The last in a series of three posts looking at why data discovery vendors should make the transition to the cloud. In this post, I’m looking more into the often sticky topic of profits, and how data discovery vendors are making the most of the cloud opportunity.
Money, Money, Money
At the end of the day, everything comes down to money – how much of it you can make, and where you can drive profits in a business. To put it concisely – the cloud is where you’ll make your money moving forwards.
Data discovery vendors are increasingly finding that their on premise, physical solutions no longer make fiscal sense – the budgets aren’t there, and nor is the desire. Customers want quick implementations, and easy-to-use features, which the cloud can support.
By updating their business model, data discovery vendors will be able to ensure that their businesses can sustain the rough ride in the economy, and seed the foundations for future growth strategies.
The cloud will be everywhere, and it will be a great opportunity for vendors to expand their offerings and offer services, instead of physical goods. This will result in ongoing revenue, and an easier-to-sustain licensing model, which can be flexible and cost-effective for any customer’s wants and needs.
The cloud will also help improve cash flow for vendors – there won’t be a heavy initial outlay on physical infrastructure to go directly into the customer, simply a scalable back-end solution that will grow with the customer’s. While initial outlay cost will be small compared with an enormous server for customers, vendors will be able to increase revenues through extra ‘seats’ and service maintenance.
While the cloud will require some adjustments from vendors in order to sit comfortably in their businesses, the market demands and fiscal benefits outweigh the initial work that needs to be done to update their business models. It will be a key differentiator for some time to come, and customers simply won’t stick with those who aren’t cloud-ready.