The perfect storm

While the financial markets are in turmoil, and interesting thing happened. The SaaS market gained a tremendous leg up.

If you think about what has actually happened in the business market, things could not be better for SaaS providers.

  •  Access to capital and borrowings is now significantly harder. Lenders criteria is higher and your share-price (and capital value) has tanked. 
  • We’re on the cusp, deep into or somewhere on the path to a recession. That means businesses are going to cut budgets and staff. The typical do more with less scenario. It might also mean moving to less salubrious offices (including all the hardward and software).
  • IT solutions that can deliver results will get priority, those that have a speedy time to benefit will hit the top of the list. 
  • The business will take charge. If you earn the bucks you will have more of a say in how things are done. This is great for SaaS as it is often introduced despite (or around) the IT department by the business.

So how would I start to play if i was a SaaS company?

  •  Emphasise the speed to benefit.  The needs of the business hasn’t gone away, the way they might get that outcome has changed is all.
  • Emphasise the lack of IT involvement needed (compared to on prem)
  • OPEX funded model,  user pays, pay as you grow … you get the idea.
  • And if you are confrontational – get stuck into the on-prem crowd. Their cost structures,  the ongoing cost burden, the implementation timeframes , the lack of datacentre required.

I think if you are a SaaS profitable provider,  its game on. (if you are SaaS provider that’s all bluff and bluster then you could be in trouble.)



Leave a Reply