Wednesday, February 9, 2011

What SaaS really is?

This was a recent topic in a LinkedIn group focused on Software-as-a Service. We in the technology industry are interesting creatures. The range of responses to the original post ran the gamut–Some pointed to architectural details like multi-tenancy, or the delivery of the applications from a centralized server environment via the web. Others focused on the benefits of SaaS–Scaleability, pay-as-you-go, or seamless updates and patches. Many responses were quite strongly written, as if their answer were the definitive one, and that all the other responders were naive, misinformed, or even downright stupid.

In reality, most, if not all responses were correct in that SaaS has many elements–And depending on whether you work on the architectural or sales and training side of things, you may feel some are more important than others.

I’m a sales and change management guy, so don’t ask me to debate what makes SaaS SaaS from an architectural standpoint. My initial response is that SaaS is multi-tenant software delivered over the web, often in a subscription-based model. But after reading this thread, and some posts from some people clearly much more intelligent than I, I can’t say I’m 100% confident on that point anymore.

But what’s in a name anyway? A company I used to work for was selling SaaS long before it became one of the hottest buzz-words in Information Technology and CRM. They didn’t (and  we still don’t, interestingly enough) call it SaaS–But it is.

Why didn’t we refer to our subscription-based, multi-tenant application, delivered over the web SaaS? Because the term means absolutely nothing in the minds of our target clients. Our application–And SaaS in generral– is nothing if it doesn’t solve a problem. Whether it’s CRM, PRM, CMS, POS or accounting software, it’s not the technology that matters, it’s the benefits that the technology creates.

How? Again, by providing clients seamless access to their application (and vast amounts of data formerly siloed in multiple locations and machines) anywhere they have web access. By freeing organizations from the expense and complexity of maintaining their own hardware. By allowing clients to basically finance their software investments over time through a subscription-based model. And ultimately, by putting better information in the hands of the right people, when they need it.

Don’t get too caught up in the technology, because in most industries your client doesn’t either. They don’t care if your application is multi-tenant,  runs on a virtualized server, or has a flux capacitor.

What SaaS Really Is?

It’s simply a tool. A very powerful tool with some extremely compelling benefits. Like is always the case in sales (and we’re all selling, like it or not), focus on the benefits, not the features; show your client how SaaS will help their business. Simple right?

No comments:

Post a Comment