Appregatta is a strong evangelist of cloud-computing and software-as-a-service (SaaS) developments, and we believe that the on-demand software model will ultimately revolutionize the way that business and IT leaders invest in and benefit from technology. However, we recognize that as the enterprise software landscape continues its paradigm shift from on-premise to on-demand, the business models of software vendors need to change to reflect the new economics of the industry.

The changing landscape of enterprise software

Experience and extensive research into hundreds of SaaS companies have demonstrated that the economics of SaaS cannot support the traditional software business model. Lower price points and margins, decreased barriers to entry, faster speed to market, and higher quality and quantity of competitors mean that independent software vendors (ISVs) must scale their operations and delivery capabilities to unprecedented levels in order to succeed. ISVs face significant challenges in achieving and maintaining the scale necessary for enterprise customers to consider them a viable solution.

Evolving business models

Before SaaS can become a cornerstone IT strategy for enterprises, ISV business models must evolve to meet the new demands of the software industry. Companies need to focus on growing revenue per employee while dramatically scaling their sales, delivery, and support capabilities. We believe all SaaS vendors can greatly benefit from a network of consultative sales professionals, consulting partners dedicated to long-term customer satisfaction, and numerous technology alliances, all focused on helping enterprises solve complex business problems.