Making Money with SaaS SIIA Event
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Making Money with SaaS SIIA Event

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  • And if we need further proof, IDC is still standing by their global forecast of 10.7B by 2009. We are also seeing Gartner stepping up saying that by 2011, 25% of new business software will be delivered as SaaS and there was a Springboard Research quote published in SMBNet Asia stating that SaaS in Asia will grow from last year’s $80M to $500M by 2008.

Making Money with SaaS SIIA Event Making Money with SaaS SIIA Event Presentation Transcript

  • 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 [email_address] (SaaS) Software as a Service
  • Progress Software Snapshot 05/21/10 Global Presence 25 Years of Experience
    • 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
    deployed in 135 countries worldwide 24 countries deploying SaaS apps NASDAQ: PRGS Headquarters: Bedford, MA Customer Sites: Over 110,000 Offices: 90 Worldwide Employees: 2,000+ Revenues ‘08: $504 million 28 YEARS OF EXPERIENCE CUSTOMER and PARTNER BASE GLOBAL PRESENCE
  • 05/21/10 WW Spend On Software as a Service 2008-2012 SaaS Opportunity growing to $17B by 2012 Source: IDC SaaS Forecast July, 2008 ($B) “ A healthy channel will be critical to the successful long-term growth of SaaS and cloud computing providers.” Saugatuck Technology, October 2008
  • 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.
    05/21/10
    • 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 05/21/10 Requires rethinking your business model – but also requires looking at new “go to market” strategies
  • 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?
    05/21/10
  • So what does that mean for YOU?
    • Think about other ways to bring your service offerings to market….
    05/21/10 05/21/10 Assess new and existing relationships Reaching new Buyers and Influencers New Geographies Key Considerations : Key Considerations : Key Considerations:
    • 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?
    • 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?
    • 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….
  • 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
    05/21/10 Business Domain Specialist Business Service Providers
  • 05/21/10
  • 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…
    05/21/10