Technology partners of all shapes and sizes – from value added resellers (VARs) and independent software vendors (ISVs), to consultants and integrators – can benefit greatly by adding SaaS solutions to their portfolio of offerings.
More and more organizations are embracing the SaaS model. In fact, a recent survey conducted by Information Week states that one-third of all companies either have deployed, will deploy, or are considering deploying SaaS solutions. And, Gartner predicts that, by the end of 2011, approximately 25% of all new business software will be delivered via SaaS.
Therefore, partners will need to add these valuable tools to their suite of offerings to meet customer demand and keep pace with the competition – who will likely be doing the same.
But, making SaaS available to clients is about more than gaining a competitive edge by giving customers a broader range of choices. SaaS presents partners like these with opportunities that never existed before. For example:
Income and Profits
SaaS provides residual, recurring income as a result of monthly service fees. Partners will have not only revenue streams that re more consistent and stable, but much greater control over their profit margins.
Stronger Customer Relationships
Since partners can easily log into each client’s SaaS environment, they will have better insight into needs, utilization, etc. This will provide them with valuable intelligence that can be used to up-sell and cross-sell managed and value-added services, based on each customer’s specific requirements.
Flexibility and Scalability
SaaS provides a way to easily extend and enhance existing solutions. And, unlike most on-premise software applications, which are designed to address only small, departmental implementations or large-scale enterprise deployments, one single SaaS solution can scale up or down to address any need, no matter how big or small.
On-premise software is time-consuming and expensive to install, roll-out, and maintain. SaaS eliminates the hassle and expense, since there is no inventory to carry, and no cost or effort associated with service delivery.
Increased Partner Value
When partners sell and support on-premise applications, they often spend the majority of their time doing non-value added work, such as installing, customizing, and troubleshooting and fixing problems. This can both frustrate the customer and drive up related costs. But with SaaS, the partner’s staff can transition from focusing only on low-level technical issues, to providing strategic, value-added services that help the customer resolve business problems or achieve important goals much faster.
More Seamless Integration
Whereas some on-site software systems require long, expensive, manual integration to achieve the needed links with existing solutions, most of the world-class SaaS offerings can be easily integrated with on-premise applications, as well as other cloud offerings.