BIGGEST CHALLENGE FOR CLOUD SOLUTION PROVIDERS :
A recent survey of software resellers & Solution providers resulted that Biggest Challenge For Cloud Solution Providers Is, what most of us in business already knew:
Different selling mindset
Software vendors, solution providers, and other subscription-based service providers need to wake up to the reality. The reality regarding selling cloud (or any subscription-based) solution is very different from selling the on-premise (upfront pay) solution. It requires a business model, process, and more importantly mindset transformation.
Alarming conversation with the CEO
To illustrate the point, I was in an authentic conversation with the CEO of a traditional software vendor that makes apps for engineers. He Insists that he doesn’t see cloud to be a big challenge for his company. Ironically, the company’s revenue is off by over 30% within last two years and facing tough time finding new customers. WHAT A SURPRISE!
THE FACT IS any vendor unwilling or unable to offer customer-centric subscription-based solutions ,lacks ability to compelling business value. Undoubtedly, they will miss out on the potentially huge revenue streams. It is risk to being forced out of the marketplace sooner or later.
DOUBLING DOWN ON A BAD HAND IS NEVER WISE:
Traditional disturbing trends
In my recent engagements across S.E. Asia, I saw a disturbing trend with some System Integrators and solutions providers that may only ensure lose-lose scenarios for themselves and their clients .Many of these solution providers are doubling down on their traditional business model. Therefore they are trying to sell cloud solutions pretty much the same way they sold traditional on-premise solutions.
proposals for the ‘PERFECT’
However, service providers approach clients with proposals for the ‘PERFECT’ system, fully customized, automated, integrated…etc. They often ignoring many of the cloud solution’s unique characteristics and benefits. In the process, these vendors are committing to unrealistic timelines and expectations. This is just like the good old days of upfront pay model. Your plan of action is whatever you think the customer wants to hear to get the order and then leave it up to the client and support to sort it out on their own. Not surprisingly, the outcome is not pretty.
When clients wake up
Generally, Within months many of these clients wake up to the fact that they are nowhere near having ANY stable, cost-effective, robust, scalable, ready to use cloud solution, do cancellations with tremendous financial challenges. It becomes risk to reputation for both the cloud vendors and the solution partners.
IMPORTANT MIND SHIFT:
In the traditional upfront pay model customers paid the price and then they attempted to get value on their own. In the subscription world client demands value first before they pay the price…perpetually!
First of all, in addressing this problem is for the cloud solution providers and to recognize the shift in the marketplace, they need the new way to conduct business in the cloud era. Secondly, should build their talent transformation roadmap to re-calibrate their whole sales organizations and provide the necessary enable tools and support to set themselves up for success.
MY BELIEVE AND FOCUS FOR CLOUD BUSINESS
Noteworthy “I believe that as the leading sales transformation service provider it is our duty to help resellers and solution providers to up skill their staff .it is our responsibility to give them the tools they need to succeed in the market. We focus on providing comprehensive potential and on-boarding programs specifically for needs of our clients that encompass core skills, cloud sales process, effective stakeholder management, business acumen & customer success management