Waterstone Management Group Reveals Success Strategies in a Cloud World

CHICAGO - Jan. 11, 2015 - PRLog -- The rapidly changing world of cloud computing is having a dramatic effect on technology companies' professional service organizations. Facing declining demand for traditional services and pressure on revenues and margin, tech firms are being compelled to change how they define and manage the customer experience. Waterstone Management Group, in its newly published "Point of View" paper titled "Services in a Cloud World – Identity Crisis or Opportunity?,” details the cloud’s impact on professional services businesses and outlines five key strategies that must be addressed to successfully adapt to and win in this new world. The paper is now available on the Waterstone website.

"In the tech industry, cloud has become more than a deployment model—it has redefined the entire business and operating model," said Neil Jain, Waterstone partner and co-author of the paper. "Revenue growth has become a key focus for technology firms, especially as pricing models around cloud shift from up-front licenses to subscriptions.  Companies that can successfully pivot their services businesses around cloud-centric models will be well positioned to thrive in this new landscape."

Traditionally, technology companies' professional services groups represent 20 percent or more of total revenue. Pressure for automation and pre-configured workflow and process solutions, and a pricing model that depends on lower ongoing subscriptions rather than up-front service and integration fees, call for a new approach. The first thing that technology companies should do is redefine success in light of changing economics. This includes augmenting traditional metrics of utilization and billable headcount with new customer-oriented metrics such as customer satisfaction, retention and “go lives.”

"Success today is increasingly dependent on optimized, more automated implementations in addition to strong partnerships and joint service delivery arrangements that protect the customer relationship," said Claire O'Neill, Waterstone manager and co-author of the paper. "In addition, pre- and post-implementation offerings will play an even greater role, and will offset the revenues lost in the implementation phase of service delivery."

While some may see cloud as a vexing challenge and a threat to the existing way of doing things, Waterstone recognizes the shift towards cloud as an enormous opportunity for greater and more diverse revenue streams, and tighter and longer-lasting relationships with customers.

About Waterstone Management Group

Waterstone Management Group helps technology companies and investors create measureable value by identifying and capitalizing on disruptive growth opportunities and by driving excellence in Services, Cloud and Customer Success performance.  Waterstone’s expertise-driven approach combines deep industry-specific intellectual property and a unique blend of strategic consulting and executive-level operating experience to deliver high velocity strategy and execution. For more information about Waterstone, please visit waterstonegroup.com and follow the firm on Twitter (@WaterstoneMG).