A couple of posts ago, I spoke to the busting of the SaaS Silo with Web Services and the impact that was having on the SaaS industry.  The last post spoke specifically about using Web Services to add functionality to your app.  While adding cool new functionality to the app is big for the product guys and the marketing guys, the interest from the sales side seems to be driven by a whole separate set of concerns, chief among them… Integration.

According to recent research by both Saugatuck and Forrester, integration has surpassed security as the main concern for enterprise implementations of SaaS.  This is actually a great sign for SaaS vendors.  It means that SaaS is extending beyond the departmental sale and making true progress into the enterprise.  It also means that in order to get past this increasingly common sales objection, companies need to figure out how to use Web Services to integrate their SaaS application.

While enterprise adoption of SaaS has been quite good, it’s usually done at the departmental level initially.  That means good SaaS apps appeal to business users with specific problems.  As the adoption of those applications spreads from the department to the whole enterprise, IT gets involved.  And it’s logical to think IT wouldn’t want a separate employee record in its Taleo system than it has in its payroll system.  Solutions such as Boomi’s Atoms help IT shops avoid that problem.

Besides integrating with legacy applications, Web Services are beginning to help companies integrate multiple SaaS applications.  Up to now the most ubiquitous integration problem, user management, has either been ignored by companies using SaaS or has had to be cobbled together by in house teams.  I can tell you, we use everything from SalesForce to NetSuite to RightNow and we’ve had to put some pretty tricky things in to (imperfectly) manage users.  Now we are seeing ready built solutions from TriCipher and Symplified that are making this easier and easier for both the SaaS vendor and the enterprise.

Finally, the integration piece is allowing companies like Astadia to go beyond SalesForce customizations in to the world of really creating custom applications out of many different SaaS apps.   Astadia’s acquisition of Theikos indicates that pre-built custom applications are going to be a big part of their future.

So while integration may be listed as a concern on SaaS adoption in the enterprise, it’s really an opportunity.  An opportunity to expand your app by tying it in to other SaaS apps, to legacy apps, and to even see it as the basis for custom apps.  Next post, we’ll talk about using Web Services to not only to break down customer objections but to actually create new opportunities.

Posted: June 30th, 2008 under Cloud, SaaS - Software As A Service, Uncategorized, Web Services, Web applications.
Comments: none

Probably the simplest thing SaaS apps can do to improve their business is to use web services to improve the functionality of their application. By integrating third party applications in “Corporate Mash-Ups” SaaS companies can have the best of both worlds; a robust feature set and a complete focus on their core product.

Companies like SalesForce and WebEx have all shown the value of doing things like offering on-line ordering and billing, tracking site usage, and adding strong reporting and user management features. The problem with all of these additional features take programming time away from the core value of the apps, sales force automation and collaboration. That’s fine if you have 100’s of million in funding and 8 years of development. What’s the new SaaS app to do?

Fortunately, we have a new world of apps available to add that functionality. No longer is it just Google Maps and Hoover information. There is a ton of new apps you can integrate via api’s or web services. Examples include:

• TriCipher - For strong identity management and integration with corporate directories.
• Sabrix - For tax calculations.
• PivotLink - For graphs and pivot tables.
• OpSource Billing - If I don’t get one corporate plug in, Richard, Kim, and Christina get mad.
• Business Objects - For Crystal Reports and others.
• Ribbit - For integrating Cell Phones in to your app. If that doesn’t make sense, go to their site. It’s extremely cool.

This list could be ten times as long and it’s growing daily. Needless to say, a lot of the “extraneous” work of creating the app can now be integrated instead of programmed, allowing your precious coders to focus on the core value you are selling to your customers. This not only keeps the R&D costs down, it allows for more robust apps to hit the market sooner.

Up next, Silo Busting 3 - web services for enterprise integration.

Posted: May 30th, 2008 under SaaS - Software As A Service, Web Services, Web applications.
Comments: 1

It’s time to grow up….and learn to play nice with others.

SaaS adoption in the enterprise has definitely increased. But with that organizations are increasingly asking SaaS applications to start working with both other SaaS applications and the company’s legacy applications as well. According to recent studies by both Saugatuck and Forrester suggest that integration has surpassed security and compliance as Enterprise IT’s chief concern with implementing (or growing) SaaS applications.

This is an extremely encouraging sign. It shows the acceptance of SaaS as a legitimate enterprise software solution by the majority of Enterprise IT shops. Up to now, SaaS has been primarily a departmental sale. HR departments buy Taleo for human capital management, Marketing buys Marketo for marketing analysis, and call centers buy SupportSoft to manage their ticketing. As you know from past posts, selling immediately recognizable value at the departmental level is key to a strong success story in SaaS andwe can see how that has happened.

But now these apps are growing up and reaching across the organization (growing your app is another key SaaS sales strategy.) When that happens, IT is willing to accept the app’s growth, but needs it to do more now. Enterprise IT doesn’t want a separate employee record in Taleo from their payroll system. The want to be able to correlate all this marketing data back to their sales productivity, and they want to use the same master customer record for their ERP system as for their ticketing system. And they don’t want to have different log-ins for each employee, they want a single sign-on solution for all of their SaaS as well as on-premise apps (ala TriCipher.)

So SaaS applications have to stop being Silo’s that work just inside themselves. They need to start using web services to integrate with other SaaS apps and with legacy applications. By doing so, they’ll open up three great new areas for growth

1. Increased Functionality by working with other Apps
2. Enterprise Growth by integrating with existing Apps
3. The Opening of New Sales Channels

Their is so much to talk about in each of those three areas, they will get their own posts in the coming weeks.

In the meantime, think about adding web services, playing nice with others and growing up. It’s a great time to be an adult.

Posted: May 22nd, 2008 under SaaS - Software As A Service, Uncategorized, Web Services, Web applications.
Comments: 2