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on 30 October 2014

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Transcript of SaaS

Software as a Service (SaaS)

What is SaaS?
Who Benefits?
Why Buy it?
Customized Formats
Access to Every Department

Why Offer it?
Customer Satisfaction
Integrated Contact Center for Customers

Why Do Managers Care?
360 Degree View
2014: 9.6 SaaS Solutions on Average
Budget: Tradeoff
Improving the Quality of Service vs. Increase Variety of Service
SaaS vendors forced to satisfy customers or lose revenue

Are the cost savings really there?
Training / Errors
Example: The VP using SFD

Freedom and Flexibility Concerns
Privacy (control of data offsite)
Access… to data … to source code


Latent risks
Vendor Bankruptcy, industry consolidation
Outsourced troubleshooting / customer service

Selling SaaS
#1 concern: how to keep customers happy to maintain revenue stream

1960: Business data hosted for a service fee

1960s - IBM - time-sharing (mainframe computers)

1990s - ASP (Application Service Providers) - application providers host software and charge users for storage of the software (accessed through the Web)

February 2001 - SaaS Acronym adopted

2000s - SaaS hosted software on a provider’s server - software no longer had to be purchased
Measuring Success
SaaS Providers
Kristen A.
Amber B.
Ryan H.   
Jeffrey S.
Bryan S.

SaaS Products By Themselves Won't Enhance Your Contact Center, But Integrated Solutions Will. CRM Magazine [serial online]. October 2014;18(10):33. Available from: Business Source Premier, Ipswich, MA. Accessed October 26, 2014.
Zhang J, Niu B. Dynamic quality decisions of software-as-a-service providers based on customer perception. Electronic Commerce Research & Applications [serial online]. May 2014;13(3):151-163. Available from: Business Source Premier, Ipswich, MA. Accessed October 26, 2014.
Top 10 Software as a Service Companies, http://www.onbile.com/info/top-10-software-as-a-service-saas-companies/
The 5 “Must Have” Metrics for your SaaS Business, https://blog.kissmetrics.com/5-metrics-for-saas/
Corporate/Investor websites: SalesForce, SAP, Oracle, ADP, Ultimate Software, Rally Software, Concur, Marin, NetSuite, Cision/Vocus, Prezi
Lee, S., Park, S., and Lim, G. (2013) Using balanced scorecards for the evaluation of “Software-as-a-service”. Information Management.
Who does that server really serve? https://www.gnu.org/philosophy/who-does-that-server-really-serve.html
Why SaaS is broken https://blitzen.com/blog/why-saas-is-broken/
Software as a Service (SaaS) http://searchcloudcomputing.techtarget.com/definition/Software-as-a-Service
What is SaaS? 10 Frequently Asked Questions About Software as a Service http://blog.softwareadvice.com/articles/enterprise/saas-faqs-1072811/
Purchased SaaS
Balanced Scorecard Approach
Training and down time reduced
Customer service improved (time, quality)
CapEx vs. OpEx
Decrease in CapEx, IT maintenance & training costs

Learning & Growth
Work processes standardized
Increase in knowledge sharing
Are your business needs being met?
Selling SaaS
Recurring revenue streams – sustainability
Key Metrics
New Customers and Customer Acquisition Cost (CAC)
Up-sells and Cross-sells
Churn (% of customers who leave every month)
Software that is provided to a user as a service rather than software that is installed locally on your computer.

Software that does its processing, updating, storing (file saving), etc...on servers owned and operated by another company.

Typically users interact with the software through a web browser user interface.

True SaaS providers use multi-tenant systems that are version'd so that updates are pushed to all users at the same time; however, each user has a customizable instance that isolates their data, security, and performance from other users.
Full transcript