December 5, 2008

SaaS can mitigate the 5 challages you face in this economy

I believe SaaS is especially pertinent during this tough economic time because SaaS can overcome the five key challenges faced by most companies today. I also believe it is imp for SaaS companies to reach out and apprise their constituents now!

In my opinion the five challenges faced by all companies today are:

1. Shrinking top-line
2. Dwindling and unpredictable cash-flow
3. Expensive capital
4. Customer pressure to reduce cost, and
5. Customer desire for higher performance

Being a SaaS evangelist I applaud the enthusiasm of the folks at Zuora and others who push the SaaS concept. Read a recent post by Zuroa’s K.V Rao outlining benefits of SaaS model here. I agree with his views outlined in the post.

At QLogitek we have been pushing against the grain and promoting SaaS. As I before, I believe the current economic times makes SaaS ever more important and as SaaS companies it is our duty to enlighten our clients and prospective clients to this superior alternative to help overcome the above five challenges.

At QLogitek, we started a cost savings club to reach out to our key constituents interested in leveraging the SaaS model. I think that by outsourcing their supply chain IT solutions they can focus on their competency and top-line. The flexible and predictable pay-as-you-go model offers good control over that dwindling cash flow. Moreover, SaaS does not encumber you with the high cost of capital investment that typical on-premise software calls for.Thus SaaS facilitates firms' to deliver focus on their core-competency to deliver greater value at lower cost to customers.

All this increases a companies ability to deliver greater value to customers at lower cost.

I would like to hear about outreach initiatives by SaaS companies and evangelist to their constituents.

If you are interested in the state of the Canadian economy check out these three sites Bank of Canada, Statistics Canada, and The Conference Board of Canada.

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