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Aligning sales incentives to drive success in the cloud

Structuring the right cloud-based sales incentive model is becoming a critical consideration as technology companies build their cloud-based sales model.

Overview

As these companies shift to a cloud-based approach, the launch of new cloud-based businesses strains a company’s operational ability to deliver and scale and requires a completely new set of go-to-market strategies and operational processes.

This paper discusses the challenges in developing sales incentives for cloud-based services and the role of channel partners in the cloud-based sales model and presents guidelines for technology companies for designing an incentive compensation structure.

Background
The market for cloud-based services is a promising one. However, Accenture research with senior executives in software, hardware, and technology-enabled organizations has confirmed that virtually all these types of companies struggle to deal with the operational complexity caused by the rapid rise of cloud computing. The launch of new cloud-based businesses strains a company’s operational ability to deliver and scale and requires a completely new set of go-to-market strategies with operational processes.

The disruption to traditional sales incentive plans is particularly true for cloud-based Infrastructure-as-a-Service (IaaS) sales models, where credit for selling a major data center, for example, is moved to a consumption-based sale, creating new levels of complexity. An additional issue that must be addressed is how to design appropriate sales incentives for channel partners.

The Apporach

What's Next?