I retired from personal blogging in July 2008.
But you can find me over at http://blog.xero.com.
One of the things I learnt from being inside a large US software company was the importance of Sales Operations. The systems and processes for selling your solution.
Under a Software as a Service (SaaS) model, SalesOps is even more important as many of the scale inhibiters flow from customer acquisition and provisioning.
SalesOps includes things like:
- Driving leads from the web to sales and partners
- Online Demo administration
- Sales pipeline management
- Provisioning
- Payments
- Customer Care
- Sales reporting
You would expect most analysis, design and development energy for SaaS vendors is in their application, but you quickly find out a significant investment also has to be made in Operational Support Systems (OSS). As part of organizational design for SaaS it’s therefore important to budget for SalesOps.
SalesOp’s touches a lot of systems (like the app, CRM, Accounting, Marketing WebSite) and may use a lot of components (like LiveMeeting, Flash and Email Gateways).
You can also see a new sub profession developing. SalesOps people need to have great analysis skills, understand and challenge the sales process as well as keeping in touch with technology developments to keep those leads coming in. It’s nice step for Business Analysts with an interest in technology and sales.
As vendors realize that all the SaaS providers are rolling their own OSS’s we’ll probably see a market created here as well.
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Very interesting. I would actually have said that the first 3 on your list fall under the responsibility of Marketing :) Maybe that is because I am a greedy marketing person who likes to get involved too much?
Hi Rod
Given your background and the rumours around up coming ventures I am very interested in hearing your opinion on a couple of things with regards to SaaS.
Firstly, what’s the difference between SaaS now and ASP seven years ago?? My assumptions are that now the Software vendors are driving this in addition to the Telco’s and ISPs and there is greater BB adoption in the SME segment. When ASP came along I believe the Software vendors had no vested interest in supporting the initiative and therefore the applications never supported the business model or the delivery platform i.e. congested IP networks and with a poor user experience it never took off. IN addition I think a lot of the early ASPs had very poor business models with regards to what, how and when to charge for VAS.
The thing im not sure on is that this still sounds very supply driven.
It looks a bit like the software vendors looking to avoid piracy issues and Telco’s looking to replace declining revenue streams with apps on tap. What is the compelling event that will drive uptake in the SME segment? Is it around continuous version updates immediately and complexity outsourcing or is it something else? Or is demand side inevitable once media centre and other technology becomes prolific in the home?
My other query is around what the business model looks like for the software vendor and the telco or ICT company.
Will SaaS work for a software vendor where their support costs will sky rocket due to monthly billing, customer care, provisioning etc etc, or will software vendors look to partner with SaaS aggregators to realise cost synergies in billing, service, distribution?? In addition, when the Telcos try to become aggregators of SaaS will they ever be able to cost effectively build and support an apps on taps delivery platform that allows them to position the pricing within range of do it yourself with a one off purchase hosted on a SMB server??
I mentioned I would love to know your thoughts when ever you have a spare moment.
Regards
Rob
The compelling value propositions for SaaS are simplicity, timing and cashflow.
We’ve got over 200 staff and we’ve adopted SaaS big-time in our business, with all our internal business apps except finance (we’re still waiting for that sales call, Rod!). We use OpenAir (projects, resources, invoicing), Salesforce (CRM) and Sonar6(HR, and a Kiwi solution). The apps are comprehensive, need no complex infrastructure or operational support, and you’re up and running real fast, without big capex and project outlays. You still need to manage the business implementation, and provide internal administrative support, but nothing like as much as the inhouse or old ASP models. And as we’re now experts, we can offer SaaS implementation and integration to our clients.
You can always argue for inhouse based on marginal costs, but when you look at the whole IT spend, SaaS should work out cheaper, quicker, simpler - and speed and simplicity have value too.
Hey Jim, wow, nice to hear it from the demand side. I assume you also need the capability to integrate the various SaaS apps with your legacy capability?
Assuming the CVP has widespread relevance then I assume we will see Teleco’s, MS, and other ICT’s try to position themselves as the best of breed SaaS aggregator with integration capability while positioning with vendors, such as Sonar6, that they can reach a bigger audience without the support and fulfillment hassles. As a user whats your thought on aggregator model? (if you have a spare two minutes, and obviously im coming from a potential aggregator perspective)
Cheers
Rob
As I’m a potential integrator/aggregator, I don’t want to give away too many secrets, but one obvious need is integration of apps, data, id, etc, to present a single point of entry for the business user. Managing disparate apps is messy, and leads to multiple data entry and data mismatch, etc. SaaS doesn’t solve those problems, but the model lends itself to a logical development, what I’m calling for now SaaS mashups (you saw it here first folks!). Salesforce probably points the way with its AppExchange, but the model is far from mature.
Who’ll drive those businesses? Initially, local integrators who can provide business-level support. Ultimately, the major SaaS providers like Salesforce (having acquired the pioneers and each other). I don’t really see it as a telco play, but who knows. It’s anybody’s game right now, and that means opportunities.
Always happy to talk in person, via Fronde.
Rod- you’re right. I do need a blog.