Welcome to the first edition of Performance 2.0 series! These are purely my observations over past one year while managing Sales and Pre Sales operations.
Two big factors driving spending for net new application performance initiatives:
- Impact on Revenue
And, the biggest factor driving a shift on spending for existing users:
- Overall Costs and Profits
These are the factors that are currently shaping up new enterprise performance engineering landscape.
For technology providers, the good news is that potential buyers are exploring technology options to improve performance (people, system, and processes), however the concern for few established vendors is that the existing users of such technologies are exploring options for doing the same stuff in a more cost effective way.
Who are these potential buyers? And, who are the existing users?
The potential buyers are the Tier 2 companies, that are trying to and are competing with established players or the market leaders. For them it’s an obvious fight to either stay in the competition or to gain more market share. To do that they have to be on top of customer experience and performance initiatives. These organizations have either evaluated the technology options or are in process of doing so and have the most buying potential.
The Existing Users are primarily the tier 1 organizations, trying to stay on top of the competition. These organizations started their customer experience and digital transformation journey ahead of their competitors and have all needed technology to complement these initiatives in place already. However, the question now is, how to stay profitable and do more in less cost. They not only have everything in place, rather too much in place, in form of multiple products with overlapping functionalities. These organizations are in process of evaluating better, end-to-end, comprehensive, full stack technology options that can help them delivering similar or even better value than the existing more expensive legacy technologies.
With new players in this segment, there is an inevitable shift, shift in term of market share, better pricing models, flexible deployment options, and of course improved service SLAs for customers.
Allow me to term this shift as Performance 2.0!
Watch out for more in my next series on Performance 2.0 for Cloud Infra providers and related market trends.
And, if interested in knowing more about one such vendor disrupting performance landscape and driving the shift towards Performance 2.0, feel free to contact me or visit www.cavisson.com
#Performance2.0 #performance #perfexperts