Why VARs must add SaaS options
Software-as-a-Service (SaaS) is nothing new, but a greater penetration of broadband access and mobile computing -- combined with economic pressures -- has raised demand. It's been around long enough for IT managers to not complain too much about giving up control, and now, with the software giants like Microsoft and Google throwing their hats into the ring, SaaS is about to become as common as hot air on election day.
The market has huge potential. According to market analytics research firm Compass Intelligence, growth rates will hit double digits annually, with SaaS being an especially attractive solution for small businesses looking to achieve cost savings while still having the same technological capabilities as a larger enterprise.
Switch or perish
Dave Kubick, Vice President Worldwide of Channels and Alliances at Iron Mountain Digital, a vendor of SaaS and storage-as-a-service data backup and archival solutions, observes that "the age of the traditional classic VAR is quickly coming to an end." It's no longer about selling "point products and services," says Kubick, but about who is in a position to offer comprehensive solutions that provide the greatest flexibility in terms of use, and how people pay for the service.
We won't be re-playing "Death of a Salesman" to the tune of SaaS any time soon, but traditional VARs that refuse to accept the SaaS model are in for a hard time. This is a game-changer, and will alter the very nature of what it means to be a reseller. The "sweet spot" for VARs will be the small and midsize business market, although if it is marketed right, there could even be growth potential in the Small Office/Home Office marketâ€â€especially with standard productivity applications from Google and Microsoft hitting the SaaS world.
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Why the doom and gloom?
This is an interesting post on the tidal wave known as SaaS and its impact on VARs. However, I think it is worthwhile to point out that VARs are actively turning to SaaS already because of the benefits it delivers to them (as well as their end clients).For example, with SaaS services like Paglo, IT and Operations consultants and resellers of all types tell us that they no longer need to roll out to the customer site(s) multiple times to do pre-engagement audits to determine the scope of a project. SaaS also offers them direct access to key systems (from anywhere) to manage their customer's environments or provide other critical services without an onsite visit.
This is not lost on VARs as SaaS already saves them real time and allows them to focus on delivering great service.
Brian, Paglo
www.paglo.com
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