CaptoVerticlesCaseStudy

GROWTH OPPORTUNITY IS WHERE YOU FIND IT—IN THIS CASE,
WITHIN EXISTING PARTNERSHIPS.

 

SITUATION

Sometimes you have to find the serendipity in existing relationships. Our Fortune 100 client was outpacing the capacity of its smaller software-as-a-service (SaaS) vendor, causing them to consider parting ways. Both companies wanted the same thing—they just didn’t know how to have the conversation. The Fortune 100 company wanted to move to a commercial off-the-shelf (COTS) product to reduce costs and minimize the operational risk of the small firm’s failure. However, it turned out that the smaller company wanted to shift to this model, too, but it lacked the financial capital to make the switch.

THE SYNAPTIC SHIFT

Capto’s SYNAPTIC methodology resulted in crafting a deal with a set of financial incentives that allowed both parties to achieve their strategic objectives. The Fortune 100 company consolidated and restructured its spending with the smaller firm, insourced operations, and shifted from a SaaS model to a traditional software license.

RESULT

  • The deal financially stabilized the software company, allowing it to shift to the new business model and develop new products
  •  The Fortune 100 company influenced the new product’s roadmap to meet its specific criteria
  • Our client’s near-term demand was met and the risk of working with a smaller partner minimized
  • Both companies continued their growth trajectories without major disruption