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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

  • Hard landing for customers

  • Short-term cost to seller is low

  • Long-term costs are potentially high

  • Relatively fast process

  • Liabilities and include customer satisfaction, brand damage, multi-year ELA commitments, spill-over to other business units, sales morale, and ongoing support

  • HR issues include terminations and severance package expenses

  • Long-term support commitments persist and become problematic

  • Cloud & High- Service Level Agreement (SLA) assets require special treatment

 

Lift-Out

  • Soft landing for customers

  • Short-term cost to seller is higher

  • Long-term cost/risk is much lower

  • Slower and more complicated process

  • Protects and potentially improves customer satisfaction and in-pipeline deals, boosting sales morale

  • Ensures that multi-year ELA commitments are met

  • Mitigates brand damage

  • HR issues mitigated via transfers

  • Support, cloud and high-SLA transitions can be mitigated

  • Process is complex – most organizations do not have processes or expertise to manage the disposition process and ongoing transition

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