Wednesday, March 30, 2011

Buyer Processes for Software and Hardware are Changing

As more business software moves to a cloud-based model, something else is going to change: The way business customers buy software and applications. To an extent probably not yet appreciated, a shift to Internet-delivered software makes it easier for business buyers to focus on business outcomes, not "speeds and feeds."

Buyers will start to focus less on "features" and start to concentrate on the quality of business outcomes enabled by technology, and not the technology itself, said Peter O’Neill, Forrester Research analyst.

That should have implications for sales teams, as it suggests the typical buyer is going to be inclined to look for a discussion of how a particular solution helps an organization boost its chances to grow revenue, or conversely how a given solution helps an organization reduce its costs in some measurable way.

As always, it is a good bet that the more interesting stories will revolve around "growing revenue" rather than "reducing cost." For some suppliers, this will represent a challenging shift. All too often, a hosted IP telephony discussion, or a potential new premises phone system sale, will center on all the features a new solution offers. That doesn't fit with the growing emphasis on "business impact," especially as the actual "buying" becomes easier, since applications can be sourced simply by using the Internet access connection and browser.

By simplifying all the implementation and provisioning tasks, hosted or cloud-based applications mean the buyer can spend more attention on the direct business benefits attached to any solution. That will prove a different, and perhaps more difficult sales challenge, since the pitch will have to be on the business benefits, not the attributes of a given solution. Instead of "our box or software does X, Y and Z," sales forces will have to speak to the ways the deployed solution helps boost revenue, customer acquisition, retention, sales volume or number of prospects that can be contacted in a day.

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