Sitecore has announced that they have a new CEO, Mark Frost as Chief Executive Officer. He replaces Co-Founder Michael Seifert, who has held this position since Sitecore was founded in 2001. The new CEO will be challenged with providing the “next phase of growth”, increasing revenue since the major investment in Sitecore from EQT, in 2016.
With the investment from EQT, Sitecore will be placed under pressure to drive substantial growth and achieve a high revenue return. This new appointment significantly strengthens the investment in the management team in 2017, along with Denise Parker & Mark Zablan to achieve these targets.
Who is Mark Frost, the new CEO of Sitecore?
Most recently, Mark served as CEO of MarkMonitor (owned by Thomson Reuters), established as a leading online brand protection, where he was part of a very successful period in driving record growth and customer acquisition. This ultimately led to the sale of the company, from Thomson Reuters to Onex and Baring Asia for $3.55 billion, in October 2016.
Prior to that he served as General Manager for the SaaS Business Unit of CA Technologies. CA ranks, as one of the largest independent software corporations in the world. As part of the CA Leadership Team, he was responsible for delivering the transformation to SaaS for its product suite.
He also served as EVP and General Manager for the SaaS Business Unit of MarketTools, where his efforts accelerated time-to-market and resulted in a more than 90 percent customer satisfaction score for this enterprise feedback management and market research leader.
Why the change?
Mark has experience in building and scaling cloud business models for enterprise software companies with a proven track record of driving business transformations. Sitecore has recently allowed for a more flexible consumption-based licensing along with the perpetual licence option.
Why Sitecore are offering this consumption based licence may be due to the market moving in favour of this model, or perhaps to differentiate themselves from fellow leader Adobe, and/or to combat other competitors, such as EpiServers ‘Digital Experience Cloud’.
Sitecore are certainly hedging their bets. If the marketplace is transitioning from a perpetual to a more SaaS pricing model, Sitecore is putting together an experienced leadership team to make sure the Sitecore proposition is correct for both clients and digital partners. This is certainly a move in the right direction.
The future for Sitecore, the Web CMS marketplace in 2017 and beyond
It will be interesting to see if and how Sitecore alters the current consumption offering. Will they still offer a perpetual pricing model in the future? Currently Sitecore’s consumption offering pricing takes into account visits per month, non-production installations, concurrent users, and add-on modules but allows for unlimited production installations. This option is a perfect fit for clients with an auto-scaling cloud hosting solution, but certain business’ are not currently comfortable in adopting this pricing model.
We believe that this proposition may not change in the short term, but we may see large changes within the next 12-18 month period. The level of changes may depend on the uptake and how much traction the consumption pricing methodology achieves. Plus, how the new CEO and leadership team want to position Sitecore.
It will certainly be an area of interest to everyone in the Web CMS industry to see how it works out for Sitecore and the knock-on impacts on the industry as a whole. It can be very disruptive if/when one of the market leaders starts to shift/alter their pricing model.
This can also have a direct impact on the feature set, marketing proposition and the roadmaps of different CMS platforms in the marketplace. Keep up to date with the major version releases from the different .NET CMS platforms with our our own CMS timeline of Umbraco, Sitefinity, Kentico and Sitecore.