Monday, July 24, 2017
Before offering cloud-based Microsoft Dynamics NAV solutions there are several things you must consider. Use this blog post as a guide to step you through the decisions you must make to build a successful cloud business for your organization.
Clearly define your cloud solution
Industry. First, decide on which industry you will target with your cloud solution. This is critical to your success. You could select the one in which you have the most expertise or maybe a new industry where there is greater potential for higher/increased sales. When selecting an industry, market size should have the greatest influence on your decision. Cloud success is positively correlated with volume, therefore, the size of market must be large enough.
Furthermore, you should consider the primary industry of your existing customer base as it is easier to sell for existing instead of new customers. If some of your customers are running old versions of Microsoft Dynamics NAV it may be cheaper for them to upgrade their solution and deploy on Microsoft Azure rather than stay on on-premise solution.
Product. After selecting your industry decide which product you will sell for this market. Today in the Microsoft Dynamics SMB (small and medium business) market we have 2 products: (1) Dynamics NAV and; (2) Dynamics 365 for Financial and Operations, Business Edition. To make your start-up with subscription based cloud business smoother, we would recommend to focus on one of them first (based on your skills, business and target market).
Another considerable decision to make is whether to use integrations. In most cases a single solution does not cover all industry needs. Integration with other products become more and more important. Products to integrate with can be created by you, other Dynamics Partners or can be external products such as Office 365, Dynamics 365 for Sales or Power BI.
Cloud infrastructure. Select cloud infrastructure provider for your product. If you choose Microsoft Dynamics 365, you are already running on Microsoft Azure. On the other hand, if you go with Dynamics NAV, many cloud infrastructures could be used. When comparing different hosting alternatives, integration capabilities, security policies, number of datacenters and other factors it is highly recommended to use the public cloud provided by Microsoft called Microsoft Azure.
Determine Dynamics NAV cloud-based pricing
Correct pricing model is essential for a successful cloud-based business. Keep it as simple as possible. We recommend having the per-user-per-month pricing model which is easy to understand and budget. There are four main elements to consider when building per-user-per-month pricing:
- Periodic (subscription-based). This would be the main element that includes hosting and Dynamics NAV licenses.
- Initial Set Up. This can involve implementation set up or training for your customers.
- Ongoing. This can include some support or development work if a customer requires additional functionality.
- Other potential services such as solution upgrade or account management.
Compose the right Dynamics NAV (on Microsoft Azure) Team
To run a successful cloud-based business you must have a dedicated team responsible for cloud business in your organization. From our cloud business experience, the most successful are those Partners who have dedicated cloud team with sales, marketing, development and support specialists.
Define cloud-based marketing practices and execute
Regarding cloud-based solution marketing, it should favor digital means. Cloud services are online services that demand a high volume of buying customers to succeed, different from the traditional on-premise solution selling model.
It is critical you are consistently publishing high-value, industry tailored content to digital channels to drive customers to your website. It should contain the right mix of marketing offers and materials to educate your cloud-based customers on the solution you sell. Research, understand and support your target customers from day one to succeed in your cloud-based subscription business.
Want to know more on how to start your cloud-based solution business successfully?
Join the 55-minutes knowledge sharing session, delivered by 1ClickFactory, on August 23nd on How to Start a Subscription-Based Business with Dynamics NAV on Azure to learn:
- How to prepare a Dynamics NAV on Azure offering for your customer?
- What elements are critical to building an efficient pricing model?
- What are the potential risks and how to mitigate these risks?
>> 1CLICK to Register Now: CLICK HERE!
We look forward to having you join us for webinar.
Share your questions ahead of the session! Send us your questions ahead of the session to have them answered thoroughly as part of the session. Send your cloud-based solution business questions to firstname.lastname@example.org today!