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Ben Kepes is a technology evangelist, an investor, a commentator and a business adviser. His business interests include a diverse range of industries from manufacturing to property to technology. As a technology commentator he has a broad presence both in the traditional media and extensively online. Ben covers the convergence of technology, mobile, ubiquity and agility, all enabled by the Cloud. His areas of interest extend to enterprise software, software integration, financial/accounting software, platforms and infrastructure as well as articulating technology simply for everyday users.

More about Ben here.

2 responses to “Moving From On-Premises to SaaS, Thoughts on Revenue Corrosion”

  1. Sue St. Laurent

    We’ve seen more discussion lately about how switching to SaaS and a subscription-priced business model can be painful. Often, achieving positive cash flow while you develop a recurring revenue stream can take a frustratingly long time. In terms of deployments, a SaaS model has more unique challenges, including assuming total responsibility for software performance, availability, reliability, and security.

    At Synygy, the largest and most experienced provider of Sales Performance Management (SPM) solutions, we’ve offered subscription pricing on our software since 1992, and in 1998 we began building and operating our own data centers. That led to Synygy being the first to launch an on-demand sales compensation management (SCM) solution using the same software for all clients in 2000. It also led to a large base of subscription revenue that has resulted in sustained growth and profitability over the years.
    It turns out that Synygy was providing software- as-a-service long before the phrase was coined.

    The good news is tht companies changing to a SaaS business model today have a significant advantage. Unlike Synygy’s groundbreaking marketing in the 1990s, today’s efforts are taking place in a market that embraces, even demands, the model.

    Is making the switch easy for a software vendor? No, but SaaS is a successful strategy as Synygy has so ably demonstrated over the past 19 years in business.