SaaS is turning computing into a utility like the electric grid did for industry.

SaaS is a significant growth driver but fuzzy informations spread over the web make it difficult to understand and differenciate from software hosting environments.

This blog focuses on key success factors driving the development of a successful Business-As-A-Service solution.

Wednesday, September 30, 2009

Software Startup? Go SaaS Now!

Why Sartup software solutions editors must develop a SaaS strategy:

Time-To-Market is important.
Time-To-MaximizedMarginAndMarketBreadth is even more important.
  • SaaS allows to reach a broaden audience in a shorten time frame.
    - By cutting out deployment issues (when onsite integration of software components is mandatory you usualy find that most of the customers are geographically close to the startup location because you need to optimize the travel time and cost for your technical people...)
    - By allowing a Try-To-Buy sales conversion process.
    Giving a potential customer an easy and immediate way of testing your solution increases the probability of catching him up when he is searching for a solution to its business problems. If he/she is happy with your solution there will be less probability - an time - for this prospect to think about looking around for other solutions than yours...
  • SaaS brings differenciation towards well established software vendors
    - Established software brands have developped sales channels, by developing a SaaS business model you will be able - at first - to skip this long, risky, and costly process. Established onsite local distributors are not likely to invest in learning how to sale a new startup developed solution, they are conservative at first.
    - Established software solutions were developed over years. For maximizing the development cost versus the sales volume those software are complex, they hold hundreds of great functions, they were conceived so that a single software solution would be saled to the largest audience. They thus are complex, their training phase is long and costy.
    - SaaS solutions are light, easy to understand, they do not handle hundreds of functions but the few which are asked by some vertical markets. The SaaS solutions are easier to maintain, they can be very quickly adapted to changing business needs.
  • SaaS eases cash management!
    - On Demand power and virtualized hosting of your SaaS solutions allows your startup company to spend OPEX cash as you grow. As your customers base grow you rent more power.
    - SaaS recurring revenues is a more predictible stream of cash which helps your startup company in growing up.
  • SaaS is about up-sale and cross-sale
    - By partnering with a SaaS dedicated services platform you will be able to resell other SaaS solutions within your solutions portfolio. You will up-sale and increase the margin per user. You will prevent other distributors to get in your customers budget and compete with you.
    - By partnering with a SaaS dedicated services platform you will be able to partner with other solutions vendors and integrate more closely your solutions with their solutions to the benefit of the customers, and you will benefit from cross-sale strategies.

Software Startup? Go SaaS Now!

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