Application Strategy and Design for a Profitable SaaS

I've been working with more and more companies that are looking to deliver Software-as-a-Service (SaaS) versions of business solutions that were traditionally delivered as installed products or client-server deployments. "Saas-ification" however, is more involved and complex than it first appears.

Many articles have been written on the technological challenges of deploying a SaaS model as compared to traditional on-premise software (e.g. multitenancy, control, integration, availability and security). There has been significantly less analysis of the application strategy and design challenges that distinguish a successful SaaS-enabled application from traditional enterprise application.

But as companies transition to this increasingly popular business model they must do more than simply find a technological solution that repackages a traditional application over the Web. To be successful, SaaS applications must do at an application strategy and design level, what traditional on-premise applications do not:

• They need to provide an application user experience that is seductive, targeted and engenders loyalty.
• They must integrate a constellation of self-service tools and user experiences that enable customers to do things they are not normally exposed to, such as purchasing, customization, provisioning, and monitoring.

Having worked with scores of start-ups and legacy providers moving to SaaS, Catalyst Resources has evaluated the commonalities among the companies that have thrived and put together a comparative tool for our own clients of the application strategy and user experience issues that distinguish traditional software from successful SaaS deployments. As you explore launching your own SaaS service or are considering a transition to a SaaS offering, you can use this comparison to evaluate your strategy. Getting these factors right need to be an integral part of any SaaS IT implementation plan.

Functionality / Feature Set    

Traditional Software