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Writer's pictureMichiel van Vliet

How to create the 'Cloud Transformation' Flywheel?

Updated: Sep 28, 2023

Cloud Transformation has proven to be a potent catalyst within the software industry, but private equity-owned software firms have been slower to embrace it, often hindered by their size, cost constraints, and shorter holding periods.


Yet, Cloud Transformation serves as a pivotal force multiplier for the Private Equity investment thesis. Beyond the immediate benefits of bolstering 'Enterprise Value,' it offers the prospect of reducing technical debt, accelerating innovation, and operating with a significantly lower total cost of ownership (TCO). Equally significant, though often overlooked, are the downstream opportunities it unlocks: lowering barriers for customers to discover value, seamless expansion into new markets (both vertically and geographically), amplifying indirect revenue through partnerships, and collaborating with industry giants, i.e. a 'cloud transformation flywheel'.

Amazon Flywheel applied to the ISV opportunity
Wingspan Flywheel

In a nutshell, Cloud Transformation, when executed effectively, has the potential to trigger a 'Fly-Wheel' effect, reminiscent of the visionary concept that propelled Amazon.com to greatness. It all begins with a carefully crafted strategy, commencing with the migration and modernization of offerings, simplifying the process for customers to unearth the true value within. As growth unfolds alongside an enhanced customer experience, organizations can strategically trim cost structures while also passing on the benefits to customers through more competitive pricing. Furthermore, this evolution paves the way for expansion into fresh markets, spanning both direct and, notably, indirect avenues. At Wingspan, we're dedicated to harnessing this transformative power, ushering in an era of sustained success through Cloud Transformation. Join us in charting a course towards a brighter, more innovative future. In the world of software transformation, giants like Microsoft Office 365 and Adobe's Creative Cloud have set the gold standard. However, for smaller software companies under Private Equity ownership, achieving this metamorphosis has proven to be an elusive endeavor. Private Equity firms often grapple with unique challenges, including shorter holding periods, the imperative of continuous EBITDA improvement, and the pervasive shortage of industry-specific skills and talent. To compound these hurdles, the traditional approach of temporarily inserting talent has repeatedly fallen short. Advisory-type services can produce impressive PowerPoint presentations but often lack lasting impact (with some already familiar with the content, others in disagreement, and the rest simply not comprehending the material). Execution-focused services, on the other hand, hinge on having a clear and unwavering vision of what needs to be accomplished.


At Wingspan, we understand these intricacies and are dedicated to offering a holistic solution that goes beyond the conventional, ensuring sustained success in the face of transformation challenges. Join us on a journey where innovation meets execution, and where your goals become our collective mission.

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