Selling onDemand paradox and your target audience

08 May

Selling onDemand paradox and your target audience

in Cloud, corporate IT, IaaS, LOB, Uncategorized

Is it the dizziness from dealing with IT for so long or a new found love for a 3 letter acronym - LOB (Line of Business). Why does every one talk about onDeman and LOB in one breath and one sentence. There are different models of offering an on demand solution. Each of the them could be (should be and is) for a different target audience. While it is correct to assume that SaaS (or applications on demand) is targeted towards LOB, the same cannot be assumed for PaaS and IaaS. Platforms are for developers and Infrastructure is for IT / developers. The fact that IaaS solutions should have a buy in from IT departments is where I find a break in the value chain.

If public clouds which offer IaaS optimizes data centers then there will be an inflection point where IT departments will have low tolerance for these solutions. Not because they don't want improvement, but because these solutions will undermine the effectiveness of the IT department. So essentially, these companies are selling to a set of users who will be displaced by buying these solutions. This logic alone makes IaaS a risky model especially if most investors and supporters think only of Line of Business. LOB will not buy Infrastructure services.  Isn't that the whole point of selling to LOB - they want on demand running solutions with low barriers to buy and deploy (and possibly bypass corporate IT). So for all the proponents, investors and evangelists of onDemand it is important to understand the different target customers for the different onDemand offerings and not put a blanket LOB assumption. How to sell IaaS to IT is a completely different animal and someday I hope to blog on the subject as well. For now I know that corporate IT is likely to use all the ammunition to deter public cloud adoption in their companies, unless they are forward thinking and understand that they get to move up the value chain as well.

copyright 2012 10jumps Llc.

copyright 2012 10jumps LLC.