This document outlines shortcomings in the selling of "As-Service" sfferinngs

1. January, 2013
Jitender Arora, Consultant, Transformations & Strategic Deals
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2. Talking Points
With migration of business-critical services to cloud, service
providers are looking to offer more differentiated, nuanced, agile
and automated services to compete profitably in the market
In this presentation we look at some of the challenges faced by
services providers in the selling of cloud offerings
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3. Challenges
High CAC- Customer Acquisition Cost
Complex Engagement Life-Cycle
Extemporized Customer Targeting
Delivery Effectiveness
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4. High CAC- Customer Acquisition Cost
High Sales Model
Traditional service providers
continue to engage with
Profitability
prospects in “Enterprise Sales” Self Service Transactional
model, which leads to high
sales cost ; culminating into
lower margins
Graveyard Enterprise
Low High
Sales Effort
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5. Complex Engagement Life-Cycle
High Complexity to Sales Velocity
Self Service Transactional
Find
+
Each hurdle that stands
Sales Velocity
Try
+
between product and Buy
customer Reduces sales +
velocity
Use
Graveyard Enterprise
Low High
Complexity
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6. Extemporized Customer Targeting
Weak Proposition: Unlike a “As-Service” start-up that “pulls” target
audience via differentiated product & price offering, traditional service
providers are employing “push” strategy to market its such offerings. This
restricts their proposition to “competitive pricing” only
Inadequate Target Profiling: Inadequate target profiling and planning is
also a limiting factor. This is primarily due to reliance on sales resource to
identify, profile, segment, engage, farm, propose, and close deal
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7. Post Sales Engagement Challenges
Extended “Traditional” Deployments: extended adoption times not
preceded by any end-user training adds delays in adoption . Leading to
delayed billing throughout adoption phase
Product Support: Support is the major function in “As-Service”. Running
the support in a traditional software support & maintenance model is
leading to dip in the margins
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8. Connect
@Ji10derArora
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