Sunday, August 9, 2009

SaaS application distribution mechanism

How would SaaS applications be marketed - individually or through an aggregator, channel partners, distributors, etc?

Many ISVs are trying to showcase their SaaS products individually. They typically have a product and an existing customer base and are now trying to expand market particularly to the long tail through SaaS. This market is attractive as it can generate volume business. They can enhance their value proposition by integrating with related products and offering a bigger solution to customers. For example: an ISV may provide email service, another may have a CRM solution. They can talk to each other and provide an integrated solution, which many customers are asking for.

Aggregating SaaS solutions is going to be a big opportunity. Package vendors who have large footprint across enterprise segments are potential aggregators. So are companies providing cloud services such as infrastructure, provisioning, metering and billing. To build global reach, as package vendors now seek channel partners, SaaS providers would seek aggregators in future.

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