How I shifted My Business One Subscription At A Time (Subscribed13)

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Informatica - Ron Papas, SVP Subscriptions
Nintex - Ryan Duguid, VP Product Management

Are you looking to transition your traditional software business to the subscription economy but aren't sure how? Come hear from two on-premise software providers about how their companies are making the, and the lessons they learned.

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How I shifted My Business One Subscription At A Time (Subscribed13)

  1. 1. How I Shifted My Business One Subscription at a Time Ron Papas SVP Subscription Sales Ryan Duguid VP of Product Management
  2. 2. The Nine Keys to Subscription Success $ PRICE   ACQUIRE   BILL   COLLECT   NURTURE   ACCOUNT   MEASURE   ITERATE   SCALE  
  3. 3. How I Shifted My Business One Subscription at a Time Ron Papas SVP Subscription Sales
  4. 4. Agenda   1. Informa<ca  Company  Introduc<on   2. How  Informa<ca  Uses  Zuora   3. Our  Top  Subscrip<on  Essen<als   4. Lessons  Learned   5. Wrap  Up  &  QA  
  5. 5. Informa<ca  Company  Intro   •  World’s  #1  provider  of  Data  Integra6on  So8ware   •  Over  5,000  Enterprise  So8ware  and  2,000  Cloud  Customers   •  Cloud  solu6ons  for  Applica6on  integra6on  &  Data  Quality   •  Voted  “  Best  Integra6on  Product”  on  AppExchange  last  5  years   •  Q2  2013  So8ware  Revenue  $91.4M   •  $80.1M  License  (18%  YoY  growth)   •  $11.3M  Subscrip6on  (70%  YoY  growth)  
  6. 6. How  Informa<ca  Uses  Zuora   Idea  to   Launch  in  4   Weeks!  
  7. 7. Our  Top  3  Essen<als   Informa(ca  uses  pricing   and  packaging  as  a   compe((ve   differen(ator.  Usage   based  pricing  allows  us   to  reach  more  partners   &  SMB  customer  by   offering  them  maximum   pricing  flexibility.   Informa(ca  tradi(onally   sold  enterprise  soCware   to  global  5,000   companies.  With  our   Cloud  offerings,  we  are   now    able  to  target  and     acquire  new  customers   of  all  sizes  and  greatly   broaden  our  market   opportunity.   1 2 P R I C E ,   A C Q U I R E ,   S C A L E   Given  the  lower  ASP  for   our  Cloud  offerings   (star(ng  at  $99/month),   we  needed  to  implement   scalable  processes  for   everything  from  Demand   Genera(on,  to  Customer   Acquisi(on  to  Sales   Opera(ons  &  Renewals   3
  8. 8. Subscrip<on  Essen<al  :  Price   I n f o r m a t i c a P r i c i n g & P a c k a g i n g J o u r n e y We  ini6ally  launched  with  a  freemium  model       Free  Data  Loader   Edi<on  Based   Pricing  Model   We  introduced  4   Edi6ons  from  $18K   to  $96K/yr     Informa<ca  Cloud   Express   Usage  based   pricing  filled  gap   between  FREE  and   $18K/Yr     ELA’s   Some  Customers  may   prefer  to  sign  an  ELA  to   get  maximum  flexibility  &   preferred  terms    
  9. 9. Subscrip<on  Essen<al  :  Acquire   W e   a d d e d   >   2 , 0 0 0   n e w   C l o u d   c u s t o m e r s ! !   Self-­‐Service     •  Freemium   •  Express  $99+           Direct       •  Corporate   •  Enterprise           Channel       •  Sourced   •  Resellers   •  OEM  
  10. 10. Subscrip<on  Essen<al  :  Scale   S c a l a b l e   s y s t e m s   a n d   p r o c e s s e s   n e e d   t o   b e   i m p l e m e n t e d   u p f r o n t   o r   v e r y   s o o n   a 8 e r   l i 8 o ff   •  Demand  Gen  Machine   •  Frequent  product  itera<ons   •  Scalable  CRM  System   •  Self-­‐Service  model  for  Freemium  &   Express  offerings   •  Customer  Success  Team   •  Separate  Renewals  Team  
  11. 11. Lessons  Learned   Point  1:   B E S T   P R A C T I C E S   Point  2:   Point  3:   Everything  is  different  in  a  Cloud/Subscrip6on  business   Product,  Sales,  Marke6ng,  Customer  Success,  Opera6ons…  You   need  to  setup  a  separate  team  to  get  started     Recurring  revenue/Renewals/Customer  Success  are  the  lifeblood   of  the  business     Don’t  be  afraid  to  experiment!    You  need  to  constantly  innovate   and  iterate  (product  as  well  as  pricing/packaging)    
  12. 12. How I Shifted My Business One Subscription at a Time Ryan Duguid VP of Product Management
  13. 13. The  Nintex  Journey   Beginning   A U T O M A T I N G   E V E R Y D A Y   P R O C E S S E S   Growing   Accelera<ng   Born  out  of  a  system  integrator  that  saw  an  opportunity   Created  clear  value  for  partners  and  customers   Focused  on  growing  channel   Over  5000  customers  and  nearly  50%  of  the  fortune  500   Supported  by  a  network  of  over  800  partners  in  90  countries   Recognized  as  the  #1  ISV  on  Microso8’s  SharePoint  planorm   Major  investment  from  TA  Associates  and  Updata  Partners   Rapidly  expanding  sales,  marke6ng  and  R&D  (we’re  hiring!)   Taking  workflow  to  everyone,  everywhere,  all  the  6me  
  14. 14. Living  In  Denial  
  15. 15. Hoping  For  A  Solu<on  
  16. 16. Star<ng  The  Journey  
  17. 17. Choosing  The  Variables  
  18. 18. Working  The  Numbers  
  19. 19. Deba<ng  The  Results  
  20. 20. Launching  The  Service  
  21. 21. How  Nintex  Uses  Zuora   Background   P L A T F O R M   O V E R V I E W     Business  Model   The  Challenge   Running  Great  Plains  and  Dynamics  CRM   Licensing  and  billing  built  on  our  own  planorm   Far  too  many  SKUs   On  premise  enterprise  so8ware  vendor   Majority  partner  driven  through  a  network  of  VARs   Minimal  direct  sales  to  larger  customers   We  needed  a  billing  planorm  to  manage  a  wide  variety  of  pricing   strategies  across  a  diverse  and  growing  customer  base  and  we  had  a   very  short  6me  frame  to  get  it  in  place.    The  planorm  would  have  to   support  one  6me  charges,  fixed  recurring  charges  and  variable  costs.     We  also  had  to  migrate  our  exis6ng  annuity  contracts.  
  22. 22. Our  Top  3  Essen<als   P R I C E ,   M E A S U R E ,   I T E R A T E   The  move  to  the  cloud   offers  new  opportuni(es   to  mone(ze  our   offerings.  Nintex  uses   pricing  and  packaging  to   provide  customers  with   greater  flexibility,  and  to   ensure  that  we  can   constantly  deliver  and   mone(ze  new   capabili(es.   To  ensure  we’re  building   differen(ated  products   at  the  right  price,  Nintex   needs  to  accurately   measure  every  aspect  of   the  business.    Whether   we’re  looking  at  MRR,   product  mix,  or  upsell   opportunity,  we  need   (mely  access  to   accurate  informa(on.   1 2 Once  you’re  pricing  is   released  and  you  start  to   measure  the  impact,   you’re  going  to  find   areas  that  can  be  fine   tuned.    For  Nintex,  the   ability  to  rapidly  iterate   on  pricing  as  well  as   product  is  cri(cal  to   ensure  that  we  keep  our   customers  happy  and   grow  our  business.   3
  23. 23. Subscrip<on  Essen<al  :  Price   N i n t e x   P r i c i n g   &   P a c k i n g   J o u r n e y   We  are  launching  with  a  per  user  pricing  model     A  new  way  to   pay   Buy  what  you   need   The  Nintex  Store   provides  a  new  way   of  mone6zing   innova6on     Trial  is  cri<cal   30/60/90  day  plan     Hybrid  support   Op6ons  for  our  customers   who  live  in  a  hybrid  world    
  24. 24. Subscrip<on  Essen<al  :  Measure   W A T C H I N G   O V E R   O U R   B U S I N E S S   Today:    Lots  of  effort  to  track   the  numbers  and  hard  to  spot   issues.    No  visibility  in  to  how   our  products  get  used.   Tomorrow:  Real  <me  insights  in  to   MRR,  upsell  opportuni<es,  and  churn.     Constant  feedback  on  how  customers   are  using  our  products.  
  25. 25. Subscrip<on  Essen<al  :  Iterate   G E T T I N G   I T   R I G H T   W I T H   T I M E   Pricing  v1.0   Pricing  v2.0   Pricing  v3.0  
  26. 26. Lessons  Learned   Start  early   B E S T   P R A C T I C E S   Seek  input   Ship  it   The  longer  you  put  it  off,  the  more  painful  it  gets   Get  buy  in  from  across  your  business     Do  your  homework  and  connect  with  others   Recognize  that  only  you  know  what’s  right  for  your  business     Gerng  it  done  is  more  important  than  gerng  it  perfect   Release,  experiment,  measure,  iterate  
  27. 27. Q&A   Thank  You!  

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