To successfully transition from an on-premise license or purchase model to a recurring revenue SaaS, IaaS or “X"aaS business model, you need more than just a new product architecture. The risk and cost shifts in such a transition require a new company mindset and significant changes to your:
- Business Strategy
- Financial Operations
- Product Approach to Market
- Product Architecture
- Engineering Processes
- Technical Operations
SaaS Migrations Require More than Product Changes
The transition you envision can stress the very fabric of your company, especially if you view it as just a change to the way you deliver your product. In fact, starting by focusing on your product will leave you exposed and potentially doom you to failure.
Key questions to answer before starting any SaaS, IaaS or “X"aaS transition include:
- What do you want your business gross margins to be?
- What do you want your business operating margins to be?
- To what availability must you design your new solution, and how does that affect your margins?
- What must your user experienced response times be and how will that affect margins and locations?
- How much should you leverage IaaS or PaaS solutions, and how will these affect your cost and operating structure?
- What are the geographic regulatory concerns for a product that you now provide as a service and how does this affect your architecture?
- What new technology operations processes are necessary to be successful in a services world?
- How must you change your engineering processes to conform to faster time to market delivery models?
- What new architectural principles and patterns must be incorporated to ensure fast time to market and high levels of availability?
- How must you change organizationally to deliver products in a more rapid fashion?
- How must your product life cycle change to be successful in a SaaS, IaaS or “X"aaS world?
- What must happen with professional services, customization and configuration to be successful?
We Can Help!
We’ve helped dozens of companies, from very successful Fortune 500 companies to small but established “mom and pop” shops, make this transition. AKF Partners can help you with both your transition strategy and transition execution.