Link: How the subscription paradigm flips the cloud financials market

In the subscription world, you must understand the lifetime relationship with the customer – all the upsells and renewals and how they all build on one another. You also must understand the revenue, billings, and cash derived from those-again, over the entire lifetime of the customer relationship.

In an ASC-606 world, you must track all performance obligations, which is a fancy term for your promises – both the ones explicitly written in your customer agreement and all those pesky side terms that your sales rep slipped into the free-text field on the quote. You must also know all the implicit promises that people make in the deal or that have become ingrained in your business processes.

Source: How the subscription paradigm flips the cloud financials market

Oracle losing legacy software sales, growing (public?) cloud sales

Once again, the key metric of new software license sales was off—falling 19% to $1.35 billion compared to last year, and missing analysts’ expectations of $1.44 billion.

On the other hand:

“Our cloud revenue will be larger than our new software license revenue next fiscal year, when the transition will be largely complete.”

And:

“Our cloud applications goal is to be the world largest and most profitable SaaS company. We are growing our cloud business much faster than Salesforce.com, and we can beat them to the $10 billion mark, but it’s going to be close,” Ellison told analysts on the call.

Also:

Database-as-a-service, which basically runs a company’s database on a third party’s cloud, is a fast-growing category for Oracle, according to the company. In fact, Oracle co-CEO Mark Hurd said that business was up 700% year over year, hitting $100 million in quarterly revenue.

Source: Oracle’s Cloud Business Has Yet to Surpass Its Falling License Sales

Lesson learned from India: Four common traits of a profound digital transformation

Agatha over at 451 visits Indian outsources, commenting on how they’re changing to do more cloud related work:

Aside from spending a great deal of effort on building a market-driven culture, the company has instituted a fundamental shift in workforce mindset by moving away from doing what they are told and on to identifying new opportunities to add value and delight customers.

Also:

Aside from spending a great deal of effort on building a market-driven culture, the company has instituted a fundamental shift in workforce mindset by moving away from doing what they are told and on to identifying new opportunities to add value and delight customers.

And:

Wipro reported that public cloud partners serve as a key building block of its hybrid cloud migration strategy. For public cloud deployments, it has teamed up with AWS, Microsoft Azure, SoftLayer, Oracle and vCloud Air to provide managed public cloud offerings. Meanwhile, public cloud partners increasingly represent an important sales and marketing channel for HCL Technologies, with a number of deals having significant public cloud roadmaps. There are a few providers that focus on building vendor-specific expertise and credibility, such as Infosys, which is the premier consulting partner for AWS, and CMI industry advisory group. CMI at TCS claims to have more than 120 certified AWS architects and over 800 trained associates.

Source: Lesson learned from India: Four common traits of a profound digital transformation

Link: Gartner: Cloud Email Adoption Still in Early Stages

“The cloud email market is still in the early stages of adoption, Gartner said, with 13 percent of identified publicly listed companies globally using one of the two main cloud email vendors, Microsoft Office 365 or Google Apps for Work, respectively. With the majority of companies opting for smaller vendors, the cloud email opportunity is still ripe for channel partners… According to Gartner, 8.5 percent of public companies in its sample of nearly 40,000 public companies globally use Microsoft’s Office 365 service, while 4.7 percent use Google Apps for Work.”

Seems pretty crazy, but I’m sure there’s sunk costs, security and data handling issues, and, well, sometimes it probably is cheaper.

Source: Gartner: Cloud Email Adoption Still in Early Stages

Integration is gonna be a problem for cloud

Enterprise software integration is hard and risky. Once you’ve invested in integrating your enterprise applications with one another (and/or with your partners’ applications), that integration becomes the #1 reason why you don’t want to change your applications. Or even upgrade them. That’s because the integration is an extension of the application being integrated. You can’t change the app and keep the integration. SOA didn’t change that.

Integration is lockin

Freemium Mechanics from Jeff Nolan

Ultimately the freemium model is a strategy that increases the catchment of leads as a result of using your product as the primary marketing vehicle through which you deliver a funnel to. Take care to structure your website so that every aspect of the content you are creating is designed to deliver a site visitor into a product experience or isolate them for followup through a traditional enterprise sales process.

For me the mechanics of a freemium business are some of the most interesting to be involved with in a modern software as a service company. The implications of billing and provisioning system dynamics, how you structure your website content, surface funnel analytics, build upselling cues into your application, and manage high volume sales nurturing processes are incredibly complex but increasingly normal for the B2C and even B2B markets.

–Freemium Mechanics | Jeff Nolan – Venture Chronicles.