Why is Now the Right Time for SaaS?

The question is not should I build a SaaS solution as an ISV, sell SaaS integration as a reseller, or use SaaS solutions as a professional, the question could rather be why NOW?

• Pervasive broadband access at a very low cost
  
• Economical context focus on efficiency TCO OPEX
• CIOs need to deliver mission-critical value and will outsource other functions
• Customers trust improved and secured data centers
• Depth and Breadth of SaaS offering meet customers needs

Web-agnostic customers do not buy online from web-centric businesses

Web-agnostic businesses do not attract web-centric customers

SaaS buyer behaviors

Web-Agnostic Buyer

By contrast web-agnostic users do not rely on the Internet as a central component of how they live.

They may make use of the Internet for email, or occasional online shopping – but when they have a problem to solve, their instincts to not drive them to a web browser to find a solution.

Web-Centric Buyer

Web-centric behavior describes individuals whose have fully integrated the Internet into their daily routine. For these web-centric users the Internet is central to:

• How they consume information
• How they interact with others
• How they find and buy products and services
• How they solve problems

They recognize the increased efficiency that the Internet provides relative to these activities and have embraced it.
They have integrated the Internet into both their personal and professional lives – at home, at the office, even when mobile.

ISVs need to host their applications on a SaaS dedicated hosting platform

ISVs want to receive assistance in hosting their application without making significant changes and investment.


The SaaS Hoster provides infrastructure & personnel resources with a highly variable cost structure – you are only paying for what you need / use.

This cost structure provides a best-of-breed solution at a predictable, competitive price.

If the SaaS Hoster uses a fully virtualized platform he provides a power on-demand ressource to the ISV who then pays a fee proportional to the size of the customers he currently serves.

ISVs also want to grab the opportunities offered by a SaaS integration with other ISV's applications:

• Integrate their application with others to increase the customer's perceived value;
• Cross-sale part of their application with other ISVs as a SaaS royalty business model;
• Allow resellers to create bundles of already integrated and working sets of applications.