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Making Money with SaaS

(SaaS) Software as a Service. Making Money with SaaS. SIIA Event Hosted by Progress Software. (SaaS) Software as a Service. Building a compelling Go-to-Market Strategy. Colleen Smith Managing Director, Software as a Service April 2009 cosmith@progress.com. CUSTOMER and PARTNER BASE.

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Making Money with SaaS

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  1. (SaaS) Software as a Service Making Money with SaaS SIIA Event Hosted by Progress Software

  2. (SaaS) Software as a Service Building a compelling Go-to-Market Strategy Colleen Smith Managing Director, Software as a Service April 2009 cosmith@progress.com

  3. CUSTOMER and PARTNER BASE 28 YEARS OF EXPERIENCE GLOBAL PRESENCE Progress Software Snapshot 25 Years of Experience NASDAQ: PRGS Headquarters: Bedford, MA Customer Sites: Over 110,000 Offices: 90 Worldwide Employees: 2,000+ Revenues ‘08: $504 million • Progress community over $5B total annual revenue • 3 Million users worldwide • 2,000 Partners deliver 6,000 unique business applications in manufacturing, distribution, financial services, retail, healthcare and other markets • VAR Business 5-star rating for our partner program • Each year PSC and its Application Partners add 600,000 new users. • 60% of Fortune 500 manufacturers use Progress technology • Progress serves the leaders in many markets-4 out of 5 of the world’s largest electronics-3 out of 4 of the world’s largest medical-4 out of 5 of the world’s largest beverage-2 out of 4 of world's largest food-16 out of 25 of the world’s largest auto suppliers • Over 200 SaaS Providers using PSC technologies today to deploy/manage/integrate SaaS applications Global Presence deployed in 135 countries worldwide 24 countries deploying SaaS apps

  4. SaaS Opportunity growing to $17B by 2012 WW Spend On Software as a Service 2008-2012 “A healthy channel will be critical to the successful long-term growth of SaaS and cloud computing providers.” ($B) Saugatuck Technology, October 2008 Source: IDC SaaS Forecast July, 2008

  5. Why the need for Channels and Ecosystems? The most aggressive adopters of SaaS tend to be low-to-midsized businesses. This segment has long been the sweet spot for channel partners. Channel partners already have strong relationships with business decision-makers, but the dialogue is changing. Many smaller businesses will value service providers who can combine best-of-breed SaaS solutions together into de facto suites and create customer-specific extensions to meet the specific requirements of their business. Executives still may look first to their trusted service providers, with whom they have developed relationships.

  6. R&D focus on service delivery methodologies rather than product features. Marketing focus on packaging and pricing services/solutions, not technology/products. Sales focus on selling economic business value not product features. Customer support focus on provisioning, billing and automated, remote management. Changes to your Business Requires rethinking your business model – but also requires looking at new “go to market” strategies

  7. Addressing Key Questions…to be successful What is my go to market strategy and value proposition? Who are the best providers to partner with, not only in terms of solution and technology, but also in terms of partner-friendly policies such as SLAs and channel conflict avoidance? What is the best way to compete against new, non-traditional channel partner entrants? In what way can I participate in a SaaS ecosystem?

  8. So what does that mean for YOU? Think about other ways to bring your service offerings to market…. Assess new and existing relationships New Geographies Reaching new Buyers and Influencers Key Considerations: Key Considerations: Key Considerations: • Can you extend your business to new geography? • Are your current markets bound by geography? • Who are the players in that new geography and how could you best work with them? • Is there already an established organization that complements your offering? • Do you belong to an ecosystem? • How can you exploit that relationship? • Are there other ecosystems that you can participate within? • Who are the major players in your market? • Look at alternative channel options…customers, service providers, BPOs, telco’s, etc. • Look at those who can add value to your service or those that you can add value to their service • “White Label” opportunities may exist…. 9/23/2014 8

  9. New Business Partner Opportunities Deep knowledge in functional software area and/or industry Focus on business process optimization Strong potential for micro-vertical application development (janitorial services, poultry farming, insurance claims, etc.) Non-IT companies with established practice area such as banks, law firms, marketing/travel agencies… SaaS providers look to this type of "alternative" channel where "customer-turns-partner“ Main value add is access to customers and domain-specific knowledge Business Domain Specialist Business Service Providers

  10. Summary & Conclusions Go-to-market planning is critical to your success New channel/partner strategies essential Opportunity to redefine and expand product portfolio and business value – aggregating benchmark data, new offerings, etc…

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