5 Benefits of Saasifying Your Software Products
Cloud is becoming the new model for business enterprises and SaaSification is the new mantra for success. Gartner defines software as a service (SaaS) as software that is owned, delivered and managed remotely by one or more providers. The provider delivers software based on one set of common code and data definitions that is consumed in a one-to-many model by all contracted customers at any time on a pay-for-use basis or as a subscription based on use metrics.
The old theory of run and install is rapidly getting replaced by login and access. Today, SaaSification is the talk of the town amongst the ISV clusters as well as the big software companies. It has opened up a wide range of opportunities for software vendors and allows quite a number of interesting propositions, not the least the shortcut to famedom in the Silicon valley. The rapid growth of the SaaS based companies is essentially due to the change in the way customers focus on the software product delivery.
A full suite of outcome oriented tools are dominating themarketplace. Popular examples include, Salesforce.com (CRM), HubSpot (Marketing Automation), LinkedIn (SocialMedia), Netsuite (Integrated Business Management), and several others. Here are top five benefits of SaaSifying your software product:
Faster Growth – SaaS companies are growing much faster than product companies. SaaS solutions are likely to have high adoption rates. The new model of acquiring customer through app stores, self-sign-up and open source software, combined with high performing inside sales teams has created an enormously attractive growth engine. This will further shoot SaaS companies to dominate every existing set of software and newer segments as well. Rapid ROI – The best part of SaaSification is once you have the operating structure and delivery in place, your margin will go up with the addition of every new customer. However, more than the market demand driving growth, the operational aspects of the SaaSification keeps contributing to the growth. Every new customer offers an incremental revenue adding more growth to your company at minimal increment in cost. Effective Product Marketing Technique – The concept of trial to full version is soon getting replaced by freemium to premium services. The focus is on providing a clear value proposition and conversion path in the free or trial version of software. From here, the customer first in-app experiences strikingly leads them to the features they will find most valuable to them and their business Reduced Time to Market – Speed to market is critical in today’s era. With the power of SaaSification your innovations reach your customers at a lightning speed. All in service of helping you get the best products to the market first Retain The Product DNA – SaaSification does not change your product’s DNA. You can effectively deploy your application without major modifications, the application is run in its original environment itself. Furthermore, you can also add useful business logic to service different class of users/customers to expand your market reach. In a nutshell, the ISV or business software houses of today and tomorrow will continue to emulate cloud-native models like Salesforce.com, using SaaSification as a key to build and operate quickly and efficiently, and partnering with providers to package business outcomes at scale. With the introduction of features like true multitenant architectures, customisation and API integrations you can scale indefinitely to meet your customer’s demand. No doubt, SaaSification is ready to take the software world by storm.