Software Pulse

Business Strategy for Software Executives

August 11, 2009

Subraya Mallya

Reducing the Cost of SaaS Implementations

Customers need vendors to work harder to alleviate the cost and stress associated with SaaS deployments. Here’s what needs to be done.

By Subraya Mallya, FOYOPA

In the on-premise enterprise software world, I have seen many software implementations go awry despite ballooning implementation expenditures. Customers never see their ROI until many years into the implementation, by which time they are so deep into upgrades, manpower turnover, shrinking IT budgets, IT organizational fiefdom - you get the picture - that ROI is the last thing on their mind.

As the customer struggles, the software vendor bears very little risk. The company has pocketed the license dollars and issued the press release on the customer acquisition.

With SaaS, the tables are turned. The SaaS software vendors (to their own detriment) have perpetuated this notion that, with SaaS, implementation will be effortless. But as we all know, enterprise software implementation is much more than just installing the software. Vendors must work harder to reduce deployment cost and improve ROI for their customers. Here’s how.


Expanding SaaS Thought Leadership

Need a one-stop destination for SaaS insight? Access all of’s opeds, blog posts and news on our SaaS “Topic Pages.” Click “Topics” on the top navigation bar on and you’ll receive a drop-down menu of all our current Topics Pages, including open source and M&A.

The Future of Conferences

Judith Hurwitz Judith Hurwitz of Hurwitz & Associates looks at the effectiveness of virtual conferences in this post to the Blog “New Era, New Thinking.”

The Importance of Relationship Building

Ed Emde of Wilson Learning explains how strong relationships can cushion a company through tough times in this post to the Blog on software sales best practices.

Publish Your Perspective! wants your opinions. Send your thoughts on the enterprise software industry to editor, Maryann Jones Thompson ( and have your opinions published on our site.

Management Lessons from the Financial Crisis

Two business strategists discuss the nature of risk, the effectiveness of performance-measurement systems, and the difficulty of getting governance and incentives right. Learn more in this article from The McKinsey Quarterly.

The Week in Software News

Read the Software News Summary and read all the news stories that shaped the software industry over the past week.

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Parting Thought

“In business, you don't get what you deserve, you get what you negotiate.”
— Chester L. Karrass

Courtesy of Malcolm Kusher, The Kushner Group


Ness Software Product Labs

Ness Software Product Labs delivers the next generation of the managed software development lab - R&D and software product development outsourcing and consulting that extends software product capacity and drives innovation. Ness operates over 50 labs for ISVs and other product-oriented clients, utilizing delivery centers across India and Eastern Europe. These centers are designed to provide software ISVs and enterprise organizations who rely on proprietary software to generate their revenues with a complete extension of their internal R&D software development team.
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