RightNow CSA - a game changer?

RightNow’s CSA - a game changer?
Dennis Howlett
http://www.accmanpro.com

Shock horror!
Outside SMB offering, many SaaS vendors want the equiv of on-prem lock in and almost no shared risk
The S in S_aaS has yet to become a reality

RightNow proposes CSA
A refreshing change
Innovation at the contracting and sales levels
Disruptive to existing vendors

What is CSA?
Customer Service Agreement
Comprehensive engagement model
Comes in 6 pieces

6 easy pieces
Annual Usage Alignment Up or Down
3 Year Price Commitment Plus 3 Year Renewal Price Cap
Annual Termination for Convenience
Annual Pools of Capacity
Cash Service Level Credits
Unlimited Capacity for 90-Day Pilots

Annual Usage Alignment
No need to anticipate future need
Re-balancing based on actual need

Price commitment
Essentially a 6 year fixed price
Provides certainty over a long period
Avoids unanticipated price hikes

Annual Termination
A ‘Get Out of Jail’ free card
Contrasts with lock in under any circumstances

Annual Pools of Capacity
Designed to allow peak usage variance (e.g. tax prep season)
Allows other seasonal variations (e.g. hospitality)
Avoids need to anticipate peak demand usage and cost accordingly

Cash service, credit levels
Outside SMB where credits are informally awarded, SLAs are weak
Aligns SLA risk with customer compensation

Unlimited 90 day pilot capacity
Try before you buy for 90 days
Allows easy ramp for proof of concept

Analysis
Similar to what we see in SMB plays, albeit more formalized
Represents a much fairer risk distribution
Results focused
Makes doing business easier
Changes the market dynamics

Potential impact?
Industry must respond. RNOW is now standing out
Financial analyst concerns

Advisory
RNOW has created equiv of SaaS Customer Bill of Rights - review
Consider alternative cost scenarios
Don’t forget functional fit: RNOW is B2C call center/email response management play
Consider other contracts

RightNow CSA - a game changer?

by Dennis Howlett on Mar 09, 2010

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RightNow CSA - a game changer? — Presentation Transcript

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