We’ve all read about how cloud computing is "more than just a buzzword" or a passing phase. And we’re all well-versed in selling the benefits of cloud and managed services in terms of cost-savings, flexibility, managing complex tasks and only paying for what you use. There have also been plenty of wise words written about how …
Commissions are definitely a big barrier for salespeople to selling cloud services. For most companies the revenue from a cloud contract can only be recognised in the quarter in which it is delivered. A salesperson has a target for each quarter. That target combines licenses and services. In a cloud deal, the license component may be amortised over 2-3 years, i.e 8-12 quarters. So, for a given license deal, it requires about 10 cloud deals of a similar size to reach the same target. A salesperson has limited time to focus on deals to hit their targets. Where will they put their effort?
So, for those resellers who have made a commitment to the cloud either through investing in the infrastructure themselves or in partnership with another Service Provider, this is likely to be a big problem. I'm interested to hear from company principals and FD's to understand how they are incentivising their sales staff.
- Analysis Windows 10 is due in one month: Will it be ready?
- VPNs are so insecure you might as well wear a KICK ME sign
- Windows 7 and 8.1 market share surge, XP falls behind OS X
- NHS IT failures mount as GP data system declared unfit for purpose
- Looking forward to getting Windows 10 the day it ships? Yeah, about that...