Got creative juices flowing in your tech-specific or sales-driven mind? Then you’ll surely remember when Adobe decided to turn the world of software sales on its head and sell its products ONLY in the cloud.
It shook the traditional foundations of software sales, but it worked and proves that ISVs can actually learn something about doing business in the cloud.
Here’s the background…
In 2011, Adobe announced the path it was planning to take with a solution housed only in the cloud. The only way for their customers to use future versions would be to sign up for a Creative Cloud subscription.
Now, the software is never out of date, the margins can be forecast with uncanny reliability, Adobe still owns this segment of the market, and it’s a lesson for all ISVs who might be scared.
It took only three years for Adobe to reeducate its primary customer, enjoy a much more accurate method for forecasting sales and revenue stream, and actually increase control over the customer experience. They can also upsell their customers new products any time they see the opportunity.
If an ISV follows suit, they can create more consistent and higher margins while providing clarity and reliability for their customers. It’s proof-positive that a new model is possible for any business that chooses to take control of its future.
If you’re interested in learning how Orbitera can help your business accelerate its transition to selling cloud-based software and services, we encourage you to contact us for a demo.