SaaS Business Model

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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 Presentation

Transcript of SaaS Business Model

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SaaS Business Model

Ted Keating / M.D. ‘IT’s Logical’

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ON PREMISE HOSTED PUBLIC

SaaS

PaaS

IaaS

The Business Model

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Five keys issues for SaaS success– Sales construction to suit SaaS– Services to Survive– Service Costs / Productivity– Cash to survive– SaaS KPI’s

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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

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Structure yourSales operation to suit a SaaS model

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Normal Partner Model

Hardware & Software

VAS & Break n Fix

Margin

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SaaS Model

SaaS ProductMargin

Technical Services

Customer Sav-ings

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Services to Survive

– Initial Sale Services• Proof of Concept … Build - Migration

Support, Training, Security

– Other Service Growth Areas• Integration • Managed Services

– … Outsourcing?

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‘Services’ to survive

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Service Productivity– Labour cost pressure - CASS– Structure teams

• Efficiency – for P&L• Measure

– Automate – Cloud?• Ticketing / Knowledge Systems• Out-of-Town resources

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Service efficiency will

grow in importance

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Cash needs strict management

– Core Problem• Incentives• Discounts• Services

– Negotiate– Capital?

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Cash is not only king,

it’s the dictator of success or….

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Key Performance Indicators

– Service Revenue– Cash– Churn–Monthly Recurrent Revenue (Not

Sales /GP)

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Measure, for success

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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

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