How to implement a successful SaaS business model

Last updated:June 2015

Editor's note

Software as a service (SaaS) has huge profit potential for cloud providers, but finding success in this highly competitive market requires finesse. Are you equipped to make it in the SaaS market, or are you destined to fall short?

Although SaaS delivers the highest value to customers, compared to infrastructure as a service and platform as a service, providers can't expect to be successful in the SaaS market by going in blind. There are a lot of factors to consider when launching a SaaS portfolio -- including sales techniques, partnership opportunities, financial issues, technical considerations, customer expectations and more.

The SaaS business model can be a key element to a cloud provider's portfolio, but it needs to be executed right. Our SaaS guide for cloud providers offers a collection of tips and best practices to help you get started in this market.

1The pitfalls of selling SaaS

As cloud providers overcome the challenges of developing a SaaS business model, they also must steer clear of a range of pitfalls. For starters, if SaaS vendors aren't careful, SaaS has potential to strain relationships with channel partners, as the relationships between vendors and partners in the cloud era are still relatively immature. Organizations that deploy SaaS applications can run into issues, as well, such as security challenges. In this section of the guide, we provide advice into how to avoid sparking channel conflict and how to deploy SaaS successfully.

2The end users' take on SaaS

Now that you have the tips and tools for beginning your SaaS business, learn about the benefits and drawbacks of SaaS from the end users' perspective. While SaaS has had a positive impact on the enterprise, freeing up precious resources, it has also caused various problems for IT. For many organizations, moving to a SaaS model means making the integration of SaaS with on-premises apps an ongoing priority. And, as recent studies have shown, security remains a major concern within SaaS environments. Here, we provide a variety of articles to help you gain a clearer understanding of what SaaS means to your customers.