Resource Drain from Failed POCs
Definition
Enterprise tech firms, particularly in data security and cybersecurity, allocate significant engineering and sales resources to POCs that rarely convert, with over 78% of IT executives reporting less than half result in production, creating bottlenecks and idle capacity during extended trials.
Key Findings
- Financial Impact: $High resource cost per failed POC (3x lower success if >3 months; enterprise deals avg 6-figure ACV lost)
- Frequency: Per sales pipeline opportunity
- Root Cause: Expensive, elongated POCs without defined success criteria or customer skin-in-the-game.
Why This Matters
This pain point represents a significant opportunity for B2B solutions targeting Data Security Software Products.
Affected Stakeholders
Engineering teams, Sales engineers, Product managers
Deep Analysis (Premium)
Financial Impact
$100,000–$250,000 per year in analyst time donated to non‑paying prospects and delayed onboarding of paying MSSP customers. • $100,000–$250,000 per year in foregone revenue from production‑like usage on perpetual eval keys and wasted time administering dead trials. • $100K+ per failed POC in wasted engineering/sales resources (6-figure ACV lost)
Current Workarounds
Ad‑hoc POC pipeline tracking outside the CRM by stitching together spreadsheets, email threads, and slide decks to guess which trials are stalled, who is using licenses, and when to kill or renew environments. • Analysts store POC playbooks, compliance evidence, and alert tuning logs in scattered spreadsheets and shared folders, manually compiling status decks for stakeholders. • Analysts track each reseller‑customer combination and its POC tasks in informal spreadsheets and partner‑specific Slack channels.
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Methodology & Sources
Data collected via OSINT from regulatory filings, industry audits, and verified case studies.
Related Business Risks
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