An interesting report from Keystone Strategy.
SaaS represents an opportunity for ISVs to fundamentally transform their business to deliver greater value to customers, sell software to a broader range of customers and streamline their internal operations. The market for software is quickly changing to demand this mode of delivery, as software buyers start considering total ownership costs, ease of use and flexibility in their purchase decisions. ISVs need to prepare for such a transition.
Some key benefits:
- New customer segments open thanks to lower adoption costs and operating costs
- Customer TCO drops as infrastructure complexity falls under SaaS
- Integration of value-added cloud services improves ISV product offering
- Aggregation of usage data through SaaS model and data scale effects drive product improvements
- Financial predictability improves as recurring revenue grows
- New pricing models align ISV value with customers’ business needs, driving increased revenue.
The Report => Keystone: Shift2SaaS