Building a Consumption Story for an Effective Co-Sell Strategy
In today's competitive cloud landscape, driving indirect revenue through formal business relationships is crucial. In this webinar, we explore how to enhance your consumption story and co-sell effectively with Cloud Provider Account Executives.
(upbeat music)
- Without further ado, let's get to know our panelists today.
We're gonna start with you, Dre,
wanna jump in and introduce yourself to the audience.
- Absolutely.
Hey, hello everyone.
My name is Dre Smith here at Nuon.
Very excited to talk to you about building
a consumption story for effective co-selling.
I've been selling for the last half of my co-selling,
the last half of my career to ISVs as a Salesforce,
and I'm a CEO of Nuon.
I'm a CEO of Nuon.
I'm a CEO of Nuon.
I'm a CEO of Nuon.
I'm a CEO of Nuon.
I'm a CEO of Nuon.
I'm a CEO of Nuon.
I'm a CEO of Nuon.
I'm a CEO of Nuon.
I'm a CEO of Nuon.
I'm a CEO of Nuon.
I'm a CEO of Nuon.
I'm a CEO of Nuon.
I'm a CEO of Nuon.
I'm a CEO of Nuon.
I'm a CEO of Nuon.
I'm a CEO of Nuon.
I'm a CEO of Nuon.
I'm a CEO of Nuon.
I'm a CEO of Nuon.
I'm a CEO of Nuon.
I'm a co-founder and CEO here at Nuon.
Been building cloud products for the last 10 years.
And the past two years we've been building Nuon,
which is enabling a new deployment pattern.
There's a lot of synergy with GoToMarket
and the cloud marketplaces and some of the things
that we're seeing.
So excited to share today and hopefully show everyone
some new capabilities.
- Awesome.
Glad you're here, John.
Aaron, you wanna jump in?
- Absolutely.
Hi everyone.
I'm Aaron Figer.
I'm the VP of CoSEL here at Taco.
And I joined the Taco Group about 18 months ago
through the acquisition of my company Core Consulting,
where we spent the last 10 years
helping software companies build
and operationalize CoSEL.
- Love it.
All right, Patrick.
Last but not least, our cloud GTM wizard over here.
- I feel like I need a point you had in the wand after that.
Everybody, Patrick Riley, Cloud GoToMarket Insider,
or excuse me, Cloud GoToMarket principal here at Taco.
And I've been here for about two and a half years.
And I get to spend every day with a lot of our ISVs
learning the ins and outs of their business,
the challenges that they have.
And I'm super excited about this webinar today
because a lot of the challenges that have come up are
how do we tell a better CoSEL story?
And I know that's something that's Aaron and I as a baby.
So we're excited to talk to you a little bit more about that.
And I'm glad to be here with you all.
- Awesome.
- Love it.
Well, let's do a quick agenda deep dive
and then we're gonna pass it over to Aaron.
So first we're gonna jump into why having a consumption
story matters in a big picture with your CoSEL strategy.
Then a few goals and challenges for the partnership leaders
are facing today.
So new challenges that are entering the cloud market places.
And then last but not least, we're gonna dive into
what is BYOC and how it can strengthen your consumption
story and then lots of all how you can get started
with it today.
So without further ado, let's pass it over to Aaron Feiger.
Can you kick things off by sharing why having
a consumption story matters?
- Absolutely.
I think it's really important anytime that you start
to think about partnering with the clouds,
really understanding your consumption story first
so that you understand how you get on their radar
and really drive impact into the things that matter
for that cloud provider.
So we built this total impact formula to help explain it
to ISVs.
This is something we do inside of a workshop.
So I thought it'd be great to start off our conversation
today with really understanding the consumption story
and why it matters.
The left hand side you see here the cloud providers,
they have different ways for a customer to start to buy
their services.
So you can do that through a committed contract, an EDP
or a Mac, you make this commitment.
So that's one way.
If you are a CSP, you can resell the cloud services.
You can buy the cloud services through the marketplace.
And if you are a BYOC, which we're talking about today,
bring your own cloud, you wanna make sure that as your
customers are deploying your software that into their own
environments, that you are attaching yourself to where
that consumption is.
And a couple of cloud providers, they have lots of different
ways of doing that.
One way specifically in the Microsoft world is partner of
record where you can tie yourself to that tenant
where your product is being deployed so that you can make
sure that you are associating yourself to that consumption.
So when you think about the left hand side of the customer
has to go buy that consumption or those services.
Where, how are they doing it?
And how is your product architected to use that?
Do you deploy in your own environment?
Do you deploy in the customer's environment?
And when the customer goes to buy the products and services
they need from the cloud, how are they doing that?
Are they doing that through a committed contract?
Are they doing it through a CSP?
Are they buying it through the marketplace?
And then making sure that you understand how you architect
your product to run then in that environment on how they're
purchasing it.
So that's the first part.
You need to understand the consumption piece and how your
customers are buying the cloud services they need to run
your product.
Then the second is you've got to go tell the cloud providers
who your customers are.
And you do that through their different CoSEL programs by
sharing your opportunities, sharing your prospects.
You are starting to tell the cloud provider, these are our
customers, this is where we're trying to go to market.
And that gives them an idea of how you align inside of their
organization.
Especially if you are an ISV who has platformed your product
on your own tenant, the only way that the CoSEL program is going
to know who the customers are that you're talking to is to
put those opportunities into their CoSEL programs.
So I'm a SaaS running in my own tenant.
The CoSEL provider is not going to know those customers
unless I start to put them into CoSEL.
I start to give them visibility to who I am talking to.
I can start to then engage with those sellers and I can start
to engage in the organization, in that CoSEL
providers organization in that way.
The second is if I'm a managed service provider, again,
selling to those customers, the way I can tell the cloud
provider who those customers are that I have a managed service
with is through the CoSEL program.
And then marketplace, as you're selling through the
marketplace, yes, your cloud providers already will know who
your customers are because you're selling through their
marketplaces.
But this is a really great way to engage with the field
sellers to help you teach and educate those customers and
ensure that the purchases are being done through the marketplace.
And then your BYOL customers, man, if you don't have a way to
attach yourself to that consumption, they didn't buy it
through the marketplace.
Then the only other way to tell that cloud provider who your
customers are is to put it through their CoSEL programs
because they're going to be buying your product, deploying
it in their own environment.
Then those cloud providers are going to watch their customers
to see that their consumption starts to increase.
And when they see their consumption start to increase,
they then look back over a rolling 12 months to go, oh,
what third-party products did this customer buy over these
last 12 months?
And then they're going to loosely give attribution to
those ISVs or third-party companies that had wins in their
CoSEL program.
They saw that consumption go in with that customer, then they
must correlate loosely that those companies are influencing
and driving that consumption.
And then the more they see that, then the more they go, oh, I
need to go figure out what the software company is, how can we
help them do more?
So getting on their radar, one, you have to know how you drive
consumption.
You have to be able to tell that consumption story so that when
you start to reach out to the organization, through their
CoSEL programs, you will have an opportunity to tell your story
of who you are, what you do, what consumption you drive to them
for them, and how you light up on their scorecard and on their
metrics that matter.
So in the next slide, I kind of netted this out to know these
three things.
So why having a consumption story matters?
You need to know how much consumption you drive.
So if you can figure that out specifically per deal, that's
great.
But if you can't, can you get to averages?
Do you have an average consumption?
Can you tell that by maybe t-shirt sizing it?
Small, medium, and large?
Maybe it's by a use case scenario or an industry play.
Can you get to some averages around the consumption when you
deploy our product?
You should see X in consumption over a rolling 12 months.
Also know how long it takes to get your product deployed and
that meter spinning.
Every cloud provider wants to know, like, how fast is your
sales cycle?
How fast does it-- how fast you deploy your product and does
that meter get turned on?
And then once the meter turns on, how much consumption should I
expect from you on a monthly basis or over a rolling 12
months so that I can understand the impact that you're going
to have on the metrics that matter to me?
Then the next thing you need to do is you have to tie yourself
to that consumption.
So it's not just enough to know the consumption story and be
able to tell your consumption story.
You have to tie yourself to it so that when they look in their
systems, they can see that you are the ISV driving that
consumption, whether you're directly tied to it or indirectly
tied to it through Co-Cell and putting in your opportunities
and closing them as wins.
You are tying yourself to that customer and as that customer
consumes more, they will look back over those ISVs to see
who's helping drive that consumption.
So no tie.
And now you have to go tell.
You have to go tell your success stories.
Tell them where you're winning.
Tell them the impact that you're driving, the momentum that
you're creating, quarter over quarter.
They will see your wins.
They will see some of this information.
But you really owning your story and making sure you tell
them who you are, what you do, where you're winning, and the
momentum that your partnership is creating quarter over quarter.
They can't really see that momentum.
So you've got to put your momentum story together and go
tell it.
Awesome.
Thanks, Aaron.
Thanks for the level set there.
I want to pass the mic over to Patrick.
Can you share what it means?
What does it look like driving consumption for the Cloud
Service Providers?
Patrick?
Yeah, certainly.
So Aaron brought up some great points around how do you put
that story together?
But there's three stories, I think, that we need to focus
on figuring out which one you fit into.
And we'll talk in a minute about how we can help with the
last one.
But the first story is that consumption that you drive as a
customer of the Cloud provider.
And so those are your internal tools, your resources, your
mail, your storage, everything that drives your
maybe commitment that you have with the Cloud provider.
That's one story that we already know and that you don't
really need to tell because that's already being reported
and you're paying for that, right?
You're paying for those services.
The second one, and that's kind of what we're showing here on
the top, is your products that are consuming the Cloud
provider services on your tenant.
And so that's the one where Aaron suggested that we need to
be able to tell that story to the Cloud providers, and we need
to be able to articulate that in a meeting from Lander.
So that's the first one.
And if you do that, if you use that first story here, this
customer, excuse me, your tenant product, meaning when a
customer gets access to my software, it's deploying within
our tenant, it's spinning up more of our services, our bill is
going up with the Cloud provider, and we're getting all the
credit for that.
If you do that, then yes, your company as a whole, your
brand, everything's going to look better to the Cloud
provider.
You're going to get more executive alignment.
The AE on your account is going to get super happy.
Is there getting paid more?
They're growing your account, right?
That's what they're trying to do.
And so you're definitely unlocking access to new programs and
incentives.
And then if you take those deals through the marketplace, now
you're doubling up on getting compensation for the CSPs, AEs
that are involved in that transaction.
So you're checking a few boxes here, but it's mainly
focused on your account and what you're doing.
What we really want to focus on from a co-sell perspective is
how do we help engage the other side?
And so while that story is not a bad story, there are a lot
of use cases where we get customers asking us to say, hey,
I have my own story and it's quite good, but I need to go
into another cloud.
Maybe I'm on AWS and I need to go to Microsoft.
Or maybe it's vice versa.
Or maybe I don't have a good way to get co-sell really going.
It's failing or it's not moving strong enough.
I don't have a great better together story and I need another
way to show that.
And that's where the last piece here, that third story to tell,
which is, can you consume the customer tenant
for your product deployments?
Meaning when I deploy it, when I sell my software, it's going
to go land on the customer tenant spin up.
Their services increase their bill.
If we do that, then we have a markedly higher impact
across the CSPs because we're hitting more AEs.
So if I'm now going out and co-selling the cloud provider
AEs who are compensated for the accounts that they cover,
rowing those accounts, the services, growing the commitments,
that's how they're getting paid.
If I'm allowing them to get paid more by having my product land
on that infrastructure, now you can obviously see there's
a much more significant value to those cloud provider AEs.
So that's the story that we're trying to tell today is that
we all know there's a useful story when it's on your own
tenant.
But what you don't know is that if you can spread the wealth,
so to speak, and you can help incentivize the cloud AEs
across the customers that you're working with,
then this is really going to be more impactful to that story
that you're telling because now you can accurately measure
in a manner in which is by customer, hey, when I deploy
on this type of a customer, I can tell you exactly how much
consumption I'm drawing of them.
I'm hitting S3 buckets or whatever the infrastructure
services that you're growing in the customer's environment,
we can actually talk to those.
And those are things that the CSPAEs want to hear.
Obviously, yes, you want to talk about,
how are we helping solve the customer use cases,
and why are we better together and all that stuff.
But today we're talking about the consumption story,
and we want to be able to tell it better, which we can do
through that deployment method.
And then obviously marketplace is on there as well,
because there's no difference there.
OK, and so now as a partnership leader or a product team
or a CRO, you're getting thrown into this wheel,
and everybody's trying to get you to make marketplace work.
Make cost of the work, make marketplace work,
we're expecting all these things.
And aside from level setting and expectation setting,
there's a ton of challenges that are out there
that are trying to be met by these folks.
And so a lot of you on the phone as well.
You've got goals that I need to hit a certain level
of partnership or inbounds or specifically now.
I need to tell a better consumption story.
I need to drive more consumption to my customer tenants.
I'm not going to be where I need to be
from a co-sell perspective unless I can tell a better story.
So how do I do that?
I need more relationship building with these Cloud AEs.
And so we just talked about some of the ways we can do that.
But internally and externally, you've still got other challenges
to navigate.
We might not have the right security in place.
And so Dre is going to talk a little bit about that.
But if in the land of AI and everybody's
integrating all these new tools into their stack,
how do I ensure compliance and security
and tell a better story so that I'm not
having to spend weeks and months in an additional sales cycle
time just proving to a potential customer
that I'm going to be able to manage their data securely
and privately and what have you.
So there are other challenges that we need to be considering.
And we're going to talk a little bit more about this
in a second.
But I wanted to tee that up because it's
important to remember that we're not just
trying to hit a number.
We're not just trying to solve a particular problem
for our customer.
But we've got all these underlying challenges
that we now have to go spread across our internal teams
to make sure that we're hitting the security and compliance,
to make sure we understand how much consumption we're driving.
As we look to the future, we might
be looking at pay go models or some other public pricing.
And we need to change our internal systems to meet that.
So there's a lot going on there.
And I think it's important to make sure that we keep these
in the top of our mind as we talk through this today.
So we thank you, Patrick.
All right, well, we're going to pass it over to Dre now
to show some of the new challenges that are emerging
in cloud marketplaces and then really diving into what
is BYSC and how you can use it.
So Dre, the floor is yours.
Yeah, cool.
Thanks so much for the hand off there.
I mean, it's a well-known fact that AI is accelerating
cloud consumption.
The majority of ISVs are embedding AI into their products.
And this is introducing new privacy concerns
that we've never seen before.
So when customers use your product today,
or they're evaluating your product,
they're deep diving into security and privacy
objections of how their data is managed by our team.
And we're seeing more and more customers come with very
specific tailored request on how to solve their privacy
concerns, and it's making procurement cycles longer,
making these prolonging their cell cycles for their teams.
And additionally, ISVs are tasked with,
like, how do we enhance our offerings
so that we're attracting more mid-market and enterprise cloud
AEs to position our product for their end customers
to drive that consumption?
And if you don't know, in co-selling,
the holy grail is to become the vendor of choice
for these cloud AEs.
I'll tell you a quick story.
When I was selling at Salesforce,
I was selling a platform called Heroku.
Heroku had an amazing marketplace.
They still have an amazing marketplace, by the way.
There's four developers that you quickly purchase
and extend their capabilities on the Heroku platform.
And it's very similar to how customers purchase public
offerings on the hyperscaler marketplaces.
And it was great seeing my customers purchase
through the Heroku marketplace.
I loved it, right?
But the challenge as an AE was I didn't see any of that revenue.
It didn't burn down my quota, right?
And so-- but we had very specific partners in the marketplace
that we would bring in for custom use cases.
And these solutions saw very tailored challenges
for our customers.
They're also on the marketplace.
But the beauty behind with these--
I'm going to call them private offers,
because it's a very similar play here.
The beauty behind it was not only could the customer
use their Heroku credits to pay for that solution,
but it would also help me and retire my quota.
And that's the same thinking that these cloud AEs are having.
So how can you be more involved into these deals
out of the thousands of Heroku marketplace listings
that are there?
Every single Heroku AE had an ISV of choice
to co-sell with every single month.
So as you think about your go-to-market motion
in these marketplaces, becoming the ISV of choice
should be your North Star.
It should be your North Star and how
we get a better relationship with these cloud AEs
and telling you, if you can have a direct connection
to how they get paid, that's what we're going to talk about.
So let's deep dive into our reasoning behind
bring your own cloud and what we're
bringing to the market with Nuon and how we can help you get there.
I'll kick it over to you, John.
Awesome.
So bring your own cloud is essentially
like this emerging employment strategy.
And the way I think about it is we've
lived in a world of SaaS for the last 20 years.
The default way you consume software
is you go to somebody's website, you sign up,
the products fully managed.
And then for the enterprise side,
you see this self-hosted paradigm where
it's in the customer's account.
Bring your own cloud is really a hybrid of the two,
where you have the look and feel of the SaaS,
it's easy to use, quick to install.
Patrick, you mentioned getting into the customer's account
quickly before and then spinning off the software quickly.
BYOC brings that, but then it has all the isolation,
integrations, and the data privacy challenges met
by running in the customer's cloud account.
And so you see these different employment strategies
kind of emerging where it's not only
in a customer's cloud account, it can be deployed
inside of the customer's virtual network on the cloud
and integrate with more systems.
And then you start to think about like, okay, with AI,
what's happening, everyone's kind of like,
seeing all these new capabilities and like curious about
like what happens with my data.
And what we're seeing from our customers are that
ISVs are actually getting demanded to run
in the customer's account even earlier than ever before.
We're seeing companies come to us and say,
hey, we're trying to sell to a series a startup,
our AI products, and they're demanding this
in their own cloud account.
And that has this kind of interesting network effects
because all of the public clouds have these AEs
who are working with startups, mid-market enterprise,
and they're on a consumption side.
So those customers are saying,
hey, we wanted a data streaming solution.
Hey, we wanted analytics product,
but we wanted an art account, what do you recommend?
And that's really where BYOC comes in.
It's really this like SaaS like experience,
but it actually satisfies all those requirements
for those customers and really needs the needs of both,
even the ISV, being able to have the one deployment model,
but also the customer's privacy and security concerns.
>> Amazing.
And so given that we've, you know,
we'll continue to see these privacy concerns
from customers, right, as the adoption of AI increases.
And BYOC to John's point completely alleviates
those customer privacy concerns
and aligns with their security postures, right?
And moreover, in terms of like addressing cloud consumption
in their tenant, that again, directly impacts
the cloud AEs revenue goals to help them retire quota.
And we do see a very strategic play here
where not only can you differentiate yourself
in the marketplace by unlocking this new product capability
with your existing products,
but also increase those demands for private offers.
So like again, those custom use cases where maybe
the customer doesn't want to do the traditional,
you know, click a button here
and we're deploying your solution on the public offering.
We do see a world where BYOC will continue
to create demand for those private offerings.
And so let's just dive a little bit deeper.
John, you can for sure like take this slide,
but I'll sort of give it at a high level
to Patrick's point earlier, right?
It's ISV tenant consumption versus sort of customer
tenant consumption.
We're seeing this shift in real time here at Nuon
where multi-tenant SaaS applications are moving
to a BYOC SaaS world because of these security concerns
and other concerns that customers have brought
to our vendors.
And so when you think about multi-tenant SaaS, right,
the compute data storage, the networking is hosted
in the customer's cloud, in your cloud account,
that means you're on the hook for data privacy security,
everything is controlled by you, right?
And then again, that consumption lives in your account.
And in a BYOC world, that consumption moves completely
in the customer's cloud account.
But John, you wanna add anything to this?
- No, I was just gonna say, I mean,
I love the point Patrick made it around like,
in this BYOC world, you go from being this large ISV
with one account, you're working with 180,
whereas in the bring your own cloud deployment option,
if you're offering that, you suddenly are driving consumption
for hundreds of cloud AEs, right?
Because you're actually moving your cloud spend
from your account and the customer's account.
And it's actually like genius, to be honest,
and maybe I'm a little biased here,
but like the way I think about it is as an ISV,
if you have locked this capability,
A you remove the sort of, you know,
your whole cloud spend story,
so you're not paying the clouds.
But then you get all this credit from all these AEs
who are then selling your product
and you're unlocking capabilities for their customers.
And so it's no longer the sort of drive of like,
"Hey, we need to be the next Netflix."
But hey, we're actually gonna, we're gonna grow
and we're gonna help all of our AEs
that all of our customers AEs drive consumption.
And I think, you know, what you see is really this like,
you know, aligning incentives where it's actually more secure
for the customer, there's more capabilities
with the right infrastructure in place,
it's easier for the ISV.
And then with the kind of concept of private offers,
you don't have to take your enterprise deals
and do them custom, you can actually drive them
through the marketplace and it's really like a win-win.
- Yeah, and I just wanna add a couple of things here.
When you do move to a BYOC,
your customer will be able to,
if they have a committed spend contract
with that cloud provider
and they purchase it through the marketplace,
they'll be able to get that initial purchase
to be deprecated against their commitment.
But also in a BYOC, now the ongoing consumption
of using that product in their environment
will also help them burn down more and more
of their commitment every month.
Where in a multi-tenant SaaS,
they only get that initial purchase
as a burn down against their commitment.
And then the ongoing consumption is happening
over in the ISV tenant.
So when you do move over to a BYOC,
your customer will be able to continue
to burn down their commitment as well.
Now, I will tell you, in the beginning of like,
I've been with Coastal for a long time.
And in the beginning, there were a lot of ISVs
that started out as BYOC.
And then there was this shift to do multi-tenant
and to run it in your own ISV environment.
And now we're seeing another shift again,
back to BYOC for all the right reasons
around security and compliance.
But your AEs in these, with the cloud, the cloud AEs,
they have been burned in the past
with helping ISV is sell their solution.
And then because it's BYOC, it didn't land
in that cloud provider's environment
and they didn't get the ongoing consumption.
And that's what everybody wants.
Yes, it's great to have that initial win,
but what they really want is the ongoing consumption.
And they want that guarantee of the ongoing consumption.
So they move towards these multi-tenant SAS ISVs
because it was like, great, guaranteed consumption.
I know when I sell this ISV solution,
it's gonna run in my cloud.
One of the great things about noon
is that they help you convert your app
and ensure that it's running in that cloud provider's environment.
So now you get the best of both worlds.
You get the BYOC capabilities
and the assurance that it's going to happen in that cloud
because the app has been architect and designed for that cloud
because you will need as you go to co-sau
with the cloud sellers and you tell them your BYOC,
you need to be ready to tell them, don't worry,
our product will deploy in your cloud
and it will drive consumption
because there's this history,
they've been burned in the past
and they're a little bit reserved when it comes to BYOC.
But BYOC is definitely getting that momentum.
Just know that you should give them that reassurance that,
yup, we're gonna drive this consumption.
Here's what it looks like and yes,
it is going to be in your cloud environment.
Don't be worried when you see BYOC.
- Well, I think there's an interesting thing there too,
which we haven't really talked about that much in this call,
which is like time kills all deals, right?
And if you're combining this idea of bring your own cloud
and leading with bring your own cloud
as well as the marketplace,
you're gonna keep the old velocity
as you're going through the sales process.
Something that we see all the time
is our customers, the ISVs,
maybe they'll start with like a POC on their SaaS product,
the host and SaaS products.
And then the idea is like,
hey, we're gonna like let the customer try the products
and maybe, maybe or maybe not,
it's the marketplace listing.
And then going into production is,
oh, we're gonna actually deploy into their cloud account.
And there's so many sort of pitfalls in that sort of approach
because for Keramik and Take-A-Law,
and there can be surprises when you move
to the customer's account trying to get into production.
And the thing I always kind of talk about is like,
getting into production with your customer
is the most important part of landing the deal
and building a long-term relationship with the customer.
And by sort of driving with,
hey, you can pay for us with your existing marketplace
or sorry, your existing cloud contract and your spend,
but also we're gonna start by being in your account
and we're still gonna give you that SaaS experience.
It's kind of like doubling the benefits
of moving the deal along.
And some of the things that we see in the market
is actually when customers do that,
their whole procurement process is completely different.
It's like, instead of going through weeks and weeks
of sharing different docs
and like what they're kind of doing internally,
it's like, okay, like you check this box
and like, this is how we want the product to play.
Oh, we can also pay.
That also meets other people in our organization
who have access to AWS
can actually start bringing in new products and whatnot.
So it's really like an interesting combination.
And I think the two together,
you really see that velocity picking up,
especially with any product that is deemed sensitive,
critical, if you're selling critical business software,
touching data, anything touching PAI
or anything that's leveraging AI,
it's at table stakes at this point.
- Yeah.
And like all that consumption's happening in their tenant,
even from like the POC to production,
like it's all happening in that customer's tenant
and they're the ones driving that consumption.
Or they're getting credit for like all that consumption,
I should say.
- Absolutely.
- And so you have like hundreds of these AEs
who are thinking about your product and like,
hey, you're the data streamer product
that I'm gonna recommend,
you're the LOM sort of off-product I can recommend
because you've already powered BYOC workloads
and during a consumption for my customers.
It's just a no-brainer when you start
to kind of like combine the two.
- Sweet. Well, I'm sure everyone here is thinking,
well, this is great, BYOC,
but how do I actually create an offering for my customers?
So good news, we've got the answers.
John, do you wanna jump in and let us all know
how that's possible?
- Yeah, totally.
So, you know, here at DoOn,
we're building a platform that enables any ISD
to package their application and create,
essentially a BYOC offering.
And so what that does is you come to DoOn,
we give you the tools to package your app,
deploy it in your customer's account,
and then manage the day two operations.
And so that can live alongside your marketplace listing,
you can list it as a SAS,
you can create credit offers
and deliver your product directly in the customer's account.
And it's not hosted or self-hosted,
it's actually a managed version of your products
that's deployed in the customer's AWS account
tied to their contract,
their spend, driving consumption.
And at the same time, your development team
is gonna be able to build,
deploy and operate the product just like it's a SAS.
It's really a marriage of the two.
It's the self-hosted isolation and privacy
and security with the sort of SAS experience
that everyone knows most.
- What are, can we go back to that slide, John?
I would love for you to just very like a high level,
talk about like some of the challenges that we've seen
from teams trying to like do this themselves, right?
They have a demand from the customer.
Usually it works where the sales team
comes to the engineering team,
they go to engineering team or their product team,
they're like, look, our customer need our product
in their cloud account.
Like, how can we do this in a record time
to like actually close this customer?
And we think about these three pillars,
lifting and shifting and existing product,
like talk about like some of the challenges
that we've heard over the last couple of years.
- I mean, I think the simple one is,
if you're doing this yourself, unless you have
the expertise in house, you have a large cloud
sort of infrastructure team
who's building this automation,
and you're essentially like building a second products
to automate this, you turn into a services business.
And so one of the things that we see is as customers,
start to ask for BYOC, the ISD will say,
hey, we'll do one or two.
And suddenly it's like, hey, we can only do that
if we're, it's a 500K contract
because we have to dedicate resources.
And really like the idea there is it's actually manually deployed.
And so that also kind of creates problems around,
you know, suddenly you have like five or 10 different
environments every customer looks different.
Your team is sort of splitting resources,
manually managing these environments,
and then meeting the requirements of the customer.
So each customer is gonna come to you
and ask for different release update cycles,
maybe different requirements, maybe they wanna run
in their own VPC or a network.
And so what happens is you kind of turn into this
services business, whereas, you know,
it suddenly goes from, hey, we're unlocking
like a couple of customers to,
hey, like half of our team is split managing this
because it's so complicated and there's,
there's so many different requirements.
And I think, you know, really like our philosophy was like,
we wanted to give you the building blocks
and essentially the little blocks to kind of offer this
and meet the customer update requirements,
deploying to their existing networks,
create full sort of managed POCs,
without having to go and spend, you know,
months or years building out the automation to do it yourself.
- Amazing.
You wanna say something, man?
- I was just gonna say like, we feel similar at tackle,
like, yes, you could build it,
but then once you build it, you've gotta maintain it.
You've gotta continue to stay on top of it and evolve it
and keep up with the pace of, you know,
whatever that industry is that you're in.
And so could you do it?
Sure.
Should you do it?
You know, is another question.
- And I think it's also, you know,
the same thing with driving velocity in your sales cycle.
If your sales process is slow, you're gonna lose revenue.
If your product velocity is slow,
you're gonna lose market share, mind share, et cetera.
And one of the things that we've consistently heard,
especially from companies who are building
a product, state of products, analytics products,
anything like that, they're like, you know,
look, like we'd have to go hire a new team
to bring these capabilities in house.
And, you know, that's also kind of the thing.
And naturally building a company focuses
the most important thing in it.
The most cherished part, right?
And you can only do so many things.
And yeah, I'm happy to share a little bit more here,
you know, a little bit of the workflow,
like generally customers coming to Newon
have one or two end customers who are ready
to be deployed into their own account.
And they might or might not have different requirements.
So things that we hear is,
hey, I want you to deploy into my existing BBC.
Hey, I want you to do a POC and a sub account
where we can kind of isolate things
and spin up the entire application.
Really, like what that means is a customer
is somewhere in the deal cycle.
They're excited about the software.
They're talking to you, but they're saying,
hey, like you need to meet a couple of requirements.
You need to meet our DevSecOps requirements
or integration requirements to touch our data.
And then suddenly it's like, you know,
the ISD kind of goes into sprint mode.
It's like, well, how can we make this happen?
And so that's really when the vendors are finding Newon,
they're coming to Newon, they're like,
hey, we need to turn something around
and they have existing tooling,
whether it's Terraform, hell,
like kind of this cloud automation tooling.
And then what we do is we let them package the product
and create like a nice little installer experience
they can share with the customer.
That can be tied into their SaaS marketplace listing.
And then from there, that's when everything kind of starts,
the real challenge is start,
which is like, how do you make sure it's actually working?
You know, the last thing you want is to be the ISD
who's driving a bunch of consumption
in the customer's account,
but there's no usage in the product's not working correctly.
And really that's where like a lot of our value prop comes in
and we give you the tools to make it feel like SaaS.
And you know, that's ultimately like one of the things
that I think is always the friction between the BYOC
and the SaaS experiences without the right tooling,
it's really hard to make sure that your product's working
in a customer's account where you don't have access to it.
And that's why so many ISDs try to push for the sort
of SaaS offering because it's just easier for the ISD.
The ISD can always, you know, jump into their AWS account,
look around and see what's going on.
Whereas really like the day to the .3 and .4 on this side
is like really where we see our value prop coming in
as you know, you're driving consumption,
you have an awesome product like make sure it works
and make sure your updates and you know,
rollouts and all that is working.
- Hey John, we have a question that I think is actually
like great timing.
Are there any application type limitations
for nuanced BYOC?
In other words, does it need to be containerized applications?
- No, we've spent a long time kind of thinking about this
and you know, one of the things that we did in one of fours
is like architecture patterns on our customers.
So today we have customers on AWS
as you're everything from serverless to Kubernetes,
kind of pulling in cloud services, you know, using like
existing like RDS databases, things like that.
We even have customers who are using like
additional critical clouds.
And so like that's really, you know,
where we kind of like fit in is like
if you have any automation at all,
or you have like really simple apps
that we can support you pretty quickly.
- Yeah.
And when you say private SAS equals BYOC,
are these different?
Are those terms used interchangeably?
We also had that question.
I know we live in a world of acronyms
and in our text based, we all have our own language
and sometimes like we say things and like
we have multiple words that say this,
that mean the same thing.
- Yeah, I mean, this is definitely something
that we're working hard to do.
We've been chatting with some of the larger companies
who offer this and BYOC is kind of the standard term,
but a lot of things that we hear
and interchangeably private SAS is pretty much
the same thing, cloud, prem, customer cloud,
even self hosted, even on premise,
depending upon the context.
And so really like, you know, our thinking was
with bring your own cloud and some of the larger companies
who offer this, it's just a lot clearer.
Private SAS is using at least,
and it on premise, you kind of--
- I think that the second general has gotten confusing, right?
It's like, it's SAS and then you've got to go,
okay, is it SAS like running in the ISV tenant
or SAS that can run in the customer's tenant?
And getting clean on like where the SAS is running,
I think is important and back like early on,
I feel like I'm dating myself,
but back early on in this CoSAL experience,
we saw the interchange of BYOC with BYOL.
It was like, bring your own cloud is the same
as like bring your own license, like buy our software
and then deploy it in your environment
is essentially like what we saw BYOC and BYOL,
being used interchangeably.
- Yeah, and I think the other thing that's interesting now
is like you kind of have the standardization
of like all the operational best practices
and like deploying the best practices of SAS.
As an industry, we figured that out.
And so now you're starting to see those best practices
being combined with the isolation and the data privacy
of like self-hosted, and that's really where BYOC comes in.
It's like it, actually the experience that I always kind
of like share and like think about is like,
you should be able to go to Slack or whatever, chat app,
sign up on the website and actually have it
in your cloud account.
And it should look and feel just like you're using
an existing product.
And if we do our jobs right, that's what will make happen.
But yeah.
- Awesome.
- Great. Well, thanks for those answered questions.
I know we're at time, but I just want to make sure
we covered everything we needed to on.
It looked like, I'm gonna pull up this question
on the screen.
Did this one get answered while in my chat?
Or did you all want to chime in a little bit more
in this one?
- I answered Mark's question in the chat.
- Okay, awesome.
- Anything else you want to unpack with this question
in the chat or are we all good?
- I think we also hit this one in the chat.
- We got a new one right here.
- Okay.
- From Gary, I have an ISP chooses to go to BYOC
from new one.
Is it easier to get products approved
for cloud marketplace listings?
- So let's far we've seen this and still early.
And I think a lot of it depends on how far along
and like what type of production customers
the ISP has gone through it and what those
layman options are.
I think generally if you are doing a BYOC offering
with new one, we recommend at least two or three
different deployment options to meet different needs.
And specifically if you can run into customers network
and kind of support different hub and spoke
that work configurations and things like that,
I think it's easier.
And also easier to land those clients.
- Love it.
All right, well, we're at time.
So one, one more time, huge thank you,
Dray, John, Erin, Patrick for sharing your insights today.
Of course, thanks to all of you for attending,
sharing your excellent comments and questions
and contributions.
So be on the lookout for the webinar recording
in your inbox in the next 24 hours.
There's a button there.
If you want to chat with someone on the tackle team
to learn more about cloud GTM and how to launch
and scale your cloud GTM strategy, you can click there,
but yeah, be on the lookout for the recording
in your inbox and a blog post from new one.
So in the meantime, have a great day
and we'll see you all next time.
Bye everyone.
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