Simplified Implementations of Web 2.0

Posted on: January 26, 2014

Implementing any new data system into a company is a challenge. Web 2.0/Cloud applications are turning the software industry upside down. The new tools available in software greatly simplify the on boarding process for companies now and we will see a rapid migration away from traditional “big iron” enterprise application towards best of breed Web 2.0 applications.

Consultant Revenue Not in Your Best Interest

When you look at the revenue models of the large enterprise providers, upwards of 75% of their revenue comes from consulting and implementations. What does this say about the complexity of their process? I believe this is why 50% of these implementations fail. The software provider’s revenue model runs counter to the goals of the company. In other words, the software provider’s goal is to bill as much consulting as possible without upsetting the customer. Since the majority of the money is up front before the system goes live and not ongoing revenue, whether the customer actually successfully implements the software does not really impact the revenues of the software.

Lower up-front costs is better for both parties

Web 2.0 applications like Easy Metrics have a very different revenue model. The upfront implementations costs are substantially lower and the revenue model is built off of long term relationship with the customer. If the customer is not successful with the implementation or getting continual value from the application, then they will cease being customers.

This pricing model reduces the risk of failure and facilitates a much faster ROI (Return on Investment) since the user is paying a monthly/annual service fee versus a large up front capital investment.

Shorter Implementations

Easy Metrics implementations average 120 days. Comparable enterprise applications take 6-18 months with substantial “consulting” billing that exceeds the total cost of Easy Metrics by 5-10x. The Easy Metrics data client eliminates the need for any custom code by the customer. Easy Metrics just uses the raw export data and the transformation layer in the data client handles all the logic and data configuration for you. The end result is a much higher success rate for customer implementations and a full ROI in 4-6 months.

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