The Brave New World Of SaaS with Robert Bois

ChannelPro: What are the challenges for SMB channel partners?
Bois: By definition, SaaS eliminates from the equation a lot of the areas in which channel partners make money, such as installation and maintenance. That can be a big challenge. Another challenge is a big shift in the business model, where channel partners sell a piece of software. Most successful SaaS ISVs are selling direct or through telesales. It’s hard to see what value-add channel partners would bring to the table. Also, SaaS is typically based on a recurring model, where it takes longer to recoup revenues. For channel partners who switch to that model cold turkey, there could be an earnings gap. Some software vendors are looking for ways around these challenges, but channel partners who want to succeed in SaaS will have to change their business models from a technical to a services orientation.

ChannelPro: Who are the premier providers of SaaS?
Bois: Microsoft is getting into it cautiously, and has a huge existing reseller network. What may flesh out is that Microsoft may not actually do the hosting, so channel partners could have the opportunity to become hosting sources as part of a broader managed services provider model. In that scenario, they could provide service and support, and other elements that are usually included in SaaS.