Adapting Your Business To The Cloud Paul Solski AIM International Karina Nielsen Celenia Software Cheryl Strege The Partner Marketing Group

Adapting Your Business To The CloudPaul SolskiAIM International

Karina NielsenCelenia Software

Cheryl StregeThe Partner Marketing Group

How will the cloud transform the software business?

AIM International ● Celenia Software ● The Partner Marketing Group

What’s different?

• Communization of software and IT services• Changes from the business of software to services• Transfers cost and risk to vendors• Actualizes application agility• Realizes solutions’ global reach


What stays the same?

The need to: • differentiate through value• deliver better business outcomes • offer solutions aligned with clients’ expectations• provide outstanding service


What is the impact on SI’s?


What’s different for SI’s?

• More packaged solutions

• More online purchasing

• Highly educated clients

• Declining product margins

• Increased competition

• Decreasing application complexity

• Declining Install/configure services• Monetize your IP• Demonstrate business acumen• Focus on business outcomes• Become a trusted adviser• Go vertical


What is the impact on ISV’s?


What’s different for ISV’s?• Customized solutions to client types

• Tailored pricing

• Repeatable implementations

• Increased global exposure

• Try & Buy acceptance

• Potential for long term annuities

• Appeals to more diverse clients• Appeals to price sensitive clients• Easier to implement• Potential to sell globally• Faster sales cycles• Focus on customer service

Software Services


How do the financials change?

How different are the financials?


SOFTWARE

Revenue:• Perpetual license purchase• 15%-20% annual maintenance

Partner Discounts:• Reseller: 25%-55% tiered discount based

on partner sales revenue• Referral: 10%-15% of sale

Channel Manager Compensation:• Base + 3%-8% Bonus

SERVICES

Revenue:• Subscription = (License +

Maintenance) /36 per month

Partner Discounts:• Reseller: 50% first year & 30% lifetime• Referral: 25% first year

Hunter:• Base + 5%-8% of first year contractFarmer:• Renewal: Base + 2%-5% of contract

How does an SI get there?

SI transformation:


PLAN BUILD MARKET

ReviewDEFINE YOUR DIFFERENTIATIONWhere have you succeeded most?How do you differentiate?

DEFINE THE TARGET CLIENTSWhich micro-verticals will become expert in?What specific business outcomes will you deliver?

PRODUCTIZE YOUR IP FOR MICRO-VERTICALSCode, methodologies, templates

PACKAGE THE SOLUTIONSPackage by client type, with Try & Buy, Standard, Professional, Enterprise versions. Seamless upgrades.Automated provisioning.

ESTABLISH HOSTING PARTNERSHIP

EFFECT WEB BASED SELLING & SUPPORTClient self-education, Self-qualificationOnline purchase, Self helpdesk

BUILD AN ONLINE BRANDTrusted advisor through social mediaTRY & BUY outreachContributions to online publicationsSEO & PPC

How does an ISV get there?


ISV transformation:


PLAN BUILD MARKET

ReviewDEFINE THE TARGET CLIENTSTarget micro-verticals, Company sizes, Geographies

DEFINE THE SOLUTIONSFunctionality & pricing by edition: Try & But, Standard, Professional, Enterprise

DEFINE THE BUSINESS MODELDirect, through Partners, on-line, hybrid. Financials. 3 Year business plan.

SOLUTION TRANSFORMATIONOptimize for SaaS.Build in dynamic configuration.Automated provisioning.

PACKAGE THE SOLUTIONSPackage by client type, with Try & Buy, Standard, Professional, Enterprise versions.

DEVELOP SaaS CAPABILITIESProvisioning & charging model.

EFFECT WEB BASED SELLING & SUPPORTClient self-education, Self-qualification, Online purchase, Self helpdesk

BUILD AN ONLINE BRANDTrusted advisor through social mediaTRY & BUY outreachContributions to online publicationsSEO & PPCExpand marketing reach globally.

We can help:PLAN BUILD MARKET

• New Opportunity Assessment

• Readiness Assessment

• Business model workshop

• Partner program development

• Partner search and recruitment

BUSINESS

• Cloud solution assessment• Cloud Architectural design• Deployment • Testing• Maintenance & Upgrades

PRODUCT

• Strategic marketing plan development

• Social media campaigns• Online client education • Online client self-qualification• Building an online brand• Massively scaling market reach

MARKETING


How to get started?

Complimentary cloud readiness review:

• A two hour telephone based review of your current business model, product and marketing.

• Recommendations on how to transform each for the cloud. • A self-assessment questionnaire review and a report


Ask!• Paul Solski:

– [email protected]

– Cell. 425.208.5430

• Karina Nielsen: – [email protected]

– Cell. 678-538-8018

• Cheryl Strege: – [email protected]

– Tel. 605.574.9432


mailto:[email protected]



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Adapting Your Business To The Cloud Paul Solski AIM International Karina Nielsen Celenia Software Cheryl Strege The Partner Marketing Group