Transforming On-Premise Offerings to a Cloud Model: Five Keys for Solution Provider and ISV Success

More and more customers are attracted to the cloud for its intuitive, easy-to-adopt design. CIOs are more eager than ever to adopt such solutions, with 70 percent mapping out a cloud-centric IT strategy for 2016 according to IDC's Cloud Services: Global Overview. And in turn, solution providers, VARs, and ISVs are evolving their solutions that have traditionally been deployed on-premise. It's no surprise that prioritizing the cloud adds to a brand's value proposition - IDC found that those that have taken the leap have cited a 10 percent growth in revenue over competitors sticking with legacy methods.

However, the transformation process isn't an easy one, and Microsoft Dynamics and add-on solution providers must do their homework before migrating their offerings into a cloud delivery model. And end customers should expect transparency about "what's under the hood" of their cloud solution . Now is the time to embrace the cloud, and here are five principles that can help ensure big results:

1. Stay financially conscious: If you've looked into offering more cloud solutions to your customers, you've likely discovered that the working capital required for a cloud business model is much higher up-front. The traditional on premise model, selling software licenses for example, helps pay for the day-to-day business operations at the beginning of a new project.  But in a cloud model, selling subscriptions, creates a longer ramp up time for working capital. A major cloud migration demands high-level coordination of financial resources. From short-term capital investment strategies to long-term maintenance and operational expenses, a company must analyze and manage itself through the unique and evolving financial demands of the off-premise arena. During this shift, it is critical to establish short and medium term cash flow requirements and understand the business' key performance indicators.

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