6. SaaS: Reach
The final and perhaps all encompassing characteristic of SaaS is described in terms of reach or rather the size of the new global markets into which these products instantly play. This is an obvious draw but with significant side effects. The fact that you are ‘instantly’ global can work in two ways; either, you are an instant success in which you need to be able to scale instantly, deal with cultural and locale issues such as language and business processes etc. or you are not and your growth is slower and more drawn out. Marketing is and has always been a significance in terms of the web and so you need to play the search engine game and work on image, profile and create a brand. All of which are difficult without the other issues facing a SaaS delivery model. The pressures come from all sides, “you’re damned if you’re an instant success and you’re damned if you’re not”.
However, the truth is the tail is out there. It’s not about small numbers and large returns; it’s about large numbers and small returns. Focusing on the key features and delivering on these; listening to the feedback and nurturing through the establishment of a community of users seem to be recipes for sustainable growth. The future markets are consumer driven and reputation based, at least during the early phases of on demand software.
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