Businessmodel of CallidusCloud

Customer Segments

CallidusCloud has a mass market business model, with no significant differentiation between customer groups. The company targets its offerings at firms of all industries and sizes. That said, many of its clients are in the telecommunications, insurance, banking, and technology sectors.

Value Proposition

CallidusCloud offers three primary value propositions: accessibility, risk reduction, and brand/status.

The company creates accessibility by providing a wide variety of options. It provides a comprehensive solution that enables clients to identify the right leads, enable sales forces, ensure proper territory and quota distribution, streamline sales compensation, and configure price quotes.

The company reduces risk by maintaining high quality and security standards, as follows:

Continuous Testing – The company regularly conducts penetration testing and vulnerability assessments on its applications and infrastructure. Applications are scanned on a weekly basis against the Open Web Application Security Project’s top security flaws, and every quarter third-party security experts carry out comprehensive vulnerability scans.

Published Audits – The company operates under SSAE 16 SOC 1 and SOC 2 certified controls framework, the data center audit standard that assesses data center operational efficiency and design across various trust criteria. The audit reports are completed annually.

Integrated Compliance Framework – The company maintains strict procedures regarding all activities in its information processing environment. It has aligned itself with ISO 27001 for Information Security, ITIL for Service Delivery, and US EU Safe Harbor/PIPEDA/UK ICO for Data Protection and Privacy. Where these standards overlap, Information Security ISO 27001 takes precedence.

The company has established a strong brand due to its success. It has more than 5,200 clients, including prominent firms such as Barclays, CDW, Nokia, and Philips. A survey it conducted showed that it had a 93% approval rating among its customers. Lastly, it has won many honors, including:

• Grand Stevie Awards for Organization of the Year and Best New Product or Service of the Year (Content Management Solution and Marketing/Public Relations Solution) in 2016
• Placement in the Gartner Magic Quadrant for Sales Performance Management
• Gold, Silver, and Bronze Awards at the Brandon Hall Group Excellence in Technology Awards
• TSIA Support Center of Excellence Award
• Cloud Computing Product of the Year Award from TMC ### Channels

CallidusCloud’s main channel is its direct sales team. The company promotes its offerings through its website, social media pages, advertising, e-mail marketing, online marketing, and participation in industry events such as expos, summits, and conferences.

Customer Relationships

CallidusCloud’s customer relationship is primarily of a personal assistance nature. The company assists customers in the following ways:

Support Services – The company offers the following plans:

• Standard Support – Provides phone and e-mail support during standard business hours, as well as product newsletters, access to community user groups, and the KnowledgeBase.
• Premium Support – Provides phone and e-mail support 24 hours a day, 7 days a week, and the ability to submit service requests online.
• Technical Account Manager – Provides a support engineer to serve as the dedicated single point of contact for product issues. Training Services – The company offers training courses to help clients become proficient in the use of its solutions. Format options include end user training, onsite training, and eLearning.

Professional Services – The company offers consultants who provide a range of services needed for end-to-end delivery of its solutions. Specific services are in the areas of implementation, application management, and technical support.

Despite this orientation, there is a self-service component. The company’s website features a “Resources” section that includes white papers, data sheets, case studies, analyst reports, eBooks, recorded webinars, product tours, and videos. There is also a community element in the form of a forum where customers can interact.

Key Activities

CallidusCloud’s business model entails maintaining and updating its platform for customers.

Key Partners

CalldiusCloud maintains the following types of partnerships:

• Resellers – The company works with firms that sell its solutions in order to expand its reach. Specific partners include Advantech Technologies, CIS Corporate, Hyperintel, Inycom, and Ultima IT.
• System Integrators – The company works with firms that provide advisory and consulting services to its customers. Specific partners include Atos Origin, Celfocus, IMS Health, and Lanshore.
• Independent Software Vendor (ISV) Partners – The company works with firms that identify potential customers it can sell its products to and refer them. Specific clients include Adobe and DocuSign. ### Key Resources

CallidusCloud’s main resource is its proprietary software platform, which serves over 5,200 clients.

It depends on human resources in the form of the engineers that maintain and update its platform, the sales employees who promote it, the training/consulting employees that provide instruction/advice, and the customer service personnel that provide support.

Lastly, it has relied on funding from investors, raising $37.4 million as of January 2010.

Cost Structure

CallidusCloud has a value-driven structure, aiming to provide a premium proposition through significant personal service and frequent service enhancements. Its biggest cost driver is sales/marketing, a fixed cost.

Other major drivers are cost of revenues, a variable cost, and research/development and administration, both fixed costs.

Revenue Streams

CallidusCloud has two revenue streams:

• Revenues it generates from the subscription fees it charges for access to its platform
• Revenues it generates from services and license fees