RightNow CSA - a game changer?

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RightNow's CSA could be a game changer for SaaS vendors that will need to evolve their business models to reflect the changing needs of customers. This presentation discusses the detail of the CSA announcement.

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RightNow CSA - a game changer?

  1. 1. RightNow’s CSA - a game changer? <ul><li>Dennis Howlett </li></ul><ul><li>http://www.accmanpro.com </li></ul>
  2. 2. Shock horror! <ul><li>Outside SMB offering, many SaaS vendors want the equiv of on-prem lock in and almost no shared risk </li></ul><ul><li>The S in S_aaS has yet to become a reality </li></ul>
  3. 3. RightNow proposes CSA <ul><li>A refreshing change </li></ul><ul><li>Innovation at the contracting and sales levels </li></ul><ul><li>Disruptive to existing vendors </li></ul>
  4. 4. What is CSA? <ul><li>Customer Service Agreement </li></ul><ul><li>Comprehensive engagement model </li></ul><ul><li>Comes in 6 pieces </li></ul>
  5. 5. 6 easy pieces <ul><li>Annual Usage Alignment Up or Down </li></ul><ul><li>3 Year Price Commitment Plus 3 Year Renewal Price Cap </li></ul><ul><li>Annual Termination for Convenience </li></ul><ul><li>Annual Pools of Capacity </li></ul><ul><li>Cash Service Level Credits </li></ul><ul><li>Unlimited Capacity for 90-Day Pilots </li></ul>
  6. 6. Annual Usage Alignment <ul><li>No need to anticipate future need </li></ul><ul><li>Re-balancing based on actual need </li></ul>
  7. 7. Price commitment <ul><li>Essentially a 6 year fixed price </li></ul><ul><li>Provides certainty over a long period </li></ul><ul><li>Avoids unanticipated price hikes </li></ul>
  8. 8. Annual Termination <ul><li>A ‘Get Out of Jail’ free card </li></ul><ul><li>Contrasts with lock in under any circumstances </li></ul>
  9. 9. Annual Pools of Capacity <ul><li>Designed to allow peak usage variance (e.g. tax prep season) </li></ul><ul><li>Allows other seasonal variations (e.g. hospitality) </li></ul><ul><li>Avoids need to anticipate peak demand usage and cost accordingly </li></ul>
  10. 10. Cash service, credit levels <ul><li>Outside SMB where credits are informally awarded, SLAs are weak </li></ul><ul><li>Aligns SLA risk with customer compensation </li></ul>
  11. 11. Unlimited 90 day pilot capacity <ul><li>Try before you buy for 90 days </li></ul><ul><li>Allows easy ramp for proof of concept </li></ul>
  12. 12. Analysis <ul><li>Similar to what we see in SMB plays, albeit more formalized </li></ul><ul><li>Represents a much fairer risk distribution </li></ul><ul><li>Results focused </li></ul><ul><li>Makes doing business easier </li></ul><ul><li>Changes the market dynamics </li></ul>
  13. 13. Potential impact? <ul><li>Industry must respond. RNOW is now standing out </li></ul><ul><li>Financial analyst concerns </li></ul>
  14. 14. Advisory <ul><li>RNOW has created equiv of SaaS Customer Bill of Rights - review </li></ul><ul><li>Consider alternative cost scenarios </li></ul><ul><li>Don’t forget functional fit: RNOW is B2C call center/email response management play </li></ul><ul><li>Consider other contracts </li></ul>

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