Tuesday, September 15, 2009

The effect on revenue of on-demand sales

#saas #cloudcomputing
The effect on revenue needs to be managed carefully when moving from traditional software sales models to on-demand ones.

The guys over at CloudAve have been doing some pretty interesting posts recently about the challenges of moving traditional software companies to on-demand models. Yesterday I posted about our experiences of the differences on the technical side of the house when you move to providing on-demand services.

Successful software companies excel at designing products, writing and testing software, and providing quality professional services capabilities. They also know how to market and sell software and in many cases to establish partnerships. These capabilities are mostly the same regardless of sector. On-demand or SaaS delivery models require different capabilities in operations, customer support, infrastructure (servers, power, storage, databases, networking), security, performance and load testing, continuous service improvement, IT Service Management, and specifically how to master the model of selling services rather than software.
This post from Ben Kepes summarises Ariba's experience of making the shift. Worth a read for anybody considering making the move (which you should).

ZeroTouch IT Ltd