Why has Riverbed Technology's SteelHead WAN optimization solution seen a 15% decrease in new license sales over the past quarter?

Introduction

Riverbed Technology's SteelHead WAN optimization solution has experienced a 15% decrease in new license sales over the past quarter. This decline in a key product line warrants a thorough investigation to identify the root cause and develop effective strategies to reverse the trend. I'll approach this analysis systematically, examining both internal and external factors that could be contributing to the sales decline.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be seasonal factors at play. Has this 15% decrease been compared to the same quarter last year?

Why it matters: Seasonal fluctuations could explain the decline if it's a typical pattern. Expected answer: Yes, it's been compared to the same quarter last year. Impact on approach: If it's not seasonal, we'll focus more on recent changes or market shifts.

• Considering the product lifecycle, I'm curious about the age of the SteelHead solution. How long has this product been in the market without major updates?

Why it matters: Product maturity could impact sales if competitors have introduced newer technologies. Expected answer: The product has been in the market for several years with incremental updates. Impact on approach: If it's an aging product, we'll need to consider innovation and feature comparison with competitors.

• Thinking about market dynamics, have there been any significant changes in the competitive landscape recently?

Why it matters: New entrants or major updates from competitors could be drawing customers away. Expected answer: There have been some new cloud-based WAN optimization solutions introduced. Impact on approach: If competition has intensified, we'll need to focus on differentiation and value proposition.

• Considering internal factors, have there been any changes to the sales process or team structure in the past quarter?

Why it matters: Changes in sales strategy or team composition could directly impact license sales. Expected answer: There have been some adjustments to the sales team structure. Impact on approach: If internal changes are significant, we'll need to examine the sales process and team performance closely.