Making SaaS Work For The Channel

There has been a lot written and much said about the potential of software as
a service (SaaS). However, amidst all the hype, there are some compelling
reasons why the channel should be taking a serious look at SaaS.

Increased demand

Increased demand for flexible access to applications and the pressure to
reduce server and energy usage are all driving the uptake of SaaS. Also, there
is a strong and vibrant small and mid-size enterprise (SME) market that is
attracted to the pay-as-you-go pricing model of SaaS, the speed with which
solutions can be deployed and a RoI that can be achieved from the solution. SaaS
enables companies, both big and small, to implement software quickly, helping
businesses run effectively across all verticals. Channel partners play a very
strategic role in the successful delivery of SaaS, profit from reaching new
markets and achieving customer retention for long term.

New business model

With SaaS, partners may not take title of the product or handle inventory or
logistics. The channel may also experience changes in its role of contractual
reselling activity, as well as maintenance, upgrades and installation. Because
of the different structure and services in the SaaS model, partners are no
longer 'the resellers', rather they have the opportunity to become service
providers that help customers understand their business needs and recognize
process improvements in areas such as sales, marketing, human resources,
operations and logistics."

SaaS consultancy

With this new delivery model, many customers will still need consultancy to
help integrate SaaS into their existing business processes. Partners with
in-depth knowledge of SaaS can add significant value here by defining the
implementation strategy and helping customers to take a plunge into new systems.
The emphasis is is on the change management and making sure that customers have
the right processes in place to make SaaS a success in the long term. SaaS
provides the channel with opportunities to sell ongoing consultancy services and
to obtain long-term customer loyalty and the annuity revenues.

The current economic situation has precipitated business environments where
low upfront costs, tactical issue resolution and rapid time to value are the
factors that dominate the IT investment decisions. For the channel, the
potential business benefits of SaaS are huge and those businesses, which are
able to establish long-term revenue streams and build customers' loyalty, are
likely to reap the most rewards.