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SaaS Business Model

SaaS Business Model. Ted Keating / M.D. ‘IT’s Logical’. SaaS. The Business Model. PaaS. IaaS. PUBLIC. ON PREMISE. HOSTED. F ive keys issues for SaaS success. Sales construction to suit SaaS Services to Survive Service Costs / Productivity Cash to survive SaaS KPI’s .

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SaaS Business Model

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  1. SaaS Business Model Ted Keating / M.D. ‘IT’s Logical’

  2. SaaS The Business Model PaaS IaaS PUBLIC ON PREMISE HOSTED

  3. Five keys issues for SaaS success • Sales construction to suit SaaS • Services to Survive • Service Costs / Productivity • Cash to survive • SaaS KPI’s

  4. Sales construction to suit SaaS • Team Construction • Customer focus… Security & Reliability • Product life cycle - Tipping point? • Is it the same? • Hunters & Gatherers • The Rule of 78 • Kill off Sales Heroics • Incentives

  5. Structure yourSales operation to suit a SaaS model

  6. Normal Partner Model

  7. SaaS Model

  8. Services to Survive • Initial Sale Services • Proof of Concept … Build - Migration Support, Training, Security • Other Service Growth Areas • Integration • Managed Services • … Outsourcing?

  9. ‘Services’ to survive

  10. Service Productivity • Labour cost pressure - CASS • Structure teams • Efficiency – for P&L • Measure • Automate – Cloud? • Ticketing / Knowledge Systems • Out-of-Town resources

  11. Service efficiency will grow in importance

  12. Cash needs strict management • Core Problem • Incentives • Discounts • Services • Negotiate • Capital?

  13. Cash is not only king,it’s the dictator of success or….

  14. Key Performance Indicators • Service Revenue • Cash • Churn • Monthly Recurrent Revenue (Not Sales /GP)

  15. Measure, for success

  16. The keys to SaaS success… • 1 - Sales To suit SaaS • 2 - Services to Survive • 3 - Service Cost / Efficiency • 4 - Cash is core • 5 – Measure - KPI’s - MRR, Churn, Service Rev, Cash

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