With Microsoft’s recent WPC announcements, partners are asking themselves “Am I ready for the cloud?”
The cloud market is expected to expand 27% by 2015, and will be incredibly lucrative. It does, however, require a fundamental shift in the way your business operates. Don’t get left behind. …Read More
Are you ready for the Microsoft Worldwide Partner Conference?
With WPC just around the corner, many Partners are wondering what big changes are coming. With the highest attendance expected in years, the 2012 Microsoft WPC is a must-attend. The buzz word right now is cloud, so in honor of the “next big thing” in the ERP industry, we’ve put together some of our best cloud resources. Happy reading!
- How to Sell Cloud – 3 Critical Requirements
- Is Your Business Pro-active About Cloud Computing
- Developing Your Own IP In The Cloud: Part 1
- Developing Your Own IP In the Cloud: Part 2
- The Road Ahead: Looking at the Future of Cloud
- Monetization In The Cloud
- Forget Software As A Service, Think Of Software As A Utility
- How Deep is Your Hole? The Cloud and its Impact on Business
- Transitioning to a Cloud-based CRM or ERP Business
- There’s Risk In Those Clouds, But Not for Customers
- SI Revenue at Risk
- Are You Waiting for the Clouds to Part?
- Are Those Clouds in the Sky… or the Winds of Change? Part 1
- Are Those Clouds in the Sky… or the Winds of Change? Part 2
- Are You Cloud-Ready?
- The Forecast Calls for Cloud – Modify your Implementation Methodology to Adapt
- The Re-Architecting of the Channel
- How to Sell Cloud – 3 Critical Requirements
SALESWORKS – the unofficial sponsor of our Vancouver Canucks. Bring home the Stanley Cup boys!Read More
OK, I admit it; I’ve had my head in the clouds these last months.
Working on a number of projects for Microsoft, as well as with individual Partners, to help them prepare for the Cloud business opportunity. It’s become very clear to me that what’s needed is not simply an evolution of existing business practices, but a whole new approach, and business model.
To be sure, Partners do not want to (and shouldn’t) abandon their traditional “on-prem” business, but in order to safely transition their practices to meet Cloud demand, they will have to keep their eyes on a few key things. Most importantly:
Developing packaged IP.
- The Cloud customer demands complete solutions, out of the box. Full stop. They are extremely reluctant to ante up considerable dollars for customization or even configuration. This means services revenue will shrink. In effect, it will have to be replaced by packaged IP that rounds out the base functionality (whether ERP or CRM). The Partner who ignores this need, does so at their peril. They just won’t earn the margins required to stay in business.
Lowering installation costs.
- In part related to the reluctance to pony up for services, and the need for packaged IP, is the requirement that implementation processes be streamlined. In some cases, dramatically.
Lowering customer acquisition costs.
- Today, it costs a Partner anywhere from $20,000 to $30,000 to add a single “on-prem” customer. This is totally unaffordable in the Cloud, because there are no revenue “balloons” in the form of services or perpetual license sales. Both sales and marketing costs must be dramatically lower, in order for the Cloud to be profitable. Online demand generation and phone-based sales will rule in the Cloud.
Lowering ongoing delivery costs.
- Partners thinking of attempting to solve the technical issues associated with offering Cloud solutions, such as hosting, should think again. Hosting is a scale game. One the average Partner just can’t win. In practical terms, almost all of the time, this will mean outsourcing this part of the equation, and concentrating instead on adding customers, and building a subscriber base.
The good news is, for those who manage to do these things, the rewards can be very attractive. A subscription-based business model means a growing annuitized revenue stream. That means higher margins in the long run,
and a more saleable business, that commands higher multiples. Finally, an owner has a viable exit strategy, and can contemplate a comfortable retirement, when the time comes.
But this will require transitioning at least a part of the business to the Cloud. And make no mistake, demand will pull a Partner in this direction, ready or not.
So be ready…Read More
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Things are getting hairy at SALESWORKS. Since November 1, our Mo Bros have been growing mustaches for Movember, a fundraiser for Prostate Cancer Canada.Read More
It’s Movember and the SALESWORKS Mo Bros are cultivating their mustaches to raise awareness and funds to fight prostate cancer. By the end of the month, our office will be a mustachioed mecca, with an assortment of handlebars, fu manchus and Magnum P.I.s adorning our male team members’ upper lips.Read More
Brought to you by Cloud Computing
Living here in the Pacific Northwest I have more experience with clouds then I would like to really admit. They come in many shapes, sizes and intensities and each has their own individual purpose.
I look at the cloud front approaching our customers (VAR’s, ISV’s and SI’s) as the leading edge of a hurricane, a Category 5 Hurricane, something that can and will reshape this landscape from what it is now to something most cannot contemplate.Read More