|By Jiten Patil||
|August 9, 2012 05:45 AM EDT||
Today's information technology era is driven by software providers of all shapes and sizes. On the one hand we have big or very big providers who have established themselves through very sophisticated business models and ecosystem channels they have invested in for a long time. Tried and tested business processes enable them to stay ahead of the curve when responding to new customer demands - either through large investments in new innovations or because of the market reach they have established over time.
On the other hand, there are several small and medium independent software vendors (ISV) who are focusing on solving very specific problems or addressing niche segments differently. While these small and medium ISVs have created their own space, they are constantly challenged to keep building newer products or adding new features to stay in the game. Another challenge they face is to maintain their market position with changing tastes and a perpetually evolving genre of customers. Customer ‘stickiness' is never guaranteed and this poses a great threat to an ISV's revenue cycles in spite of good engineering capabilities.
ISVs get categorized into two different segments - each one facing different challenges. The first category is ISVs that are either startups, having nascent products or somewhat old players that are forced to redo their product portfolio significantly to deliver renascent products. The second category is ISVs that are establishing product/s but need to take that extra leap to survive through future disruptive market cycles or product revitalization. The game is on between ISVs with products that are either nascent / renascent or ISVs having products under a revitalization process.
For the first category of ISVs it's prudent for them to acquire or build a new mechanism to bring their nascent or renascent products to market without much delay. This mechanism means - apart from product engineering functions that ISVs invest in, the rest of the product functions are aligned and empowered for a quick go-to-market strategy. For example, it's crucial to pass through the ‘marketing - promotion - sales' cycle very quickly and also jump-start the order-to-cash cycle for quicker revenue realization helping back up incremental product releases.
Several non-engineering aspects directly become part of this type of ISV's critical path for success. A separate challenge in itself, this dependency is very much unavoidable. However, it is not surprising that ISVs that own the burden of pushing new ideas and features to market do not have the necessary technology or expertise to implement non-engineering mechanisms.
These functions are non-core to technology companies and add significant overhead and investments - to position and channel the products in the market correctly and in a timely fashion. This is where a custom cloud strategy can play a hydrant role in not only forming but also delivering fast-paced revenue generation cycle. After all, no matter how great a product or an idea is, they each need an equally nurturing environment to succeed. And this is why an ISV's cloud roadmap needs to be capable of creating a boost - to identify or create the right and conducive environment that a product needs for its success.
These ISVs first need to identify a distinguishable cloud roadmap that deviates from or complements traditional ways of implementing a go-to-market plan. The distinguishable factor here means the capability to add the extra speed, agility and ensuring the quality of the process. Another key aspect of the strategy should be to create the model that provides the direct link between the cost arbitrage benefits to the roadmap.
Besides using cloud services for relationship management, ISVs need to plan to leverage cloud tools to enable an end-to-end revenue-generation process. Cloud provides the avenues to roll out marketing campaigns for lead generation and brand building. ISVs need to invest in gaining the know-how of cloud service options so that they can better put them to use. Using social integration tools and platforms provided by cloud, ISVs can expedite go-to-market further. An important aspect of selecting such platforms is to ensure that these tools can be tailored for a business-specific scenario.
ISVs need to think about how cloud solutions can be used for packaging and distribution. Cloud provides natural tenets to help enable product trials during the sales cycle as well as end-user deployments. Facilitation programs like application exchange, app stores and cloud brokers provide an extended platform and network that can help speed up the revenue-generation cycle.
As businesses scale and more products are added to portfolios, cost and complexity tend to escalate because of the sheer size of the market and the targeted customer base. Before this becomes the bottleneck for revenue-generation cycles, ISVs should employ strategies like continuous delivery of promotional content, new product trial offers and value-added features.
Gone are the days when businesses had to invest in creating a large support infrastructure to remain connected with their customers and increase after-sales happiness quotient. Engaging customers and providing them with the required support services is another non-core cloud use case for ISVs now.
Some of the strategies identified above are better implemented using on-demand models to optimize the ISV budget and speed up revenue cycle. Choosing cloud services will become a natural choice for most ISVs, although rolling out an integrated strategy with disjoining process parameters and heterogeneous tools can pose difficulties in implementing an end-to-end working roadmap. This is where ISVs should look to the cloud-enablement function to guide the product roadmap and bridge the gaps appropriately.
In a nutshell, ISVs can fast track the revenue generation cycle via a well-thought-out cloud strategy for non-core business functions. Define and shoot for smart objectives including:
- Rolling out marketing campaigns, promotions and social integration for products to enable go-to-market in weeks vs. months
- Improving customer and partner experience in real time
- Improving ISV sales without doing non-core technology or expertize investments
- Integrating and delivering on-demand business processes that can help with ordering, measuring, billing, settlements, better customer engagements and managing an end-to-end support life cycle more effectively
For the second category of ISVs that are revitalizing their product portfolio - they may leverage existing investments in non-core business processes as long as it is paying off and not affecting future competitiveness. Some of the above strategies are valid for these ISVs as well. They can pick and choose what suits them well in their current situation. At the same time, a farsighted strategy for them would be to start experimenting with these cloud use cases and start developing means for doing things in a nimbler way.
ISVs ultimately need to plan for continual growth, which is the essence of the business and their survival. To that effect, ISVs need to embrace more contemporary ways. Different ISVs are in different business situations when it comes to implementing new generation technologies that will ensure their competitiveness in the years to come.
Needless to say, making more money is the mantra for businesses. What else can ISVs do?
Check out this next article: Nine Things ISVs Should Do Next
The Internet of Things will greatly expand the opportunities for data collection and new business models driven off of that data. In her session at Internet of @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, will discuss how for this to be effective you not only need to have infrastructure and operational models capable of utilizing this new phenomenon, but increasingly service providers will need to convince a skeptical public to participate. Get ready to show them the money! Speaker Bio: ...
Oct. 24, 2014 09:30 PM EDT Reads: 946
Compute virtualization has been transformational, yet security policy implementation and enforcement has lagged behind in agility and automation. There are a number of key considerations when implementing policy in private and hybrid clouds. In his session at 15th Cloud Expo, Holland Barry, VP of Technology at Catbird, will discuss the impact of this new paradigm and what organizations can do today to safely move to software-defined network and compute architectures, including: How normal ope...
Oct. 24, 2014 07:00 PM EDT Reads: 1,388
Samsung VP Jacopo Lenzi, who headed the company's recent SmartThings acquisition under the auspices of Samsung's Open Innovaction Center (OIC), answered a few questions we had about the deal. This interview was in conjunction with our interview with SmartThings CEO Alex Hawkinson. IoT Journal: SmartThings was developed in an open, standards-agnostic platform, and will now be part of Samsung's Open Innovation Center. Can you elaborate on your commitment to keep the platform open? Jacopo Lenzi: S...
Oct. 23, 2014 11:45 PM EDT Reads: 2,558
How do APIs and IoT relate? The answer is not as simple as merely adding an API on top of a dumb device, but rather about understanding the architectural patterns for implementing an IoT fabric. There are typically two or three trends: Exposing the device to a management framework Exposing that management framework to a business centric logic • Exposing that business layer and data to end users. This last trend is the IoT stack, which involves a new shift in the separation of what stuff hap...
Oct. 23, 2014 07:45 PM EDT Reads: 1,579
SYS-CON Events announced today that SOA Software, an API management leader, will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. SOA Software is a leading provider of API Management and SOA Governance products that equip business to deliver APIs and SOA together to drive their company to meet its business strategy quickly and effectively. SOA Software’s technology helps businesses to accel...
Oct. 23, 2014 06:15 PM EDT Reads: 1,603
SYS-CON Events announced today that Utimaco will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Utimaco is a leading manufacturer of hardware based security solutions that provide the root of trust to keep cryptographic keys safe, secure critical digital infrastructures and protect high value data assets. Only Utimaco delivers a general-purpose hardware security module (HSM) as a customiz...
Oct. 23, 2014 05:45 PM EDT Reads: 1,524
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.
Oct. 22, 2014 09:00 PM EDT Reads: 1,437
SYS-CON Events announced today that ElasticBox is holding a Hackathon at DevOps Summit, November 6 from 12 pm -4 pm at the Santa Clara Convention Center in Santa Clara, CA. You can enter as an individual or team of up to 10 developers. A New Star Is Born Every Month! All completed ElasticBoxes will then be sent to a judging panel - 12 winners will be featured on the ElasticBox website in 2015. All entrants will receive five full enterprise licenses for one year + ElasticBox headphones + Elasti...
Oct. 22, 2014 01:00 PM EDT Reads: 1,524
Once the decision has been made to move part or all of a workload to the cloud, a methodology for selecting that workload needs to be established. How do you move to the cloud? What does the discovery, assessment and planning look like? What workloads make sense? Which cloud model makes sense for each workload? What are the considerations for how to select the right cloud model? And how does that fit in with the overall IT tranformation? In his session at 15th Cloud Expo, John Hatem, head of V...
Oct. 22, 2014 12:00 PM EDT Reads: 1,544
Cloud services are the newest tool in the arsenal of IT products in the market today. These cloud services integrate process and tools. In order to use these products effectively, organizations must have a good understanding of themselves and their business requirements. In his session at 15th Cloud Expo, Brian Lewis, Principal Architect at Verizon Cloud, will outline key areas of organizational focus, and how to formalize an actionable plan when migrating applications and internal services to...
Oct. 22, 2014 11:45 AM EDT Reads: 1,570
SAP is delivering break-through innovation combined with fantastic user experience powered by the market-leading in-memory technology, SAP HANA. In his General Session at 15th Cloud Expo, Thorsten Leiduck, VP ISVs & Digital Commerce, SAP, will discuss how SAP and partners provide cloud and hybrid cloud solutions as well as real-time Big Data offerings that help companies of all sizes and industries run better. SAP launched an application challenge to award the most innovative SAP HANA and SAP ...
Oct. 22, 2014 07:00 AM EDT Reads: 1,669
Ixia develops amazing products so its customers can connect the world. Ixia helps its customers provide an always-on user experience through fast, secure delivery of dynamic connected technologies and services. Through actionable insights that accelerate and secure application and service delivery, Ixia's customers benefit from faster time to market, optimized application performance and higher-quality deployments.
Oct. 21, 2014 09:00 PM EDT Reads: 1,509
SYS-CON Events announced today that Calm.io has been named “Bronze Sponsor” of DevOps Summit Silicon Valley, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Calm.io is a cloud orchestration platform for AWS, vCenter, OpenStack, or bare metal, that runs your CL tools puppet, Chef, shell, git, Jenkins, nagios, and will soon support New Relic and Docker. It can run hosted, or on premise and provides VM automation / expiry, self-service portals,...
Oct. 21, 2014 08:45 PM EDT Reads: 1,450
In her General Session at 15th Cloud Expo, Anne Plese, Senior Consultant, Cloud Product Marketing, at Verizon Enterprise, will focus on finding the right mix of renting vs. buying Oracle capacity to scale to meet business demands, and offer validated Oracle database TCO models for Oracle development and testing environments. Anne Plese is a marketing and technology enthusiast/realist with over 19+ years in high tech. At Verizon Enterprise, she focuses on driving growth for the Verizon Cloud pla...
Oct. 21, 2014 07:30 PM EDT Reads: 1,541
SYS-CON Events announced today that Aria Systems, the recurring revenue expert, has been named "Bronze Sponsor" of SYS-CON's 15th International Cloud Expo®, which will take place on November 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Aria Systems helps leading businesses connect their customers with the products and services they love. Industry leaders like Pitney Bowes, Experian, AAA NCNU, VMware, HootSuite and many others choose Aria to power their recurring revenue bu...
Oct. 21, 2014 06:00 PM EDT Reads: 1,525
The Internet of Things (IoT) is going to require a new way of thinking and of developing software for speed, security and innovation. This requires IT leaders to balance business as usual while anticipating for the next market and technology trends. Cloud provides the right IT asset portfolio to help today’s IT leaders manage the old and prepare for the new. Today the cloud conversation is evolving from private and public to hybrid. This session will provide use cases and insights to reinforce t...
Oct. 21, 2014 05:15 PM EDT Reads: 1,597
As Platform as a Service (PaaS) matures as a category, developers should have the ability to use the programming language of their choice to build applications and have access to a wide array of services. Bluemix is IBM's open cloud development platform that enables users to easily build cloud-based, creative mobile and web applications without having to spend large amounts of time and resources on configuring infrastructure and multiple software licenses. In this track, you will learn about the...
Oct. 21, 2014 05:00 PM EDT Reads: 1,560
Blue Box has closed a $10 million Series B financing. The round was led by a strategic investor and included participation from prior investors including Voyager Capital and Founders Collective, as well as the Blue Box executive team. This round follows a $4.3 million Series A closed in December of 2012 and led by Voyager Capital. In May of this year, the company announced general availability of its private cloud as a service offering, Blue Box Cloud. Since that release, the company has dem...
Oct. 21, 2014 01:45 PM EDT Reads: 1,611
SYS-CON Events announced today that Verizon has been named "Gold Sponsor" of SYS-CON's 15th International Cloud Expo®, which will take place on November 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Verizon Enterprise Solutions creates global connections that generate growth, drive business innovation and move society forward. With industry-specific solutions and a full range of global wholesale offerings provided over the company's secure mobility, cloud, strategic network...
Oct. 21, 2014 09:30 AM EDT Reads: 1,661
SimpleECM is the only platform to offer a powerful combination of enterprise content management (ECM) services, capture solutions, and third-party business services providing simplified integrations and workflow development for solution providers. SimpleECM is opening the market to businesses of all sizes by reinventing the delivery of ECM services. Our APIs make the development of ECM services simple with the use of familiar technologies for a frictionless integration directly into web applicat...
Oct. 20, 2014 10:00 PM EDT Reads: 1,773