B2B Tech Talk with Ingram Micro
B2B Tech Talk with Ingram Micro

Episode · 3 years ago

Cisco MSLA | Cisco Series

ABOUT THIS EPISODE

We all can see that technology is constantly changing. 

Hardware and software alike are continually morphing to better serve enterprises and the individual. 

It only makes sense that pricing models adjust to this ever-evolving environment. 

Paul Sibick, Channel Account Specialist at Ingram Micro for Cisco Security, and Jan Engelbrecht, Director of Strategy and Planning at the Offer Monetization Office for Cisco, sit down to answer all our questions on managed service license agreements (MSLA)

Follow Paul Sibick and Jan Engelbrecht on LinkedIn. 

Follow us on Twitter @IngramTechSol #B2BTechTalk

So the way it changes is the support with the recurring revenue opportunities is that it allows the clients to be more flexible with what their services that they're getting and the services that they're providing. You're listening to be tob tech talk with Ingram Micros the place to learn about new technology and technological advances before they become mainstream. This is this Cisco addition taking your business a level up. Let's get into it. Welcome to be tob tech talk with Ingram micro. I'm your host, Carrie Roberts, and this is part of our Cisco addition, with our guests today being a Jan Angle Breck, the director of strategy and planning with Cisco, and Paul Civic, the channel account specialist with Ingram Micro. Welcome, Jan and Paul. So thrilled to have you here today. Thank you for having me. Thanks. So our topic today is about how...

...companies can stay flexible in a changing market, and jam will start with you. Can you give some examples of what you've seen in the past few years of how the technology industry is changing? Yeah, thank you. Be One of the primary changes that I see occurring in the market place today is enterprises are no longer terribly interested in being their own it shops all things it for themselves. They're looking for ways to focus on their core competencies that make them money and allow other experts to provide their security services or the networking services or their IT infrastructure. So one of the primary things I see happening in technology is that shift to wanting to outsource more of their I t shop so they can spend more of their resources in what they do best, their core competencies. And maybe an ancillary to that is, you know, maybe the more...

...things change, the more they stay the same. Hardware and software are continuing to evolve. Hardware is becoming less and less expensive as technology advances. Software has a tendency to become more expensive because of the IP. So more and more entities are shifting to a software focus and a recurring value to their customers more than just building new and more eloquent hardware. And Paul, can you dive into this a little bit more? You know, how does this change support reoccurring revenue opportunities? YEA, so the way it changes is the support with the recurring revenue opportunities is that it allows the clients to be more flexible with what their services that they're getting and the services that they're providing. That way they can tailor to exactly what environment they want to create for the air clients. And how is this kind of similar to maybe how things like Netflix...

...or Hulu does it? Yeah, great comparison and and it very analogous to the way those corporations are set up, where that you pays, you go for the service that providing. Their providing those extra add on services that you can have a leak heart to what their primary sin description is that you're paying for and again, the flexibility of being able to turn on and turn off your subscription whenever you'd like add those, I lack heart items whenever you'd like. That way you're getting exactly what you need, when you need it and using only what you want, which I mean I think at this point that's something everybody wants. Nobody wants to pay for something they're not going to use and people want more control of the things they want and when they want it. And I know that Cisco just launched a program recently called MSLA Jan. Can you describe, you know a little bit about what that is and how it's supporting the changes that you were just talking about. Yeah, you bet...

...so, to kind of expand on what you and Paul we're talking about, there is a need to have an offering, whether it's Netflix or Hulu or CISCO, to be quick to market. How do you reduce the time to market, increase the profitability and increase the efficiencies in the infrastructure that you're building or the baseline of your product sets? And so, with that, the MSLA ON CISCO SIDE is a way for entities to no longer have to buy everything up front and the large capital expenditures or long term commitments for term licenses. It's a model where you pay for what you use after you've used it. It's a utility license format. It's called the manage service license agreement and it allows service providers to offer to their clients, the millions and millions of entities that are looking to reduce their it capital expenditures and move those efficiencies to...

...experts in the field, man and service writers. It allows them to create that utility version of a product offering where they only pay for what they use after they use it. No more financial analysis paralysis or large capital expenditures for perpetual or term licenses up front, and was this something Jan that Cisco was hearing from a lot of their clients that that's what they wanted, or was it something that Cisco kind of realize what was happening when you see companies like Netflix and Hulo doing the same thing? Yeah, it's certainly in the trend space where we have many, many clients who are looking to go to manage service providers for their offerings and those men in service for there's have to be able to get quick to market and efficiencies into their businesses, and so that utility play is definitely meeting the demands of the market place that Cisco has seen...

...for years, and that's a natural evolution of what companies like netflicks and Wholu are bringing around with the recurring value to change from again large, very historical software, large investments up front, to the page you go model and it's really not so much about recurring revenue as it is recurring value. The reason we like Netflix, the reason we like Hulu, is because we get that value every time we sign on, every time we watch another event. Same thing with the utility licensing in software. Entities like it because they only pay for what they use when they use it, the recurring value is there every month. They need it, they use it, they're very happy to pay for it. And, Paul, can you give us some details about what the benefits are in using this particular product? Yeah, definitely so with the MSLA program another thing that I'd like to mention that's a great feature is zero...

...cost to capital with actually using the product. So when the partner wants to use a different product within the program, there's no costs for them to be able to use that product until they've actively put it into production and it's generating revenue. So, contrary to the capital expense at partners would have to put up for an opportunity when they'd like to provide those provide that product to one of their client they get to cut out that whole process of needing to come up with the pedal for that and just pay that monthly fee for whatever service it is that they're using. And is there anything else, Don that you want to add to this as some of the benefits of using the MSLA program maybe a way to summarize it is there multiple ways to acquire the baseline infrastructure than an entity needs to offer services and one can acquire a capital expenditure type...

...perpetual license or a term license that the your locks you into a set of features for a set amount of time, or one can offer for the utility licensing or the managed service license agreement. So I guess the key is it is just an option. We're not changing the way you have to acquire licenses. You can still buy them in a capital expenditure like format and perpetual or term licenses, but it's an option. So if it helps you increase your profitability, if it helps you decrease your time to market, if it helps you increase the effectiveness of your offerings, whether they be security or network offerings, if it helps you in bringing those to market quicker more profitly, that's the option that we would like to present to the industry to allow. So we're not changing how you have to acquire we're just adding options so that you...

...can buy only what you need and pay for it after you've used it. Now for each of you personally, Paul will start with you. Where do you see technology going within the next year? Well, so, for where technology is going, I think I think the real question is really how is technology offered? Right as we can see in what Jen was just explaining about MSLA being another way that you acquire technology, product and services. I think will really begin to see this more and more and become more prevalent in the mark than the industry, that other vendors will be offering these types of this type of way to transact where it allows for them to be a lot more flexible. They know they're pricing up front. They don't need to come back to distribution or to Cisco or to the manufacture to get deals approved, to get pricing just so they can go back to their clients and get them the pricing. They know that upfront when they're out there encountering their clients and figuring...

...out which services they need and then being able to easily deploy that. As you can see Cisco being able to offer that. Now you'll see a lot more organizations begin to offer the model as well. And Jim, what about yourself personally? Where do you see technology going within the next year? I think the key here is for the listeners is to recognize how do they want to acquire their services? Are they going to continue to be their own it shops, or are the trending to continue where they want to have an expert be their security services provider or an expert be their network provider. So the for me, the trends in the industry are going to continue to be enterprises want to offload those responsibilities for run of the mill security and network offerings. They want experts to come in and do that and that's going to continue.

And the MSLA and other licensing models that make manage service providers more efficient, those are going to continue to increase and the market share there is going to grow rapidly in the next three years. Well. Thank you so much to both of you. If people want to connect with either of you, either personally or to learn more about MSLA with Cisco, where can they do that? Paul, will start with you. Yes, be contacted at CISCO MSLA at Ingram microcom, or you'll also have my linkedin tag at the bottom of the podcast link here. And Jan what about yourself? Love to hear from anyone interested in how they can become more efficient in the market place. My linkedin will be provided in the show notes. You can go to CISCOECOM, of course. Also there's a link to our manage service proriter landing page for...

...managed service writers in the show notes. So very, very happy to hear from anyone who had any additional questions. Well, thank you to both of you for being here. We greatly appreciate your insight and being a part of this show. Thank you so much. Thank you. If you like this episode or have a question, join the discussion on twitter at Ingram Tex soul with the Hashtag be tob tech talk. To learn more about MSLA, you can contact Paul Civic at Cisco, Msla at Ingram microcom or at his link in the show notes. Thank you for tuning in and subscribing to be to be tech talk with Ingram micro. You've been listening to bb tech talk with Ingram Micro, Cisco addition, taking your business a level up. Hosted by Carrie Roberts, bb tech talk is a joint production by sweet fish media and Ingram micro. Ingram micro production handled by Laura Perton and Christine Fan. To not miss an episode, subscribe today in your favorite podcast platform.

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