Sets New Standards for Cloud Vendors; Challenges Peers to Deliver Full Promise of Cloud, Buyers to Demand Their Rights
SAN FRANCISCO — (BUSINESS WIRE) — March 4, 2010 — Fairmont Hotel— RightNow (NASDAQ: RNOW) today issued the Cloud Challenge, an industry-wide proposal challenging vendors to finally deliver on the full promise of cloud computing. RightNow is setting a new direction for the industry by bringing vendor-client business engagements into the cloud.
The rise of cloud computing was a monumental shift in the software industry; it promised to fundamentally change how software was purchased and delivered. More than a decade after its introduction, cloud computing has undisputedly delivered on its technical promises: lower TCO, faster deployments, higher user adoption, and rapid innovation. But the cloud also made significant promises to change the way vendors engaged with their clients. Promises vendors have been happy to forget.
Until now, enterprise cloud vendors’ business engagements have been no different than traditional on-premise vendors. There is still a tremendous amount of shelfware. Clients must commit to interminable contracts and buy more than they need to get pricing certainty. Vendors don’t take accountability for client results, preferring to consider their part of the deal done once the sale is closed. The result: clients are only getting half of the value from the cloud. It is time for this to change.
The Cloud Challenge: New Standards for the Cloud Industry
The Cloud Challenge establishes new standards by which enterprise cloud vendors should engage with clients. Every enterprise vendor claiming cloud should adopt these standards. Every enterprise software buyer should accept nothing less from their vendors.
1. No Shelfware – clients should be able to buy only what they need and still get long-term pricing certainty
2. Minimum 5-Year Pricing Certainty – clients should get long-term fixed and transparent pricing without long-term lock-ins
3. No Long-Term Contract Lock Ins – clients should be able to walk away from contracts if vendors aren’t delivering value
4. No-Haggle Flex Up / Down – clients should be able to easily adjust seats, capacity or even product modules up – or down – to meet their changing business requirements
5. “Roll-Over” Usage – clients should be able to adjust for seasonality without having to purchase capacity for peak usage that then sits idle most of the year
6. Cash Service Credits – clients should receive a cash reimbursement if a vendor fails to meet its service commitments
Comments on the Cloud Challenge
“We are challenging the industry to finally deliver on the full promise of the cloud. I challenge our peers to step up and engage with clients like true cloud vendors, not on-premise vendors in cloud clothing. And I challenge clients to stand up, demand their rights, and break free from the shackles of traditional enterprise software engagements.” Greg Gianforte, chief executive officer, RightNow
“As someone who has been involved in many enterprise software negotiations, I commend RightNow for issuing the Cloud Challenge. RightNow is continuing to refine and improve the cloud model as a solution in which a customer pays for what is delivered, and what delivers value. This is way ahead of the traditional enterprise software model and even SaaS and hosted solutions requiring lengthy up front commitments, in which the customer assumes all the risk.” Jim Huser, chief information officer, Guthy-Renker
“Client–vendor relationships in SaaS are perpetual and it is imperative that these agreements provide a chance for a new slate. CIO’s, CMO’s, LOB execs, procurement managers, and other organizational leads should ensure that the mistakes they made in licensed software aren't blindly carried over.” SaaS Bill of Rights, R “Ray” Wang, partner, Altimeter
RightNow Cloud Services Agreement
RightNow is addressing these standards with the RightNow Cloud Services Agreement, a new approach to enterprise software licensing also announced today, and the RightNow standard subscription agreement effective January 1, 2010.
Watch the announcement event at www.rightnow.com/march2010
Learn more at www.rightnow.com/cloudchallenge
Follow RightNow on twitter at @RightNowNews
Join the Cloud Challenge conversation on twitter #RNOWCSA
RightNow is helping rid the world of bad experiences one consumer interaction at a time, seven million times a day. RightNow CX, the customer experience suite, helps organizations deliver exceptional customer experiences across the web, social networks and contact centers, all delivered via the cloud. With more than eight billion customer interactions delivered, RightNow is the customer experience fabric for nearly 2000 organizations around the globe. To learn more about RightNow, go to www.rightnow.com.
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Chaundera Wolfe, 406-556-3323 or 406-548-4892
Horn Group for RightNow
Amy Grady, 415-905-4045
The Blueshirt Group
Todd Friedman or Stacie Bosinoff, 415-217-7722