much for joining me.
Speaker 5 (21:05):
Thank you Shelby, and thank.
Speaker 2 (21:07):
You listeners for tuning in and subscribing to B to
B Tech Talk with Ingram Micro. If you haven't subscribed,
be sure to do so and don't forget. You can
find all of these episodes on the Expantage Ingram Micro
Expantage platform. Until next time, I'm Shelby Skirhawk.
Speaker 1 (21:22):
You're listening to B to B Tech Talk with Ingram Micro,
a place to learn about how to grow your business
and stay ahead of technological advances before they become mainstream.
This episode is sponsored by Ingram Micro's Expantage, the next
level way to transform your business's potential and reshape how
customers see you through advanced transactional data.
Speaker 2 (21:40):
Let's get into it.
You're listening to B to B Tech Talk with Ingram Micro,
a place to learn about how to grow your business
and stay ahead of technological advances before they've become mainstream.
This episode is sponsored by Ingram Micro's Expantage, the next
Level way to transform your business's potential and reshape how
customers see you through advanced transactional data.
Speaker 2 (00:26):
Let's get into it. Welcome to B to B Tech
Talk with Ingram Micro. I'm your host, Shelby Skirhawk, and
we've got three guests today. First off, we've got Laurent
her Cone.
Speaker 3 (00:38):
Hey, Shelby, Hey there, how are you doing? So?
Speaker 2 (00:40):
You are category Business Manager Modern Infrastructure Solutions. That's a
mouthful for with Ingram Micro.
Speaker 4 (00:47):
It's a mouthful. I'm excited to be here on this podcast.
Thanks for having us.
Speaker 2 (00:50):
Excellent all right, So we also have Darryl Oliver. He
is director of Global Cloud Portfolio Development Ingram Micro. Hey there, Darryl.
Speaker 5 (00:58):
Hi, Shelby, how are you good?
Speaker 6 (00:59):
How are you?
Speaker 2 (01:00):
And then, last but not least, we've got Anastasia Quinn.
She is a senior program director at Ingram Micro and
a hello Anastasia.
Speaker 6 (01:08):
Well, hello there, Shelby, thank you for having us today.
Speaker 2 (01:12):
Of course, thank you. So today we are talking about
hyperscaler marketplaces kind of this the trend of marketplaces, the
ecosystem for partners and Ingram micro. So I guess let's
let's get into it and say, I'll turn it to you, Darryl.
Give us a sense of what's going on in the cloud.
Speaker 5 (01:33):
Yeah, absolutely, so a lot's going on in the cloud.
Our cloud business and cloud overall is growing just as
we would like and just as we expected. If you
take a look at some of the hyperscalers like AWS,
just to give you a picture, there's seventeen and a
half billion in twenty seventeen and in twenty twenty three
(01:56):
ninety one billion, So that gives you a huge kind
of growth thirty one percent gager, you know. And if
you look at Google as an example, you know they
have thirty three billion in twenty twenty three. So you know,
if you look at AWS, you look at Google, you
look at Microsoft, those are pretty much the leaders in
the market share. And Microsoft's kind of climbed a little
(02:18):
bit from fifteen percent market share to nearly twenty five percent.
Google has gone from seven to eleven, but AWS is
still leading in the market share. So that's kind of
where cloud is today. And what we're really seeing is
marketplace has made a shift in the cloud and what
is marketplace there? There are SaaS vendors that are usually
(02:41):
hosted on these hyperscalers, and now those SaaS transactions are
starting to happen on the marketplaces. And so when we
talk about spending commitments, AWS uses a terminology of a
private pricing agreement. There's also an older term still you
out there, which is an EDP, and then Google uses
(03:04):
not a great word but CUD committed use discount, and
then Microsoft uses the MAC which is Microsoft Azure Consumption commitment.
So these commitments have definitely driven more sales to the
hyperscalers and to the marketplaces. You know, industry analysts are
(03:25):
saying that there's three hundred and sixty billion dollars in
committed spends across these three hyper scalers, and it really
as we said, AWS leads with the market share at
one hundred and fifty eight billion, Microsoft one hundred and
twenty nine billion, in Google with seventy two billion. So
(03:46):
there's even industry experts out there that are saying that
by twenty twenty five this can go from three hundred
and sixty billion to five hundred billion. So obviously the
cloud's in a great state right now, creating a great
positive customer experience for customers to be able to not
just buy their compute, their storage, but now on the marketplaces,
(04:08):
being able to swiftly deploy software solutions through the marketplace
and being able to deploy it into their cloud environment,
saving time effort on setup and configuration. That's really what's
driving kind of the hyper scale and this marketplace motion.
Speaker 2 (04:26):
Well, okay, so then the CUD, the commuted, use to scout,
the EDP, the private pricing, all of these, how much
of these commitments can be spent on the marketplace? And
let me ask you that question the wrong.
Speaker 4 (04:41):
Sure so great question, aws, is actually twenty five percent.
So twenty five percent of that commitment can be burnt
down on the marketplace, same as gcpday two is twenty
twenty five percent. As you're interestingly enough, is one hundred
percent of that MAX commitment can be burnt down on
the marketplace. But having said that, shall be not every
no one has these commitments, especially on the MAX. Those
(05:03):
are really for the large enterprise clients. But you know,
I would be remiss if I didn't mention some stats
here Shelby around the marketplace.
Speaker 3 (05:09):
We have some for AWS.
Speaker 4 (05:11):
Get this for AWS two million active subscriptions, over twelve
thousand products, two thousand ISVs, and over three hundred and
twenty five thousand customers. Right, So that's really huge, and
so you ask about those, you know, how much can
be burnt down. So let's take an example, and this
actually we've experienced something very similar to this. Let's say
(05:32):
you have an end user and they make a ten
million dollar commitment. Let's say it's AWS. They can spend
up to two and a half million dollars of their
commitment on marketplace. Now, a lot of times when people
are kind of estimating and they're putting down their cloud commits,
they basically have an estimate of their usage, and that
usage doesn't always come in to the extent that they
thought it might. So, you know, we've been in scenarios where, hey,
(05:54):
a client has a commitment that they need to hit.
So let we get sick with this example of ten
million dollars. Let's say that they're short. They're short by
two million dollars because the usage didn't come in the
storage didn't come into what to the extent that they
thought they might need to use it. Well, what are
they going to do then just walk away from the
two million dollar commitment that they made. No, they're absolutely
going to burn it down with something else. And so
(06:14):
oftentimes what end users will do is just turn to
the marketplace in a hurry and say what can we
buy for this money?
Speaker 3 (06:20):
And it's it's funny, Shelby.
Speaker 4 (06:21):
We were actually in a situation like that ourselves where
we had an end user through one of our partners,
and they were like, listen, we have to burn this
down on marketplace. And so you know, I was very
thrilled the Ingram micro was there to support the partner
and we close that deal and it's worth nearly two
million dollars. But can you imagine that? And so that's
what's going on in this space. There's very large deals
happening very very quickly, and so just you know, thinking
(06:45):
through how big this is. Right, if you think about that,
think about that ten million dollar commitment, right, we're all
in sales.
Speaker 3 (06:52):
Would aws or any of these hyperscalers.
Speaker 4 (06:55):
Would they be happy if that commitment stayed at ten
million dollars the following year in the year afternoon.
Speaker 3 (07:00):
Oh, they're absolutely looking to grow.
Speaker 4 (07:02):
So those those PPAs, as Daryl says, they're going to
keep getting bigger and bigger year after year. And then
if you think about it from the end user's perspective, right,
these it budgets are very much under constraint, and so
of course the thought is, hey, if I make a
bigger commitment, how seeplell might discount be right, And so
then the natural inclination is what else can I put
(07:22):
into this commitment?
Speaker 3 (07:23):
Right?
Speaker 4 (07:23):
And so think about this happening across end users year
after year, and then getting even more end users securing
more of these cloud commitments, and you can absolutely see
where it's headed. Daryl Darrel mentioned the three hundred and
sixty billion dollars that's a committed spend, and it's on
its way to being five hundred billion dollars. We do
have some industry stats that show how much is expected
to transact on the marketplace.
Speaker 3 (07:44):
Get this Shelby.
Speaker 4 (07:45):
In twenty twenty four, it's expected to be thirty billion
dollars on the marketplace, and by twenty twenty eight, eighty
five billion dollars on the marketplace. And by twenty twenty seven,
half of those are expected to be happening with a partner.
So it's a huge shift in our industry. Shell be,
It's a really pivotal moment, and a lot of this
is actually being done by private offers.
Speaker 2 (08:07):
I'm really glad that you broke that down and you
kind of gave more of the narrative of how this happens,
because yeah, I mean, at a certain point when you're
talking about this many billions of dollars, my god, it's
monopoly money. It doesn't seem real, right, But you know,
then when you actually get to it, Okay, you know,
all right, so we're looking at a ten billion dollar
and we're two billion dollars short. What do you do
(08:29):
with that? And I guess you want to make the
best decisions possible instead of just a supermarket. You know,
I'll grab quickly of what's there. So you mentioned the
private offers, Anna, let me turn to you. What is
a private offer?
Speaker 3 (08:44):
Then?
Speaker 6 (08:45):
Private offers a word that Darryl and Lauren and I
must say one hundred times a day. A private offer
in a hyperscalar marketplace is a sales agreement or a
contract that enables customers and the preferred partartners to purchase
products with tailored terms and pricing that's not available on
(09:05):
those probit listings that ISPs have on these Hyperscalar marketplaces.
We've seen recent industry analysts so that private offers comprise
of over seventy percent of a WUS marketplace sales and
fifty percent of Microsoft sales, with private offers through channel
partners growing the fastest. It's actually projected that fifty percent
(09:30):
of Hyperscaler marketplace sales will occur through private offers through
the channel in just a few years by twenty twenty seven.
It's huge. This trend presents a significant opportunity for our
channel partners and resellers to differentiate themselves by offering unique
(09:50):
services and technology solutions.
Speaker 2 (09:54):
So when you say the unique services and technology solutions,
just quickly, what do you mean by that?
Speaker 6 (10:00):
Yeah, So that could be a unique professional service that
they list on a marketplace, or maybe they wrap around
and manage service or one of their professional services that
is from existing listings that vendors have in the marketplace.
Got it?
Speaker 3 (10:15):
Okay? Okay.
Speaker 6 (10:16):
It's all about that customized customer experience and providing a
solution to an end customer that helps with their business goals.
Speaker 2 (10:25):
Yeah, that makes sense. Okay, Well, so then why do
end customers procure through hyperscale marketplaces. Is it strictly just
for the burndown of these committed spends or you know,
are there other advantages here, Laurent Shelby.
Speaker 4 (10:41):
That's a big part of it is these burndown of
these committed spends. But I you know, that is definitely
not the whole story because we have a lot of
end users who have no committed spends and yet they're
still using it. So right to your point, why, Well,
first of all, for those who do have that commitment, right,
they want to be able to continue to burn down
spends and then maintain those lucrative discounts as I mentioned
earlier on on their cloud spending. So that means every
(11:04):
year that going up and they're trying to keep getting
more and more lucrative discounts, and so they're looking to
marketplace say.
Speaker 3 (11:09):
What else can we put into the cloud?
Speaker 4 (11:11):
So that's part of it, but I'd say not just that, right,
It's a very simplified process. It's a simplified provisioning and
purchasing process from the view of the end user, Like,
if you're an end user, think about it, right, We've
seen some scenarios with very complex software products that could
take weeks to deploy. But if you're buying it from AWS,
(11:31):
for example, because it's all because the software has been
pre configured to run on AWS, the deployment costs this
much lower, so it's faster time to value, faster procurement.
The billing is consolidated, so when you get that bill,
you don't have a bill from various different sources. It's
really a consolidated bill, which is a big draw. The
other thing Shelby is like, think about it, if it's
(11:53):
a new vendor for an end user. A lot of
times you've got to go through contracts, you've got to
go through setting up and your vendor in your system.
With this, it's all consolidated because it's all coming from
the same source, so makes things a lot easier. And
then from a reseller perspective, think about if you're trying
to take down a deal. Right in the traditional world,
(12:14):
you've got the vendor rep and you also have the
partner rep trying and take down a deal. But the
beauty with doing something on a Marketplace is now you
can also co sell with the cloud platform reps themselves.
So imagine if you're trying to take down a deal
on Azure Marketplace. Well, and let's say I'm giving you
an example. Let's say it was a Cisco deal, but
you've got a Cisco rep, You've got the partner rep.
But now you also have a Microsoft rep who also
(12:36):
wants to take down the deal.
Speaker 3 (12:37):
So it's very cool.
Speaker 4 (12:38):
This whole notion of co selling transacting on the marketplace
now unlocks all of that. But you know, i'day, at
the end of the day, it's really about simplicity for
the end user, right. We have gotten feedback from some
of our deals where I've seen the end user basically
respond back like one sentence like, hey, this was super simple, thanks,
I mean, what more do you want?
Speaker 3 (12:59):
It's very cool.
Speaker 4 (13:00):
So I would say, not every customer has committed to spend,
but there's a lot of good reasons on why this
is becoming more and more standard in the industry.
Speaker 2 (13:07):
And becoming standards. I mean, this is obviously a change
from how things have been done in the past, this
co selling. So yeah, so I guess I would assume
that's a disruption in the industry. So why should customers
or I guess, why should partners participate in this motion?
And how does ingram micro fit into all of this?
Speaker 6 (13:29):
And by participating in hyperscalar marketplaces, channel partners can meet
their customers where they prefer to purchase, ensuring they remain
relevant in this rapid evolving market. These private offer programs
enable channel partners to tap into brand new revenue streams
and ultimately capitalize on market demand. There's been research that's
(13:52):
shown that private offers increase overall deal sizes by four
to five times for North American resellers and they even
accelerate deal closure rates by fifty percent.
Speaker 2 (14:04):
Wow, that's that's significant.
Speaker 6 (14:06):
That's right. And by embracing these opportunities, channel partners can
enhance their business and better serve their customers and meet
them where they want to purchase.
Speaker 2 (14:15):
Right, meeting them where they want to purchase and making
everything just simpler, putting it all together, that I mean,
that does make perfect sense. So then, Laurent, how does
ingram micro help its partners.
Speaker 4 (14:27):
Yeah, that's a great question. So first of all, let's
level set right. Ingram micro is all about helping its
partners you know, I've spoken a lot to AWS and
I've heard them describe us basically.
Speaker 3 (14:37):
The connective tissue in all of this.
Speaker 4 (14:39):
And you know, if you take a step back, Shelby,
if you think about who is ingram Micro, think about it.
We are the twenty twenty three distributor of the Year
for AWS, both globally and for North America. So we're
very heavily entrenched for AWS specifically. We've got over four
hundred certifications. We've got many ABS competencies like migration consulting,
DevOps consulting, just to name a few. We hold immersion
(15:01):
days regularly to help our partners learn and grow and
to help our partners really increase their partner's status within AWS.
We've got tremendous ABIs marketplace expertise, literally closing hundreds and
hundreds of deals. So I will tell you that we've
been in many situations where partner's like, hey, you know,
walk me through this, how do I do this. We've
literally screen shared with partners how to do these how
(15:22):
to do these deals in real time. So you know,
we've got a lot of experience with the Albis marketplace
excel itself, and we're really there to help our partners,
both new and existing, on how to transact these deals
and how to help them do it at scale.
Speaker 3 (15:35):
You know, I'd be remiss if I didn't say, Shelby.
Speaker 4 (15:38):
On top of the ABS expertise, and you know I'm
only touching on AWS, but equally AZURE, GCP, we've got
a lot of expertise in these hyperscalers. But on top
of that, think about like what we're transacting, right, We're
transacting these vendor deals on these marketplaces. So who better
to work with from a vendor perspective? Right, We've got
all kinds of whether it's like IBM, red Hat, Cisco
(15:58):
just to name a few, but we've got all kinds
of pre sale support, pricing, onboarding, we know all about
the program rules, so we're expert in these vendors. And
then top it off with all these other great things
we could do before our partners, like financing options from
multi year deals. We're able to help our partner scale.
I mean, I will tell you, Shelby, we had one
partner in particular, we literally did hundreds of marketplace deals
(16:21):
in a very short time span.
Speaker 3 (16:23):
I'm talking weeks. So we're in a position to help
those partner scales.
Speaker 4 (16:27):
We can be global CPPO, and what that means is
we can transact on partners who are not for example AWS, like,
some partners don't necessarily want to become ABS partners, we
can help them transact. Nonetheless, others want to learn to
become ABS partners, Hey, we can help you in spades.
And then there's some partners who are frankly outside of jurisdiction,
meaning that they're not in the g they don't meet
(16:49):
the geographic qualifications. Well, we can represent them so they
can still participate in these hyperscaler marketplaces. We can help
partners by working with them on their strategy. And we
even have integrations to our Expantage platforms so that those
partners who don't necessarily want to be as partners, they
can do it all from Exvantage and we can help them.
And then those who are ABS partners, we can help
(17:10):
them as well. All through our platform. They can add
hardware software all from one pane of glass, which is
really really cool.
Speaker 2 (17:16):
I'm just curious the geographic qualifications.
Speaker 4 (17:19):
What do you mean for AWS specifically you need to
have a US Bank account at least at this moment
in time. Okay, so if you are a partner in
another country and you don't have necessarily a US bank account, right,
That for sure happens. You might want to turn to
Ingram micro and then we can transact that deal on
your behalf in that other country. So thanks to our
global footprint, we have the global presence to be able
(17:41):
to help these partners around the world.
Speaker 2 (17:43):
Yeah, that makes sense. Okay, Yeah, Well, so Darryl explain
the process how it works with expandage.
Speaker 3 (17:52):
Yeah.
Speaker 5 (17:52):
Absolutely, As Laurent was saying, when you have a partner
that didn't have your diction, they don't have a US
bank account, We've been able to kind of work with
a partner. They're actually able to go into exvantage. They're
able to kind of initiate a request with us with
our rep or online to advantage. We're able to kind
(18:17):
of work with the partner and the vendor. As Laurent said,
We're able to kind of negotiate that that quote, that opportunity.
We work with the vendor, we work with the partner,
We work with the aw WES rep and co selling
understand kind of what that spend may be if there's
you know, if they're spend available. Sometimes the quotes go
(18:39):
up and through Axvantage, we can kind of bring the
partner in even though they may not be a partner
of aw WES because that US bank account, they can
still be working that opportunity through Axvantage, so they can
talk to the customer negotiate the deal, letting gram Micro
know what that price is going to be. That will
(19:01):
extend that private offer through our Exvantage integration with aws's marketplace.
And that's just one way, right We're also going to
have you know, the listings of the vendors that Laurent
red Hat, Paulo Alto, IBM Info blocks, you know, many
different vendors we're working with. Those will be listings on
(19:23):
Expantage where our partners will be able to log on
and they can initiate a private offer request from there
and we'll be able to go through that whole quoting.
And today, what we hear from some of the vendors
and some of the partners is that it's just kind
of clunky right now and it's not very scalable. How
can Ingram Micro help Because we've been here for our
partners and our vendors and doing, like Lorent said, sometimes
(19:45):
hundreds of deals in a short amount of time and
getting that quoting working through the programs, you know, extending
offers through another platform like aws's marketplace. That's what we're
here for and that's how it will transact to Expantage.
Speaker 2 (19:59):
Okay, excellent. Well, So as we do start to kind
of wrap up our episode, definitely want to have some
contact information, So how can people learn more? I ask
answer any questions they may have about something that we
talked about today.
Speaker 4 (20:14):
Shelby, I'd say, just reach out to your account manageerating
or micro or by all means, you could reach out
to Anna, Daryl or myself, to all our partners listening.
We'll provide the email addresses. But definitely, I think this
is a huge opportunity to capitalize on. Daryl highlighted what
the growth rates have been. I mean, this is just huge,
and I'd love to say sixty They did an interview, Shelby.
(20:35):
I forgot to mention this, sixty five percent of Channel partners,
or I should say of the channel partners interviewed sixty
five percent of the end users for using Hyperscaler Marketplace today.
So the area is just booming. It's just totally booming.
It's a huge, monumental shift in our industry, and what's
great about is we're here to help our partners through it.
So by all means, reach out to the account manager
IT ing or Micro or to Anna Darrel and myself
(20:58):
will be happy to help.
Speaker 2 (20:59):
Well, excellent, Well, I appreciate all of your time and
your insight today. Thank you so much for joining me.
Speaker 5 (21:05):
Thank you Shelby, and thank.
Speaker 2 (21:07):
You listeners for tuning in and subscribing to B to
B Tech Talk with Ingram Micro. If you haven't subscribed,
be sure to do so and don't forget. You can
find all of these episodes on the Expantage Ingram Micro
Expantage platform. Until next time, I'm Shelby Skirhawk.
Speaker 1 (21:22):
You're listening to B to B Tech Talk with Ingram Micro,
a place to learn about how to grow your business
and stay ahead of technological advances before they become mainstream.
This episode is sponsored by Ingram Micro's Expantage, the next
level way to transform your business's potential and reshape how
customers see you through advanced transactional data.
Speaker 2 (21:40):
Let's get into it.
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