Any Good Channel Models for SaaS?
Posted by Bob Krygowski
While I'me not sure I would call it a dirty little secret, the lack of a solid channel model for ISVs who make an investment in taking a SaaS offering to market is conspicuously absent.
Many are trying, the current influx of Platform-as-a-Service (PaaS) vendors is one such example, vendors like Force.com (www.force.com), Boomi (www.boomi.com), Longjump (www.longjump.com), and the list goes on and on. PaaS vendors solve a very thorny problem, particularly for start-ups who have the benefit of a blank canvass upon which to work.
But where do you go from there? You've made a decision to build on a platform that gives you the infrastructure you need to get started and run a service, but without any customers who really cares what platform it's run on.
What role should the PaaS vendor play in helping companies with SaaS offerings find customers, if any? You'd think that in exchange for the virtual platform lock-in they would do more to help their customers be successful through lead management, market awareness, mashup or composite application support, etc.
What about other channel models or simply a path to the end customer - the one who pays the bill?
- The direct sales model? Depends on the solution, but generally too slow and expensive for the long term, and doesn't generate the kind of scale required (with some notable exceptions). However, much of the B2B side of SaaS is still sold this way.
- Systems Integrators? Perhaps. Microsoft will undoubtedly have some success selling Exchange and Sharepoint through the SI and hosting community because the administration and customization side of Sharepoint, and a cottage industry has sprung up around Salesforce.com to help with process design and implementation, but nothing too dramatic.
- Partnerships? Likely one of the most compelling options, but one that has yet to gel in any significant way. Imagine partners joining forces and resources to address similar target markets with complementary offerings? Sure, lots of details to work out, but might be a great option to explore.
What else is there? Any thoughts or great examples?
