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Research Report

Technology Upgrade and End-of-Life Management

This report is for XaaS Product Management members only

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As the life cycle of technology accelerates, solutions move to the cloud, and security vulnerability becomes a top concern. As a result, many technology providers are faced with the challenge of upgrading existing customers from legacy offerings to either a newer edition of the same product or a completely new offer. These upgrades can be challenging for multiple reasons and are particularly prickly for on-premise technology providers. Some of the business challenges with upgrades include: 

  • Active resistance from customers.
  • Lack of customer readiness (e.g., their deployment environments or the available personnel to handle the upgrade).
  • Financial impact to the vendor to support outdated technologies.
  • Security vulnerabilities of older technologies.
  • Support organizations incentives not aligned with the product strategy (i.e., being accountable for a revenue number while the business wants the customers on the latest product revisions).
  • Sales and service motions are not optimized to execute the upgrade plan.
  • Identifying which customer segments to upgrade when.

This paper will provide framing for how a technology provider can segment their existing install base for effective upgrade or upgrade execution. It covers the following topics:

  • The cost of kicking the can down the road.
  • The carrot and the stick of customer upgrades.
  • Three types of transition.
  • Segmentation steps for a tolerable transition.

Authored By:

Laura Fay

Vice President and Managing Director, Products and Offers Research and Advisory, TSIA

Publish Date: October 13, 2022

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