Views on cloud computing and the impact on business models
Irish company InishTech Software specializes in helping Europe’s technology entrepreneurs adopt flexible licensing terms that help them be more competitive, while safeguarding their Intellectual Property (IP).
Not only has the company just completed its own migration to the cloud, this Dublin-based firm is also advising small businesses across Europe on how to ensure their business models are optimized to make the most of cloud computing
. We hear from InishTech’s CEO, Aidan Gallagher.
“Two of biggest challenges facing independent software vendors (ISVs) – who represent many of the tech SMEs in Europe are: firstly – managing their Intellectual Property); secondly – monetising their products and services, particularly in the new world of cloud computing, where new business models are being created.
What we do is help them sell more products, enabling them to licence their software in flexible, configured editions that have different options – special features, managed trials, ‘Freemium’ and Premium offers. Different billing scenarios – such as ‘pay as you go’ – are also supported. And because we provide this as an online service ‘in the cloud’, it is very low cost and easy for small businesses to use.
Cloud opens up new markets
Cloud computing has huge potential impact for Europe. It represents a new paradigm shift in how solutions are delivered. For small tech companies who previously may have been restricted to their local region, it opens up global markets. There are incredible opportunities for both existing technology firms and new entrepreneurs; they can quickly scale up and exploit their skills and software IP without the very significant costs they would face using more traditional business models.
Cloud has its own challenges
Being in the cloud does create some issues that have to be considered. When speaking to established tech companies, the most common challenge they highlight is how to manage the shift in their revenue models from traditional licensing to Software-as-a-Service (Saas) models.They are concerned their revenues will suffer and that their products or services will not be able to exploit the additional market opportunities on offer.They are also concerned about IP protection.
Finding the answers
In practice these challenges are all addressable. In many cases ISVs can take a gradual or phased approach in migrating their applications so there is usually no need for a “Big Bang” approach. In some cases they may not even need to change to a SaaS pricing model. The main thing they need to understand is that a cloud-based service offering can significantly increase the available market and actually increase revenues in the short term. This requires “smart” selling models using managed trials, marketplaces, app stores etc. and the ability to configure the product according to the needs of the customer so that they can buy what they require and pay for what they use. A traditional “One size fits all” model won’t work. They also need to know that their core IP and the supporting licensing mechanism are absolutely secure. This, essentially, is the service we provide.
Speaking from experience
It helps that we’ve gone through a cloud migration process similar to our customers. The InishTech service was designed from day one to be online, but until recently, was run in a hosted computer facility. Earlier this year, we decided to migrate to Microsoft’s cloud platform, Azure. We will see significant cost savings and better quality of service. For us, moving to the cloud has been a no-brainer. ”
InishTech is a member of Microsoft’s BizSpark
program; is a global network of investors and network partners connect with the most promising startups.
InishTech has launched a special offer for all BizSpark members designed to reduce their time-to-market and increase their return-on-investment (ROI). For more information, please view the press release at www.inishtech.com