Yes You Can be a BizSpark ISV and create an innovative SaaS application to go-to-market in weeks!

Microsoft helps ISVs startups in providing them with a great competitive advantage: both a large set of tools and solutions and the right to use them as SaaS components licenses for several years at a cost close to zero.

With the BizSpark program ISVs can also be followed and adviced by a SaaS Incubation Center. The solution provider thus adopts the best SaaS practices from the very beginning

• focuses on delivering a differenciating solution and writes down a business strategy
• drives an 8 key-success-factors action plan to implement its strategy
• fully uses a SaaS based platform to get the needed scalability capabilities
• takes attention to the customers' support at the right time when then try its solution
• implements best practices listen-your-market and implement short-term roadmaps

You will find a very good example of such a process in this Case Study which shows how the Incubation Process helped a BizSpark ISV called Mobile Tracing Services to give birth to its Live-Task solution in weeks!

Key Benefits where:

• Makes fast time to market possible
• Develop valuable relationships
• Get tools to expand its businesses
• Use accessible and cost-effective service
• Enhance support

ISVs: Yes You Can develop a successful SaaS business in weeks!

• Some ISVs think that their solution is not adapted to developing a successful SaaS business model because they deploy it over months of dedicated customer projects.

• Some ISVs think that their solution is too far complicated to be delivered within minutes as a full Software-As-A-Service solution.
  
  
• Some ISVs think that their solution needs so many customizations before being used by their customers that they wil not be able to create automatic SaaS trial versions within minutes.

Fortunetly there are ISVs who go beyond these first thoughts and overpass them to make the jump.

• They discover that by understanding the key SaaS success factors - and it only take days - they can rethink their business model, their communication strategy, their marketing action plans.
• They also find themselves very adaptive and capable of rethinking their provisioning processes so that their complex solution can be delivered as a great trial version within minutes.
• They also understand that they can adapt their architectural design to better fit the scalability and security goals that SaaS drives.

If you still doubt please read this Octave case study!
SaaS Support Helps ISV Target New Markets and Launch Service-Based Products in Weeks
And Go SaaS Now!

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!

SaaS offering will eventually satisfy SaaS demand

SaaS is about simplifying its everyday's life. To achieve this goal a company needs to have a coherent governance strategy. Which means that once you have tried - often by starting with a SaaS based emailing solution - and perceived the benefits - no hardware nor onsite maintenance services issues, higher level of services quality, ubiquity, no inhouse upgrading issues etc. - you want more solutions to be available.

If you use a mix of onsite servers and offsite SaaS solutions you still face integration issues, you still have to pay for the cost of onsite hardware and software which hides most of the benefits of Opex SaaS. Some companies would then think - they often mistake themselves - than SaaS is not the right answer to their daily problems. Other companies follow the right path wich lands to "SaaS is great, the optimum benefits will occur when all the professional solutions my company needs are available as SaaS solutions".

Of course those latter orientations are still fewer than the others, mainly because even if SaaS is becoming more familiar it is still mostly unknown to most of the small companies. They simply do not know that these solutions and benefits exist.

But most of those who tried want more solutions to be available. When they catalog the solutions they use, and search for SaaS based equivalents they do not find a matching offer. Why ?

Because most of the solution providers face a common dilemna: they think that the only choice they have is either keep on developing their software solutions as they always did OR develop a SaaS oriented solution. They face the issue which sticks every market: change management! They have to think in a different way than they always did, their teams have to do so, their resellers channels have to do so, and they conclude that their consumers would not be ready to do so - which is false.

The solution providers should face the reality: they can keep developing their existing software solutions AND start a SaaS stragegy development.

When enough SaaS based professional solutions are available the market will shift. This is a kind of chaos theory behaviour. There is a turn point - which is close to be a reality - when offering will be equal to the minimum needs of companies. There will then be much more companies who will use 90% to 100% SaaS based solutions. These companies will get the optimum benefits out of SaaS. They will let others know about it because they will be able to save more money, they will be much more adaptative to environment changements, and they will be much more efficient than their competitors.

Solutions editors who still ask themselves about a go/nogo issue will then start working on SaaS bases solutions in parallel with their existing portfolio. Offering will be greater than the initial demand and the growth of the SaaS market will be exponential. This will be the sparkling that will light the business market and will eventually change the way we use computers and software solutions. As more solutions are available their integration will be easier. A mass market is based on common criteria - standardization of integration protocols. Companies will benefit from business solutions without having to endorse all the pains of being at the same time the consumer and the plumber. They will pick up the solutions they need, which will integrate and adapt to their needs.

Computing is about to becoming a utility.

Focus your energy on the Try-Buy conversion process

SaaS is about micro-marketing. After conceiving a Blue-Ocean strategy you already worked on several communication canevas which will drive targeted customers toward your dedicated mico-websites.

As a SaaS solution provider - being an ISV or a SaaS marketplace portal - you need to spend time and money on processes which maximize your recurring margins.

Focus your energy on the Try-Buy conversion process!

Optimizing this conversation rate means:

• your blue-ocean strategy works
• your segmented targets find your micro-site when they seek for a solution
• your communication canevas convince them that your SaaS solution is their answer
• your positioning and trying cinematics ease their decision to try your solution
• the trial phase demonstrates that the benefits you exposed are the one they are looking for
  
• your SaaS solution is adopted by the 'about-to-be' customers
• the trial scenario and data matches their business needs
  
• the trial-to-production environments are seen as a single and same SaaS solution
• at the end of the trial the customers have already found how to satisfy more than 90% of their initial needs and expectations

Focusing on the try-to-buy process will drive efficiency and maximize your recurring margin. You will achieve a high conversion rate while at the same time reducing the future cost of your help desk support. Calls to your support team will drop significantly after 30 days if customers experienced a great try-to-buy process. When seeking for a long-tail business model you will thus increase the number of users without increasing your operational support cost at the same rate.

You will then get a rising number of satisfied customers which thus will also help you optimze your churn rate!

The ISVs challenges of delivering Software as a Service

By far the largest percentage of the total cost of software ownership is in operations. Here is a list of many capabilities that ISVs find they need to operate a SoOftware-As-Service solution successfully:

· Business

o Automated customer and end user account provisioning
o Usage metering, reporting and analytics by user and customer
o Automated billing and collections with usage detail
o Product cross-sell and up-sell during customer support calls
o Easy integration of third-party solutions to boost up-selling capabilities

· Operations

o Datacenter management
o Production application monitoring and administration
o System configuration management, fast server provisioning
o System performance analysis and capacity forecasting
o Firewalls, intrusion detection, data security
o Tier 1 and 2 customer support
o Disaster Recovery, including user and account level data backup/restore
o Data migration and transformation
o 24/7 break-fix support
o Controls for compliance with audit standards such as SAS 70, PCI, SOX, etc.
o SLA management

Many ISVs interesting in delivering SaaS will quickly decide that it is less expensive and more strategic to partner with a SaaS pure player hoster who can operate and support their production systems at peak efficiency and reliability.

A different conception of customer satisfaction

In traditional software business customer satisfaction is a backoffice duty.
You first have marketing, then product development, then support which focuses on listening to lost or unsatisfied customers and do whatever is achievable to keep them using the software.

With Software-As-A-Service customer satisfaction and marketing should be merged in a new highest priority focus: customer partnering.

A customer should be seen as a partner. Who better knows which functions to develop? Who better knows how things should be organized within the user interface ? Who do you think between a marketing team focusing on market studies or end users are the best qualified to help you develop a successful solution?

This is a tremendous shift in how the roadmaps are conceived and developed.

Why this was not already done?
Because in traditional software roadmaps take time.
Because in traditional software the solution is conceived to be as wide as possible, meaning that there are a lot - too much - functions so that each user should be able to find those he is looking for.
Because in traditional software cost of customer acquisition can be compared to chasing for the top 10 chart goal to get enough visibility to sale enough copies.

With SaaS you can - and should - engage a conversation with your potential and existing users.
With SaaS you can - and should - adapt your solution within days and not months.
With SaaS you can - and should - offer different flavours of your solution to each 'niche'.

SaaS is the way to listen to customer's needs and satisfy these needs in a very short term and cost efficient process which can be easily refined.

Customer satisfaction is your top priority! With SaaS perceived quality is an ongoing and permanent process. Do not use traditional marketing anymore, do not guess what the market needa are! Ask them and focus on producing the needed functions as fast and as efficiently you can. This is also why you should delegate and work with SaaS dedicated partners who can help you with a SaaS platform, SaaS information system, SaaS billing system... Focus on what you are the best at!

A different conception of Software Development

Software-As-Service should not be treated as a technological or architectural topic.
SaaS should be seen as a prism through which usual ways of doing IT should be rethinked.

Take the example of Software development. I have been involved in software development for more than 25 years since my first programs in peek and poke Assembly language! At that period of time optimization of the software was not a recomandation it was mandatory. My first computer only had 1 Ko of RAM!

Then software started to being 'fat'. Why? Because developers and software editors did not care about using a lot of memory or disk space. Their manual had to say that to run this software you would need such hardware characteristics, and the user had to care about it! You did not get the latest computer, so do not blame me if your software runs slowly...

SaaS will eventually reverse this process.
SaaS involves software editors to run their software on virtualization platforms.
SaaS involves software editors to pay for those investments, and the power consumption is eating their margin if not taken seriously!

Until now we have seen a lot of new computer langages being invented, and a lot of web technologies too. I bet that the number of development langages and methodologies will lower and that this will not be a factor of richness diminution. End users will get more stable, more efficient and more adaptative programs if you give them the power of mashing-up the functions they need. To make that happen fficiently you need to simplify the way you develop and maintain a large common factor so that pieces developed by a large number of developer would fit together.
The HTML lego for software could be Web Services and the execution paradigm would be SaaS.

Why would you need to keep on developing web code? An application is better developed, stronger, more efficient, more reliable if developed on the basis of an operating system whatever it is. Webg is great for visualizing and interacting, for letting the end user mash-up and create their 'own' interface.
I bet that with SaaS the software editors will find it more efficient to develop software the way it was before - efficiently - and as 'heavy clients'. Then use the SaaS to virtualize those applications and let them run whenever and however the end users want to use them. Simply splitting up the 'heavy clients' into 'heavy functions' would be the path to follow. Each 'heavy function' being usable as a single piece, being integrable into whatever web interaction technology you would need, being insertable wherever you would need.

SaaS will help developers to reconnect with their users and this will radically transform the way we have seen the computing industry until today.

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.