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Working with a net… or an anchor
@timoliver47 #LegacytoSaaS #DENStartupWeek
Launching a SaaS application out
of a legacy e...
@timoliver47 #LegacytoSaaS #DENStartupWeek
Pros Cons
Culture &
Talent
Methodology
& Systems
Multiple
product lines
Experie...
A Whole-Company Transformation
@timoliver47 #LegacytoSaaS #DENStartupWeek
Product
Engineering
Marketing
& Sales
Services &...
Features to support in each
@timoliver47 #LegacytoSaaS #DENStartupWeek
Customizations
& one-offs?
SaaSLegacy
High-appeal
f...
Imagine you have a blank slate
@timoliver47 #LegacytoSaaS #DENStartupWeek
Start with the new customer vision
not with a le...
Architecture Transition Options
@timoliver47 #LegacytoSaaS #DENStartupWeek
Legacy
Thin-Client
On-Prem Combined Hosted
Additional Architecture Considerations
@timoliver47 #LegacytoSaaS #DENStartupWeek
• Integration changes
• Reporting option...
@timoliver47 #LegacytoSaaS #DENStartupWeek
Resource
Allocation?
Optional RequiredEncouraged
Migration Strategy?
SaaS
Roadm...
Packaging & Pricing
@timoliver47 #LegacytoSaaS #DENStartupWeek
• Price to value, not to artificial conversion factors
• Ch...
Marketing
@timoliver47 #LegacytoSaaS #DENStartupWeek
Education
Onboarding
Sales
No longer just about lead generation
• Nur...
Sales Methodology
@timoliver47 #LegacytoSaaS #DENStartupWeek
from
“Elephant hunting
to
“Land and Expand”
Investment in sal...
Pipeline Transition
@timoliver47 #LegacytoSaaS #DENStartupWeek
SaaS only
Provide
Options
Legacy Only
Mature
Deals
New
Lead...
Compensation
@timoliver47 #LegacytoSaaS #DENStartupWeek
What do you pay on?
• Connect to LTV
• Long-term contacts aren’t m...
Implementation
@timoliver47 #LegacytoSaaS #DENStartupWeek
• Strive for fast, standard deployments
• Push configuration int...
Customer Support to Customer Success
@timoliver47 #LegacytoSaaS #DENStartupWeek
Product works
Customer satisfied
What cust...
The Impact of Churn
@timoliver47 #LegacytoSaaS #DENStartupWeek
Speaking of Financial Metrics
@timoliver47 #LegacytoSaaS #DENStartupWeek
• MRR vs ARR?
• Modeling infrastructure & support...
Overall Culture
@timoliver47 #LegacytoSaaS #DENStartupWeek
• Everything is part of the product
• Consider user experience ...
Questions
@timoliver47 #LegacytoSaaS #DENStartupWeek
Contact me:
Tim Oliver
tim@covalentdata.com
toliver@writepositioning....
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Transitioning from Legacy to SaaS

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Working with a net... or an anchor -- launching a SaaS application out of a legacy enterprise product

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Transitioning from Legacy to SaaS

  1. 1. Working with a net… or an anchor @timoliver47 #LegacytoSaaS #DENStartupWeek Launching a SaaS application out of a legacy enterprise product Tim Oliver Chief Product Officer
  2. 2. @timoliver47 #LegacytoSaaS #DENStartupWeek Pros Cons Culture & Talent Methodology & Systems Multiple product lines Experience & infrastructure Product market fit Cash flow
  3. 3. A Whole-Company Transformation @timoliver47 #LegacytoSaaS #DENStartupWeek Product Engineering Marketing & Sales Services & Support Finance
  4. 4. Features to support in each @timoliver47 #LegacytoSaaS #DENStartupWeek Customizations & one-offs? SaaSLegacy High-appeal features powered by new technology?
  5. 5. Imagine you have a blank slate @timoliver47 #LegacytoSaaS #DENStartupWeek 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
  6. 6. Architecture Transition Options @timoliver47 #LegacytoSaaS #DENStartupWeek Legacy Thin-Client On-Prem Combined Hosted
  7. 7. Additional Architecture Considerations @timoliver47 #LegacytoSaaS #DENStartupWeek • Integration changes • Reporting options • Single sign-on • Security • Certification requirements • End-to-end performance testing • Cloud vs. Managed Services vs. Colocation
  8. 8. @timoliver47 #LegacytoSaaS #DENStartupWeek Resource Allocation? Optional RequiredEncouraged Migration Strategy? SaaS Roadmap Planning Release Cycle? Legacy
  9. 9. Packaging & Pricing @timoliver47 #LegacytoSaaS #DENStartupWeek • 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
  10. 10. Marketing @timoliver47 #LegacytoSaaS #DENStartupWeek Education Onboarding Sales No longer just about lead generation • Nurture throughout • Expose more • Measure everything Support Blurring lines with
  11. 11. Sales Methodology @timoliver47 #LegacytoSaaS #DENStartupWeek from “Elephant hunting to “Land and Expand” Investment in sales cycle Investment in growth
  12. 12. Pipeline Transition @timoliver47 #LegacytoSaaS #DENStartupWeek SaaS only Provide Options Legacy Only Mature Deals New Leads Developing Opportunities
  13. 13. Compensation @timoliver47 #LegacytoSaaS #DENStartupWeek 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. 14. Implementation @timoliver47 #LegacytoSaaS #DENStartupWeek • 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. 15. Customer Support to Customer Success @timoliver47 #LegacytoSaaS #DENStartupWeek Product works Customer satisfied What customer wants Upsell opportunities Reactive Project successful Business benefits Best practices Growth & renewal Proactive
  16. 16. The Impact of Churn @timoliver47 #LegacytoSaaS #DENStartupWeek
  17. 17. Speaking of Financial Metrics @timoliver47 #LegacytoSaaS #DENStartupWeek • 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. 18. Overall Culture @timoliver47 #LegacytoSaaS #DENStartupWeek • 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
  19. 19. Questions @timoliver47 #LegacytoSaaS #DENStartupWeek Contact me: Tim Oliver tim@covalentdata.com toliver@writepositioning.com www.linkedin.com/in/timoliver47 https://twitter.com/timoliver47

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