Despite the current gloomy economic climate, with IT budgets tightening and layoffs increasing, spending on software-as-a-service continues to grow in enterprise markets. Research from firms such as Gartner, IDC, and Softletter confirm this growth and predict that SaaS market expansion will continue despite the recesson. Why is SaaS continuing to grow while many traditional licensed and on-premise software companies suffer from declining profits and static market share?
This webinar hosted and moderated by Aspire Systems featured noted SaaS industry speakers Merrill R. (Rick) Chapman of Softletter and Richard Dym of OpSource discussing:
- Softletter research analyzing increased SaaS adoption
- Reasons/Factors influencing the SaaS wave
- SaaS prospects/opportunities
- The future of SaaS and SaaS companies
Is (Or Why Is) SaaS The Survival Strategy In This Down Economy?
1. Is (or Why is) SaaS the Survival Strategy in this
Down Economy?
For Webinar Audio, Dial in: Panelists:
Merrill R. (Rick) Chapman
Conference Line Managing Editor, Softletter
US: (866) 581 2411 (Toll free)
UK: 80 00 51 8866 (Toll free) Richard Dym
Chief Marketing Officer, OpSource
Conference ID: 98043879
Webinar ID: 983-396-776 Moderator:
Date : Thursday, May 14th, 2009 Janaki Jayachandran
Business Manager – SaaS Specialization, Aspire Systems
11:00 AM ET/ 08:00 AM PT
2. Agenda
Introduction
Key Highlights from Softletter 2009 SaaS Report
Upcoming Trends in SaaS
Questions to the Panelists
3. About Aspire
Thought leader in Outsourced Product Development
1050+ product releases to date
80+ customers; 475 producteers
63% CAGR over the last six years
Offices in Chennai (India), San Jose, CA, and Branchburg, NJ
ISO 9001:2000 certified
Awards
Ranked 7th in Business
Ranked in the top 500 fast growing technology companies Today Survey featuring
in Asia Pacific for 3 years in a row the Best Companies to
work for in India in 2005
4. Panelist
Merrill R. (Rick) Chapman
Managing Editor and Publisher, Softletter
• Author of The Product Marketing Handbook for Software, In Search of Stupidity:
Over 20 Years of High-Tech Marketing Disasters and the SIIA's US Software
Distribution Guide.
• Rick has worked and consulted for such industry pioneers as MicroPro
(WordStar) and Ashton-Tate.
• Consulted for a wide variety of software and high technology firms such as IBM,
Novell, Microsoft, Sun and many others.
5. Key Highlights from the
Softletter 2009 SaaS Reports
Rick Chapman
Softletter, Managing Editor and Publisher
www.softletter.com
www.saasuniversity.com
rickchapman@softletter.com
860.657.2838 (EST/EDT, Killingworth, CT)
7. Brief Intro: Softletter
Published twice a month
Complete coverage of
every aspect of running Softletter is
a software business now in its 25th
year of
publication
Compensation,
operating ratios, unique
research, timely articles
9. Softletter
Research Publications
2009 Software as a Service
Marketing Report
2009 Software as a Service Report
Up-to-date information and hard data about software publishers adapting to
SaaS, the issues they face, and the strategies and tactics most likely to
succeed. Covering Product Development, R&D, Pricing, Channels, Sales and
Marketing & Product Management.
2009 Financial Handbook
Contains hard data for: Software industry metrics and benchmarks; Mergers,
IPO’s, and Venture Finance; Compensation; and Operations. For software
companies preparing their yearly business plans and budgets.
10. Softletter
Research Publications
2009 Software Sales and Telesales
Compensation Reports (analyzes compensation
and sales efficiency across desktop/retail, OEM,
on premise, client/server and SaaS application
sectors)
11. Current Surveys of Interest
The 2009 Softletter telesales compensation
survey is currently open covering:
compensation, bonuses, close rates, quota
performance and more
Company types are desktop/retail, OEM, on
premise, client/server, and SaaS
All participants receive summary results in the
upcoming issues of Softletter
Interested? Go to: www.softletter.com
18. 2009 SaaS Direct Sales
Compensation and Efficiency
Reports Highlights
19. Some Key SaaS Compensation
Metrics
What is the average time it takes Percentage
to close a major sale (On
premise, client/server)?
Less than three months 0%
Three to six months 32%
Six to nine months 21%
Nine months to a year 32%
A year to 18 months 9%
18 months+ 6%
20. Some Key SaaS Compensation
Metrics
What is the average time it takes Percentage
to close a major sale (SaaS)?
Less than three months 23%
Three to six months 40%
Six to nine months 21%
Nine months to a year 11%
A year to 18 months 4%
18 months+ 0%
21. Some Key SaaS Compensation
Metrics
What percentage of your sales Percentage
representatives exceeded quota last
year?
On premise, client/server 30%
SaaS 50%
22. Some Key SaaS Compensation
Metrics
Of the sales representatives that Percentage
exceeded quota, by what average
percentage did they exceed quota
last year?
On premise, client/server 15%
SaaS 25%
24. SaaS Operating Metrics
Publicly held SaaS companies enjoy a
distinct advantage in R&D
4% as % of revenue
Enjoy some advantages in sales and
marketing: about 2 - 3% as % of revenues
25. 2009 Marketing Report
Overview
262 companies participated from U.S., Europe,
Eastern Europe, Latin America, Australia and
Far East.
211 questions
22 separate marketing categories covered
Respondents: 90% CEO’s and Senior Marketing
and Sales Executives
26. 2009 SaaS Marketing Report
Overview (cont)
SaaS companies results broken out and
analyzed separately
Results were analyzed and cross tabulated “drill
down” by company size and phase of
development
Detailed look at marketing practices, program
results, trends, and current and forecasted
expenditures. Most comprehensive report of its
kind
31. www.SaaSUniversity.com
This presentation is available as a free
download at www.saasuniversity.com
Sampler of the 2009 SaaS Report also
available
If you wish to further discuss points raised
in this presentation, please post questions
and observations on the SaaS U forums
You will receive an answer!
32. Softletter’s SaaS University:
Marketing, Selling, Infrastructure, and
Financing, Chicago, June 30-July 2
30 sessions
Five tracks
Four keynotes
Three SaaS workshops
33. Special Aspire Offers
Offer Codes for today’s attendees:
$100 Off the Financial Handbook: ITAFIN100
$150 Off SaaS Report: ITASAAS150
Buy Both Report for $449.00 ($395 Off) go to:
http://store.softletter.com/ProductDetails.asp?ProductCode=Aegis-0037
$200 Off our upcoming Chicago SaaS Conference:
ITA200; go to www.saasuniversity.com
Thank You for attending
35. Panelist
Richard Dym
Chief Marketing Officer, OpSource
• He has held senior executive positions in fast-paced technology companies
ranging from venture backed start-ups to global public enterprises
• Prior to working with technology and technology-related services companies,
Richard was a Senior Economist with Chase Econometrics, Inc. (a subsidiary of
Chase Manhattan Bank, N.A.)
• Richard also founded Dym, Frank & Company, a quantitative money management
firm.
46. For more details
Richard Dym
CMO
OpSource
E-mail: richard@opsource.net
Ph. No: +1-408-567-2031
47. For more details
Merrill R. (Rick) Chapman
Managing Editor
Softletter
E-mail: rickchapman@softletter.com
Ph. No: +1-860-663-0552
48. For more details
Janaki Jayachandran
Business Manager – SaaS Specialization
Aspire Systems
E-mail: janaki.jayachandran@aspiresys.com
Ph. No: +91-44-67404000