Over the past month Pluto7 did a study on various hi tech companies and their impacts to revenue, growth and operating models with the evolution of cloud. The companies we interviewed included No 1. CRM Software company, No 1. Software Security company, No 1. Operating Dekstop Systems company and few more. One observations that startled us, is the amount of change these organizations are embracing
to align with Cloud adoption
by their end customers which makes us believe that Cloud led change may be larger in impact compared to a PC led or internet led transformation of businesses. Some of the best examples of cloud transformation we have seen so far is Microsoft with Azure and Office 365
, AWS and few hi tech companies in silicon valley.
Today’s leading companies may become insignificant at an accelerated pace ( by 2020). If all of this is known, what aren’t companies changing enough or preventing? The answer to this relies on something more fundamental happening in the at-risk companies.
To transform into the cloud era, the stakeholders in the companies need to answer the following basic question which are their Pillars of their current Business model
: The questions appear obvious, but the answers are harder when it gets more specific.
: How are your customers buying your offerings today vs. tomorrow with cloud ? E.g. Hardware, Software, Services, Bundling and Solutions.
:How do you measure “Servicing” the customer? E.g. One time download vs. usage vs. metered vs. time bound vs. utility
: How is the customer being served today vs. tomorrow in cloud ? E.g. On premise, Public Cloud
When, Why and How do your customers want to pay today vs. tomorrow with cloud? E.g. Upfront vs. Onetime vs. Periodic vs. Post Paid vs. milestone.
Sales Compensation :
Have you really
aligned your sales compensation to be cloud ready? Including partners and channels compensation models.
Commerce experience readiness :
Are you really making it easier for your customer to purchase and experience your offerings better ? Don’t use the commonly misused reason “our business is different”.
Ease of doing business in the “New World” of cloud will separate the companies who transforms vs. companies that will die in dilemma.
With that the playing field now becoming more even for big and mid size players in a given segment or vertical, list of top 10 revenue companies of Silicon Valley will change more dramatically within next 5 years. Cloud is a continuous evolving subject for us here at Pluto7.
if you agree with most of what I stated here.