Adapting Your Business To The Cloud Paul Solski AIM International Karina Nielsen Celenia Software Cheryl Strege The Partner Marketing Group

How will the cloud transform the software business? AIM International ● Celenia Software ● The Partner Marketing Group

What’s different? Communization of software and IT services Changes from the business of software to services Transfers cost and risk to vendors Actualizes application agility Realizes solutions’ global reach AIM International ● Celenia Software ● The Partner Marketing Group

What stays the same? The need to: differentiate through value deliver better business outcomes offer solutions aligned with clients’ expectations provide outstanding service AIM International ● Celenia Software ● The Partner Marketing Group

What is the impact on SI’s? AIM International ● Celenia Software ● The Partner Marketing Group

What’s different for SI’s? More packaged solutions More online purchasing Highly educated clients Declining product margins Increased competition Decreasing application complexity Declining Install/configure services Monetize your IP Demonstrate business acumen Focus on business outcomes Become a trusted adviser Go vertical AIM International ● Celenia Software ● The Partner Marketing Group

What is the impact on ISV’s? AIM International ● Celenia Software ● The Partner Marketing Group

What’s different for ISV’s? Customized solutions to client types Tailored pricing Repeatable implementations Increased global exposure Try & Buy acceptance Potential for long term annuities Appeals to more diverse clients Appeals to price sensitive clients Easier to implement Potential to sell globally Faster sales cycles Focus on customer service Software Services AIM International ● Celenia Software ● The Partner Marketing Group

How do the financials change?

How different are the financials? AIM International ● Celenia Software ● The Partner Marketing Group SOFTWARE Revenue: Perpetual license purchase 15%-20% annual maintenance Partner Discounts: Reseller: 25%-55% tiered discount based on partner sales revenue Referral: 10%-15% of sale Channel Manager Compensation: Base + 3%-8% Bonus SERVICES Revenue: Subscription = (License + Maintenance) /36 per month Partner Discounts: Reseller: 50% first year & 30% lifetime Referral: 25% first year Hunter: Base + 5%-8% of first year contract Farmer: Renewal: Base + 2%-5% of contract

How does an SI get there?

SI transformation: AIM International ● Celenia Software ● The Partner Marketing Group PLAN BUILD MARKET Review DEFINE YOUR DIFFERENTIATION Where have you succeeded most? How do you differentiate? DEFINE THE TARGET CLIENTS Which micro-verticals will become expert in? What specific business outcomes will you deliver? PRODUCTIZE YOUR IP FOR MICRO-VERTICALS Code, methodologies, templates PACKAGE THE SOLUTIONS Package by client type, with Try & Buy, Standard, Professional, Enterprise versions. Seamless upgrades. Automated provisioning. ESTABLISH HOSTING PARTNERSHIP EFFECT WEB BASED SELLING & SUPPORT Client self-education, Self-qualification Online purchase, Self helpdesk BUILD AN ONLINE BRAND Trusted advisor through social media TRY & BUY outreach Contributions to online publications SEO & PPC

How does an ISV get there? AIM International ● Celenia Software ● The Partner Marketing Group

ISV transformation: AIM International ● Celenia Software ● The Partner Marketing Group PLAN BUILD MARKET Review DEFINE THE TARGET CLIENTS Target micro-verticals, Company sizes, Geographies DEFINE THE SOLUTIONS Functionality & pricing by edition: Try & But, Standard, Professional, Enterprise DEFINE THE BUSINESS MODEL Direct, through Partners, on-line, hybrid. Financials. 3 Year business plan. SOLUTION TRANSFORMATION Optimize for SaaS. Build in dynamic configuration. Automated provisioning. PACKAGE THE SOLUTIONS Package by client type, with Try & Buy, Standard, Professional, Enterprise versions. DEVELOP SaaS CAPABILITIES Provisioning & charging model. EFFECT WEB BASED SELLING & SUPPORT Client self-education, Self-qualification, Online purchase, Self helpdesk BUILD AN ONLINE BRAND Trusted advisor through social media TRY & BUY outreach Contributions to online publications SEO & PPC Expand marketing reach globally.

We can help: PLAN BUILD MARKET New Opportunity Assessment Readiness Assessment Business model workshop Partner program development Partner search and recruitment BUSINESS Cloud solution assessment Cloud Architectural design Deployment Testing Maintenance & Upgrades PRODUCT Strategic marketing plan development Social media campaigns Online client education Online client self-qualification Building an online brand Massively scaling market reach MARKETING AIM International ● Celenia Software ● The Partner Marketing Group

How to get started? Complimentary cloud readiness review: A two hour telephone based review of your current business model, product and marketing. Recommendations on how to transform each for the cloud. A self-assessment questionnaire review and a report AIM International ● Celenia Software ● The Partner Marketing Group

Ask! Paul Solski: – – Cell Karina Nielsen: – – Cell Cheryl Strege: – – Tel AIM International ● Celenia Software ● The Partner Marketing Group

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