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Softletter's SaaS University comes to new locations in 2013
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April Vol 5, No 2 View Journal Online Tell a Friend
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Just Released! SaaS Entrepreneur: The Definitive Guide to Succeeding in Your Cloud Application Business


"SaaS Entrepreneur: The Definitive Guide to Succeeding in Your Cloud Application Business"

  • .432 pages of up-to-date and invaluable information on starting and succeeding in SaaS
  • 10 chapters
  • 600+ checklist to do items that provide a framework for action and success.
  • SaaS Entrepreneur Virtual DVD with hours of videos, spreadsheets, documents and templates to assist you planning and executing programs.
  • 200 charts, tables and figures proviide invaluable business metrics.

Read excerpts from all 10 chapters from SaaS Entrepreneur: The Definitive Guide to Succeeding in Your Cloud Application Business

Purchase SaaS Entrepreneur

 

NOW AVAILABLE! THE 2013 SOFTLETTER SAAS REPORT


 The 2012 Softletter SaaS Report

The latest edition of the industry's most comprehensive report on SaaS from the viewpoint of technology providers. 580 color pages that drill down by company revenue size, years in business, development stage and type of customer. New information on discounting, converstion to sales for trial and freemium programs, integration of analytics and community management into SaaS applications, mutlti-tenancy usage and much, much more. Includes an extensive analysis section examining key trends and changes in the SaaS business model. Purchase the downloadable report before September 7th for $599 and save $200 before price rises to $799.

More information on the Softletter SaaS Report Here

Purchase Today

 

NOW OPEN! THE 2013 SOFTLETTER SOFTLETTER SALES COMPENSATION SURVEY

 Take the Survey Now

This survey covers sales compensation metrics and best practices for SaaS/On-Premise/Mobile/OEM software companes.

The categories of questions we'll be asking cover:

  • Company profiles, including type of software sold (mobile, OEM, on premise and SaaS)
  • Close Rates, Managerial Performance and Sales Plan Goals
  • Sales Salaries and Variable Compensation
  • Sales Compensation Tools
  • Recruitment, Training and Incentives

The entire survey is 35 to 70 questions, based on conditional responses, and should take approximately 20 to 30 minutes to complete.

Everyone who supplies data for this survey will receive a complimentary copy of the complete summary results in the May/June issues of Softletter. Further results will also be provided at Softletter's upcoming SaaS and Cloud Applications University in Seattle, May 21 - 23rd.

 Take the Survey Now


SaaS UNIVERSITY COMES TO Seattle, WA, May 21ST - 23rd

SaaS/Mobile/Wearables/M2M in the Cloud

SaaS University, Seattle, WA May 21st - 23rd is:

Register Today

Complete Agenda Here

Some of the sessions at SaaS University in Seattle include:

SaaS and the Intersection of Social Systems and Customer Communities

SaaS systems, by their very nature, create communities of customers who can collectively interact with each other and your company on a 24/7/52. In SaaS, the application is the social network. But to benefit from it, you must prepare to manage and leverage the application network to the maximum extent. Failure to do so will first damage, then destroy, your ability to compete successfully in SaaS.

Revenue Growth Best Practices for SaaS Companies

Every company, regardless of size, needs to grow revenue predictably and profitably. In order to demonstrate leadership Chief Executives and Business Owners are challenged to grow their companies 20%, 30%, 50% or even 100% year-over-year top line growth. Growing revenue well is a vital process to master.

Device to Datacenter: M2M Opportunities for SaaS ISVs

The advent of small devices with intelligent processing capabilities means that businesses of all kinds have the opportunity to learn about their customers and their operations in unprecedented detail. This rapidly emerging trend is often referred to as the Internet of Things or the intelligent platform Machine-to-Machine (M2M) revolution. 

Oracle is partnering with a broad range of SaaS ISVs to help them deliver complete, integrated solutions and react quickly to the changing needs of their customers - while retaining the reliable and scalable data processing, management, and storage needed to help them understand collected information over time.

 Matthew Chivers, Oracle

Community in the CLOUD

This session explores the value of creating a cloud community that allows for expert conversations in both managed and unmanaged environments. Potential buyers seek insights from peers with expertise. You can participate and shape the conversation with those influencers that become an authority in the space.

Lisa Moriss-Wolff, Lenati

Register Today

Complete Agenda Here

Fast SaaS Fact: In the Softletter 2013 SaaS Report, in answer to the question "Based on offering yearly contract length discounts, what percentage discount do you typically offer over your monthly
or yearly subscription pricing?" 53% of SaaS companies said they offer 7% to 10% discounts.


Creating Your SaaS-Based Community of Customers: Possibilities and Pitfalls
 

Some segments of this article excerpted from "SaaS Entrepreneur: The Definitive Guide to Succeeding in Your Cloud Application Business." More information and excerpts are available at www.saasentrepreneur.com

At SaaS University in Seattle, you can learn moreabout the impact of creating communities of customers in your SaaS system. Click Here to find out more.

In the 2013 Softletter SaaS Report, 20% of the 202 SaaS companies participating reported that they were integrating a customer community management system directly within the SaaS application, with 16% stating they were planning to add this capability over the next 12 months. Community adoption in SaaS lags behind the integration of analytics (over 50% of SaaS firms have built analytics directly into their systems and the pace of adoption is increasing) but over the next three to five years community integration will increase strongly and steadily throughout all categories of SaaS applications.

The core functionality of a community system integrated into your SaaS system usually includes (but is not limited to):

  • Discussion forums.
  • Social media linking.
  • File sharing and uploading.
  • Voting systems that allow subscribers to nominate new features for development.

Implementing a SaaS-Base Community System

In evaluating the path a SaaS firm can take when implementing a community system into their application, a company has four basic choices. These are:

  • Build its own community management system.
  • Use the popular social networks such as LinkedIn, Grouply, Facebook or similar system.
  • Use third party forum and discussion boards.
  • Use third party ‘private’ social systems such as Yammer, Leverage, Jive, Pathable, Chatter and others.

Each approach has its advantages and drawbacks. If you choose to develop your own community system, you will hopefully end up with something that is an exact fit to your needs but developing it may not fall within your core competence and the system may never be finished and never work quite right. And upgrading and maintaining a community system may not be what you want your development group to focus on.

Using an existing and popular social network is tempting. Costs are low to start and these systems are easy to get up and running. The problem with them is you do not "own" your community; the social network provider does. And this can be deadly. Facebook can and does shut down accounts with no warning (and often no explanation of why). If you read the TOS of most social systems, their control over "your" social existence is, in their legal opinion, absolute. In all good conscious, we cannot recommend Facebook for any B2B company as its primary community system, though it can be useful for marketing purposes and as a way to "feed" your community. The present security and privacy issues are simply too great and the system is not well designed for a more closed social environment. That said, we do know of smaller companies that start their community building efforts with Facebook and have enjoyed success, but the above caveats always apply.

Some of the most fascinating example of the issue of community control have recently involved LinkedIn, which is a bit surprising, as the system has always been thought of as fairly staid when compared with the Twitterverse and Facebook. And this approach has had strong appeal to the B2B market.

As with Facebook, LinkedIn, does and has shut down community (Group) accounts with no warning and often no explanation of why. This recently happened with the SaaS Marketing University LinkedIn group, where the managers temporarily lost access to "their" group because of a change in one of the manager's SEO strategy (access was restored).

Linkedin and SWAM

Much more insidious is LinkedIn's new SWAM (site wide auto moderation) technology, which was implemented on LinkedIn with no warning to group owners and the LinkedIn user base early this year. SWAM works by automatically putting a LinkedIn user who has been blocked and deleted from one group from being able to post on any other group until the group owner reapproves them to post without moderation. The policy in effect disconnects a LinkedIn subscriber from the system.

This change in the moderaton statues takes place without the group owner's knowledge or approval. SWAM is implemented against a user even if the group owner blocks and deletes a user's post/membership by mistake. LinkedIn will not change your SWAM status even if asked to by the group manager who activated the SWAM trigger by mistake. (This is not an uncommon event.)

The only way to be UNSWAM'd is, according to LinkedIn,contact the group manager of every group you belong to (up to 50 for a single account) and ask them to take you off moderaton. Until then, you will be unable to post on your groups (with the exception of a group you may run) or join discussions (you can still read). SWAM is also applied to LinkedIn members who are paying for premium services.

Unscrupulous LinkedIn group owners have discovered the power of SWAM and so-called SWAM wars are now raging across the LinkedIn system. (We have seen one post on the situation stating that 200K LinkedIn members have been SWAM'd though we're not sure were this number is derived from. The problem is particularly acute on more controversial groups such as the polticial ones, where tempers run hot and vindictive behavior is not uncommon. We are also aware of situations where firms and people are attempting to use SWAMing as as a competitive weapon against rivals.

SWAM is a potential PR and relationship nightmare for any software company looking to use it for community building. (Imagine the potential consequences of accidentally SWAMing a major client or prospect.) Until/unless LinkedIn changes or diiscards SWAM, we regard the system as unfit for building a SaaS community of customers. (If you're going to consider a major public social system, Google Groups shows promise, though group ownership and control is always an issue. )

In addition to the above, social systems may have restrictions you find unacceptable or too confining. For example, LinkedIn only permits one message a week to be sent to your group. It provides almost no useful metrics that permit you to measure response to your notifications and promotions.

Third party forums and discussion groups can be useful, but they often have limited contacts to the social networks, limited connectivity to external databases, and are regarded in some circles as ‘old technology.’ But they are relatively inexpensive and often provide tight control over content posting and behavior.

The abilities of private social systems vary widely. Some are highly template driven and relatively inflexible. Others are more free form and can be more easily configured. Data integration and transferability varies widely from package to package. One developing trend is the development of verticalized community systems aimed at different markets. One example of this is the CivicsPlus system, which is optimized for small and mid-sized state and local governments.

Most of the current generation of community management products do not integrate closely with SaaS analytic systems. Over time, we expect this situation to improve, but it is a factor you should take into consideration when deciding what path to take in implementing your community management.

Your Community Integration Decision

Your choice of a community management system should be made carefully. Make sure you consider the following:

  • How much control do you have over your community infrastructure? Can you back up your community membership, archives and other materials? What recourse do you have if a third party shuts down your community? (In the case of the major social networks, the terms of use terms you agree to give you practically none.) 
  • Is the system you pick configurable enough to meet your appearance as well as scalability needs? If not, how difficult will be it be to transfer your community content to a new system? 
  • Can community analytics be integrated with your SaaS system analytics? Combining these two capabilities is a measurement and management dream. 

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Subscribe to Back Issues

Don't see back issues of SaaS U Journal? Please subscribe to the Softletter site to obtain access to back issues. Subscribing to the Softletter site is free!

Recent back issues include:

  • Professional Services in SaaS, Part II of II
  • Professional Services in SaaS, Part I of II
  • The (Usual) Folly of Marketing Multi-Tenancy in SaaS
  • Flying Pigs and SaaS
  • Can Kachingle Save Freemium?
  • What SaaS Providers Can Learn from Telecom Billing
  • Selected Key Excerpts from Softletter's 2011 SaaS Survey, Part II of II
  • Selected Key Excerpts from Softletter's 2011 SaaS Survey, Part I of II
  • Collecting VAT on SaaS: What Rules Apply?
  • Selected Key Highlights from the Softletter SaaS Pricing, Billing, and Discounting Survey, Part II of II
  • Selected Key Highlights from the Softletter SaaS Pricing, Billing, and Discounting Survey, Part I of II
  • Multi-Tenancy and the Ghost of Objects Past
  • October, 2010, Government Contracts and the Cloud: The Data Security Challenges
  • Sept., 2010, The Most and Least Effective Indirect Marketing Lead Generation Programs for Software as a Service Companies
  • Summer 2010, Why Do Customers Buy SaaS? Based on Softletter Research.
  • June, 2010, CUSTOMIZATION IN in SaaS: DRAWING A LINE IN THE SAND
  • May 2010, SILLY AGILITY, THE MYTH OF THE SAAS AGILE PRODUCT MANAGER
  • April 2010, SELECTED HIGHLIGHTS FROM SOFTLETTER'S 2010 SaaS SURVEY, PART II OF II
  • March 2010, SELECTED HIGHLIGHTS FROM SOFTLETTER'S 2010 SaaS Survey, PART I OF II

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SaaS Entrepreneur: The Definitive Guide to Success in Your Cloud Applications Business


In Search of Stupidity: Over 20 Years of High-Tech Marketing Disasters, 2nd Edition