In a new blog post on ZDNet.com Brian Sommer makes some interesting assertions about the changing software partner ecosystem, and he’s right. SaaS is changing the way companies view software and as a result is changing the way it is sold. Rather than spending revenue on getting software working, companies are seeing that there is value in SaaS where it is cheaper, can be up and running more quickly, and leaves them to spend on hiring people, new premises etc. But what does this mean for traditional resellers?
Well, it means that they need to reinvent themselves if they want to remain relevant. Many SaaS vendors are new to the software delivery space and will rely on partners to help take their offering to market globally and to provide consultation on sales models, costing etc. Resellers need to drastically rethink their business models if they haven’t already to make themselves global and to reinvent themselves as SaaS experts.
The opportunities are there and with many adding further value by developing their own applications on platforms like Force.com, the competition will be steep. Brian cites one example of a partner re-tooling its applications to become SaaS-based and then reporting a 300% increase in profits. Traditional consulting and partner models will be around for a long time yet as on-premises software will remain prevalent in businesses of any size, but partners/resellers will have to work hard to try to sell the value they are adding and to find opportunities. SaaS, on the other hand, provides a whole new world of opportunity.