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Saturday, January 24, 2009

Encouraging SaaS takeup


The economic crisis that we are facing today may well benefit the SaaS market. Companies are now more conscious and careful about cashflow and will be less willing to invest high capital expenditure on software licences. Besides, one striking benefit of SaaS is the scalability and low risk of technology obsolescence since the risk is shifted to the provider. But, to all the SaaS providers out there, you gotta really understand that SMBs are usually less tech-savvy and have little IT resources at their disposal. In fact, many of the smaller SMBs are still relying on paper and pencil or basic excel spreadsheet to do their invoices and timesheet. To increase the adoption rate, SaaS providers should offer free training for first time users regardless how idiot-proof you think your application is and always offer free trial with no obligation. In addition, customer testimonials are always good to have. You can also see how to influence the government policies or work with business associations to provide some incentives to encourage the SMBs to adopt SaaS.

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