SaaS Business Model Ted Keating / M.D. ITs Logical

ON PREMISEHOSTED PUBLIC SaaS PaaS IaaS The Business Model

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

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

Normal Partner Model

SaaS Model

Services to Survive –Initial Sale Services Proof of Concept … Build - Migration Support, Training, Security –Other Service Growth Areas Integration Managed Services –… Outsourcing?

Service Productivity –Labour cost pressure - CASS –Structure teams Efficiency – for P&L Measure –Automate – Cloud? Ticketing / Knowledge Systems Out-of-Town resources

Cash needs strict management –Core Problem Incentives Discounts Services –Negotiate –Capital?

Key Performance Indicators –Service Revenue –Cash –Churn –Monthly Recurrent Revenue (Not Sales /GP)

The keys to SaaS success… –1 - Sales To suit SaaS –2 - Services to Survive –3 - Service Cost / Efficiency –4 - Cash is core –5 – Measure - KPIs - MRR, Churn, Service Rev, Cash