This is basically a polite way to fire a customer.
You don't want to sell to everyone - you need to make sure the cost of retention+support is significantly less than what they are paying.
If a customer is too troublesome or spending too little (for a company like VMWare, a $8m contract is on the smaller end) this is the politest way to fire them.
It sounds like this customer is a legal firm, which makes sense - they tend to have a much smaller IT footprint.
Every dollar isn't the same.
Edit: to elaborate - it's all about margins. Is that $8m worth it if in aggregate you spending an equal amount of time on that account as you are on a $20-30m account? It ain't
You don't want to sell to everyone - you need to make sure the cost of retention+support is significantly less than what they are paying.
If a customer is too troublesome or spending too little (for a company like VMWare, a $8m contract is on the smaller end) this is the politest way to fire them.
It sounds like this customer is a legal firm, which makes sense - they tend to have a much smaller IT footprint.
Every dollar isn't the same.
Edit: to elaborate - it's all about margins. Is that $8m worth it if in aggregate you spending an equal amount of time on that account as you are on a $20-30m account? It ain't