SaaS Vendors: Stop Thinking Like Software Companies!
Succeeding with an on-demand model requires ISVs to adopt a completely new mindset in order to avoid the commoditization trap.
By Lincoln Murphy, Sixteen Ventures
It is called Software-as-a-Service, yet SaaS Vendors continue to focus on the first “S” (Software) and not the last “S” (Service). It is the Service that makes SaaS unique and differentiates it as a Business Architecture from Legacy (on-premises, deployed, etc.) Software. But taking full advantage of being a SaaS Vendor requires a shift in mindset; Stop thinking like a Software Company and start thinking like a Service Company!
By shifting your mindset in this way, the result will be better management of customer expectations, increased revenue, and an improved ability to defend your market position. The mindset shift is small, but is incredibly powerful and potentially game-changing for your company.
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Its Time for Sales 2.0
Anneke Seley of Phone Works explains why it is imperative that the software industry changes the way it sells. Read her analysis of next-generation, tech-driven sales strategies in this post to the SandHill.com Blog on sales best practices.
The Three Rs of Anti-Piracy Strategy
Tim Bridge of V.i. Laboratories says that most software vendors are in denial about the level of revenue lost every year due to piracy. Find out more about what vendors can do to decrease piracy levels in this post to the SandHill.com Blog on operations best practices.
Publish Your Perspective!
SandHill.com wants your opinions. Send your thoughts on the enterprise software industry to SandHill.com editor, Maryann Jones Thompson (firstname.lastname@example.org) and have your opinions published on our site.
DON'T MISS: The Irrational Side of Change Management
Most change programs fail, but the odds of success can be greatly improved by taking into account these counterintuitive insights about how employees interpret their environment and choose to act. Read more about change management best practices in this article from The McKinsey Quarterly.
News Update: M&A Moves
Software deal activity picks up; plus, Forrester says software processes are dropping, and Obama wants a national tech policy. Read these stories and more software news of the week in the latest SandHill.com Software News Summary.
Poll: SaaS Without the Service?
Are SaaS vendors skimping on the second “S”?
Take our Pulse Poll >>
Last week, readers speculated as to whether ISVs could pass a financial industry-type stress test.
Give us your opinion and see the results >>
More at SandHill.com:
Should Microsoft buy Salesforce.com?
Read the most important enterprise software industry news of the week >>
Austin Ventures commits $50 million to form Brazos Software.
Monitor the latest software venture capital deals >>
Intuit pays $170 million for Pay Cycle.
Size up last week’s software M&A deals >>
Virtual Desktop Software maker Unidesk named Don Bulens CEO.
See who’s made it to the top in our list of recent software executive appointments.
Send us your feedback on this newsletter and the SandHill.com site.
“Challenges are what make life interesting; overcoming them is what makes life meaningful.”
— Joshua J. Marine
Courtesy of Malcolm Kusher, The Kushner Group
THIS WEEK’S SPONSOR
OpSource delivers a complete Web operations solution for software as a service and web companies. Many of the largest software companies and the most innovative web companies have selected OpSource as their Web operations partner. By doing so, they are able to focus their resources on building on-demand businesses, rather than investing in and managing the complex and costly infrastructure 24x7, staff and services necessary for successful web application delivery. Providing everything but the application itself, OpSource is the only Web operations company whose customers pay only for what they sell, not for the resources they consume.
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