It used to be that marketing was top down: big ideas thought up in the C-suite and executed downwards, designed to ‘touch’ the lives of prospects and customers. How the tables have turned! Marketing is now clearly bottom-up: the ideas come from multiple micro interactions with real customers and the execution happens almost simultaneously in multiple playing fields.

1. 1
DEMYSTIFYING
MARKETING CLOUDS
Making the Decision to Build or Buy
Authors: Abhijit Gangoli, Ankush Gupta, Surajit Nath & Chitra Iyer

2. 2
CONTENTS
Marketing Technology Cloudscape 2015
Marketing Cloud What’s on the menu?
Marketers and the Cloud: Are you really hungry?
Needless to say, choice brings its own challenges
Prix fixe or a la Carte
Ready to order?
Last Word
Sources
About MarTech Advisor
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MARKETING CLOUD:
What’s on the menu?
Let’s get the obvious out of the way first. The Marke ng Cloud is basically a combina on of ‘marke ng
automa on tools’ – a suite of tools that enable marketers to create, distribute, track, analyse and
measure personalised, real me interac ons and engagements with audiences - delivered via ‘the
cloud’–acommonspaceontheinternetwherethetools-so warepla ormsorapps-arehoused.
Without undermining the importance of tradi onal marke ng channels and prac ces in the offline
world, marketers are wide awake to the fact that bulk of their marke ng interac ons now have to be
digital and real me. Both need Marke ng Automa on. The global nature of business and high cost of
se ng up and managing infrastructure has fuelled the rapid adop on of Cloud compu ng over the last
decade. Game changers like Amazon Web Services have already given organisa ons big and(AWS)
smallatasteofwhatrealdigitaldemocracylookslike.
The challenge is that the concept of ‘digital’ is ge ng wider and deeper all the me. It includes
everything from social media to websites, email marke ng to mobile apps, video games to viral
content, digital signage to interac ve voice response and new channels evolve all the me. Each social
media pla orm and content marke ng channel is a world within a world. Marketers need to be present
in every channel that the customer is in, and offer a consistent and meaningful brand experience in
eachinterac on,noma erhowbigorsmall.
The challenge of ‘real me’ is no less daun ng. Prospects and customers expect informa on,
responses and interac ons as they go, ask, think! No wai ng, period. Inability of a brand to do so
reflects poorly on the perceived customer-centricity of the brand – its very ability and intent to meet
the needs of the customer comes into ques on. 24 hour turn-around mes – once considered best in
class - are laughable in this avatar of the digital age. The ‘customer intel dashboards’ of the recent past
seem like mere prac ce runs. Marke ng automa on today demands itera ve dashboards that evolve
themselvesbasedontheevolvingrelevanceofdatathatneedsmeasuringandhighligh ng.
The Marke ng Cloud makes it possible for marketers to – in theory at least - do all of the above.
Without inves ng millions upfront in so ware development or customisa on fees. Ge ng on the
cloud means a truly real me digital approach to customer engagements and offers the possibility of a
globally streamlined process to interact with customers. In a world of diverse communica on touch
points,marke ngautoma ontoolsonthecloudofferthepossibilityofonevoiceofcustomertobrand,
andonevoiceofbrandtothecustomer.

5. 5
A few years ago, references to ‘the cloud’ seemed like another buzzword. But the rapid adop on of the
Marke ng Cloud by marketers- not tradi onally known to be technocrats – dispels any such no on.
TheMarke ngCloudisheretostay.Itisheretostaybecause-intheory-itgivesmarketerstruecontrol
over the crea on, execu on and measurement of meaningful, real- me customer interac ons that
directlyimpactsales.
• By bringing together core marke ng func onali es and technology – something that has
always been a gap area in tradi onal models – it minimises the marketers’ dependency on ‘IT’
every mehe/sheneedstoknowif‘somethingispossible’.
• By minimizing the gap between sales and marke ng and giving marke ng access to the last
mile. They are no longer two discrete ac vi es but part of a con nuum - a sale can happen at
anystageofthemarke nginterac on.Andthebe erthequalityofthemarke ngengagement
orinterac on,thehigherthechancesofaclosure.
• By minimizing the dependency on tradi onal market research surveys, customer panels and
group discussions – expensive exercises of dubious credibility - to record the ‘voice of
customer’. With marke ng automa on on the cloud, marketers have a direct, real- me pulse
oncustomerbehaviour,thoughts,ac onsandinsights.
• By enabling marketers to ‘buy as you grow’ ( ) or ‘pay as you go’ so marketers@John Furrier
spendless mejus fyinghugetechnologyinvestmentsandmore meoncoreac vi es.
MARKETERS AND THE CLOUD:
Are you really hungry?
It’s also clear that very few customers are
aligning along a single marke ng cloud;
rather they are choosing best of breed
technologies, pu ng them together and
expec ngthemtoworkseamlesslyacrossthe
organiza on.
“
”Peter Isaacson
Chief Marke ng Officer at Demandbase

6. 6
• Choosing the right cloud model, balancing the need for integra on and innova on. The tools in
thesuitewillneedtotalktoeachotherinorderforthedatatobeac onableintelligence.
• Marketers need to transform into techno-marketers or mar-techs ( ). Mindsets@Travis Wright
andskillssetsneedconsiderableenhancementtomakethemostoftheMarke ngCloud.
• EnsuringdataorcontenttofueltheMarke ngCloudenginesisanongoingchallenge.
• Dataprivacyanddataownershipconsidera onsfurthercomplicatethedecision.
• And the most cri cal on of all - coming up with intelligent marke ng messages - is s ll
something a human being needs to do. Real me engagements mean the real responsibility of
considered interac ons. Inexperienced hands at the keyboard can let loose dangerous
cannons that are impossible to take back. It can lead to all sorts of reputa on management
crises that go viral within seconds. But have no fear! The Marke ng Cloud has tools to manage
thattoo.
Needless to say, choice
brings its own challenges:
Krista LaRiviere
CEO & Co-Founder at gShi
MarketerstodayareconfusedandIdon’tblame
them. They have to evaluate and buy 10 or so
subscrip ons and piece it all together
themselves.Thisis meconsumingbecausethe
data doesn’t flow between solu ons, it is cost
inefficient.Thisproblemwillgoawaysoon.
“
”

7. 7
Depends on your appe te. And there is an in-between op on too!
A la Carte
or
Pre Fixe
Prix fixe
Choose your
toppings A la Carte
Enterprisecloudapplica on
Deliver a fully-integrated, one
stop shop solu on for the en re
range of marke ng func onality
solu ons
A closed cloud that claims to have
a complete suite of marke ng
automa on func onali es that
are (ul mately – hopefully!-
goingtobe)fullyintegrated
Large enterprises like IBM, SAP
who have taken the acquisi on
routetostackupon
func onali es
Also known as
What they claim to do
Typically looks like
For example
Openstackpla orms
Give you a best-in-class base
s o l u o n i n a p a r c u l a r
func onality, and allows other
third party apps to integrate on
top of that to add value with
addi onal func onali es and
provide customers a more
completedeck
A mini-enterprise ‘open cloud’
that is best in breed in one or a
few areas but admits to needing
(and wan ng) third party
exper se with the ul mate aim
ofdeliveringcustomervalue
Indies like HootSuite, Marketo or
HubSpot or enterprise players
likeSalesforce,OracleandAdobe
who are opening up their
hitherto ‘closed clouds’ to offer
morevalue
Best-in-breedapps
Provide the best, deepest, most
cu ng edge solu on to a
par cularmarke ng
func onality like analy cs, social
mediaorcontentmarke ng
A stand alone start up that
invests all its me and energy
into innova ng and sharpening a
par cular func onality to be the
best in breed leader for that
func onality
MuSigma (Analy cs), RedPoint
(Data Management Pla orm),
Curata (Content Cura on), On24
(VirtualEvents)

8. 8
In spite of claims, no one vendor
yet has either a full suite of best in
breed apps or a ‘fully integrated’
suite. Most of the apps acquired
for the suite are independently
developed products that were
never ini ally designed to
integrate. The space evolves so
rapidly that complete integra on
i s a c o n s t a n t c h a l l e n g e .
Integra on will remain a cost and
concern in spite of claims of being
aone-stopsolu on.
• A single vendor that offers most if
not all marke ng func onali es
that meet most of your mul -
channel marke ng needs
• Vendors are striving hard to get
them all to integrate as soon as
possible
• Freedom to pick and choose the
base tool that best meets your top
priority func onality and add
other func onali es on top based
onbudgetandrequirement
• A healthier eco system with a focus
onintegra onandinnova on
• Innova on in key func onali es
staysonthecu ngedge
• Youarekindoflockedin(tothe
base) and a set of toppings
that are designed or pre-
selectedtogowiththatbase
• You are s ll managing mul ple
vendors especially when
troubleshoo ng
• You may s ll spend on
integra on or customisa on
as no one func onality is ever
fully complete due to the pace
ofinnova on
The big catch
The upside
The downside
The open cloud model certainly
allows for a healthier ecosystem
than the other two models but
many of the pla orm ‘base’
owners are star ng to ‘regulate’
which third party vendors they
will host. They call it ‘allowing a
select set of third party vendors’
but is it just another form of
protec ngtheirturf?
Each app is independent and
addresses only one piece of your
marke ng puzzle. You are on
yourownfortherest.Goodluck!
• Quite simply you can get the best
solu on that money can buy for a
par cularmarke ngfunc onality
• High focus on innova on in a
specific area so your marke ng is
cu ngedgeinthatspace
• Complete freedom in choosing the
solu ons and the vendors you
workwith
You will spend me and money
on:
• Transferring data between
func onali es for a more
s e a m l e s s e x e c u o n o f
marke ng strategy or crea ng
integra onbetweentheapps
• Managing and tracking
mul ple vendors, product
updatesandlicences
• You get locked in to one
vendor and stuck with their
speed and choice of of
acquisi on, innova on and
integra on.
• Innova on may suffer as the
strategic focus tends to be on
acquisi on and integra on-
func onali es may tend to be
more ‘generic’ than a best-in-
breedsolu onmerits
• Some func onali es are
stronger and more complete
than others but it is always
going to be a catch-up game as
thespaceisevolvingsofast
• You will s ll spend me
/moneyon:
o Integra on
o Building /customizing
func onality
• Youmaynotownallyourdata
Prix fixe
Choose your
toppings A la Carte

9. 99
The closed cloud model seems anachronis c in this day and age of freedom and agility right from the
get go. It is no surprise that the model in its original concep on seems to be going out of style even
before it takes off. Big enterprise players like Oracle, Adobe and Salesforce are already moving towards
the middle of the road Open Stack Pla orms, albeit with a careful pre-selec on of third party vendors
who can build on top of the pla orms. A truly democra c model may evolve if any of the pla orms are
able to create, as John Furrier says in his recent Forbes piece ‘an enterprise version of the Apple
ecosystem’. The ‘app marketplace’ needs to be both – accessible and credible. Even so, it is a promising
trend offering more value to customers who are looking to evolve with the market and not get stuck
intoalongtermpartnershipwithafixedsetoftools.
The reality is they [large enterprise suites]
are not pre-integrated and o en
integra ng them is difficult and
expensive. So even if you buy into them
you’re s ll building your own....best-of-
breed solu ons are robust, flexible and
easytointegrate.
“
” Karl Wirth
CEO & Founder, Evergage

10. 10
Ready to order?
What should you choose? The answer depends on who’s looking. The right choice depends on the
buyer context. Are you predominantly a B2B or B2C player? How large and widespread is your
customer base and what are their expecta ons? Here are a few ques ons to consider when deciding
whether to go with large enterprise clouds, build a Marke ng Cloud using best in breed offerings
op mizedtoyourpreciseneedsorwhethertotakethemiddleoftheroadwithanopen-stackcloud
How much width of func onality do you really need? Do you really need each
availablefunc onalitytobepresentinyourmarke ngmix?Ifasmallersetofmarke ng
channels and func onali es are of strategic importance to you, you could consider
inves nginasmallerselec onofbestofbreedsolu onsinkeyareas.
How much depth of func onality do you really need? Smaller organisa ons may
need a more generic set of capabili es across a wider range of func onali es. Larger
organisa onsmayneedhighlycomplexcapabili esacrossamoreselectsetofstrategic
marke ng func onali es. Enterprise clouds may offer a wide range of func onali es
under one umbrella, but each may lack the sheer depth of capability that a best in
breedsolu oncouldoffer.
How cri cal is data privacy, security and ownership to your business and
industry? Sensi ve industries like BFI and health are going slow on cloud solu ons
because these issues are not s ll completely clear. Enterprise clouds may lock in
ownershiporaccesstoyourdata,whereasopenstacksolu onsallowyoumorecontrol
ofdataevenifyouchangethevendors.
1.
2.
3.
“
Michael Gerard
Chief Marke ng Officer at Curata
”
ThebestadviceIcangivetomarketers
is to focus on building the right
organiza onal structure and
processes first, and then iden fy the
best set of technology vendors to
partnerwith.

11. 11
Howmuchintegra ondo you reallyneed?Not all data needs to flowback and forth
between each func onality. While a ‘fully integrated suite’ sounds great on paper,
consider how much you really need and choose your solu on accordingly. Integra on
doesn’t have to be a deal maker unless your marke ng strategy demands that level of
data and intel flow. It is also worthwhile to consider the exis ng infrastructure and
legacy vendors that may already be in place – especially in bigger organisa ons. Many
of these vendors like SAP, Oracle, IBM and even Microso are offering cloud pla orms
and may just be able to deliver be er value in terms of transi oning data from exis ng
systemsontothenewmarke ngautoma ontools.
How much agility do you need? Some industries demand a higher level of agility in
key areas like customer response and marke ng innova on than others. Be clear about
the real need to innovate and the nature of innova on that will deliver compe ve
advantageinyourindustry.
What is your budget? Surprisingly, the answer to what is most cost effec ve is not so
obvious. SMBs may actually find large enterprise clouds (that have actually managed a
reasonable level of integra on) more cost effec ve as it offers a wider range of more
generic solu ons without much spend on integra on or vendor management.
Marketers whose strategy focuses on key customer engagement channels may find
more compelling value inves ng in a select set of best of breed tools. Consider your
ability and need to spend me, effort and cash on integra on, innova on, technology
infrastructure management vs. outsourcing the complete solu on at the cost of some
complexityandinnova on.
4.
5.
6.
“
Tyler Lessard
Chief Marke ng Officer, Vidyard
”
I don’t see one cloud to rule them all, it’s
about s tching together your own
customized network of clouds that cross-
integrate with each other and deliver on the
valueyou’relookingfor.

12. 12
It used to be that marke ng was top down: big ideas thought up in the C-suite and executed
downwards, designed to ‘touch’ the lives of prospects and customers. How the tables have turned!
Marke ng is now clearly bo om-up: the ideas come from mul ple micro interac ons with real
customers and the execu on happens almost simultaneously in mul ple playing fields. Real me
micro-customer engagement is the raw material of the modern marke ng strategy. The big idea is the
ability to act meaningfully on a universe of small ideas to create something bigger than the sum of its
parts.
If you choose the right Marke ng Cloud model for your strategy - combining ac ve engagement
pla orms with powerful backend analy cs meaningfully - it has the poten al to make your marke ng
effortgreaterthanthesumofitsmul ple‘hyper-targetedinterac ons’.
Ul mately though, the CMO s ll needs to have mul ple pairs of eyes and ears. On the offline world, on
the online world, and several more for all the worlds within these worlds. It is ul mately s ll about
knowing your customer. The magnitude of ‘knowing’ has changed. The speed and flexibility of
‘knowing’thecustomerhaschanged.Themethodologyof‘knowing’haschanged.Butyous llneedto
knowthemtoservethem.Andtoday,thatknowledgeisdatadriven.
LAST WORD:
The Right Mix
Nowayasinglemarke ngcloudvendorcould
consistently provide the best apps in every
category....giventhatwecan’treallytellwhat
incredibletechnologieswillemergedownthe
road, an open pla orm upon which you build
your marke ng cloud future-proofs your
technology investment and compe veness.
You can easily swap applica ons in and out,
whileretainingthedata.
“
”
Boaz Ronkin
Vice President – Product Marke ng, Ensighten

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Sources :
Quote sources:
The quotes used in this paper are part of more detailed interviews that appeared in
MarTechAdvisor’s MarTech Maven column. For the full transcripts, click here
h p://www.martechadvisor.com/martech-maven/execu ve-interviews/
With inputs from:
• John Furrier h p://www.linkedin.com/today/post/ar cle/20141124151842-3010-
marke ng-cloud-the-new-ba le-ground)
• h p://www.ebizq.net/blogs/data_virtualiza on/2010/01/best-of-breed-vs-enterprise-
so ware.php
• h p://www.enterpriseappstoday.com/erp/microso -cloud-apps-vs.-best-of-breed.html
• h p://www.thehubcomms.com/hootsuites-ceo-ryan-holmes-doesnt-think-marke ng-
clouds-are-great-for-enterprises/ar cle/342380/
• h p://www.thehubcomms.com/marke ng-clouds-vs-open-pla orms-which-is-be er-for-
your-company/ar cle/349608/
• h p://www.slideshare.net/MarTechConf/to-build-or-buy-a-marke ng-cloud-by-travis-
wright
• h p://chiefmartec.com/2014/01/marke ng-technology-landscape-supergraphic-2014/
• h p://www.gartner.com/technology/research/digital-marke ng/transit-map.jsp
• h p://www.forbes.com/sites/siliconangle/2014/11/23/oracle-big-quest-to-win-marke ng-
cloud/2/

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