To truly succeed as a company in the new Software as a Service / On-Demand ecosystem, SaaS thinking must be embedded in the very DNA of every employee on every level throughout the company. But what does SaaS DNA actually look like, and what does it mean in the context of organizational transformation?
Success in the SaaS/Cloud ecosystem requires a new approach to every aspect of software manufacturing. There is no excess margin in the SaaS model to cover organizational inefficiencies. Support can no longer be seen as a separate function; it necessarily must be a core aspect of the relationship product.
In the traditional perpetual-license model of selling software, the manufacturer takes the majority of their profit up front from the sale of the licenses. In the Software As A Service subscription model, that large up-front influx of revenue and profit goes away, replaced by a more predictable monthly membership arrangement. SaaS profit is realized incrementally instead of all at once.…
One of the key indicators of a SaaS / Webware company that is struggling over the role of their Support teams is confusion over whether or not to charge extra for support services. Here's why: "Tech Support" needs to go away. It's time for true Support to take its proper role in the overall company profitability strategy.