Intelligent Tech Channels Issue 08 | Page 17

ENTERPRISE TECHNOLOG for vendors happening in a monthly subscription period, SaaS vendors are inclined to transfer channel commission at the same periodicity. With all these facts, about 50 per cent of SaaS revenue is generated via VARs and SIs. This trend is going to stay or even grow, mainly because of the opportunities for VARs, who are ready to learn and implement.” Challenges in SaaS adoption However, there are challenges to be overcome in the SaaS world, including the perception that data may not be safe because it’s stored by the software hosting company. “In terms of the consequences, the hesitation from businesses largely comes from the fear of losing control of the system in terms of breakdown on the part of the third-party service provider,” says Vijay Jaswal at Software AG. “This insecurity extends to data protection over business processes, including multiple access to the SaaS subscription model that could fall into the wrong hands. Guaranteed accessibility is also a concern, which means a SaaS provider has to possess a certain uptime reputation to gain customer trust. Another issue with data protection under SaaS is that the responsibility to fulfil regulations on privacy of information rests solely on the business, which means SaaS providers may not be legally held responsible when any breach of information is committed. In addition, subscribers may also get tied up to the SaaS provider as the service may not offer the option of data mobility, where it can easily be transferred to another SaaS system if required. At present, most problems businesses face is how to better integrate multiple SaaS solutions smoothly.” Ambarish Gupta at Knowlarity, observes: “Retention is one of the biggest disadvantages of SaaS. Unlike software of the past where the licences were lifetime, five years or for a year at least, SaaS products give granularity of monthly [payments] and some take it a step further and charge purely for what you use. This, being one of the biggest promises of SaaS, also makes it the most challenging from the perspective of retention. For highly competitive segments like CRM, ticketing systems and marketing automation, there are a lot more competitors offering seemingly similar products or services with easy to migrate options. Low entry costs, which help users onboard quickly to SaaS, coupled with low switching costs, can put a lot of pressure on retaining them. This is where SaaS products try and build product differentiation, customer centric UX and high-quality support and, above I am a strong believer of ‘think big, build small and scale fast’. Ambarish Gupta, Founder & CEO of Knowlarity. all, solve the customer’s problem. One key trend evolving is customer success teams within B2B SaaS companies, who believe in helping a customer’s business grow which will, in turn, result in the success of their product. This involves much more than help and guidance; they go to the extent of recommending and configuring compatible and complementing products, apart from their core offering. Some products offer value-added solution services either via in-house or via partners. In a way, this is actually creating more opportunities.” Opportunity knocks Vijay Jaswal, CTO – Middle East & Turkey at Software AG. Vijay Jaswal at Software AG says: “The complexity of SaaS applications should be seen by channel partners as a huge opportunity to provide a whole new service offering for providers as most of those who adopt additional SaaS applications often require re-engineering an entire system. This challenge can be overcome by the fact that most SaaS applications were designed to be easy and simple. Other revenue opportunities that can benefit the channel 17