Helping CRM Solution Providers respond to the adoption of SaaS & the cloud era
Blog: BPMOnline Blog
The cloud era is here! In just a few years our world has changed. Cloud and Everything-as-a-service economy has disrupted the traditional IT and business services industry. So what does this mean for a software business?
Nowadays, the line between software vendors and service providers has blurred, while end users have become more concentrated on how they interact with solutions and those capabilities that would allow them to do their job more effectively. The adoption of SaaS meets and increases buyer’s conviction that flexibility is at the core of the service provider proposition. For software solution providers with an established on-premises solutions, the adoption of SaaS may bring both, the technology and business challenges. While it could be challenging for the companies whose business model is not designed with the SaaS in mind we all know that where there are challenges, there are always new opportunities!
Leading analysts suggest that the worldwide software as a service (SaaS) market will grow at an astounding yearly growth rate of 20.2%. This means it will be growing from $18.2 billion in 2012 to $45.6 billion in 2017. With more than 50% of CRMs to get deployed as SaaS by the end of 2015, Gartner anticipates “that SaaS deployments of CRM will reach a maximum 80% to 85% by 2025”!
With that kind of growth expected, it is no wonder that many companies are rebranding anything that makes sense “as a service” to get a piece of the pie. As a result, Solution Providers are retooling to keep ahead and to be of value in the new service delivery marketplace.
Today, transformational not just new delivery model. Having lost a sufficient part of their income from customizing and implementing software, CRM resellers now have to focus their efforts advisory, optimization, and automation services and activities. However, with the subscription-based pricing the anticipated result might not be worth the efforts.
While Software vendors receive a license fee on a regular basis throughout the customer’s entire app usage lifecycle. CRM Solution Providers generally receive their margin percent from the vendor for a limited period of that same app usage. In most cases, this would be a commission for the initial first year purchase and then either a fraction payout or no payout at all for year two or beyond.
To find out how savvy CRM Solution Providers are adjusting their service delivery model and finding ways to build predictable revenue streams through SaaS transactions, download our new CRM Partner Guide “Helping CRM Solution Providers respond to the adoption of SaaS and the cloud era”.
The guide discusses why Solution Providers must change their business model and their service offering to better align with evolving customer buying requirements, as well as represents bpm’online’s updated Partner Program that empowers CRM Resellers, Solution Providers and Consultants to address the ever-evolving challenges in the CRM market and build sustainable businesses with up to 40% recurring revenue.