Some interesting facts from yesterday’s SaaS workshop for ISV partners in Edinburgh delivered by Kevin McGirl at Sales Corporation:

·         8/10 fastest growing technology companies are SaaS (www.sandhill.com)

·         Gartner says 25% of all software sales will be SaaS by 2011 and the SaaS market grew 26% last year

·         According to IDC:

o    Worldwide market will be worth $11bn by 2009;

o    How many larger companies are actually purchasing ‘on demand’ solutions? Their SaaS adoption study shows 40% of large companies and 42% of midmarket companies are already doing this;

o    Concern about data security is the factor most frequently cited as discouraging the use of SaaS among firms of most sizes.

·        Software & information Industry Association (SIIA) survey showed that 57% of ISV’s ranked SaaS as “most important” or “very important”.  IT spend was the #1 issue and SaaS was #2 issue.

·         Aberdeen Group: 76% of all companies are considering deploying SaaS apps.   

·         New venture capital is being invested in service models; Over $1bn venture capital is expected to be closed. Read more at www.vcaonline.com

 Making the Transition to SaaS? Three Tips:

1.     Development focus on service delivery methodologies rather than product features

2.     Marketing focus on packaging and pricing services, not technology/products

3.     Sales focus on selling benefits

Want an Instant Return on your SaaS strategy? Think:

1.     Global

2.     Customers for Life

3.     Get the right name! (Think: “Snakes on a Plane”!)

4.     Services not Software

5.     Brand – and rebrand

6.     Create “stickiness”

7.     Mash Ups! (Think: Apple + Nike)

8.     Outsmart don't Outspend (Think: Tom Tom v Navman)

9.     Viral Marketing

10.  Make it easy to find and easy to buy (e.g. free trial)