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Directions EMEA
Packaging, Pricing and Positioning Your Cloud Solutions
http://neuralimpact.ca/Directions2017
Sharka ChobotAbout Sharka
• Chief Transformation Officer, Neural Impact
• 30 year marketing executive (Simply Acctg (Sage), Pivotal CRM, ATI Technologies, Epicor ERP/Vantage Point)
• Professor Marketing & Behavioral Science
• Advisor to Microsoft Partners and ISVs aroundthe globe
• Creator: CRM Product Category
Sharka’s contact info
(604) 987-4275
www.neuralimpact.ca
Partner Selling Challenges
High Cost of Selling
Long Sales Cycle
Low Lead to Close Conversion
Low Win Rates
Delayed Projects
Traditional Selling
SalesMarketing SalesMarketing
Marketing is the new sales
57%
Changing Buyer Expectations
Uncertainty
Risk Dependency
TRUST=Confident Decision
83% of respondents to the AccentureTechnology Vision 2016 survey agreed
that “Trust is the cornerstoneof the digital economy”
Shift to packaged offerings
https://abakion.com/#pricing
https://cloudplatform.sap.com/content/dam/website/skywalker/en_us/PDFs/SAP_CP_Pricing_September_2017.pdf
Average Revenue Mix for a Cloud MSP
10%
50%5%
20%
15%
IP
Managed Services
Hosting
Project/Professional
Resale
Source: Cloud MSP research by AMI Partners, Inc. N = 50
IP
Partners are rapidly adopting cloud focused business models
15%
Offer project services only
Offer project and managed services
48% Offer project services, managedservices and IP
8%
MDC Research, Microsoft Cloud Profitability Scenarios, May 2015
The IP Staircase – Offering Differentiation
COMPLEXITY/COST
Labeled bundles
Turnkey functional
infrastructure
Packaged
extensions
Full vertical
solutions
POTENTIAL ISV PARTNERING
DIFFERENTIATION/VALUE
Dynamics 365
Current Offering + Stack
Own Repeatable IP
OptimizeSpecific Function
Full Vertical Solution
Time and Materials Traditional Proposals
http://www.consultingcloud.org
Think Proposal
One fixed out of the box price is not an option!!!
Psychological reactant
Source: Flexera Software online poll Saas ISVs, April 2011
31%
38%
13%
6%
13%
0 1%-19% 20%-40% >40% Other
Estimated Revenue missed due to “One Size Fits All” Pricing/Packaging
56%
What are you leaving on the table because of “one size fits all” pricing/packaging?
Shift from time & materials to packaged solutionsPe
rcei
ved
Cu
sto
mer
Ris
k
Len
gth
of
Dec
isio
n M
akin
g
Tim
e to
Dep
loy
PackagedSolutions
“Out of the Box”
Time & Materials
Internal
Cu
sto
mer
High
Low
High
Cost of Selling
Length of Sales Cycle
Labour Intensity
Margins
Core differentiation?
Modern
Workplace
Business Applications
Apps and
Infrastructure
Data and AI
https://us.hitachi-solutions.com/oil-gas/
https://www.tecman.co.uk/Industries/Food-and-Beverage
Pricing models
PerpetualLicense
Consumption – Usage based on criteria,
pay as you go
Tiered – Scalable, pay based on levels criteria
Freemium – Capacity, feature, time, use case
1 2 3 4
Plan and pricing
Center Stage
Lite edition
$29/MO
Standard edition
$99/MO
Premium edition
$159/MO
Most Popular
Perfect for Ideal for growing Designed for
Transparency
https://www.encorebusiness.com/blog/erp-cloud-pricing-microsoft-dynamics/
https://www.greenrope.com/dynamics-alternative?cmp=GDynamics&utm_source=bing&utm_medium=cpc&utm_campaign=TPP%20-%20Dynamics%20US&utm_term=%2Bdynamics%20%2Bpricing&utm_content=Dynamics%20-%20Pricing
http://www.o365financials.com/for-business/pricing
Springboard
Retrieved June 2016 http://springboard.cloud2020.co.uk/
Customer NicheEx: What are your segments?
Retrieved May 2016
Persona packaging & pricing
Basic Standard Premium Premium plus
Target user Task worker Information
worker
Information
worker
Designer/
Engineer
Ideal use
Lightweight LOB applications
(e.g., data entry, expense reporting)
Productivity Applications(e.g., Office)
Productivity apps with large data files (e.g. Excel with macros)
Design or heavy compute apps(e.g. MATLAB)
Storage
(per user) 50 GB 50 GB 50 GB 50 GB
Starting price
(per user/month) $10 $15 $20 $25
Azure Remoteapp Pricing
What is the JOB your Product is being hired to do?
Retrieved May 2016 http://www.powerobjects.com/powerpacks/powermap/ Copyright Power Objects
What is PowerMap?
If you’re looking for a more visual representation of records
in your Microsoft Dynamics CRM system, PowerMap will be
your new best friend. PowerMap lets user choose an entity
in CRM, choose a view, and plots all of the individual
records from that view on one map. Users can map more
than one entity, and more than one view at a time, and can
also save their PowerMap preferences, including map
configurations, zoom levels and views
• Supports any entity with an address field
• Click on a pin on a map, and a summary of the
record will display
• Open a record directly from the map, by clicking on the
name of the record in the summary view
Add Ons
Vertical Value add Free Forever Applet
Call me!
Source: Retrieved Mary 2016, Copyright of each respective owner. https://azure.microsoft.com/en-us/marketplace/
Drive Conversion
Use code: ForeverMeExpires: August 31, 2016
Scarcity & Loss Pricing Approach
Free Trial – Limited Time
Cloud Industry Services Strategy
Business Case
Industry Benchmarking
Selection Services Enablement Services Optimization Services
Renewal
306090
Lower Costs & Development Time
Azure ARM template library on Azure.com
Azure ARM template library on GithubComplementary Tools Include
• Chef
• Puppet Labs
Develop
a focus
Create your
solution
Identify
the offer
Expand
your service
Building a customer lifetime value engine
Try the free value proposition generator: http://neuralimpact.ca/Directions2017
(604) 987-4275
0% 20% 40% 60% 80%100%
VALUE EXCHANGE AND …
TRUST AND CREDIBILITY
PROOF OF CLAIMS
SIMPLICITY VS COMPLEXITY
CURIOSITY AND NOVELTY
VISUAL STIMULATION
EMOTIONAL …
PERSONA ENGAGEMENT
TRIBAL CONNECTION
EMOTIONAL AUDIT SUMMARY
Session
How to Increase Online Engagement and Drive Conversion
Best practices in Digital Marketing Engagement - Townhall Discussion
Packaging, Pricing and Positioning Your Cloud Solutions
BE.20
BE.21
BE.22 Berlin
