Cloud GTM - Bringing in the Rain

Cloud as a technology and a business model is a disruptor, and this applies to all aspects that touch it - including the GTM models.  Common sense indicates that traditional GTM models which have worked for recurring services should work with some modifications, but that has not really been the case.  Some thoughts on what could result in a successful GTM are captured.

- Customer segmentation
Identify the target segments that are best suited for the planned offerings, and invest in time and effort to identify the need(s) that exist within each target segment.  This identification may actually be an on going activity.  In markets like India, technology adoption is still maturing, and therefore needs are not always that clear.  Thus, it turns out the latent reasons (financial challenges) for buying cloud services may be very different from the stated reasons (faster time to market).

- Positioning
While there are some standard positioning statements, it is necessary to ensure that the benefits conveyed are in line with the needs of the target segments; in addition, steer away from anything that conveys that the offering functionality has been stripped down.  The larger market segments (BFSI, Manufacturing, Telecom) in India are typically more conservative in adopting Cloud. Getting the first few lighthouse customers on board and ensuring that they are delighted with their decision, and then creating the right form of communications (case studies, testimonials, presentations in events, referrals).  Please note: expectation setting is critical for continued positive customer referral.

- Product
Often, because of the varied nature of the business and regulatory environment, a product that works well in more developed markets may only be suited with some modifications.  This is a bigger challenge for Cloud providers.  The short term option is to augment the offering with a limited set of SI partners who can deliver local value through additional services.  In the long term, it does require a lot of effort from the engineering / architecture teams to ensure that there is enough flexibility to configure the offering for the market, but building that flexibility can result in breakthrough adoption, not only in India, but other emerging markets as well.

- Pricing
My belief is that Indian customers are not really as price sensitive as they are made out to be. Instead, they expect more value for every buck that they spend, and that is something that needs to be factored.  I like the Big Mac Index that the Economist publishes, which shows that the Big Mac is priced about half of the US / Europe in India.  Norms to a somewhat similar extent may need to be applied for building up scale.  Additional value can also be delivered by creating the earlier mentioned local SI partner system, who can provide local services and support.

- Sales channels
This is where the biggest differentiator comes in - India is not (yet) a low touch, self service market.  The customer wants to see a visiting card and a face with that visiting card, more for reasons of personal comfort than anything else.  In addition, because of the relative lower maturity levels of technology adoption, most sales teams and sales channels have been more used to addressing the basic needs, which means speaking the product language.  In addition, sales compensation is also geared to drive upfront revenue success, rather than customer acquisition.  Creating the right structures and the incentive schemes for the direct and indirect sales channels is critical - and the ability to be flexible as required.

These are some high level thoughts, and finally the thing that always works best is constantly listening to what customers are saying, and how they are using the Cloud services.