Ensuring you are covering the addressable market will result in more revenue opportunities. A key component is an intersection between your solution and the adoption rate of the cloud.

The Global Cloud Computing Market is estimated to grow 24% annually by 2020.  This rapid growth has caused the information to travel at the speed of light.   In turn, customers have become more agile in their decisions in managing the business.  Adapting to a moving target can be the difference between your business thriving or dying fast.  It changes how products are designed and how internal functions collaborate.  Ultimately, you will need to rethink how your Go-To-Market strategy changes.


In this post, we will discuss Routes to Market, specifically, as it relates to the shift to Cloud Computing.  This post will apply to organizations thinking about moving their services to the cloud. Organizations are struggling to make the switch and generating demand.


What Are Routes to Market?


It’s the selection and optimization of your sales channels.


Why Do It?


Ensuring you are covering the addressable market will result in more revenue opportunities. A key component is an intersection between your solution and the adoption rate of the cloud.  For example, what segment of the market is your solution targeting? How is that impacted based on the adoption rate of cloud services in that segment?


How Do You Do It?


There five key steps to activating successful routes to market.  You can also click here and take the Routes to Market Readiness Assessment.


  1. Define the Target Market


First, divide the broader market into subsets of buyers who have common needs and solutions options. An essential nuance here is the overlay analysis on industry and segment “cloud shift.”  Defined as the rate of growth by industry vertical moving to the cloud.  Example- Healthcare cloud computing market is expected to grow 21% by 2020.  Other industries such as Insurance or Energy & Utility are projecting lower growth rates.


  1. Understand the Customer and Buying Preference


Unlock value from the market by knowing how your buyers make purchasing decisions.  The cloud has changed the dynamic from buyer to buying decision team.  Your Marketing and Sales team need to understand the motions to gain consensus.  The consequences of doing this incorrectly are lower margins and product commoditization.


  1. Know the Customer Acquisition Cost & Lifetime Value


By now, you don’t need an education on how to calculate CAC: LTV ratio.  Dimension this number by region, segment, and product category ensures optimized routes to market.  The economics will determine if you need cloud partners to deploy your solution or sell direct.



  1. Develop the Value Proposition


Developing a clear and compelling value proposition is critical. In many ways, it is the most important part of the process. After all, how can you sell a product or service if you can’t articulate its value?  Understand the benefits to the customer, link the delivery benefits, and position against the competition.


  1. Devise a Channel Strategy


The term “channel partner” is a generic term that encompasses a variety of business-to-business companies.   They typically cover sales, distribution, and implementation of a technology vendor’s products and services to customers.  Within the heading of channel partner exists different approaches to partnership:


  • Systems Integrators (SI) – these organizations specialize in the integration of disparate technology solutions within an organization.


  • Value Added Resellers (VAR) – as the name implies, a value-added reseller is a company that adds features or services to an existing product. They then resell the integrated product to customers.


  • Independent Software Vendors (ISV) – these create specific applications that will often run on the platforms of larger technology vendors. They create highly niche software products for individual organizations.


Walt Megura, the Vice President of Emerging Industry Segments and Channels for Ericcson, shared his experience in creating new beachheads in verticals that provide future long-term growth.  View his SBI TV appearance here.


The cloud is still uncharted territory for the majority of organizations.  Companies will look to channel partners to help navigate them towards success.  Partners can boost productivity, collaboration, and security to become market leaders.  Leveraging the five steps above can help bring clarity and focus to making the right decision.


There is no one size fits all solution for determining your route to market.  Organizations should consider their own cost and value equation.  These considerations should be completed with a rigorous assessment.   Click here and take the Routes to Market Readiness Assessment.


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Andrew Urteaga

Helps motivate clients to design and implement new sales and marketing strategies so that they stay on track to make their number.

Clients describe Andrew as an industry thought leader. He has deep experience as an executive, having served in multiple positions as a sales leader, with a track record of outstanding performance in F500 companies.


Prior to joining SBI, Andrew held the position of VP of Sales at Avis Budget Group where he was responsible for sales and marketing leadership. He also held a variety of positions with Cintas Corporation, a Fortune 500 multi-national company, including key quota carrying positions in the sales force from sales rep through to executive leadership.


Andrew’s work has included everything from lead generation, campaign planning and sales process to designing complete sales management coaching programs and new compensation plans.

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