8 recommendations for ISVs to implement SaaS

At this stage, there are many articles about the difficulties and challenges faced by enterprise software vendors in attempting to implement SaaS (software as a service). Frank Gillett, vice president of Frank Guillette Research, a market researcher, has labeled all major companies under their own products, and has said with contempt that these companies are only innovating in marketing, others are nothing new, and this behavior we call " Cloud washing "(literally:" Wash the Cloud "), still, there are some independent software developers really cater to the trend of cloud computing. is not particularly perfect right now, and if you want to have an edge in the cloud computing world, here are eight points to consider

1. SaaS is not a product

Many software executives assume that a cloud-computing strategy is implemented by developing a service similar to the Amazon Machine Image (AMI), followed by a subscription pricing model. Both private and public cloud services can benefit from cost savings. But the real SaaS solution requires not only a change in business models, but also changes in software design, development, and release patterns. As one insider points out: "SaaS is a concept, not a product." ”

2. The implementation of commitments is very important

As everyone knows, the success of a SaaS company like Salesforce.com requires a lot of venture capital support to attract users in the marketplace. SaaS requires a focus on the business, necessary resources, and enough time to grow. Enterprise software companies are accustomed to the current competitive pressures, and now need commitments from top to bottom, which is the key to ensuring the long-term success of SaaS services.

3. Set up team motivation model as early as possible

If you want a traditional enterprise software sales team to sell a new SaaS solution, you need to first develop an appropriate incentive model. Companies should not overlook employees ' concerns about staffing, but at the same time they should not be allowed to retreat, thinking that if new business is not progressing smoothly, it can be recalled. And some software companies make a single SaaS business, only to sales Reps commission, sales managers do not. The results are conceivable. Incentive system can affect sales behavior, so enterprises should develop appropriate incentive model and carry out appropriate training as soon as possible. Also make sure that the SaaS solution meets the needs of different buyers or market segments.

4. Encourage SaaS business independence

It's a good idea to provide "hatching" for a new SaaS business. Build an experienced team that gives them autonomy. From a marketing point of view, the new promotional channels may be more appropriate, such as social media, new brands, independent sites and so on. From the sales point of view, should enter the 2.0 era of sales, by competent people to lead an internal team may be more appropriate approach. And while advocating independence, it is important to ensure that the underlying technologies of the SaaS business take advantage of the company's core technologies and interoperate with other products to ensure that proven, scalable, reliable, and high-performance technologies can be a selling point.

5. Embracing multi-tenant (multitenancy) and agile development

Enterprises that invest in SaaS solutions typically expect new services to be released every three or four months, and new features will be published iteratively. Multi-tenant means that you and your customers will benefit from the cost savings and scale benefits of sharing infrastructure facilities, and that you can track both the actual adoption rate and usage of the service and provide seamless updates to users.

6, establish the right partnership

In the beginning, the business always announces a series of partnerships to build momentum for its new SaaS product or service. If you only build some meaningful, mutually beneficial key partnerships, this may be better, but also can give customers real value. For example, when considering a partner, Salesfource.com often considers whether the partner will benefit its own AppExchange, SaaS, and PAAs (Platform-service) customer base. You want to make sure that you can provide value to both customers, and that your value proposition is consistent with the goals of the partner sales (or marketing) department.

7, understand the indicators

Important indicators for SaaS include annual contract value (ACV), total contract value (TCV), and monthly recurring revenue (MRR), but knowing these are only the beginning. Always analyze your SaaS business and take the time to consider what is the right sales, marketing strategy, customer satisfaction, and operational metrics. Communicate these metrics early and often with other management and develop monthly and quarterly goals for the SaaS team.

8, win in the customer

In the SaaS world, winning customers means everything. Unlike the traditional subscription pricing model, and the cost of customers spending on SaaS services is often counted as operating expenses rather than capital expenditure, this changes the nature of customer/vendor relationships. Build a successful customer team that is responsible for all matters related to the customer, including securing new customers, renewing customer fees, building community websites, closely monitoring customer usage patterns, and ensuring that everyone on the SaaS team listens to the customer's words and responds in a timely manner.

Note: The writer is vice president of Informatica product marketing Darren Cunningham

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