Disrupting the Market
BTO Group is an Internet solution provider delivering advanced cloud solutions for
mid-to-large size organizations—providing a range of software, consulting, integration,
and security services to senior IT executives.
BTO Group facilitates the adoption of Internet-centric services by eliminating the integration and operational hurdles associated with existing enterprise infrastructure—also referred to as hybrid cloud integration services. BTO is an acronym for Business Technology Optimization. We deliver market disruptive technologies combined with advanced software licensing and implementation models (business-to-business), with rapid time-to-market. We own, license, and white label various intellectual property in the form of software and hardware.
BTO Group’s mission is to transform the way technology is purchased,
implemented, and maintained across the organization.
We mitigate the monetary risks associated with the purchase of technology (software and hardware)
by delivering and invoicing clients based on functionality supplied, not on the software or hardware delivered.
Customer invoicing is calculated using a consumption-based pay-as-you-go model (elastic model) hinged to functionality rather than to the software or hardware installed. As a result, technology implementations are more precisely aligned to customer requirements and business needs, with maximum efficiency, low risk, zero software maintenance fees and zero shelfware (Shelfware is typically software that didn’t return the value of its cost before being placed on a shelf).
As shelfware increases, it is often referred to as software bloat. Software bloat drains an organization of cash and drains IT of both time and the monetary resources that it needs to help move the organization forward. Software bloat is accumulating at great speed. According to recent surveys, approximately 60% of larger organizations have 10% or more of their current software assets sitting on the shelf. With the global market for packaged software at over $325 billion, it suggests that the global overspend on shelfware is staggering. According to a recent joint study by Flexera Software and IDC, a “significant portion” of new technology investment is being wasted, and even mismanaged…effectively creating many millions of dollars’ worth of unused software, or shelfware.
While pre-packaged software made sense a decade ago (particularly in manufacturing), the North American market is primarily services-driven, and the pace of innovation in the service oriented economy is simply too fast for pre-packaged software to catch up. Moreover, business logic within the services market varies largely even within the same vertical, making packaged software and the more monolithic software platforms inefficient and wasteful.
BTO Group breaks down all vendor software and hardware products
by their functional capabilities, providing these functional capabilities
independently of each other to meet the needs of its clients.
In other words, we integrate and invoice our clients based on the capabilities delivered, not the software package or hardware installed. Software usage fees are based entirely on functionality that is broken down into highly consumable and granular service offerings that may be further customized by our clients. Clients are not required to purchase entire software or hardware products or platforms. In fact, in most cases the notion of purchasing software in the traditional sense does not apply. Usage models are consumption-based (pay-as-you-go), and invoiced monthly. Our clients purchase only what they need, where and when they need it. There are no upfront costs with the exception of consulting fees when applicable.
For clients of BTO Group, transforming their current software license estate is a critical requirement in managing the spiraling costs associated with software implementation, and it is a core mission objective of BTO Group. We strongly believe that most of the current software licensing agreements in place today no longer make good business sense for the Fortune 500/1000. The question then becomes, how does the organization modify these agreements? Modification of software licensing and the reconciling of product use rights with a more consumable elastic model are inevitable.
The broad disruption of the IT industry as we currently know it has begun. More consumable software and usage models, coupled together with function-aligned pricing and creative delivery options are replacing the more costly and highly inefficient packaged software and hardware. The larger IT vendors, supply chains, and services organizations must adapt or cease to exist. Companies such as Amazon with their Elastic Compute Cloud (EC2), SolarWinds, Spiceworks, CopperEgg, Adobe, and Autodesk are disrupting the market with more consumable, functionality-driven services that are now displacing the more expensive traditional packaged software suites.
BTO Group is the first Internet services provider to combine advanced cloud technologies with a 100% elastic services model to solve the following general problems for its clients:
- Too much software, hardware, and infrastructure to support
- Too much complexity, too difficult to manage, too expensive
- Too many costly software maintenance fees
- Too difficult to maintain technical competencies
- Companies are in a never-ending IT purchase-mode that gets worse every year
- Too many software vendor products that never get fully or correctly implemented
- The largest vendors are nickel and diming their customers to death
- Business units consistently require features and functions the IT group cannot deliver
- Budgets keep increasing and never seem to be large enough
- IT costs are spiraling out-of-control and purchasing models once adequate are now flawed
- Product use rights (upgrade rights, downgrade rights, secondary use rights) contained in software contracts detailing how software licenses may be used, by whom, in what circumstances (on what devices) is way too complex and costly to manage across the enterprise
- The largest IT vendors and managed service providers are not willing (or too slow) to change their business models, specifically because the sort of paradigm change that is coming (though inevitable) obliterates their revenue models as they currently exist
Misalignment in the Market:
- IT purchasing model is no longer aligned with evolving business requirements
- Technology licensing models are no longer aligned with evolving business requirements
- Implementation models are no longer aligned with evolving business requirements
- Technical expertise (in-house) is no longer aligned with evolving business requirements
How is BTO Group different?
BTO Group is an Internet solution provider with deep roots and subject matter expertise in existing enterprise IT infrastructure. We understand the complexities involved in legacy-to-cloud migration and therefore the benefits in removing as much upfront risk and technical barriers as possible. We accomplish these objectives by providing highly modular software capabilities and services to better align technology, services, and support to the client’s line-of-business. We then provide these software services on a pay-as-you-go consumption-basis.
Our consulting and technology focus is dedicated to accomplishing three objectives for our clients:
- Provide highly flexible cloud integration options and migration paths
- Mitigate clients’ monetary risk through advanced software licensing models
- Reduce all upfront costs
We accomplish these objectives by providing our clients with maximum flexibility to make architecture changes before, during, and after a project is completed without incurring a capital or operational software expense—thereby speeding up project delivery. Our pay-as-you-go consumption-based licensing models mitigate costly upfront investment, including the elimination of potential shelfware after the project is completed. The result is a precise alignment of IT services, creating maximum efficiency and rapid time-to-market for the business.
Service delivery options come in the forms of Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS), and Infrastructure-as-a-Service (IaaS). We deliver our highly consumable and modular software services to stakeholders with as close to zero up-front investment as possible (OpEx versus CapEx).
Commercial software transformation has begun. In the upcoming years, software purchasing will evolve from the traditional enterprise IT model that has existed since the inception of hardware and software, to a more efficient more consumable model. As counter intuitive as this concept may sound, the concept of purchasing hardware and packaged software will diminish almost entirely in growing areas of information technology. The notion of purchasing hundreds of technology products will no longer be plausible. BTO Group will be a leader in this disruptive market transformation.