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SAAS Services Revenue Riddle

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SAAS CEOs and CROs are always on the prowl for one thing for sure and that is about how do I increase my recurring revenue and profitability. It’s no different for other CEOs but more so for the SaaS folks who are on the run to ring the bell on wall street. I am not going to touch up on the usual obvious avenues but  instead  talk about ways and means of recasting and optimising already existing sources of revenue to bolster the recurring Revenue and profitability. Recurring is the key for profitable sustenance of the SAAS  business model.  Professional Services are imminent but SAAS companies typically shy away from 'Services' in their balance sheets for obvious reasons as they tend to dent margins. To note, SAAS itself expands to 'Software as a Service' and 'Service' holds equal stake in success just that they costs more and that’s the challenge.  If services are streamlined, canned and optimised they can be predictable and recurring sources of revenue turning

SAAS and the new tenets of Partner Engagement

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SAAS and the new tenets of Partner Engagement The role played by partners and the extent of their involvement in conventional business is way different in SAAS. Partners in SAAS helps vendors to Search for opportunities effectively and efficiently, support in sustaining and scaling the implementations. Given the change in the role played by partners in the SaaS world, SaaS vendors should ensure their model of engagement with partners also needs to be aligned accordingly. Couple of important aspects which need a relook are  1. Partner Enablement, beyond Academics: Enablement is not to just execute opportunities but enablement in SaaS world is to identify and create opportunities and then execution follows. Training and supporting to build product CoEs or competency are necessary but not sufficient for enablement. Partners need to be deemed as logical extension of not only delivery but also sales organisation which means enabling them not just with product skills but also all the ammun

SAAS and the new facets of Partner Paradigm

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SAAS and the new facets of Partner Paradigm   Search   Sustain    Scale Not all SAAS vendors and partners are born as SAAS but in fact most of them are evolving into SAAS and hence both the SAAS vendors and partners need to recalibrate their ways of working as they move into SAAS mode.  Its no news that SAAS is everywhere and is only bound to percolate further, ever increasing market size and all the analyst reports concur on the same. As with any business model, partners play significant role in SAAS too.  The role played by partners and the extent of their involvement in conventional business is way different in SAAS. Partners in SAAS helps vendors to effectively and efficiently Search for opportunities, support in sustaining and scaling the implementations.  Partners are effective and Efficient Search Light for SAAS Vendors:  With SaaS, resell is no more the model of choice and instead its collaboration with partners to sell which is termed as "co sell". Partners, typicall

SAAS and the Services Conundrum

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SAAS is everywhere, every other product vendor irrespective of the domain wants to launch their existing and new products in SAAS mode. All the surveys and the likes of Gartner and Forrester of the world suggest that SAAS market is not going to be less than ~120 billion USD this year and will only go north. With such a focus on SAAS, there is one aspect which has been underplayed and often subdued and that is the professional services associated with SAAS Products. Are Professional services required at all in the world of SAAS? If it’s going to be all configure plug  and play? Ideally it sounds right but as always, world is far from ideal and SAAS is no exception to it. Even if SAAS products do reach a level of maturity over time, where in a model of just configure, plug and play works, it would still need services. Let me take a analogy of fast food chain, where everything is more or less well defined, modularised and ready to grab and go the moment you order. Please remember that tho

5 SAAS Metrics potential customers can leverage for Evaluation: Data driven immune to Sales/ Marketing stunts

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SAAS is no more a buzz word and has progressed to be mainstream way of selling software, it is growing by leaps and bounds and progressing towards being de facto way of selling software. SAAS offers lucrative and predictive revenue model to the vendors and at the same time eases the capex pressure on customers paving a way for win -win situation and hence the tremendous growth potential. Handling the kind of growth, revenue offered by SAAS and there by scaling the company requires careful and actionable insights from performance metrics. There are innumerable number of metrics which are tracked by SAAS vendors but is there a way those metrics can be of use for Customers to select a SAAS vendor, it’s not about the SAAS selection criteria but it’s about making sense of SAAS metrics tracked by SAAS vendor from customer perspective.  Not all but there are few metrics from the lot which are relevant to potential customers and   can help them to evaluate SAAS vendors. Best part is that these

SAAS-Valency: Sustain Beyond commodification in Banking SAAS

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Needless to say, SAAS (Software As A Service) is the buzzword in the software market today across domains and no discussion in IT corridors is complete without mention of SAAS. Banking and Financial services (BFS) are no different to this magic Sauce called SAAS which will make the software sell like peanuts. I am saying peanuts intentionally because SAAS is like a double-edged sword, it sells more and as it sells more, it approaches being a commodity. Successful SAASification of a product line does signal commodification and it necessitates the product vendors to start playing in the value space rather than fighting the nasty pricing, scale and operational excellence game at commodity level to sustain themselves in the long run.   Most of the CRM, Service Management, Payroll, HRMS software being the first in space to be available in SAAS model have already become commodity and those players are looking at next level to stay afloat above the commodity market and at same to make inroads