The Four Main Benefits of a Cloud-Based Solution
"I want a solution that's in the cloud..." We've all heard this from our clients and prospects before. But what exactly do they mean?
Just like you, your competition also has a cloud-based, SaaS solution. But how do your customers and prospects understand the differences between your cloud-based product from your competition's? To make it even worse, key decision makers may not even understand the technical features and functionality that differentiates your cloud-based, SaaS solution from your competition's. Meaning too deep of a dive with a non-technical decision-maker will make their eyes gloss over.
But rest easy, because there is a way to sell your cloud-based solution to non-technical decision makers. Yes, there are many, many benefits of the Cloud, but really, they all boil down to four main benefits. These are the main benefits that most prospects are thinking of when they refer to the "cloud." Knowing which benefit(s) they value the most can enable you to better position your solution against your competition's:
- Disaster preparedness & business continuity – automatic backups
- 24/7 access. Anytime. Anywhere.
- Monthly payments replace CapEx.
- Less overhead and maintenance mean lower overall costs.
Disaster Preparedness & Business Continuity
Do not underestimate the Cloud's built-in disaster preparedness and business continuity benefits. Nearly 40% of small businesses close after experiencing a natural disaster (Protecting Your Business), and the C-suite knows this. But it doesn't just have to be a fire or some natural disaster, more data is lost from improper backups. This is what I call the silent killer of IT, and it can also have grave damages. A cloud-based solution is always backed up, so no matter the condition of the customer's physical office, their data is safe. They can sleep safely knowing this, and appreciate any business partner than can alleviate a few of their concerns. Marketing takeaway: create case studies and infographics that highlight built-in disaster preparedness and business continuity.
24/7 Access. Anytime. Anywhere.
But don't forget, this is the main benefit of the "cloud" that people are usually referring to when they say they want a cloud. They want to be able to access the same data and the same system from their home, or on the road, that they could at their desk in the office. This means the same data—in real-time, the same reports, the same UI, and the same UX. These last two are important, as they provide a seamless experience across multiple devices, regardless of location.
On a different note, not too long ago I conducted a survey that asked customers of a SaaS product this question, "How important is 24/7 anytime/anywhere access to you?" Not surprisingly, over 90% said that 24/7 anytime anywhere access was very important. My follow up question, how often they used the solution outside of their office, was surprising to me. Ironically, less than 10% used the solution outside of their office. Now every solution and every industry will have different results to this "actual usage" question. However, it will surprise you to see that the value associated with being to access a solution at anytime, and in any place, far outweighs the amount they actually use it outside the office. Marketing take away: stress 24/7 anytime, anywhere access in your marketing. Datasheets and infographics can reinforce this best.
Monthly Payments Replace CapEx
It's amazing how difficult it can be to get capital improvements budgeted. It can be even harder to get the actual PO cut. Remember, planning to upgrade software and hardware is one thing, but getting from to the budgeting and actually approving the PO can be like pulling teeth. Budget approvers tend to see things differently when an estimate of tens of thousands of dollars is smack in their face. SaaS sidesteps this with a low monthly fee. Ask anyone who has ever requested new software, how easy is it to get a large perpetual software solution with a large one-time fee approved? Not easy. No matter if the cost is financed, and even if it is broken into small payments, the owner/approver still sees the final dollar amount. Now, ask that same person how easy it was to get a small monthly fee approved. Piece of cake, right? Many businesses even authorize a team or employee to not even have to approve bills if under a certain amount—and many times SaaS solutions are below this amount. Marketing takeaway: a datasheet or case study dedicated specifically to this is a tough sell, but it should be a talking point in every piece of collateral.
Less Overhead + Less Maintenance = Lower Total Costs
Now this last one is a little more difficult to explain, but it's still vital in accurately differentiating a cloud-based solution. A cloud-based solution comes with less overhead and maintenance. Let's start with less overhead. When you purchase a perpetual system, oftentimes one will also need to purchase or update IT infrastructure to properly run it. This could include new computers, new switches, new servers—which all may seem like small costs individually, but when combined—let's just say that in this case, the whole is less noticeable when comparing the sum of the parts. In fact, the costs to run and maintain the on-prem solution can cost anywhere from 1/3 to 100% of the cost of the licenses alone. This significantly increases the overall costs of the move to a new on-prem system, and oftentimes requires capital budget approvals and rock-solid support from the CEO or President. Now, contrast this with the ease of a low, monthly payment for a SaaS solution. No new servers are necessary. Oftentimes the PC requirements are significantly less, as even the same old computers can run the new cloud-based solution—because the computing is mostly performed in the cloud. So not only is it a low monthly cost, but the overall cost is significantly less with no new servers.
These significant savings don’t even factor in the second part, which is less maintenance. First, there is no need to set up, maintain and update servers, as this is performed in the Cloud. Second, the IT staff no longer has to install updates, as this is automatically performed in the Cloud. In fact, the solution that the end user is using—is always the current version. And don’t'think that this isn't important to IT. How many times have they installed an update on a perpetual system, only have multiple issues and things "break" across computers and devices across the organization. One final word on IT for prospects, they come in two forms, they are either currently overwhelmed and will appreciate any cloud-based solution taking work off their plates, or they are firmly entrenched and extremely hostile to anyone threatening to take away their work. This second one, believe it or not may start off violently against a SaaS solution, but don't let that stop you. They still can be won over, but this usually requires a personal sales call or visit. Just remember, they run the ship, and you're fine with that. You just want to help make them continue to look like the rock star that they already are by offering a much needed solution to their customers, the employees.
Parting Thoughts
So, the next time one of your prospects is asking for a "cloud" solution, just remember that the "cloud" can mean different things to different people. But when it's all said and done, they usually are really looking for these 5 main benefits and knowing which benefit they value the most may help differentiate your cloud-based solution from your competition.