Software as a service (SaaS) has huge profit potential for cloud providers, but finding success in this highly competitive market requires finesse. Are you equipped to make it in the SaaS market, or are you destined to fall short?
Although SaaS delivers the highest value to customers, compared to infrastructure as a service and platform as a service, providers can't expect to be successful in the SaaS market by going in blind. There are a lot of factors to consider when launching a SaaS portfolio -- including sales techniques, partnership opportunities, financial issues, technical considerations, customer expectations and more.
The SaaS business model can be a key element to a cloud provider's portfolio, but it needs to be executed right. Our SaaS guide for cloud providers offers a collection of tips and best practices to help you get started in this market.
1Building your SaaS business-
Business model development
Cloud providers often struggle to pinpoint which market to target when launching new cloud services, and not all have the in-house expertise required for launching robust SaaS offerings. Finding the right software developer partners can make or break a SaaS venture. Additionally, it's important to have the right DevOps tools and principles in place, so the task of building and sustaining SaaS applications doesn't turn into a nightmare. In this first part of the guide, you'll get insight into the markets to pursue and how to build cloud services that deliver value to your targeted customers.
In this tip, Tom Nolle of CIMI Corp. gives expert advice on what path providers should follow when developing an optimal SaaS business model strategy, and discusses identifying and recruiting the right partners. Continue Reading
Is recruiting software developer partners or buying a software development company the best way to successfully launch a SaaS venture? In this tip, Nolle addresses the pros and cons of such relationships. He also delves into why it is essential for providers to consider the partnership route in order to address and understand the needs of small and medium-sized businesses and large enterprises. Continue Reading
Although it is true that the SaaS business model has the potential to be the most profitable of the three main cloud service types, it doesn't mean that providers should start selling SaaS without the proper planning and support. Without the use of DevOps tools and principles, building and sustaining SaaS applications can quickly create an operational horror show for providers. In this tip, Nolle discusses two possible models for DevOps tools and the benefits of each. Continue Reading
Targeting vertical markets with SaaS has proven more profitable than offering standard or horizontal cloud services. Learn what's driving the success of industry-specific SaaS applications, as well as the trends among cloud service providers. Continue Reading
The pitfalls of selling SaaS
As cloud providers overcome the challenges of developing a SaaS business model, they also must steer clear of a range of pitfalls. For starters, if SaaS vendors aren't careful, SaaS has potential to strain relationships with channel partners, as the relationships between vendors and partners in the cloud era are still relatively immature. Organizations that deploy SaaS applications can run into issues, as well, such as security challenges. In this section of the guide, we provide advice into how to avoid sparking channel conflict and how to deploy SaaS successfully.
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The end users' take on SaaS
Now that you have the tips and tools for beginning your SaaS business, learn about the benefits and drawbacks of SaaS from the end users' perspective. While SaaS has had a positive impact on the enterprise, freeing up precious resources, it has also caused various problems for IT. For many organizations, moving to a SaaS model means making the integration of SaaS with on-premises apps an ongoing priority. And, as recent studies have shown, security remains a major concern within SaaS environments. Here, we provide a variety of articles to help you gain a clearer understanding of what SaaS means to your customers.
SaaS-related terms to know
- cloud application
- Infrastructure as a Service (IaaS)
- native cloud application (NCA)
- open API
- Platform as a Service (PaaS)
- Software as a Service BI (SaaS BI)