Why SaaS needs its solution providers: The push for Enterprise
Written by Michael Smith on the 12th of September, 2017
Seek out new Enterprise opportunities or Klingon to the old?
The emergence of innovative cloud-based, software over the past decade has been a big game-changer in global business. ‘Disruptors’ have emerged as latter-day Davids successfully taking on and beating corporate Goliaths at their own game.
As the sleeping giants awake, they will in turn strive for competitive advantage and efficiency through disrupting their own models, transforming process and better-managing tech savvy customers, suppliers and employees.
Creating your perfect next-generation, ‘stack’ of technologies for an Enterprise occupying a specific vertical market needs customisation, integration and seamless deployment as well as support and enhancement over time.
SaaS organisations have been largely sales-centric. Start-ups, disruptors and even the digital teams within blue-chips are tech savvy. Sales are made on a commodity basis: ‘take a trial, have some guidance, read some articles around set-up and then tap into our community of product evangelists if you want more’.
However, In the grown-up world of procurement, ‘RFPs’ and tech steering groups, this will not cut the mustard. Valued-adding, consultative services are an imperative for the transformation-led, SaaS Enterprise model. In the same way systems integrators drove desktop solution sales in the 90s, so tech service providers have become the vanguard for SaaS penetrating Enterprise space.
Salesforce are well ahead of this game. Their ecosystems of reseller and service partners have been actively unlocking value, growth and creating a clear point of difference and advantage in vertical markets for a few years now.
For any SaaS provider, this is a far more cost-effective, approach when tackling complex, consultative sales. Let’s face it, investors simply want improved EBITDA through recurring licence sales not the burden of increased OPEX that comes with an in-house services team.
This has been borne out by a number of recent acquisitions including last week, IBB Consulting by Accenture. This suggests that there is going to be a lot of growth and consolidation in organisations delivering technology as a service to Enterprise during 2017/18.
Co-Founder of Technology Service Provider, Appamondo.