Post on 14-Aug-2020
Cloud ISV Profitability
David LeBlanc
Channelnext Marketing Manager
davleb@microsoft.com
Which path are you on?
Transitioning from
On-Prem to Cloud ISV
Transitioning from
Project & Services to IP
Born in the Cloud ISV
with plans to grow
Better margins
Firms focused on selling SLA-based services have a GP up to 12% higher than those that don’t
Key steps for a
successful app
monetization
strategy
User Engagement
Monetization
User Acquisition
Analysis
• Social media, blog, email
• App review sites
• Paid app install ads
• User referrals
Measuring attribution is critical!
www.microsoft.com/store/apps/9NBLGGGZ5QDR?cid=twitter
string campaignId = await CurrentApp.GetCampaignIdAsync();
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55%31%
14%
In-app purchases
Advertising
Paid apps
More features to help you convert your user base to paid
Make more money from your existing ad inventory
Developer Revenue by Source
“
Nov Dec Jan Feb Mar
FY14 FY15
Product
development
User documentation
Product development—opportunistic
Onboarding process
Product development—strategic
Development methodology
Upgrade cycles
R&D initiatives
Service delivery
Redundancy, failovers
Third-party app ecosystem
Marketing
To Improve Marketing Effectiveness & Efficiency
Sales
Steps in Sales Process How is this Done? Steps in Sales Process How is this Done?
Cloud Sales Process: Customer Led, Support Driven
Can it be the same salesperson?
Selling cloud and on-premises
Hunters and farmers
Assumptions• 5-year model
• $10k bookings in month 1
• $2k monthly growth
5-year impact• At 2.5% churn, $(64,000)
• At 5% churn, $(90,000)
• 5-year model
• $10k bookings in month 1
• $2k monthly growth
• Expansion revenue of 2.5% to current customer base
Customer support—opportunistic
FAQ
Knowledgebase
Live chat
Customer support—strategic
% of overall revenue from recurring sources
Churn Rate %
aka.ms/profitabilitychallenge aka.ms/pwedam aka.ms/profitabilityscenarios aka.ms/profitblogaka.ms/profittool
http://aka.ms/profitabilitychallengehttp://aka.ms/pwedamhttp://aka.ms/profitabilityscenarioshttp://smartpartnermarketing.microsoft.com/http://aka.ms/profittool