Pressure Season for Suppliers and Your Window of Opportunity As the calendar flips toward the end of the fiscal year for major technology suppliers, procurement teams are entering a critical, and often perilous, window. January fiscal year-end suppliers are pushing hard to “make the number,” and their account teams are laser-focused on closing deals that boost quarterly and annual performance metrics. That urgency can cut both ways. While suppliers will apply every sales pressure tactic in their playbook to close favorable deals for them, savvy buyers can use this moment to turn the tables and secure exceptional commercial outcomes, if they ...
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These days the whole world sometimes feels like a Snowflake… and by that we mean that growth is slowing, and stocks are generally down as reality sets in. Snowflake, the company, is still growing but nowhere near the breakneck speed of the good (?) old days. Macroeconomic factors may be contributing to that, but we believe that, like our clients, the market for Snowflake has figured out that deployments need to be actively managed so that the negotiated costs are not exceeded. Early Snowflake customers learned the hard way that their first agreement would ultimately set the floor for what they would spend, eventually understanding that their ...
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The Rise of the Consumption-Based Pricing Model One thing is clear in 2022: The technology industry is moving away from per user per month subscription models and moving towards consumption-based pricing models, and it’s no wonder why. With the ability to capture value from all customer consumption, the revenue-capture and resulting earnings of firms like Snowflake have significantly outpaced even the most successful subscription-based companies, and this is pushing enterprise valuations into a completely new stratosphere, providing ample incentive for technology suppliers to migrate towards consumption-based pricing models. Executives like ...
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