Comments on: On-Demand Services Face Escalating Challenges In Today’s Economic Crisis http://www.thinkstrategies.com/blog/2008/11/on-demand-services-face-escalating.html This blog examines the business implications of IT service trends ranging from software-as-a-service (SaaS) and cloud computing to managed services and other on-demand services. Wed, 03 Nov 2010 22:38:58 -0400 hourly 1 By: THINK IT Services » Blog Archive » Will Salesforce.com’s Outage Derail the SaaS Market? http://www.thinkstrategies.com/blog/2008/11/on-demand-services-face-escalating.html/comment-page-1#comment-184 THINK IT Services » Blog Archive » Will Salesforce.com’s Outage Derail the SaaS Market? Sat, 10 Jan 2009 16:42:00 +0000 http://www.thinkstrategies.com/blog/2008/11/on-demand-services-face-escalating-challenges-in-todays-economic-crisis.html#comment-184 [...] believe the long-term prospects for SaaS and cloud computing remain strong, there are plenty of short-term challenges facing SaaS and cloud computing vendors in today’s tough economic [...] [...] believe the long-term prospects for SaaS and cloud computing remain strong, there are plenty of short-term challenges facing SaaS and cloud computing vendors in today’s tough economic [...]

]]> By: THINK IT Services » Blog Archive » On-Demand Services Market Predictions for 2009 http://www.thinkstrategies.com/blog/2008/11/on-demand-services-face-escalating.html/comment-page-1#comment-176 THINK IT Services » Blog Archive » On-Demand Services Market Predictions for 2009 Thu, 01 Jan 2009 22:17:28 +0000 http://www.thinkstrategies.com/blog/2008/11/on-demand-services-face-escalating-challenges-in-todays-economic-crisis.html#comment-176 [...] Short-Term Slowdown, Long-Term Growth - Although SaaS proved to be recession proof for most of 2008 as I predicted, SaaS vendors have not been able to avoid the speed-bump caused by the deepening economic crisis. IT/business decision-makers in organizations have been instructed to put a hold on all procurements until the economic uncertainty subsides. They are especially hesitant to make acquire solutions from new vendors who they believe won’t survive the current crisis. However, when the dust settles, organizations of all sizes will adopt SaaS and cloud computing services because the business case for these web-based alternatives is too strong and compelling. Click here to see my video recording on this topic. [...] [...] Short-Term Slowdown, Long-Term Growth - Although SaaS proved to be recession proof for most of 2008 as I predicted, SaaS vendors have not been able to avoid the speed-bump caused by the deepening economic crisis. IT/business decision-makers in organizations have been instructed to put a hold on all procurements until the economic uncertainty subsides. They are especially hesitant to make acquire solutions from new vendors who they believe won’t survive the current crisis. However, when the dust settles, organizations of all sizes will adopt SaaS and cloud computing services because the business case for these web-based alternatives is too strong and compelling. Click here to see my video recording on this topic. [...]

]]> By: steve http://www.thinkstrategies.com/blog/2008/11/on-demand-services-face-escalating.html/comment-page-1#comment-165 steve Mon, 01 Dec 2008 22:12:00 +0000 http://www.thinkstrategies.com/blog/2008/11/on-demand-services-face-escalating-challenges-in-todays-economic-crisis.html#comment-165 In a "Grow or Die" world that's becoming increasingly crowded with multiple SaaS offerings per category, it's difficult to find the right balance between investing in a direct sales force vs. taking a go-slow approach. One way for SaaS providers to build marketshare without bleeding cash up-front is to leverage a reseller channel.<br/><br/>But building a channel takes time, particularly one that has experience selling subscription-based services with an operations and support infrastructure to back them up. A way to bootstrap this effort is to distribute through a wholesaler or SaaS aggregator (like Jamcracker) who has access to existing SaaS resellers. This is the 'SaaS' version of how traditional packaged software wholesalers have bridged SW ISVs with the VAR channel.<br/><br/>If interested in seeing the types of SaaS ISVs who are augmenting their growth with a channel model, visit http://www.servicesondemand.net<br/><br/>Best regards,<br/>Steve In a “Grow or Die” world that’s becoming increasingly crowded with multiple SaaS offerings per category, it’s difficult to find the right balance between investing in a direct sales force vs. taking a go-slow approach. One way for SaaS providers to build marketshare without bleeding cash up-front is to leverage a reseller channel.

But building a channel takes time, particularly one that has experience selling subscription-based services with an operations and support infrastructure to back them up. A way to bootstrap this effort is to distribute through a wholesaler or SaaS aggregator (like Jamcracker) who has access to existing SaaS resellers. This is the ‘SaaS’ version of how traditional packaged software wholesalers have bridged SW ISVs with the VAR channel.

If interested in seeing the types of SaaS ISVs who are augmenting their growth with a channel model, visit http://www.servicesondemand.net

Best regards,
Steve

]]> By: Eric Harrington http://www.thinkstrategies.com/blog/2008/11/on-demand-services-face-escalating.html/comment-page-1#comment-163 Eric Harrington Mon, 24 Nov 2008 20:04:00 +0000 http://www.thinkstrategies.com/blog/2008/11/on-demand-services-face-escalating-challenges-in-todays-economic-crisis.html#comment-163 A Tale of two cities indeed - maybe three cities! <br/><br/>Based on my research, there are many, many end users/companies that have no idea what SaaS is. <br/><br/>Not only is it a challenge to promote your SaaS solution, but more often than not, the conversation leads into hosted Vs on-site. Security is usually the trigger for this.<br/><br/>Once I get beyond the security concerns, most folks get it.<br/><br/>So we are basically selling two things. Our solution and SaaS. It will get easier over time however.<br/><br/>Eric Harrington<br/>Muroc Systems, Inc.<br/>www.murocsystems.com<br/>www.approvaltrack.com<br/>www.teamsupport.com A Tale of two cities indeed – maybe three cities!

Based on my research, there are many, many end users/companies that have no idea what SaaS is.

Not only is it a challenge to promote your SaaS solution, but more often than not, the conversation leads into hosted Vs on-site. Security is usually the trigger for this.

Once I get beyond the security concerns, most folks get it.

So we are basically selling two things. Our solution and SaaS. It will get easier over time however.

Eric Harrington
Muroc Systems, Inc.
http://www.murocsystems.com
http://www.approvaltrack.com
http://www.teamsupport.com

]]> By: Nick http://www.thinkstrategies.com/blog/2008/11/on-demand-services-face-escalating.html/comment-page-1#comment-162 Nick Mon, 24 Nov 2008 05:35:00 +0000 http://www.thinkstrategies.com/blog/2008/11/on-demand-services-face-escalating-challenges-in-todays-economic-crisis.html#comment-162 Indeed challenges are rising for all industries today. As for as SaaS is concerned the zero upfront cost and ability to discontinue the service at any time make it even more attractive for customers. And SaaS applications can be up and running within minutes. Both SaaS and open source should do better than other categories during the recession because of that. <br/><br/>As for the next level, I think the biggest development of the year is the advent of SaaS as a platform ("the cloud operating system"), that enables developers to build apps on top of cloud services. Indeed challenges are rising for all industries today. As for as SaaS is concerned the zero upfront cost and ability to discontinue the service at any time make it even more attractive for customers. And SaaS applications can be up and running within minutes. Both SaaS and open source should do better than other categories during the recession because of that.

As for the next level, I think the biggest development of the year is the advent of SaaS as a platform (“the cloud operating system”), that enables developers to build apps on top of cloud services.

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