Business Strategy for Software Executives
December 3 , 2007
Between the Lines: SaaS Business Model Execution from Top to Bottom
One veteran CEO shares best practices for on-demand success based on his company’s experiences.
By Michael Gregoire, Taleo
The Software-as-a-Service (SaaS) model of software delivery has grown rapidly because it’s a revolutionary way to deliver business solutions. Gartner reports that “by 2011, 25 percent of new business software will be delivered as SaaS”. IDC estimates that “by 2011, this opportunity will reach $14.8 billion, representing a compound annual growth rate (CAGR) of 32%.”
In spite of this market potential, many SaaS vendors have struggled to balance growth with profitability. Salesforce.com, arguably the most well known on demand company in the world, has only recently achieved consistent profitability. Many other SaaS companies have racked up significant losses in search of profitability. Successful evolution from start-up mode to a profitable public company requires relentless focus on execution at all levels to fuel top line growth while delivering bottom line results.
The Art of Front End Negotiations
When crafting an outsourcing deal, the first interactions with the client are critical. Anirban Dutta of Satyam Computer Services Ltd. provides a list of tips for moving the deal forward in this post to the SandHill.com Blog on outsourcing best practices.
Selling to Business Execs? Be Prepared
Many software salespeople have trouble selling to top executives. Jeff Thull of Prime Resource Group says the key is being prepared. Read how to improve your sales results in the executive suite in this post to the SandHill.com Blog on software sales best practices.
Publish Your Perspective!
The SandHill.com Blog wants your opinions. Send your thoughts on the enterprise software industry to firstname.lastname@example.org and we’ll publish them in our blog.
The Evolving Role of the CMO
Many chief marketers still have narrowly defined roles that emphasize advertising, brand management, and market research. They will have to spread their wings. Read why in this article from The McKinsey Quarterly.
News Update: Trials of the Top Dogs
Microsoft’s troubles with Vista and Office 2007 continue; plus, Ed Zander aims for the door, India aims for $15 billion in software, Intuit aims at SMBs’ online presence and HP aims to keep buying. Read these stories and more software news of the week in the latest SandHill.com Software News Summary.
Poll: Time to Profitability?
How many years does it take to build a profitable SaaS company?
Last week, readers gave their opinions as to whether their company was prepared for an economic downturn.
More at SandHill.com:
Sand Hill Group celebrates the holidays.
Qwaq, creator of virtual spaces for the enterprise, receives $7 million.
Black Duck Software named Robert Lapides as EVP of Field Operations
Send us your feedback on this newsletter and the SandHill.com site.
"When a man tells you that he got rich through hard work, ask him: Whose?"
Courtesy of Malcolm Kusher, The Kushner Group
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