Click here to close now.

Welcome!

Linux Containers Authors: Roger Strukhoff, Pat Romanski, Carmen Gonzalez, Elizabeth White, Liz McMillan

Related Topics: CloudExpo® Blog, Java IoT, @MicroservicesE Blog, Linux Containers, Agile Computing, BigDataExpo® Blog

CloudExpo® Blog: Article

Entrepreneurship and the Enablement Economy

At its best, the Software-as-a-Service model is about enabling the success of customers

When focusing on one element of a SaaS provider to evaluate, it should not be the technology it is providing today but its commitment to finding new ways to succeed in the future. This kind of agility that goes beyond technology is why SaaS is so loaded with potential for entrepreneurs.

With the barriers to entering the communications market nearly eliminated, this next wave of entrepreneurs have an opportunity to focus on enabling the success of their customers through sourcing, developing and delivering the technologies they need. It is a mindset shift that is critical to leveraging the cloud delivery model to its fullest potential. This is about not just delivering features or functionalities, but helping customers to shape agile, efficient and successful businesses.

Engage, Educate, Enable, Succeed
The most exciting opportunity for entrepreneurs in the cloud is to use the flexibility it offers to co-create, refine and evolve new enterprise services. A SaaS provider has the freedom to change the services it offers with input from across the value chain, as long as they remain focused on the core aspect of their business where they add value: enablement. Whether they offer supply chain management software through to cloud communications, the service is a tool for their enterprise customers to drive efficiency, grow and increase profitability.

Services have been decoupled from infrastructure and that means more freedom to explore new ideas, innovations and business models. It also means sellers and buyers can have a greater influence on one another. An innovative SaaS provider can influence what their customers sell and how they sell while creating a feedback loop that sees services evolve rapidly to meet customer needs.

The relationship between the buyer and seller begins with outlining the business objectives of the customer and it's up to the SaaS provider to shape a service offering that will enable the customer to succeed. This takes a consultancy-based sale and evolves it into an ecosystem that extends beyond the point of sale.

At its most advanced, the SaaS provider can work with customers to co-create and develop the services that will ultimately help meet their business objectives. That is the goal. Not delivering a new technology but clearly having impact within the customer's business and measuring the results of the engagement. When business and IT become aligned, the SaaS provider has to become increasingly adept at using their service platform to influence their customer's businesses.

It also works the other way. SaaS providers learn from customers and at the same time play a role in educating their customers to ensure that they are using the services effectively or, in the case of the channel, are skilled in selling the new services being provided. If it will help the customer to achieve its goals, the SaaS provider can educate its customers' sales staff and arm them with new skills to take these services to market. In this way, enablement means extending the relationship to include not just learning from customers but guaranteeing the success of the operation through education and sharing experience and expertise.

Entrepreneurs in Enablement
The opportunity for entrepreneurs is in creating businesses focused on shared value that evolves the enterprise IT channel model to best use the characteristics of the cloud. This is about focusing less on shifting units or seats and more on creating sustainable and profitable businesses dedicated to helping customers transform their operations and increase profitability.

Why would an entrepreneur be interested in this space? SaaS businesses that are focused on enablement have an advantage over competitors and deliver unique advantages. The closeness that they develop with their customers gives them high rates of customer retention and stickiness as well as a rapid path to differentiation.

Technologies and services will always change but if the business is dedicated to finding new ways to serve customers and evolve their offering then they will always be relevant. If a service provider anticipates emerging customer demand combined with listening and reacting to customer feedback, these customers don't need to look elsewhere for new services. Price comparison also is not central to decision making, ensuring that they do not compete on price but rather on the quality of the service they offer and the real business results they enable for customers.

Similarly, they are able to differentiate their offerings in the long term with more customers feeding into their service creation and refinement, making it easy to anticipate the needs of new customers. This in turn helps them to win more business.

By focusing on using cloud services to enable the success of customers, they create an ecosystem where customers get better services based on feedback and development while new customers become easier to obtain because their needs can be anticipated. Costs of sale are mitigated by long-term relationships, which increase profitability, and the business is able to tap recurring revenue streams.

While this might not appear as exciting as the success stories from the consumer communications market like WhatsApp, focusing on enablement builds dynamic businesses that are flexible and largely future-proof. The model works hard for both the buyer and the seller.

An Evolution
The cloud is ready to enter a new phase of its evolution where the technology is understood and the advantages are leveraged to build a healthy value chain. Entrepreneurs who recognize the opportunity to building businesses around enablement will have a lasting impact on their customers and the market.

SaaS has demonstrated how service development and management can sit outside of a business but that's only the first step. Thinking bigger about how enterprises are served and matching technology to business results is an exciting and logical progression. It will open new doors for both SaaS providers and customers to grow together and intertwine a value chain that has previously run from A to B from the provider to the customer.

The future IT and communications services delivered via the cloud will be shaped by the entrepreneurs that go beyond just the technology and look at how the relationship can develop. Enterprise customers simply want better solutions to meet their needs and are ready to work with providers that have a new approach dedicated to their success.

More Stories By Alan Rihm

Alan Rihm is CEO, managing Partner, and a member of the CoreDial, LLC board. He sets strategic direction for the company, and works closely with the board and management team to fulfill on the team’s commitment to its “hedgehog strategy” (see Jim Collins book ‘Good to Great’ for more on this concept).

Alan organized the spin-off and formation of CoreDial, and joined the company as CEO in 2005. He has been instrumental in establishing the company as one of the leading services delivery platforms for private label cloud communications. Under his leadership the company has experienced tremendous revenue and channel partner growth, as well as industry leading sales and operational key metrics.

Alan has been a successful entrepreneur in the Philadelphia region since 1995, and has a deep background in guiding software and service companies to critical mass and profitability. He is a graduate of Drexel University.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


@ThingsExpo Stories
SYS-CON Events announced today that BMC will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. BMC delivers software solutions that help IT transform digital enterprises for the ultimate competitive business advantage. BMC has worked with thousands of leading companies to create and deliver powerful IT management services. From mainframe to cloud to mobile, BMC pairs high-speed digital innovation with robust IT industrialization – allowing customers to provide amazing user experiences with optimized IT per...
2015 predictions circa 1970: houses anticipate our needs and adapt, city infrastructure is citizen and situation aware, office buildings identify and preprocess you. Today smart buildings have no such collective conscience, no shared set of fundamental services to identify, predict and synchronize around us. LiveSpace and M2Mi are changing that. LiveSpace Smart Environment devices deliver over the M2Mi IoT Platform real time presence, awareness and intent analytics as a service to local connected devices. In her session at @ThingsExpo, Sarah Cooper, VP Business of Development at M2Mi, will d...
The Industrial Internet revolution is now underway, enabled by connected machines and billions of devices that communicate and collaborate. The massive amounts of Big Data requiring real-time analysis is flooding legacy IT systems and giving way to cloud environments that can handle the unpredictable workloads. Yet many barriers remain until we can fully realize the opportunities and benefits from the convergence of machines and devices with Big Data and the cloud, including interoperability, data security and privacy.
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In this session, James Kirkland, Red Hat's Chief Architect for the Internet of Things and Intelligent Systems, will describe how to revolutionize your architecture and...
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, discussed single-value, geo-spatial, and log time series data. By focusing on enterprise applications and the data center, he will use OpenTSDB as an example t...
We’re entering a new era of computing technology that many are calling the Internet of Things (IoT). Machine to machine, machine to infrastructure, machine to environment, the Internet of Everything, the Internet of Intelligent Things, intelligent systems – call it what you want, but it’s happening, and its potential is huge. IoT is comprised of smart machines interacting and communicating with other machines, objects, environments and infrastructures. As a result, huge volumes of data are being generated, and that data is being processed into useful actions that can “command and control” thi...
All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo, June 9-11, 2015, at the Javits Center in New York City. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using the URL as a basic building block, we open this up and get the same resilience that the web enjoys.
We are reaching the end of the beginning with WebRTC, and real systems using this technology have begun to appear. One challenge that faces every WebRTC deployment (in some form or another) is identity management. For example, if you have an existing service – possibly built on a variety of different PaaS/SaaS offerings – and you want to add real-time communications you are faced with a challenge relating to user management, authentication, authorization, and validation. Service providers will want to use their existing identities, but these will have credentials already that are (hopefully) i...
SYS-CON Events announced today that MetraTech, now part of Ericsson, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Ericsson is the driving force behind the Networked Society- a world leader in communications infrastructure, software and services. Some 40% of the world’s mobile traffic runs through networks Ericsson has supplied, serving more than 2.5 billion subscribers.
Thanks to widespread Internet adoption and more than 10 billion connected devices around the world, companies became more excited than ever about the Internet of Things in 2014. Add in the hype around Google Glass and the Nest Thermostat, and nearly every business, including those from traditionally low-tech industries, wanted in. But despite the buzz, some very real business questions emerged – mainly, not if a device can be connected, or even when, but why? Why does connecting to the cloud create greater value for the user? Why do connected features improve the overall experience? And why do...
SYS-CON Events announced today that O'Reilly Media has been named “Media Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York City, NY. O'Reilly Media spreads the knowledge of innovators through its books, online services, magazines, and conferences. Since 1978, O'Reilly Media has been a chronicler and catalyst of cutting-edge development, homing in on the technology trends that really matter and spurring their adoption by amplifying "faint signals" from the alpha geeks who are creating the future. An active participa...
Imagine a world where targeting, attribution, and analytics are just as intrinsic to the physical world as they currently are to display advertising. Advances in technologies and changes in consumer behavior have opened the door to a whole new category of personalized marketing experience based on direct interactions with products. The products themselves now have a voice. What will they say? Who will control it? And what does it take for brands to win in this new world? In his session at @ThingsExpo, Zack Bennett, Vice President of Customer Success at EVRYTHNG, will answer these questions a...
The 4th International Internet of @ThingsExpo, co-located with the 17th International Cloud Expo - to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA - announces that its Call for Papers is open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and assessments, including a decade of leading incident response and digital forensics. He is co-author of t...
The Internet of Things is a misnomer. That implies that everything is on the Internet, and that simply should not be - especially for things that are blurring the line between medical devices that stimulate like a pacemaker and quantified self-sensors like a pedometer or pulse tracker. The mesh of things that we manage must be segmented into zones of trust for sensing data, transmitting data, receiving command and control administrative changes, and peer-to-peer mesh messaging. In his session at @ThingsExpo, Ryan Bagnulo, Solution Architect / Software Engineer at SOA Software, focused on desi...
The multi-trillion economic opportunity around the "Internet of Things" (IoT) is emerging as the hottest topic for investors in 2015. As we connect the physical world with information technology, data from actions, processes and the environment can increase sales, improve efficiencies, automate daily activities and minimize risk. In his session at @ThingsExpo, Ed Maguire, Senior Analyst at CLSA Americas, will describe what is new and different about IoT, explore financial, technological and real-world impact across consumer and business use cases. Why now? Significant corporate and venture...
While great strides have been made relative to the video aspects of remote collaboration, audio technology has basically stagnated. Typically all audio is mixed to a single monaural stream and emanates from a single point, such as a speakerphone or a speaker associated with a video monitor. This leads to confusion and lack of understanding among participants especially regarding who is actually speaking. Spatial teleconferencing introduces the concept of acoustic spatial separation between conference participants in three dimensional space. This has been shown to significantly improve comprehe...
Today’s enterprise is being driven by disruptive competitive and human capital requirements to provide enterprise application access through not only desktops, but also mobile devices. To retrofit existing programs across all these devices using traditional programming methods is very costly and time consuming – often prohibitively so. In his session at @ThingsExpo, Jesse Shiah, CEO, President, and Co-Founder of AgilePoint Inc., discussed how you can create applications that run on all mobile devices as well as laptops and desktops using a visual drag-and-drop application – and eForms-buildi...
There will be 150 billion connected devices by 2020. New digital businesses have already disrupted value chains across every industry. APIs are at the center of the digital business. You need to understand what assets you have that can be exposed digitally, what their digital value chain is, and how to create an effective business model around that value chain to compete in this economy. No enterprise can be complacent and not engage in the digital economy. Learn how to be the disruptor and not the disruptee.