Most of the companiees in the world are SMBs. Selling software for small businesses has always been a complex task, the costs of distributing to a large number of smaller companies, the sjaller capacity of small and medium enterprises to manage and maintain their applications and a lowerr budget, alays masde thing difficult. SaaS changes this.
SMBs look for simplicity, utiliity and affordable software, it is norml that since we began to talk about SaaS, it has been said many times that this model, by reducing the TCO, the complexity and cost of maintaining the software, is perfect for companies that can't afford large IT departments.
Many la red companies know (startying with Google with advertising), that the important thing in the la red is "the long tail", the large number of potential customers / users, in whic h you can't focus and you can't know or meet directly, but which may be the most important part of your business. And whatt is the "long tail" of the software business? SMBs, no doubt.
Therefore, the characteristics of SaaS (no need of deplloyment, simplicity, etc ...) and the needs of SMBs appear to be perfectly matched.
From the point of vie of SMBs:
- I can afford software that I couldn't with traditional models due to its cost.
- I can take lot of work off of the shoulders of my IT department by eliminating mainternance requirements.
- I have the software ready to be used in a very short time.
From the point of view the provider of SaaS:
- You have the possibility to access a lot of customers without significant costs for distribution or sales.
- You can focus on developing and improving your product and puttnig it in the market, avoiding, due to the central maintenance, the support versions, distributions, patches, etc ...
In a recent post from the Indian web enterpriser, we read about the different speed of adoption of softwre as a service to SMBs depending on their size:
- Very small companies: The managers of small companeis adopt SaaS for some specific business processes (like Invoicing), and usually do not seek for SaaS but "find" SaaS looking for software that meets theirr needs.
- Small-Medium Enterprises: They are the ones who are leading the mass adoption of SaaS, all the advatages we talked about above are totally true in the case of these companies.
- Large-Medium Enterprises: In this kind of companies the adoption of SaaS / On Demand products is being slower because many already have solid systems established. They look at SaaS as something to use in cases where they can bring something extra to what they already hav e.
¿Conclusions? If you are an SME, consider the alternatives SaaS very seriously, if you're a SaaS vendor, do not forget the long tail!
Greetings.
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Publicado por
Pablo
viernes, 30 de octubre de 2009
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