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3 signs you're ready to graduate from basic SaaS

on ‎08-26-2014 01:09 PM

In my last post (Savile Row SaaS: Here’s what you need to know about new ways of consuming software) I wrote about some of the new developments we’re seeing in the software as a service (SaaS) space. The idea is that as SaaS proliferates, we’re finding our customers have many different needs that go beyond basic, out-of-the-box SaaS.


What happens in many organisations as they grow and mature is that they reach a point where they want the functionality of a given product but they are looking for additional service. They are looking for certain benefits of SaaS, such as pay-per-use and subscription pricing, but may also have requirements best provided by an on-premise HP Software product.


Simply put, many customers are looking to get the flexibility and cost predictability of SaaS but with a more complex software solution than a pure SaaS product.


Graduating from basic SaaS to pay-per-use and outcome-based services

Here are 3 signs that a pay-per-use or outcome-based service might be right for you.


1. Scale: Large organisations typically have more complex environments than a departmental or smaller organization. When you get into big numbers—say 10,000-plus users—scale drives more complex requirements out of the gate. Scale drives the need for cost predictability, which makes the pay-per-use model very attractive especially at larger volumes where costs like ongoing management and maintenance can be unpredictable.


2. Maturity: For customers at lower maturity a SaaS product might be a sufficient answer. It provides an out-of-the-box, base level of functionality. But if you’re a more mature customer, you have needs that are more advanced than an out-of-the-box option. A more mature customer also has a broader set of KPIs to manage against. For instance, maybe you’re trying to manage incidents or tickets for SLAs across multiple suppliers. Or your service desk might be measured on KPIs for incident resolution and time to respond. An organisation at a lower maturity may not even be at this point. (I’ll write more about maturity in my next post.)


3. Flexibility and agility requirements: Many customers are looking for some kind of flex up-flex down capacity, particularly around testing services. So you might have spikes in testing because of a new app release, and you need extra scale and resources. We can provide this on top of our products—for example, giving you X number of applications that are quality performance tested at a pay-per-use cost. Or we can customise a price per number of apps or a price per number of tests performed. So you’re determining the right testing metric, as well as the SLAs to meet. We can provide performance testing as a service on top of the HP Performance Center SaaS product or the on-premise product.


In HP Software Professional Services, we’ve been working to develop offerings where the customer is charged a pay-per-use monthly price that includes the software product, plus customization, and may include migration, adoption, and onboarding—for SaaS or on-premise implementations.


As I wrote in my previous post, these new models can help you drive significant cost savings. (Read more about how you can deliver business value in our new ebook.) But you need a few prerequisites in place to make the most of them. I’ll write about these success factors in my next post.


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