Oh I don't think you've failed at all. Sounds very normal to me.
Here is what I did. I only ever put formula and/or milk in the bottle and only water in the sippy (I didn't introduce juice until they caught on to the sippy, just got lucky they liked water).
Leave the sippy of water out and available all day long, not just at meal times. Yes, he might play with it at first, might make some mess, but it is all in learning.
The sippy did not replace the bottle until after 1 year old. So you're good. I know some Pediatricians will say get rid of it at 1, but you have time. With both of my children they weaned themselves by 19 months and I never had a fight. By 19 months we were down to the bed time bottle and that was all. So it happens and its a transition and it will be OK.
Try leaving the water sippy out all day. And try limiting the bottle to only milk. All the advice I have so far, looking forward to hearing others, good luck !!!