Marketing and sales in Cloud Computing

1. Ebru Gökalp
Fatih Özlü
10.11.2012

2. OUTLINE
1. MARKETING
• Economics of Sales & Marketing
• Traditional Sales & Marketing
• E-Mail Marketing
• Search Marketing
• Social Media Marketing
• Summary
2. SALES
• Business Models
• Contracts
• SLA
• Sales Compensation
• Installed base sales
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3. MARKETING
PAST
• Hiring Ad man TODAY
• Ad Campaign Advent of Internet
• Wall Street Journal
&
Rich Media
• Short & Sweet Tagline
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4. Economics of Sales & Marketing
• Significant investment in sales&marketing - %35
• The explosive growth of web conferencing post September’11
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5. Traditional Sales & Marketing
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6. Sales is a Team Sport
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CRMMore Efficient

7. E-Mail Marketing
• Alternative To Direct Mail
• Large Growth
• Economics are so compelling
Emailing to a list of 1000 people costs
$5 versus over $500 to send out direct
mail
• # of characters in the subject line (keep <50
) determines the effectiveness
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8. E-Mail Marketing
E-Loan Story
An email program remind prospective borrowers to complete their
mortgage applications
2 phases.
• 1st phase, after 30 minutes
• 2nd phase, 1 week later
reminded applicants to complete the process, provided a quick link
RESULT: 32% more applications were completed.
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9. Search Marketing
• Improving the volume & quality of traffic to
a Web site from search engines via search
results is IMPORTANT
• We click on natural search results more
often than the ads
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10. Search Marketing
ADVICES FOR OPTIMIZING NATURAL SEARCH
RESULT
• Build a FAQ into your Web site to capitalize on potential
customers searching for reference or problem solving information
• Blogs are great for generating traffic
• Have your community create content
• Work with a search engine savvy developer to make sure
• the meta content of your Web pages is optimized
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11. Social Media Marketing
If Facebook were a country it would be the world's 3rd largest in
terms of population, that's above the US.
 845 million active users worldwide**
Social networking now accounts for 22% of all time spent online in
the US*
FACEBOOK & TWITTER  NEXT GENERATION TELEPHONE
• Use hyper targeting to test new audiences
• Use the social graph and knowledge e to create a
more personalized online community.
• Use social networks to market yourself as an
individual to establish your brand.
*http://en.wikipedia.org/wiki/Social_media
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**http://www.business2community.com/social-media/the-importance-of-integrating-social-
media-marketing-0171531

12. Get Notorious
• Be notorious - Don't send a note from "your company.” Reach out
as an individual Name. Blogging is personal.
• Use video - but not an overproduced one. No talking heads-show the
product. Limit it to 30 seconds. Make me think: “Wow, that's
impressive!”
• Check out Digg - Look at the first few pages. See what formats are
popular, and use those. (Top 10's, video, photo essays, controversy,
"best ever’s, generally "this is so cool!").
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13. Educate& Select
Cloud service become more specialized and as the price point goes
down.
The reason no
sales person sold a TV is
that most consumers of
Plasma TVs
did their research online.
Selling
will be replaced by
education and selection.
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14. Summary
• The Internet changes everything used to be a corporate
tagline.
• While communicating to people, whether they find you
through search, email, or social networks, you still need
marketing.
• In the end, no matter how simple software, the act of
matching customer needs and your offer remains the role
of a quality marketing organization.
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15. SALES
• Business Models:
Traditional, Outsourcing, Hybrid,
SaaS
• Transform traditional models to others
• Increase your existing sales force
• Contracts
• SLA
• Sales Compensation
• Installed base sales
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16. Business Models
Traditional: software is licensed Hybrid: The company already
with a one time up-front fee and has products, distribution
support channels and sellings. The new
SaaS: find a way to thing is services
early getting money
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17. Transforming Traditional
Software Sales
Every model one software company worries about
cannibalization, in case delivery of software over the cloud.
If you adopt to model four, nothing changes, but a new
delivery option
Dou you want to manage our software or do you want us to
manage our software?
Do you want to pay for the software, hardware , thirty-party
software up-front or expense it over time?
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18. Example:Joe King On-demand
ADVICES FOR HOW TO SELL IN Joe King who led sales for Oracle On
MODEL FOUR Demand for 7 years and today is
Group Vice-President of JDA’s On
1-Make sure you find a team of sales that have Demand Business has first-hand
experince in selling both traditional software experience in how to sell when you
products and services. are in model 4.
2-Organize the sales teams around the current
delivery capabilities. Ensure the sales team
provides a solution that your company has
ability to deliver on time. Don’t sell the futures.
3-Train sell person (reps) to find customer
challanges that can be solved by your
company’s complete solution. Discuss
underlying infrastructure that supports solution.
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19. Selling New Application
Cloud Services
Model six similar to Model one.
Difference: the economics of sales process.
• average selling price < up-front license fee
BETTER THINGS:
• Your software is always ready to be used or quickly
configured.
• Deployed - no extra cost for the new customers.
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20. Example:Stratus Computers
TRADITIONAL SOFTWARE
COMPANIES Vs NEW MODEL SIX Stratus Computer is a
COMPANIES.
A model one software $250M / a year computer
company offered to do a company.
free 6 week discovery It is a big user of
process and scheduled application cloud services:
demo for 8 weeks later. Salesforce.com,
But the CIO preferred to QuickArrow, Eloqua,
go with model six Xactly, SpringCM,
solution and deployed the Ceridian, Halogen, WebEx,
whole system in 7 weeks. and Postini.
Model Six needs
10.11.2012 more volume

21. Contracts
• vary from model to model
• Three inches thick
• Negatioation
%85 contract negotiation finished less than a
In Q1 of 2007, Model 6
year
companies signed 75 %55 contract negotiation finished less than
large outsourcing deals six months
with a total amount of
5.7B Euro
%13 contract negotiation finished less than
three months
online click wrap agreements. Ex:Yahoo Terms of Service. The
model 6 terms allows customers on pay month-to-month, so
10.11.2012 contracts can be terminated with 30 days

22. SLA
• SLAs are heavily negotiated, In
model 3.
• what uptime means or what
penalties should be paid if the uptime
is not met?
Penalties: it lead the company to take
attention to keep the system up and
running all the day.(Blacbaud On
Demand contracts guarantee %99.9 )
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23. Example:Oracle’s Nordstrom’s
Guarantee
• Service levels in availability,
security, problem, change, and
performance management were
published and reported.
If a customer was not satisfied with the service for any reason, they
could request a rebate of %20 percent each month, no questions
asked.
So it guarantees the overall quality of the service and a leading way
to improve these services.
It is suggested to provide and publish the service levels to your
customers.
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24. Sales Compensation
GUIDELINES for sale compensation by
Callidus Software •Keeping salespeople
motivated is very
1-Keep your compensation challanging.
plans straight forward. Many
•What motivates one might
companies come up with plans
not motivate another
with dozens of variables
2-Report regularly, •Sales compensation is a
transparently. Reports crucial factor
delivered to payees at right
frequency , keeps motivation
3-Reward sales people for their
work
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25. Installed Base Sales
-focus on selling is to get Focus on learning about
new customer
-on selling a product for the customers and
large up-front money than personalize the offering
getting revenue on a
monthly or yearly period using that knowledge.
Example: Computer
architecture
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26. Pipelining
Years ago, every instruction took 5 clock cycles to execute. As a result, 7
instruction would take 35 clock ticks.
But some smart guys found an efficient way:
10.11.2012 If you could seperate instruction execution into 5 stages, you can execute 7
instructions in 11 ticks with the same clock speed..

27. Marketing&Sales Pipeline
•Our marketing&sales pipeline is no
different than the traditional way of
instruction execution.
•We finish one deal before we start the
next.
•But indeed same principle can be
applied to sales.
•As an example (Model 4), Oracle applications are used more than 10
000 companies. For each cycle, learn more about the customer, and
move customers from one stage to another stage. By providing more
services, etc. And also in a more parallel fashion.
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28. Thanks For Listening
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