The document discusses delaying gratification and how it relates to life outcomes and success. It then compares the sales and revenue models of on-premises software versus cloud-based software. For on-premises software, there is a larger initial investment but potential for more long-term revenue. Cloud-based software provides slower but smoother revenue growth. Effective sales processes focus on demonstrating real product value to customers rather than just initial perceptions. The conclusion encourages building future sustainable revenue streams rather than focusing only on short-term gains.

1. Tech Startup Day
The Cloud Challenge
Eugenia Forcat
Partner Business Evangelist DX
@eugeniaforcat

2. Cloud-Oriented-Partners Outperform Their Peers

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The
Marshmallow
Test
 Stanford 1970,
Walter Mischel
 Repeated around
the world
 Studies on Delayed
Gratification with
children (4-6 yrs)

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The Deal:
 1 Marshmallow now
 Or 2 if you wait

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The Deal:
 1 Marshmallow now
 Or 2 if you wait

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The Deal:
 1 Marshmallow now
 Or 2 if you wait
 2/3 of kids ate the
Marshmallow

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The Follow-up:
 ~18 years later
 Children who
waited had better
life outcomes
 SAT Scores,
Education, BMI

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So what does
this mean for
IT solution
providers?

10. Selling software
Two approaches.
On-premises software
Cloud software

11. • Customer engagement
Pricing and revenue

12. Customer segments
SaaP business model.
Want a powerful offering for large projects
Willing to pay a substantial amount for the product

13. Customer segments
SaaS business model.
Want a powerful offering for large projects
Willing to pay a substantial amount for the product
Small and medium
businesses
Simple and
easy-to-use
Small to
medium
Moderate

14. • Customer engagement
• Pricing model
Pricing and revenue

15. Subscription
 Such as per user per
month or per device
per year.
 Might allow advance
payment, such as
first year up front.
Per Unit
 Such as per
transaction, per
gigabyte of storage,
per connection, etc.
Free
 Provide free service
to one set of users,
then charge another
set of users, e.g.,
advertisers.
SaaS pricing
Three approaches.

16. • Customer engagement
• Pricing model
• Build and Track Revenue
Pricing and revenue

17. Revenue streams
SaaP business model.

18. Revenue streams
SaaS business model.
Subscriptions
A simple app doesn’t
need much training
Limited with a multi-
tenant service

19. Comparing SaaP and SaaS revenues
An illustrative example.
Time
Money
SaaP (On-Premises) Application
SaaS Application
Takes longer to
break even
Potential for more
long-term revenue
(and profit)
Slower but smoother
revenue growth
Larger initial
investment

20. Sales process
Comparing SaaP and SaaS sales.
Buying decision made for an
on-premises application
Buying decision made for
a SaaS application
Customer is
introduced to the
product
Customer has an initial
perception of the
product’s value
Customer has hands-on
experience with the
product
Customer
understands the
product’s real value

21. The Sales process
•Compensating the sales force
• Commission plan
• Seasonality
•Working with partners
• Less incentives for partners

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Focus on the future
revenue streams that
you can buildDon’t focus on the
marshmallow in front
of you
And may you build a
WEALTH of
Marshmallows
Thank You…