I have been reading several reports that suggest that most companies will move towards SaaS platform. Working in a product development company, I was wondering what could be the factors stopping ISV’s from migrating to SaaS:

  • SaaS is a high entry cost business. When you are looking at a huge customer base, then the investment multiples accordingly.
  • New Sales & Marketing Approach – Sales and marketing expenses are high to acquire customers and the ability to retain customers depends on the service level.
  • Higher Expectations for Customer Service – The ISV needs to convince the buyer on the service levels. This will lengthen the sales cycle.
  • Uptime & SLA – This reflects the operational excellence and the ISV may be required to depend on hosting provider. This plays a crucial role in Customer Retention.

Considering these factors, an ISV will definitely think twice before jumping into the SaaS bandwagon.

So has CI moved into the SaaS bandwagon? You have to wait till the next post. 🙂

~ Ramya