Welcome!

@ThingsExpo Authors: William Schmarzo, Dean Madison, Peter Silva, Jnan Dash, Elizabeth White

Related Topics: @CloudExpo, Containers Expo Blog

@CloudExpo: Article

How Tech Start-ups Can Compete with Established Brands in the Cloud Market

Technology start-ups must ensure that the marketing and product delivery aspects are taken care of

In an era of cutthroat competition and diminishing revenues because of the gloomy economic scenario, the competition between technology start-ups and established brands has reached a stage where the former need to innovate and reconfigure their business models if they have to face the competition from the latter. Research has shown that technology start-ups and in particular, those in the emerging sectors of SaaS (Software as a Service) and cloud computing typically have greater gestation periods than established brands. Hence, the need to break even quickly and keep the cash flow going is a big business and financial imperative for these start-ups. Hence, the need to play with the big brands in software and at the same time retain their unique identity is something of a challenge for these start-ups. In this article, we discuss some of the ways in which technology start-ups like CloudMore, CloudSigma, Flexiant, Workbooks can compete with established brands like Microsoft.

Technology start-ups must ensure that the marketing and product delivery aspects are taken care of in an efficient manner if they are to compete with established brands. For instance, if a SaaS vendor or a star-up is providing a product at $65 per user for 10 users and an established brand is providing a similar product at $17,500 plus the 15% annual maintenance cost, it makes sense for customers to switch to the SaaS option because over a three year period, the SaaS product makes for eminent business sense and considering the fact that the product from the established brand needs to be upgraded at the end of three years, many customers might go for the SaaS option. Hence, the point here is that a market exists for technology start-up offerings and it makes sense for these start-ups to focus on marketing to the same customers which were served by the established brand.

Next, technology start-ups can focus on product delivery in an efficient manner considering the fact that if they offer more end user customization and partner with a reputable hosting provider, they can target the twin imperatives of customizable mass offerings and secure access that are currently the Achilles heel of SaaS companies. To elaborate further, many customers need customization to a certain extent and hence they prefer software made by established brands as these companies are willing to do the customization for them at a price that is affordable. However, the drawback is that such customizations even when discounted eat into the budgets of the customers and hence SaaS with its flexible pricing and by having an open architecture can easily target the customers who would be glad to have the same features at lesser prices. The issue of secure access is something that many customers want and SaaS with its reliance on public internet access makes customers shy away from it because of the reservations many customers have over sharing data on public internet. This can be surmounted by having reputed companies as your hosting partner and hence reassuring the customers that their data is safe. These twin aspects of customizability and secure access are often at the heart of the debate in the customers’ mind about going for SaaS as opposed to going for an established brand.

Finally, SaaS companies must have funding that is assured till they break even and even though the incubation period is more for SaaS start-ups; they must reassure the VCs (Venture Capitalists) and have funders who are not impatient or jittery. Of course, this is easier said than done but there are VCs in the market that have deep pockets provided the business model of these start-ups is solid. And by incorporating some of the points mentioned above in their business models, these SaaS start-ups can convince the VCs of the need to continue funding them till they achieve break even in their revenue streams and start making profits. Another aspect that is often overlooked by many start-ups is the aspect related to legal contracts and clearly defined SLAs (Service Level Agreements) which protect both the customers and the start-ups from any fallout due to either party reneging on the terms and conditions. Clearly defined termination clauses, payment schedules, SLAs and agreements over data loss and privacy can go a long way in making both parties comfortable and not prone to reneging on the promises since the penalties are also more in that case .

In conclusion, the technology start-ups need not fear about the uphill task of taking on established brands and they can compete with them on a level playing field because of the growing tendency among users to consider alternatives that are cost effective as well as technologically superior. Hence, by focusing on appropriate marketing and product delivery as well as having proper contracts in place, these companies can succeed in the uber competitive marketplace.

More Stories By Preetam Kaushik

Preetam Kaushik is a 'prolific' 'professional' freelance writer who has been writing online for the last 5 years and has gained a significant experience in writing articles, blogs and contents online. Much of his expertise lies in the writing world. He writes articles, web content and blogs on various assigned topics under almost no supervision, for various clients across the globe.

Anything that is related to creative writing and requiring the fashioning of blogs, articles or content to make them well packaged for the world wide web inspires him. He is also an avid researcher and a voracious reader.

He has extensive experience writing articles on a freelance basis on Finance, Business, Management, Entrepreneurship, Writing and Publishing, Technology and E-Commerce topics. He also specializes in academic writing which enhances his analytical and research capabilities.

@ThingsExpo Stories
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Conference Guru has been named “Media Sponsor” of the 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. A valuable conference experience generates new contacts, sales leads, potential strategic partners and potential investors; helps gather competitive intelligence and even provides inspiration for new products and services. Conference Guru works with conference organizers to pass great deals to gre...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develop...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
"Evatronix provides design services to companies that need to integrate the IoT technology in their products but they don't necessarily have the expertise, knowledge and design team to do so," explained Adam Morawiec, VP of Business Development at Evatronix, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
Large industrial manufacturing organizations are adopting the agile principles of cloud software companies. The industrial manufacturing development process has not scaled over time. Now that design CAD teams are geographically distributed, centralizing their work is key. With large multi-gigabyte projects, outdated tools have stifled industrial team agility, time-to-market milestones, and impacted P&L stakeholders.
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...
In his session at 21st Cloud Expo, Carl J. Levine, Senior Technical Evangelist for NS1, will objectively discuss how DNS is used to solve Digital Transformation challenges in large SaaS applications, CDNs, AdTech platforms, and other demanding use cases. Carl J. Levine is the Senior Technical Evangelist for NS1. A veteran of the Internet Infrastructure space, he has over a decade of experience with startups, networking protocols and Internet infrastructure, combined with the unique ability to it...
22nd International Cloud Expo, taking place June 5-7, 2018, at the Javits Center in New York City, NY, and co-located with the 1st DXWorld Expo will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud ...
"Cloud Academy is an enterprise training platform for the cloud, specifically public clouds. We offer guided learning experiences on AWS, Azure, Google Cloud and all the surrounding methodologies and technologies that you need to know and your teams need to know in order to leverage the full benefits of the cloud," explained Alex Brower, VP of Marketing at Cloud Academy, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clar...
Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression. In th...
"MobiDev is a software development company and we do complex, custom software development for everybody from entrepreneurs to large enterprises," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...
"There's plenty of bandwidth out there but it's never in the right place. So what Cedexis does is uses data to work out the best pathways to get data from the origin to the person who wants to get it," explained Simon Jones, Evangelist and Head of Marketing at Cedexis, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that CrowdReviews.com has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5–7, 2018, at the Javits Center in New York City, NY. CrowdReviews.com is a transparent online platform for determining which products and services are the best based on the opinion of the crowd. The crowd consists of Internet users that have experienced products and services first-hand and have an interest in letting other potential buye...
SYS-CON Events announced today that Telecom Reseller has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
It is of utmost importance for the future success of WebRTC to ensure that interoperability is operational between web browsers and any WebRTC-compliant client. To be guaranteed as operational and effective, interoperability must be tested extensively by establishing WebRTC data and media connections between different web browsers running on different devices and operating systems. In his session at WebRTC Summit at @ThingsExpo, Dr. Alex Gouaillard, CEO and Founder of CoSMo Software, presented ...