Waterstone Management Group Reveals Success Strategies in a Cloud WorldWaterstone details the impact of the cloud on tech companies’ professional services businesses and how companies must redefine their service organizations to win in this new world
By: Waterstone Management Group "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," 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’ Media Contact David Schutzman david@davidschutzmanmarketing.com 203 550-8551 Photo: https://www.prlog.org/ End
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