The Death of an ISV: How NOT to Succeed in your Move to SaaS

Jul 27, 2011 by

It wasn’t curiosity. It was thinking that the “good old” ASP model would cut it. It was thinking that little by little, they’d get away from labor intensive provisioning, manual billing, and some day refactor the Rube Goldberg contraption that made their “hosted” model work. Sound familiar?

Software as a Service has quickly become the preferred method of application delivery and consumption. Why is it that while many ISVs claim to provide some flavor of SaaS today, few are doing it with the same cost of delivery profile and operational agility as SaaS leaders like Salesforce.com, or Taleo?

Join Apprenda and Savvis on August 9th at 1:30PM EST for a webinar covering the most dangerous pitfalls that ISVs fall into time and time again. You’ll learn:

- The unprofitable truth about the ASP model
- Why multi-tenant infrastructure isn’t enough
- The real-world economics of SaaS leaders and laggards
- How to avoid building dozens of custom SaaS operations systems
- Key business and technical pitfalls when making an infrastructure choice

You’ll come away with everything you need to either “save the ship”, or leap frog your competitors with a SaaS strategy that rivals the best of the best.

Date: Tuesday, August 9, 2011
Time: 1:30 PM – 2:30 PM EDT

Register Here>

We hope you’ll join us!

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Transparency In The Cloud, Part I: The End-User Transformation

Apr 6, 2011 by

In case you didn’t know, the days of business-to-business (B2B) software-as-a-service are upon us.  If you’re a software developer and you haven’t begun planning a SaaS offering, stop reading this article right now, go gather your team and get started.  Seriously, you’re already late.

Ok, now that they’re gone, this article is for the rest of us: the B2B software end-users.

I have it on good authority, that in the next couple of years most of us are going to throw away our piles of compact discs and DVDs and replace them with bandwidth.  We’re going to say goodbye to license fees and free-up some square footage by dismantling our servers.  We’re then going to embrace the technologies that give us access to always-on, internet-based services which we will access from our new server-rooms-turned-corner-offices.  The benefits are manifold:  accessing software typically costs less than owning it, online services are accessible from any location and on a plethora of devices, and we don’t have to worry about things like hard drive failures when our documents aren’t actually stored on our hard drives.

The unfortunate side-effect of our herd-like flocking to internet-based services is that, by forfeiting our ownership of the servers and software that fuel our businesses, we put our destinies in the hands of software companies that, put simply, are software companies.  They’ve spent many years honing algorithms and interfaces that made us want their software in the first place but unfortunately, those years were not spent learning how to offer that software, as a service.  After all, we bought the servers, we provided the power, often times we even installed the software ourselves. Believe it or not, sometimes we’re better at running software than the vendors who sold it to us.

Fortunately, some software companies are comprised of incredibly smart people who do amazing and innovative things. They also have amazing tools available to them to supplement what they lack in experience. I have every bit of faith (*cough* SaaSGrid) that with some hard work (*sniffle* SaaSGrid), and a bit of help (*yelling* SaaSGrid), our trusted software vendors will seamlessly make the transition from shrink-wrappers to world-class service providers, without us noticing as much as a blip on our B2B, software-consuming, radars.

As end-users, we have an obligation to ensure this whole thing goes smoothly. We need to hold our service providers accountable.  One way to do that is by relentlessly asking questions. Interestingly, no one is more qualified than us to ask the appropriate questions, because we’re the ones who’ve been running software on-premises for 20-years. We know the scenarios and situations to avoid, and most of these scenarios translate into very good questions that each and every service provider should be able to answer in a way that not only gives you the warm and fuzzies but also makes technical sense.  Remember, we’re banking our businesses on these companies’ ability to learn how to provide software-as-a-service. I’d at least like to know that they have a plan.

In part two of the Transparency In The Cloud series, we’ll start a list of questions that you should ask each and every SaaS vendor you approach.  The questions are designed to help us guide the B2B SaaS transformation by making us all knowledgeable and empowered SaaS end-users.

Stay tuned!

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Webinar Recording and Q&A Now Available – Sink or Swim: Transitioning your Software Business to SaaS

Mar 28, 2009 by

Hi everyone,

We had a great turnout last week for the webinar, and a number of people have asked if they could get access to the recording, so here it is. I’ve also compiled a list of some of the question from the Q&A session here, along with the answers.

Q&A

Q: We have our app completed, but are working on the provisioning/billing parts (hard for us). Can SaaSGrid provide a sandbox for our app such that we can deploy one copy of the app per customer? – our app is .net based and is a web application already. For us, our value is in our s/w, not in building special purpose billing systems

A: Absolutely, you can register for access to the SDK and a Sandbox account here. 

Q: What are the on-going cost advantages of using a PaaS like SaaSGrid?

A: Applications built “from the ground up”  without a PaaS incur massive ongoing R&D and maintenance expense. Your R&D team will have to manage the code base, fix bugs, and maintain the layer. This is expense will generally become disproportionate to the R&D of the actual app on an ongoing basis. Second, a home grown SaaS stack will normally reach a “freeze” point where no new added functionality is added. A PaaS is constantly looking to evolve and inject new value into the applications and business it hosts. A PaaS provider can help drive revenues up and costs down without the participation of the ISVs it works with. Last is flexibility. A PaaS environment is built to be horizontal and support any application. Good PaaS offerings like SaaSGrid also offer commercialization tools, lifecycle management tools, and support tools that become part of an ISVs day to day.

Q: What approximate effort is needed to make existing hosted applications into SAAS. Is the architecture to be re-designed or can be used as it is?

A: It depends on the application, but utilizing SaaSGrid, some existing application can be deployed as a pure multitenant SaaS offering with out any effort.  Others may require modifications before they can be deployed.  SaaSGrid does not require any proprietary work to be done to your application, it simply requires that you’ve adhered to current best practices for architecting your .NET application.

Q: What about ISVs that already have a J2EE application?

A: Currently, SaaSGrid is specifically focused on .NET based applications 

Q: What happens if the PaaS provider goes out of business?

A: Depends on the type of PaaS provider. If it’s a “custom stack PaaS” that has its own programming languages, the scenario is dire because the code can’t work anywhere else. Existing language/runtime PaaS offerings like SaaSGrid allow you to run your code on-premise, which at least lets you recover your application even though it won’t be a SaaS offering. At Apprenda, we’ve focused on a disaster recovery plan where our cloud partners that run SaaSGrid will continue to run the platform for a significant period of time, thereby mitigating any disaster scenarios and giving the ISV the ability to continue business as usual.

Q: What is the typical cost and timeframe for developing a SaaS application?

A: Depending on the complexity of the application, the SaaS aspect of an application can take up anywhere from 30%-70% of upfront development time and account for roughly 30% of ongoing costs and development effort. 

Q: What if my application is running on a different environment – can I still use SaaSGrid to manage my business (subscriptions, etc.)?

A: Currently, no. SaaSGrid exploits the fact that it manages the environment the applications run in to provide much of the business management aspects like metering and subscription based authorization magically, without writing a line of code. A huge amount of value exists in running within SaaSGrid that normally provides rapid ROI on time and money invested to moving to the SaaSGrid environment.

If you’d like to mingle with others in the SaaS space, the SaaSBlogs group on LinkedIn now has 1730+ members and it’s growing every day; make sure you are not missing out and join today.

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Sink or Swim: Transitioning your Software Business to SaaS

Mar 9, 2009 by

On March 19th at 12:00pm CST, Apprenda will be teaming up with Scio Consulting for a live webinar focused on SaaS transitions for ISVs. 

From questions like “Where do we start?” to “How will our operations be different?”, we’ll be providing clear answers and focusing on the choices and challenges ISVs face when migrating their existing applications to the SaaS delivery model.  If you’re an ISV considering a move to SaaS, you won’t want to miss this! 

Register here: 
https://www2.gotomeeting.com/register/697223607

We hope the SaaSBlogs community will come out and join us for this great event, and encourage your collegues to attend as well.  If you have questions prior to the webinar, you can post them here, or email me directly at: jkliza at apprenda.com 

Thanks all!

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“What it Takes to be a SaaS Provider” – an interview with Mike Seckler

Dec 29, 2008 by

Below is a link to an interview conducted by Phil Wainewright with Mike Seckler, co-founder of Employease and Apprenda board member.  In the interview, Phil and Mike highlight some of the considerations and obstacles that ISVs must tackle to be truly successful.  The 8-minute podcast is well worth a listen for new ISVs and SaaS veterans alike.

“What it Takes to be a SaaS Provider”

Please post comments and let’s start discussions around any topic or point made during the podcast that you’d like to elaborate upon.

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