- December 6, 2016
- Posted by: Theresa Caragol
- Category: Strategy and Trends
The industry has progressed to a point where we now have a science to how companies prepare their business migration to cloud. What are the leading indicators and key metrics that determine if they are ready, willing, and able? And then what are the in process metrics that demonstrate their migration and ultimately long term revenue growth from cloud.
Before we migrate our companies to cloud, we must ask ourselves if the cloud technology will actually improve our business processes overall.
Three components to consider:
- Technology – what is our existing infrastructure and technology toolset and will it allow us to successfully provide consumption-based solutions? Gather data and build a framework and cost model; this should be a combination of a quantitative (i.e. cost, time and skills required to deliver cloud services) and a qualitative analysis (i.e. benefits of being in the cloud).
- Process – determine if cloud would be an improvement or a negative for our businesses operating model? (i.e. what new processes or systems must be built; or can we leverage our established business models and processes)
- People – assess if people will embrace the change, consider that moving to the cloud often means to change the way you do business. (i.e. can my existing sales force handle this solution, or will I need to build an overlay “cloud” team for the new offerings?)
A company called KloudReadiness conducted an informational research study on 250 partners across NA, EMEA, and APAC based on the output of their automated business readiness SaaS platform. According to the company’s findings, it takes a company approximately 14 months on average to become cloud ready – able to build revenue month over month (MoM). Monthly recurring revenue is a strategic element of a business model; it’s embedded into the business mix as a co-equal revenue stream. Investors or private equity companies’ value recurring revenue models much higher than project based business. Within our company as we make this transition, adjusting business, financial, sales, marketing and operating models are all critical elements for successful MoM.
Evolving your business to the cloud can be done in a methodical, calculated, and scientifically proven method. “Leveraging a software automation system that analyze the information with key inputs is a proven step in this process,” according to Warwick, RI based Atrion Solutions President, Paul Cronin. “We used Kloud Readiness, another New England based company to assist us with our transition.” Cronin recommended when evaluating a tool, ensure they have three critical elements:
- A GO / CONSIDER / NO-GO Dashboard that provides high-level findings, a gap analysis and an action tracker with the recommended precise steps to ensuring your readiness.
- A Key Metrics Indicator that directs your focus to the primary measurements required to monitor, manage and grow a healthy recurring revenue business.
- On-going recurring revenue sales compensation monitoring, management and tracking of sales compensation paid, deferred and the associated impact on your overall business model.