Enterprise IT ISVs are Driving Market Interest in Cloud Computing Options

We’ve written frequently in this blog on the topic of cloud computing. Specifically, we’ve discussed the claims made by other reporters on actual levels of demand from enterprise IT markets for cloud systems. We’ve tried to consistently inject a skeptical, contrarian view into the discussion. Much of our opinion can be directly attributed to realities:

  1. an ample amount of published material on the topic of enterprise CIO reluctance to part with the control, and relative security of on premises data centers.
  2. and, as well, lots of published material about what seems to be an ever growing number of successful attempts to compromise prominent cloud applications and web sites by malicious parties.

Based upon these two points, up until very recently, we had a lot of confidence in the correctness of our position.

But now we need to acknowledge that the claims of growing interest on the part of enterprise organizations, which have been widely publicized are making more sense. What we’ve determined is that the real driver of this emerging trend is not the enterprise consumer. Rather, we see ISVs like Oracle, Microsoft, Adobe and even OEMs like HP and Dell creating this wave of interest, by actively prodding CIOs to move forward on a transition to cloud computing options.

We think ISVs see cloud computing options as a method of substantially lowering a whole set of costs that would otherwise be necessitated by continued development of on premise, per machine systems. It doesn’t take much thought to understand that writing browser client is, in fact, a much less costly undertaking than writing Windows, and/or Mac OSX clients. Further, cloud applications can be updated once to serve many, many — if not thousands — of end points. Bottom line: cloud delivery affords ISVs a viable method of squeezing more legitimate profits out of a production system that has become truly a commodity for enterprise markets.

Of course, our position is predicated on our assumption that desktop computing applications, including familiar office applications, together with collaboration solutions and document retention systems, have all become enterprise commodities. As commodities, the real task for manufacturers is to lower actual product costs to ensure the profitability of products. There are few, if any less expensive methods of serving and maintaining systems than via web servers and browser clients. Therefore, we can’t help but conclude that ISVs are doing much more pushing than markets generally appreciate — and for good reason.

If we can accept this position as highly plausible, then the recent changes in fortune for PC hardware manufacturers makes more sense, as we will explore in the next post to this blog.

© IMB Enterprises, Inc. & Ira Michael Blonder, 2012 All Rights Reserved


Marketing Communications Expertise is in High Demand for the Enterprise IT Software Market

Much of the methodology implemented by the Google search engine to produce the linear, ranked results to search queries, as well as the methodology used by its competitors to produce similar results, is based upon analysis of text information found on web sites. This methodology, we argue, applies not only to how web site content is processed by Google’s famed algorithm, but, further, to how the actual authority of inbound linking web sites is established with regards to specific key word searches. This ranking methodology has been in use since the inception of Google as a search engine, meaning going back to the late 1990s. Needless to say, in today’s enterprise IT ISV market, the writers who produce all of this editorial content are experiencing high demand. Therefore, enterprise IT ISVs looking to staff up with these talented individuals should budget appropriately.

We do not see these surroundings changing anytime soon. Therefore, if the quality of marketing communications (MARCOM) content is a truly mission-critical factor for your business (we need to note that we are completely confident that a mission-critical role for MARCOM makes sense in today’s market), than plan accordingly. Taking the risk of missing the mark on a market message is not to be advised. As we have written extensively here in this blog, enterprise IT software buyers in 2012 are very much a new breed that is short on conversation, long on independent research, and not very open to outside opinion. Better get the right message to them than to risk a product launch that fails to generate “escape velocity.”

But hitting the mark does not need to mean an expensive series of acquisitions, that would necessarily include:

  1. Staffing up with a useful MARCOM expert
  2. Signing up with a SaaS lead management service like Marketo or Hub Spot
  3. Commencing an online advertising campaign
  4. or an Ongoing Organic Search Optimization Program
  5. or, finally, an Integrated Direct Marketing effort

We think it is possible to make a right choice with #1, above, and then proceed to #s 3, 4, and 5. We think an enterprise IT ISV can skip #2 and still do very well as long as the choice of #1 is a “right” selection.

If you run an ISV business, you ought to look carefully into the quality of your current MARCOM content. We can help you put together a useful picture of how enterprise IT software buyers are receiving your content. We can also help you find the right individual for your MARCOM expert staffing requirement. Please call Ira Michael Blonder at +1 631-673-2929 to further a discussion about our retained consulting services. Plans begin as low as $3200.00 per month (3 mos minimum). You may also email Ira at imblonder@imbenterprises.com.

© IMB Enterprises, Inc. & Ira Michael Blonder, 2012 All Rights Reserved


An Integrated Marketing Method is the Best Solution for Ongoing Production of Sales Leads

In 2012 an integrated direct marketing method is the best option for tech innovators who need to sell products and/or services to enterprise business and large groups of technology users in the public sector.

What Is Integrated Direct Marketing in 2012
We use the term integrated direct marketing to refer to simultaneous implementation of the following 6 product promotional tools:

  • Online Content including so-called web 1.0 and web 2.0 activities
  • Search Engine Optimization for targeted key words
  • Product Promotion via Social Media
  • Direct Mail Product Promotion
  • Telephone prospect contact including telemarketing and teleprospecting
  • In person prospect contact including visits, conference participation, etc

We are confident that tech innovators, regardless of market engagement strategy (under the radar vs overt), can successfully build long term sales leads programs through a product marketing program that includes each of the above 6 components

Why are 4 of the 6 tools specific to electronic media?
As the result of substantial improvements in the quality of information delivery methods, principally over Internet data communications protocols, more potentially relevant information is available to buyers than ever before at substantially lower cost. This information cornucopia, together with several years of global economic downturn, has spawned the development of “new” buyer who generally will not engage with sales personnel until:

  1. Business needs have crystallized into a tangible form and
  2. An Initial set of potential solutions have been collected that can satisfy (1)

Therefore, tech innovators need to build and manage online content that will appeal, persuade, convince tech buyers in 2012 to reach out to establish contact. This imperative does not preclude the use of direct marketing tools like targeted email, direct mail and outbound telephone contact campaigns. Rather, this imperative provides a complement that, depending upon specific milestones in a business plan, may, in fact, prove to be essential to the success of a business plan. To put it simply, ignore online to your peril in 2012.

If you share our point of view, then you should be able to understand why the best method of addressing these market realities for enterprise tech products is to either install an internal function vested with oversight over this integrated marketing method, or to secure the services of a firm that can outsource this function for your business. We think it makes total sense (in terms of cost) for early stage, funded, tech innovators to opt to outsource this function. We welcome opportunities to discuss this method. Please contact Ira Michael Blonder at +1 631-673-2929 to further a discussion. You may also email Mike at imblonder@imbenterprises.com.

© IMB Enterprises, Inc. & Ira Michael Blonder, 2012 All Rights Reserved