This document discusses strategies for Eastern European software developers. It covers cost versus value-based pricing, the evolution of Ukraine's IT industry, key trends and opportunities, and platform-led service delivery strategies. Examples are provided of big data and cloud computing projects. The presentation emphasizes building an enabling software platform and customizing it for multiple customers through software development services. Case studies are shared of startups doing large-scale data collection and applying machine learning techniques to cloud computing problems.

1. For Eastern European
Software Developers
By Russ Hertzberg
Vice President , Technology Solutions

2.  Value Complexity Service Models
 Cost vs Value Based Pricing
 Ukraine IT/Software Industry Evolution
 Key Trends and Opportunities
 Platform Led Service Delivery Strategies
 Anonymous Cases
 Question and Answer

3. Value
In
$$$
Complexity
(In Brainpower)
Staff
Augmentation
Staff Aug +
Project Mgmt.
Architect+Staff
Aug+ Proj. Mgmt
Product
Owner+Architect+
Staff Aug+Proj
Mgmt

4. Value
In
$$$
Complexity
(In Brainpower)
QC
Coders
BA/RM
Tech
Leads
UI/UX
Dev
Ops IaaS
Architect
Consulters
Platforms
App Customize &
Integrate
Software
Frameworks

5. Value
In
$$$
Complexity
(In Brainpower)
QC
Coders
BA/RM
Tech
Leads
UI/UX
Dev
Ops IaaS
Architect
Consulters
Platforms
App Customize &
Integrate
Software
Frameworks
People
Software
Solutions

6.  Cost Based Pricing Supports
Gross Margin Management
and Financial Control
 Different Prices for Different
Teams in Different Dev
Centers (Kiev/Lviv vs
Rhivne or Dnipro, for
example)
 Value Based Pricing is
Flexible to Customer
Situation
 Value Based Pricing Helps
Sales Team Adjust Pricing to
Help with Closing
Finance vs. Sales

7. Company
Stage of
Maturity
Shareholder Exit/M&A
Mid Stage Steady Growth
Early Stage High Growth
Startup/Survival

8. Company
Stage of
Maturity
Shareholder Exit/M&A
Mid Stage Steady Growth
Early Stage High Growth
Startup/Survival Coders QC
Tech
Leads
BA/RM UI/UX
Architect
Consulters
Dev
Ops IaaS
Software
Frameworks
App Customize &
Integrate
Platforms

9. Company
Stage of
Maturity
Shareholder Exit/M&A
Mid Stage Steady Growth
Early Stage High Growth
Startup/Survival

10. Company
Stage of
Maturity
Shareholder Exit/M&A
Mid Stage Steady Growth
Early Stage High Growth
Startup/Survival
Active
Founder
in USA
First USA
Citizen
Employees
Narrow
Target
Markets
Demand
Generation
Branding
Sales
Team
Formation
Thought
Leaders
Solution
Marketing
Structured
Sales Process
Global
Culture
Specialist
BoD
Employee
Shareholders

11. BIG DATA AND ANALYTICS:
 60% of Fortune 1000 Have
Completed a ‘Big Data’ Project
 “Outside talent may be the best
option”
 Startup Investing in Big Data
2008-2012: $4.9 Billion USD
 Startup Investing in Big Data, 2013
Only: $3.6 Billion USD
http://sloanreview.mit.edu/article/how-big-data-is-influencing-big-companies/
http://www.bigdata-startups.com/big-data-startups-investment-infographic-big-data-means-big-bucks/

12. CLOUD COMPUTING:
 Cloud Platform War Has
Major New Entries from
Google and Cisco:
Chasing AWS
 Sustained Use Pricing
 Sub One Hour Instance
Pricing
 Highly Disruptive New
Service Pricing: AWS
Redshift
http://www.rightscale.com/blog/cloud-cost-analysis/google-slashes-cloud-prices-google-vs-aws-price-comparison
http://techcrunch.com/2012/11/28/amazon-web-services-announces-redshift-new-data-warehouse-service/

13. SECURE COMPUTING:
 822 Million Data
Records Lost in 2013
Worldwide
 66.5% of the Lost
Records are USA Based
 Huge Vulnerabilities in
Retail Exposed
http://nakedsecurity.sophos.com/2014/02/19/2013-an-epic-year-for-data-breaches-with-over-800-million-records-lost/
http://resources.infosecinstitute.com/2013-data-breaches-need-know/

14.  Build an Enabling Software
Platform. For Example:
 Loading Big Data
 Securing Huge Amounts of
Unstructured Data
 Cleansing Relational Data
 Building Cross Platform
Mobile Apps
 And Many More
 Software Development
Services Are For Customizing
Your Platform
 The More Customers You
Customize Your Platform For,
The Better It Gets
Your Platform
Your
Development
Services
QC
Architect
Consulters
Coders
Tech
Writing
BA/RM
Tech
Leads
Dev
Ops IaaS

15. CASE #1 CASE #2
 Early Stage High Growth
 10 TB per Day Data
Collection
 Software Dev Services for the
Platform
 Dev Ops for the Platform
 Scales to Thousands of
Servers
 Very Lean Startup
 Markov Learning
Process
 Neural Network
 Applied to a Common
Cloud Computing
Problem

16. Russ Hertzberg
Vice President, Technology Solutions
Email: Rhertzberg@hotmail.com
Office phone: 770-255-3675
Mobile phone: 949-400-5055
Skype: russh2