Secret to SaaS Success

In my many meetings this last week I have been asked a surprising question over and over that seems to mystify those with whom I share my answer. It made me wonder if the answer was somehow either too simplistic or, perhaps, too deep for most to comprehend.

"What is your plan?" they ask. 
"Sell and support our customers," I answer.
"But with the economic bad news and the tough times you've been through, there has to be more to it," they retort.
"But with customers that are happy and pay their bills on time, all other problems are manageable," I respond.
It's not rocket science. The key is to provide a solution that your customers find value in and are willing to pay for that value. Give the customer what they want and solve a problem and you will succeed.

So what is the key for us? 
As you move to make your application or technology available online, I believe that this one question is more important than any other. "Who is going to pay for it?" And then series of follow-up questions. "What is the value that they get? Why do they want it? And what does your business model look like?"

What about Web app distribution benefits?
There are a few obvious problems that can be solved just by moving your app to the Web. 

App distribution via the Web
Sometimes being able to distribute an application over the Web vs conventional deployments adds value for the software manufacturers and technology providers. They can cut costs in delivery, installation, customization and productization so they can afford to cut their price points or enter new markets. This is a competitive advantage if done well.

The second benefit is about the collaborative nature of the Web. 

App collaboration, customization, integration and more
Once an application is distributed via the Web a new possibility is created for evolution in the application. With Etelos, we focus on suites of applications, developer tool kits and add-on solutions that make that application even more valuable now that it is online and distributed more easily.

Conventional software deployments are still struggling with the connected nature that is inherent in the Web. With the right solution and platform underneath the newly distributed Web application, new things are possible.

For more on this idea, check out this information on the Etelos SaaS Marketplace Platform.

Many of these thoughts I characterize under "now what?" While there are many that think just being online is the answer, it's not sufficient alone to make it a viable business. You have to move on to distribution.

Distribution of your App
Okay, I am double dipping on the meaning of the word. Distribution is not just the means of delivery via the Web; it's also the ability to distribute your application without the conventional boundaries. Usually talked about under the subject of increasing sales or channel development, the Web app has business model transformational possibilities that add new dimensions to what you can do to sell your app.

For more on this one; check out what we call the Etelos SaaS Syndication Platform.

Summing it all up
Yeah, I guess it really is simple. When you understand that the solutions and benefits you are providing meet the needs of your customers, they become partners. And when your partners are vested in your success; you have exciting opportunities ahead. 

Now, back to work.



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