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Thanks for your responses - glad to see that some of us can have...

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pyrrho

55 Posts.

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12/12/17

16:08

Post #: 29573531
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Originally posted by U3962521 ↑

Yes and no. Having worked and still working in software sales you cannot announce to the world you have signed a deal without first getting permission by the customer you can do so and having a signed contract.

I have customers I have sold to that part of doing business with are not referencable externally and even internally ( ie i can't tell other work colleagues I have signed a big contract with them)
So I am not concerned at all with the level of detail gsw are provide: in fact I am amazed they are providing the level of detail they are. This is confidential info, and getting customers to go on the record and disclose who they are using is not the norm. In fact more than half of all customers choose not to be referencable, it's close to 25 percent choose to be referencable with the remainder wanting it to be anonymous.

Now i agree the contract they sign because it is on consumption is very low risk for the customer. They agree a price banding that based on quantities delivered in a year this is the price point. This could be fixed or it could be banded like the tax rates. The more deliveries using gsw the lower the per unit cost.
So customers initially might be a bit hesitant. He'll some companies like Yum probably have internal IT teams who have been trying to build a soln for years and failed desperately opposed to gsw in their ecosystem especially if it's going to make that it team look incompetent.
But once business lines see the benefits of gsw, if those benefits materialise at some point they will say right this is working out, let's go across the whole enterprise. At this point they may reach back out to gsw and try renegotiate the per delivery fee now it's across the whole enterprise.

Think of gsw model as a land and expand approach. Very low outlay initially means every customer can start small. But if successful usually in 6-18 months that software is rapidly expanded across the entrrprise.
In my company we have a similar approach, get in the front door, then in 12-18 months we see the customer wanting to do a whole of enterprise deal. But the company I work for charge per user, not per delivery.

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Thanks for your responses - glad to see that some of us can have rational and reasonable discussions and debate and hopefully learn from each other. Pity that so many have to turn defensive the moment anyone starts any sort of criticism.

I totally get what you are saying. I'm just questioning how some investors are reacting to each announcement (e.g. Yum / Amazon) when so much of the commercialisation component has not materialised and has so much inherent risk embedded. As you said, commercialisation can only happen if integration is successful, the customer actually likes the technology and then if it is rolled out throughout the enterprise.

For example, on 28 April 2017 GetSwift announced an agreement with Pizza Hut. It is now December and I know someone who runs 20+ franchises in metro Sydney who hasn't heard of GetSwift. So how valuable was GetSwift's announcement?

GSW Price at posting: $3.56 Sentiment: None Disclosure: Not Held
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