
EOL vs. Lift-Out
Do you want a hard landing for your enterprise and customers, or a soft landing?
YOU CHOOSE
What's the Difference?
Once the decision has been made to dispose of a software business, there are a variety of exit options, each with a distinct set of implications depending on which road you take. Do you end-of-life (EOL) the asset for a hard landing, or do you work with DKG on a lift-out strategy delivering a soft landing?
End of Life
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Hard landing for customers
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Short-term cost to seller is low
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Long-term costs are potentially high
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Relatively fast process
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Liabilities and include customer satisfaction, brand damage, multi-year ELA commitments, spill-over to other business units, sales morale, and ongoing support
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HR issues include terminations and severance package expenses
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Long-term support commitments persist and become problematic
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Cloud & High- Service Level Agreement (SLA) assets require special treatment
Lift-Out
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Soft landing for customers
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Short-term cost to seller is higher
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Long-term cost/risk is much lower
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Slower and more complicated process
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Protects and potentially improves customer satisfaction and in-pipeline deals, boosting sales morale
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Ensures that multi-year ELA commitments are met
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Mitigates brand damage
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HR issues mitigated via transfers
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Support, cloud and high-SLA transitions can be mitigated
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Process is complex – most organizations do not have processes or expertise to manage the disposition process and ongoing transition