saas business model
DESCRIPTION
SaaS Business Model. Ted Keating / M.D. ‘IT’s Logical’. SaaS. The Business Model. PaaS. IaaS. PUBLIC. ON PREMISE. HOSTED. F ive keys issues for SaaS success. Sales construction to suit SaaS Services to Survive Service Costs / Productivity Cash to survive SaaS KPI’s . - PowerPoint PPT PresentationTRANSCRIPT
SaaS Business Model
Ted Keating / M.D. ‘IT’s Logical’
ON PREMISE HOSTED PUBLIC
SaaS
PaaS
IaaS
The Business Model
Five keys issues for SaaS success– Sales construction to suit SaaS– Services to Survive– Service Costs / Productivity– Cash to survive– SaaS KPI’s
Sales construction to suit SaaS– Team Construction
• Customer focus… Security & Reliability• Product life cycle - Tipping point?• Is it the same?• Hunters & Gatherers
– The Rule of 78• Kill off Sales Heroics
– Incentives
Structure yourSales operation to suit a SaaS model
Normal Partner Model
Hardware & Software
VAS & Break n Fix
Margin
SaaS Model
SaaS ProductMargin
Technical Services
Customer Sav-ings
Services to Survive
– Initial Sale Services• Proof of Concept … Build - Migration
Support, Training, Security
– Other Service Growth Areas• Integration • Managed Services
– … Outsourcing?
‘Services’ to survive
Service Productivity– Labour cost pressure - CASS– Structure teams
• Efficiency – for P&L• Measure
– Automate – Cloud?• Ticketing / Knowledge Systems• Out-of-Town resources
Service efficiency will
grow in importance
Cash needs strict management
– Core Problem• Incentives• Discounts• Services
– Negotiate– Capital?
Cash is not only king,
it’s the dictator of success or….
Key Performance Indicators
– Service Revenue– Cash– Churn–Monthly Recurrent Revenue (Not
Sales /GP)
Measure, for success
The keys to SaaS success…
– 1 - Sales To suit SaaS– 2 - Services to Survive– 3 - Service Cost / Efficiency– 4 - Cash is core– 5 – Measure - KPI’s - MRR, Churn,
Service Rev, Cash