IMPACT of a SaaS Business Model
Many software vendors are considering whether they should move to a SaaS business model, if they haven't already done so.
But the SaaS model may not be right for everyone.
What is the impact on your customer support and service?
How does this affect your pricing strategy?
There are many things to consider when planning a move to SaaS.
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Making the Switch to a SaaS Business Model
For one thing, as Mike Seckler so succinctly points out in an interview with Phil Wainewright on ebizQ.net, the move to a SaaS model means changing from a software (product) business to a services business: "...Folks misunderstood what was required to deliver software-as-a-service. They thought it was just delivering the same applications they had always built but with a web front-end and with someone hosting the application. But in reality, it required really rethinking the whole business model of software and realizing that you were no longer a software company, you had to become a service business."
Sucessfully delivering a SaaS service requires operational excellence (since the vendor is now also a hosting provider) as well as development and productization skills. Ultimately, you are delivering a customer solution, not just a product. This is a fundamental mindset change.
Tools to Help with the Transition
If you're considering the transition to SaaS for your software, make sure you've done your upfront homework on how that change will impact your business model.
Here is some additional information and tools to make this easier:
- take a look at our section on software business planning.
- download the SaaS business planning package.
- take advantage of our business model review and business planning consulting services.
