Click here to close now.



Welcome!

Microservices Expo Authors: Anders Wallgren, Pat Romanski, Jason Bloomberg, Liz McMillan, Elizabeth White

Related Topics: @CloudExpo, Java IoT, Microservices Expo, Linux Containers, Agile Computing, @BigDataExpo

@CloudExpo: 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.


@MicroservicesExpo Stories
As software organizations continue to invest in achieving Continuous Delivery (CD) of their applications, we see increased interest in microservices architectures, which–on the face of it–seem like a natural fit for enabling CD. In microservices (or its predecessor, “SOA”), the business functionality is decomposed into a set of independent, self-contained services that communicate with each other via an API. Each of the services has their own application release cycle, and are developed and depl...
With microservices, SOA and distributed architectures becoming more popular, it is becoming increasingly harder to keep track of where time is spent in a distributed application when trying to diagnose performance problems. Distributed tracing systems attempt to address this problem by following application requests across service boundaries, persisting metadata along the way that provide context for fine-grained performance monitoring.
The battle over bimodal IT is heating up. Now that there’s a reasonably broad consensus that Gartner’s advice about bimodal IT is deeply flawed – consensus everywhere except perhaps at Gartner – various ideas are springing up to fill the void. The bimodal problem, of course, is well understood. ‘Traditional’ or ‘slow’ IT uses hidebound, laborious processes that would only get in the way of ‘fast’ or ‘agile’ digital efforts. The result: incoherent IT strategies and shadow IT struggles that lead ...
More and more companies are looking to microservices as an architectural pattern for breaking apart applications into more manageable pieces so that agile teams can deliver new features quicker and more effectively. What this pattern has done more than anything to date is spark organizational transformations, setting the foundation for future application development. In practice, however, there are a number of considerations to make that go beyond simply “build, ship, and run,” which changes ho...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
SYS-CON Events announced today that AppNeta, the leader in performance insight for business-critical web applications, will exhibit and present at SYS-CON's @DevOpsSummit at Cloud Expo New York, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. AppNeta is the only application performance monitoring (APM) company to provide solutions for all applications – applications you develop internally, business-critical SaaS applications you use and the networks that deli...
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
If we look at slow, traditional IT and jump to the conclusion that just because we found its issues intractable before, that necessarily means we will again, then it’s time for a rethink. As a matter of fact, the world of IT has changed over the last ten years or so. We’ve been experiencing unprecedented innovation across the board – innovation in technology as well as in how people organize and accomplish tasks. Let’s take a look at three differences between today’s modern, digital context...
SYS-CON Events announced today that VAI, a leading ERP software provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. VAI (Vormittag Associates, Inc.) is a leading independent mid-market ERP software developer renowned for its flexible solutions and ability to automate critical business functions for the distribution, manufacturing, specialty retail and service sectors. An IBM Premier Business Part...
SYS-CON Events announced today that Catchpoint Systems, Inc., a provider of innovative web and infrastructure monitoring solutions, has been named “Silver Sponsor” of SYS-CON's DevOps Summit at 18th Cloud Expo New York, which will take place June 7-9, 2016, at the Javits Center in New York City, NY. Catchpoint is a leading Digital Performance Analytics company that provides unparalleled insight into customer-critical services to help consistently deliver an amazing customer experience. Designed...
The (re?)emergence of Microservices was especially prominent in this week’s news. What are they good for? do they make sense for your application? should you take the plunge? and what do Microservices mean for your DevOps and Continuous Delivery efforts? Continue reading for more on Microservices, containers, DevOps culture, and more top news from the past week. As always, stay tuned to all the news coming from@ElectricCloud on DevOps and Continuous Delivery throughout the week and retweet/favo...
In most cases, it is convenient to have some human interaction with a web (micro-)service, no matter how small it is. A traditional approach would be to create an HTTP interface, where user requests will be dispatched and HTML/CSS pages must be served. This approach is indeed very traditional for a web site, but not really convenient for a web service, which is not intended to be good looking, 24x7 up and running and UX-optimized. Instead, talking to a web service in a chat-bot mode would be muc...
In the Bimodal model we find two areas of IT - the traditional kind where the main concern is keeping the lights on and the IT focusing on agility and speed, where everything needs to be faster. Today companies are investing in new technologies and processes to emulate their most agile competitors. Gone are the days of waterfall development and releases only every few months. Today's IT and the business it powers demands performance akin to a supercar - everything needs to be faster, every sc...
At the heart of the Cloud Native model is a microservices application architecture, and applying this to a telco SDN scenario offers enormous opportunity for product innovation and competitive advantage. For example in the ETSI NFV Ecosystem white paper they describe one of the product markets that SDN might address to be the Home sector. Vendors like Alcatel market SDN-based solutions for the home market, offering Home Gateways – A virtual residential gateway (vRGW) where service provider...
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 ad...
Web performance issues and advances have been gaining a stronger presence in the headlines as people are becoming more aware of its impact on virtually every business, and 2015 was no exception. We saw a myriad of major outages this year hit some of the biggest corporations, as well as some technology integrations and other news that we IT Ops aficionados find very exciting. This past year has offered several opportunities for growth and evolution in the performance realm — even the worst failu...
Are you someone who knows that the number one rule in DevOps is “Don’t Panic”? Especially when it comes to making Continuous Delivery changes inside your organization? Are you someone that theorizes that if anyone implements real automation changes, the solution will instantly become antiquated and be replaced by something even more bizarre and inexplicable?
Welcome to the first top DevOps news roundup of 2016! At the end of last year, we saw some great predictions for 2016. While we’re excited to kick off the new year, this week’s top posts reminded us to take a second to slow down and really understand the current state of affairs. For example, do you actually know what microservices are – or aren’t? What about DevOps? Does the emphasis still fall mostly on the development side? This week’s top news definitely got the wheels turning and just migh...
Test automation is arguably the most important innovation to the process of QA testing in software development. The ability to automate regression testing and other repetitive test cases can significantly reduce the overall production time for even the most complex solutions. As software continues to be developed for new platforms – including mobile devices and the diverse array of endpoints that will be created during the rise of the Internet of Things - automation integration will have a huge ...
Providing a full-duplex communication channel over a single TCP connection, WebSocket is the most efficient protocol for real-time responses over the web. If you’re utilizing WebSocket technology, performance testing will boil down to simulating the bi-directional nature of your application. Introduced with HTML5, the WebSocket protocol allows for more interaction between a browser and website, facilitating real-time applications and live content. WebSocket technology creates a persistent conne...