Making Money with SaaS SIIA Event
Transcript of Making Money with SaaS SIIA Event
Making Money with SaaS
SIIA EventHosted by Progress Software
(SaaS)Software as a Service
Building a compelling Go-to-Market Strategy
Colleen SmithManaging Director, Software as a
ServiceApril 2009
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Global Presence
25 Years of Experience
Progress Software Snapshot
Progress community over $5B total annual revenue
3 Million users worldwide
2,000 Partners deliver 6,000 unique business applications in manufacturing, distribution, financial services, retail, healthcare and other markets
VAR Business 5-star rating for our partner program
Each year PSC and its Application Partners add 600,000 new users.
60% of Fortune 500 manufacturers use Progress technology
Progress serves the leaders in many markets-4 out of 5 of the world’s largest electronics-3 out of 4 of the world’s largest medical-4 out of 5 of the world’s largest beverage-2 out of 4 of world's largest food-16 out of 25 of the world’s largest auto suppliers
Over 200 SaaS Providers using PSC technologies today to deploy/manage/integrate SaaS applications
deployed in 135 countries worldwide 24 countries deploying SaaS apps
NASDAQ: PRGS Headquarters: Bedford,
MA Customer Sites: Over
110,000 Offices: 90 Worldwide Employees: 2,000+ Revenues ‘08: $504
million
28 YEARS OF EXPERIENCE CUSTOMER and PARTNER BASE
GLOBAL PRESENCE
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WW Spend On Software as a Service2008-2012
SaaS Opportunity growing to
$17B by 2012
Source: IDC SaaS Forecast July, 2008
($B)
“A healthy channel will be critical to
the successful long-term growth of SaaS and cloud
computing providers.”
Saugatuck Technology, October 2008
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Why the need for Channels and Ecosystems?
• The most aggressive adopters of SaaS tend to be low-to-midsized businesses. This segment has long been the sweet spot for channel partners.
• Channel partners already have strong relationships with business decision-makers, but the dialogue is changing.
• Many smaller businesses will value service providers who can combine best-of-breed SaaS solutions together into de facto suites and create customer-specific extensions to meet the specific requirements of their business.
• Executives still may look first to their trusted service providers, with whom they have developed relationships.
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• R&D focus on service delivery methodologies rather than product features.
• Marketing focus on packaging and pricing services/solutions, not technology/products.
• Sales focus on selling economic business value not product features.
• Customer support focus on provisioning, billing and automated, remote management.
Changes to your Business
Requires rethinking your business model – but also requires looking at new “go to market” strategies
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Addressing Key Questions…to be successful
• What is my go to market strategy and value proposition?
• Who are the best providers to partner with, not only in terms of solution and technology, but also in terms of partner-friendly policies such as SLAs and channel conflict avoidance?
• What is the best way to compete against new, non-traditional channel partner entrants?
• In what way can I participate in a SaaS ecosystem?
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So what does that mean for YOU?
Think about other ways to bring your service offerings to market….
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Assess new and existing
relationships
Reaching new
Buyers and
Influencers
New Geographi
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Key Considerations:Key Considerations: Key Considerations:
>Do you belong to an ecosystem?
>How can you exploit that relationship?
>Are there other ecosystems that you can participate within?
>Who are the major players in your market?
>Can you extend your business to new geography?
>Are your current markets bound by geography?
>Who are the players in that new geography and how could you best work with them?
> Is there already an established organization that complements your offering?
> Look at alternative channel options…customers, service providers, BPOs, telco’s, etc.
> Look at those who can add value to your service or those that you can add value to their service
> “White Label” opportunities may exist….
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New Business Partner Opportunities
• Deep knowledge in functional software area and/or industry
• Focus on business process optimization
• Strong potential for micro-vertical application development (janitorial services, poultry farming, insurance claims, etc.)
• Non-IT companies with established practice area such as banks, law firms, marketing/travel agencies…
• SaaS providers look to this type of "alternative" channel where "customer-turns-partner“
• Main value add is access to customers and domain-specific knowledge
Business Domain Specialist Business Service Providers
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Summary & Conclusions
• Go-to-market planning is critical to your success
• New channel/partner strategies essential
• Opportunity to redefine and expand product portfolio and business value – aggregating benchmark data, new offerings, etc…