SaaS SuperBook (Saas Special Report and Global SLA Navigator)
SoftwareCEO (Capable Networks), January 2006, Pages: 188
* This product is a bundle package containing both the ‘Software as a Service (SaaS) Special Report’ and the ‘Global SLA Navigator'
SaaS Special Report
131 pages of tips, tricks, and tactics to help you build a profitable SaaS business.
-14 Lessons from Four ISVs Who’ve Made the Transition to SaaS.
Key practical advice for you to learn from others on how to build a subscription-based business addressing topics such as security, performance, negotiations, research, and revealing outsourcing partners.
-66 Practical, Real Life Tips From Five Firms Who've Struck Triple-Digit Growth with SaaS.
Learn how to raise millions in VC, transform your software from the unknown to a known, and leverage your partners to put your firm on the fast track to growth.
-16 Tips on Marketing, Selling, and Pricing.
Discover why your existing sales model won’t work, how to compensate sales reps, how to create and offer transition paths, and other practical tips to profitable marketing and sales of SaaS.
-24 Pricing Points.
Advice on how to price subscription software – including insight into how Salesforce.com does it.
-28 Tips on How to Transform Your People.
Get tips from OpSource on how SaaS affects your R&D, finance, sales, and marketing teams.
-Hosted Software – Where it works and where it doesn’t.
Find the right business model for your SaaS business.
-10 Facts to Create SaaS Value.
How SaaS can widen your market... but you need to be in it for the long haul.
-18 Ways to Prosper with SaaS.
Reading the market, looking for early adopters, partnering with larger players, and fifteen other keys to profitability.
-2 Keys to Success with SaaS.
In summary, according to OpSource's Treb Ryan, the two keys deal with pricing and what you are offering.
SLA Guide
57 pages chock full of practical information to help you prepare service level agreements between you — the SaaS Service Provider — and your service provider partners and customers.
-An Explanation of 14 key SLA Terms. Make sure you use the right language in your SLA contracts. The SLA Guide helps you by providing sample representations key contract terms: such as availability, bandwidth, change management, error resolution, security, data migration.
-Service Agreement Model Tool. Use this tool to learn how to format the terms contractually in your SLA.
-Survey of Worldwide Legislation Tool. This survey tool provides a worldwide overview of data privacy statutes, an extremely important consideration for the SaaS business owner.
Global SLA Navigator: Tools to Navigate the Challenges of Software as a Service
57 pages chock full of practical information to help you prepare service level agreements between you — the SaaS Service Provider — and your service provider partners and customers.
-An Explanation of 14 key SLA Terms. Make sure you use the right language in your SLA contracts. The SLA Guide helps you by providing sample representations key contract terms: such as availability, bandwidth, change management, error resolution, security, data migration.
-Service Agreement Model Tool. Use this tool to learn how to format the terms contractually in your SLA.
-Survey of Worldwide Legislation Tool. This survey tool provides a worldwide overview of data privacy statutes, an extremely important consideration for the SaaS business owner.
SaaS Special Report TOC
Introduction
Welcome
Special Offer
Thanks and Contact Information
Two keys to success with SaaS
SaaS success key #1: Price your software based on your customer's success.
SaaS success key #2: Offer new wine in the new bottle; do something that couldn't be done before.
Software as a Service, part 1: How to get started with SaaS—14 lessons from four ISVs who’ve made the transition
The appeal of SaaS
SaaS lesson #1: Define your own reasons for moving to subscriptions.
SaaS lesson #2: If it doesn’t scale, it’s no sale.
SaaS lesson #3: Learn from history, so you don’t repeat it.
SaaS lesson #4: Research, research, research: Don’t build it until you know what your users want.
SaaS lesson #5: Make your multi-tenancy decision early on.
SaaS lesson #6: Remember that security still matters, but the focus is on the host.
SaaS lesson #7: Performance trumps features.
SaaS lesson #8: In the on-demand world, forget customization
SaaS lesson #9: Reveal your outsourcing partner.
SaaS lesson #10: But don’t pass the buck.
SaaS lesson #11: Your partner is the delivery expert; get their advice.
SaaS lesson #12: When it comes to hosting, D-I-Y spells dumb.
SaaS lesson #13: Negotiate for success, not just failure.
SaaS lesson #14: Consider an SaaS spin-off, or at least a separate business unit.
Software as a Service, part 2: Show me the money — 16 tips on marketing, selling, and pricing software on demand
SaaS money tip #1: A new service needs new marketing.
SaaS money tip #2: Don’t assume you know what your customer wants.
SaaS money tip #3: Build your software before you build your brochures.
SaaS money tip #4: SaaS is still new; expect to educate your prospects.
SaaS money tip #5: Your existing sales model likely won’t work.
SaaS money tip #6: Consider creating a firewall between the old and the new.
SaaS money tip #7: Your sales reps won’t touch SaaS unless they see equivalent commissions.
SaaS money tip #8: SaaS pricing remains a crapshoot, but there are some trends.
SaaS money tip #9: Get smarter about accounting for your costs.
SaaS money tip #10: Consider offering a transition path, in both directions.
SaaS money tip #11: Learn from history, and tune up your sales pitch.
SaaS money tip #12: The CIO’s window of visibility is shorter.
SaaS money tip #13: First-to-market is more important than ever, so jump on it.
A real-life scenario: Building software as a virtual company.
SaaS money tip #14: Be prepared for too much success.
SaaS money tip #15: Don’t even think about looking for investment capital without an SaaS strategy.
SaaS money tip #16: Get used to SaaS, and change how you think about the software business.
SaaS firm expensewatch.com answers the question: Where does all the $$ go?
Four software startups later...
SaaS growth tip #1: Find a problem where software can come to the rescue.
SaaS growth tip #2: Get the inside story on how customers actually use your software.
SaaS growth tip #3: Small buyers have small budgets. Give them a small price tag.
SaaS growth tip #4: With SaaS, resist the urge to have multiple versions with different features.
SaaS growth tip #5: Make friends with firms with complementary products.
SaaS growth tip #6: Make sure your sales people have skin in the long-term game.
SaaS growth tip #7: You don't need to visit. You can sell from a distance.
SaaS growth tip #8: Sarb-Ox-dot-com-o-matic? Why be just another voice in the crowd?
SaaS growth tip #9: Listen with your customers' ears.
SaaS growth tip #10: Develop to interoperate with the systems your customers intend to buy.
SaaS growth tip #11: Zero in on a niche. Don't try to be all things to all people.
SaaS growth tip #12: Make sure you're objective is crystal clear to everyone in your company.
SaaS growth tip #13: If you're not already doing it, prepare for the onslaught of on-demand.
How to grow 380 percent with an unknown software product: 14 tips from SaaS firm Acrelic
Growing an unknown tip #1: Start by consulting.
Growing an unknown tip #2: Let customers pay for ongoing development. This makes the product better.
Growing an unknown tip #3: Fix the cause, once and for all.
Growing an unknown tip #4: Build something truly worthwhile.
Growing an unknown tip #5: Make sure customers can use your product.
Growing an unknown tip #6: Be flexible with releases. Not everyone may need them.
Growing an unknown tip #7: Smaller development teams are more nimble.
Growing an unknown tip #8: Swim in a big pool. Target a big market.
Growing an unknown tip #9: But know what adding more business will cost.
Growing an unknown tip #10: Make it easy for customers to get started, even if that leaves money on the table.
Growing an unknown tip #11: For a SaaS sales force, balance "hunting" with "farming."
Growing an unknown tip #12: Time your entrance for maximum effectiveness.
Growing an unknown tip #13: Find a community. Somewhere.
Growing an unknown tip #14: Manage the soft stuff, too.
How Print Audit grows 247 percent a year by aligning its goals with its channel partners
Align your goals tip #1: Listen closely for business opportunities.
Align your goals tip #2: Help boost your channel partner's sales and you'll boost your own sales.
Align your goals tip #3: Give your partners a compelling pitch.
Align your goals tip #4: Always have a person answer the phone.
Align your goals tip #5: Celebrate your successes with your people. And their people.
Align your goals tip #6: Celebrate your customers, too.
Align your goals tip #7: Take out any speed bumps that slow down users.
Align your goals tip #8: Call users soon after the sale to get them up and running.
Align your goals tip #9: Next, ask for a testimonial.
Align your goals tip #10: Dedicate resources to entering competitions.
Align your goals tip #11: Know what it takes to win awards.
Align your goals tip #12: And use those awards to open new partner opportunity doors.
Align your goals tip #13: Measure everything.
Align your goals tip #14: See how SaaS can open up new opportunities.
Align your goals tip #15: Build a great team, then lead them into the future.
11 tips on how SaaS firm Razorsight got on the fast track to growth, and raised $10 million in VC
The lovely challenge of growing a business.
SaaS growth tip #1: Redraw your roadmap to match where you are today.
SaaS growth tip #2: The money is out there, if you know how to get it.
SaaS growth tip #3: If you outsource, keep an eye on the future.
SaaS growth tip #4: If you outsource, keep close ties to the office.
SaaS growth tip #5: Don't under-estimate the importance of your SaaS infrastructure.
SaaS growth tip #6: Going vertical? Use your network to find contacts to approach in other industries.
SaaS growth tip #7: Moving your office? Get all your ducks in a row, early.
SaaS growth tip #8: Tame the borrowing beast to sell out for the best price.
SaaS growth tip #9: Leverage your sales muscle with big-name partners.
SaaS growth tip #10: Call in the sales experts. No one can do everything well.
SaaS growth tip #11: Be ready to pay a sales superstar more than your CEO.
13 ways iSqFt builds success with software and services for the construction industry
Breaking news: iSqFt to merge with competitor.
Conway's many strategic moves
Success building tip #1: The correct order is: Horse first, then cart.
Success building tip #2: Think locally, act locally.
Success building tip #3: Leverage industry associations and networks.
Success building tip #4: Spoon-feed your users, if they're not techno-savvy.
Success building tip #5: To build real value, add new functions that everyone can easily appreciate.
Success building tip #6: Don't develop anything without speaking with end users.
Success building tip #7: Trim the sails tight, and don't leak cash.
Success building tip #8: To expand your market, plan an organized campaign.
Success building tip #9: Buy what you need to fill in your gaps.
Success building tip #10: Your cash should flow from customers, not VCs.
Success building tip #11: Make your natural leaders do the hiring.
Success building tip #12: Love your vertical, and keep on researching it.
Success building tip #13: The process is paramount.
How SaaS affects software R&D and finance people: 14 more tips from OpSource
Nine tips on SaaS and your R&D team
SaaS R&D people tip #1: Count on having to re-educate them.
SaaS R&D people tip #2: Forget skunk works. You won't have time.
SaaS R&D people tip #3: Forget one big, new version once a year. Think much smaller releases, far more often.
SaaS R&D people tip #4: Test your code like never before.
SaaS R&D people tip #5: Forget customization.
SaaS R&D people tip #6: Forget cross-platform support. Focus on your most robust platform.
SaaS R&D people tip #7: Don't get tempted by browser-specific extensions.
SaaS R&D people tip #8: Re-architect your code to split the foundation apart from the features.
SaaS R&D people tip #9: You can make the transition to SaaS one product at a time.
Five tips on SaaS and your finance people
SaaS finance people tip #1: Allow time for changes to sink in.
SaaS finance people tip #2: Don't just claim to do SaaS. Do what it takes to learn and apply this new business model.
SaaS finance people tip #3: Appreciate the high-quality revenue flowing from SaaS.
SaaS finance people tip #4: Learn how to bill every month, right now.
SaaS finance people tip #5: Don't start yet another set of books.
How moving to SaaS affects software sales and marketing people: 14 tips from OpSource
But what about your people?
Six tips on SaaS and your sales people
SaaS sales people tip #1: Sell your sales force on the advantages of on-demand.
SaaS sales people tip #2: Equalize compensation over one to three years, depending.
SaaS sales people tip #3: Say goodbye to end-of-quarter panic discounting.
SaaS sales people tip #4: Develop a farming — not hunting — sales force.
SaaS sales people tip #5: If you're going down-market, not everyone on your sales team may make the transition.
SaaS sales people tip #6: Consider account management to keep customers happy.
Eight tips on SaaS and your marketing people
SaaS marketing people tip #1: Think web, web, web.
SaaS marketing people tip #2: Favor road shows over trade shows.
SaaS marketing people tip #3: Be frugal with print advertising.
SaaS marketing people tip #4: Boost your webinars and online demos.
SaaS marketing people tip #5: Whatever you do, don't scale back the features in your online demo.
SaaS marketing people tip #6: Instead, limit your demo by time, number of accesses, or system resources.
SaaS marketing people tip #7: Get product managers instant user feedback.
SaaS marketing people tip #8: Get your documentation online.
How to price subscription software—and how salesforce.com does it
Price point #1: First, review your non-subscription pricing.
Price point #2: Ask whether subscription pricing makes sense for your customers.
Price point #3: Ask whether subscription pricing makes sense for your company.
Price point #4: Consider contract terms rather than subscriptions.
Price point #5: You have to make the new model play with the old model.
Price point #6: Forget the ASP business; stick to software.
Price point #7: Allow for added expenses on the support side.
Price point #8: Allow for added complexity (and possible backlash) with upgrades. Price point #9: You need to offer a path back to perpetual.
Price point #10: Don’t try to convert your perpetual licenses to subscription.
Price point #11: Use subscriptions to win over skeptics, procrastinators, and small spenders.
Price point #12: Even the big guys haven’t figured out how to make the transition.
Price point #13: Mixed models will work, but not without a dominant plan.
Price point #14: Don’t limit yourself to standard subscriptions.
Price point #15: Pay-as-you-go is a convenience, and convenience is worth a premium.
Price point #16: Simple division isn’t the answer.
Price point #17: Unless you can undergo a major mind shift, you should perhaps forget about selling subscriptions.
Price point #18: Your best subscription models aren’t in the software industry.
Price point #19: With subscription pricing, simplicity is key.
Price point #20: Raise prices only when you can prove value.
Price point #21: At the same time you slice up payments, slice up ROI claims.
Price point #22: Sell monthly, but offer longer term options.
Price point #23: At the end of the day, it still comes down to value.
Price point #24: Subscription pricing requires a major mind shift.
Further reading: A few good related articles
Hosted software: Where it works, where it doesn’t, and how you can find your place
What’s the right business model for software as a service?
Where’s the future for software-as-as-service firms?
If you don’t move your software to the Web, someone else will.
How to determine pricing for your rental software.
When to go direct, when to go indirect, and how to manage the in-between.
The move to rentals will create a huge change in your daily routine.
Software as a service: Use these 10 facts to create more value in your firm
Fact #1: Subscriptions are the only way out of a mature market.
Fact #2: SaaS is the long-haul model.
Fact #3: Gross margins aren’t as fat with SaaS.
Fact #4: SaaS can help put the squeeze on expenses.
Fact #5: The nature of selling changes under SaaS.
Fact #6: Nothing replaces loyal customers.
Fact #7: Use SaaS to widen your market.
Fact #8: You must weather customer resistance.
Fact #9: The 100% subscription company is a dangerous myth.
Fact #10: Serious investors love SaaS.
How to make your own luck in the software biz: 18 ways to CORESense prospers with SaaS
SaaS sales key to recurring revenues
Make your own luck tip #1: Read the market a few years out.
Make your own luck tip #2: Look for the early adopters who “get the concept” before anyone else.
Make your own luck tip #3: Raise cash the old-fashioned way: sell your software.
Make your own luck tip #4: For a rock-solid foundation, use open source offerings like the LAMP stack.
Make your own luck tip #5: Partner with a huge player who wants to make the pie bigger for everyone.
Make your own luck tip #6: Know people who know people.
Make your own luck tip #7: Don’t spend more to land clients than they’re worth.
Make your own luck tip #8: This isn’t the New Economy, Part Deux; revenues do matter.
Make your own luck tip #9: Get a handle of your customer’s ROI.
Make your own luck tip #10: Use numbers to overcome objections.
Make your own luck tip #11: Use technology to help you manage.
Make your own luck tip #12: Use software to help you recruit.
Make your own luck tip #13: Design software to support a business process.
Make your own luck tip #14: Look at the software market like the ocean, with layers of turbulence.
Make your own luck tip #15: Be responsive to customer requests — but don’t create lots of custom versions to support.
Make your own luck tip #16: Don’t build something perfect; build something flexible. And keep your developers in the loop.
Make your own luck tip #17: Even with SaaS, manage releases carefully.
Make your own luck tip #18: Learn from history, ancient and modern.
Index
Software as a Service TOC
Notice
Introduction
Tools Included in This Document
How to Use The Tools
Syntax Usage
Additional Considerations
Overlap
Managing SLA Compliance
Remedies for SLA Non-Compliance
Final Note
Key SLA Terms and Sample Representations
Availability
Bandwidth
Change Management
Error Resolution
Errors and Data Loss
Expected Delay
External Response Time
Internal Response Time
Notifications
Resource Utilization
Security
Server / Data Restoration
Software Escrow and Data Migration
Throughput
Service Agreement Model
1 Service Overview
2 Service Framework
3 Service Level Agreement Compliance; Definitions
4 Service Remedies for SLA Non-Compliance
5 Service Credit Procedure
SCHEDULE A
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