According to a recent study, traditional technology channel ecosystems are reorganizing around three separate business models that will function very differently from the IT value chain of today.
- Resale (support for on-premises IT solutions)
- Hybrid (a combination of on-premises and cloud services) a
- “Born in the cloud” (focused mainly on cloud-based services).
We all understand the future is in the Cloud, and yet the majority of decision management vendors I’ve talked to still have not made the transition from resale to hybrid cloud-based offerings. Why? This is no easy task. This new cloud model stresses the existing business models of these decision management solutions providers, including systems integrators, software vendors and technology contributors.
At the same time, what we’ve seen with our own decision management cloud-based offerings, is that it can provide significant benefits in a rapidly growing segment of the market. If you’re a vendor looking to make the transition to the Cloud you should consider licensing models, infrastructure models and professional services models. Particularly, moving from a licensing based on hardware to pay-as-you-grow, or pay-as-you-consume models is an exercise that needs to be performed very carefully, and may require new tracking, monitoring and enforcement mechanisms. You also must rethink the relationship with your customers moving forward, as you are no longer selling a piece of software, application or solutions, but are indeed selling a service to the customer, and as such, you are the key go-to organization for any issues that may occur.
When you are in the marketplace you also have an opportunity to leverage other solutions to provide even more value to your customers, but it comes with increased management and product life cycle management efforts. The good news is that cloud services are usually billed on a monthly basis as an operating expense, making the service more affordable to clients.
You can also rely on the availability of a scalable hardware infrastructure at competitive prices diminishing the risk of poor capacity planning, and allowing the technical team to spend less time on fixing potential bugs and focus their activity on enchanting customers.
Online decision management marketplaces also open avenues for new entrants such as consultancy firms, smaller specialized firms developing advanced models, or niche optimization solutions, which were just not available previously. This creates a much more dynamic and rich environment for all participants to develop, consume and market new decision management solutions. If you are looking to make the leap to the Cloud, the FICO Analytic Cloud and Marketplace offers everything you need to get started.