321 Ignite! provides guidance and support to companies migrating from conventional software delivery, to Software as a Service offerings.
Moving from traditional software delivery and service to SaaS requires broad changes within your organization. The entire organization is often impacted, including Inventory, Service Staff, Sales, Compensation, Delivery, and Service Level Agreements (SLA). It’s not just about moving software onto a web server.
In a conventional software business model, software can be delivered to customers using as many as eight channels (think: direct, distributor, VARs, consultants, Online…). Over time online distribution has reduced the need for physical media. However a number of your sales channels, such as distributors and value-added resellers (VARs) still have inventory on-hand.
In a SaaS model, maintaining inventory on-hand is eliminated. This frees up physical space. It also eliminates the need to ‘refresh’ inventory whenever you update your product. Channel inventory no longer needs to be bought-back, destroyed, and replaced.
Eliminating physical inventory and COGS (Cost of Good Sold) is great! In its place you have new, different costs. These are data delivery costs which can be tied to an internal data center or Cloud-based data storage (think Amazon Web Services or similar). If you are unsure about how to get started, how to develop a strategy, what core components may be needed, 321 Ignite! can help.
Changing delivery mediums also requires changes in your service delivery team. The days of sending teams of technicians onsite to do installations is waning. With SaaS, if you send anyone onsite at all, you are likely sending business analysts. A ‘BA’ is skilled at interviewing, at discovering your client’s needs. BAs distill client needs and play a key role in helping your team build the best solution. If you want help assessing your teams, help determining where adjustments may be needed, 321 Ignite! is here for you.
Sales & Compensation
Sales teams are motivated by an ability to win, an ability to earn. Sales incentives, commissions, are relatively easy to calculate for ‘shrink-wrapped, boxed product.’ Sell 10 boxes, calculate the commission. In the SaaS arena, you no longer sell ‘tangible’ products and, for an established team, making the move to selling ‘contracts’ with Service Level Agreements (SLAs) can be challenging.
If your organization has already begun selling software ‘maintenance’ you’re well along in your transition to selling SaaS. If not, 321 Ignite! can help.
Service Level Agreements (SLA)
In the conventional world, you provide a warranty. In the Software as a Service realm, you provide a Service Level Agreement. Creating the right SLA is important. You want to provide the best service possible for your customers, as the right price points.
It goes without saying that the right SLA needs to be crafted to be competitive with similar offerings. 321 Ignite! can help you evaluate what components you need to offer, what up-times are realistic, how deep your SLA really needs to go, and more. For instance, consider disaster recovery. Many consider disaster recover (DR) the same as business continuity. They are not. DR is a subcomponent of a business continuity plan (BCP). A BCP, DR even, may be more than your service needs to offer. If you want help sleuthing through ins and outs of SLAs, give 321 Ignite! a call.