BlackBerry Selling the Blackberry Solution

BlackBerry and check aspect utility accomplice to mitigate cybersecurity threats | killexams.com Real Questions and Pass4sure dumps

BlackBerry and examine aspect utility have now announced a brand new partnership on the way to see both agencies working collectively on go-to-market planning and promoting of check factor's SandBlast mobile, along with BlackBerry UEM and BlackBerry Dynamics.

"present day world of hyperconnectivity requires ultra-protection," pointed out Mark Wilson, Chief advertising and marketing Officer, BlackBerry. "some distance too regularly we hear about enterprises employing a specific security mobility strategy as an afterthought when it has the skills to be the weakest link. BlackBerry and determine factor share a DNA that revolves around cybersecurity and with each and every company bringing business popular solutions to the desk, the partnership is a herbal fit and a very good addition to our ISV ecosystem."

"agencies deserve to use consistent, complete threat prevention across their cellular fleets to keep cell contraptions from being the vulnerable aspect of their safety defenses," talked about Jeremy Kaye, VP of cell safety solutions at check point application applied sciences. With verify element and BlackBerry becoming a member of forces to prevent mobile cyberattacks within the enterprise, we are providing the most beneficial-in-class cellular chance prevention know-how that every enterprise wants."

check element's SandBlast mobile is BlackBerry Dynamics enabled and integrated with BlackBerry Unified Endpoint management (UEM). As part of the contract, BlackBerry's groups should be thoroughly informed on the assess aspect SandBlast mobile answer so clients have one element of contact to attain out to for service and assist.

BlackBerry and assess factor application Announce international Partnership to Mitigate Cybersecurity Threats

New ISV partnership focuses on holding companies from rising cyber-attacks

LONDON, UK - Sept. 12, 2018 - BlackBerry limited (NYSE: BB; TSX: BB) and examine point utility applied sciences Ltd (NASDAQ: CHKP) these days announced the corporations have entered a global ISV (impartial application supplier) partnership. The strategic agreement is the first of its form for assess factor, and comprises joint go-to-market planning and selling of investigate element's market-main cell probability protection answer, SandBlast cell, together with BlackBerry UEM and BlackBerry Dynamics.

To extra streamline the customer experience and enhance carrier beginning, BlackBerry's groups can be wholly informed on the investigate factor SandBlast cell answer to resell and function a single aspect of contact for skilled features and support.

With organisations across the globe adopting mobility solutions to enrich productivity and convey digital transformation initiatives, cell safety is regularly omitted regardless of cyberattacks getting greater subtle. recent investigate element research discovered that ninety four per cent of protection specialists doubt their enterprise can prevent a breach of personnel' mobile contraptions.

"brand new world of hyperconnectivity requires extremely-safety," talked about Mark Wilson, Chief marketing Officer, BlackBerry. "some distance too regularly we hear about organisations using a selected safety mobility approach as an afterthought when it has the abilities to be the weakest link. BlackBerry and examine element share a DNA that revolves round cybersecurity and with each and every business bringing industry favorite options to the desk, the partnership is a herbal fit and a fine addition to our ISV ecosystem."

"enterprises should use constant, complete threat prevention across their cell fleets to keep cellular devices from being the weak element of their protection defenses," referred to Jeremy Kaye, VP of mobile protection options at check factor utility applied sciences. With investigate factor and BlackBerry joining forces to steer clear of cell cyberattacks in the enterprise, we are presenting the most effective-in-classification mobile danger prevention know-how that each business needs."

determine aspect's SandBlast mobile is BlackBerry Dynamics enabled and built-in with BlackBerry Unified Endpoint management (UEM). The Dynamics platform gives the basis for secure enterprise mobility by means of offering an superior, mature, and proven container for cell apps and e mail while supplying a complete endpoint-to-endpoint method to protection. better with the SandBlast mobile, the answer maintains company property and sensitive information on all contraptions protected and cozy from cyber-assaults.

SandBlast cell 3.0 prevents cell phishing assaults, while additionally deciding on all malicious network traffic to and from the gadget to help maintain facts and personnel safe. It allows users to run apps downloaded to cellular gadgets in a virtual, cloud-primarily based environment where conduct is analyzed and then authorised or flagged as malicious. different elements encompass the ability to deliver on-gadget community insurance plan by inspecting and controlling community site visitors to and from the machine, blocking phishing attacks on all apps and browsers, and disabling communications with malicious command and manage servers. assess aspect's answer, attainable now on BlackBerry's market, enables groups to dwell ahead of new and rising threats by extending its network security capabilities to cellular gadgets.

BlackBerry's ISV ecosystem has viewed giant momentum, transforming into 25 per cent in the remaining year. ISV partners have entry to the BlackBerry development Platform, an commercial enterprise-grade toolset which permits builders to build comfortable, potent, and customized mobility options for each use case.

To study in regards to the range of applications, extensions or options available on the BlackBerry industry, please seek advice from https://marketplace.blackberry.com.

To find out more about becoming a BlackBerry ISV partner, please discuss with https://us.blackberry.com/business/types/isv-associate-application.

About BlackBerry

BlackBerry is an business software and functions enterprise concentrated on securing and managing IoT endpoints. The business does this with BlackBerry at ease, an conclusion-to-end enterprise of things platform, constructed from its enterprise verbal exchange and collaboration software and safeguard-licensed embedded solutions. based mostly in Waterloo, Ontario, the company became centered in 1984 and operates in North america, Europe, Asia, Australia, middle East, Latin america and Africa. The enterprise trades under the ticker symbol "BB" on the Toronto inventory exchange and new york inventory change. For extra information, talk over with www.BlackBerry.com.

Is It Time to buy BlackBerry's Resurgence? | killexams.com Real Questions and Pass4sure dumps

BlackBerry's (NYSE: BB) transformation into a company of application and capabilities is now complete. The company's reliance on its legacy smartphone company has been pulling it down, but that won't be the case going ahead, as the enterprise's third-quarter results exhibit.

The business did not get any profits from promoting instruments last quarter, whereas the linked service access business generated just $9 million, which is rarely even 4% of the overall right line. BlackBerry bought the majority of its earnings via selling commercial enterprise utility and capabilities, expertise options, and licensing. The respectable half: These segments are enjoying robust growth momentum that might not be demise out every time quickly.

View pictures

A drawing of a cybersecurity shelter, with random numbers and letters in the back of it and ripples performing to pulse out of it.

photograph supply: Getty photos.

BlackBerry now receives well-nigh forty three% of its income from the business utility and services business. Bears might argue that this section is rarely within the top-rated shape, as profits in the newest quarter dropped 7.5% year over year. but there may be extra here than meets the attention.

BlackBerry's implementation of the ASC 606 accounting trade in the first quarter of the present fiscal year skill or not it's facing adverse yr-over-year comparisons. this is as a result of, below ASC 606, BlackBerry is never recognizing profits from enterprise software income on an up-front foundation. in its place, the enterprise's perpetual licenses are actually recognized on a subscription foundation over a duration of four years.

despite the fact, there's sufficient evidence that the commercial enterprise enterprise is on a growth course. BlackBerry recorded 7% sequential increase in this segment ultimate quarter, following a double-digit sequential raise right through the 2nd quarter of fiscal 2019. however the more essential thing to observe is that this enterprise incorporates massive advantage, due to the solid contract wins BlackBerry has scored.

for example, BlackBerry is now selling enterprise utility to eight U.S. executive companies, in comparison with six within the previous quarter. What's more, the variety of users on BlackBerry AtHoc -- the business's crisis conversation utility-as-a-carrier platform, licensed by using the Federal risk and Authorization management program -- accelerated 20% within the latest quarter to 1.2 million clients.

Gaining traction within the U.S. government cybersecurity area may be a protracted-time period driver for BlackBerry, because the federal government has been step by step ramping up its cybersecurity spending. however executive contracts are only some of the issues driving the business's application growth. BlackBerry has got down to build a platform that encompasses the privacy and safety wants of a company under one umbrella -- BlackBerry Spark.

greater importantly, the enterprise is calling to push the envelope by using including greater options to its portfolio. this is why it has spent $1.4 billion on cybersecurity provider Cylance, if you want to deliver artificial intelligence and desktop learning capabilities to its cybersecurity offerings. Such moves will assist BlackBerry offer greater to its latest clients, whereas opening up an opportunity to sell its present solutions to the newly acquired Cylance consumers.

Cylance is going to open up a large probability for BlackBerry to enhance sales and revel in greater margins, because the former has over 100 Fortune 500 consumers, which can be a part of its three,500-powerful commercial enterprise customer base. meanwhile, BlackBerry's technology options enterprise is getting a pleasant shot in the arm from automobile design wins, as consumers are lapping up the QNX application platform to vigour a considerable number of points of related vehicles.

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In all, BlackBerry's salary from its expertise solutions and licensing groups rose 30% yr over year ultimate quarter. These two agencies account for 53% of the company's profits, so the big growth they may be clocking may still ultimately enhance BlackBerry's normal desirable line. but more importantly, the true-line growth will filter right down to the bottom line thanks to the high-margin nature of the company's utility enterprise.

BlackBerry's margins have more suitable strongly in the past three fiscal years, permitting the business to massively cut its losses.

BB Gross income Margin (TTM) Chart

BB Gross income Margin (TTM) records by way of YCharts.

The enterprise ended fiscal 2018 with a 75% gross margin degree, and it's maintained the equal within the ongoing fiscal 12 months. BlackBerry goals to hit an 85% gross margin degree in the long run, thanks to the starting to be clout of its utility and services enterprise.

BlackBerry expects its application and capabilities billings to raise by way of double digits in the latest quarter. It won't be spectacular to peer it at least sustain that level in the long run, since it's pursuing opportunities in lucrative and fast-becoming conclusion markets, as mentioned. more importantly, the margin positive factors are having a positive impact on the enterprise's bottom line.

final quarter, BlackBerry posted $28 million in adjusted web profits, compared with $sixteen million within the prior-year period. So the enterprise's profitability should get more advantageous as its margins hit an improved degree.

In all, there is plenty to like about BlackBerry. The enterprise's utility push has reaped wealthy rewards to date on the economic entrance, and the style is probably going to proceed because the business adds greater functionality and attracts more shoppers. All this makes BlackBerry stock a superb lengthy-term guess because it makes a play on the secular boom of cybersecurity, enterprise security, and different verticals such as car.

more From The Motley idiot

Harsh Chauhan has no place in any of the stocks mentioned. The Motley fool recommends BlackBerry. The Motley idiot has a disclosure coverage.

RIM Intros BlackBerry mobile Fusion commercial enterprise answer for BlackBerry, Android and iOS | killexams.com Real Questions and Pass4sure dumps

analysis In action has simply introduced the upcoming availability of its BlackBerry cell Fusion commercial enterprise mobility answer.

moreover, the Canadian company introduced its entry into the multi-platform mobile machine management (MDM) market.

Given the indisputable fact that its cellular gadgets are hardly ever selling at the moment, RIM’s stream should still now not shock any individual. With the latest announcement, RIM is trying to adapt its provider to different cellular platforms, comparable to Google’s Android and Apple’s iOS.

[admark=1]in accordance with RIM, the BlackBerry cell Fusion solution comprises the BlackBerry business Server (BES) 5.0.three for BlackBerry smartphones, new administration functionality for its PlayBook tablet, in addition to cell device administration for smartphones and capsules that are powered by means of both Android or iOS operating equipment.

“we're completely happy to introduce BlackBerry mobile Fusion - RIM's subsequent generation business mobility solution - to make it less difficult for our business and govt shoppers to manage the range of gadgets in their operations today,” talked about Alan Panezic, vp, commercial enterprise Product management and advertising and marketing at analysis In motion.

some of the facets offered via BlackBerry cell Fusion answer encompass: asset management, configuration management, security and coverage definition and management, at ease and protect lost or stolen gadgets (remote lock, wipe) and extra.

RIM demonstrated that the BlackBerry mobile Fusion solution is now in early beta checking out with opt for business consumers and that popular availability is expected in late March.

during this regard, the enterprise is now accepting customer nominations for the closed beta software which is should still kick-off next 12 months, in January.

"BlackBerry cellular Fusion brings together our business-main BlackBerry business Server technology for BlackBerry instruments with cellular device administration capabilities for iOS and Android devices, all managed from one web-based console. It provides the critical management capabilities to permit IT departments to confidently oversee using each enterprise-owned and employee-owned cellular devices inside their corporations," concluded Panezic.

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Selling the Blackberry Solution for(R) Tech. Sales Professional

The (New) Skills You Need to Succeed in Sales | killexams.com real questions and Pass4sure dumps

The practice of business-to-business selling is in a curious state. On the one hand, commentators and academics are repeatedly telling us that transactional selling is outmoded and that relational selling is the ‘new normal.’ On the other hand, most businesses are operating with traditional models of salesperson recruitment and training. The American Society for Training and Development (ASTD) estimates that in the U.S., $15 billion is spent per year on sales training. However, many salespeople find the training they receive either ineffective or less than useful. Given the importance of skills and capabilities to sales performance, businesses need to reconsider who they recruit into sales roles, and how they train them.

Put simply, we all we tend to recruit people like ourselves. This in turn means that existing cultures, styles and modes of behavior tend to perpetuate themselves. Trouble is, business-to-business selling has been undergoing a revolution. Traditional sales methods are increasingly unproductive. In fact, aggressive sales styles and product-focused selling are now so outdated that some customers are simply refusing to meet with salespeople using these techniques. These customers find it more pleasant and more efficient to order online, and who can blame them? Information about product and service features is increasingly available online, so sales people find themselves in front of well-prepared customers. In this situation, focusing on product features in the sales meeting is a waste of everyone’s time. In fact, there is plenty of evidence that high-performing sales people are those who listen and respond, who are flexible, and who think in terms of developing a solution to an emerging customer problem.

To find out what kind of people succeed in sales, and the kinds of skills they need to have, we carried out interviews with thought leaders in selling and sales management in the U.S. and the U.K. These included top sales leaders in major corporations, leading academics who have published in the sales field, and senior practitioners within sales associations or research-oriented sales consultancies.

Our research confirmed a growing trend: Salespeople today need to engage in collaboration with the customer but also increasingly with their own organization. Good selling is about transcending the customer-facing role and becoming an internal change agent as well.

Our thought leaders identified two major drivers for this change: the use of technology, and changes in customer demands. Increased use of technology, they told us, means that online channels are substituting for traditional face-to-face meetings, and CRM systems are providing new insights into customers. On the customer side, our informants talked about ever-increasing customer expectations and more emphasis on return on investment and value. Our analysis revealed four categories of skills and capabilities that sales people need in this new environment: Commercial, Relational, Managerial, and Cognitive.

Commercial skills and capabilities are about financial insight, business acumen and customer insight — specifically, insight beyond what the customer has articulated. In complex relational sales, customers expect business-to-business sales people to act as business consultants and demonstrate a broad strategic understanding of their organization and the impact on the customer’s bottom line of the solutions they sell.

Relational skills and capabilities include the ability to manage multi-level, multifunctional relationships, to understand relational dynamics and to inspire trust. Across all the research we have done in sales and Key Account Management, trust is repeatedly cited by customers as important in their selection of a supplier.

Managerial skills and capabilities needed by people in sales roles include people management skills (because so much business-to-business selling is now done in teams and cross-functionally); high ethical standards and integrity (growing customer demands in relation to corporate social responsibility and ethics are changing selling behaviors); openness to change and adaptability; and influencing skills.

Cognitive skills and capabilities include innovative problem solving; the ability to identify opportunities; the ability to work under pressure; and mental toughness and resilience. These cognitive skills are important in a consultative selling role because the best future sales opportunities may be found within existing customers, not necessarily within new customers, and the sales person needs the skills to recognize and develop these opportunities.

These skills and capabilities identified by our thought leaders have some clear consequences for the recruitment and training of sales people in business-to-business consultative selling roles. Look again at the four elements: traditional selling skills are conspicuous by their absence. In fact, the people best fitted to these new sales roles may not necessarily be people from a sales background. Instead, we see more people from technical or operations backgrounds such as project management, R&D, or supply chain moving into sales. They can be particularly adept at problem-solving and cross-functional working. Perhaps we should talk not about ‘sales people’ but about ‘people in a sales role.’

This broader view of the sales professional has implications not just for sales recruitment (“who”), but also for training and development (“what” and “how”). People in a sales role need a broad general management development that focuses on commercial, relational, managerial and cognitive capabilities. Sales leaders, HR directors and CEOs need to ask some tough questions about how their organization is training its sales people to develop these vital elements. Those responsible for commissioning, designing and/or delivering sales training must ensure that programs move beyond task-related knowledge and skills and emphasize a fuller range of general management competencies that are needed to manage increasingly complex markets and business relationships.

NVIDIA (NVDA) Q4 Earnings Top, Revenues Miss Mark, Down Y/Y | killexams.com real questions and Pass4sure dumps

NVIDIA NVDA delivered fourth-quarter fiscal 2019 non-GAAP earnings per share of 80 cents, which topped the Zacks Consensus Estimate of 75 cents but tumbled 53% from the year-ago period as well as 57% sequentially.

Revenues declined 24% year over year and 31% sequentially to $2.21 billion and also lagged the Zacks Consensus Estimate of $2.37 billion. Excess channel inventory post-crypto coupled with recent deteriorating end-market conditions impacted results. While growth across Datacenter, Professional Visualization and Automotive segments was positive, a sharp decline in the Gaming segment was a spoiler.

Although NVIDIA expects revenues to decrease in first-quarter fiscal 2020, its anticipation of a rebound in the second half of the year led the shares to rally more than 5% in after-hours trading.

Quarterly Details

Revenues at the GPU business fell 20% year over year to $1.98 billion, reflecting deterioration in gaming GPUs. Tegra processor revenues worth $225 million slumped 50% on a year-over-year basis due to lower shipments of SOC modules for gaming platforms.

Gaming revenues were down 45% on a year-over-year basis and 46% sequentially to $954 million. Suspension of mid-range Pascal GPU shipments following tepid demand from crypto miners in order to normalize channel inventory levels was an overhang. Waning macro-economic conditions, particularly in China, weakened consumer demand for GPUs. Further, lower-than-expected sales of high-end GPUs based on the company’s new Turing architecture including the GeForce RTX 2080 and 2070, impacted results.

Meanwhile, revenues from Datacenter increased 12% year over year but declined 14% sequentially to $679 million. Growth in sales of Volta architecture products including NVIDIA Tesla V100 and DGX systems drove year-over-year improvement.

Slowdown in fourth-quarter sales was broad-based across verticals, markets and geographies. Many of its data center deals did not close in January as economic uncertainties made customers increasingly cautious. Hyperscale and cloud purchases decreased both sequentially and on a year-over-year basis. A temporary pause in cloud spending weighed on results. However, with growth in AI-related investments by cloud giants, demand is likely to pick up.

Automotive revenues in the reported quarter totaled $163 million, reflecting a 23% rise year over year and a decline of 5% sequentially. The year-over-year improvement was driven by autonomous vehicle development deals and the growing adoption of AI-based smart cockpit infotainment solutions. Decline in legacy infotainment was a dampener.

Moving to Professional Visualization, revenues improved 15% year over year but dipped 4% sequentially to $293 million. Strength across both desktop and mobile workstation products is a key driver. Management mentions that applications in fields like data science, AI and VR and the need for thin and light mobile workstations are boosting growth for this segment. During the quarter under review, the company had key wins from Boeing, Google, LinkedIn and Toyota for applications including AI and robotics.

OEM and IP revenues plunged 36% year over year and 22% sequentially to $116 million due to absence of crypto-currency mining GPU sales.

Margins

NVIDIA’s non-GAAP gross margin contracted 610 basis points (bps) from the year-ago quarter to 56%. Margins were affected by around $128 million in charges for excess DRAM and other components due to the current market conditions and lower-than-anticipated revenues.

Non-GAAP operating expenses escalated around 24% from the year-earlier quarter to $755 million due to higher R&D expenses. As percentage of revenues, operating expenses were up to 34.2% from 20.9% in the prior-year quarter.

In dollar terms, non-GAAP operating income tanked 60% year over year to $479 million. However, NVIDIA’s non-GAAP operating margin was down to 21.7% in the quarter under review from 41.3% in the year-ago quarter.

NVIDIA Corporation Price, Consensus and EPS Surprise

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NVIDIA Corporation Price, Consensus and EPS Surprise | NVIDIA Corporation Quote

Balance Sheet & Cash Flow

NVIDIA exited the fiscal fourth quarter with cash, cash equivalents and marketable securities of $7.42 billion compared with $7.59 billion in the previous reported quarter. NVIDIA’s long-term debt is flat at $1.99 billion.

Cash flow from operating activities was $898 million in the fiscal fourth quarter, up from $487 million in the prior reported quarter.

Free cash flow during the fiscal fourth quarter came in at $695 million, up from $337 million in the fiscal third quarter.

The company repurchased shares worth $700 million during the fourth quarter of fiscal 2019.

Full-Year Results

Revenues in fiscal 2019 grew 21% to $11.72 billion, reflecting broad-based growth in each of the platforms, namely Gaming, Professional Visualization, Datacenter and Automotive.

GPU business revenues were $10.17 billion, up 25% while Tegra business revenues were $1.54 billion, up slightly from fiscal 2018.

In fiscal 2019, the company returned approximately $1.95 billion in the form of share repurchases ($1.58 billion) and dividend payouts ($371 million) to shareholders.

Guidance

For the first quarter of fiscal 2020, NVIDIA anticipates revenues of $2.20 billion (+/-2%). Non-GAAP gross margin is projected to be 59% (+/-50 bps). Non-GAAP operating expenses are forecast to be $755 million. GAAP and non-GAAP tax rates are envisioned at 10% (+/-1%) each.

For fiscal 2020, revenues are projected to be flat to down, slightly with growth in four end markets, compensating for the absence of crypto revenues and the excess selling for most year.

The company estimates operating expenses in high single digits this year as it continues to invest in graphics, AI and self-driving cars.

The company predicts gaming business to descend slightly. Growth in Turing and notebook gaming GPUs is an upside. The company envisions more and more games to feature ray tracing and DLSS technology. Management is optimistic about the launch of GeForce RTX 2060 at mid-range price point of $360, which garnered positive reviews and is off to a great start. The availability of 40 plus new Turing based gaming laptops also makes all hopeful.

Management mentioned four new growth catalysts for its Datacenter business, such as inference, data science and machine learning enabled by RAPIDS, rendering driven by Turing and the sale of pre-configured systems that contain the company’s GPUs to enterprises. Notably, deep learning inference workloads currently account for less than 10% of data-center revenues, representing a significant expansion of addressable market opportunity going forward.

Further, the availability of Quadro RTX is likely to boost Pro-visualization business. Quadro RTX will help designers and creative artists improve productivity by enabling them to work interactively with high resolution media and photorealistic 3D rendering.

The launch of level two plus self-driving car computer DRIVE AutoPilot is a major breakthrough for the company. The company expects this year to be important for robo-taxi pilots and the initial level two design wins. Volvo, its first design win, is likely to begin production in early 2020.

Zacks Rank and Stocks to Consider

NVIDIA currently carries a Zacks Rank #5 (Strong Sell).

A few better-ranked stocks in the broader technology sector are CommVault Systems, Inc. CVLT, MeetMe, Inc. MEET and Verint Systems Inc. VRNT, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rate for CommVault, MeetME and Verint is projected at 15.8%, 20% and 10%, respectively.

Zacks' Top 10 Stocks for 2019

In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?

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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MeetMe, Inc. (MEET) : Free Stock Analysis Report CommVault Systems, Inc. (CVLT) : Free Stock Analysis Report Verint Systems Inc. (VRNT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research

7 Tips For Layering Professional Services Revenue Into Your Startup | killexams.com real questions and Pass4sure dumps

Editor’s Note: This is a guest post by Mark Suster (@msuster), a 2x entrepreneur, now VC at GRP Partners. Read more about Suster at his Startup Blog, BothSidesoftheTable.

I recently wrote a blog post in which I pointed out that many investors and advisors discourage enterprise startups from having a professional services (PS) business and I think this is a big mistake.

I think it’s important for enterprise startups to layer in professional services to their revenue streams.

PS capabilities are important for enterprise startups because they:

It’s all in this article if you want the details.

BUT!

You don’t want to run the risk of having a PS business that takes your eye of the ball of growing a large software business. So when I meet with GRP portfolio companies that do enterprise sales I try to emphasize the following:

1. Only Work on Projects That Support Your Core Product Effort

The most important thing to be careful about is to be sure WHY you’re doing the PS business. Hopefully it’s not to avoid fundraising or finding quick pockets of money.

Don’t become addicted to the quick hit of cash that a big implementation project can provide.

Your goal should be to do PS as a way of accelerating future non-linear software growth.

Therefore you need to be careful not to accept projects that are too far out of the core business. Each project should be related to rolling out your solution or you shouldn’t do it. Each project scope should be as close as possible to being restricted to:

That is the software business.

In the adtech world PS revenue often means providing “media services” as a value-add to using your product. This might mean helping customers buy traffic, arb’ing deals, helping with RTB pricing or trading, etc.

2. Minimize Any Custom Work That Will Not Feed Back Into Your R&D

While I’d like to say that you should never do custom work that changes the scope of your product, that’s not wholly realistic.  But you do need to be sure your company doesn’t just become the internal R&D department for a large corporation.

If you never read my post on Elephant, Deer and Rabbits – a guide to customer segmentation – it might be worth a read.

With a well-architected product that has well-documented APIs and proper core product abstractions, all custom work should be built above the API stack. Often your sales engineers can do the customizations without bugging the core eng team.

Extending the feature set of the product would obviously be better if done by the customer, but sometimes customers lack the resources to do customizations, so simply telling them to get stuffed is not the answer.

3. Protect Your Intellectual Property

If you’re doing custom work, restrict it to a small portion of the PS project and try to build stuff that can eventually find its way back into your core product roadmap to improve your core offering for future clients.

In fact, if you do the PS project well and narrow the scope to features that you know you’ll eventually need to build anyways, then it can actually be a great source of future innovation.

Importantly, make sure that you retain IP rights to your custom work, which needs to be part of the engagement contract. At a minimum co-ownership of the IP.

If it’s not specified in the contract, you might find yourself with future litigation over IP.

4. Integrate PS Work Into Sales And Marketing Processes

The reason to do the PS work in the first place is to drive future software sales. So make sure that your PS organization doesn’t become an island or a P&L unit that tries to maximize its own value by showing the most profitability and growth on that business unit possible.

The PS team is there to successfully engage. You want to make sure that they are communicating well and often with sales to drive future product sales at the customer level.

You want to be sure that you get customer commitments before doing the work. Do a case study afterwards if the project is successful. You won’t get every customer to agree to this but you certainly want to try with every customer. Referenceability is the lifeblood of sales. If asked to drop the price we would often counter by agreeing to small price decreases in exchange for an agreement to do case studies to drive future business. Frankly, you’re going to need to drop prices a bit anyways. After all, every customer wants their pound of flesh.

If you have a sales rep pushing a product implementation you want them to understand why selling PS will help them grow future revenue at that account and not as a crutch to hit short-term revenue targets.

Basically, no islands at startups. Everything needs to be part of a holistic company strategy.

5. PS Business Cannot Become A Management Distraction

Another rule I outline with our portfolio companies that sell enterprise solutions is that I don’t want them to become a distraction for management.

If your CEO is having to get involved too much in reviewing a project’s success, or your core product team is getting sucked into implementing too many features to support the rollout efforts, chances are you’ve gone too far.

The closest analogy I have for a PS person is a “sales engineer” who is normally a technical staff member who assists in sales campaigns. Often they have the same skills and can therefore be doubled up as PS if you are in a pinch to afford staff.

If PS involves too much management or core tech time, then chances are it will overtake your software strategy and you’ve then just become a prostitute for short-term revenue.

6. Control Size Of PS Revenue Relative To Software Business

So how much PS is too much?

There’s no right answer. It’s mostly a function of the stage of your business.

If you’re in your first year of developing your product, chances are you haven’t yet found product / market fit and you don’t yet have enough value to sell your product for as much as you’d like.

And chances are you’re in big need of a killer customer reference.

So it wouldn’t bother me if 90 percent of your year-one revenue was PS, provided it was done with a specific plan for year-two software sales. It also is a great way to finance your business without facing dilution before you actually raise venture capital and when the valuation you might get from angels is less than you’d want.

By year two I’d like to see PS at 50 percent maximum, which is still high.

By the time you’re at $5 million to $20 million in software sales, I’d like to see PS be no more than 25 percent of your total revenues.

I know that number sounds high for some people, but in reality if you’re growing fast it’s not unthinkable that you’d bill out $2.5 million in PS revenue on top of $7.5 million of recurring revenue (MRR) software sales.

As you hit steady state I’d like to see PS at about 15 percent of your business.

Rough guidelines. Lots of room for debate. But a good rule of thumb for planning.

7. Don’t Pay Full Bonus To Sales Staff On PS Revenue

Finally, be careful that you don’t incentivize your sales staff to make you into a professional services firm. You can’t pay full bonus on PS revenue. Not only because it’s lower gross margin, less scalable and more consumptive of staff, but also because, if you make it easy for them to sell PS — which is always higher revenue than paying for software — you’ll be sure they sell it ALL DAY LONG.

But it can’t be zero bonus.

If you have zero bonus on PS revenue you’ll find a sales team that becomes the PS prevention unit, and if you’ve bought in that this line-of-business is important to you, then you don’t want your best sales teams working against you.

There’s not one answer for how to comp the sales teams. It can be margin based or lower spiff for PS revenue than software revenue. Whatever. And obviously you need to persuade them that today’s PS business is tomorrow’s big commission check.

Happy to take any suggestion in the comments section as to how to properly incentivize sales teams.

Next post?

“How to sell your future roadmap to enterprise customers without selling your soul. Adding precious high gross margin to support an R&D team that you need to fund anyways.”

Photo credit Food52.

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