10 Predictions for Software as a Service
On Nov 17, 2008, Sandhill.com wrote about the 10 Predictions for Software as a Service. Here are my views and comments on the predictions:
#1 Itʼs the product, stupid!
It is the product and has always been the product and the overall experience it gives the end user.
#2 Software without borders
Very true. Just like how social networks have opened up the boundaries. My prediction is that more and more enterprise SaaS solutions will look, act and feel like consumer based web 2.0 solutions.
#3 First impressions, first
Absolutely. In the web design world, users make up their mind about a website in 1/20th of a second. SaaS apps might be a little longer but if the app is clunky, slow, and not good to the eye then 1 minute might also be sufficient to close the browser and move on.
#4 Pinching pennies
Monthly recurring revenue and churn rate is also a very important metric.
#5 Tier 1 support reigns
It depends on the customer. Full-fledged support for small business customers might prove expensive. Most of the support should be self-help including video tutorials and dynamic FAQs.
#6 More product alliances
This is a must. You don’t want to be an island after all. Complimentary services will use API’s to create enterprise mashups.
#7 Video trumps text
Absolutely. No comment.
#8 SaaS for SaaS
This is called “Walking the talk”. Great way to reduce expenses.
#9 Grid computing muddle
No comment.
#10 Tech takes a back seat
As more and more SaaS vendors crowd the space, marketing (and mostly online) is going to differentiate one service from the other. It will be a level playing field again with the vendor with the clearest purpose and position will emerge the winner.
