Recently, I was asked what was the value prop for SaaS in the enterprise. The exact questions was "what is the elevator pitch for SaaS in the enterprise".

As with all elevator pitches there is a degree of simplification in the answer but here is my take:

-----------

3 complementary benefits (each is sufficient on its own):

  • Higher return on assets (ROA): Optimization of sourcing strategy resulting in cost savings. In other words, I already have a capability (e.g. CRM) in house, but now I can source it more cheaply from the cloud.
  • Shorter time to value: Opportunity to leverage software assets faster by shunting the deployment phase.
  • Higher agility: Opportunity to leverage software that was not possible for me to leverage before due to lack of specific skill sets in house, internal policies or in house regulatory compliance etc. In other words, SaaS offers me the opportunity to tap into a capability I was not able to have before. This results in the opportunity to tap into a larger software asset pool enabling better business – IT alignment.

-----------

You will need about 8 floors for this elevator pitch... :)