Migrating to Salesforce Revenue Cloud Advanced, what should you expect?

Introduction

Salesforce CPQ (Configure, Price, Quote) has been a cornerstone solution for many businesses looking to streamline their sales processes. However, evolution is inevitable. Salesforce has been gradually shifting its focus toward Revenue Cloud Advanced, positioning it as the successor to the traditional CPQ system. This transition presents both opportunities and significant challenges for organizations currently dependent on Salesforce CPQ.

The Sunset of Salesforce CPQ: Understanding the Shift

Product Lifecycle and Strategic Direction

Salesforce's product strategy has increasingly centered around comprehensive, integrated cloud solutions rather than standalone products. Revenue Cloud Advanced represents this strategic direction, offering a more holistic approach to revenue management that extends beyond the traditional CPQ capabilities.

There is no doubt CPQ will not just be end-of-sales, but also end-of-life one day:

1. Reduced Development Investment: No new releases in 4 years for the CPQ solution they bought from Steelbrick in 2015. Knowing Salesforce, this is a sign they were already thinking about what to do with this managed package.
2. Marketing Pivot: Marketing materials and sales messaging have shifted heavily toward Revenue Cloud Advanced.
3. Integration Priorities: Salesforce is pushing AI like crazy, but does not integrate it with CPQ, only with Revenue Cloud Advanced.
4. Support Roadmap Changes: CPQ is officially end-of-sales, meaning it still benefits from Salesforce support but for how long? Salesforce is clearly telling you that CPQ is not the future, Revenue Cloud Advanced is.

The Value Proposition of Revenue Cloud Advanced

Revenue Cloud Advanced isn't merely a rebranding of CPQ but represents an expanded vision encompassing:

• End-to-end revenue lifecycle management
• Enhanced subscription management capabilities
• Comes with a billing engine to automate invoicing, collect payments and recognize revenue 
• Run on Salesforce platform which will reduce the training period of administrators since they can use flows instead of specific CPQ automation tools
• Advanced analytics and AI-powered insights
• Modern user-interface
• Product management is easier, more visual, and designed to be handled not by administrators but by product or pricing managers

Challenges of Migrating to Revenue Cloud Advanced

The transition from Salesforce CPQ to Revenue Cloud Advanced presents numerous challenges that organizations must carefully navigate.

1. Technical Migration Complexities

Data Migration Issues

Moving from CPQ to Revenue Cloud Advanced involves complex data migration challenges:

• Custom Object Migration: Organizations with heavily customized CPQ implementations may find that custom objects and their relationships don't map directly to Revenue Cloud Advanced's data model.
• Historical Data Decisions: Determining how much historical quote, pricing, and configuration data to migrate requires balancing system performance with business needs for historical analysis.
• Data Integrity Verification: Ensuring that all pricing rules, discounting logic, and configuration rules maintain their integrity during migration is particularly challenging.

Customization and Integration Rework

Most CPQ implementations include significant customizations and integrations that must be reconsidered:

• Custom Code Review: Apex code, Visualforce pages, and Lightning components developed for CPQ may need substantial modification or complete rewrites.
• Third-Party Integrations: Connections to ERP systems, billing platforms, or other enterprise systems may need to be redeveloped for compatibility with Revenue Cloud Advanced.
• Automation Reconfiguration: Workflow rules, Process Builder flows, and Flow automations will require careful analysis and potential redesign.

2. Business Process Realignment

Process Redesign Requirements

Revenue Cloud Advanced often necessitates rethinking established business processes:

• Quote-to-Cash Workflows: The expanded scope of Revenue Cloud Advanced may require redesigning approval processes, contract management workflows, and revenue recognition procedures.
• Subscription Management: Organizations must adapt to Revenue Cloud Advanced's subscription-centric approach, which may differ significantly from their current processes.
• Revenue Recognition Practices: Finance teams will need to adjust their practices to align with the new system's capabilities and constraints.

User Experience Changes

The transition impacts how users interact with the system:

• User Interface Differences: Sales teams accustomed to CPQ's interface will face a learning curve with Revenue Cloud Advanced's UI.
• Mobile Experience Variations: Field sales teams may experience significant changes in their mobile access capabilities.
• Report and Dashboard Rebuilding: Custom reports and dashboards built for CPQ will need to be recreated in the new environment.

3. Organizational Readiness Challenges

Skills Gap and Training Needs

The transition requires new expertise:

• Administrator Retraining: Salesforce administrators familiar with CPQ will need significant upskilling to effectively manage Revenue Cloud Advanced.
• Developer Knowledge Transfer: Technical teams must build expertise in the new platform's development models and best practices.
• End-User Adoption: Comprehensive training programs will be necessary to ensure user adoption and minimize productivity disruption.

Change Management Considerations

The psychological and operational aspects of change present significant challenges:

• Stakeholder Alignment: Ensuring all departments from sales to finance to IT understand and support the transition is critical.
• Transition Timeline Expectations: Setting realistic expectations about migration duration and potential disruptions is essential for maintaining organizational support.
• Dual System Operation: Managing a period of parallel operations between the legacy CPQ and new Revenue Cloud Advanced implementations requires careful planning.

4. Financial and Resource Implications

Cost Considerations

The financial aspects of migration extend beyond licensing:

• Implementation Costs: Professional services for migration, customization, and integration can significantly exceed software licensing costs.
• Internal Resource Allocation: The need to dedicate key personnel to the migration project can impact ongoing operations.
• Training Expenses: Comprehensive training programs for administrators, developers, and end-users represent a substantial investment.
• License Costs: Public price of Revenue Cloud Advanced (200$/user/month) is higher than CPQ licenses (75$/user/month or 150$/user/month for CPQ+) 

ROI Timeline Challenges

The return on investment timeline may be longer than anticipated:

• Productivity Dip: Organizations typically experience a temporary decrease in sales productivity during transition periods.
• Extended Stabilization Period: Achieving full system stability and optimization often takes longer than the initial implementation timeline.
• Benefit Realization Delays: The advanced capabilities of Revenue Cloud Advanced may not deliver immediate value until users and processes fully adapt.

Strategic Approaches to Successful Migration

Despite these challenges, organizations can successfully navigate the transition with the right approach.

Phased Implementation Strategy

Rather than attempting a "big bang" cutover, consider:

• Modular Approach: Migrate specific functionality sets sequentially rather than all at once.
• Pilot Group Deployment: Start with a limited user group to identify and resolve issues before full organizational rollout.
• Parallel Systems Operation: Maintain CPQ for certain functions while gradually transitioning others to Revenue Cloud Advanced.

Comprehensive Assessment and Planning

Before beginning migration:

• Current State Documentation: Thoroughly document existing CPQ customizations, integrations, and business processes.
• Gap Analysis: Identify specific differences between current CPQ implementation and Revenue Cloud Advanced capabilities.
• Data Migration Strategy: Develop detailed plans for data cleansing, transformation, and validation.

Partner Ecosystem Leverage

Utilize external expertise:

• Specialized Implementation Partners: Engage with a consulting firm like Novutech experienced specifically in CPQ to Revenue Cloud Advanced migrations.
• Salesforce Direct Support: Leverage Salesforce's migration support programs and resources.
• Community Knowledge: Tap into user groups and community forums for practical insights from others who have navigated similar transitions.

Conclusion

The transition from Salesforce CPQ to Revenue Cloud Advanced represents a significant evolution in how organizations manage their quote-to-cash processes. While the challenges are substantial—spanning technical, business process, organizational, and financial dimensions—they are not insurmountable with proper planning and execution.

Organizations currently using Salesforce CPQ should begin assessing their migration readiness now, even if an immediate transition isn't planned. By understanding the complexities involved and developing a comprehensive migration strategy, businesses can minimize disruption while positioning themselves to leverage the advanced capabilities that Revenue Cloud Advanced offers.

The end of Salesforce CPQ's prominence doesn't need to be viewed as a setback, but rather as an opportunity to modernize revenue operations and establish more integrated, efficient processes that can drive business growth in an increasingly subscription-based economy.