The impact of SaaS and cloud evolution on ISVs

In the view of Progress Vice President Colleen Smith, from the recent evolution of cloud computing to the rise of http://www.aliyun.com/zixun/aggregation/13763.html "> Software as a service (SaaS), Technological and business change will bring changes to service providers, developers and users, but it also creates opportunities for independent software Developers (ISVs).

The evolution of cloud computing

The SaaS business model enables ISVs to reduce costs and better access to new markets to launch and run a future SaaS-oriented cloud business. But the existing in-house deployed application translates into reliable, scalable software that can support multiple customers at the same time and is a small thing, but it is still working harder to bring changes to the business. In essence, the delivery method has changed, so the business model for selling SaaS and cloud services needs to change.

A new business model, and their clients are responsible.

While traditional software vendors are focused on the functionality of their client applications and are responsible for managing and managing the software running in their respective environments. On the other hand, cloud service providers need to be equally concerned about the business and management environment to support all customers.

SaaS has existed long enough for most independent software developers to understand what the benefits of a scalable, flexible, multi-tenant computing platform, as well as the risks and challenges such as specification, security, and performance, have been brought to the attention of the basic SaaS. The right SaaS/Cloud is given to partners that will help maximize these advantages and lead to challenges.

For independent software developers to take full advantage of these benefits, they are able to gain economies of scale while enabling customers to simply pay for the applications they use to provide to multiple customers, and when needed, they also have the ability to gain computing power, simply by paying what they need and using the deployment platform correctly, which can be necessary in any cloud environment (Public or private). In addition, cloud computing can increase market and productivity, enabling ISVs to build and deploy new cloud applications and services very quickly.

New business model

This transformation takes place throughout the software industry, bringing rapid changes in technology, new innovative features, and all the time ahead. The introduction of a new computing paradigm (cloud), combined with budget cuts, means that for most customers more, long-term authorization is unattractive.

As a result, a new way of selling means that independent software vendors have to change their pricing and market solutions. Similarly, from a traditional local software business to a SaaS business, an established ISV can be given. Causing great damage, a key change to the business model is to disengage from this traditional licensing model, revenue peaks and troughs, a more stable yield stream.

This change can also help reduce the customer churn rate, without regular "big cost" critical moments with traditional license contracts. However, this can also increase the difficulty of sales, as these one-off periodic and predictable monthly payments break this cycle.

New requirements

From a delivery point of view, the business requirements of this initiative for the changes brought about by SaaS and cloud computing. As a result, the focus needs to be shifted when SaaS applications are developed. With respect to traditional patterns of maintenance and upgrades, independent software developers (ISVs) provide services, and where SLAs need to be maintained on an ongoing basis, otherwise they will face the possibility of customers being able to go elsewhere in the habit. As users grow, independent software developers also need to consider scalability, which is the key to growth and fundamental to maintaining service quality.

New pay model

One of the biggest effects of this shift is in business and paying sales staff. The sales compensation model of the Payment Commission for the sale of bulk trading crashes when there is no large contract for customers to sign or renew the negotiations, different ISVs are experimenting with alternative compensation models, so far it seems to depend on the company or industry, as well as the type of service delivery.

Typical SaaS pricing also means that another important change should be how to consider your own changes in the business organization. Traditionally, sellers and customers looking at an ISV's fourth-quarter earnings are very important because this is when they try to lower the local account and raise the number of the year. With the SaaS business model, it is more about the length of the word contract, it is about constantly pushing the new business and it is about increasing the volume of the business. The SaaS model, especially when the cloud delivery platform also supports an ISV to see what happens to the market and quickly respond to changing market environments, as well as to seek a new geography-but this again needs to change how sales and marketing are perceived and executed.

A New Partnership

This level of change may be a daunting prospect for any ISV and emphasizes the need for a partner that can not only provide the technical basis to assist in this transition but also change the relevant business to provide advice and support.

When moving to a cloud-based proposition, independent software developers (ISVs) should look with other partners that will provide all the benefits of multi-tenant, scalability, security, data encryption, etc., allowing them to provide the best and safest and reliable cloud-based applications possible. The best partners are likely to provide all of this and work with them to shape new strategies for the business. This includes the sales strategy for the sales team, and how to develop and sell customers through the use of web pages and social media.

(Responsible editor: The good of the Legacy)