The SaaS Channel: A Dysfunction in Need of a Fix
The rush to SaaS (Software as a Service) business models — by traditional enterprise software companies and start-ups alike — has been revolutionary in both the speed of the shift and the impact it is having on technology. The first promise to buyers is a move toward simple monthly subscription pricing and away from complex server/seat/processor pricing with its associated costly maintenance fees. The second promise (perhaps even more appealing) is the idea of self-provisioning software, which removes the need to involve costly and often troublesome systems integrators, consultants, and even in-house IT. On the other side, technology vendors find regular monthly and perpetual income attractive, and SaaS offerings can open doors to new customers.
But both the buyer and seller sides of the SaaS equation can be disappointed with what actually transpires, writes Alan Pelz-Sharpe. In this report, he considers where the two initial promises fall short and, more importantly, what both vendors and buyers alike can do to avoid trouble and disappointment. Hint: service providers play a key role. Although provisioning software may be easy, getting that same software to deliver business value to buyers is much more complex and usually requires hand holding and guidance from a trusted partner.Download now