Instigator Blog - Latest Comments in What Do SaaS Companies Have to Prepare for 2009?

Re: What Do SaaS Companies Have to Prepare for 2009?

Ben Yoskovitz — Tue, 10 Feb 2009 20:38:29 -0000

David - SaaS is commonly recognized as a way of saving money, as well as spreading the costs of software / IT over time more effectively. Generally I think SaaS can save companies money. I also think they can buy simpler, "smaller" products via a SaaS model and worry less about ultra-long sales cycles and bloat-ware.

Re: What Do SaaS Companies Have to Prepare for 2009?

David Rowley — Tue, 10 Feb 2009 18:34:05 -0000

I know of some companies who are looking at SaaS as a way to cut internal costs by reducing internal system administration and focus on their core business compentencies. In the case of NetSuite, the ERP offering is very appealing ot companies using an enterprise ERP system which may be too big and complex for them. Moving to NetSuite still gives them an integrated system more appropriate for their budget and company needs.

Re: What Do SaaS Companies Have to Prepare for 2009?

Ben Yoskovitz — Mon, 12 Jan 2009 22:11:23 -0000

@Mike: I think the growth of SaaS is inevitable, although it won't be as robust in 2009 with the recession. But with powerhouses like Amazon behind cloud computing, you can't really get away from the overall SaaS model at this point in time.

When I started in SaaS - around 1998/1999 - companies were afraid of a lot of things - security, stability, paying monthly - but most of those fears/concerns are gone.

Re: What Do SaaS Companies Have to Prepare for 2009?

Mike Johnston — Thu, 08 Jan 2009 18:54:11 -0000

I would tend to agree with Ken. Saas is something I see growing in 2009 but perhaps we'll see something different this year.

Re: What Do SaaS Companies Have to Prepare for 2009?

Ben Yoskovitz — Tue, 23 Dec 2008 15:09:31 -0000

@Ken: Thanks for the comment. I think it's time to focus on cash flow and profitability, although if you're raising $$ then valuation is key. And the reality is that you'll suffer on valuation when raising money, there's no two ways about.

What I've heard is that flat is the new up, and down is the new flat. So if you get a flat valuation from your previous round that's considered a huge win. If you get funded at a lower valuation that's still considered a win.

Re: What Do SaaS Companies Have to Prepare for 2009?

Ken Krogue — Mon, 22 Dec 2008 17:17:51 -0000

We just met with an analyst from Gartner who pointed out that Saas is one of about 6 key trends that are stronger than ever, even with the economy. We have had 3 record months in a row as people are starting to sell remotely more than ever. We are finding an immediate shift from worrying about valuations to cash flow and profitability, both strengths with Saas.

Re: What Do SaaS Companies Have to Prepare for 2009?

Ferienwohnung Leutasch — Tue, 09 Dec 2008 00:46:36 -0000

I'm excited in the year of 2009 wondering what changes will happen..

Re: What Do SaaS Companies Have to Prepare for 2009?

Rick — Thu, 04 Dec 2008 06:45:55 -0000

I'm happy I'm not in the software business, because you are correct, times are going to become tough for those firms. Inevitably many of them will die, but that will just make it easier for the others to survive.

Re: What Do SaaS Companies Have to Prepare for 2009?

Jeremy Killian — Mon, 01 Dec 2008 10:02:15 -0000

I know the economy is struggling, but am I the only one who sees this as a tremendous opportunity? While I am all for wise planning in tricky times, I see these times of economic uncertainty as an opportunity to promote my business in an aggressive way so that when the economy rebounds, my name will be on everyone's lips.

Re: What Do SaaS Companies Have to Prepare for 2009?

chuckypita — Fri, 28 Nov 2008 08:48:17 -0000

Companies have so much to look into in today's turning economy.

I did agree with your last statement though- there's always room for marketing. The company that is able to pounce on "fear" and turn it into an alliance will prove successful many times over.

In this type of economy, people are always looking for leadership.

Re: What Do SaaS Companies Have to Prepare for 2009?

Ben Yoskovitz — Thu, 27 Nov 2008 12:36:23 -0000

Thanks for the comments. I survived the last tech bubble burst as well (although this isn't exactly a tech bubble burst like 2001 or so) by also focusing on many of the things described above. It was a challenge, but we survived.

Re: What Do SaaS Companies Have to Prepare for 2009?

David — Thu, 27 Nov 2008 05:53:50 -0000

All very true i am based i the UK and really think next year is going to be truly dreadful in the UK. Don't think a day goes by anymore without news of companies cutting back.

Re: What Do SaaS Companies Have to Prepare for 2009?

Dan D. Gutierre — Thu, 27 Nov 2008 01:17:24 -0000

By Dan D. Gutierrez
CEO of HostedDatabase.com

Excellent analysis of an econmic downturn and its effects on our industry. We launched the web's first Database-as-a-Service in 1999, another well known downturn known as the bubble-burst. We managed to survive using many of the tips you highlight. It wasn't easy.

Re: What Do SaaS Companies Have to Prepare for 2009?

Roger Mayer — Wed, 26 Nov 2008 09:46:34 -0000

I agree fully, the economy is in such bad shape throughout the world that large business will be looking on how to stretch the dollar further this is why Half Cent Printer Service is here to support you, everyone needs to save since we don't know what tomorrow may bring, and if you’re on a tight budget already the best is yet to come.