Tackle & Erin Figer 45 min

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.



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(upbeat music)

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- Without further ado, let's get to know our panelists today.

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We're gonna start with you, Dre,

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wanna jump in and introduce yourself to the audience.

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- Absolutely.

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Hey, hello everyone.

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My name is Dre Smith here at Nuon.

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Very excited to talk to you about building

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a consumption story for effective co-selling.

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I've been selling for the last half of my co-selling,

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the last half of my career to ISVs as a Salesforce,

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and I'm a CEO of Nuon.

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I'm a CEO of Nuon.

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I'm a CEO of Nuon.

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I'm a CEO of Nuon.

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I'm a CEO of Nuon.

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I'm a CEO of Nuon.

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I'm a CEO of Nuon.

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I'm a CEO of Nuon.

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I'm a CEO of Nuon.

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I'm a CEO of Nuon.

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I'm a CEO of Nuon.

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I'm a CEO of Nuon.

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I'm a CEO of Nuon.

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I'm a CEO of Nuon.

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I'm a CEO of Nuon.

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I'm a CEO of Nuon.

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I'm a CEO of Nuon.

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I'm a CEO of Nuon.

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I'm a CEO of Nuon.

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I'm a CEO of Nuon.

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I'm a CEO of Nuon.

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I'm a co-founder and CEO here at Nuon.

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Been building cloud products for the last 10 years.

1:02

And the past two years we've been building Nuon,

1:05

which is enabling a new deployment pattern.

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There's a lot of synergy with GoToMarket

1:10

and the cloud marketplaces and some of the things

1:12

that we're seeing.

1:13

So excited to share today and hopefully show everyone

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some new capabilities.

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- Awesome.

1:20

Glad you're here, John.

1:21

Aaron, you wanna jump in?

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- Absolutely.

1:23

Hi everyone.

1:24

I'm Aaron Figer.

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I'm the VP of CoSEL here at Taco.

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And I joined the Taco Group about 18 months ago

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through the acquisition of my company Core Consulting,

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where we spent the last 10 years

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helping software companies build

1:40

and operationalize CoSEL.

1:42

- Love it.

1:44

All right, Patrick.

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Last but not least, our cloud GTM wizard over here.

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- I feel like I need a point you had in the wand after that.

1:51

Everybody, Patrick Riley, Cloud GoToMarket Insider,

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or excuse me, Cloud GoToMarket principal here at Taco.

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And I've been here for about two and a half years.

2:00

And I get to spend every day with a lot of our ISVs

2:03

learning the ins and outs of their business,

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the challenges that they have.

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And I'm super excited about this webinar today

2:08

because a lot of the challenges that have come up are

2:11

how do we tell a better CoSEL story?

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And I know that's something that's Aaron and I as a baby.

2:17

So we're excited to talk to you a little bit more about that.

2:20

And I'm glad to be here with you all.

2:22

- Awesome.

2:23

- Love it.

2:24

Well, let's do a quick agenda deep dive

2:26

and then we're gonna pass it over to Aaron.

2:27

So first we're gonna jump into why having a consumption

2:30

story matters in a big picture with your CoSEL strategy.

2:33

Then a few goals and challenges for the partnership leaders

2:36

are facing today.

2:37

So new challenges that are entering the cloud market places.

2:40

And then last but not least, we're gonna dive into

2:42

what is BYOC and how it can strengthen your consumption

2:46

story and then lots of all how you can get started

2:48

with it today.

2:50

So without further ado, let's pass it over to Aaron Feiger.

2:52

Can you kick things off by sharing why having

2:55

a consumption story matters?

2:57

- Absolutely.

2:58

I think it's really important anytime that you start

3:02

to think about partnering with the clouds,

3:06

really understanding your consumption story first

3:11

so that you understand how you get on their radar

3:15

and really drive impact into the things that matter

3:21

for that cloud provider.

3:22

So we built this total impact formula to help explain it

3:27

to ISVs.

3:29

This is something we do inside of a workshop.

3:31

So I thought it'd be great to start off our conversation

3:34

today with really understanding the consumption story

3:38

and why it matters.

3:40

The left hand side you see here the cloud providers,

3:43

they have different ways for a customer to start to buy

3:48

their services.

3:50

So you can do that through a committed contract, an EDP

3:53

or a Mac, you make this commitment.

3:57

So that's one way.

3:58

If you are a CSP, you can resell the cloud services.

4:03

You can buy the cloud services through the marketplace.

4:09

And if you are a BYOC, which we're talking about today,

4:14

bring your own cloud, you wanna make sure that as your

4:19

customers are deploying your software that into their own

4:23

environments, that you are attaching yourself to where

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that consumption is.

4:28

And a couple of cloud providers, they have lots of different

4:31

ways of doing that.

4:33

One way specifically in the Microsoft world is partner of

4:37

record where you can tie yourself to that tenant

4:42

where your product is being deployed so that you can make

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sure that you are associating yourself to that consumption.

4:49

So when you think about the left hand side of the customer

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has to go buy that consumption or those services.

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Where, how are they doing it?

4:58

And how is your product architected to use that?

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Do you deploy in your own environment?

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Do you deploy in the customer's environment?

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And when the customer goes to buy the products and services

5:11

they need from the cloud, how are they doing that?

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Are they doing that through a committed contract?

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Are they doing it through a CSP?

5:18

Are they buying it through the marketplace?

5:20

And then making sure that you understand how you architect

5:25

your product to run then in that environment on how they're

5:29

purchasing it.

5:30

So that's the first part.

5:32

You need to understand the consumption piece and how your

5:35

customers are buying the cloud services they need to run

5:39

your product.

5:40

Then the second is you've got to go tell the cloud providers

5:45

who your customers are.

5:47

And you do that through their different CoSEL programs by

5:50

sharing your opportunities, sharing your prospects.

5:54

You are starting to tell the cloud provider, these are our

5:56

customers, this is where we're trying to go to market.

6:00

And that gives them an idea of how you align inside of their

6:04

organization.

6:05

Especially if you are an ISV who has platformed your product

6:10

on your own tenant, the only way that the CoSEL program is going

6:13

to know who the customers are that you're talking to is to

6:16

put those opportunities into their CoSEL programs.

6:20

So I'm a SaaS running in my own tenant.

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The CoSEL provider is not going to know those customers

6:25

unless I start to put them into CoSEL.

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I start to give them visibility to who I am talking to.

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I can start to then engage with those sellers and I can start

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to engage in the organization, in that CoSEL

6:37

providers organization in that way.

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The second is if I'm a managed service provider, again,

6:44

selling to those customers, the way I can tell the cloud

6:48

provider who those customers are that I have a managed service

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with is through the CoSEL program.

6:55

And then marketplace, as you're selling through the

6:58

marketplace, yes, your cloud providers already will know who

7:02

your customers are because you're selling through their

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marketplaces.

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But this is a really great way to engage with the field

7:08

sellers to help you teach and educate those customers and

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ensure that the purchases are being done through the marketplace.

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And then your BYOL customers, man, if you don't have a way to

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attach yourself to that consumption, they didn't buy it

7:27

through the marketplace.

7:29

Then the only other way to tell that cloud provider who your

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customers are is to put it through their CoSEL programs

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because they're going to be buying your product, deploying

7:39

it in their own environment.

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Then those cloud providers are going to watch their customers

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to see that their consumption starts to increase.

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And when they see their consumption start to increase,

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they then look back over a rolling 12 months to go, oh,

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what third-party products did this customer buy over these

7:57

last 12 months?

7:59

And then they're going to loosely give attribution to

8:02

those ISVs or third-party companies that had wins in their

8:07

CoSEL program.

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They saw that consumption go in with that customer, then they

8:11

must correlate loosely that those companies are influencing

8:17

and driving that consumption.

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And then the more they see that, then the more they go, oh, I

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need to go figure out what the software company is, how can we

8:26

help them do more?

8:29

So getting on their radar, one, you have to know how you drive

8:34

consumption.

8:35

You have to be able to tell that consumption story so that when

8:39

you start to reach out to the organization, through their

8:42

CoSEL programs, you will have an opportunity to tell your story

8:46

of who you are, what you do, what consumption you drive to them

8:50

for them, and how you light up on their scorecard and on their

8:54

metrics that matter.

8:56

So in the next slide, I kind of netted this out to know these

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three things.

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So why having a consumption story matters?

9:05

You need to know how much consumption you drive.

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So if you can figure that out specifically per deal, that's

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great.

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But if you can't, can you get to averages?

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Do you have an average consumption?

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Can you tell that by maybe t-shirt sizing it?

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Small, medium, and large?

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Maybe it's by a use case scenario or an industry play.

9:29

Can you get to some averages around the consumption when you

9:34

deploy our product?

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You should see X in consumption over a rolling 12 months.

9:39

Also know how long it takes to get your product deployed and

9:43

that meter spinning.

9:45

Every cloud provider wants to know, like, how fast is your

9:48

sales cycle?

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How fast does it-- how fast you deploy your product and does

9:52

that meter get turned on?

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And then once the meter turns on, how much consumption should I

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expect from you on a monthly basis or over a rolling 12

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months so that I can understand the impact that you're going

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to have on the metrics that matter to me?

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Then the next thing you need to do is you have to tie yourself

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to that consumption.

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So it's not just enough to know the consumption story and be

10:19

able to tell your consumption story.

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You have to tie yourself to it so that when they look in their

10:24

systems, they can see that you are the ISV driving that

10:28

consumption, whether you're directly tied to it or indirectly

10:34

tied to it through Co-Cell and putting in your opportunities

10:37

and closing them as wins.

10:39

You are tying yourself to that customer and as that customer

10:43

consumes more, they will look back over those ISVs to see

10:47

who's helping drive that consumption.

10:49

So no tie.

10:51

And now you have to go tell.

10:53

You have to go tell your success stories.

10:56

Tell them where you're winning.

10:57

Tell them the impact that you're driving, the momentum that

11:02

you're creating, quarter over quarter.

11:06

They will see your wins.

11:08

They will see some of this information.

11:10

But you really owning your story and making sure you tell

11:13

them who you are, what you do, where you're winning, and the

11:17

momentum that your partnership is creating quarter over quarter.

11:21

They can't really see that momentum.

11:24

So you've got to put your momentum story together and go

11:27

tell it.

11:30

Awesome.

11:30

Thanks, Aaron.

11:31

Thanks for the level set there.

11:33

I want to pass the mic over to Patrick.

11:35

Can you share what it means?

11:36

What does it look like driving consumption for the Cloud

11:39

Service Providers?

11:40

Patrick?

11:40

Yeah, certainly.

11:41

So Aaron brought up some great points around how do you put

11:45

that story together?

11:47

But there's three stories, I think, that we need to focus

11:50

on figuring out which one you fit into.

11:53

And we'll talk in a minute about how we can help with the

11:56

last one.

11:57

But the first story is that consumption that you drive as a

12:01

customer of the Cloud provider.

12:03

And so those are your internal tools, your resources, your

12:06

mail, your storage, everything that drives your

12:09

maybe commitment that you have with the Cloud provider.

12:11

That's one story that we already know and that you don't

12:15

really need to tell because that's already being reported

12:18

and you're paying for that, right?

12:20

You're paying for those services.

12:21

The second one, and that's kind of what we're showing here on

12:24

the top, is your products that are consuming the Cloud

12:29

provider services on your tenant.

12:32

And so that's the one where Aaron suggested that we need to

12:35

be able to tell that story to the Cloud providers, and we need

12:39

to be able to articulate that in a meeting from Lander.

12:41

So that's the first one.

12:42

And if you do that, if you use that first story here, this

12:47

customer, excuse me, your tenant product, meaning when a

12:51

customer gets access to my software, it's deploying within

12:55

our tenant, it's spinning up more of our services, our bill is

12:57

going up with the Cloud provider, and we're getting all the

13:00

credit for that.

13:01

If you do that, then yes, your company as a whole, your

13:04

brand, everything's going to look better to the Cloud

13:06

provider.

13:06

You're going to get more executive alignment.

13:08

The AE on your account is going to get super happy.

13:11

Is there getting paid more?

13:12

They're growing your account, right?

13:14

That's what they're trying to do.

13:15

And so you're definitely unlocking access to new programs and

13:20

incentives.

13:21

And then if you take those deals through the marketplace, now

13:24

you're doubling up on getting compensation for the CSPs, AEs

13:29

that are involved in that transaction.

13:31

So you're checking a few boxes here, but it's mainly

13:34

focused on your account and what you're doing.

13:37

What we really want to focus on from a co-sell perspective is

13:40

how do we help engage the other side?

13:43

And so while that story is not a bad story, there are a lot

13:45

of use cases where we get customers asking us to say, hey,

13:49

I have my own story and it's quite good, but I need to go

13:52

into another cloud.

13:54

Maybe I'm on AWS and I need to go to Microsoft.

13:56

Or maybe it's vice versa.

13:57

Or maybe I don't have a good way to get co-sell really going.

14:04

It's failing or it's not moving strong enough.

14:07

I don't have a great better together story and I need another

14:09

way to show that.

14:11

And that's where the last piece here, that third story to tell,

14:14

which is, can you consume the customer tenant

14:19

for your product deployments?

14:21

Meaning when I deploy it, when I sell my software, it's going

14:23

to go land on the customer tenant spin up.

14:25

Their services increase their bill.

14:27

If we do that, then we have a markedly higher impact

14:32

across the CSPs because we're hitting more AEs.

14:35

So if I'm now going out and co-selling the cloud provider

14:38

AEs who are compensated for the accounts that they cover,

14:42

rowing those accounts, the services, growing the commitments,

14:45

that's how they're getting paid.

14:47

If I'm allowing them to get paid more by having my product land

14:52

on that infrastructure, now you can obviously see there's

14:55

a much more significant value to those cloud provider AEs.

14:59

So that's the story that we're trying to tell today is that

15:02

we all know there's a useful story when it's on your own

15:06

tenant.

15:06

But what you don't know is that if you can spread the wealth,

15:10

so to speak, and you can help incentivize the cloud AEs

15:14

across the customers that you're working with,

15:17

then this is really going to be more impactful to that story

15:20

that you're telling because now you can accurately measure

15:23

in a manner in which is by customer, hey, when I deploy

15:26

on this type of a customer, I can tell you exactly how much

15:30

consumption I'm drawing of them.

15:32

I'm hitting S3 buckets or whatever the infrastructure

15:35

services that you're growing in the customer's environment,

15:39

we can actually talk to those.

15:40

And those are things that the CSPAEs want to hear.

15:44

Obviously, yes, you want to talk about,

15:46

how are we helping solve the customer use cases,

15:48

and why are we better together and all that stuff.

15:50

But today we're talking about the consumption story,

15:52

and we want to be able to tell it better, which we can do

15:55

through that deployment method.

15:57

And then obviously marketplace is on there as well,

15:59

because there's no difference there.

16:00

OK, and so now as a partnership leader or a product team

16:07

or a CRO, you're getting thrown into this wheel,

16:11

and everybody's trying to get you to make marketplace work.

16:14

Make cost of the work, make marketplace work,

16:16

we're expecting all these things.

16:18

And aside from level setting and expectation setting,

16:21

there's a ton of challenges that are out there

16:24

that are trying to be met by these folks.

16:27

And so a lot of you on the phone as well.

16:29

You've got goals that I need to hit a certain level

16:31

of partnership or inbounds or specifically now.

16:35

I need to tell a better consumption story.

16:37

I need to drive more consumption to my customer tenants.

16:40

I'm not going to be where I need to be

16:42

from a co-sell perspective unless I can tell a better story.

16:45

So how do I do that?

16:46

I need more relationship building with these Cloud AEs.

16:49

And so we just talked about some of the ways we can do that.

16:51

But internally and externally, you've still got other challenges

16:55

to navigate.

16:56

We might not have the right security in place.

16:58

And so Dre is going to talk a little bit about that.

17:01

But if in the land of AI and everybody's

17:04

integrating all these new tools into their stack,

17:07

how do I ensure compliance and security

17:10

and tell a better story so that I'm not

17:12

having to spend weeks and months in an additional sales cycle

17:16

time just proving to a potential customer

17:19

that I'm going to be able to manage their data securely

17:22

and privately and what have you.

17:23

So there are other challenges that we need to be considering.

17:26

And we're going to talk a little bit more about this

17:29

in a second.

17:29

But I wanted to tee that up because it's

17:31

important to remember that we're not just

17:34

trying to hit a number.

17:35

We're not just trying to solve a particular problem

17:38

for our customer.

17:39

But we've got all these underlying challenges

17:42

that we now have to go spread across our internal teams

17:45

to make sure that we're hitting the security and compliance,

17:48

to make sure we understand how much consumption we're driving.

17:51

As we look to the future, we might

17:53

be looking at pay go models or some other public pricing.

17:56

And we need to change our internal systems to meet that.

17:59

So there's a lot going on there.

18:01

And I think it's important to make sure that we keep these

18:05

in the top of our mind as we talk through this today.

18:09

So we thank you, Patrick.

18:11

All right, well, we're going to pass it over to Dre now

18:13

to show some of the new challenges that are emerging

18:16

in cloud marketplaces and then really diving into what

18:18

is BYSC and how you can use it.

18:20

So Dre, the floor is yours.

18:22

Yeah, cool.

18:23

Thanks so much for the hand off there.

18:25

I mean, it's a well-known fact that AI is accelerating

18:29

cloud consumption.

18:31

The majority of ISVs are embedding AI into their products.

18:34

And this is introducing new privacy concerns

18:37

that we've never seen before.

18:39

So when customers use your product today,

18:42

or they're evaluating your product,

18:43

they're deep diving into security and privacy

18:47

objections of how their data is managed by our team.

18:51

And we're seeing more and more customers come with very

18:54

specific tailored request on how to solve their privacy

18:58

concerns, and it's making procurement cycles longer,

19:02

making these prolonging their cell cycles for their teams.

19:06

And additionally, ISVs are tasked with,

19:09

like, how do we enhance our offerings

19:10

so that we're attracting more mid-market and enterprise cloud

19:14

AEs to position our product for their end customers

19:18

to drive that consumption?

19:20

And if you don't know, in co-selling,

19:22

the holy grail is to become the vendor of choice

19:27

for these cloud AEs.

19:29

I'll tell you a quick story.

19:30

When I was selling at Salesforce,

19:33

I was selling a platform called Heroku.

19:35

Heroku had an amazing marketplace.

19:37

They still have an amazing marketplace, by the way.

19:39

There's four developers that you quickly purchase

19:42

and extend their capabilities on the Heroku platform.

19:46

And it's very similar to how customers purchase public

19:51

offerings on the hyperscaler marketplaces.

19:55

And it was great seeing my customers purchase

19:57

through the Heroku marketplace.

19:58

I loved it, right?

20:00

But the challenge as an AE was I didn't see any of that revenue.

20:04

It didn't burn down my quota, right?

20:07

And so-- but we had very specific partners in the marketplace

20:12

that we would bring in for custom use cases.

20:15

And these solutions saw very tailored challenges

20:18

for our customers.

20:20

They're also on the marketplace.

20:22

But the beauty behind with these--

20:24

I'm going to call them private offers,

20:26

because it's a very similar play here.

20:28

The beauty behind it was not only could the customer

20:31

use their Heroku credits to pay for that solution,

20:36

but it would also help me and retire my quota.

20:39

And that's the same thinking that these cloud AEs are having.

20:42

So how can you be more involved into these deals

20:46

out of the thousands of Heroku marketplace listings

20:51

that are there?

20:53

Every single Heroku AE had an ISV of choice

20:58

to co-sell with every single month.

21:00

So as you think about your go-to-market motion

21:03

in these marketplaces, becoming the ISV of choice

21:06

should be your North Star.

21:09

It should be your North Star and how

21:11

we get a better relationship with these cloud AEs

21:13

and telling you, if you can have a direct connection

21:16

to how they get paid, that's what we're going to talk about.

21:19

So let's deep dive into our reasoning behind

21:22

bring your own cloud and what we're

21:24

bringing to the market with Nuon and how we can help you get there.

21:27

I'll kick it over to you, John.

21:28

Awesome.

21:33

So bring your own cloud is essentially

21:36

like this emerging employment strategy.

21:38

And the way I think about it is we've

21:41

lived in a world of SaaS for the last 20 years.

21:43

The default way you consume software

21:45

is you go to somebody's website, you sign up,

21:49

the products fully managed.

21:50

And then for the enterprise side,

21:52

you see this self-hosted paradigm where

21:54

it's in the customer's account.

21:56

Bring your own cloud is really a hybrid of the two,

21:58

where you have the look and feel of the SaaS,

22:01

it's easy to use, quick to install.

22:03

Patrick, you mentioned getting into the customer's account

22:07

quickly before and then spinning off the software quickly.

22:10

BYOC brings that, but then it has all the isolation,

22:14

integrations, and the data privacy challenges met

22:18

by running in the customer's cloud account.

22:20

And so you see these different employment strategies

22:22

kind of emerging where it's not only

22:24

in a customer's cloud account, it can be deployed

22:27

inside of the customer's virtual network on the cloud

22:30

and integrate with more systems.

22:32

And then you start to think about like, okay, with AI,

22:34

what's happening, everyone's kind of like,

22:36

seeing all these new capabilities and like curious about

22:39

like what happens with my data.

22:42

And what we're seeing from our customers are that

22:46

ISVs are actually getting demanded to run

22:48

in the customer's account even earlier than ever before.

22:51

We're seeing companies come to us and say,

22:53

hey, we're trying to sell to a series a startup,

22:57

our AI products, and they're demanding this

22:59

in their own cloud account.

23:01

And that has this kind of interesting network effects

23:03

because all of the public clouds have these AEs

23:06

who are working with startups, mid-market enterprise,

23:10

and they're on a consumption side.

23:12

So those customers are saying,

23:14

hey, we wanted a data streaming solution.

23:16

Hey, we wanted analytics product,

23:18

but we wanted an art account, what do you recommend?

23:21

And that's really where BYOC comes in.

23:24

It's really this like SaaS like experience,

23:27

but it actually satisfies all those requirements

23:29

for those customers and really needs the needs of both,

23:34

even the ISV, being able to have the one deployment model,

23:38

but also the customer's privacy and security concerns.

23:44

>> Amazing.

23:45

And so given that we've, you know,

23:48

we'll continue to see these privacy concerns

23:50

from customers, right, as the adoption of AI increases.

23:55

And BYOC to John's point completely alleviates

23:58

those customer privacy concerns

24:00

and aligns with their security postures, right?

24:03

And moreover, in terms of like addressing cloud consumption

24:06

in their tenant, that again, directly impacts

24:11

the cloud AEs revenue goals to help them retire quota.

24:15

And we do see a very strategic play here

24:19

where not only can you differentiate yourself

24:21

in the marketplace by unlocking this new product capability

24:25

with your existing products,

24:27

but also increase those demands for private offers.

24:31

So like again, those custom use cases where maybe

24:34

the customer doesn't want to do the traditional,

24:36

you know, click a button here

24:38

and we're deploying your solution on the public offering.

24:42

We do see a world where BYOC will continue

24:46

to create demand for those private offerings.

24:50

And so let's just dive a little bit deeper.

24:53

John, you can for sure like take this slide,

24:56

but I'll sort of give it at a high level

24:59

to Patrick's point earlier, right?

25:02

It's ISV tenant consumption versus sort of customer

25:06

tenant consumption.

25:08

We're seeing this shift in real time here at Nuon

25:11

where multi-tenant SaaS applications are moving

25:15

to a BYOC SaaS world because of these security concerns

25:20

and other concerns that customers have brought

25:23

to our vendors.

25:24

And so when you think about multi-tenant SaaS, right,

25:27

the compute data storage, the networking is hosted

25:30

in the customer's cloud, in your cloud account,

25:32

that means you're on the hook for data privacy security,

25:35

everything is controlled by you, right?

25:38

And then again, that consumption lives in your account.

25:42

And in a BYOC world, that consumption moves completely

25:46

in the customer's cloud account.

25:48

But John, you wanna add anything to this?

25:50

- No, I was just gonna say, I mean,

25:51

I love the point Patrick made it around like,

25:54

in this BYOC world, you go from being this large ISV

25:59

with one account, you're working with 180,

26:02

whereas in the bring your own cloud deployment option,

26:04

if you're offering that, you suddenly are driving consumption

26:08

for hundreds of cloud AEs, right?

26:10

Because you're actually moving your cloud spend

26:12

from your account and the customer's account.

26:15

And it's actually like genius, to be honest,

26:17

and maybe I'm a little biased here,

26:18

but like the way I think about it is as an ISV,

26:21

if you have locked this capability,

26:23

A you remove the sort of, you know,

26:25

your whole cloud spend story,

26:27

so you're not paying the clouds.

26:28

But then you get all this credit from all these AEs

26:30

who are then selling your product

26:32

and you're unlocking capabilities for their customers.

26:35

And so it's no longer the sort of drive of like,

26:38

"Hey, we need to be the next Netflix."

26:40

But hey, we're actually gonna, we're gonna grow

26:42

and we're gonna help all of our AEs

26:45

that all of our customers AEs drive consumption.

26:49

And I think, you know, what you see is really this like,

26:52

you know, aligning incentives where it's actually more secure

26:55

for the customer, there's more capabilities

26:57

with the right infrastructure in place,

26:58

it's easier for the ISV.

27:01

And then with the kind of concept of private offers,

27:03

you don't have to take your enterprise deals

27:05

and do them custom, you can actually drive them

27:07

through the marketplace and it's really like a win-win.

27:10

- Yeah, and I just wanna add a couple of things here.

27:15

When you do move to a BYOC,

27:19

your customer will be able to,

27:23

if they have a committed spend contract

27:25

with that cloud provider

27:27

and they purchase it through the marketplace,

27:30

they'll be able to get that initial purchase

27:33

to be deprecated against their commitment.

27:37

But also in a BYOC, now the ongoing consumption

27:41

of using that product in their environment

27:45

will also help them burn down more and more

27:49

of their commitment every month.

27:51

Where in a multi-tenant SaaS,

27:53

they only get that initial purchase

27:57

as a burn down against their commitment.

27:59

And then the ongoing consumption is happening

28:01

over in the ISV tenant.

28:03

So when you do move over to a BYOC,

28:06

your customer will be able to continue

28:09

to burn down their commitment as well.

28:12

Now, I will tell you, in the beginning of like,

28:16

I've been with Coastal for a long time.

28:18

And in the beginning, there were a lot of ISVs

28:21

that started out as BYOC.

28:24

And then there was this shift to do multi-tenant

28:26

and to run it in your own ISV environment.

28:30

And now we're seeing another shift again,

28:33

back to BYOC for all the right reasons

28:36

around security and compliance.

28:38

But your AEs in these, with the cloud, the cloud AEs,

28:43

they have been burned in the past

28:48

with helping ISV is sell their solution.

28:52

And then because it's BYOC, it didn't land

28:55

in that cloud provider's environment

28:58

and they didn't get the ongoing consumption.

29:01

And that's what everybody wants.

29:03

Yes, it's great to have that initial win,

29:05

but what they really want is the ongoing consumption.

29:09

And they want that guarantee of the ongoing consumption.

29:13

So they move towards these multi-tenant SAS ISVs

29:17

because it was like, great, guaranteed consumption.

29:19

I know when I sell this ISV solution,

29:21

it's gonna run in my cloud.

29:23

One of the great things about noon

29:25

is that they help you convert your app

29:29

and ensure that it's running in that cloud provider's environment.

29:33

So now you get the best of both worlds.

29:36

You get the BYOC capabilities

29:39

and the assurance that it's going to happen in that cloud

29:42

because the app has been architect and designed for that cloud

29:47

because you will need as you go to co-sau

29:51

with the cloud sellers and you tell them your BYOC,

29:55

you need to be ready to tell them, don't worry,

29:59

our product will deploy in your cloud

30:01

and it will drive consumption

30:03

because there's this history,

30:06

they've been burned in the past

30:08

and they're a little bit reserved when it comes to BYOC.

30:13

But BYOC is definitely getting that momentum.

30:17

Just know that you should give them that reassurance that,

30:21

yup, we're gonna drive this consumption.

30:23

Here's what it looks like and yes,

30:25

it is going to be in your cloud environment.

30:28

Don't be worried when you see BYOC.

30:31

- Well, I think there's an interesting thing there too,

30:34

which we haven't really talked about that much in this call,

30:36

which is like time kills all deals, right?

30:38

And if you're combining this idea of bring your own cloud

30:41

and leading with bring your own cloud

30:42

as well as the marketplace,

30:44

you're gonna keep the old velocity

30:46

as you're going through the sales process.

30:48

Something that we see all the time

30:49

is our customers, the ISVs,

30:51

maybe they'll start with like a POC on their SaaS product,

30:55

the host and SaaS products.

30:57

And then the idea is like,

30:58

hey, we're gonna like let the customer try the products

31:00

and maybe, maybe or maybe not,

31:02

it's the marketplace listing.

31:04

And then going into production is,

31:06

oh, we're gonna actually deploy into their cloud account.

31:08

And there's so many sort of pitfalls in that sort of approach

31:11

because for Keramik and Take-A-Law,

31:13

and there can be surprises when you move

31:14

to the customer's account trying to get into production.

31:18

And the thing I always kind of talk about is like,

31:20

getting into production with your customer

31:21

is the most important part of landing the deal

31:25

and building a long-term relationship with the customer.

31:28

And by sort of driving with,

31:30

hey, you can pay for us with your existing marketplace

31:34

or sorry, your existing cloud contract and your spend,

31:37

but also we're gonna start by being in your account

31:39

and we're still gonna give you that SaaS experience.

31:42

It's kind of like doubling the benefits

31:43

of moving the deal along.

31:45

And some of the things that we see in the market

31:48

is actually when customers do that,

31:50

their whole procurement process is completely different.

31:52

It's like, instead of going through weeks and weeks

31:55

of sharing different docs

31:57

and like what they're kind of doing internally,

31:58

it's like, okay, like you check this box

32:00

and like, this is how we want the product to play.

32:02

Oh, we can also pay.

32:03

That also meets other people in our organization

32:06

who have access to AWS

32:07

can actually start bringing in new products and whatnot.

32:09

So it's really like an interesting combination.

32:12

And I think the two together,

32:14

you really see that velocity picking up,

32:16

especially with any product that is deemed sensitive,

32:20

critical, if you're selling critical business software,

32:23

touching data, anything touching PAI

32:25

or anything that's leveraging AI,

32:28

it's at table stakes at this point.

32:31

- Yeah.

32:32

And like all that consumption's happening in their tenant,

32:35

even from like the POC to production,

32:39

like it's all happening in that customer's tenant

32:43

and they're the ones driving that consumption.

32:46

Or they're getting credit for like all that consumption,

32:48

I should say.

32:49

- Absolutely.

32:51

- And so you have like hundreds of these AEs

32:54

who are thinking about your product and like,

32:56

hey, you're the data streamer product

32:58

that I'm gonna recommend,

32:59

you're the LOM sort of off-product I can recommend

33:02

because you've already powered BYOC workloads

33:05

and during a consumption for my customers.

33:07

It's just a no-brainer when you start

33:08

to kind of like combine the two.

33:10

- Sweet. Well, I'm sure everyone here is thinking,

33:15

well, this is great, BYOC,

33:16

but how do I actually create an offering for my customers?

33:19

So good news, we've got the answers.

33:22

John, do you wanna jump in and let us all know

33:23

how that's possible?

33:25

- Yeah, totally.

33:26

So, you know, here at DoOn,

33:27

we're building a platform that enables any ISD

33:32

to package their application and create,

33:35

essentially a BYOC offering.

33:37

And so what that does is you come to DoOn,

33:39

we give you the tools to package your app,

33:41

deploy it in your customer's account,

33:43

and then manage the day two operations.

33:45

And so that can live alongside your marketplace listing,

33:48

you can list it as a SAS,

33:50

you can create credit offers

33:51

and deliver your product directly in the customer's account.

33:55

And it's not hosted or self-hosted,

33:57

it's actually a managed version of your products

34:00

that's deployed in the customer's AWS account

34:02

tied to their contract,

34:04

their spend, driving consumption.

34:06

And at the same time, your development team

34:08

is gonna be able to build,

34:09

deploy and operate the product just like it's a SAS.

34:12

It's really a marriage of the two.

34:13

It's the self-hosted isolation and privacy

34:16

and security with the sort of SAS experience

34:18

that everyone knows most.

34:20

- What are, can we go back to that slide, John?

34:29

I would love for you to just very like a high level,

34:34

talk about like some of the challenges that we've seen

34:38

from teams trying to like do this themselves, right?

34:42

They have a demand from the customer.

34:44

Usually it works where the sales team

34:46

comes to the engineering team,

34:48

they go to engineering team or their product team,

34:50

they're like, look, our customer need our product

34:51

in their cloud account.

34:53

Like, how can we do this in a record time

34:57

to like actually close this customer?

34:59

And we think about these three pillars,

35:01

lifting and shifting and existing product,

35:04

like talk about like some of the challenges

35:06

that we've heard over the last couple of years.

35:09

- I mean, I think the simple one is,

35:10

if you're doing this yourself, unless you have

35:13

the expertise in house, you have a large cloud

35:16

sort of infrastructure team

35:18

who's building this automation,

35:19

and you're essentially like building a second products

35:21

to automate this, you turn into a services business.

35:24

And so one of the things that we see is as customers,

35:29

start to ask for BYOC, the ISD will say,

35:32

hey, we'll do one or two.

35:33

And suddenly it's like, hey, we can only do that

35:35

if we're, it's a 500K contract

35:38

because we have to dedicate resources.

35:41

And really like the idea there is it's actually manually deployed.

35:45

And so that also kind of creates problems around,

35:48

you know, suddenly you have like five or 10 different

35:50

environments every customer looks different.

35:52

Your team is sort of splitting resources,

35:54

manually managing these environments,

35:56

and then meeting the requirements of the customer.

35:59

So each customer is gonna come to you

36:00

and ask for different release update cycles,

36:03

maybe different requirements, maybe they wanna run

36:05

in their own VPC or a network.

36:07

And so what happens is you kind of turn into this

36:09

services business, whereas, you know,

36:12

it suddenly goes from, hey, we're unlocking

36:14

like a couple of customers to,

36:16

hey, like half of our team is split managing this

36:18

because it's so complicated and there's,

36:20

there's so many different requirements.

36:22

And I think, you know, really like our philosophy was like,

36:24

we wanted to give you the building blocks

36:26

and essentially the little blocks to kind of offer this

36:29

and meet the customer update requirements,

36:31

deploying to their existing networks,

36:33

create full sort of managed POCs,

36:35

without having to go and spend, you know,

36:37

months or years building out the automation to do it yourself.

36:41

- Amazing.

36:46

You wanna say something, man?

36:48

- I was just gonna say like, we feel similar at tackle,

36:51

like, yes, you could build it,

36:53

but then once you build it, you've gotta maintain it.

36:56

You've gotta continue to stay on top of it and evolve it

37:01

and keep up with the pace of, you know,

37:03

whatever that industry is that you're in.

37:05

And so could you do it?

37:07

Sure.

37:08

Should you do it?

37:10

You know, is another question.

37:12

- And I think it's also, you know,

37:15

the same thing with driving velocity in your sales cycle.

37:20

If your sales process is slow, you're gonna lose revenue.

37:23

If your product velocity is slow,

37:24

you're gonna lose market share, mind share, et cetera.

37:28

And one of the things that we've consistently heard,

37:30

especially from companies who are building

37:33

a product, state of products, analytics products,

37:35

anything like that, they're like, you know,

37:37

look, like we'd have to go hire a new team

37:39

to bring these capabilities in house.

37:41

And, you know, that's also kind of the thing.

37:43

And naturally building a company focuses

37:45

the most important thing in it.

37:47

The most cherished part, right?

37:48

And you can only do so many things.

37:50

And yeah, I'm happy to share a little bit more here,

37:54

you know, a little bit of the workflow,

37:55

like generally customers coming to Newon

37:57

have one or two end customers who are ready

38:01

to be deployed into their own account.

38:03

And they might or might not have different requirements.

38:06

So things that we hear is,

38:07

hey, I want you to deploy into my existing BBC.

38:10

Hey, I want you to do a POC and a sub account

38:14

where we can kind of isolate things

38:15

and spin up the entire application.

38:18

Really, like what that means is a customer

38:21

is somewhere in the deal cycle.

38:23

They're excited about the software.

38:24

They're talking to you, but they're saying,

38:26

hey, like you need to meet a couple of requirements.

38:28

You need to meet our DevSecOps requirements

38:30

or integration requirements to touch our data.

38:34

And then suddenly it's like, you know,

38:35

the ISD kind of goes into sprint mode.

38:38

It's like, well, how can we make this happen?

38:40

And so that's really when the vendors are finding Newon,

38:44

they're coming to Newon, they're like,

38:45

hey, we need to turn something around

38:46

and they have existing tooling,

38:48

whether it's Terraform, hell,

38:49

like kind of this cloud automation tooling.

38:51

And then what we do is we let them package the product

38:54

and create like a nice little installer experience

38:56

they can share with the customer.

38:58

That can be tied into their SaaS marketplace listing.

39:00

And then from there, that's when everything kind of starts,

39:03

the real challenge is start,

39:04

which is like, how do you make sure it's actually working?

39:08

You know, the last thing you want is to be the ISD

39:10

who's driving a bunch of consumption

39:12

in the customer's account,

39:13

but there's no usage in the product's not working correctly.

39:16

And really that's where like a lot of our value prop comes in

39:19

and we give you the tools to make it feel like SaaS.

39:21

And you know, that's ultimately like one of the things

39:25

that I think is always the friction between the BYOC

39:28

and the SaaS experiences without the right tooling,

39:31

it's really hard to make sure that your product's working

39:34

in a customer's account where you don't have access to it.

39:37

And that's why so many ISDs try to push for the sort

39:40

of SaaS offering because it's just easier for the ISD.

39:45

The ISD can always, you know, jump into their AWS account,

39:48

look around and see what's going on.

39:50

Whereas really like the day to the .3 and .4 on this side

39:55

is like really where we see our value prop coming in

39:57

as you know, you're driving consumption,

39:59

you have an awesome product like make sure it works

40:01

and make sure your updates and you know,

40:04

rollouts and all that is working.

40:05

- Hey John, we have a question that I think is actually

40:09

like great timing.

40:10

Are there any application type limitations

40:13

for nuanced BYOC?

40:15

In other words, does it need to be containerized applications?

40:19

- No, we've spent a long time kind of thinking about this

40:25

and you know, one of the things that we did in one of fours

40:27

is like architecture patterns on our customers.

40:29

So today we have customers on AWS

40:32

as you're everything from serverless to Kubernetes,

40:36

kind of pulling in cloud services, you know, using like

40:39

existing like RDS databases, things like that.

40:42

We even have customers who are using like

40:43

additional critical clouds.

40:46

And so like that's really, you know,

40:47

where we kind of like fit in is like

40:49

if you have any automation at all,

40:52

or you have like really simple apps

40:53

that we can support you pretty quickly.

40:55

- Yeah.

40:56

And when you say private SAS equals BYOC,

40:59

are these different?

41:01

Are those terms used interchangeably?

41:03

We also had that question.

41:05

I know we live in a world of acronyms

41:08

and in our text based, we all have our own language

41:12

and sometimes like we say things and like

41:15

we have multiple words that say this,

41:17

that mean the same thing.

41:19

- Yeah, I mean, this is definitely something

41:21

that we're working hard to do.

41:23

We've been chatting with some of the larger companies

41:26

who offer this and BYOC is kind of the standard term,

41:30

but a lot of things that we hear

41:32

and interchangeably private SAS is pretty much

41:35

the same thing, cloud, prem, customer cloud,

41:39

even self hosted, even on premise,

41:41

depending upon the context.

41:43

And so really like, you know, our thinking was

41:46

with bring your own cloud and some of the larger companies

41:48

who offer this, it's just a lot clearer.

41:51

Private SAS is using at least,

41:54

and it on premise, you kind of--

41:57

- I think that the second general has gotten confusing, right?

41:59

It's like, it's SAS and then you've got to go,

42:02

okay, is it SAS like running in the ISV tenant

42:06

or SAS that can run in the customer's tenant?

42:09

And getting clean on like where the SAS is running,

42:16

I think is important and back like early on,

42:21

I feel like I'm dating myself,

42:22

but back early on in this CoSAL experience,

42:25

we saw the interchange of BYOC with BYOL.

42:30

It was like, bring your own cloud is the same

42:33

as like bring your own license, like buy our software

42:37

and then deploy it in your environment

42:39

is essentially like what we saw BYOC and BYOL,

42:44

being used interchangeably.

42:47

- Yeah, and I think the other thing that's interesting now

42:50

is like you kind of have the standardization

42:53

of like all the operational best practices

42:56

and like deploying the best practices of SAS.

42:58

As an industry, we figured that out.

43:00

And so now you're starting to see those best practices

43:02

being combined with the isolation and the data privacy

43:06

of like self-hosted, and that's really where BYOC comes in.

43:09

It's like it, actually the experience that I always kind

43:12

of like share and like think about is like,

43:14

you should be able to go to Slack or whatever, chat app,

43:17

sign up on the website and actually have it

43:19

in your cloud account.

43:21

And it should look and feel just like you're using

43:23

an existing product.

43:24

And if we do our jobs right, that's what will make happen.

43:28

But yeah.

43:29

- Awesome.

43:32

- Great. Well, thanks for those answered questions.

43:34

I know we're at time, but I just want to make sure

43:35

we covered everything we needed to on.

43:37

It looked like, I'm gonna pull up this question

43:40

on the screen.

43:41

Did this one get answered while in my chat?

43:42

Or did you all want to chime in a little bit more

43:44

in this one?

43:44

- I answered Mark's question in the chat.

43:46

- Okay, awesome.

43:47

- Anything else you want to unpack with this question

43:49

in the chat or are we all good?

43:51

- I think we also hit this one in the chat.

43:54

- We got a new one right here.

43:57

- Okay.

43:57

- From Gary, I have an ISP chooses to go to BYOC

44:00

from new one.

44:01

Is it easier to get products approved

44:02

for cloud marketplace listings?

44:04

- So let's far we've seen this and still early.

44:08

And I think a lot of it depends on how far along

44:11

and like what type of production customers

44:14

the ISP has gone through it and what those

44:15

layman options are.

44:17

I think generally if you are doing a BYOC offering

44:20

with new one, we recommend at least two or three

44:22

different deployment options to meet different needs.

44:25

And specifically if you can run into customers network

44:28

and kind of support different hub and spoke

44:31

that work configurations and things like that,

44:32

I think it's easier.

44:33

And also easier to land those clients.

44:35

- Love it.

44:38

All right, well, we're at time.

44:40

So one, one more time, huge thank you,

44:42

Dray, John, Erin, Patrick for sharing your insights today.

44:46

Of course, thanks to all of you for attending,

44:48

sharing your excellent comments and questions

44:49

and contributions.

44:50

So be on the lookout for the webinar recording

44:52

in your inbox in the next 24 hours.

44:55

There's a button there.

44:56

If you want to chat with someone on the tackle team

44:57

to learn more about cloud GTM and how to launch

45:00

and scale your cloud GTM strategy, you can click there,

45:03

but yeah, be on the lookout for the recording

45:05

in your inbox and a blog post from new one.

45:07

So in the meantime, have a great day

45:09

and we'll see you all next time.

45:12

Bye everyone.

45:13

(upbeat music)

45:16

(upbeat music)

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