1. PS Best Practices in the Cloud Begun Consulting © Begun Consulting 2009, 2010

2. PS in the Cloud © Begun Consulting 2009, 2010 2 Study Process Best practices interviews –10 companies –CEO or VP/Director of PS or Services –Mix of sizes, software types, and maturity levels Follow-up written survey

3. PS in the Cloud © Begun Consulting 2009, 2010 3

4. 4 PS Best Practices in the Cloud - Study Highlights

5. PS in the Cloud © Begun Consulting 2009, 2010 5 Client Services Themes Very broad range of delivery effort –Delivery effort/time varies considerably –Different models (within vendor) for different customer bases and/or product configurations –Goal is to minimize implementation time, both person (especially vendor) and elapsed Self service is not necessarily seen as goal Customer expectation setting is a key factor that impacts most important metrics

6. PS in the Cloud © Begun Consulting 2009, 2010 6 Client Services Themes (cont) Continual customer satisfaction and success are critical –Key to retention and increased adoption/usage –Not just a services responsibility Must be a pervasive company value and strategy, not an afterthought or band-aid DNA matters, both vendor’s and customer’s

7. PS in the Cloud © Begun Consulting 2009, 2010 7 Services Effort Dependencies Complexity of problem that software solves –Complexity dimensions (both quantity and complexity within dimensions matter) Transaction processing Workflow Data integration Analytics Features / functions Rules Customer expectations, motivation, cooperation, and capabilities

8. PS in the Cloud © Begun Consulting 2009, 2010 8

9. 9 Services Effort Dependencies (cont) Product maturity and x-abilities –Broad and easy configurability is the key Tailored services models and phasing Services infrastructure maturity –Methodology and process –Tools (e.g., templates) and systems –Project discipline & customer management –Staff skillsets As companies mature, these improve

10. PS in the Cloud © Begun Consulting 2009, 2010 10 Factors Impacting Customer Sat & Increased Subscription Revenue Product features/functions Customer expectation setting in pre-sales Active post-sales management More/better self-service capabilities More/better training/education

11. PS in the Cloud © Begun Consulting 2009, 2010 11 Services Metrics Customer retention, satisfaction, usage Person hours to implement Services margin Days to-live Initial services revenue - as % of ARR Support case close time, initial response time, and cases per support person

12. PS in the Cloud © Begun Consulting 2009, 2010 12 PS Best Practices in the Cloud - Other Significant Findings

13. PS in the Cloud © Begun Consulting 2009, 2010 13 Pre-Sales PS involvement if non-standard and/or complex –Otherwise sell implementation packages –Tools help standardize and contain scope Focus on customer approach and attitude as well as feature/function needs Expectation setting is critical

14. PS in the Cloud © Begun Consulting 2009, 2010 14 Activation / Implementation Vendor effort from 3 hours to mid 1000s –Multiple models, 100% self-service at low end Minimize data integration work Tools are important - templates, task lists, configurators, pre-configured systems Process - phasing, discipline, assurance Consultants - less technical, remote

15. PS in the Cloud © Begun Consulting 2009, 2010 15 Training Pervasive, all types of media, role-based Becomes critical when implementation is significantly self-service Typically included in subscription fee Low touch for orientation and in-context; low/no touch at low end; higher touch is part of implementation Training and documentation coordinated

16. PS in the Cloud © Begun Consulting 2009, 2010 16 Technical Support Self service is key to leverage –Knowledgebases –How ‘to’s Traditional organizational structure, case management, and metrics –Web emphasis as media –Segment cases - ops, how to, product Career path of engineers to implementation

17. PS in the Cloud © Begun Consulting 2009, 2010 17 Post Sales Support & Add-ons Approach ranges from opportunistic to aggressive Premium tech support Follow-on training Additional implementation, optimization Add-ons -- report writing, admin, reviews Delivered ad hoc (T&M or fixed) or via TAM (mainly for larger customers)

18. PS in the Cloud © Begun Consulting 2009, 2010 18 Partners (Implementation) In general not as prevalent as in traditional software companies Used more for complex applications and when company mature Some use at low end, ‘solution center’ Some do not use at all and point to as success criteria

19. PS in the Cloud © Begun Consulting 2009, 2010 19 PS Best Practices in the Cloud - Key Survey Results

20. PS in the Cloud © Begun Consulting 2009, 2010 20

21. PS in the Cloud © Begun Consulting 2009, 2010 21

22. PS in the Cloud © Begun Consulting 2009, 2010 22

23. PS in the Cloud © Begun Consulting 2009, 2010 23 If you have any comments or questions, or would like to discuss aspects of the study in more detail, please contact: Alvin Begun Begun Consulting abegun@begunconsulting.com (650) 533-4950