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Transforming Legacy Products into Successful SaaS Applications
1. Working with a net… or an anchor
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Launching a SaaS application out
of a legacy enterprise product
Tim Oliver
Chief Product Officer
4. Features to support in each
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Customizations
& one-offs?
SaaSLegacy
High-appeal
features powered by
new technology?
5. Imagine you have a blank slate
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Start with the new customer vision
not with a legacy customer laundry list
What can be added
without sacrificing usability
What can be made configurable?
Minimize outright customizability
9. Packaging & Pricing
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• Price to value, not to artificial conversion factors
• Choose your volume driver carefully
• Consider tax-table discount schedule
• Bundling? Aim for the middle
• Freemium? Measure opportunity plus support costs
• Prioritize recurring over one-time costs
• Term length? Monthly, annual, or multi-year?
• Simplify and standardize contracts
13. Compensation
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What do you pay on?
• Connect to LTV
• Long-term contacts aren’t much more valuable
• Use easy-to-grasp proxy metrics
Pay up in the first year!
• Yes, the percentages will go up
• This isn’t insurance – resist the “book of business” approach
• Over-communicate
14. Implementation
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• Strive for fast, standard deployments
• Push configuration into the customer’s hands
• Effective onboarding over extensive training
• Learn to say “no” to customizations – maintain upgradability
No Camping! Forget about PS as a profit center
15. Customer Support to Customer Success
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Product works
Customer satisfied
What customer wants
Upsell opportunities
Reactive
Project successful
Business benefits
Best practices
Growth & renewal
Proactive
16. The Impact of Churn
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17. Speaking of Financial Metrics
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• MRR vs ARR?
• Modeling infrastructure & support costs
• Determining customer acquisition costs
• Predicting churn
• Estimating LTV – don’t forget obsolescence
• Prepare for cash flow dip
18. Overall Culture
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• Everything is part of the product
• Consider user experience with every touch
• Embrace agility throughout – get it out and iterate
• Accelerate time to value
• Customer success mentality
• Collect data at every opportunity
• Ingrain metrics in decision-making
How many in room:
Have or are transitioning from legacy to Saas
Have worked with legacy on prem apps
Have worked with saas apps
Roles in audience:
product?
Engineering
Sales
Marketing
Finance
Cust success
Talking from my research & experiences
Assumption that not ripping bandaid off all at once; assume decision is made – this isn’t about pros/cons of doing it
YMMV
Legacy on prem: reduce code base branching
Combined: give SaaS access to some new features for legacy customers
Hosted: Maintain some customizability with single tenant hosted solutions
When are you ready for existing customers?
You know it’s stable
When do you want to provide incentives?
Have good migration tools in place
Cost benefit
What kinds of incentives?
Reduced subscriptions?
Waived PS fees?
When do you want to end-of-life?
Better to lose remaining maint revenue
Traditional mindset is to herd all the cats in the enterprise for a single bite at the apple.
With SaaS, the sales cycle must be shortened.
Present options too early and you risk delaying sales
Present too late and you may end up with disgruntled and/or difficult to migrate customers