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Introduction to Cloud Computing Business and Technology

Introduction to Cloud Computing Business and Technology

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Published by Todd Whittaker

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Published by: Todd Whittaker on Sep 12, 2011
Copyright:Attribution Non-commercial


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  • Model One: Traditional
  • Model Two: Open Source
  • Model Three: Outsourcing
  • Model Four: Hybrid
  • Model Five: Hybrid+
  • Model Six: Software as a Service
  • Model Seven: Internet
  • Cost of Software
  • Summary
  • Collaboration
  • Webex Story
  • Financial Applications
  • Concur Story
  • Netsuite Story
  • Human Resource Applications
  • Kenexa Story
  • Taleo Story
  • Successfactors Story
  • CRM for Marketing
  • Vocus Story
  • Omniture Story
  • Constant Contact Story
  • CRM for Sales
  • Salesforce.com Story
  • CRM for Service
  • RightNow Technologies Story
  • Vertical Applications
  • DealerTrack Story
  • Blackbaud Story
  • OpenTable Story
  • Cloud Service Stack
  • Network Cloud Services
  • Power Quality
  • Power Utilization Efficiency
  • Power Carbon Footprint
  • Economics
  • Business Models
  • High Growth Applications
  • Aperiodic Bursty
  • On Off Applications
  • Periodic Bursty
  • Storage Cloud Services
  • Specialized Cloud Services (aka Private Cloud)
  • Today’s Clouds are Small
  • Computer Carbon Footprint
  • Application Spectrum
  • Multi-tenancy
  • Software Development Lifecycle
  • Horizontal Platform Services
  • Microsoft Azure Story
  • Google AppEngine Story
  • Vertical Platform Services
  • Facebook Story
  • NetSuite Story
  • Testing
  • Customization
  • Traditional vs. Cloud Development
  • Change Management
  • eBay Story
  • Availability Management
  • Performance Management
  • Security Management
  • Care Rehab Story
  • Mexico Story
  • Search-based Applications
  • Economics of Sales & Marketing
  • Traditional Sales & Marketing
  • Email Marketing
  • e-Loan Story
  • Search Marketing
  • Social Media Marketing
  • Get Notorious
  • Educate & Select
  • Selling New Application Cloud Services
  • Contracts
  • Service Level Agreements
  • Sales Compensation
  • Installed Base Sales
  • Indirect Channels
  • Revenue Recognition
  • Monthly Recurring Revenue (MRR)
  • Cash
  • Cost of Sales: When to Hire for More Sales
  • Churn: Cost of Keeping a Customer
  • Financial Systems
  • Financial Analysts
  • Venture Capital
  • Right People, Right Stage
  • Culture
  • Scrape
  • Buy New
  • Remodel
  • World of Work

Most of the focus on selling has been on getting the new
customer, again a by-product of selling a product for large
upfront money versus driving revenue on a monthly or yearly
basis. While traditional sales has been on trying to know
something about a customer you don’t have – for the first time
companies can now focus on learning more about the customer
they do have and based on that information personalize the
offering using that knowledge.

Nowhere is this more obvious than in the case of Amazon.
But how can this be applied to higher ASP, less precise
products? Here we can take a lesson out of the notebook of
computer architecture. Computer architects have struggled with
how to make computers faster and faster. While turning up the
clock speed is one answer, another answer lies in being more
efficient about how an instruction is executed. Below is a
diagram showing the typical execution of an instruction. Years
ago every instruction took 5 clock cycles to execute, as a result
seven instructions would take 35 ticks of the clock. But over 10
years ago some smart guys figured out if you could separate
instruction execution into 5 stages, 5 parts, each taking the same
amount of time (1 tick of the clock) then instead of 35 ticks to
get 7 instructions executed you could do it in 11 ticks. So with



the same clock speed the computer was in the limit five times

Figure 8.1 Pipelining

So what does this have to do with sales? Our marketing &
sales pipeline is no different only the clock ticks are not so fast.
The conventional way of managing the pipeline is no different
than the traditional way of instruction execution – we finish one
deal, one instruction, before we start the next. But indeed the
same principles can be applied, and were applied to sell a
standardized Model Four service to 10,000 companies who
already owned Oracle applications. The trick is to engineer each
stage of the pipeline to last a fixed period of time (e.g., 2 weeks)
and then move customers from one stage of the pipeline to the
next. Then each stage could be optimized and specialized and
over time sales transactions could be much more parallel than
they are today. Anyone selling to a large installed base so
reconsider how – and not just treat it the same as potential



customers – where you have no idea who they area, nor what
experience they’ve had with the product.

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