SaaS Entrepreneur

EXCERPT FROM CHAPTER FOUR

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

SaaS Channels

When the SaaS comeback began in the 2004/2005 timeframe, the place of channels was hotly debated. Among some, it still is. After all, no shipping or installation of products is required in SaaS. All customers share a common set of capabilities and services. Customer recruitment, sign up and services are administered and carried out at a common portal, or portals, managed by the SaaS provider. The on-demand model seems particularly well-suited to a direct sales model.

Also, in SaaS the balance of power shifts in key areas from the channel to the vendor. Providers enjoy the following:

The Future of the Channel

But despite the jostling, questions, and shifts in how much money changes hands over time, for many SaaS firms channel development makes sense. And as we saw in the case of DonorCommunity in the Marketing chapter of the book, the SaaS model opens up new channel opportunities unavailable to on-premise software firms. But in addition to new opportunities, SaaS companies have also discovered that the traditional reasons to implement a channel still apply. These are:


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