Can the financial crisis help SaaS companies in the long term?

No doubt that the financial crisis will hurt everyone. With a frozen financial system the entire idea of US capitalism (borrow cash, put it to work, grow to be profitable, invest again…) is on hold. Eric Schonfeld concluded today that VCs and Startups will not be immune to the crisis and I can not agree with him more. The one thing to remember though, is that a financial Crisis, a war or other disasters impact some people/industries/countries more than others, so while no winners will emerge, some may lose less.

One of the sectors that may lose less is the little (but fast growing) SaaS (Software as a Service) industry. Here is why: Continue reading “Can the financial crisis help SaaS companies in the long term?”

Can the financial crisis help SaaS companies in the long term?

How to measure a good SaaS company

I had an enjoyable lunch meeting with a general partner in a leading Bay Area VC firm and during the discussion he wanted to compare notes on the way I evaluate a good SaaS company. I thought that my answer may be of general interest for employees or investors in the space- so here goes… Continue reading “How to measure a good SaaS company”

How to measure a good SaaS company

Going 100% SaaS

Yesterday I moderated a panel titled “Going 100% SaaS” during Office 2.0 conference.  There is a full video so if you have 40 min to spare you can see it all. It was also covered in Ben Kepes blog

The panelist were 3 SaaS vendors (Dan Druker from Intacct,  Rob Holl from Adaptive Planning and Jeff Schultz from Bill.com) and one near 100% SaaS customer, Doug Harr from Ingres. Although we didn’t get to talk much about the future of SaaS, several interesting takeaways came out of the event:

  • 100% SaaS is real- Companies like Ingres made strategic decision to become 100% SaaS and they move programmatically toward that. If it was not for Exchange and Office, Ingres would be 100% in the cloud) Continue reading “Going 100% SaaS”
Going 100% SaaS

“Tear down this wall”- the Lawson version

Tear down this wall” was the famous challenge from United States President Ronald Reagan to Soviet leader Mikhail Gorbachev to destroy the Berlin Wall.

The best thing to do when you have only one strategy for your company is to say there is only one strategy in the world. It makes you right automatically which is a great boost for anyone’s ego. When Marc Benioff came with the famous no-software tagline, he was trying to make a point. As the only SaaS game in town, in a market dominated by Siebel, playing the no-software card helped Salesforce.com differentiate itself and win, leaving all its competitors far behind. I understand the marketing wisdom behind “no software” but I don’t agree with this claim. It will be as reasonable for Toyota to declare the death of a non-hybrid cars.

But why do I even bring “no software” up? It is all because Lawson CEO predicted the death of SaaS and carefully explained that he has only one strategy too: YES software.  I don’t even want to get to the argument who is right: Benioff or Debes . Debes is entitled to have his own opinion even if I think he is terribly wrong. Nonetheless, most of the reasons he provided to support his point of view are either wrong or bluntly anti-customer. Continue reading ““Tear down this wall”- the Lawson version”

“Tear down this wall”- the Lawson version

IT can be a boring job (for some)

Office 2.0 is just around the corner and I am preparing for my session (going 100% SaaS) by interacting with my panelists and doing some thinking. My current thread is thinking about IT and its traditional role vs. its new role in the SaaS era.  There were ups and downs in the way IT viewed SaaS and now it seems that IT professionals divide into two camps: the ones that strongly embrace SaaS, and the ones that wait for it to go away.

In general, the ones that want it to go away like control, like hands on approach and rather do the tactical work as a way to keep their kingdom intact. If you work for a startup you may not believe me but in a big company your worth goes up with the number of people you manage and you don’t want to lose anyone you gained. Continue reading “IT can be a boring job (for some)”

IT can be a boring job (for some)

Office 2.0 and Burning Man?

I was invited by my friend Ismael Ghalimi to host a panel during Office 2.0 about my favorite topic, SaaS. The session is about going 100% SaaS and what it means. My panelists are Dan Druker from Intacct, Doug Harr from Ingres, Rob Hull from Adaptive Planning and Rene Lacerte from Bill.com. What’s great about this team is that they are all senior executives that pioneered SaaS either with their current company or in previous lives: Dan was part of Postini (later sold to Google), Rene co-founded PayCycle, one of the best kept SaaS success secrets in the valley, Rob co-founded Adaptive Planning in 2003, when no one believed SaaS will ever happen and Doug spent 5 years with Portal Software, that was acquired by Oracle. We would not be lacking perspective here…

In the next couple of weeks I will share my thoughts about the 100% SaaS goal as I progress in preparing for it. For now I wanted to go back to the title, and explain the interesting story behind Office 2.0 and its connection to the Burning Man festival. Continue reading “Office 2.0 and Burning Man?”

Office 2.0 and Burning Man?

The iPhone Economy

You thought you only bought an iPhone. $199+ sales tax and you are all set. Little did you know that Apple disguised a little robot inside the iPhone that has one goal in life: boost the sluggish economy. Just like Bill Gates and his foundation Steve Jobs joined the philanthropic club of successful CEOs, dedicating themselves for the greater good- in this case, introducing the Apple version of the economic stimulus package. Continue reading “The iPhone Economy”

The iPhone Economy

Small is not an excuse

Should small business whine? This is how Seth Godin titled his very telling blog post this morning. No- they should not. Small businesses have every reason in the world to out preform any large company with a bit of common sense and a personal touch. When I remodeled my house, I tried to buy almost everything I could online, mainly from small businesses. In one stressful day the plumber came to install all the faucets and discovered we got the wrong part. He wanted a replacement by the end of the next day, so he can install it on time before he leaves to his summer vacation. I emailed the company I bought the item from (small business out of Louisiana) and few minutes later I got a tracking number for an next day air shipment of the right piece. No excuses, no whining- amazing service by one committed business. I ended up buying all other plumbing materials from them. Investing in personal customer service is your safest bet- you are either the boss or close to her, there is no bureaucracy and decisions can be made in minutes. In addition, you can use some of the rules I published last year that will help you appear large and professional. Look as professional as Amazon but with a better/faster/personal customer service can be your ultimate competitive weapon.

  • Presence: save on coffee, dining out or anything else but don’t save on your public presence. Glossy product brochures and a shiny website are essential to look impressive (Seth Godin just published a useful guide on how to create a good enough website). Make sure you hire a good marketing agency (there are many small firms of young and smart guys that will make you look brilliant). This is one of the areas where quantity doesn’t count as much as quality. I know many people don’t think it is important–but trust me, it is as bad as coming to a sales meeting unshaved and in your DYI outfit.
  • Use technology to appear biggerContinue reading “Small is not an excuse”
Small is not an excuse

Should you give your iPhone app for free?

I am in an iPhone mood. Just like the rest of the world. It will go away, I promise. Last week I tried to answer a more fundamental question: Should you build an iPhone app? Now that you built one: how would you price your iPhone application?

Here are some interesting statistics: based on Tech Crunch’s mid day iPhone App Store download statistics from Friday, the top 10 free apps had a total of 68,452 downloads where the paid ones (mainly games) got a total of 4,484 downloads. It means that only 1 of 15 downloaded app was a paid one. I suspect the overall numbers are even lower. Why? The ratio between the number one paid app (Monkey Ball) and the number one free app (Remote) is about 1 paid to 9 unpaid. If you look at the last apps in the top ten list the ratio is now 1 to 25- which means that the longer the tail is, the more unlikely you are to make money on your app. Continue reading “Should you give your iPhone app for free?”

Should you give your iPhone app for free?

Should you build an iphone application?

There is an incredible amount of buzz surrounding the launch of the iPhone app store today. You walk around University Ave. in Palo Alto, CA and it sounds like everyone is building an iPhone app… Before you had out and build one for yourself, here are some things to remember:

  • Watch the numbers– Apple is hoping to ship 10-12 million iphones this year. This is 1% of the total estimated phones shipments this year. When compared to the total number of phones in the world (3.3 billions), the share is even smaller. If your success rely on mass penetration, go look elsewhere.
  • Ignore the numbers- Continue reading “Should you build an iphone application?”
Should you build an iphone application?