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August 13, 2012 | Authored by: Vindicia Team

SaaS and Subscriptions: The Wave of the Future

Choosing the right go-to-market strategy for your Software-as-a-Service (SaaS) business can be a “make it” or “break it” decision.

The traditional software delivery model of initial capital expenditure plus annual license is becoming less relevant to the flexibility and agility of a subscription methodology. With an estimated market of $15 billion in 2012, and rapid growth projected in the coming years, SaaS is not a trend, but the wave of the future.

During the webinar, Before You Go: Considerations for SaaS Businesses Planning to Go-To-Market, Ben Kepes, cloud computing expert & analyst at Diversity Analysis, and Sanjay Sarathy, SVP of Marketing at Vindicia, discuss key issues around the SaaS market and cloud computing, and offer useful tips to consider when planning a go-to-market strategy for a SaaS business.

In less than 24 minutes, Ben and Sanjay cover a gamut of topics. Below are just a few highlights.

What is Cloud Computing?

Given the number of definitions of cloud computing that float on the internet, Ben's characterization of cloud computing is concise and understandable. He explains that a cloud computing service must meet the fundamental “OSSM” criteria:

  • The service is on-demand
  • The service is scalable from one user to potentially millions
  • The service can be administered and managed by the customer/end-user (i.e., the concept of self-service)
  • The service is be rated or measured in various discrete increments

Why the Shift to the Cloud?

In 2012, roughly 7% of digital content is stored in the Cloud. Projections are that by 2016, that number will increase by 4x, with one third of digital content stored in the Cloud. What’s fueling this growth?

The move towards cloud computing is driven by the desire of businesses to offload the complexity of managing systems and processes which are not core to their operation. Specialized point solutions, like Vindicia CashBox, a marketing, CRM and billing platform designed to enhance customer acquisition efforts, maximize customer retention and expand business exponentially and globally, give SaaS companies the agility and flexibility they need to scale without the complexity, and provide consumers the best possible experience.

Business Models and Managing Churn

The explosion of and experimentation with new business models causes strain on creating long-term customer lives. To mitigate the churn risk, Ben suggests businesses look beyond CRM, which tends to focus only on the opportunity stage (“won and done”). He recommends the practice of Revenue Lifecycle Management (RLM), by which customers are monitored across the entire relationship cycle. Ben and Sanjay also discuss the importance of data and analytics to help optimize the RLM process.

> Hear more on SaaS business strategy trends and observations. Watch the webinar on-demand now! Before You Go: Considerations for SaaS Businesses Planning to Go-To-Market

P.S. Don’t miss the next webinar in our Revenue Revelations: Best practices for the digital economy webinar series.

> Details and register for webinar: Pricing Innovation for the Digital Economy: Yield Management and Targeted Pricing Plans

About Author

Vindicia Team

Vindicia Team

We value our subject matter experts and the insights each of them brings to the table. We want to encourage more thought leaders to come together and share their industry knowledge through our blog. Think you have something interesting to contribute as a guest blogger? Contact us at info@vindicia.com