SaaS
IDC forcasts SAAS grow at a 32 percent compound annual rate to 14.8 bil by 2011
Gartner project that the enterprise SaaS market would be 11.5 by 2011, representing a CAGR of 22percent
IDC predict cloud computing to reach 42 bil in 2012. It defined the segment as an emerging IT development, deployment, and delivery model, enabiling real time deliver yof products, services and solutions over the internet.
Gartner Inc, projected the revenue to rise 21.3 percent in 2009 to 56.3 billion. Gartner called it a style of computing where scalable and elastic IT enabled capabilities were provided as sa service to external customers using internet technologies
Merrill Lynch see it as the transformation of IT intustry intoa more utility type of supply, inw hich broadband internet would take applications to individuals andenterprises like electricity or water supply.. In this scenartio, world wide software industry is valed at 744 bil in 2011, about 12 percent was estimated to migrate to SaaS, so 95bil
6 months turn over rate for a small company per product is realistic. Shown by Zuora. Sense of urgency is there. 27 developers are enough. Use agile development process. Can considering having developers offshore. We can consdier half to 1/3 cost when out sourcing to China. Hire a few in US for communication and leadership
In 1 year, 4 product
In 6 months time you can add 70 customers
Building API allows plug and play scenario.
Marketing of SaaS company:
1. Generate high level of awareness of the company and its products in the amrketplace
2. Use that awareness to drive people to its website
3. Encourage visitors to that website to identify them along with their phone and email (who then were contacted by a sales development team responsible for qualifying the leads)
4. Qualified leads were passed to an account executive, a person in the sales organization carryign a quota for how many new customers they signed on each month and how mcuh revenue those new customers were worth (range 1000 to 100000)
5. Churn management is critical becuase you pay as you go.
6. Investment up front in sales capacity is needed to grow the business over time, SaaS business need to make a carefult rade off between gast growth and high cash burn rate.
Culture built on consensus, still invovled accountability which every decision clearly emerging froma leader or drive. Most key decisions made by core team consisting of CEO, CFO, VP marketing, VP sales, and VP serivces.
Communicate decisiosn through weekly all-hands meeting when small, fortnightly when larger...
Consider using SaaS services from CVSDude, Amazon, marketo, Google apps
