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

    1. 1. Making Money with SaaS SIIA Event Hosted by Progress Software (SaaS) Software as a Service
    2. 2. Building a compelling Go-to-Market Strategy Colleen Smith Managing Director, Software as a Service April 2009 [email_address] (SaaS) Software as a Service
    3. 3. Progress Software Snapshot 05/21/10 Global Presence 25 Years of Experience <ul><li>Progress community over $5B total annual revenue </li></ul><ul><li>3 Million users worldwide </li></ul><ul><li>2,000 Partners deliver 6,000 unique business applications in manufacturing, distribution, financial services, retail, healthcare and other markets </li></ul><ul><li>VAR Business 5-star rating for our partner program </li></ul><ul><li>Each year PSC and its Application Partners add 600,000 new users. </li></ul><ul><li>60% of Fortune 500 manufacturers use Progress technology </li></ul><ul><li>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 </li></ul><ul><li>Over 200 SaaS Providers using PSC technologies today to deploy/manage/integrate SaaS applications </li></ul>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
    4. 4. 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
    5. 5. Why the need for Channels and Ecosystems? <ul><li>The most aggressive adopters of SaaS tend to be low-to-midsized businesses. This segment has long been the sweet spot for channel partners. </li></ul><ul><li>Channel partners already have strong relationships with business decision-makers, but the dialogue is changing. </li></ul><ul><li>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. </li></ul><ul><li>Executives still may look first to their trusted service providers, with whom they have developed relationships. </li></ul>05/21/10
    6. 6. <ul><li>R&D focus on service delivery methodologies rather than product features. </li></ul><ul><li>Marketing focus on packaging and pricing services/solutions, not technology/products. </li></ul><ul><li>Sales focus on selling economic business value not product features. </li></ul><ul><li>Customer support focus on provisioning, billing and automated, remote management. </li></ul>Changes to your Business 05/21/10 Requires rethinking your business model – but also requires looking at new “go to market” strategies
    7. 7. Addressing Key Questions…to be successful <ul><li>What is my go to market strategy and value proposition? </li></ul><ul><li>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? </li></ul><ul><li>What is the best way to compete against new, non-traditional channel partner entrants? </li></ul><ul><li>In what way can I participate in a SaaS ecosystem? </li></ul>05/21/10
    8. 8. So what does that mean for YOU? <ul><li>Think about other ways to bring your service offerings to market…. </li></ul>05/21/10 05/21/10 Assess new and existing relationships Reaching new Buyers and Influencers New Geographies Key Considerations : Key Considerations : Key Considerations: <ul><li>Do you belong to an ecosystem? </li></ul><ul><li>How can you exploit that relationship? </li></ul><ul><li>Are there other ecosystems that you can participate within? </li></ul><ul><li>Who are the major players in your market? </li></ul><ul><li>Can you extend your business to new geography? </li></ul><ul><li>Are your current markets bound by geography? </li></ul><ul><li>Who are the players in that new geography and how could you best work with them? </li></ul><ul><li>Is there already an established organization that complements your offering? </li></ul><ul><li>Look at alternative channel options…customers, service providers, BPOs, telco’s, etc. </li></ul><ul><li>Look at those who can add value to your service or those that you can add value to their service </li></ul><ul><li>“ White Label” opportunities may exist…. </li></ul>
    9. 9. New Business Partner Opportunities <ul><li>Deep knowledge in functional software area and/or industry </li></ul><ul><li>Focus on business process optimization </li></ul><ul><li>Strong potential for micro-vertical application development (janitorial services, poultry farming, insurance claims, etc.) </li></ul><ul><li>Non-IT companies with established practice area such as banks, law firms, marketing/travel agencies… </li></ul><ul><li>SaaS providers look to this type of &quot;alternative&quot; channel where &quot;customer-turns-partner“ </li></ul><ul><li>Main value add is access to customers and domain-specific knowledge </li></ul>05/21/10 Business Domain Specialist Business Service Providers
    10. 10. 05/21/10
    11. 11. Summary & Conclusions <ul><li>Go-to-market planning is critical to your success </li></ul><ul><li>New channel/partner strategies essential </li></ul><ul><li>Opportunity to redefine and expand product portfolio and business value – aggregating benchmark data, new offerings, etc… </li></ul>05/21/10

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