ECI Cloud Enablement: Objection Handling

1. Cloud offerings are sold on a subscription basis. This shifts the costs from CapEx to OpEx

True

False

When software is purchased under a perpetual license it is a capital expense, and the cost is depreciated (spread) over time for tax purposes. However, with subscription pricing, the entire licensing fees are classified as an Operational Expense and are deducted as they are incurred. Most companies prefer this, but you may run in to a few that prefer - or are just more used to - CapEx (Manufacturing).

Explanation

When software is purchased under a perpetual license it is a capital expense, and the cost is depreciated (spread) over time for tax purposes. However, with subscription pricing, the entire licensing fees are classified as an Operational Expense and are deducted as they are incurred. Most companies prefer this, but you may run in to a few that prefer - or are just more used to - CapEx (Manufacturing).

2. What is ECI's preferred "term of choice" going forward?

Cloud

Hosted

SaaS

On-premises

While it will take about 18 months to get through all the products, we should all start using "Cloud" terminology as the "just right" description over the other terms listed.

Explanation

While it will take about 18 months to get through all the products, we should all start using "Cloud" terminology as the "just right" description over the other terms listed.

3. ECI will sell backup and recovery services separately from our Cloud-based software.

True

False

Backup and Recovery are an expected part of any cloud-based software and is included in the base price.

Explanation

Backup and Recovery are an expected part of any cloud-based software and is included in the base price.

4. "Cloud" is really just a fancy way of saying you are running your software on someone else's computer, and accessing that software over the Internet.

True

False

All the media hype and advertising from big Cloud companies can make it seem very complex - and it can be when you start talking about Private Clouds and Hybrid Clouds, but at it's core it really is just about someone else running your software for you. They do this more efficiently by sharing hardware, software, and labor resources across multiple companies.

Explanation

All the media hype and advertising from big Cloud companies can make it seem very complex - and it can be when you start talking about Private Clouds and Hybrid Clouds, but at it's core it really is just about someone else running your software for you. They do this more efficiently by sharing hardware, software, and labor resources across multiple companies.

5. How should you respond to customer's concerns over initial costs to move from an on-premises solution (ECI or other)?

All migration costs are included in the quoted price, and ECI Professional Services will perform the migration for you

Prepare them for a lengthy switch-over period

Quickly offer them an on-premises option

Many existing and new customers will be quite surprised at how easy ECI makes it for them to switch - no need for long transition periods, no downtime between systems, no huge consulting contracts.

Explanation

Many existing and new customers will be quite surprised at how easy ECI makes it for them to switch - no need for long transition periods, no downtime between systems, no huge consulting contracts.

6. All ECI products will be at a Level 3 Cloud Maturity by the end of 2016.

True

False

Acsellerate, FMAudit, Naverisk, and Red Falcon are already Level 5 Maturity, and M1 isn't schedule for the necessary Engineering changes to be complete until 2017.

Explanation

Acsellerate, FMAudit, Naverisk, and Red Falcon are already Level 5 Maturity, and M1 isn't schedule for the necessary Engineering changes to be complete until 2017.

7. The Total Cost of Ownership is the same between on-premises and Cloud, costs are just shifted from internal IT labor to licensing fees.

True

False

Total costs are lower under a Cloud model, because hardware, labor, and software costs are spread across multiple companies; enabling ECI to offer a License Fee that is less than the sum of hardware purchase + replacement/upgrade, software upgrades & regular patching, backup & recover, etc. that a customer would have to pay for separately in an on-premises installation.

Explanation

Total costs are lower under a Cloud model, because hardware, labor, and software costs are spread across multiple companies; enabling ECI to offer a License Fee that is less than the sum of hardware purchase + replacement/upgrade, software upgrades & regular patching, backup & recover, etc. that a customer would have to pay for separately in an on-premises installation.

8. "I'm worried other ECI customers might see my data if we're all running on the same infrastructure." How should you respond?

Every customer has a separate installation in the ECI data center, making it impossible for data to be mixed

Data access is limited based on your login credentials

While some ECI products may require separate customer installations at this time, our goal is to work towards more shared infrastructure in order to lower costs, so it's best not to make this promise upfront. Once on shared infrastructure, additional controls are needed to keep data separate between customers. Instead, defer this question to a later conversation with the appropriate internal technical contact.

Explanation

While some ECI products may require separate customer installations at this time, our goal is to work towards more shared infrastructure in order to lower costs, so it's best not to make this promise upfront. Once on shared infrastructure, additional controls are needed to keep data separate between customers. Instead, defer this question to a later conversation with the appropriate internal technical contact.

9. Which of the following is NOT a good response to "I'm not comfortable giving up control over management of the software that runs our business."

"You will continue to have full, complete control over every aspect of your ECI installation"

Ask detailed questions about their disaster preparedness

"You will receive frequent, clear communications about any changes to the software well before they are implemented"

"ECI will work closely with you to fit within your existing processes to the extent possible"

The reality is, in a Cloud environment customers do give up some control - they can no longer make changes to the software or database as that can harm other customers in the environment. It is important to reassure customers that the cost savings, reliability, disaster recovery, and security gains outweigh this loss of control. And of course, customers still have full control over who can do what within the application, and built-in configuration settings.

Explanation

The reality is, in a Cloud environment customers do give up some control - they can no longer make changes to the software or database as that can harm other customers in the environment. It is important to reassure customers that the cost savings, reliability, disaster recovery, and security gains outweigh this loss of control. And of course, customers still have full control over who can do what within the application, and built-in configuration settings.

10. Which of the following is a cost customers do NOT directly incur when they purchase Cloud software?

Licensing fees

Software upgrades

User training

Initial configuration

While somewhat included in Cloud-based software subscription fees, customers do not have to perform on-going maintenance such as upgrades and security patches. This means they are always current with the latest features, and the labor costs for maintenance are spread across all customers.

Explanation

While somewhat included in Cloud-based software subscription fees, customers do not have to perform on-going maintenance such as upgrades and security patches. This means they are always current with the latest features, and the labor costs for maintenance are spread across all customers.

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Eci Cloud Enablement: Objection Handling