Show me the money Succeeding with the recurring revenue model Mark Emanuelson Atlantic Technologies

Who is Atlantic Technologies? We deliver cloud apps CRM Mobile Contact Centre ERP BI For leading clients With our partners

Show me the money

Customer concerns CIO Concerned about: Security Support Experience Installed base Business Concerned about: Growing revenues Reducing costs Productivity Mobile, social, digital

Prebuilt Application Components Fewer Developer Hours Scale to More Apps Faster Updates Subscriptions and perpetual contracts Minimize Churn Build Loyalty Shared revenue and reward models Lower TCO Collaborate with Partners Benefits of recurring revenue

Don’t run it same as traditional business Financial processes Watch fixed costs Order-to-cash Follow indicators Pursue a different go to market Build programs to encourage usage Track usage metrics Measure adoption Test new features Spot potential issues Invest in lead generation Innovate marketing Test drives for leads Track lead metrics Reward activities

“Build it and they will come?” Tune your offer Correct pricing Sales discipline Targeted promos Don’t neglect to develop the market Customer success and community Share success stories Reward for references Build user community Great intelligence Establish customer success team Drive satisfaction Renewals are key Ongoing education Build references

Focus on agile development Waterfall not suited Rapid iterations best Release frequently Collect feedback Don’t rely on traditional methods Promote an API strategy Open API strategy Easier to integrate Partner with others Drives innovation Leverage cloud development tools Not from scratch Pick a platform Do what you do best Outsource the rest

Compensating sales Pay later On subscription Compensate based on percentage of bookings over time + Optimized cash flow - Least incentive Pay now Pay later Some commission up front, and rest based on revenue + Good for farmers - Lower sales comp Pay now On contract Sales team comp on full contract value or first year’s revenues + Good for hunters - Risk in cash flow

Compensating partners Resale Margin $$$$ Partner buys licenses and resells to end user + Partners pushing sales - More risky for partner No compensation 0 Partner makes money on services only + Easy to admin - Less incentive Pay Commission $$ Partner provided incentive to sell licenses + On-boarding fast - Who gets credit

Keys to success Pursue a different go-to-market Easy to provision, easy to upgrade Develop community and success stories Choose the right incentive compensation Pay close attention to cash flow

ATLANTIC TECHNOLOGIES Mark Emanuelson Atlantic Technologies Tower 42, 25 Old Broad St. EC2N 1HN, London, United Kingdom Phone: +44 (0)