What strategic considerations do I need to make before a launch offer when moving from traditional software and hardware sales?

RomanZ

If I am a traditional provider of hardware and software transitioning to cloud provider, what strategic considerations do I need to take into account before I release a launch offer? What are some of my options?

Answer this Question

Answers

1 total
WaterstoneManagementGroup
Vote Up (11)

 

I'm not certain that the issue of existing customers fleeing is all that prevalent in the market.  Since most customers have already purchased the licenses and you already have an obligation to support them to the end of the product's life cycle, they are not going to worry or make a switch.

 

The issue is slightly different than that; If you are a traditional provider of hardware or software, what strategic considerations do you need to take into account before you release a launch offer?  What are your options?

 

There are three choices:

 

1.  You could build (or buy) a cloud specific offering targeted to a specific market that is distinct from your current market focus.  That new market could be a new customer segment, new use cases, or customers located in new countries.

 

2.  You could enhance your offering to deliver "value propostions" that customers associate with the cloud, i.e. I don't want to manage infrastructure, I want flexible pricing options, I want simple and easy to implement turnkey solutions, etc.  Companies are launching new managed service models to bridge the gap between being a pure on-premises provider vs. being a pure cloud provider.

 

3.  You could completely migrate your product portfolio towards a cloud based model,  This is clearly the most cathartic of shifts, and requires a very dramatic market rationale to justify the move, e.g. if you have a lower share of the market and want to completely disrupt the status quo, or if the new SaaS based competitors are rapidly stealing market share from your business.

 

Making any of the above shifts is not easy.  Each has associated operating model implications to sales and delivery, as well as corresponding economic model implications.

 

Dhaval Moogimane, Partner, Waterstone Management Group www.waterstonegroup.com  

 

Ask a question

Join Now or Sign In to ask a question.
Enterprises looking to cut costs of storing data can soon investigate a new service from Microsoft designed to save money by backing up information in the cloud.
Microsoft is continuing its dogfight with Salesforce.com in the customer relationship management software market with a new Dynamics CRM Online cloud service for U.S. government agencies.
Microsoft will revamp its Office 365 lineup for small and midsize businesses (SMBs), adding features, dropping prices and increasing the flexibility to mix and match them with Office 365 plans for enterprises and with stand-alone applications.
A new study finds that most top universities are now using Python to introduce students to programming
EMC's TwinStrata acquisition announced on Tuesday is just part of a bigger move to keep its venerable VMax storage platform up to date with large enterprises as they enter the cloud era.
Hybrid cloud management is really about managing the old and the new IT worlds.
Storage vendor EMC has scooped up cloud storage management company TwinStrata, the companies announced Tuesday.
Multisourcing -- parceling out the IT services portfolio among a number of vendors -- is the new normal in IT outsourcing.
Lifesize, a division of Logitech, has launched its Software-as-a-Service business-class video collaboration offering.
Global spending on public cloud services reached US$45.7 billion last year and will experience a 23 percent compound annual growth rate through 2018, according to analyst firm IDC.
Join us:
Facebook

Twitter

Pinterest

Tumblr

LinkedIn

Google+

randomness