Businesses are recognizing that next-generation technology holds the future to grow. All businesses are becoming tech businesses and getting wiser by the day about what works and what doesn't. And this is impacting all facets of the technology provider industry. Tech companies are now positioned to make substantial impacts on markets, and bold decisions are required to shape the next wave of technology.
How will your company stand out?
Sensing and responding to market demand is the winning path to market share. And ensuring that strategy, execution, and outcome all mutually support each other is the lifeblood of this path.
Let's take a look at 3 long-term changes in the industry that will impact tech CEOs and necessary strategic actions to prioritize.
Trend 1 - Significant implications of Cloud infrastructure and platform service providers
Even though the progress toward the cloud has been gradual, the year of the virus is speeding things up. The next frontier in IT products will be driven by cloud infrastructure and platform service providers.
Businesses of all kinds are learning to rely on cloud technologies, and as they continue to adjust to hybrid work environments in 2022, these applications will only expand. Even though the dependence on cloud infrastructure and platform service providers will vary by organization, we see that more than 90% of software application providers that use cloud services as part of their product offerings will promote and sell their products through cloud platform marketplaces.
Trend 2 - No longer optional: Free trials and Freemiums
The next trend to note is that free trials and freemiums are fiercely taking over and will become the new normal for IT offerings. They are no longer nice to have but a must-have, offering proof of value to customers.
Prospects are increasingly expecting freemiums and free trials in the evaluation and selection process. Especially when it comes to digital offerings, such as software, an "experience good" that is hard to evaluate until you've actually tried it. Adopting this business model will help in hooking customers on to interesting features and enable tech CEOs to increase their companies' ability to close deals.
"But living by your free service means dying by your free service."
Well, there's certainly merit in this argument if your business model solely relies on page view volume. Then, you would be concerned about why people would ever pay, how to avoid eating up a ton of costs with no revenue supplement, and how you will remain competitive. But other than that, freemium models enable tech companies to grab significant market share while also building a strong enterprise business in the face of giant players.
- Customers with limited requirements can get by for free but recommend the paid version to their company at the right time.
- Cut off lengthy sales pitches.
- Surface to a much wider customer base.
Take a look at Google Apps for a great example. You can use as much Gmail and Calendar as you want, but if you want the real business version on your domain, you'll need to pay up. Instead of wasting time and money promoting the business version, they created a community of free users and evangelists in the process.
Trend 3 - Demand generation and customer acquisition intertwined with geopolitics
In today's geostrategic environment, geopolitics and technology are inseparably interlaced. And instead of being one of their top business concerns, many tech CEOs are paying little attention to factoring in how geopolitical risks can impact their digital agendas.
Geopolitically driven cyberattacks targeting the US Government's intellectual property and intelligence are one of the recent and clearest examples of this interconnection. The effects exposed tens of thousands of companies and government agencies.
Governmental industrial policies to prioritize self-sufficiency and self-reliance in key technologies, changing in technology regulations, increasing geostrategic competition, and add to that the long-term changes brought by COVID-19. All of this requires increased C-level attention and a full grasp of these risks by the CEOs to ensure the company's growth and lessen the impact of political risk events across all sectors.
Key actions to prioritize
Tech CEOs looking at their operations from last year saw fragile supply chains, untrustworthy information, and radically new customer needs.
They have learned that they shouldn't wait for the "new normal," they build it themselves.
To help move the company in the right direction, tech CEOs must consider the following:
- No longer take a lukewarm approach relative to CIPS providers, but adapt in a world where cloud infrastructure and platform service dominates every market is critical for thriving.
- Be prepared to address customer demands for whole-product solutions.
- Embrace new technology partnerships that can elevate the company's value and competitiveness.
- Incorporate political risk analysis into current risk management practices.
- Deep understanding and adaptation to the dynamics of geopolitical forces for growth and market differentiation.
- Collaborate with partners that can elevate value and competitiveness.
The crisis has been a great opportunity for change. Many companies have changed but are not able to stand still. Consumers are looking to fundamentally change their lives once the pandemic is over, and tech CEOs are now required to be bolder and accelerate their company's transformation. Only the ones who succeed in this will sustain the gains they've made and shape a more profitable future.
Are you ready to win the turns and scale bigger?
At CHASM, we help emerging tech providers optimize their growth and Go-to-Market strategies, applying industry-leading frameworks in a hands-on approach that will deliver instant results.
Reach out to us at firstname.lastname@example.org