Benefits of SaaS

SaaS is about enabling agility, innovation, and operational efficiency

Benefits of SaaS

• Customer growth
  • Better customer experience
    • Reduced time-to-value
    • Customer is always on the latest version
    • New features are available for all customers
  • Reach new customers
    • Can offer tiering to reach new markets or geographies
  • Better customer visibility
    • Data-driven insights into customer behaviour from metrics
    • Can focus on areas bringing most value
  • Sell direct to business decision makers
    • IT departments don’t need to be involved
• Financial
  • Recurring revenue model
    • Subscription pricing models provide predictable revenue streams
    • Continuous revenue
  • Lower operating costs
    • Shared multi-tenancy brings optimal infrastructure usage
• Operational efficiency
  • A single platform to certify and manage
  • Able to scale without linear operational growth

Challenges of SaaS

• Mindset change
  • Agility is priority
  • Adopting service mindset
  • Build for growth
• Customer retention
  • Loss of customers brings immediate loss of revenue
  • Must demonstrate real value up-front
  • Limited customisation options due to multi-tenancy
• Revenue builds slowly
  • No up-front license purchase
• Substantial business change
  • New sales challenges and potential channel conflict
  • Emphasis on customer Lifetime Value (LTV)
  • Org changes required to support SaaS model