Software Pulse

Business Strategy for Software Executives

November 17, 2009

Dave Chase and Matt HeinzTen Laws for SaaS Sales & Marketing Success

Succeeding at SaaS requires a next-generation go-to-market strategy and adherence to a new set of software business laws for building a sales and marketing organization.

By Dave Chase, Altus Alliance and Matt Heinz, Heinz Marketing

Last week, Byron Deeter and his colleagues at Bessemer Venture Partners wrote a terrific piece entitled “Bessemer’s Top 10 Laws for Cloud Computing and SaaS.” The article laid out why it is critical for SaaS-based businesses to abandon many of the long-held tenets of historic software business models and adhere to a new set of laws. Where Deeter did a nice job of laying out “why” managing a Cloud/SaaS software business must be done differently, we have created a set of ten laws to explain “how” to succeed at SaaS Sales and Marketing.

Our SaaS Sales and Marketing Laws are based on success stories that span many sectors - from higher education to online advertising to HR solutions to energy efficiency to vertical markets, such as the dental industry. Our experience implementing these ten laws at dozens of companies has been a consistent 50 percent-or-greater reduction of customer acquisition costs combined with a dramatic increase in revenues.


Position Your Software Company for Acquisition

Those of us watching the software landscape know that despite the economic downturn M&A is still the predominant exit for startups. Acquisitions of Vignette, SPSS, Wind River, DataSynapse, Omniture and SpringSource underscore this fact.
If you are you thinking about the best way to position your startup for a possible acquisition then you should attend Software Day at TiE Entrepreneurs Week, Tues. Nov. 17 from 2:30-8:30pm at the TiE Conference Center, 2903 Bunker Hill Lane, Santa Clara.

At this event corporate development executives from SAP, HP, Cisco and other major companies will discuss trends they are watching, segments that are of most interest to them, and ultimately how they identify startups for acquisition. You will also hear lessons learned from the CEOs of the two big M&A headliners in 2009: Omniture and SpringSource, moderated by publisher M.R. Rangaswami. Attendance is limited so click here to find out more and to reserve your spot. Tickets are $95 for members and $125 for non members.

Innovation Will Drive the Recovery

Gary DamianoWouter Koetzier presents the implications of a new Accenture study on the power of innovation strategy to pull software companies out of the economic downturn in this post to the Blog on Software Innovation Strategies.

Right Engineering SaaS Products

Gary DamianoIn an excerpt from a white paper on SaaS R&D opportunities and challenges, Karthik Viswanathan of Aspire Systems outlines the engineering pitfalls that software vendors can fall into in this post to the Blog on on-demand software.

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.

DON'T MISS: Strengthening India’s Offshoring Industry

India’s technology and business services industry can defend and even expand its global market share, but only if it learns to innovate. Read how in this article from The McKinsey Quarterly.

The Week in Review: Market Shake-ups

Oracle slammed; plus Google's Go, bodies go virtual, Cisco-centric moves, and two world's firsts arrive. Read these stories and more software news of the week in the latest Software News Summary.

Poll: Importance of SaaS-Specific Marketing Strategy?

Do software vendors need to abandon historical practices to succeed at SaaS?
Take our Pulse Poll >>

Last week, readers chose the cloud law they feel is most important.
Give us your opinion and see the results >>

More at

Five competitive differentiators for cloud services.
Read the most important enterprise software industry news of the week >>

Insurance and financial sales distribution system manager iPipeline received $15 million.
Monitor the latest software venture capital deals >>

Infosys acquires U.S. BPO company, McCamish Systems.
Size up last week’s software M&A deals >>

Billing tools vendor Chargify named Lance Walley as 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 site.

Parting Thought

“He who leaves nothing to chance will do few things poorly, but he will do few things.”
— Edward F. Halifax

Courtesy of Malcolm Kusher, The Kushner Group



Cognizant is a global provider of IT, consulting and business process outsourcing services. Cognizant delivers a better Return on Outsourcing via our single-minded passion to making our customers’ businesses stronger.
Find out more.


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