Winning at SaaS: Only the Bold Survive
SaaS vendors that follow in the footsteps of their enterprise software predecessors are doomed to failure. Winning SaaS strategies boldly leverage the Internet to create unassailable competitive advantage.
By Joel York, Xignite
Software-as-a-Service is moving from the cutting edge to the mainstream, but there is enormous disparity in the performance of SaaS businesses - from rapidly growing startups to embarrassingly unprofitable public companies - and only a handful of true success stories like Salesforce.com and Taleo where growth, profitability and ROI have gone hand-in-hand.
SaaS is pretty much on the far side of the hype cycle, but the future is anything but clear. Zealots would have us believe that on-premise enterprise software will be as extinct as the dinosaurs in ten years, while detractors call it a fad and point to the minuscule market share of SaaS in the enterprise. Still, others espouse the wisdom of so-called hybrid delivery models. Is there a method to this madness?
My feeling is yes. I believe investors and entrepreneurs that focus objectively on business and technology fundamentals will make better investment decisions, create wildly successful SaaS businesses, and avoid misguided and unprofitable SaaS experiments. The key is understanding how SaaS creates real economic value over on-premise software and leveraging that distinction in to a competitive advantage.
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BreakingPoint Shakes Up the Tools Market
Britton Manasco of Manasco Marketing Partners presents this case study of BreakingPoints successful entry into a market dominated by large, established players in this post to his SandHill.com Blog, From the Front.
Let the Big Guys Drive
Jon B. Fisher demonstrates how a niche startup can tailor itself for acquisition by a major vendor in this post to his SandHill.com Blog, Strategic Entrepreneurism.
Cloud Computing An Investors Perspective
Savinay Berry of Granite Ventures examines the opportunities presented in the cloud for customers, vendors and investors in this post to the SandHill.com Blog on cloud computing.
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DON'T MISS: McKinsey's Interview with John Chambers of Cisco
The CEO and chairman of Cisco Systems explores approaches to decentralized management and leadership and also offers perspective on the future of Web technology and the opportunity that an economic downturn provides for strategically minded companies in this article from The McKinsey Quarterly.
The Week in Review: "Make Our Day"
Ellison spends OpenWorld calling out IBM; plus, Oracle changes its partner program, Google grows profits, and Benioff plays nice. Read these stories and more software news of the week in the latest SandHill.com Software News Summary.
Poll: Biggest SaaS Mistake?
What is the biggest mistake SaaS vendors can make?
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Last week, readers voted on the importance of MDM to realizing software value.
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More at SandHill.com:
Gartner predicts IT spending rebound in 2010.
Read the most important enterprise software industry news of the week >>
Overtone receives $2.5 million.
Monitor the latest software venture capital deals >>
BMC Software buys Tideway.
Size up last week’s software M&A deals >>
Mike Metscher named CEO of Future Point Systems.
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.
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