From the President & CEO of AppZero - The Inventor of the ESB

Greg O'Connor

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ISVs Caught in the Chasm: Between Heaven and Earth – SaaS and On-Premises

AppZero Use Case for Software Vendors: Sales Cycle

Software as a Service (SaaS) is the darling of today's real world, enterprise-impacting cloud computing use cases. Industry analysts and research firms are tripping over each other extolling mega-CAGR for SaaS, with the 451 Group going so far as attributing 75% of PaaS spending for use cases that are attached to SaaS deployments.

In its 2011 research report "Cloud Computing Takes Off," Morgan Stanley is bullish on the future of PaaS stating, "The low capex requirements, robust cloud enablement and rapidly improving developer toolsets are significantly lowering the barriers to entry for new application development [emphasis mine] - both in terms of cost and time to market.

Great.  So the future is bright for new application development heading to the cloud. What about ISVs who have existing applications? Driven to the margin-eroding SaaS model, ISVs frequently find that their largest customers are not willing to surrender the on-premises option.

The SaaS/on-premises tension sets up a complex series of challenges for the ISV including questions of business models, maintenance of multiple product versions, and updating of software to name a few issues. With apologies to last century's poet Robert Frost, smart money may rest on the ultimate victory of SaaS, but there are miles to go before on-premises sleeps.

There is - and will continue to be -- a lot of business in existing applications and the on-premises model.

In future blogs I'll explore ways ISVs can use AppZero to navigate this changing market. But, for now, I'm offering a white paper about the universal need to successfully sell your software.  Titled AppZero Use Case for Software Vendors: Sales Cycle , this paper introduces the ways AppZero can strip the labor required to configure and implement your PoCs and demos - whether on site or in the cloud. Resulting business gains include:

  • Slash configuration and installation time to zero, decreasing the cost of sales, improving PoC quality, maximizing SE resources, and increasing win rate with associated revenue
  • Easily deliver complex systems fully and accurately pre-configured
  • Improve customer experience and perception of quality and competence
  • Focus high-skilled technical service professionals on high-value services rather than on low-margin, repetitive, labor-intensive work that can be automated
  • Reduce time to value for customers and speed time to revenue

The intended audience for this paper is anyone responsible for generating software sales revenue, supporting a software sales cycle, or implementing software for a customer.  Independent software vendor (ISV) sales, professional services, and sales engineers will be particularly interested in how AppZero software can directly impact the sales cycle, while IT professionals will find advantages in the time saved throughout the product lifecycle.

I am always looking for a way to communicate better and cut to the heart of any discussion. So, if you have thoughts on this subject drop me a line at GregO {@} Appzero {dot} com or tweet me at @gregoryjoconnor

Moving enterprise apps to the cloud? Check out this 2-minute video.

More Stories By Greg O'Connor

Greg O'Connor is President & CEO of AppZero. Pioneering the Virtual Application Appliance approach to simplifying application-lifecycle management, he is responsible for translating Appzero's vision into strategic business objectives and financial results.

O'Connor has over 25 years of management and technical experience in the computer industry. He was founder and president of Sonic Software, acquired in 2005 by Progress Software (PRGS). There he grew the company from concept to over $40 million in revenue.

At Sonic, he evangelized and created the Enterprise Service Bus (ESB) product category, which is generally accepted today as the foundation for Service Oriented Architecture (SOA). Follow him on Twitter @gregoryjoconnor.