Sobering CIO spending survey results

As you might expect, the latest rounds of survey responses are not bullish on IT spending.  No surprise there and it's not like there has been wild spending going on anyway over the past few years.

CIO magazine published their most recent survey results here.  A couple things that caught my eye:

  • 40% of CIOs plan to decrease their budget which is roughly double the response from earlier in the year.
  • Over 70% have postponed or are planning on postponing discretionary IT projects.
  • About half have renegotiated IT contracts and frozen hiring in the last 6 months.

Here's some additional perspective on the survey from InfoWorld.

Dominant ERP vendors struggle with making SaaS work

Here's an interesting article in InformationWeek covering an interview with SAP America's CEO Bill McDermott on the business prospects for SAP going forward and a few broader trends.  Outside of a rather somber outlook for enterprise software spending, he does take an interesting stance around software as a service and that the whole notion of on-demand computing (and its Business ByDesign product initiative) is incompatible with their business realities (my words, not his).

"It's not that SAP doesn't support the trend
toward cloud computing — it just doesn't see how it can operate a
so-called cloud and bring good returns to shareholders.
"


Not as blunt as Lawson Software's Harry Debes' comments about perpetual software licensing being like cocaine but along the same lines.

Meanwhile, Aravo Solution's recent announcement about being selected by GE to provide a supplier information system for 500,000 suppliers across 100 countries illustrates the other side of the equation where a newer, more agile SaaS company is able to land a significant enterprise deal.  Here's THINKStrategies' Jeff Kaplan on that announcement.

SaaS/on-demand/cloud models are tough to swallow if you are use to doing business on a perpetual license /capital expenditure basis.  Regardless, I still believe that delivering software on-demand is a better deal for the end enterprise customer although not necessarily for the industry incumbents that have built their businesses on licensed and installed software.

Enterprise lead & demand generation for early stage companies (part 4)

Apologies for being silent for a few days but wanted to continue this series of posts about lead and demand generation for enterprise products.  Below are numbers 10-12 and here is the complete list linked as appropriate:

1. Brokered introductions
2. Partner marketing
3. Direct outreach & appointment setting
4. Tele-prospecting/tele-surveys
5. Guaranteed lead generation programs
6. Sponsored email blasts
7. On-line advertising
8. Email newsletter nurture programs
9. Direct mail
10. Events
11. Market awareness – self generated
12. Market awareness – through a PR firm
13. Analysts
14. Print advertising


10.  Events

  • In many cases, I think event companies are the only ones that make money in the technology business.  That said, if you get really specialized in terms of vertical industry or user target they can be worthwhile.  Avoid horizontal or technology shows where there are no prospects.  Submit someone as a speaker or panel member for those (and highlight some of those survey results).
  • Look at where your competitors go (should be listed on their sites) and where your target distribution partners go (on their sites as well) 
  • Focus on professional associations or narrow targets if you are inclined to go and exhibit.  Even then, you will not get much lead activity other than contact info to drop into your nurture program.
  • If you have a customer that is game, submit a case study for them – most events don't want vendors on stage that have not paid to sponsor.  Makes the high dollar sponsors grumpy. 
  • If you find a good one, get the list of attendees beforehand (if possible) or afterwards and add them to your nurture program. 
  • If you can swing it, work that list and set up meetings (or even agreements to spend 10min) in advance.  You can also secure a hotel suite in the same location as the event to serve as demo room/escape from the crowd.
  • You'll also get a bit of market intelligence, but a booth and sponsorship is a lot to pay for something you could have gotten with a ticket.
  • Also focus on local/city specific interest groups or focused professional gatherings.  You can sponsor a meal and submit to present on the problem you solve.  Remember to be on a topic, not on your product/service as they want to learn something new, not hear a sales pitch.

11.  Market awareness – self-generated

  • This is about identifying those that write about your space and competitors including analysts, journalists, and bloggers and doing direct outreach to them about what you are doing (or your survey results).  They tire of being pitched by PR firms so direct outreach from an exec at the company is a nice touch.  Do a Google blog search on your company, your competitors, or terms about your space and you will quickly assemble a list of targets.
  • Consider a blog.  Yes, it is work but allows you to generate dynamic content and have a platform for information sharing.  You can have a company one with multiple contributors just make sure you have an editorial control in place to review what is written before it is published.  Check out Typepad (this is the service I use) or WordPress.  Nothing wrong with free blog options but if you're serious, you can come up with 5 bucks a month.
  • If you blog, you will be linked to by others.  Linking drives traffic and allows people to find you.
  • Even if you don't blog, comment on the posts that others make.  Even established publications are getting the fact they should open comments on stories.  Do not shamelessly pitch your company, but do have something meaningful to say and identify where you are from.  If someone writes about you, thank them.  If they write about a competitor, add something to the story not a compare/contrast. 
  • Look into things like putting a demo up on Youtube.  Record a presentation or demo with a product like Camtasia and upload it.  It can then be linked to, shared, or tagged a will.  Plus it shows up on search results.
  • Do podcasts.  All you need is a reasonable microphone and freeware like Audacity.  Post them on your website.  Things like this (and video) will get more clicks because they are more consumable than documents.  But, remember to be brief and succinct in your message.  Shoot for 2-4 minutes and if you have more content break it into 'chapters.'
  • To track all this either use an RSS reader (like Google Reader) or just set up a handful of Google Alerts that will email you when your company, a competitor, or a particular word or phrase is used pretty much anywhere on the web. 
  • If you are ready to go advanced, check out Twitter and what micro-blogging is all about.
  • I am not hugely convinced that search engine optimization (SEO) is in itself a path to lead gen/market awareness.  I believe that dynamic content generated by blogging is more relevant and interesting.
  • Make sure your site and blog are being indexed and incorporate SEO best practices in your copy but don’t waste huge dollars on it.

12.  Market awareness – PR

  • Finding a good PR firm and justifying the dollars you will spend is a tough road.  After many years and both national and small firms, I found one I really like and have mentioned them before – VisitechPR out of Denver.  Small shop, tech focused, and understand their role – get you coverage.  Spending big bucks to get a junior level staff member to represent you is a waste of dough.
  • These folks can serve as your force multiplier to get the word out but they have to be armed with something to say – customer case studies, survey results (picking up a theme here?), unique perspective, etc.
  • Getting coverage is like getting sales.  Both take a lot of activity to generate a few results.  Consider building a coverage pipeline as important as a sales pipeline as it creates the reinforcement and validation you need to drive sales wins.