AspenTech Indirect Strategy

Building a sustainable growth business

12-July-2014

Alvaro Lopez- Indirect Channels

© 2013 Aspen Technology, Inc. All rights reserved

 Indirect/Channels Business 101

Process
Industry
Customers

Core Growth
Direct/SME Indirect

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 Core vs. Growth Markets

Core Markets Growth Markets

 Key Verticals  Key Verticals

– Engineering & Construction – Metals & Mining
– Upstream Oil & Gas – Power & Utilities
– Downstream (Refining) – Consumer Goods
– Chemicals – Pulp & Paper
– Polymers  Use regional partners &
– Specialty Chem Channel Sales Directors
– Pharmaceuticals
 Excludes Named Accounts
 Call using Direct Sales force
or SME team  Focused on:
– New Logos
 Includes ‘Named Accounts’ – Perp to Term conversions
 Focused on Growth within – Growth in existing accounts
Top 363 accounts

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 Direct Business vs. Indirect Business

Direct/SME Business Indirect/Channels Business

 Focus on “core markets” and  Focus on Growth markets

Pharma only– though Partners may
have core business customers
 Direct sales team only sells
AT products and services  Partner organizations sell
products from multiple vendors
 SAMs and BCs carry license
and services targets  CSDs only compensated on
– Services revenue can be license revenue
significant – Partners very focused on
services revenue
 Complications of Named
Accounts, Global Accounts  Constantly vigilant with
and Multi-Region Accounts account management

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 Different Types of Partners

Direct Implementation Services Indirect

Partner (ISP)

 Used only in  Must buy software  Used only in

Named Named
 Used globally
Geographies Geographies
 Does not allow for
 Provides a local  Sells License &
license sales
license transaction Services
 Provides services
 Calls only on Core  Calls only on
only
Markets Growth Markets
 Used in any market
 Pay an Annual  Pays an Annual
Program fee  Aspen leads license Program fee
engagement
 Aspen leads the  Partner leads sales
sales engagement  Managed by engagement
Michele Triponey
 Managed by Mark  Managed by Greg
Holmes Howard

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 Indirect Channels
AspenTech Goals

 Build a business in adjacent process industries

– Without the investment to cover direct sales costs
 Increase New Logos
– New deals in these markets are pure growth
 Multiplicative effect from using the ‘right partners’
– Leverage partner sales org for faster penetration
 Educate partners in our solutions
– Expand their portfolio and investment in AT solutions
 Support partners in market development
– Develop pipeline to grow their business
 Start to move partners to GTLCV model
– Renewals are difficult without ‘skin in the game’

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 Markets
Indirect Channels Focus Areas

Metals, Minerals & Mining Power & Utilities

 Extraction, production &  Production & distribution of

refining of minerals (inc. Electric Power, Water, Gas for
metals, glass, cement) industrial or domestic use (inc.
Wind, Solar & Fuel Cells)
 Product Applicability:
– ENG  Product Applicability:
– MES – ENG
– APC (Power) – MES
– SCM (Steel Production) – APC

 Key Customers  Key Customers:

– Joy Global – Canal de Isabel
– Impala Platinum – Southern Company
– Anglo American – E-CL

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 Markets
Indirect Channels Focus Areas

Consumer Goods Pulp & Paper

 Production of ‘fast moving’  Production and distribution of

products at relatively low pulp, paper and packaging
cost for consumer markets grades to industry & consumers
(inc. F&B)
 Product Applicability:
 Product Applicability: – ENG
– ENG – MES
– MES – APC (Power, Kilns, Chemical)
– APC (Dryers & Ovens) – SCM
– SCM (Planning & Scheduling)
 Key Customers:
 Key Customers – Arauco
– Diageo (Guinness) – NewPage
– PM USA – Georgia Pacific
– Procter & Gamble

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Growth Markets
Market Leading Customers

Metals, Minerals & Mining Power & Utilities

Pulp & Paper Consumer Goods

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 Indirect Channels
AspenTech Needs

Partners who have:

 Ability to build markets in their geos
– Industry contacts & presence
 Capable sales organization
– Making calls, generating leads and following up on leads
 Marketing capabilities for ‘co-marketing’
– Building awareness & pipeline
 Implementation capabilities
– Generating customer success with AT solutions
 Existing customer successes
– Build success story portfolio for our markets

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Indirect Channels
Channel Sales Directors & Indirect Team

Dan Shunsuke
Dearwater Mark Kira
LDRs for NORAM: Threadgold
• TBH
• Brian Dano Eric
Li

Alvaro Lopez

Diane Asselin – Channel Sales Operations

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 Keys to Success
Our Partners in NORAM & LATAM

ENG
MES SCM
APC

ENG

ENG
MES
APC

ENG
MES
APC

ENG
MES
APC

ENG
ENG MES ENG
MES APC MES

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 Keys to Success
Our Partners in EURA

MES
IP.21 OEM
MES

ENG
ENG MES
MES

ENG
ENG MES
MES MES APC
APC

ENG
MES
APC

ENG
MES
APC
Recently Added:
• Gain – Netherlands
• Sidat – Czech Republic
• Systems OpEx – Egypt
• Albrecht Consulting - Austria

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 Keys to Success
Our Partners in APAC & Japan

ENG

ENG
ENG

ENG SCM
MES
APC

ENG
MES
ENG
MES MES
APC APC
MES
Recently Added: APC
SCM(?) ENG
• Optienergy – India MES
• HCL – India ENG SCM (?)
• AC&S - Taiwan MES
APC

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 Indirect Channels
CSD’s Growth Strategy

 Identify the ‘right partners’ for multiplicative impact

– Sales & marketing organization
– Services capabilities
– Growth aspirations
– Capabilities & contacts in ‘non-core’ markets

 Educate to capture mindshare

– Sales training on products
– Advancements in solutions for technical staff
– Keep updated on Aspen growth
– Include in key technical content (e.g. Champions)

 Pipeline Development for consistent performance

– Monitor & grow 5Q Pipeline across all geographies
– Lead generation activities to begin filling ‘empty regions’ (LATAM, NORAM)
– Develop marketing strategy to build momentum with partners

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 Indirect Channels
Summary

 Opportunity to sell horizontal products into growth markets

– Make no changes to products – partners adapt products w/
services
 Focused on new logos & growth
– Maintain & support existing customers
– Find new customers to build the portfolio
 Working on Success Stories/Case Studies
– Customer examples help partners sell
 Identify new partners in key geos
– Grow capability to deliver more licenses (NORAM, LATAM, APAC
& Japan)
 Develop LDRs for success in NORAM
– Opportunity to grow indirect business & expand knowledge

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 Thank you!

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