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The 2009 SoftLetter
SaaS Report

Over 425 pages of invaluable data and survey results on SaaS from the viewpoint of technology providers. “This report includes the most extensive benchmarking data available in the SaaS market today,” Jeff Kaplan, Managing Director of THINKstrategies, Inc. and the SaaS Showplace. Complete TOC and previews here
SoftLetter

The Industry's Premier Source of
Hard Data About the
Business of Software Softletter,
$399 per year for 24 issues
Softletter is the leading source of up-to-the-minute information about the development and growth of SaaS in the industry. Upcoming articles focus on the impact of SaaS on product management, developing SaaS terms of service and reseller agreements, the costs of SaaS infrastructure, new surveys on SaaS business and marketing tactics and strategies and much more. Find out more
The Product Marketing
Handbook for Software,
4th Edition
In Search of Stupidity:
Over 20 Years of High-Tech
Marketing Disasters,
2nd Edition
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| SaaS University Agenda, Dallas/Ft. Worth, Jan. 26-28, 2010
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Agenda for Softletter's SaaS University:
Marketing, Selling, Infrastructure and
Financing Conferences, Dallas/Ft. Worth, 2010
Our fourth year providing actionable SaaS benchmarks, metrics, and hard data not available from any other source
Registration is Limited to 130 People
Check Back as We Add New Sessions and Speakers
The University Is Back in Session in
January, 26-28, 2010
$995 per attendee, $795 Early Bird Pricing till December 28th. Save with Group Discounts, Sofltetter Subscribers save an additional $200 on their attendance
Subscribe to Softletter Today
Register Today
I've gone to other SaaS conferences and got tips; I went to Softletter's Chicago conference and got hard data and answers.
Gary Skiba, CEO, Midamak
I would like to thank you for putting on such a great show last week in Chicago. I still don’t know how I ended up hearing about the conference but I have to say it was one of the most eye opening and helpful two days since I started my company. It is great to see other companies with the same issues, and people with answers to a lot of the problems and questions we are facing.
Joseph Collins, CEO, VaporStream
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Day One, Tuesday, January 26
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| 7:30 - 8:30AM |
Breakfast, Registration
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| 8:30 - 9:15AM |
Opening Remarks and Keynote Address
The Prospects for SaaS in the Obama Economy
President Bush is gone and with the passage of the stimulus package, the economy now belongs to President Obama. Let alone the fears of a "jobless recovery," will the next economic upturn leave IT spending behind? Half of CIOs will see flat or declining budgets in 2010, and IT spending won't return to 2008 levels until 2012, projected Gartner as of the end of October. Peter Coffee of salesforce.com, former Technology Editor of eWEEK, shares perspectives on building and positioning SaaS and PaaS solutions as key components of recovery plans for both private- and public-sector IT players.This important keynote will examine different economic and recovery scenarios and prepare you to grow and prosper regardless of the eventual outcome.
Peter Coffee, Salesforce.com
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| 9:15 - 9:50AM |
Key SaaS Metrics for 2010
Softletter has developed the most comprehensive series of SaaS business metrics in the industry. If you need real benchmarks and metrics, we have them (often with trend lines that span four years) and for many of these numbers we're the only source. Do you need to know how well free and trial usage access programs work for SaaS companies perform in terms of conversion to sales? How fast SaaS direct and telesales organizations close major sales? What are typical churn rates for SaaS companies? What are the most (and least) effective SaaS marketing programs? What are the latest trends in implementing SaaS escrow and failover agreements for enterprise sales? What the % of contribution to revenue from sales of professional service you can expect? In what key financial operating ratios do SaaS firms enjoy advantages? You don't have to guess at the answers; we have them, and after you attend this session, you'll have them too.
Merrill R. (Rick) Chapman, Softletter
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ROOM ONE
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ROOM TWO
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| 9:55 -10:30AM |
Burning Legal Issues in SaaS Deals
SaaS transactions pose unique legal risks and opportunities. Do you know what they are? Attend this whirlwind presentation on the legal issues – from data protection to SLAs, and from IP rights to escrow – and find out.
Michael Whitener, Vista Law
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SaaS FINANCES TRACK:
SaaS and the M&A and VC Markets
Unlike the dot.com/ASP meltdown of 1999-2001, SaaS is not suffering the same devastating plague of bankruptcies and business failures. Nonetheless, many SaaS firms are "stuck" with lower growth, extended bootstrapping cycles, and lack of access to new capital. This session will examine changing market conditions and analyze how current developments are affecting your growth, liquidity, and venture options.
Robert Chalfin, The Chalfin Group
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| 10:30 -10:55AM |
Networking Break
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| 10:55 - 11:30AM |
Crowdsourcing as a Creative Lever for Growth
Social networking, user generated content, self-service and self-help are all ways the global “crowd” on the Internet are interacting with your SaaS applications and others. How would you like the crowd to contribute all the content to your business – AT NO COST -- like they do for youtube, Wikipedia, yelp and others?
They are consumer apps you say? Say no more, because the consumer dynamic of social networks and crowd behavior is moving to enterprise markets and you can now “crowdsource” numerous aspects of your business. Ever heard of Amazon S3? EC2? Mechanical Turk? Understand the implications of having access to human worker capacity in as flexible and scalable way as you can contract for computing resources and storage “in the cloud.” This session will help prepare you to learn how to create competitive advantage leveraging crowdsourcing APIs integrated into your SaaS system.
Ray Solnik, Dolores Labs |
SaaS FINANCES TRACK:
SaaS and the Drive to Profitability
In a recession-impacted business environment, the pressure on SaaS companies who've received significant third-party and VC investment is being ratcheted higher. SaaS firms are under pressure to make money and reach profitability at an accelerated rate.
Unfortunately, many of these investment sources rely on metrics developed for client server and desktop/retail companies. The result can be a serious disconnect between what you're achieving in terms of your businesses growth and the perception of that growth. This session will enable you to manage this perception gap as well as practical strategic and tactical advice from a CEO who's currently successfully dealing with these challenges.
Sam Mele, Firm58
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| 11:35 - 12:05PM |
Building a SaaS Reseller Channel: A Step by Step Approach
Channel maven Ted Finch takes you step-by-step through the process of building an effective SaaS reseller channel. From affiliate-class programs to VAR-reseller recruitment efforts designed to support enterprise sales, this session will provide you with the tools and information you need to get started on your channel and partnering activities.
Ted Finch, Chanimal.com
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TRANSITION TO SaaS TECHNICAL TRACK:
Accelerating SaaS Application Delivery
Bringing multitenant SaaS solutions to market from scratch can mean 12-18 months of development and years of ongoing tuning, upgrades, and feature creep. What proven strategies can SaaS businesses take to accelerate that effort? What leveraged technologies can start filling the opportunity pipeline within three to six months? What are the service implications of adopting someone elses technology? What are some success stories?
Pankaj will cover this topic in detail as well as provide his own experiences in developing multiple SaaS businesses and now helping LongJump's ISV and MSP partners launch their own SaaS initiatives.
Pankaj Malviy, LongJump.com
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| 12:05 - 1:05PM |
Birds of a Feather Lunch: Sit With SaaS Experts to Further Discuss Your Needs and Concerns (Your Choice, of Course)
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Afternoon
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| 1:05 - 1:55PM |
Afternoon Keynote Addresses
Silly Fog: Don't Let Cloud Hype Damage Your SaaS Sales and Marketing Effort
In the last 12 months or so, the market has been inundated with massive amounts of drizzle and fog from "the Cloud" ending in the inevitable "CaaS," (Cloud as a Service, which is somewhat recursive, when you stop and think about it). What was originally a reference to the creation of massive virtualized storage and infrastructures systems from companies such as Amazon and Google has morphed into a fog that covers anything and everything in high-technology. Have a website? You're a "Cloud" company! Have a copy of VMWare installed on your PC. That's a "desktop Cloud!"
The result? Increased customer confusion and increased vulnerability from events completely out of your control (such as a Google outage). The problem with all the Cloud hype is if you're a SaaS vendor, you're selling specific answers and solutions to clients who could care less about upper atmospheric disturbances and the industry's latest buzzword of choice. This session will cut through Cloud hype and "BaaS" (we'll let you guess what the B stands for) to help you focus on what aspects of the Cloud may be of interest to your customers and what aspects will just confuse everyone and slow down your sales and marketing cycle.
Randy Hujar, Softletter
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| 2:00 - 2:45PM |
Your SaaS Infrastructure Choices: A Comparative Analysis
The numbers from our 2009 Softletter SaaS Survey revealed that SaaS companies have many infrastructure choices to make, from highly virtualized (Cloud) server farms to higly managed service systems and and many variants in between. This session analyzes the choices available to your company and provides realistic numbers, checklists, and scenarios that will help you make the best choice for your operations and business peace of mind.
Brian Wolff, BlueLock
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2:45 - 2:55PM
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Networking Break
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| 2:55 - 3:30PM |
SaaS Selling Models: Building Compelling Value Models that Maximize Sales Success
SaaS may be hot, but your customers' budgets are tight and no one is interested in buying technology for technology's sake in a recession. This session focuses on how to position and explain the unique values of SaaS applications and apply them to your business value propositions and sales model.
Chuck DeVita,
Growth Process Group
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TRANSITION TO SaaS TECHNICAL TRACK:
The Successful SaaS Sprint
You've taken a deep breath and made the decision to jump into SaaS. But you already have a client server product and a whole lot of tested, working code. What do you do? There are many technical issues you'll now face. What is the best development platform for our product? Should we commit to a PaaS platform? How are we going to address multi-tenancy? And these are just some of the challenges.
Each question has many possible answers and making right choices is a process that requires time and careful consideration of the impact across many variables. In this session, attendees will receive guidelines and criteria for approaching these technology decisions in a structured manner.
Luis Aburto, SCIO
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| 3:40 - 4:30PM |
SaaS and the Right Pricing Model
There's been a lot of hype recently about "new pay as you go" SaaS pricing models. The only problem with all of this is pay as you go is not new; Softletter's been tracking this model for years; "pay as you go" (or per usage or per transaction) pricing models are used by 29% of SaaS companies.
In this session, software pricing guru Jim Geisman will discuss the various pricing models available to SaaS companies and provide you with a roadmap to picking the model that best fits your business and revenue goals.
Jim Geisman, Software Pricing
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TRANSITION TO SaaS TECHNICAL TRACK:
Solution Accelerator: A Rapid Development Approach to SaaS
Softletter's SaaS Report reveals that only 15% of SaaS companies have made the commitment to a Platform-as-a-Service (PaaS) provider platform provider. While these services offer a distinct set of benefits, issues such as vendor lock-in, lack of control and inflexibility in the development platform constrain software vendors from readily embracing PaaS.
This session explores the question: Is there a way to realize the benefits of PaaS without the associated challenges? This session will explore alternatives to PaaS and will outline an accelerated, technology approach to building SaaS applications hosted on a virtualized (Cloud) infrastructure from firm such as Amazon, Azure and OpSource.
Gowri Subramanian, Aspire Systems
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| 4:40 - 5:20PM |
SaaS and the Rise of Community Management (and the Death of Traditional Product Management)
The growth of SaaS spells the end of product management as it's been as it's been defined in the software industry for the last thirty years. After SaaS ERP vendor Plex transitioned from client/server to SaaS, it jettisoned its entire product management/product marketing management framework. Current product management functions such as tick list herding, MRDs, PRDs, "Agile" product management and the concept of no responsibility, no accountability, and no authority are as relevant to SaaS companies as DOS 3.0 and floppy disks.
Replacing "product manager's" will be "community managers," a new breed of people who will be tasked with optimizing your SaaS community, monetizing it, and working in an environment of bottom line metrics and measurable performance. If you're thinking about pulling out your checkbook and wasting money on outmoded product management training courses, obsolete product management research, reports, and publications, and the latest theories on "Agile" product management, put that check writing hand back in your pocket and attend this session to discover what your CMs should be doing to put money IN your pocket more quickly.
Patrick Fetterman, Plex, TBA
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| 5:30 - 6:10PM |
Panel Session:
Their Cloud, Your Cloud, or Our Cloud?
A lively discussion on the different Cloud approaches being introduced into the market, Cloud hype, and how to best leverage Cloud technologies to ensure your success. Panel members are chosen the day of the conference and often include audience attendees.
Moderated by Randy Hujar, Softletter
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| 6:10 - 7:30PM |
Networking and Community Technology Session: Kick Back, Enjoy Some Drinks and Hors D'oeuvres With Your Peers and Preview Some of the Leading Technologies Designed to Help You Build Your SaaS Community of Customers
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Day Two, Wednesday, Jan. 27th
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Morning
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8:00 - 9:00AM
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Breakfast, Registration
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| 9:00 - 9:55AM |
Second Day Keynote Address
SaaS in Hard Times: Surviving (and Thriving) During the Recession
Ease of deployment and flexibility have made SaaS and cloud-based applications even more attractive in the current economic environment. As a result, SaaS adoption is accelerating faster than anticipated, even in the enterprise. The problem? SaaS applications radically disrupt organization models for managing technology, including applications, users and data. Conformity outlines these challenges and a holistic approach to resolving them.
Scott Bils, Conformity
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| 10:00 - 10:45AM |
Monetizing Multi-Tenancy - Generating Revenue through Network Effect Data and the SaaS Ecosystem
Multi-tenancy is a key element of Software-as-a-Service (SaaS); but not for the reasons you think! Achieving economies of scale, streamlining software development, maintaining one line of source code, etc. are the widest-known benefits of multi-tenancy. The real magic happens when multi-tenancy is leveraged to unlock and enhance the Network Effect created by all customers using the same system. And when the Network Effect is itself leveraged by the Ecosystem, myriad opportunities present themselves to drive growth and revenue. These are what makes being a SaaS vendor so much better than being a Legacy Software vendor!
Lincoln Murphy, Sixteen Ventures
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TRANSITION TO SaaS TRACK:
SaaS and the Open Source Intersection
SaaS and Open Source can be friends! While the pure Open Source business model has been in the main a bust (yes, we know about Red Hat, no, there aren't that many other pure Open Source , some SaaS firms are using Open Source to speed up their time to market and build profits more quickly. OpenPro was established in 1998.
Introduced in 1999, OpenPro was the first complete Enterprise Resource Planning (ERP) manufacturing software solution, integrating back office manufacturing with Customer Relationship Management (CRM), Supply Chain Management (SCM), E-Commerce, Finance and Accounting, Human Resources and e-business capabilities to support today's extended enterprise. OpenPro is written using Open Source technology to cut down on cost and development times so your firm can receive a much faster ROI. This session will examine the pros (and cons) of using Open Source techology in SaaS.
Jim Clark, OpenPro, Inc.
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| 10:45 -11:10AM |
Networking Break
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| 11:10 - 11:55AM |
Lessons from the Field: Best Practices in SaaS Customer Retention, Cash Management, and Executive Leadership
In three years AvidXchange has grown from 7 to 120 customers without raising any real outside capital, maintained 100% client retention, and obtains annual pre-paid support from 70% of our customers. We think you should learn how they do it.
David Miller, AvidXchange
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TRANSITION TO SaaS TRACK:
To Build or to Lease Your IT Infrastructure – That is the Question!
So you’re planning to transition your software solution to a Software as a Service (SaaS) delivery model (or you’re thinking about it). So now you need to decide if you’re going to build your IT infrastructure in-house or lease it. This is one of the biggest decisions you will make in the transition to a SaaS delivery model. This session will focus on the pro’s and con’s of either building your IT infrastructure in-house or leasing it.
Specifically you will learn:
- What the market demand is for SaaS applications
- Key considerations for building your own IT infrastructure
- Key considerations for leasing your IT infrastructure
- The pro’s and con’s of both options
- The typical costs associated with both options
At the end of this session, you will have a clear understanding of the benefits and the drawbacks of both - building your own infrastructure or leasing, so you can decide which option is best for your business model and strategy.
Ivan Hurtt, Verio
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12:00 - 1:00PM
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Working Lunch: How to Negotiate and Close Enterprise Agreements?
Getting your enterprise SAAS agreements closed can sometimes make the difference between an ok quarter and a great quarter. However, these deals are getting harder and harder to negotiate and close. So what do you do? We will go through some negotiating strategies and many practical tips/techniques that should dramatically help get these deals signed. There are no guarantees, but there are methods to dramatically speed up this process.
Jeremy Aber, Owner, Aber Law Firm
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Afternoon
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| 1:00 - 1:55PM |
Maximizing SaaS Revenue through Sales and Pricing Discipline
SaaS companies often act as if they have no incremental costs, leading to lax discounting practices. As a result, margins fall and companies struggle to reach or maintain profitability. Through careful analysis and disciplined execution, companies can close deals faster and leave less money on the table. For small software companies, the results can be the difference between life and death (a company with 10% margins that can leave 2% less money on the table raises its profit by 20%).
In this session you will learn to analyze and evaluate the effectiveness of your revenue and pricing strategies, how to discount more effectively (and less), and examine how other companies have implemented these techniques.
Reuben Swartz, Mimiran
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SaaS SALES AND MARKETING TRACK:
Marketing SaaS Without the Release Cycle
Softletter's recent SaaS survey revealed that one third of SaaS firms have abandoned the traditional 12 to 18 month release cycle, raising the question of how you generate buzz and excitement for your product. Budgets have tightened but the need to create brand awareness and reach your target audience has never been more critical. The need for speed is required across all areas of the SaaS firm from engineering to marketing to sales and service.
During this presentation we will present the fundamental building blocks that every company needs in place to reach 100% if its' target audience and scale demand generation program and sales. We will then review 5 proven demand generation programs for SaaS companies, including inbound, outbound and organic, i.e., social media programs. These programs are tied to a metric dashboard to determine effective ROI.
Robert Jurkowski, OnDemand Advisory Services
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| 2:00 - 2:45PM |
SaaS Revenue Recognition Accounting Update
Proposed changes to accounting rules could significantly impact how SaaS companies price and sell service offerings by this summer. Learn about this proposed change and other SaaS specific revenue issues to help optimize your selling practices, stay ahead of the competition and stay out of trouble.
Jay Howell, BDO Seidman, LLP
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SaaS SALES AND MARKETING TRACK:
SaaS ROI Metrics Benchmarks and Methodologies
If you're going to sell SaaS in a recession you need to provide powerful ROI numbers and potential cost savings arguments as part of the sales cycle. This session prepares you to do just that.
Brian Zanghi, Kadient |
| 2:45 - 3:05PM |
Break
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| 3:05 - 3:50PM |
SaaS Integration: Addressing a Top Three Priority for SaaS Adoption
Data integration has always been a SaaS bete noire. The natural tendency is for SaaS to build data silos and this unfortunate fact has been one of the biggest obstacles to SaaS adoption. During this session, Rick Nucci of Boomi will provide:
- Valuable analyses as to the trends and best practices around SaaS integration as you bring your SaaS offering to market.
- Insight into why savvy ISVs build their APIs as channels to their marketplace-and not just a connection point for other developers.
- Practical strategies for a well designed API that lays the foundation for successful integration and the overall adoption and retention of your application.
Rick Nucci, CTO and Co-Founder, Boomi
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SaaS SALES and MARKETING TRACK:
Search and Social Marketing for SaaS: Smarter Spends in a Downturn
SEO. Social marketing. PPC. This session reveals the most effective tactics and approaches for SaaS companies who need to maximize their marketing in a minimal economy.
Rajiv Parikh, Position2
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| 3:50 - 4:30PM |
More Numbers and Closing Remarks: Further Results from Softletter's 2009 SaaS and Software Marketing Surveys
Merrill R. (Rick) Chapman, Softletter
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| 4:30 - 4:40PM |
Closing Remarks
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GOLD SPONSORS
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SILVER SPONSORS
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Need to learn more?
Interested in speaking? E-mail Softletter editor Rick Chapman
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