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Friday, 21 March 2008

Why Your Buyers are Changing

Buyers_4 Marketers and sales people that call on IT organizations learned long ago that real decisions (and budgets) are often held by users. IT can't always say yes but they can say no. So we've learned to sell to the user, but keep IT in the loop and at least make them our friends. Some sales people call it "neutralization." (Even if IT won't cozy up to your friendship offer, at least you should prevent them from saying no.)

Buying power is shifting due to three trends:

Consumer technology is picking up more speed than ever. The rapid evolution of consumer technology, and its slow creep into the business world, is changing the way IT purchase decisions are made. As much as they don't like it, IT staffers need to find ways to support devices its users pick up at their favorite retail stores. The same support scenario holds true for solution sellers.

Apple is on the way back, big time.
By 2011, analysts say Apple will double its US and Western Europe unit market share. It's a staggering statistic. Users are growing more frustrated with the PC experience, fueling the attractiveness of the Apple model. Application sellers have diminished their support for Apple platforms over the years - a decision that needs to be revisited as Apple comes back.

By 2011, analysts say Apple will double its US and Western Europe unit market share.

Software licensing is rapidly becoming history. Analysts from Gartner predict that half of IT's purchases will be influenced, if not completely decided, by end users by 2010.  And a third of them will decide to forego ugly software licensing terms in favor of service subscriptions. If you're a software company or application development house and you haven't addressed the SaaS model, you could be in trouble.

I see many tech providers acknowledging these trends in their sales messages, but doing it all wrong. A common phrase I hear, "Like it or not, <<fill in IT buyer name>> you need to get over it and face the new realities."

Not exactly a way to win friends and influence people. Don't forget, IT staffers are hugely respected when it comes to managing the downside of wild west users that buy whatever they want and expect support.

Analysts from Gartner predict that half of IT's purchases will be influenced, if not completely decided, by end users by 2010.   

Security issues are very real, and senior managers aren't about to open the corporate computing doors to every social network and end user device that comes along. If your response to this scenario is, "Get over it" you may find yourself in a lonely corner.

So while it's true that end users are increasing their power as decision makers, well publicized security breaches can bring a company's reputation down fast. To keep IT from saying no, make sure you get users to buy off on your security story. Or at least create a way for IT to evaluate your support and security model before the users sign the contract.

Posted by Richard Fouts at 11:52 AM | Permalink

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