Packaging Your IP for Differentiation, Part 4: Establishing the business case
Cloud computing brings immense benefits to customers by shifting the burden and risk of building, operating and owning the data center to cloud services providers and effectively turning IT into a pay-per-use utility. However, when IT becomes a utility, technology reselling partners are financially impacted by an ever improving self-service model, subscription pricing and the need to differentiate when their competitors are effectively offering the same utility. In this seven part series we look at how partners can package their own intellectual property (IP) assets to effectively differentiate and regain revenue lost to the cloud model.
- Part 1: Dealing with the cloud's disruption to the partner business model
- Part 2: Identifying your company expertise for packaging IP
- Part 3: Identifying your IP assets
- Part 4: Establishing the business case for packaging your IP
- Part 5: Defining customer scenarios for your packaged IP
- Part 6: Packaging your IP assets
- Part 7: Pricing your IP assets
Establishing the business case
Deciding whether or not to invest time and resources into packaging IP requires establishing a business case. The business case ought to be considered from both your company's point of view as well as the customer's. A financial return on investment calculation is needed from both perspectives. Key considerations include:
- How much did your company charge for
the product when it was
delivered as a one-off service?
The amount charged for the service should have been significant or at least the margin made on the service should have been ...
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