Software Company Positioning
Starting my career in software industry doesn’t make me sensitive enough to know and separate the differentiation of the software business until I met few people that ask me about our company value and our roadmap.
I saw a lot of software company in Indonesia grow and getting bigger, but until certain stage, they have a problem to continuously grow their market and make more business.
Figuring out how the big company like IBM, Oracle, Microsoft, HP, VMWare, and so many others in the market, they able to grow bigger, keep focus on their product and the sales team also getting bigger. Big software company always separate their major division such as Product, Sales, Enterprise (implementation for enterprise), SME (implementation for SME market), R&D and Support.
Does this big company do their own implementation?
Big software companies always rely on partner to help them selling and also collaborate with System Integrator to help them implement the product. Why they need SI? They need SI to help them localize implementation and support. And from another point of view, SI will help to customize during implementation and if there any limitation on the product, SI will help how to manage it. While product team on principal will focus on hearing the implementation issue to keep improving and also create a new feature.
Purchase thru System Integrator or direct to Principal?
When purchase a software, buy from system integrator have their own benefit. Sometimes to implement one solutions, can’t rely only to one product, but required few another product to be combine to create one robust and perfect system.
When you purchase direct to principal, principal only focus on deliver their product, another system can work to collaborate but they’re not focusing to support another system software.
Some product come as OEM bundles, in the beginning I thought OEM is refer to make it cheaper with special discount. Along the way, we learn more that OEM is more for the product company to certify the product to work with another system software and will bring more value to customer immediately. Besides that the benefits of OEM licensing is the principal will responsible to support without customer need to understand how the support will works from principal.
Some customer/corporate get a benefits from the enterprise agreement, especially special price for the product. Enterprise agreement will play a great role if a lot of internal software development in the company, where all the internal technical people work on this. If the technical team have a problem, they can easily request a support directly from principal. This is the main benefits of enterprise agreement, but what’s the downside of enterprise agreement?
As enterprise sometimes they need 3rd party vendor or a product company. These product come with some product that they need to purchase to work together. One of main downside is the customer push to buy the license using enterprise agreement. During implementation it will required to manage who will do the day 1 implementation and day 2 maintenance support. And everytime the product company or SI need a support, they can’t open ticket directly to supporting principal, but have go thru the corporate IT team to create and get a support. Involvement multiple party to manage support can bring a slow response in getting the resolutions.
My suggestions, if there’s a company selling OEM solutions, always try to consider to purchase as embedded OEM, which will bring more benefit especially during day 2 maintenance support.
What if the SI found a limitation on principal product?
SI open ticket to principal, asking for customization. If the principal willing to support then they will release a new patch for specific customer. If not than, SI just can said to customer, this is the limitation of the product. This is the best I can do.
Based on what these thought we bring Colek Bayar for the Saas (Software as Services) to be an product based and for the implementation we will involve System Integrator to help us make our market bigger.
We will have our Professional Services to serve the Enterprise Implementation to keep helping our customer keep focus on their business and let our team do the Enterprise Delivery.