Rethink Your SaaS Channel Strategies

Achieving profitable growth for SaaS products involves adopting a new mindset about “channel” and gaining a keen understanding of the difference between “customers” and “users,” the benefits of network-centricity and the role of freemium.

By Lincoln Murphy, Sixteen Ventures

The notion of channels in the distribution of SaaS is a topic with very little consensus in the industry. Many people seem to think: “if its on the Web then the Web is the channel.” This is a very narrow-minded view that can significantly stagnate, if not completely stall, growth. There are industries or market segments where the people making the purchasing decisions do not spend their time searching the Web for the best solution. In these cases they turn to trusted advisors for recommendations.

Unlike in traditional software where the channel partners had to have some level of technical expertise, with SaaS, that is not the case, significantly expanding the type of company that could fill the role. It is up to the vendor to fully understand the role of intermediaries in their market and how to leverage the existing relationships those third-parties have with their target end customers.

Take Part in the Cloud Connect Lauch Pad

TechWebs Cloud Connect Launch Pad is a competition that lets companies present an innovative application (either in development and about to launch, or recently launched) to the Cloud Connect community. All entrants will receive visibility on the Cloud Connect Launch Pad site, and finalists will be invited to present their applications live at the Cloud Connect conference.

Developers of all sizes are invited to enter their applications or services that have been announced or planned for release during the 2010 calendar year. Click here. to find out more about how to enter, fill out our application form, and then Tweet your entry to the Cloud Connect Launch Pad Twitter handle.

Hitting the Sweet Spot

Paul O'Dea Paul ODea of Select Strategies explains the upside of studying your best customers and leveraging that insight when targeting new prospects. Read ideas for putting this practice into action in this post to the SandHill.com Blog on software growth strategies.

Connecting with Customers Every Time

Michael Leimbart of Wilson Learning says leveraging versatility during the sales process will improve business results. Read how in this post to the SandHill.com Blog on software sales.

Week in the Cloud: Jan. 22, 2010

A new SandHill.com Blog by Kamesh Pemmaraju delivers a weekly report on significant news, deals and thought leadership in the cloud computing space. Read this weeks post on how private “private clouds” really are, cloud adoption rates, VMwares new integration offerings, and the Census Bureaus cloud initiative.

The Latest Software Business News

All Headlines: SugarCRM starts 2010 with momentum.

VC Activity: New Enterprise Associates to invest $375 in India.

M&A Deals: IBM acquires national interest security company.

Executive Moves: Anil Gupta named EVP and global head of business operations at Patni Computer Systems.

Quote of the Week

“While venture capitalists as a group loosened their purse strings toward the end of 2009, some start-ups, especially those seeking first or second rounds, may be in for a rude awakening in 2010... A large share of companies are due for capital this year and the competition will be fierce.”

— Scott Austin, editor of Dow Jones VentureWire on the downturn in VC investing

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THIS WEEK’S SPONSOR

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