Industry Focus: Technology

The shift to XaaS requires new business and revenue models

The move to “as a Service”, or XaaS (e.g., Infrastructure, Platform and Software as a Service) in the technology sector brings major change.

Economics shift from large, up-front, fixed purchases and service agreements to small, pay-as-you-go, variable purchases.

Buyers proliferate beyond the IT department to include all line-of-business owners. Selling shifts from push to pull and is increasingly data-driven. The classic pre-sales to sales to post-sales model is replaced by try, buy, adopt and utilize. New sales roles and skills are required, making go-to-customer models increasingly more complex and costly.

The big bet is that as adoption grows, churn can be minimized and expansion can be optimized to maximize customer lifetime value (CLV) and pay back heavy up-front customer acquisition costs.

Alexander Group’s technology practice increases the odds of success for technology companies making this bet. We address the needs of three distinct customer segments hybrid technology, pure play cloud software and digital industrial companies, each of which face unique trends and issues.

Contribute to the conversation. Share best practices, challenges and leading trends with other technology executives in Alexander Group’s Technology Sales and Marketing Networking Group on LinkedIn.
Join our Technology LinkedIn Group!

Hybrid Technology – Need to Evolve to Recurring Revenue Models

Transitioning from perpetual software licenses to subscription-based services changes all parts of go-to-customer strategy, structure and management for these traditional technology companies.

Hybrid technology companies are going through a massive (if short-term) shift in business models and structures that severely impacts margins. What used to be 90% margins on perpetual licenses is closer to 50% on recurring revenues. In addition, these players need to accelerate growth to catch the pure plays–and that requires accelerated and comprehensive go-to-customer transformations.

Pure Play Cloud Software Companies – Need to Scale Offerings and Incorporate Cross-Selling

Scaling their businesses as they mature and monetizing expansion revenue efforts are front and center for these “born in the cloud” companies which offer only XaaS.

These companies that pioneered SaaS models are now seeking affordable expansion growth to meet CLV targets. With few barriers to entry on technology, it’s easy for competitors to enter the market – but there is an enormous cost of sales to get started.

Learn more about our cloud sales practice and gain access to XaaS focused research.

Digital Industrial Companies – Need to Execute New Go-to-Customer Models

These traditional manufacturers need to learn to sell and support technology for products that are increasingly integrated with XaaS functionality, or build new business units focused on XaaS.

Digital industrial companies face the daunting challenge of building new businesses within a business or injecting XaaS with existing units – often with vastly different go-to-customer models. Success requires new and well executed operating models and supporting infrastructure, including coverage, CRMs, billing, provisioning and KPIs.

How We Help Technology Companies

Every Alexander Group client engagement benefits from our field tested tools, methodology and processes. Our core consulting methodology is built around the proven Revenue Growth Model™ to help customers build smart roadmaps and realize potential quickly and efficiently.

We combine industry experience, expertise, analytics and benchmarks, together with leading-edge IP to customize pragmatic, impactful solutions for our technology clients, from initial assessments through to implementation.

Some of our key services for technology companies include:

Growth Readiness Assessments
Create the roadmap for revenue growth
  • XaaS Readiness Assessment – detailed diagnostic assessments to enable XaaS transitions
  • Revenue Growth Blueprint – recommendations to drive scalable growth
XaaS Compensation Alignment
Optimize incentive and sales compensation programs
  • XaaS Compensation Assessment – identify areas of focus in a XaaS business model
  • XaaS Compensation Design – align XaaS growth objectives with organizational incentives
  • XaaS Design Topics – build and/or update frameworks for direct sales and channel partner programs
  • XaaS Compensation Program Management – develop principles, governance and administration
Indirect Channel Optimization
Maximize potential across partner channels
  • Channel Partner Remix – determine new partner requirements and capabilities for XaaS
  • Channel Program Assessment & Design – evaluate, build and/or update partner programs to identify gaps and support objectives
Revenue Expansion Optimization
Realize scalable growth in existing accounts
  • Expansion Revenue Plays – align activities and resources for post-sales revenue expansion
  • Expansion Coverage & Job Design – define process and jobs to support account expansion
  • Expansion TAM Modeling – quantify and model addressable expansion markets
  • Customer Use Case Design – Design and document customer usage of products and services

Join leading technology companies in the XaaS Sales Strategy Survey! Join leading technology companies to address critical industry go-to-customer model dynamics, best practices and industry-specific insights. Learn more»

Why Alexander Group?

The Alexander Group is skilled at addressing the varying and unique go-to-customer needs of all technology companies – across all segments and various phases of XaaS maturity.

Technology research and analytics to unlock potential – Our proprietary benchmarking database of sales time, sales cost, compensation and other key metrics, compiled from hundreds of sales teams over decades of projects, provides analytics to assess current versus future-state potential. We will help you understand and translate insights into competitive advantage.

Expert and experienced team – We grew up with tech–and we’ve been a part of this evolution since the beginning. Our decades of experience working with technology companies has equipped us with the domain and subject matter expertise to provide expert advice and guide smart decision making. We’ve helped multiple companies across industries successfully make large scale transitions. This experience has refined our approach to help you achieve results–on time and on budget.

Ongoing Support – Alexander Group’s technology team has a long history of sustained added value to our clients. These clients recognize the value in using expert 3rd party assistance to drive change more rapidly. We keep their in-house teams up to speed on trends and best practices provide them with the support they need meet and exceed their revenue growth objectives and make decisions with confidence.

Our commitment to concrete results on every client engagement will help you unlock maximum revenue growth. Now.

Contact us to learn more from our Technology Sales experts.

Practice Leadership

Ted Grossman

Ted Grossman

Sean Ryan

Sean Ryan

Chris Semain

Chris Semain

Igor Uroic

Igor Uroic