Tailored System
Recognizes Revenue 2 Years Early
A three-tier hosting strategy let GM recognize $20M in revenue two years ahead of plan — and led to a $5M follow-on enhancement contract.
The Problem
The GM wanted to sell a new web-based portfolio system to an in-house client who licensed the software to run in their own data center. The client had failed three times to write a web-based system and asked for help. They had only mainframe development/support staff and weren't positioned to take on open-system technology. The client needed two years to staff the necessary UNIX/Linux personnel before they could go live in production — but GM wanted immediate revenue recognition.
The Strategy
Analyzed the three-tier architecture to find a service demarcation that would allow deployment across both data centers. Assembled a small group of development and systems personnel and stood up a web-hosting service in Denver that leveraged redundant DS3 WAN circuits connected to the client's backend mainframe brokerage data in Cleveland. After a quick proof-of-concept, presented the client with a plan: host the complex open-system applications in the company's data center while the client continued to run mainframe services locally.
The Outcome
- Client licensed the web system, generating $20M per year in the current fiscal year — recognizing revenue two years early.
- After six months of using the product, the client signed for an additional $5M in development for product enhancements.
- GM was thrilled. The client got a working web service after previously spending $100M trying to develop one without success.
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Find the Architecture That
Unlocks the Revenue
Sometimes the right service-demarcation decision is worth eight figures. Talk to Dennis about your platform strategy.
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